ECB may release more money on the market

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Data on Eurozone inflation is due to be published today, and it is expected to remain below the ECB's target.

However, if the indicators actually come out weak, the ECB may be provoked into taking a position similar to that of the US Fed, that is, releasing more money into the market.

"The recent position of the Fed is seen as an important action that puts pressure on the ECB to take action so that other banks could also succeed in withstanding higher inflation," said Mark Hefele, chief investment officer at UBS Global Wealth Management.

Investors are currently adjusting to the revisions that Fed chairman Jerome Powell mentioned the previous week, which are a slight increase in inflation and a long period of maintaining interest rates.

But, "even if US central bankers are happy with the interpretation of their numbers, this is not necessarily a good news for the dollar," analysts at Commerzbank said.

"If inflation actually decreases, the purchasing power of the dollar may not be preserved in the long term," they commented. "This is why dollar is now trading below 92.50, and the EUR/USD pair is trading above 1.19."

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Analysis and forecast for EUR/USD on September 1, 2020

The summer is over and the market closed August trades yesterday. As a rule, after the next month closes, you need to look at the corresponding timeframe to see and understand what changes have occurred. Let's not break the tradition, and let's start today's review of the main currency pair of the Forex market with the analysis of the monthly timeframe.

Monthly

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As you can see, after a strong July growth, the pair continued its upward trend. Despite the fact that the growth was not so intense in August, the pair rose about the middle of the Ichimoku indicator cloud, updating the previous highs of 1.1908. It is also worth paying attention to the fact that the growth of EUR/USD has been going on for four months in a row.

On the first day of the new month, the euro/dollar does not stop rising and is trading near 1.1985, that is, above the August highs of 1.1965. If it goes on like this, the pair will inevitably meet the 200 exponential moving average that passes on 1.2011. The closing of September trading above 200 exponential and the important psychological level of 1.2000 will only strengthen the position of bulls on the instrument and aim the quote to the upper border of the Ichimoku cloud, which runs at 1.2165. If something goes wrong and market sentiment changes in favor of the US dollar, we can expect a decline to the strong technical zone of 1.1750-1.1700. With this development, the continuation of the upward trend will be in great doubt. However, there are no prerequisites for this yet, and it is highly likely that the euro/dollar pair will continue to rise. The only thing I would like to pay attention to is the 200 EMA and the 1.2000 mark. Most likely, the bears will try to fight back against the heated bulls and restrain the growth of the quote.

Daily

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In yesterday's trading, the US dollar continued to weaken, and trading on EUR/USD ended above the once falsely broken resistance level of 1.1915. The new policy of the Federal Reserve System (Fed) regarding inflation has put even more pressure on the already weak US currency. Let me remind you that now, even if inflation rises, the Fed will keep interest rates at current low levels for a long period of time. We have not yet heard such statements from other leading world central banks, which means that if inflation increases, they will probably tighten monetary policy, which puts the dollar in a losing position against other major currencies in advance.

If we return to the technical picture on the daily chart, the bearish divergence of the MACD indicator is still completely ignored by market participants, however, it is not yet broken. If today's trading closes above 1.1965, this resistance level is likely to be considered broken, which means that we can expect a subsequent rise in the price.

H4

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If we look at the four-hour timeframe, we see that the pair has already conducted the first test of the psychological level of 1.2000, and at the moment of completion of the review, it bounces back from this mark, which is quite expected. Once again, I would like to express my personal opinion that the opposing sides will probably have to work around 1.2000. This is a very important mark, and the monthly 200 exponential will put up resistance.

Conclusion and trading recommendations for EUR/USD:

Judging by the timeframes discussed today, the pair is likely to continue its upward trend. However, I would not recommend buying at the peak of the market, and even near the most important level of 1.2000. Now on H4, there is a pullback to the broken resistance of 1.1965. You can try to buy near this mark. Lower prices for purchases can be found in the price zone of 1.1940-1.1920. I consider the main trading idea for the euro/dollar to be purchases that are better to open after corrective pullbacks.

I would like to remind you that today's economic calendar is full of reports from Europe and the United States. Despite the fact that the most important macroeconomic events are waiting for us ahead, and today's data is worth paying attention to.

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Fractal analysis for main currency pairs on September 1

Outlook on September 1:

Analytical overview of currency pairs on the H1 scale:

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The key levels for the euro/dollar pair on the H1 chart are 1.2080, 1.2045, 1.2003, 1.1948, 1.1921 and 1.1884. We are following the development of the upward cycle from August 21. Here, the upward movement is expected to continue after the breakdown of 1.2003. In this case, the target is 1.2045. On the other hand, we consider the level of 1.2080 as a potential value for the top; Upon reaching which, we expect consolidation and a downward pullback.

A short-term downward movement is possible in the range of 1.1948 - 1.1921, breaking through the last value will lead to a deep correction. The target here is 1.1884, which is the key support level for the upward structure of August 21.

The main trend is the upward cycle of August 21

Trading recommendations:

Buy: 1.2003 Take profit: 1.2045

Buy: 1.2047 Take profit: 1.2078

Sell: 1.1948 Take profit: 1.1924

Sell: 1.1918 Take profit: 1.1886

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The key levels for the pound/dollar pair are 1.3496, 1.3455, 1.3424, 1.3387, 1.3356 and 1.3292. Here, we are following the development of the upward cycle from August 24. A short-term upward movement is expected in the range of 1.3424 - 1.3455. Now, if the last value breaks down, it will lead to a movement to a potential target - 1.3496. Upon reaching this level, we expect consolidation and a downward pullback.

A short-term downward movement is possible in the range of 1.3387 - 1.3356. Now, the breakdown of the last value will lead to a deep correction. The target is 1.3292, which is the key support level for the top.

The main trend is the upward cycle of August 24

Trading recommendations:

Buy: 1.3424 Take profit: 1.3455

Buy: 1.3457 Take profit: 1.3496

Sell: 1.3385 Take profit: 1.3356

Sell: 1.3354 Take profit: 1.3294

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The key levels for the dollar/franc pair are 0.9099, 0.9068, 0.9038, 0.9020, 0.8982, 0.8957 and 0.8917. We are following the downtrend cycle from August 20. Here, a short-term downward movement is expected in the range of 0.8982 - 0.8957. If the last value breaks down, a strong movement to the potential target - 0.8917 should follow. Upon reaching this level, we expect an upward pullback.

A short-term upward movement is possible in the range of 0.9020 - 0.9038 and the breakdown of the last value will lead to a deep correction. Meanwhile, the potential target is 0.9068. We consider the level of 0.9099 to be a potential value for the top, from which we can expect the initial conditions for the upward cycle to form.

The main trend is the downward cycle from August 20.

Trading recommendations:

Buy : 0.9020 Take profit: 0.9037

Buy : 0.9040 Take profit: 0.9068

Sell: 0.8980 Take profit: 0.8958

Sell: 0.8955 Take profit: 0.8920

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The key levels for the dollar/yen pair are 106.42, 106.08, 105.87, 105.52, 105.20, 104.96 and 104.39. Here, we are following the formation of the downward potential from August 28. We expect the downward movement to continue after the breakdown of 105.52. In this case, the target is 105.20. Meanwhile, price consolidation is in the range of 105.20 - 104.96. For the potential value for the bottom, we consider the level 104.39. A strong upward movement is expected after the breakdown of the level of 104.94.

A short-term upward movement is possible in the range of 105.87 - 106.08 and breaking through the last value will lead to a deep correction. Here, the target is 106.42, which is the key support for the downward structure from August 28.

The main trend is the formation of the downward potential from August 28

Trading recommendations:

Buy: 105.87 Take profit: 106.08

Buy : 106.10 Take profit: 106.40

Sell: 105.52 Take profit: 105.20

Sell: 104.95 Take profit: 104.40

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The key levels for the USD/CAD pair are 1.3096, 1.3054, 1.3029, 1.2994, 1.2965, 1.2936 and 1.2902. The development of the downward cycle from August 24 is being followed here. A short-term downward movement is expected in the range 1.2994 - 1.2965, breaking through the last value will lead to a movement to the level of 1.2936. On the other hand, we expect consolidation and a possible upward pullback near this level. For the potential value for the bottom, we consider the level of 1.2902, from which there is a reversal into correction.

A short-term upward movement is possible in the range of 1.3029 - 1.3054. If the last value breaks down, a deep correction may occur. Here, the target is 1.3096, which is the key support level for the downward cycle.

The main trend is the local descending structure of August 24

Trading recommendations:

Buy: 1.3029 Take profit: 1.3052

Buy : 1.3056 Take profit: 1.3096

Sell: 1.2992 Take profit: 1.2965

Sell: 1.2963 Take profit: 1.2938

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The key levels for the AUD/USD pair are 0.7434, 0.7416, 0.7384, 0.7362, 0.7328 and 0.7291. Here, we are following the upward cycle from August 21. At the moment, the price is near the limit values (0.7416 - 0.7434), from which a reversal into correction is expected. Meanwhile, a short-term downward movement is possible in the range of 0.7384 - 0.7362, a breakdown of the last value will lead to a deeper movement. The target here is 0.7328, which is the key support level for the top. The price passing through this will cancel the formation of initial conditions for a downward cycle. The potential target is 0.7291.

The main trend is the upward cycle of August 21

Trading recommendations:

Buy: Take profit:

Buy: Take profit:

Sell : 0.7418 Take profit : 0.7365

Sell: 0.7360 Take profit: 0.7330

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The key levels for the euro/yen pair are 128.20, 127.61, 127.20, 126.95, 126.35, 126.07, 125.62 and 124.94. We are following the medium-term upward structure from August 21st here. Now, the upward movement is expected to continue after the price passes the noise range 126.95 - 127.20. In this case, the target is 127.61. There is consolidation near this level. On the other hand, we consider the level 128.20 as a potential value for the top, from which we expect a downward pullback.

A short-term downward movement is expected in the range of 126.35 - 126.07. In case of breakdown of the last value, a deeper movement will occur. Here, the target is 125.62, which is the key support level for the top and its breakdown will be conducive to the development of a downward trend. In this case, the potential target is 124.94.

The main trend is the upward structure of August 21

Trading recommendations:

Buy: 127.20 Take profit: 127.60

Buy: 127.65 Take profit: 128.20

Sell: 126.35 Take profit: 126.08

Sell: 126.05 Take profit: 125.64

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The key levels for the pound/yen pair are 143.48, 142.81, 142.41, 141.86, 141.31, 141.04 and 140.65. We are following the development of the upward structure from August 24. The upward movement will continue after breaking through 141.86. In this case, the target is 142.41. At the same time, there is a short-term upward movement and consolidation in the range of 142.41 - 142.81. We consider the level of 143.48 to be a potential value for the top. Upon reaching which, we expect a downward pullback.

A short-term downward movement is possible in the range of 141.31 - 141.04 and breaking through the last value will lead to a deep correction. The target here is 140.65, which is the key support level for the top.

The main trend is the upward structure from August 24

Trading recommendations:

Buy: 141.88 Take profit: 142.40

Buy: 142.42 Take profit: 142.80

Sell: 141.30 Take profit: 141.05

Sell: 141.02 Take profit: 140.65

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Brief trading recommendations for EUR/USD and GBP/USD on 09/01/20

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The EUR/USD currency pair managed to change the movement structure from a side channel from lines no. 4, 5 and 6 to a rising channel from trend lines no. 1, 2 and 3 for the first time in a long time. The signal for the direction change was the breakdown of the local high (1.1965) on August 18.

Based on the obtained data on finding the quote relative to price channels, we can consider several scenarios for market development:

First, the price movement in a new rising channel.

The upward course of the price should not be overlooked in the market, but in order for the movement to be stable, the quote must consolidate above the 1.2000 level, which is considered an important price level in the market. If this value breaks down, buyers will gain confidence and will keep the upward trend in the direction of 1.2080-1.2150.

Second, the Eurocurrency is overbought.

In this scenario, we consider the factor of long-term strengthening in the value of the European currency, which can put pressure on buyers, where sell positions may arise together with the price level of 1.2000. In particular, the price can consolidate above 1.2000 and rebound from the level towards the coordinates 1.1940–1.1900.

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On the other hand, the GBP/USD currency pair managed to overcome the local highs on August 19 and 21, which led to an immediate increase.

A consistent upward price movement indicates a change in market mood, from a sideways channel from lines No. 4, 5 and 6 to an upward trend from trend lines No. 1, 2 and 3, which may affect the mid-term outlook of the market.

Based on the obtained data on finding the quote relative to price channels, we can consider several scenarios for market development:

First, a price movement in the structure of the new channel.

The upward movement is already something common, since the quote literally updates the highs of 2020 on a daily basis. If the current mood is maintained, we can continue the upward movement towards line no. 2 (1.2450 area).

Second, a technical correction.

In this scenario, we consider a corrective move due to a long price movement in the same direction. The resistance level can theoretically be the average level of the new channel, line no. 2 (1.2450 area).

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Indicator analysis. Daily review on GBP / USD for September 1, 2020

Trend analysis (Fig. 1).

The market may continue to move upward from the level of 1.3370 (closing of yesterday's daily candle) with the target at the upper fractal 1.3518 (blue dotted line). If this level is reached, the upward trend may continue with the next target of 1.3719 - a 261.8% target level (red dotted line).

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Figure: 1 (daily chart).

Comprehensive analysis:

- Indicator analysis - up;

- Fibonacci levels - up;

- Volumes - up;

- Candlestick analysis - down;

- Trend analysis - up;

- Bollinger lines - up;

- Weekly chart - up.

General conclusion:

Today, the price may continue to move upward from the level of 1.3370 (closing of yesterday's daily candle) with the target at the upper fractal 1.3518 (blue dotted line). If this level is reached, the upward trend may continue with the next target of 1.3719 - a 261.8% target level (red dotted line).

Another possible scenario is an upward movement to the upper fractal 1.3517 (blue dotted line). Upon testing this level, the price may move downward with the target at the historical support level of 1.3310 (blue dotted line).

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Indicator analysis. Daily review on EUR / USD for September 1, 2020

Trend analysis (Fig. 1).

The market may continue to move upward from the level of 1.1939 (closing of yesterday's daily candle) with the target at 1.2104 - a 76.4% pullback level (blue dotted line). From here, the price may continue to move upward with the next target at 1.2275 - an 85.4% pullback level (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 level of 1.1939 (closing of yesterday's daily candle) with the target at 1.2104 - a 76.4% pullback level (blue dashed line).

Another possible scenario is upon reaching 1.2102 - a 76.4% pullback level (blue dashed line), the price may move down with the target of 1.1966 - a 14.6% pullback level (red dashed line).

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US dollar's decline will only intensify in September, while renewed growth in the EURUSD and GBPUSD pairs is expected after

The US dollar ended its fourth month with a decline. The market has clearly undergone global changes that will simply not allow it to turn around and start growing, not only in the short term, but also in the long term.

Has the major change in the Fed's rhetoric caused the dollar to weaken?

The Fed's decision last week to stimulate the labor market by targeting average inflation amid previously unprecedented measures to support the economy is long-term. They guaranteed investors and the real sector of the economy, extremely low interest rates for a significant period of time. This is the main reason for the weakening of the US currency. Moreover, it is likely to remain in this position, even if the national central banks, whose currencies are traded against it, take measures to reduce the rates of their currencies. This is because the dollar, being the world's reserve currency and having an all-encompassing influence in the world's settlement systems, is in high demand. So far, none of the currencies can replace it - neither the euro, nor, for example, the yuan.

Of course, its decline is unlikely to be very quick. The periods of decline will be replaced by the same periods of consolidation or even correction. But in general, the dollar will be an outsider as long as the Fed maintains a renewed view of its monetary rate. This should be considered when planning transactions in the currency market.

Should we expect currency traders to be more active with the incoming calendar autumn?

In our opinion, this can happen. Of course, the pandemic has made adjustments to the natural course of things for the markets, but the holiday period is ending, and professional market participants will look for new reasons for making deals. And in the current situation, buying the dollar is simply unjustified from the point of view of fundamental analysis. We believe that it should be sold on any local recovery. First of all, this is justified in relation to the euro currency, then commodity currencies, whose growth will be due to the factor of the global economic recovery, which means a rise in demand for commodity and raw materials assets.

With regard to the euro, the resumption of its growth against the dollar can be noted as a consequence of rising demand for risky assets - company shares. During such periods, investors viewed the euro as an indicator of the strength of demand for risk-on. The demand for shares as well as the interest in the euro paired with the dollar is growing, although we can talk about the decline in the dollar's interest, which is commonly sold against the euro.

On the other hand, the pound strives to keep up with the euro; however, Brexit which continues to be an issue, can pull it down.

Conclusions

It can be concluded that the dollar's global decline will continue and it will only intensify in the wake of the emerging positive economic data from the US, since they will stimulate demand for company shares, and as mentioned above, will "press down" the dollar rate by selling it in the currency market.

Forecast of the day:

The EUR/USD pair has reached the upper boundary of the "rising flag" pattern. Thus, we expect the pair to resume growth either after it consolidates above 1.19850 or after a downward correction to 1.1955 with further rise to 1.2085.

The GBP/USD pair is trading below the level of 1.3420, immediately breaking which or after a short downward correction will lead to renewed price growth to 1.3525.

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Technical Analysis of ETH/USD for September 1, 2020

Crypto Industry News:

The number of Ethereum options grew by 230%, reaching $ 393 million in the last three months. While this is an impressive number, it does not fully reflect the possibility of using derivatives.

The first thing to note in the context of the current ETH options market are the most common strike levels. It is worth noting, however, that this information does not give a clear picture of whether options are mainly used to enforce pro-growth or downtrend strategies.

Overall, a chart heavily packed with "strikes" below the current market level indicates that either investors have been surprised by the recent increases in the ETH price, or fewer investors are now sharing the optimistic sentiment.

According to the above data, we are currently dealing with 535 thousand. Ether option, with strikes of $ 380 and below. On the other hand, only 243k options are available. ETH at $ 425 or higher. This can be partly explained by the 68% increase in the price of the cryptocurrency to the $ 400 level that occurred at the end of July, although this is not necessarily a positive indicator.

It should be noted that, unlike futures, options are divided into two segments. Call options allow the buyer to purchase Ether at an agreed price on the expiry date. On the other hand, the seller of the instrument will be required to make a sale.

Technical Market Outlook:

The ETH/USD had broke through the swing high located the level of $447.26 and continued to move higher. The recent high has been made at the level of $465.65 as the price has broken out of the parallel channel. The zone between the levels of $442.93 - $447.26 will now act as a demand zone for bulls. The next target for bulls is seen at the round level of $500.

Weekly Pivot Points:

WR3 - $507.05

WR2 - $468.00

WR1 - $450.50

Weekly Pivot - $409.09

WS1 - $391.88

WS2 - $350.52

WS3 - $335.87

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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Richard Clarida strengthened the impact of Powell's speech. Overview of USD, NZD, AUD

The Australian and New Zealand dollars hit two-year highs during the Asian trading session, while the US dollar continues to lose ground in all directions. On the other hand, commodity currencies are enjoying good market conditions, and their growth is taking place in view of stable oil, which probably means the start of a large repositioning of currency flows.

Richard Clarida, Fed's Deputy Head, also strengthened the dollar sell-off. He said that controlling the yield curve is not justified in the current conditions. If there were still any doubts after Powell's speech last week, it is now clear that the Fed is changing its approach to monetary management, which will affect the dollar negatively, since refusing to target the yield curve will mean lower returns for denominated assets in USD.

However, it is unclear what will be the result of the Fed's decision to change the position. But what's clear is that we should expect a further slowdown in the inflow of foreign capital, and the idea of repatriating capital should also be left out. Perhaps, the Fed is indirectly involved in the election campaign, since its position is more controlled by Democrats than Trump. The meeting on September 17 is likely to bring us many more surprises, but for now, we need to assume that the dollar will objectively continue to be under pressure, which will cause gold and possibly oil to rise.

On another note, the ISM Manufacturing Index will be published. Fed's member, Brainard is also expected to talk today. Therefore, volatility is likely to grow before this day ends.

NZD/USD

The index of business optimism in New Zealand continues to be below the expansion line. It was -41.8 p in August, while the forecast of activity worsened against July from -17% to -17.5%. There is no V-shaped recovery and so, the trend is negative.

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The speculative position on CME has changed insignificantly, however, the estimated fair price is still declining, which gives us reason to expect that the growing impulse is near completion.

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NZD is rising along with the market after J. Powell introduced a mechanism for targeting average inflation instead of the expected control over the yield curve, which the markets saw as a rejection of a strong dollar in the near future. This growth is logical, but in essence, the reasons for continued growth look very unstable.

ANZ Bank also updated its inflation forecast, suggesting that the RBNZ measures, which is expected to lower the rate below zero next year and expand quantitative easing, give reason to expect a stronger economic recovery and higher inflation by 2022. For the third quarter, the inflation forecast has been raised from 0.5% to 0.8%, with the result that annual inflation will remain at 1.5%. This is a positive sign for the "Kiwi" and allows counting on a higher rate, but at the same time, it lowers the yield against the US dollar, which, in turn, will not contribute to buying the NZD.

The NZD/USD rate approaches the resistance of 0.6788, which is also the upper limit of the current short-term channel. Thus, an attempt to break out is possible. If the NZD manages to go higher, the technical picture will become more bullish. At the same time, it is more likely that a top formation is near, followed by a downward reversal, since the estimated fair price continues to decline.

AUD/USD

Australia's macroeconomic data looks mixed. Foreign trade is recovering, which is reflected in a strong growth in the balance of payments in the second quarter, while corporate profits rose to 15% against1.1% in the first quarter. There was also a noticeable growth in building permits. At the same time, the AiG Manufacturing Activity Index declined in August from 53.5p to 49.3p.

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The growth of Commonwealth Bank manufacturing PMI also slowed down from 53.9 to 53.6 p, and there are no signs of a recovery in private sector lending, indicating strong consumer mood about the economic outlook.

The CFTC net short position on the AUD has slightly changed, so the target price continues to move downwards.

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The growth of the AUD is due solely to the dollar's weakness in recent days. There are no strong resistances, the short-term impulse looks confident, and moving to the nearest resistance 0.7480/90 is reasonable. However, we should consider the current impulse weakly justified, since the fair price does not rise, and the current optimism still has a very weak basis for the rising probability of introducing repeated quarantine measures. Thus, the Australian dollar will form a local top in the near future.

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GBP/USD: plan for the European session on September 1. COT reports. Pound continues to rise amid US dollar's weakness

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

Despite the continuation of the bull market for the pound, it was quite difficult to trade the British currency yesterday, and all the signals that formed during the day did not provide the expected profit. Let's figure it out. On the 5-minute chart, you can see that a false breakout formed after the first test of the 1.3324 level, which became a signal to enter long positions in anticipation of continuing the bullish trend. However, there was no upward movement and the pair returned to the 1.3324 level, allowing it to exit the market without any losses. Then a signal formed to sell the pound after testing the 1.3324 level from the bottom up, but even then the market did not go down, as we would like. Then the pound sharply grew, which led to the resistance of 1.3386, where it was possible to sell on a false breakout. The movement was around 20-25 points. According to the futures market, traders are not very eager to participate in the events that await them in September, namely, Brexit talks with the EU on a trade deal and the Bank of England's decision on monetary policy.

The Commitment of Traders (COT) reports for August 25 recorded a reduction in long positions, as well as a decline in short positions. This suggests that players are leaving the market, those who want to lock in profits at current highs in anticipation of very strong market fluctuations in the future. The COT report also indicates that there was a reduction in short non-commercial positions from the level of 47,806, to the level of 39,790 during the week. Long non-commercial positions declined more significantly from the level of 54,310 to the level of 45,390. As a result, the non-commercial net position also slightly fell, but remained in positive territory at 5,600, up from 6,504 a week earlier.

As for the current technical picture, today's main task for buyers of the pound is to maintain the support of 1.3386 in the morning, where a false breakout will be an excellent signal for entering the market while expecting to continue the upward trend that can push the pair to a new high of 1.3437. Consolidating at this level forms another entry point to long positions, relying on the area of 1.3478 and 1.3523, where I recommend taking profits. In case there are no active purchases in the support area of 1.3386, the more rational level for opening long positions will be the area of 1.3324, where the moving averages also pass. You can also buy the pound immediately on the rebound from the support of 1.3271 based on a correction of 30-40 points within the day.

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

Sellers can only rely on a weak PMI report for the manufacturing sector, which may limit the current bull market. But a false breakout in the resistance area of 1.3437 will be the first signal to sell the pound in current conditions. If there is no activity at this level and there is positive activity in the UK manufacturing sector, it is best to postpone short positions to test the high of 1.3478, or sell the pound even higher from the resistance of 1.3523 based on a correction of 30-40 points within the day. An equally important goal for the bears is to return and settle below the 1.3386 level, which forms a signal to open short positions in anticipation of GBP/USD falling to the support of 1.3324, where I recommend taking profits. The long-range target will be a low of 1.3271.

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Indicator signals:

Moving averages

Trading is carried out above 30 and 50 moving averages, which indicates a continuation of the bull market.

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 the classic daily moving averages on the D1 daily chart.

Bollinger Bands

In case the pound falls, support will be provided by the lower border of the indicator at 1.3305, from where you can open long positions immediately on a rebound.

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 speculative traders, 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 the short and long positions of non-commercial traders.
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EUR/USD: plan for the European session on September 1. COT reports. Euro buyers rising to new annual highs. Aim for the 20th

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

After yesterday's weak fundamental data on the Italian economy and inflation in Germany, several rather interesting signals formed in the market, both to buy and sell the euro. Let's deal with them. If you look at the 5-minute chart, you will see how the bulls acted quickly enough during the test of the 1.1887 support, forming a false breakout from it, which caused EUR/USD to instantly grow to the resistance area of 1.1947, where on the first test of this level, you could open short positions based on a downward correction against the trend. The bulls took the 1.1947 level in the afternoon and tried to continue the upward trend by testing it from top to bottom, which materialized in today's Asian session, as a result of which the 1.1994 level was finally reached. The report from the futures market also indicates that the growth of the European currency will continue in the near future.

The Commitment of Traders (COT) reports for August 25 recorded an increase in long non-commercial positions from the level of 259,244, to the level of 262,061, while short non-commercial positions decreased from the level of 62,301, to the level of 50,309. Given that the closing of long positions has stopped, and after a short pause, traders again began to actively buy euros on the futures market, we can expect the upward trend to continue in the first half of September. As a result, the positive non-commercial net position increased its value to 211,752, compared to 196,943 a week earlier.

As for the current technical picture in the EURUSD pair, a large growth during the Asian session may go on until the European session. To do this, the bulls need a breakout and have to settle above the resistance of 1.1994, which will lead to removing a number of stop orders from the bears above the 20th figure and to continue the bull market by updating highs of 1.2022 and 1.2057, where I recommend taking profits. However, a more rational solution in this situation is to buy when the euro falls in the support area of 1.1937. There are also moving averages that play on the side of euro buyers. Forming a false breakout at this level will be a signal to open long positions in anticipation of continuing the upward trend. If buyers are not active at this level, you can safely open long positions for a rebound from the support of 1.1887 based on a correction of 20-30 points within the day.

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

Sellers of the euro can only protect the resistance of 1.1994. Forming a false breakout at this level, along with poor data on the PMI index for the manufacturing sector of the eurozone countries, may strengthen the downward correction in the pair. However, the focus will shift to inflation data, a slowdown in which may lead to a revision of the European Central Bank's policy, which will have a negative impact on the euro. If sellers are not in a hurry to return to the market from the resistance of 1.1994, it is best to postpone short positions until a high of 1.2022 has been updated, or sell EUR/USD immediately to rebound from the resistance of 1.2057 in anticipation of a downward correction of 20-30 points within the day. An equally important task for the bears is to return the pair to the support of 1.1937 and settle below it. Since only in this case it will be possible to talk about a pressure forming on the pair and its further decline to the area of the low of 1.1887, where I recommend taking profits.

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Indicator signals:

Moving averages

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

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 the classic daily moving averages on the D1 daily chart.

Bollinger Bands

In case of a decline in the pair, support will be provided by the lower border of the indicator around 1.1910, from which you can buy the euro immediately on a rebound.

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 speculative traders, 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 the 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 September 1, 2020

Crypto Industry News:

Carylyne Chan, CoinMarketCap's director of strategy and acting CEO, is leaving a well-known cryptocurrency data site along with two of her colleagues, Jeremy Seow and Spencer Yang.

Chan, who has been with CMC since January 2018, publicly announced her departure on August 31. She took over as interim CEO shortly after Binance's acquisition of CMC in April this year. Seow has been Vice President of Products for CMC since June 2019, the same month that Yang joined as VP Operations, Growth and Revenue.

Chan said she was leaving the company in the hope that the CMC would play a more prominent role in cryptocurrency education. The cornerstone of the strategy she developed for the closest function was "CMC Alexandria", the new CMC education section, which aims to educate newbie's in cryptocurrency.

Chan has outlined her vision of cryptocurrency as a collaborative and community-led "revolution" that still requires considerable efforts before it can break through and "cross the gap" for universal use.

"{In addition to shedding light on the complex inner workings of cryptocurrencies, I believe we need to do a lot more to facilitate the actual use of this technology. We have all known for some time that better user experiences and simplified interfaces and products will be key to accelerating cryptocurrency adoption." Chan said.

In her letter to the CMC community, Chan noted that she personally hired and trained over a quarter of the nearly 50-strong CMC team. In the spring of 2019, CMC launched two cryptocurrency reference indices on the Nasdaq, Bloomberg and Refinitiv (Thomson Reuters) platforms as part of the site's efforts to transfer cryptocurrency asset data to mainstream platforms.

Technical Market Outlook:

The BTC/USD pair keep on rallying towards the next technical resistance seen at the level of $11,855. The recently violated level of $11,765 will now act as a technical support for the price. The momentum is strong and positive, so the bulls are now in control of the market. The key supply zone is still located between the levels of $12,269 - $13,429 and only a clear breakout through this zone will be seen at an end of the corrective cycle. The weekly time frame trend remains up.

Weekly Pivot Points:

WR3 - $12,658

WR2 - $12,221

WR1 - $11,935

Weekly Pivot - $11,435

WS1 - $11,232

WS2 - $10,778

WS3 - $10,510

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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Technical Analysis of GBP/USD for September 1, 2020

Technical Market Outlook:

The GBP/USD pair has been moving higher after the swing high seen at 1.3264 had been violated. The recent swing high has been made at the level of 1.3417 and due to the strong and positive momentum, the bulls might extend the rally even more. The immediate support for bulls is seen at the level of 1.3355 and only a clear violation of this level will be an intraday bearish signal. The next target for bulls is seen at the level of 1.3447. Weekly and monthly time frame trend remains up.

Weekly Pivot Points:

WR3 - 1.3797

WR2 - 1.3564

WR1 - 1.3482

Weekly Pivot - 1.3256

WS1 - 1.3192

WS2 - 1.2962

WS3 - 1.2882

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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Technical Analysis of EUR/USD for September 1, 2020

Technical Market Outlook:

The EUR/USD pair has broken through the last swing high seen at the level of 1.1965 and made a new swing high at the level of 1.1997, only 3 pips shy of 1.2000 level. The bullish momentum is strong and positive, so more upside should be expected. The immediate support for bulls is seen at the level of 1.1965 and only a clear violation of this level will be an intraday bearish signal. The next target for bulls is the swing high seen at the level of 1.2089. Weekly and monthly time frame trend remains up.

Weekly Pivot Points:

WR3 - 1.2130

WR2 - 1.2019

WR1 - 1.1975

Weekly Pivot - 1.1859

WS1 - 1.1812

WS2 - 1.1706

WS3 - 1.1664

Trading Recommendations:

On the EUR/USD pair the main trend is up, which can be confirmed by almost 10 weekly up candles on the weekly time frame chart and 4 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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Analytics and trading signals for beginners. How to trade the EUR/USD on September 1? Plan for opening and closing trades

Hourly chart of the EUR/USD pair

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The EUR/USD pair resumed moving up without any problems during Monday night trading and also rose by another 60 points. The 1.1967 level, which we pointed out yesterday as a possible strong resistance, turned out to be very weak in practice. The price settled above it, and at the same time, also above the first resistance level of 1.1973. The new upward movement began at about 4 am. That is, at a time when most traders were sleeping. Therefore, it was not possible to enter the market on time. Moreover, the MACD indicator failed to approach the zero mark again, and the upward movement began so sharply that the signal formed when the pair had already gone up by around 30 points. In general, we continue to insist that a rather complicated technical picture has developed for the EUR/USD pair. Especially for novice traders. On the one hand, there is a trend and it is strong enough and even a new upward trend line has been built, which supports movement to the upside. On the other hand, a strong trend must be worked out continuously, that is, without closing trades at each correction. A strong trend is not for intraday work. So it turns out that trading should be more aggressive now, which can result in losses for novice traders.

The EU macroeconomic calendar of events for September 1 contains the index of business activity in the manufacturing sector of the EU and Germany (as well as a number of other European countries), the unemployment rate in Germany, the consumer price index and unemployment rate in the European Union. Meanwhile, the Markit and ISM manufacturing business activity indices will be published today in America. From all this package of macroeconomic statistics, we can highlight inflation in the EU, as well as the ISM business activity index in the US. Unfortunately, the mood of market participants is now strictly directed at selling the dollar. Therefore, even if the data are in favor of the US currency, this does not mean that the dollar will increase today. However, novice traders should not miss today's reports, as in any case, macroeconomic data is needed in order to clearly understand the current state of the EU and/or US economy and how fast it is recovering from the crisis. Also scheduled for today is a speech by European Central Bank Vice President Luis de Guindos, who from time to time also shares very useful information with the markets.

Possible scenarios for September 1:

1) Buying the pair at this time is generally relevant. There is an upward trend line, the price is regularly moving up. But, as we have already mentioned, the current movement is very inconvenient for beginners who are not yet familiar with all the intricacies of the market. Thus, long deals on the euro are certainly possible with the targets of 1.2011 and 1.2055, but traders should clearly understand all the risks that they take on when opening such transactions. Quotes of the euro currency are still currently at two-year highs. And the US dollar is too oversold.

2) We also do not recommend considering sales right now, because there are no patterns that support the downward movement. If the price settles below the upward trend line, this can be used to open new sales of the pair with the target at 1.1891. However, the markets are now clearly set for selling the dollar, so it is not a fact that this consolidation will happen today. In any case, we recommend that novice traders behave with extreme caution in the coming days.

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.

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

Elliott wave analysis of GBP/JPY for September 1, 2020

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GBP/JPY could peak anytime now for a correction towards 138.34 in red wave iv/. A break below minor support at 141.30 will indicate that GBP/JPY has peaked and the expected correction in red wave iv/ is ongoing for a dip to 138.34 before red wave v/ moves higher to complete red wave iii in the 143.43 - 144.63 area and set the stage for a sideways consolidation in red wave iv.

However, for now, we are looking for a break below 141.30 to confirm that red wave iii/ has peaked and red wave iv/ is ongoing.

R3: 142.60

R2: 142.30

R1: 142.04

Pivot: 141.30

S1: 140.87

S2: 140.59

S3: 140.32

Trading recommendation:

We will buy GBP again at 138.50

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GBP/USD price movement, September 01, 2020.

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Cable has already broken out from the consolidation area (Maroon Rectangle). Now, this pair is moving towards the 1.3395 level as its first target and the 1.3514 level as its second target. Although there is a possibility that the pair might retrace to 1.3300. However, as long as the bullish momentum is strong, both of those level can be broken.If the pair does not hit these targets until tomorrow Sept 02, 2020 then GBP/USD will reverse downwards.

(Disclaimer)

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Elliott wave analysis of EUR/JPY for September 1, 2020

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EUR/JPY is currently retesting the 126.77 peak, but we still think that more downside correction would be the optimal solution before the next real upswing towards at least 129.23 and ideally closer to 135.46 occurs. The ongoing correction should push the pair close to support at 124.41 before completing the correction that has been in motion since the August 13 peak at 126.77. In the short-term, a break below minor support at 126.27 will trigger a second dip close to 124.41 to complete the correction in wave 2/.

R3: 127.51

R2: 127.14

R1: 126.77

Pivot: 126.27

S1: 125.93

S2: 125.36

S3: 124.85

Trading recommendation:

We will buy EUR at 124.50 or upon a clear break above 126.85

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Forecast for EUR/USD on September 1, 2020

EUR/USD

The dollar index fell by 0.12% on Tuesday, as investors continued to inertly buy up counterdollar currencies in the absence of new incoming data following Federal Reserve Chairman Jerome Powell's speech from last Thursday. We expect new data today, potentially capable of stopping and significantly outstripping the reaction of investors. Such data might be indicators of business activity in the eurozone and the United States, as well as European data on inflation and employment.

So, the final estimate of the eurozone Manufacturing PMI for August is expected to remain unchanged at 51.7 points, the US ISM Manufacturing PMI is expected to grow from 54.2 to 54.6. The eurozone consumer price index for August may weaken from 0.4% y/y to 0.2% y/y, and the unemployment rate may also show an increase from 7.8% to 8.0%. Perhaps, the employment index will be a key event today, as data on the US will be released on Friday and unemployment there is projected to fall from 10.2% to 9.8%. At the same time, today's data on construction spending in the July estimate is expected to grow by 1.0%.

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The daily chart shows that the price moved up from the uncertainty zone and now it has two equally probable scenarios: return to this free roaming range as it happened on August 19, if today's macro data turns out to be effective, or continue to grow into the target range of 1.2040/55 in case of ambiguous data release...

The Marlin oscillator, which has formed a divergence with the price, is also ready for two scenarios: completing the nearest development from the current levels, and with its arrangement above, approximately in the area of the dashed line.

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There are no signs of a reversal on the four-hour chart yet. The signal line of the Marlin oscillator is moving horizontally and may continue to rise. We are waiting for the development of events. Trading in both directions carries an equal risk of uncertainty.

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Forecast for AUD/USD on September 1, 2020

AUD/USD

The Australian dollar reached the target level of 0.7395. An ideal triple divergence formed with the Marlin oscillator, exactly described by its line. Mathematically, the probability of a price reversal is more than 70%, but now the aussie is under the great impression of external markets, and the US dollar's long-term weakness will send AUD/USD higher to the target level of 0.7500. Commodities and metals are also slightly growing. Setting the price above the 0.7395 level will make it possible to continue growth towards the second target of 0.7500.

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The price shows its intention to settle above the 0.7395 level on the four-hour chart. The leading Marlin oscillator is declining, creating an intrigue of uncertainty. We are waiting for the development of events.

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Forecast for USD/JPY on September 1, 2020

USD/JPY

USD/JPY gained 54 points on Monday. Having reached the balance line on the daily chart, the price turned down from it. The decline intensified during today's Asian session. It is very likely that our fears about the price falling to support the lower border of the price channel towards the 104.90 level is turning into the main scenario. The signal line of the Marlin oscillator returns to the area of negative values again.

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The price turned away from the balance line on the four-hour chart, which is very indicative that the trend has not gone upward. Also, Marlin did not try to enter the growth trend zone. We are waiting for the price to decline further, the target is 104.90.

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Hot forecast and trading signals for GBP/USD on September 1. COT report. France accused London of deliberately prolonging

GBP/USD 1H

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After a low downward correction, the GBP/USD pair resumed its upward movement within a new ascending channel on August 31. Thus, the upward trend for the pound/dollar pair persists after the pair's quotes left the downward channel. The nearest target for the upward movement is the 1.3451 level. Take note that all targets are located far enough both from the price and from each other. As for the technical reasons for the new upward movement, there are still few of them. A downward correction has been brewing for more than a month, which has not started due to low demand for the US dollar. This point is when it is most alarming to make long deals on the British currency.

GBP/USD 15M

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The lower linear regression channel turned sideways on the 15-minute timeframe, but the channel on the hourly chart is more important now, which supports the bulls. The latest Commitment of Traders (COT) report for the British pound, which came out on Friday, was completely neutral. Despite the fact that the UK currency resumed growth against the dollar and continued to do so at the beginning of the new week, professional traders did not open new Buy-contracts during the reporting week of August 19-25. On the contrary, 9,700 Buy-contracts and 9,100 Sell-contracts were reduced. Thus, the net position for the non-commercial category of traders even slightly decreased. However, this change is so insignificant that it makes no sense to draw conclusions on it. Thus, the general attitude of large traders remains the same. The last four trading days were not included in the latest COT report, and it was on these days that the British currency rose in price again. Thus, in the new COT report, we can see a significant increase in net position among non-commercial traders, which, in turn, will confirm the intention of the big bulls to continue investing in the pound, while getting rid of the US dollar.

Meanwhile, new, important data for the British pound and the whole of Great Britain appeared on Monday. France has officially accused London of deliberately delaying talks on a deal regarding its future relationship. "Negotiations are not advancing, because of the intransigent and unrealistic attitude of the United Kingdom," said French Foreign Minister Le Drian. Recall that the last comments of Michel Barnier indicated that the talks began to move in the opposite direction. Le Drian makes it clear to London that the European Union will not follow the lead of 10 Downing Street. Europeans believe that British Prime Minister Boris Johnson does not want to conclude a fair agreement, and in this case will not receive any deal at all. Germany also put an end to the talks. Diplomatic talks were to take place at the highest level on September 2, at which the issues of the Brexit deal would be discussed. However, Berlin said that it will not participate in them, as no progress has been made, and "time was wasted." The EU government believes that London is morally ready to leave the EU without a deal and blames Brussels for what is happening. We remind you that initially Johnson planned to withdraw Britain from the EU without a deal. Thus, from our point of view, London is bending the line that it initially adhered to. The pound sterling does not show any interest in this news, although it is negative for it.

Based on the above, we have two trading ideas for September 1:

1) Buyers have been active in recent days and are pushing the pair up again. At the moment there is a new channel to the upside. The price has reached its upper line, so today a correction to the lower line may begin, around which you can consider new long deals on the British currency while aiming for the resistance level of 1.3451. Take Profit in this case will be about 110 points.

2) Bears once again released the pair from their hands, as the quotes went above the downward trend channel, so sales are no longer relevant. Thus, it is now recommended to consider short positions again after the price settles below the new ascending channel and the Kijun-sen line (1.3252) while aiming for the support area of 1.3156-1.3182 and the 1.3025 level. Take Profit in this case will be from 50 to 250 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

Hot forecast and trading signals for EUR/USD on September 1. COT report. Dollar continues to free fall without the help of

EUR/USD 1H

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The euro/dollar pair quite easily overcame the resistance area of 1.1886-1.1910 for the second time and continued to move up to the first resistance level of 1.1961 on the hourly timeframe. Formally, the quotes of the pair left the side channel, in which they traded for more than a month. However, at the same time they failed to gain a foothold above the 1.1961 level, which is also the previous local high. Thus, despite the fact that the flat is formally over, the price can go down from the current positions. From a technical point of view, a strong downward correction is still more logical. And with the fundamental - the long-term fall of the dollar. The situation is confusing and complicated by the absence of trend lines or channels that would greatly help in trading.

EUR/USD 15M

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Both linear regression channels are directed upward on the 15-minute timeframe, but in the near future they may turn down if the resistance level of 1.1961 is not overcome. A new Commitment of Traders (COT) report was released last Friday. Take note that its character has not changed at all compared to previous COT reports. Despite the fact that the euro/dollar has been trading within the side channel for more than a month, professional traders continue to increase their net position. In other words, non-commercial traders (the most important group of traders) raise the number of Buy-contracts, while the number of Sell-contracts is decreasing. The non-commercial category of traders opened 1,302 Buy-contracts and closed 11,310 Sell-contracts during the reporting week on August 19-25. Thus, the net position (the difference between the number of buy and sell contracts) increased by 12,000 Therefore, we can draw the same conclusions as a week ago, as two weeks ago: professional traders continue to view the euro as a more attractive currency to invest in than the US dollar. The situation did not change during the last three trading days of the past week, which were not included in the latest COT report, as the euro continued to rise in price.

There was practically no fundamental background for the EUR/USD pair on Monday. No important macroeconomic data for the European Union or the United States were published that day either. There were also few important and interesting news. Riots and rallies against police violence under the auspices of "Black Lives Matter" continue in some cities in the United States. The social crisis, as we see, is not over. Meanwhile, US President Donald Trump criticized the Democrats again, including those who are mayors of US cities, and accused them of complete inaction in opposing the protesters. "The only way you will stop the violence in the high crime Democrat run cities is through strength!" Trump tweeted. The EU is set to publish the unemployment and inflation rate, and the US will release the index of business activity in the manufacturing sector (ISM), which will both be interesting. We would like to remind you that the previous European business activity indices significantly dropped compared to the previous month. The same fate may await US business activity.

Based on the above, we have two trading ideas for September 1:

1) Bulls again went over to attack and pushed the pair to the previous local high of 1.1961. They also managed to withdraw the pair from the side channel for the second time, in which trades were mainly held in recent weeks. Thus, if the price settles above the 1.1961 level, we recommend buying the euro again with targets at the resistance levels of 1.2020 and 1.2119. Take Profit in this case will be from 35 to 130 points.

2) Bears again missed the opportunity to start forming a new downward trend, although the bulls gave them a whole month to do so. Thus, sales of the pair can be done with targets at the 1.1803 level and the support area of 1.1702-1.1727, if the price manages to gain a foothold below the Senkou Span B line (1.1860). In this case, the potential Take Profit ranges from 35 to 115 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