EUR/USD Flirting With Critical Resistance

The pair is trading higher at 1.1786 level after ignoring the 1.1753 static resistance. EUR/USD has changed little in the early morning after reaching 1.18 psychological level. The bullish pressure is high in the short term, so a valid breakout above this level validates further growth.

EUR/USD rallied after yesterday better-than-expected eurozone's data. Still, the greenback could strike back versus its rivals if the USDX gives birth to a new bullish momentum as the US ISM Services PMI rose to 57.8, beating the 56.3 estimates.

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I told you yesterday that EUR/USD would reach 1.18 and the up sloping line if it closes above 1.1753 level. Technically, the quote was expected to register a deeper drop after the H&S pattern was validated.

The pattern is still intact as long as the pair stays under 1.18 and below the former channel's support. A valid breakout above these levels should activate a strong bullish momentum towards 1.2 psychological level.

USDX could recover and jump higher if it stabilizes somewhere above the 93.50 level. A USDX's drop towards 92.55 support should push EUR/USD up to 1.2.

  • EUR/USD Trading Tips

Buy a valid breakout (close and retest) of 1.18. The 1.2 level and the channel's upside line are seen as targets.

A false breakout with great separation above the immediate resistance levels or a major bearish engulfing suggest selling. Also, a drop under 1.1694 brings a short opportunity with a potential downside target at 1.1495.

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

Forex forecast 10/06/2020 from Sebastian Seliga

Due to the lack of the important events in today's forex calendar, we will update the AUD/USD analysis after the RBA made the interest rate decision and take a look at the interesting trading setup at the EUR/GBP. The video analysis will include the macro data review, technical analysis and possible trading plan to trade the EUR/GBP and AUD/USD pairs.

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

USD will be under pressure due to negative news on Trump's illness and the adoption of new economic stimuli

The market yesterday completely switched to the situation around D. Trump and his COVID-19, as well as to the possibility of new stimulus measures, which put pressure on the US dollar.

It seems that we will see an interesting picture this week. The two factors that are decisive will be the situation around Trump being infected by COVID-19 and the Congress' adoption of a new stimulus program. The market believes that if the US president will not be cured immediately, it will help J. Biden in the presidential race and investors currently believe that this will be positive for the stock market, since his victory will be more actual, which could force Trump to admit defeat.

Against this background, there will be continued demand for shares of companies that have already significantly corrected in September and, according to the dynamics of the indices, are trying to turn up.

In these conditions, the US dollar is under pressure. It is quite likely that it can continue to decline to major currencies, if Speaker of the Lower House of Congress N. Pelosi and Finance Minister S. Mnuchin will agree on new measures to help Americans and business during the meeting today, as it resulted in nothing yesterday.

The main negative factor for the USD rate is the high probability of J. Biden's victory in the presidential election, since COVID-19 could prevent Trump from actively participating in the debates. An increase in the chances of winning the first one significantly reduces the possibilities of the second candidate.

To sum it up, the currency market is expected to react today based on the news about Trump's COVID-19 and the possibility of agreements on incentives between Pelosi and Mnuchin. A new rally in equity markets will be triggered if news about Trump will be negative and news about incentives will be positive. In turn, the dollar will weaken.

In terms of economic statistics, we will single out the publication of the number of open vacancies in the JOLTS labor market, as well as the speeches of the ECB's head C. Lagarde and the Fed's head J. Powell.

Forecast of the day:

The EUR/USD pair is declining after yesterday's rally in anticipation of Lagarde and Powell's speeches. It could correct to 1.1755 before rising towards 1.1810 on the wave of possible new optimism.

The AUD/USD pair is moving down on the wave of the result of the RBA monetary policy meeting. This, as well as the general possible correction in the currency market, could push the pair down to 0.7100 after overcoming the level of 0.7160.

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AUD/USD. Aussie's "minute of fame": Reserve Bank provided short-term support for Aussie

The results of the Reserve Bank of Australia's October meeting provided short-term support for the Aussie. The AUD/USD pair unexpectedly broke through the resistance level of 0.7200, but after an hour, it returned to its previous position in the area of the 71st figure. In General, the October meeting turned out to be "passing and the rapid initial reaction was due only to previous rumors, which in the end were not justified.

May I remind you that shortly before the meeting, there were rumors in the market that the Australian Central Bank will lower the interest rate – either at the October or November meeting. This scenario was warned by currency strategists at Australia's largest financial conglomerate Westpac, whose position was also supported by AMP Capital, HSBC and UBS. Economists at these banks predicted a rate cut in October "as one of the most likely options."

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The reason for such conversations was the statement of the Deputy head of the RBA Gai Debbel, who said that "negative rates were and are in the Arsenal of the Central Bank." Even though she noted in the same speech that "this leverage is not on the agenda", and that "the peak of the coronavirus crisis may be over", traders seized on the first part of the phrase. As a result, on the eve of today's meeting, the market estimated the probability of a rate cut at almost 60%. Many experts also pointed to the failed inflation data that was published in September. The data on the Australian labor market could also be a reason for lowering the rate. Despite the decline in the unemployment rate, there was again an imbalance towards the growth of part-time employment in August, while the indicator of full employment showed weak dynamics.

In other words, the market "screwed up" itself, so the first reaction to the results of the October meeting was quite emotional – the AUD/USD pair was able to unexpectedly break through the resistance level of 0.7200. But buyers of the pair failed to gain a foothold in this price area. Traders immediately played down the fact that the RBA did not cut the rate in October and apparently, it will not resort to this step next month. While the rhetoric of the accompanying statement was very "dovish" in nature. In fact, the regulator listed the negative aspects of recent releases, focusing primarily on the slowdown in inflationary growth and the weak, uneven pace of labor market recovery. The key messages of the accompanying statement can be quoted as follows: 1.) "the Central Bank will not increase the monetary rate until progress is made towards full employment and achieving confident inflation within 2-3% 2.) "RBA members continue to consider how additional monetary easing can support labor market growth as the economy continues to recover."

The Australian regulator did not rule out the option of easing monetary policy but it is too veiled and pointless, so the Aussie ignored the message.

Obviously, the Reserve Bank of Australia is waiting for the presentation of the country's budget, which will take place in just a few hours – in the evening, Sydney time. The head of the RBA, Philip Lowe has repeatedly made it clear that he puts the government's decision regarding the extension of incentive programs at the forefront. Let me remind you that at the end of July, the Prime Minister of Australia announced that the JobKeeper and JobSeeker programs will be extended after September. However, according to available information, these programs will be significantly reduced. In particular, subsidies will be paid at a reduced rate and according to stricter criteria, the support will be provided only to those who really need help. For example, the amount of the subsidy will depend on whether the employee works full-time or not. Given the pattern of employment growth (a sharp increase in part time employment in both August and July), it can be concluded that the income of many working Australians will still remain low.

But as of this moment, all assumptions regarding the level of government incentive programmes are in the nature of rumors. The members of the Australian Central Bank will evaluate the programs presented today at their next November meeting and based on the relevant analysis, they will make a decision on adjusting the parameters of monetary policy.

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Thus, the Australian dollar, on the one hand, received support from the RBA today – the regulator left the interest rate at the same level, despite numerous conversations about its reduction. On the other hand, this support for the Aussie was short-term, since the rhetoric of the accompanying statement was "dovish" in nature. In fact, the Central Bank did not rule out easing the parameters of monetary policy in the future. As a result, the AUD/USD pair remained at the same positions, trading near the borders of the 72nd figure.

The pair's future prospects will depend on the dynamics of the US currency, at least in the medium term. The US dollar index continues to trade flat in anticipation of today's speech by the head of the Federal Reserve Jerome Powell – at 17:40 (Moscow time), he will give a speech on the prospects for the recovery of the US economy. Also, dollar bulls will "win back" other fundamental factors today as Trump returns to the White house again despite the rumors of his serious condition and congressional negotiations around a new stimulus package. In my opinion, we can expect the greenback to strengthen in the near future, including in a pair with the Australian. Therefore, for the AUD/USD pair, we can consider short positions going down to 0.7110 – this is the lower limit of the Kumo cloud on the daily chart.

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Analysis and trading recommendations for the EUR/USD and GBP/USD pairs on October 6

Analysis of transactions in the EUR / USD pair

A rather strong report over the eurozone services sector was published yesterday, followed by a sharp jump in retail sales. Such became a good impetus for growth in the European currency, thus, long positions from 1.1742 brought about 40 pips of profit in the market.

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Trading recommendations for October 5

ECB President Christine Lagarde will hold an important speech over inflation and the PPEP emergency buyback program today, with which hints of its expansion may lead to a short-term fall in the European currency. Meanwhile, other important macroeconomic statistics are not scheduled to be published.

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  • Buy a position only when the euro reaches a quote of 1.1802 (green line on the chart), and then take profit at the level of 1.1844. However, a bullish move will only occur if good news comes out from the meeting of Eurozone finance ministers.
  • Sell after the euro reaches a quote of 1.1778 (red line on the chart), as such will increase pressure on the EUR / USD pair, thereby forcing speculative players to leave the market. Afterwards, take profit at the level of 1.1724.

Analysis of transactions in the GBP / USD pair

Good data on the UK services sector kept the British pound from declining, so as a result, short positions from the level of 1.2909 became rather unprofitable yesterday. Meanwhile, long positions from 1.2955 were also unlucky, as there was no large movement from the range.

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Trading recommendations for October 5

Today, the latest report on UK construction PMI is scheduled to be published, but even if it is not of particular interest, it may have a short-term impact on the pound if the data is seriously at variance with the forecasts of economists.

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  • Buy a position when the pound reaches a quote of 1.3004 (green line on the chart), and then take profit around the level of 1.3080 (thicker green line on the chart).
  • Sell a position after the pound reaches a quote below 1.2970 (red line on the chart), and then take profit at least at the level of 1.2904.
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GBP/USD: plan for the European session on October 6. COT reports. Will the bulls manage to defend support at 1.2965?

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

Buyers of the pound managed to rebound off the support level of 1.2897 in the first half of the day, following the release of a pretty good final indicator on the activity of the UK services sector. I paid attention to the 1.2897 level in yesterday's morning forecast and advised you to open long positions from it. Unfortunately, if you look at the 5-minute chart, you will see that it was not possible to achieve any signal from the 1.2975 level in the afternoon. This range was completely blurred, which forced me to revise it in today's forecast.

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An important task for the pound buyers is to protect support at 1.2965 today. As long as trading is conducted above this range, there is a fairly high chance that the pound will continue to grow in the short term. Forming a false breakout at the 1.2965 level in the first half of the day forms another buy signal. It is likely that this may happen after the release of data on activity in the UK construction sector. The bulls will immediately aim for resistance at 1.3029, consolidating on it forms an additional entry point to long positions while expecting to update a large high at 1.3089, where I recommend taking profits. If the pound is under pressure again and the pair drops below the 1.2965 level, where the moving averages playing on the side of the bulls also pass, then it is best not to rush to open long positions, but to wait until GBP/USD falls to the support area of 1.2897. Forming a false breakout there will be a signal to buy the pound. It is best to open long positions immediately on a rebound from the 1.2819 low.

The Commitment of Traders (COT) reports for September 29 recorded a sharp rise in short positions and a reduction in long positions, which affected the net position and led to its larger negative value. This once again confirms the desire of traders to build up short positions with any growth in the level, counting on uncertainty over Brexit and the prospects for the recovery of the British economy. The pressure on the pound will gradually increase as the second wave of coronavirus spreads. Short non-commercial positions increased from 40,523 to 51,961 during the reporting week. Long non-commercial positions decreased from 43,487 to 39,216. As a result, the non-commercial net position became negative and reached -12,745, against 2,964 a week earlier, which indicates that control over the market is gradually returning to large sellers.

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

Pound sellers have a very simple task. For the market to return to their side, GBP/USD must drop below the 1.2965 level. Testing this area from the bottom up forms a good entry point into short positions. In this case, the 1.2897 area will be the nearest target, breaking below which will not be so easy. If the bears succeed in doing this, the pressure on the pound may significantly increase, and more persistent sellers will wait for an update of the 1.2819 low, where I recommend taking profits, since large buyers were constantly entering from this range throughout the week, betting on the pound's growth. In case the pair grows in the first half of the day after the report on the construction sector in the UK, it is best not to rush to sell, but to wait until a high at 1.3029 has been updated, where a false breakout provides an entry point for short positions. Selling GBP/USD immediately on a rebound is best from the range of 1.3089, counting on a correction of 30-40 points within the day.

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Indicator signals:

Moving averages

Trading is carried out above 30 and 50 moving averages, which indicates an attempt to build a new upward wave 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 the classic daily moving averages on the daily D1 chart.

Bollinger Bands

A breakout of the upper border of the indicator in the 1.3000 area will increase the demand for the pound. A breakout of the lower boundary at 1.2940 will bring pressure back to the pair.

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) Quick 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 short and long positions of non-commercial traders.
The material has been provided by InstaForex Company - www.instaforex.com

EUR/USD: plan for the European session on October 6. COT reports. Euro's succeeding growth depends on Lagarde and Eurogroup

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

A good signal to buy the euro appeared yesterday morning, which I mentioned in my afternoon review and also where I recommended opening long positions while expecting the pair's upward correction to the 1.1793 level, which happened. As a result, the upward movement was around 50 points. If you look at the 5-minute chart, you will see that it was possible to take advantage of the rebound from resistance at 1.1796 and also sell the euro while expecting a small correction, the likelihood of which I also mentioned in yesterday's forecast.

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At the moment, the bulls have coped with the task set at the beginning of the week and the pair's succeeding growth will entirely depend on their behavior at the 1.1796 level. In case of a breakout and consolidation above this range, similar to yesterday, as was the case with the 1.1749 area, you can open new long positions in order to continue the upward correction already in the area of new highs at 1.1833, where I recommend taking profits. The 1.1868 area will be a distant target. Since important fundamental data will not be published today, everyone will focus on the Eurogroup meeting, at which a plan for the distribution of the EU recovery fund will be discussed. This could support the euro. In case of negative news and EUR/USD moves down, it is best not to rush into buy positions, but to wait until support at 1.1749 has been updated, where you can open long positions if a false breakout appears. Moving averages that play on the buyer's side also pass there. In case the pair does not sharply move from this level, I recommend postponing longs until the low of 1.1701 has been tested, where you can expect the euro to quickly rebound by up to 20-30 points during the first test.

The Commitment of Traders (COT) report for September 29 recorded a reduction in both long and short positions, which led to a decrease in the delta. Apparently, the lack of guidelines and a surge in the incidence of coronavirus in Europe discouraged major players from building up long positions in the euro, but no one is in a hurry to buy the US dollar either because of the upcoming presidential elections in the United States. Thus, long non-commercial positions decreased from 247,049 to 241,967, while short non-commercial positions decreased from 56,227 to 53,851. The total non-commercial net position also decreased to 188,116, against 190,822 a week earlier. which implies that new players are taking a wait-and-see approach, however, bullish sentiments for the euro remain rather high in the medium term. The more the euro falls against the US dollar, the more attractive it is for new investors.

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

Sellers of the euro need to protect resistance at 1.1796, and a false breakout on it will be a signal to open short positions in the pair. An equally important goal is to return support at 1.1749, settling below this level will form a larger entry point to short positions and will also return control to sellers, allowing them to reach the 1.1701 area, where I recommend taking profits. Support at 1.1656 will be a distant target. If European Central Bank President Christine Lagarde's speech supports the euro, and the bears retreat from resistance at 1.1796, it is best not to rush to sell, but wait for the quote to rise to a new resistance at 1.1833, or sell the euro immediately on the rebound from the high of 1.1868, counting on a 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 correction of 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 daily D1 chart.

Bollinger Bands

The breakout of the upper border of the indicator around 1.1805 will sustain the euro's growth. In case the pair falls, support will be provided by the lower border of the indicator in the 1.1755 area.

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) Quick 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 short and long positions of non-commercial traders.
The material has been provided by InstaForex Company - www.instaforex.com

Technical Analysis of ETH/USD for October 6, 2020

Crypto Industry News:

More than half of all exchanges in the world have poor KYC identification protocols - with exchanges in Europe, the United States and the UK, according to a new study from blockchain analytics firm CipherTrace

CipherTrace has analyzed over 800 decentralized, centralized and automated exchanges and found that 56% of them do not comply with the KYC guidelines at all, despite AML anti-money laundering regulations. Most of these exchanges are in Europe, a region known for its stricter regulations. However, 60% of European virtual resource service providers have inappropriate KYC practices.

The US, UK and Russia are the three countries with the most exchanges with a weak KYC. Singapore is also at the top of the pack when it comes to VASP numbers. The research found that many exchanges do not bother to list the country of origin on their website. This seems purposeful as 85% of these exchanges had a poor KYC framework. This means that some exchanges hide their jurisdictions to avoid having to register or comply with AML regulations.

The report notes that 70% of exchanges registered in the Seychelles have poor KYC standards, making this small island a breeding ground for potential money laundering people.

The study also analyzed 21 DEX and found that as many as 81% of people used KYC practices that were weak or not knowing their client. However, DEX is not necessarily a good place for money laundering. CipherTrace noted that while the $ 7.9 million of cryptocurrency stolen during the KuCoin hack was sold on the decentralized Uniswap exchange, it was not laundered there.

Technical Market Outlook:

The ETH/USD pair keeps moving higher and is currently approaching the 61% Fibonacci retracement of the last wave down. This level is seen at $356.34 and if violated, the road to the level of $362.60 and $369.37 is open. The momentum is positive, but not that strong, so the move up might take some time. The immediate technical support is seen at the level of $345.40.

Weekly Pivot Points:

WR3 - $403.75

WR2 - $387.38

WR1 - $368.10

Weekly Pivot - $351.05

WS1 - $333.15

WS2 - $315.51

WS3 - $296.13

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. The key mid-term technical support is currently seen at the level of $305.20 - $321.95, so 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.

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

Technical Analysis of BTC/USD for October 6, 2020

Crypto Industry News:

According to the BTCparsers bot, which monitors the Bitcoin blockchain, someone transferred 50 BTC inside the network that had been dug back in the Satoshi Nakamoto era - in 2010 to be exact.

According to media reports, a similar incident took place on May 20, when 50 BTC was transferred from a wallet that had been intact since February 2009. This rare transaction can be feared by investors. Since someone of the earliest early adopters decided to start their coins, there is a risk that they will throw huge amounts of cryptocurrencies into the market. This would lead to market drops.

The last such move, reported by the authors of BTCparsers, took place on October 2, so theoretically, it could have additionally fueled the latest price correction. But at the same time, concerns about the BitMEX scandal or about Donald Trump's COVID-19 appeared on the market.

Traffic in the blockchan at such an old address led to speculation that it was Satoshi Nakamoto himself who began to cash his fortune. In the end, it was later found that the address was not part of the so-called "Patoshi's" blocks, which researchers believe in the fate of the Bitcoin wizard were excavated by the creator of the cryptocurrency.

Satoshi is believed to own (assuming he is no longer alive) around 1 million BTC. This would currently make a fortune of about $ 10.5 billion.

Technical Market Outlook:

The BTC/USD pair has been broken above the level of $10,679, which was the 61% Fibonacci retracement of the last wave down. As long as the short-term trend line support (marked as black dash line on the chart) is not clearly violated, there is a chance for the market to continue to move higher. The key level here is $10, 697 - it can not be violated. The next target for bulls is seen at the level of $10,890, which is the last swing high. On the other hand, the nearest technical support is seen at the level of $10,586 and $10,547.

Weekly Pivot Points:

WR3 - $11,471

WR2 - $11,178

WR1 - $10,858

Weekly Pivot - $10,602

WS1 - $10,300

WS2 - $10,024

WS3 - $9,715

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 corrections 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 $10,000.

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

Technical Analysis of GBP/USD for October 6, 2020

Technical Market Outlook:

The GBP/USD pair has hit the target located at the level of 1.2979 in overbought market conditions. The odds are now in favour for the bears, that might push the prices back into consolidation zone again. The technical support for bears is seen at the levels of 1.2868 and 1.2848 and if any of this level is hit, the short-term up move is terminated and the market is back to the mid-term down trend.

Weekly Pivot Points:

WR3 - 1.3265

WR2 - 1.3116

WR1 - 1.3034

Weekly Pivot - 1.2892

WS1 - 1.2811

WS2 - 1.2658

WS3 - 1.2571

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. The key long-term technical resistance is still seen at the level of 1.3518. Only if one of these levels is clearly violated, the main trend might reverse (1.3518 is the reversal level) or accelerate towards the key long-term technical support is seen at the level of 1.1903 (1.2589 is the key technical support for this scenario).

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

Technical Analysis of EUR/USD for October 6, 2020

Technical Market Outlook:

The EUR/USD pair has moved higher towards the level of 1.1790 and made a new local high at the level of 1.1798. The target for bulls is seen at the level of 1.1822, which is a 61% Fibonacci retracement on the weekly time frame. Please notice, the market conditions are overbought again despite the strong and positive momentum, so the pull-back is coming soon. The nearest technical support is seen at the level of 1.1752. The weekly time frame trend remains up.

Weekly Pivot Points:

WR3 - 1.1938

WR2 - 1.1852

WR1 - 1.1782

Weekly Pivot - 1.1691

WS1 - 1.1632

WS2 - 1.1548

WS3 - 1.1473

Trading Recommendations:

Since the middle of March 2020 the main trend is on EUR/USD pair has been 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. Nevertheless, weekly chart is recently showing some weakness in form of a several Pin Bar candlestick patterns at the recent top. This means any corrections should be used to buy the dips until the key technical support is broken. 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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Elliott wave analysis of GBP/JPY for October 6, 2020

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GBP/JPY has moved above key resistance at 136.66. It appears the pair has resumed an upward movement towards at least 138.34 and possibly even closer to 140.77. Red wave iii gains upside momentum. In the short-term, we could see a temporary pause and test of the former key-resistance at 136.66 and maybe even a slight dip just below before a significant rise towards the next upside target at 138.34.

It will take an unexpected break below 135.05 to invalidate our immediate bullish outlook.

R3: 138.34

R2: 137.73

R1: 137.44

Pivot: 137.15

S1: 136.84

S2: 138.66

S3: 136.37

Trading recommendation:

We are long GBP from 135.27 ((133.51+137.02)/2 = 135.27) and we have placed our stop at 135.00

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

Elliott wave analysis of EUR/JPY for October 6, 2020

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EUR/JPY climbed up which supports our outlook for wave iii being in motion. We are currently looking for minor support at 124.39 to be able to protect the downside for more upside pressure towards minor resistance at 124.87 where a sideways consolidation is expected before the next push higher towards at least 126.03. Ultimately we expect the ongoing rally to push through the former peak at 127.02 as wave 3/ gain upside momentum.

R3: 125.26

R2: 124.86

R1: 124.69

Pivot: 124.39

S1: 124.29

S2: 124.04

S3: 123.70

Trading recommendation:

We are long EUR from 123.10 ((122.95+123.25)/2 = 123.10) and we will move our stop higher to 123.45.

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

Analytics and trading signals for beginners. How to trade EUR/USD on October 6? Plan for opening and closing trades on Tuesday

Hourly chart of the EUR/USD pair

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The EUR/USD pair managed to slightly retreat last Monday night but almost immediately went back to moving up. Therefore, it turns out that there was no normal correction, and the MACD indicator failed to discharge. We said last night that in order to open new long positions, it is necessary for the MACD indicator to ease to zero. Now novice traders can observe what can happen if the MACD indicator does not have time to discharge: the price went back to moving up and the indicator continues to decline. Thus, in this situation there is only one way out, to wait for a new round of corrective movement to the upward trend line, and then - for a new buy signal to appear. Novice traders who wish to sell the pair should wait until we have gone beyond the trendline, which was recently rebuilt and currently supports the upward trend again.

The fundamental background for the dollar remains rather difficult. Meanwhile, it is rather neutral for the euro. Some macroeconomic indicators from the European Union leave much to be desired (especially inflation), and there have also been problems recently with the distribution of the Economic Recovery Fund worth 750 billion euros, which was formed a couple of months ago. However, we do not believe that these are such serious problems for the eurozone and the euro. In the end, European officials will figure out how to distribute money between the EU countries, especially since this program will only start working in 2021. But, in our humble opinion. everything remains much worse and more complicated in the US. First, as we have already mentioned, US President Donald Trump's diagnosis, which only adds uncertainty to the future of the US economy and the country itself. Secondly, the American economy contracted in the second quarter by much more than the European one. Thirdly, the second wave of COVID-2019 began only a couple of weeks ago in the European Union, and even then not in all countries, but the first wave has not even ended yet in the United States. And of course, the upcoming elections, which only adds uncertainty. Therefore, no one is talking about long-term buy positions on the dollar, the greenback can only count on short periods of strengthening, and even then corrective ones. Federal Reserve Chairman Jerome Powell and European Central Bank President Christine Lagarde will both deliver speeches today. Perhaps both the top economists and bankers of the US and the EU will disclose something important. It will depend on how traders react or whether they would react at all.

Possible scenarios for October 6:

1) Buy positions on the EUR/USD pair remain relevant at the moment, since we rebuilt the upward trend line, and the price also failed to gain a foothold below the 1.1696 level. Thus, we recommend novice traders to trade up with targets at the resistance levels 1.1819 and 1.1854. But in order to open new buy orders, we recommend waiting for the correction and a new signal from MACD.

2) Sell positions may become relevant again if the pair settles below the trend line. Depending on when this consolidation occurs, it may also need to overcome the 1.1696 level, which was the lower border of the horizontal channel for a long time, and did not let the pair down on September 30 and October 2. Take note that the dollar is reluctant to rise in price, and the fundamental background is not in its favor.

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 (10,20,3) 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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The Central European Bank supports the growth of the Euro

After forming a small accumulation zone, the Euro continued to grow rapidly against the US Dollar and other currencies. This makes it possible to hold a long position. Any downward movement of the pair will allow you to re-enter purchases at more favorable prices. The nearest target for the current growth phase is 1.1830. The probability of reaching this mark is at 75%. When the goal is reached, you must fully or partially exit the position. This will allow you to record purchases at a favorable price.

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Areas of the Central Bank where liquidity increase is likely to be used to fix transactions. The probability of continuing growth after the next test of the zone without correction is below 30%, so we should expect the formation of a downward model in the second half of this week. This movement will be corrective, so sales can only be considered as a short-term investment with a quick fix within the average daily course.

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The Bank of England restrained the fall of pound

The GBP/USD pair is fixed above the Bank liquidity zone today, indicating that the Central Bank supports the growth of the British pound. Tomorrow, a new banking zone will be formed after the distribution of the tender for open market operations. This will allow us to consider support for further growth or the level at which the accumulation zone will begin to form.

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Work in the upward direction is impulsive, so holding purchases opened in the banking zone is the main tactic. New purchases should be opened if the price remains above the 1.2970 level today. This will allow us to talk about the formation of a new support zone from the Central Bank.

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Forecast for EUR/USD on October 6, 2020

EUR/USD

The euro started the new week with a steady growth, yesterday's rise was 68 points, the price overcame the signal level of 1.1754 and there is a possibility of the MACD line reaching the 1.1895 area on the daily chart.

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The signal line of the Marlin oscillator has entered the growth trend zone. Overcoming this resistance will lead to growth to the upper border of the price channel at 1.1975, but so far there are no prerequisites for this, we still consider the ongoing growth from the decline from September 1 as corrective. We do not even exclude a variant with a false breakout of the signal level (1.1754), due to the only insignificant exit of Marlin into the growth zone and there might be a reversal from the border of the neutral line. Therefore, we recommend that you be extremely careful with your longs. Selling is possible after the price settles below the signal level. Target levels are indicated on the chart: 1.1650, 1.1550.

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Forming a price divergence with the oscillator is starting to take place on the four-hour chart. Since investors are strongly interested in buy positions, we might not complete the divergence and Marlin will continue to grow, but weak buying tendencies may strengthen the formation and a price reversal in the next day. We are waiting for the development of events.

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Forecast for AUD/USD on October 6, 2020

AUD/USD

The Australian dollar grew yesterday due to general market interest in risk, and it gained 18 points. It stopped growing due to the resistance of the extremes on September 9, August 13 and other days in the past. The aussie is trying to overcome this level again this morning. Pushing the price above the high on October 1 (0.7210), may bring the aussie to the target level of 0.7270. A price slowdown with a breakout of the signal level will cause the Marlin oscillator to reach the border of the growth area and a reverse from it, then the probability of a price reversal will increase.

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The price is in the range between the target level of 0.7190 and the signal level of 0.7210 on the four-hour chart, while Marlin is trying to go into the negative zone, after which the pressure on the price will increase. This is the first sign that prices will not rise to 0.7270, but this is only the first and weakest sign. To strengthen the reversal, the price needs to settle below the lower signal level of 0.7132, and then go below the MACD line. The price has a lot to do, so we just have to wait for the development of events.

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Forecast for USD/JPY on October 6, 2020

USD/JPY

Yesterday's rapid growth in stock indices caused the USD/JPY pair to grow by 43 points. There is not much left for the price to reach the first target level of 105.95, set by the MACD line on the daily chart. The Marlin oscillator has only slightly deepened into the growth zone, so we expect the price to successfully overcome the first target level and expect succeeding growth to the embedded line of the price channel in the 106.35 area. Leaving the area which is above the second target opens the third at 106.96, the high on August 28.

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The price is above the balance (red) and MACD (blue) indicator lines on the four-hour chart. Marlin is in the positive zone. The short-term trend is correspondingly increasing.

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Hot forecast and trading signals for the GBP/USD on October 6. COT report. Pound is struggling to grow due to Trump's illness

GBP/USD 1H

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The GBP/USD pair continued to trade within the ascending channel on October 5, which was slightly rebuilt by us. Now it has a smaller slope, but the British pound sterling is still very reluctant to rise in price. Thus, the upward movement continues, but it is difficult to say how long it will last. The problem is the fundamental background, which is equally bad in the US and in the UK. Traders could change their mood to the opposite at any moment, and the pair was generally "stormy" at the end of last week. Therefore, while the initiative remains in the hands of buyers, you can consolidate the price below the ascending channel, which may provoke a renewed downward movement.

GBP/USD 15M

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The linear regression channels are directed upward on the 15-minute timeframe, which fully supports the trend of the hourly timeframe and indicates that there are no signs of starting a correction. The latest Commitments of Traders (COT) report for the British pound showed that non-commercial traders started to open high-volume sell contracts. In total, 12,000 Sell-contracts (shorts) were opened from September 23-29. At the same time, the "non-commercial" group of traders also closed around 4,000 Buy-contracts (longs). That is, the net position for this category of traders suddenly decreased by 16,000, which is a lot for the pound, given that there are about 100,000 contracts open at this time. The sentiment of non-commercial traders has become much more bearish. However, the pound only rose in price from September 23-29. It did not grow much, only 140 points, and continues to move up, very uncertainly if I may add. We tend to think that the pound will resume falling in the near future (based on the latest COT reports).

The UK Services PMI was released on Monday, October 5. However, this report is not important, and besides that, it did not particularly impress traders. Business activity rose to 56.1 points. There were no other important economic events in Great Britain yesterday. Federal Reserve Chairman Jerome Powell will deliver a speech today, we recommend not to miss this event, and we also have European Central Bank President Christine Lagarde's speech in the EU. These are potentially significant events, but everything will depend on what the heads of the central bank will say. We would say that the markets currently attach much more importance to US President Donald Trump's illness than to various economic news and reports. As for the UK, Brexit and the one-month-long negotiations on a trade deal remain in first place. Thus, we advise traders to pay more attention to the general fundamental background at this time, and not to single macroeconomic reports.

We have two trading ideas for October 6:

1) Buyers continue to push the pair upward and remain inside the ascending channel. Thus, it is recommended to stay in long positions while aiming for the resistance area of 1.3004-1.3024 and the 1.3114 level as long as the pair remains above the Kijun-sen line (1.2899) and within the channel. Take Profit in this case will be from 30 to 130 points. The fundamental background is simultaneously bad for both the pound and the dollar.

2) Sellers failed to seize the initiative in the market several times, although the attempts were solid. Now they need to wait until the price settles below the Kijun-sen line (1.2831) and under the ascending channel and only after that should you resume trading downward while aiming for the Senkou Span B line (1.2836), support level 1.2794 and support area of 1.2636-1.2660. Take Profit in this case can range from 40 to 200 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 the EUR/USD on October 6. COT report. Buyers lead the pair to new heights again

EUR/USD 1H

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The euro/dollar pair, quite unexpectedly for many, resumed its upward movement on the hourly timeframe on October 5, after trading flat just a few days before. Nevertheless, the bulls found the strength to start buying the pair again, which caused the euro to grow. The first resistance level for this week has been reached, the ascending trend line, below which there was a consolidation prior, has been rebuilt and now provides support to the bull traders. Thus, the price broke out of the 1.1683-1.1756 area, in which there was a rare accumulation of various lines and resistances, which significantly increases the likelihood of forming an upward trend. Which, by the way, is much more likely from a fundamental point of view.

EUR/USD 15M

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Both linear regression channels turned to the upside on the 15-minute timeframe, which clearly reflects the resumption of the upward trend on the higher timeframe. The euro/dollar rose in price by around 30 or 40 points during the last reporting week (September 23-29). We cannot even call it growth, just a normal market noise. The previous Commitment of Traders (COT) report showed that non-commercial traders opened 15,500 new Buy-contracts (longs) and almost 6,000 Sell-contracts (shorts). Thus, the net position for this group of traders increased by around 9,000. The new report clearly reflects what is currently happening in the foreign exchange market. Professional traders closed 4,500 contracts for buy positions on the euro and 3,300 contracts for sell positions during the reporting week. That is, the net position for the "non-commercial" group has decreased by around a thousand contracts, which means that the mood of large traders has become a little more bearish. However, these are not changes that can be acknowledged as global. Therefore, we conclude that the situation has not changed dramatically. The EUR/USD pair generally stood in one place for the next three trading days (after September 29). Therefore, the next COT report may also show minimal changes in the mood of professional traders.

The European Union published an index of business activity in the services sector for September. Despite the fact that its value remained below 50.0, the European currency was still rising in price against the dollar during the day. This means that this report was also ignored following much more important reports on inflation in the EU and NonFarm Payrolls in the US on Friday. Retail sales in the EU in August grew by 3.7% in annual terms and 4.4% in monthly terms. And take note that this report could have provoked the euro's growth, since it began approximately at the time of its release. As for the important ISM index of business activity in the US services sector, it rose even more in September and reached 57.8 points. However, the dollar did not strengthen in the afternoon. Thus, it turns out that traders have worked out the report on retail sales in the EU, but ignored the reports on business activity in the EU and the US. It is rather difficult to believe in such selectivity, so we conclude that all macroeconomic data were ignored on Monday.

We have two trading ideas for October 6:

1) Buyers have the initiative in the market once again and managed to get the pair out of the 1.1683-1.1756 horizontal channel. Thus, traders are encouraged to continue to trade upward with targets at the resistance levels of 1.1786 and 1.1855. A downward correction may begin now, since the first target was not overcome. But the upward trend persists above the trend line. Take Profit in this case will be up to 70 points.

2) Bears have finally released the market from their hands, but may return the downward trend if they manage to get the pair to settle below the upward trend line. In this case, we recommend opening new short positions with the target at 1.1631. In this case, the potential Take Profit is up to 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. October 6. The European Union was saved from the onslaught and pressure of Boris Johnson. The

4-hour timeframe

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Technical data:

Senior channel of linear regression: direction – up.

Junior channel of linear regression: downward direction.

Moving average (20; smoothed) - upward.

CCI: 151.2681

On Monday, October 5, the British pound continued to trade with minimal upward bias. Formally, the upward trend for the pound/dollar pair remains, since the price is still consistently above the moving average line. However, we still consider the pound sterling to be the weakest currency on the market at this time. And its strengthening in recent days raises many questions. Yes, no currency can rise or fall forever. And since the beginning of September, the pound has fallen by 8 cents. Thus, it is possible that now we are just seeing a correction, after which the downward movement will resume. Moreover, we have repeatedly talked about the level of 1.3000, which is a psychologically important level and which may not let the pair go further up. Therefore, despite the fact that the upward trend is still maintained, we still believe that there is more chance of a new fall in the pound.

The European Union has gone back on its word. This is how you can describe what is happening now between London and Brussels. Recall that the European Union has taken a tough position on the "Johnson bill", which violates the principles of international law and the existing agreement with the EU on Brexit. The European Union behaved as it should in a situation where agreements are changed unilaterally – it threatened legal proceedings. London did not meet them halfway and the Parliament approved the "Johnson bill". In addition, the eighth and ninth rounds of negotiations on a trade deal also did not bring any success. Thus, this weekend was scheduled for a conversation between the head of the European Commission Ursula von der Leyen and British Prime Minister Boris Johnson. Two high-ranking officials were supposed to discuss the situation and try to find a way out of it. Earlier, Boris Johnson repeatedly stated that the deadline for negotiations with the EU is October 15. However, just as last year, when Boris Johnson punched himself in the chest and declared that "I'd rather die in a ditch than postpone Brexit to a later date" when it was necessary, the Prime Minister easily forgot about all his previous statements and moved the deadline a month ahead. What exactly the head of the European Commission and the British Prime Minister said is unknown. The parties agreed to continue negotiations, but immediately everyone had one question: what is the point? London and Brussels could not agree on a deal in 6 months. At the same time, neither London nor Brussels clearly showed excessive zeal in the negotiations. No one wanted to give in on key issues and, in fact, these issues remain unresolved to this day. Thus, it seems that we are waiting for an additional month of unsuccessful negotiations, which both sides will spend simply on throwing the ball to the other half of the field.

And it is not at all clear what will happen now with the trial, which the European Union seems to have already initiated. Will it be paused? How is Brussels going to continue to negotiate with London, if the British Parliament has already approved the "Johnson bill"? So Brussels suddenly stopped abruptly condemning Britain for its "internal market" bill? And if the parties fail to reach an agreement on a trade agreement, will the legal proceedings resume? In general, to be honest, the whole situation with Brexit before was very similar to the TV series "Santa Barbara".

Well, who really wants to listen to in this situation is the most honest, direct, and frank Michel Barnier, who clearly sums up the results after each round of negotiations, without any fantasies and dreams. At the end of the ninth round of negotiations, Barnier noted minimal progress towards an agreement, noted "positive evolution", but also said that serious differences on all key issues remain in force. Michel Barnier believes that the future partnership between the UK and the EU should be based on absolutely clear and transparent rules. This concerns compliance with various standards, fair and healthy competition, a fair judicial system, and other issues. Barnier also noted that the EU still believes that European fishermen should have access to British waters. Also, the chief negotiator from the Kingdom believes that the protocol on the Northern Irish border should be implemented by London, otherwise it will be extremely difficult to conclude a deal. Such is the case in the British Kingdom.

Well, for the pound, all this news does not mean anything good. At this time, the British currency continues to grow moderately, but at any time it can resume falling. Yes, the recent events described above give hope that the parties will still be able to agree on a deal. Or at least they give extra time for a miracle to happen. Thus, in the coming month, the pound may even show moderate growth, especially against the background of everything that is happening now in the United States. However, in general, we believe that it is the UK currency that remains the weakest and with the worst prospects. Moreover, the second "wave" of the "coronavirus" has begun in the UK. On October 4, 23 thousand new cases of the disease were registered. For a second, at the peak of the first "wave", no more than 5.5 thousand cases were registered daily. Thus, the second "wave" of the pandemic may not even be twice as strong as the first, but several times stronger. And its negative impact on the British economy may be much larger than in the second quarter.

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The average volatility of the GBP/USD pair is currently 117 points per day. For the pound/dollar pair, this value is "high". On Tuesday, October 6, therefore, we expect movement inside the channel, limited by the levels of 1.2859 and 1.3093. A new reversal of the Heiken Ashi indicator downwards signals a new round of corrective movement.

Nearest support levels:

S1 – 1.2970

S2 – 1.2939

S3 – 1.2909

Nearest resistance levels:

R1 – 1.3000

Trading recommendations:

The GBP/USD pair on the 4-hour timeframe hardly continues its upward movement, bouncing off the moving average line once again. Thus, today it is recommended to stay in the longs with the goals of 1.3000 and 1.3093 as long as the Heiken Ashi indicator is directed upwards. It is recommended to trade the pair down with targets of 1.2817 and 1.2756 if the price returns to the area below the moving average line.

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Overview of the EUR/USD pair. October 6. Donald Trump's illness further lowers his chances of re-election.

4-hour timeframe

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Technical details:

Higher linear regression channel: direction - upward.

Lower linear regression channel: direction - downward.

Moving average (20; smoothed) - upward.

CCI: 185.8802

On Monday, October 5, the European currency resumed its upward movement, bouncing off from the moving average line. Thus, the position of the US currency at this time remains extremely weak. It should only be noted that after the growth of 1300 points, traders did not manage to correct the pair properly. At the moment, the correction is no more than 400 points. On the one hand, of course, this is quite a lot, on the other hand, the correction shows that the upward movement should resume, so traders can expect quotes to leave above the previous local maximum of $ 1.20. At the same time, it should be noted that in the last three months, the pair is in the closest possible movement to the definition of "flat". This point should be taken into account in long-term trading.

Meanwhile, in the US, all attention is focused on Donald Trump, who at the end of last week announced that he and his wife Melania had contracted the "coronavirus". Donald Trump even needed to be hospitalized, although his condition was not considered serious. This was followed by information that Trump is being treated with fairly strong drug dexamethasone, which is prescribed only to patients with a very severe form of the disease. However, despite the fact that Trump is in the hospital for only a couple of days, today or tomorrow, according to some journalists, the US President may return to the White House. Trump's attending physician, Sean Conley, said Trump's condition is improving. At the same time, Donald did not miss the opportunity to drive around the hospital in a car, accompanied by a whole retinue, to greet his supporters. What is the true state of Trump, if his doctor calmly lets the patient go outside, is unknown. Maybe Trump is not really sick? Moreover, how can they return to their duties in the next few days if they must be isolated for at least 14 days? Or will the entire White House be evacuated? Or will the entire White House wear chemical protection suits and gas masks? In general, it is absolutely unclear where the truth is and where the lie is.

Meanwhile, in the States, polls continue to be conducted almost every day. As we have repeatedly stated, the largest and most reliable polls of Americans continue to show that Donald Trump lags behind Joe Biden by about 8-10%. This time, the poll was conducted by the respected Reuters news agency and its results showed that 51% of respondents are ready to vote for Biden right now, and 41% for Trump. Also, 55% of respondents said they don't believe Trump when he talks about "coronavirus". Therefore, as we said earlier, the President's ratings simply had nothing to grow on in recent months. Trump did not fight the "coronavirus" from the very beginning, did not take any additional measures when the epidemic was in full swing, and his sacramental statement that "the consequences of the fall of the economy can be even more devastating than the consequences of COVID-2019" shows that Trump is more concerned about the economy, and not the lives and health of his nation. In the end, Trump himself was infected with the "coronavirus" and now it is unknown when he will return to his duties. Meanwhile, the election is less than a month away. For sure, Trump was going to spend this month trying to narrow the gap as much as possible from his opponent from the Democratic party. For example, by holding rallies and speeches in the most controversial states and cities in the United States. However, it is now completely unclear how Donald's election campaign will proceed.

Other news on Monday was not available to traders, except for a few macroeconomic publications, which are still not taken into account at this time by market participants. The euro is getting more expensive again because there are a number of reasons for this. We still believe that the country is facing a serious political crisis, which has now eclipsed even the economic and epidemiological crises. The level of uncertainty about the future of the country and its economy is off the scale. Thus, market participants simply do not risk buying the US dollar, especially in the long term.

The topic of elections deserves a separate article every day. TV debates that took place recently showed that the level of civility of both presidential candidates tends to zero. Donald Trump showed himself entirely familiar with the parties. Constantly interrupted the opponent and the host. And this is not a debate in a third-world country. For a moment, we are talking about a country with the world's largest economy. However, this is the American reality in 2020.

Another important issue that needs to be resolved in the near future is the appointment of a judge to the Supreme Court in place of the untimely deceased Ruth Ginsburg. Recall that Trump was very much in a hurry to nominate his candidate for this position, and he had every reason to expect that the Senate would approve him. And then, Trump would get the necessary advantage in the US Supreme Court. And he needs this advantage because the elections can smoothly move from the polling stations to the court. And then it will depend on the judges whether a recount of votes in a particular state will be allowed, whether the elections will be recognized as legitimate, no matter who wins them. In general, the situation is absolutely non-standard and sometimes even absurd.

In such conditions, there is no reason for the US currency to become more expensive. From a technical point of view, a new upward trend has been formed, which is not yet strong. Thus, the rise in the price of the euro currency in principle looks very logical in recent months.

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The volatility of the euro/dollar currency pair as of October 6 is 71 points and is characterized as "average". Thus, we expect the pair to move today between the levels of 1.1707 and 1.1849. A reversal of the Heiken Ashi indicator back down may signal a new round of corrective movement.

Nearest support levels:

S1 – 1.1719

S2 – 1.1658

S3 – 1.1597

Nearest resistance levels:

R1 – 1.1780

R2 – 1.1841

R3 – 1.1902

Trading recommendations:

The EUR/USD pair continues to be located above the moving average line. Thus, today it is recommended to continue to stay in long positions with a target of 1.1841 until the Heiken Ashi indicator turns down. It is recommended to consider sell orders again if the pair is fixed back below the moving average with the first target of 1.1658.

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