Bitcoin analysis for 20/09/2017

By | September 20, 2017

Bitcoin analysis for 20/09/2017: Professor Yang Dong, the lecturer at the Chinese University of Renmin, in an interview for CCTV, publicized the reasons the Bitcoin prohibits just recently occurred in China. The very first factor is an absence of proper licenses. At present, Chinese cryptocurrency exchanges do not have the power to obtain a banking license, so they operate beyond the legal system. According to the researcher, this positions a considerable company threat The second factor is the Bitcoin functional model. Dong claims, that the system of restricting the Bitcoin amount using a specific code is “controversial”. In addition, he worries the issue caused by the high volatility of Bitcoin. The third reason is a high possibility of fraud and cash laundering chances utilized by bad guys. The 4th factor is market adjustment possibilities that can be used by “whales” (financiers, who operate countless Dollars, are influencing Bitcoin’s cost, for instance, greatly hitting its course in a brief time). The 5th factor is security problems, as when it comes to insufficient security, hackers can get to the resources and information of cryptoanalysts leading to permanent losses. The last reason talked about by the teacher is the darknet market. Considering that they do not utilize loan laundering or client identification laws, the government can not effectively control this area. In conclusion, a well-spotted factor for which the federal government regulation is needed not only in China, however all over the world as the rise in popularity of cryptocurrencies is now very high and it does not look it will end soon.

Let’s now have a look at the Bitcoin technical photo on the H4 amount of time. So far just a three-wave up relocation was made from the lows at the level of $2,965, so this progression looks more like a part of a wave B than a brand-new, strong impulsive wave to the benefit. Any breakout listed below the level of $3,452 will instantly expose the recent lows for a test (and possible breakout) and the spontaneous upwards scenario will be invalidated.

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Technical analysis of USD/CHF for September 20, 2017 888011000 110888 Overview: The USD/CHF set is still trading around the area of 0.9580-0.9679. The USD/CHF pair broke resistance which turned to strong support at the level of 0.9580 (significant assistance). The level of 0.9580 accompanies a golden ratio( 61.8 %of Fibonacci), which is anticipated to function as major assistance today. The Relative Strength Index (RSI )is considered overbought due to the fact that it is above 30. The RSI is still signifying that the pattern is up as it is still strong above the moving average( 100 ). This recommends the set will most likely go up in coming hours. Appropriately, the market is likely to reveal indications of a bullish trend. In other words, buy orders are suggested above the spot of 0.9624 with the very first target at the level of 0.9679. From this point, the set is likely to start a rising movement to the point of 0.9679 and even more to the level of 0.9710. The level of 0.9710 will serve as strong resistance and the double top is already set at the point of 0.9710. Nevertheless, if a breakout happens at the support level of 0.9580, then this circumstance might become revoked. Remember to position a stop loss; it needs to be set listed below the 2nd support of 0.9549. The material has been supplied by InstaForex Business-www.instaforex.com

By | September 20, 2017

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Overview:

  • The USD/CHF pair is still trading around the area of 0.9580-0.9679. The USD/CHF pair broke resistance which turned to strong support at the level of 0.9580 (major support). The level of 0.9580 coincides with a golden ratio (61.8% of Fibonacci), which is expected to act as major support today. The Relative Strength Index (RSI) is considered overbought because it is above 30. The RSI is still signaling that the trend is upward as it is still strong above the moving average (100). This suggests the pair will probably go up in coming hours.
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  • Accordingly, the market is likely to show signs of a bullish trend. In other words, buy orders are recommended above the spot of 0.9624 with the first target at the level of 0.9679. From this point, the pair is likely to begin an ascending movement to the point of 0.9679 and further to the level of 0.9710. The level of 0.9710 will act as strong resistance and the double top is already set at the point of 0.9710. However, if a breakout takes place at the support level of 0.9580, then this scenario may become invalidated. Remember to place a stop loss; it should be set below the second support of 0.9549.

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NZ Dollar Pulls away As Asian Stock Markets Traded Lower

By | September 20, 2017

The New Zealand dollar retreated from early highs versus other significant currencies in the Asian session on Wednesday, as Asian stock markets traded lower. This was due to investors position on embracing a mindful stance ahead of the United States Federal Reserve’s monetary policy decision due later on in the day.

While the Fed is commonly anticipated to leave rate of interest unchanged, traders are likely to pay attention to the accompanying statement for clues about the outlook for policy, including information of how the reserve bank plans to start diminishing its $4.5 trillion balance sheet.

Traders likewise wait for the most recent New Zealand political viewpoint survey ahead of Saturday’s general election and the Bank of Japan’s two-day meeting that begin today.

In other financial news, information from Statistics New Zealand revealed that New Zealand posted a seasonally changed bank account deficit of NZ$ 1.598 billion in the second quarter of 2017. That follows the NZ$ 2.2.85 billion deficiency in the 3 months prior.

On a yearly basis, New Zealand’s bank account deficit was NZ$ 7.5 billion.

In the Asian trading, the NZ dollar was up to 81.40 against the yen and 1.0978 versus the Australian dollar, from an early more than a 6-week high of 81.86 and a 4-week high of 1.0921, respectively. If the kiwi extends its downtrend, it is likely to find support around 79.00 versus the yen and 1.11 versus the aussie.

Against the United States dollar and the euro, the kiwi dropped to 0.7303 and 1.6439 from an early 2-day highs of 0.7342 and 1.6349, respectively. The kiwi may test support near 0.72 against the greenback and 1.66 versus the euro.

Looking ahead, U.K. retail sales data for August is because of be launched at 4:30 am ET.

In the New York session, U.S. existing home sales information for August and petroleum stocks information are slated for release.

At 2:00 pm ET, the Federal Reserve will reveal its decision on monetary policy. The Fed is expected to hold rates at 1.25 percent.

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Australian Dollar Enhances Versus The majority of Majors

By | September 20, 2017

The Australian dollar climbed up versus many major equivalents in pre-European deals on Wednesday.

The aussie that closed Tuesday’s trading at 0.8010 against the greenback and 89.38 versus the yen firmed to an 8-day high of 0.8048 and a 21-month high of 89.67, respectively.

The aussie innovative to a 2-day high of 1.4914 versus the euro and a 2-week high of 0.9878 against the loonie, from Tuesday’s closing values of 1.4971 and 0.9844, respectively.

The next possible resistance for the aussie is seen around 0.825 versus the greenback, 90.5 against the yen, 1.48 against the euro and 1.00 versus the loonie.

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Trading prepare for 20/09/2017

By | September 20, 2017

Trading prepare for 20/09/2017: The forex market volatility is presently very minimal as market participants wait for FOMC statement tonight. The USD is somewhat weaker throughout Asian trade, nevertheless, it looks like cosmetic alignment prior to the evening occasions. The EUR/USD set hardly swings above 1.20, and USD/JPY drops below 111.50 after two not successful attempts to break out above 111.80. The stock market likewise preserves yesterday’s range and Crude Oil continues to stand in location. Gold benefits from halting the USD uptrend and managed to rebound from $1,305 level. Now it is at$1,313, but the future instructions will be heavily based on the FOMC choice on the US debt market and the Dollar.On Wednesday 20th of September, the event calendar will get hectic with crucial press release throughout the late United States session, when the FOMC announces its rate of interest choice, statement and financial projections. Throughout the London session, the information to be launched are German PPI Index and Retail Sales

With Automobile Fuel from the UK.US Dollar Index analysis for 20/09/2017: The FOMC rate of interest choice, statement and financial forecast are arranged for release at 06:00 pm GMT. The FOMC interview starts at 08:30 pm GMT. Market individuals do not anticipate any interest rate hike from 1.25% level this month, as the majority of global financiers anticipate a possible rate trek in December just.

The theme of the September FOMC meeting is to start the procedure of minimizing the balance sheet total. When in 2014 the Fed closed the 3rd round of quantitative easing (QE3), its balance swelled to about 4.5 trillion Dollars. The Fed reinvested the funds from the mature debt instruments, so its balance did not shrink. But now the Fed wants to change that and today the regulator must present a decision to start decreasing most likely from next month. Nevertheless, the Fed has started to prepare investors for a decrease of the balance sheet numerous months back, and now the real launch of the program will not have a considerable influence on the market. It will be more important how the members of the committee see the potential customers of the rate of interest path and how the distribution of forecasts for individual members will look -so-called dot plot. There is currently prevalent disagreement between market expectations and recent FOMC forecasts. In June, the average expectations of the committee members indicated one more hike by the end of 2017 and another 3 in 2018. The market is presently marking down a little over 50 %opportunity for a hike in December 2017, and by the end of 2018- a total of one and a half boosts. The factor behind this viewpoint is a more comprehensive view of decision-makers on the economic circumstance. Fuel for market skepticism has been a dissatisfaction in the inflation trend in recent months -five inflation readings approximately the August were way below market expectations, just the September reading was close to 1.9%(Fed’s predicted target is 2.0 %by the end of the year). On the other hand, the other sectors of the United States economy are in favor of the financial policy normalization. The 2nd quarter brought GDP development of 3 %with a strong mindset of private intake and financial investment development. The existing quarter will definitely bring about a downturn due to damage brought on by cyclones, however everything will be reconstructed in succeeding durations(repair). The labor market situation remains in line with Fed expectations, and the slowdown of employment is a natural phenomenon at this stage of the cycle. And last, but not least, there are positive signals from Washington concerning the Trump administration financial reform that might discover assistance in Congress’s financial strategies. The irreversible outcome of the FOMC meeting may be the fact that, despite all the negative macroeconomic factors on which the market has been focusing, the Fed has not altered its attitude considering that the June conference and wants to continue normalizing its financial policy at a fixed pace.Let’s now take a look at the US Dollar Index technical image on the H4 timespan. The market volatility is restricted and the is cost is staying in a narrow range between the levels of 91.62-92.10. Only a sustained breakout above the golden trend line might set off some larger bounce in the index and perhaps even a reversal. Nevertheless, the crucial level for bulls to take the control over this market is the zone between 93.35-93.65 levels.

Otherwise, the sag will continue. Market Picture: AUD/USD at the resistance zone The price of AUD/USD tests resistance at 0.8050(local highs from 12-13 September ). It deserves to await the course to continue. A clear breakout above this level will open the way to the highs of 8 September at around 0.8125. In case of a rebound, support is the 38 %Fibo at 0.8005 and 61.8%analytics59c21d5bc9965.jpg

Fibo at 0.7980. Market Photo: Petroleum consolidating gains The price of Crude Oil rebounded from the lower debt consolidation band at $49.40. Far there is no dominance of any of the market sides (supply/demand), however the option may come when the Stock Data will be published. The short-term target for bulls will be the ceiling of combination at $50.40. In case of a breakout, the next technical resistance is seen at$51.75(external Fibo 127.2 %), while technical assistance is seen at the level of $49.17. The material has actually been provided by InstaForex Business-www.instaforex.com

Dollar Lower After U.S. Economic Data; Fed Decision Awaited

By | September 19, 2017

The U.S. dollar was lower against its most major opponents in the European session on Tuesday, following the release of mixed reports on U.S. housing and import and export price indices for August. Investors focus on a two-day Federal Reserve meeting beginning today for more clarity about the likelihood of a rate hike in December.

Data from the Commerce Department showed that new residential construction in the U.S. unexpectedly decreased in August.

The report said housing starts fell by 0.8 percent to an annual rate of 1.180 million in August from a revised 1.190 million in July. Economists had expected housing starts to jump by 1.7 percent.

Data from the Labor Department showed increases in U.S. import and export prices in the month of August.

The Labor Department said imports prices climbed by 0.6 percent in August after edging down by 0.1 percent in July. Economists had expected import prices to rise by 0.4 percent.

The report said export prices also rose by 0.6 percent in August following a 0.5 percent increase in the previous month. Export prices had been expected to edge up by 0.2 percent.

Economists widely expect the federal funds rate to be kept on hold when the Fed concludes meeting on Wednesday. The Fed will also release its latest Summary of Economic Projections, followed by a press conference from the Fed Chair Janet Yellen.

The central bank is expected to announce the start of a gradual reduction of the $4.5 trillion balance sheet, which it amassed through purchases of U.S. Treasury debts and mortgage-backed securities during the financial crisis.

Market participants also await the Fed’s plan regarding the future key interest rate path in the wake of slowing pace of inflation.

The currency has been trading in a negative territory in the Asian session, with the exception of the Japanese yen.

The greenback reversed from an early near a 2-month high of 111.88 against the Japanese yen, easing to 111.36. If the greenback-yen pair extends slide, 109.00 is possibly seen as its next support level.

The greenback retreated to 1.3537 against the pound, from a high of 1.3469 hit at 4:30 am ET. The next possible downside target for the greenback is seen around the 1.38 region.

The greenback eased back to 1.1993 versus the euro, after a brief recovery to 1.1954 early in the session. This may be compared to an 8-day low of 1.2006 hit at 3:00 am ET. The pair finished Monday’s deals at 1.1949.

Survey data from the Mannheim-based Centre for European Economic Research/ZEW showed that Germany’s economic confidence strengthened for the first time in four months in September as solid economic growth and increased investment lifted financial market experts’ optimism.

The ZEW Indicator of Economic Sentiment rose by a more-than-expected seven points to 17.0 in September. The reading was forecast to rise to 13.

The greenback edged down to 0.7317 against the kiwi and 0.8015 against the aussie, off its early highs of 0.7256 and 0.7955,respectively. Continuation of the greenback’s downtrend may see it challenging support around 0.74 against the kiwi and 0.82 against the aussie.

The greenback held steady against the loonie, after weakening to 1.2262 in early deals. The pair was valued at 1.2291 when it finished deals on Monday.

On the flip side, the greenback remained at an early 5-day peak of 0.9648 against the Swiss franc, after having dropped to 0.9595 at 2:30 am ET. On the upside, 0.97 is likely seen as the next resistance for the greenback-franc pair.

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Basic Analysis of AUD/USD for September 19, 2017 888011000 110888 AUD/USD has actually been making correctional relocations recently with bullish gains. The pair is currently expected to see some bearish pressure in the coming days. AUD has actually been quite weak at the start of the week however today it picked up speed against USD in the middle of favorable economic reports. Today, Australia’s HPI report was released at 1.9%, below the previous value of 2.2% which was anticipated to decrease to 1.2%. Though the report revealed an even worse outcome, it came out much better than anticipated, so the marketplace belief quickly turned bullish and supplied AUD with support. In addition, RBA Monetary Policy Fulfilling Minutes were also launched today where the regulator was quite favorable with the broad job market improvement and GDP growth by 3.0% that directly impacted the USD growth today, causing more corrective gains of AUD. On the other hand, today United States Building Allows report is going to be released which is anticipated to reveal a minor reduction to 1.22 M from the previous figure of 1.23 M, Bank account is expected to reveal a less deficit to -115 B from the previous figure of -117 B, Housing Starts are expected to increase to 1.17 M from the previous figure of 1.16 M, and Import Costs are expected to increase to 0.4% from the previous value of 0.1%. To sum up, United States information in the economic calendar today do not have better projections to search for but any much better than expected real outcome can help USD to gain momentum over AUD spontaneous gain today and result in more bearish pressure in the coming days.Now let uslook at the technical chart. The price is presently residing in a restorative rising channel which was about to break yesterday however the cost bounced off the support of the channel and pushed greater. As there are particular impactful news from the US en route today, an everyday close listed below the channel assistance will lead to bearish pressure in this couple with the target towards the assistance area of 0.7750-0.7830. As the rate stays listed below the resistance level of 0.80, the bearish predisposition is anticipated to continue further. The product has been offered by InstaForex Business-www.instaforex.com

By | September 19, 2017

AUD/USD has been making correctional moves recently with bullish gains. The pair is currently expected to see some bearish pressure in the coming days. AUD has been quite weak at the start of the week but today it gained ground against USD amid positive economic reports. Today, Australia’s HPI report was published at 1.9%, down from the previous value of 2.2% which was expected to decrease to 1.2%. Though the report revealed a worse result, it came out better than expected, so the market sentiment quickly turned bullish and provided AUD with support. Additionally, RBA Monetary Policy Meeting Minutes were also released today where the regulator was quite positive with the broad job market improvement and GDP growth by 3.0% that directly affected the USD growth today, leading to more corrective gains of AUD. On the other hand, today US Building Permits report is going to be published which is expected to show a slight decrease to 1.22M from the previous figure of 1.23M, Current Account is expected to show a less deficit to -115B from the previous figure of -117B, Housing Starts are expected to increase to 1.17M from the previous figure of 1.16M, and Import Prices are expected to increase to 0.4% from the previous value of 0.1%. To sum up, US data in the economic calendar today do not have better forecasts to look for but any better than expected actual result can help USD to gain momentum over AUD impulsive gain today and lead to further bearish pressure in the coming days.

Now let us look at the technical chart. The price is currently residing in a corrective rising channel which was about to break yesterday but the price bounced off the support of the channel and pushed higher. As there are certain impactful news from the US on the way today, a daily close below the channel support will lead to bearish pressure in this pair with the target towards the support area of 0.7750-0.7830. As the price remains below the resistance level of 0.80, the bearish bias is expected to continue further.

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