Category Archives: Quick Forex

Pound mayhem will not frighten

By | January 21, 2019

The British pound does not get tired of puzzling those who are watching him. If recently it was believed that the polar results in the form of a erratic or soft Brexit might lead the set GBP/ USD to 1.45 or 1.15, then in 2019, the increased probability of the 2nd situation, to the surprise of investors, triggered a five-week rally of the evaluated set. Naturally, the US dollar was deteriorating before our eyes, however the truth that the worth of sterling options with maturity dates is falling by the end of March suggests that there is no specific issue about Britain’s exit from the EU.

In my opinion, the successes of the pound are because of the increased opportunities of a 2nd referendum or the extension of the term of Article 50 of the European Union Code governing the withdrawal of any nation from its structure. Formerly, the date of the official divorce of Albion with the EU was considered March 29, however in truth, the term, at the request of London, can be changed. So, Britain will gain time to discover a compromise with Brussels or to hold a 2nd referendum and conserve its place in the European Union. Messy Brexit is not in fashion now, although it’s early to talk about enhancing the political landscape. If Theresa May’s Plan B ends up being really comparable to Strategy A and can not pass the Parliament, then the Laborites will have the chance for a second vote of no self-confidence. The defeat of the Prime Minister will increase the risks of early elections, increase the volatility of sterling and put pressure on the bull position on GBP/ USD.

The policy continues to hang like pounds on the legs of the fans of the pound, because, go back to the economy and to the markets of Albion, certainty, undervaluing sterling from an essential perspective would play into the hands of purchasers. The slowdown of British inflation in a strong labor market and the consistent growth of typical salaries results in an increase in real incomes of the population and develops requirements for the expansion of consumer activity and GDP.

The dynamics of typical wages and inflation in Britain

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At the very same time, the decrease of political risks will add to an increase in service activity and capital expense, which will have a favorable result on the economy in the future. Put simply, the pound has a very major covert capacity, and Goldman Sachs does not fruitless call him the present year’s preferred amongst G10 currencies. According to the bank, the pair GBP/ USD can increase to 1.36 within 12 months. Blomberg professionals believe that the sterling will be among the leading three entertainers after the Norwegian and Swedish crowns.

Certainly, the weakness of the United States dollar will not do. While the United States currency continues to support strong signs, consisting of commercial production, the USD index feels great. However, disabling the government, typically bad weather for this time of the year, and fading fiscal stimulus results will add to a boost in GBP/ USD.

Technically, the “bulls” in the evaluated set do not lose hope for the application of the target by 88.6% in the “Shark” pattern. A requirement for the continuation of the rally is to upgrade the January maximum.

GBP/ USD, the daily graph

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The product has been supplied by InstaForex Company – www.instaforex.com

Bitcoin analysis for January 21, 2019 888011000 110888 Bitcoin is expected to move lower towards $3,350 as long as it holds listed below the bearish trendline. The possible breakout of assistance at $3,480 will validate the next relocation lowertowards $3,350 and$3,100. I expect the price to relocate to the Pitchfork average line. Just a break above the resistance at$3,670 will negate the bearish view.Trading recommendation: We will sell Bitcoin at the breakout of support at$ 3,480 with take profit orders at$3,350 and$3,100. If position is activated, protective stop will be positioned at$3,670. The product has actually been supplied by InstaForex Business-www.instaforex.com

By | January 21, 2019

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Bitcoin is expected to move lower towards $3,350 as long as it holds below the bearish trendline. The potential breakout of support at $3,480 will confirm the next move lower towards $3,350 and $3,100. I expect the price to move to the Pitchfork median line. Only a break above the resistance at $3,670 will negate the bearish view.

Trading recommendation: We will sell Bitcoin at the breakout of support at $3,480 with take profit orders at $3,350 and $3,100. If position is triggered, protective stop will be placed at $3,670.

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

Intraday technical levels and trading suggestions for GBP/USD for January 21, 2019 888011000 110888 On December 12, the previously-dominating bearish momentum concerned an end when the GBP/USD set went to the cost levels of 1.2500 where the backside of the broken daily uptrend was located.Since then, the current bullish swing has been taking place. Recent bullish spike reached the price level of 1.2999 where considerable bearish rejection was shown(Bearish Engulfing candlestick around the down trend line). This probably pauses the bullish scenario for a while, enabling sometime for bearish correction towards 1.2800 where confluence of need levels as well as the H4 up-trend line concerned satisfy the pair.For the bullish circumstance to stay legitimate, bullish determination above the cost level of 1.2800 must be preserved on a daily basis. Bullish breakout above 1.3000 will be needed to boost more improvement towards 1.3130-1.3180. Otherwise, any decrease below 1.2800 invalidates the bullish scenario bringing the GBP/USD pair again into sideway combinations thatmight extend down towards 1.2710(Next need level to fulfill the pair). The material has been offered by InstaForex Business-www.instaforex.com

By | January 21, 2019

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On December 12, the previously-dominating bearish momentum came to an end when the GBP/USD pair visited the price levels of 1.2500 where the backside of the broken daily uptrend was located.

Since then, the current bullish swing has been taking place. Recent bullish spike reached the price level of 1.2999 where significant bearish rejection was demonstrated (Bearish Engulfing candlestick around the down trend line).

This probably pauses the bullish scenario for a while, allowing sometime for bearish correction towards 1.2800 where confluence of demand levels as well as the H4 up-trend line come to meet the pair.

For the bullish scenario to remain valid, bullish persistence above the price level of 1.2800 should be maintained on a daily basis. Bullish breakout above 1.3000 will be needed to enhance further advancement towards 1.3130-1.3180.

Otherwise, any decline below 1.2800 invalidates the bullish scenario bringing the GBP/USD pair again into sideway consolidations that may extend down towards 1.2710 (Next demand level to meet the pair).

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

Specialists expect the yen to strengthen against the backdrop of a weaker dollar

By | January 18, 2019

Today, the yen became cheaper versus the dollar after The Wall Street Journal reported that the United States authorities are discussing the possible abolition of import tasks on Chinese items, although the US Treasury later denied this details.

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According to a number of specialists, regardless of positive expectations relating to the resolution of trade conflicts in between Washington and Beijing, the scenario in the future will not favor Greenback.

“Our company believe that the effect of fiscal stimulation in the United States will gradually come to naught, and financiers will eventually lose their desire to buy dangerous assets, in connection with which the yen will reinforce. We anticipate the USD/ JPY set to reach 103 over the next 6-12 months,” stated experts at Citigroup financial corporation.

“The Japanese currency is very cheap compared to its long-term fair value, and investments in it, in our opinion, are more profitable than in euros,” they added.

Citigroup has actually modified down its projection for the dollar index for 2019 from 93.33 to 92.56.

Experts at Bank of America Merrill Lynch (BofAML) abide by a similar viewpoint.

“Our company believe that in the foreseeable future, interest in risky properties will decrease due to the truth that the growth rate of the world economy might have reached its optimum,” they kept in mind.

According to the BofAML forecast, by the end of the year, the USD/ JPY pair will drop to 101.

The product has actually been offered by InstaForex Business – www.instaforex.com

Media: the US might waive responsibilities on Chinese goods

By | January 18, 2019

According to the newspaper The Wall Street Journal, the United States is considering the possibility of deserting the protective tasks formerly imposed by Washington on the import of Chinese products. The White Home administration sees such a relocation as a method to calm worldwide financial markets and motivate Beijing to make deeper and longer-term concessions in a trade war.With the proposed measures do not settle on US Trade Agent Robert Lighthizer. He thinks that China may perceive such a step as a weakness on the part of Washington.The concept of partial cancellation of duties or total rejection of them was proposed by US Treasury Secretary Steven Mnuchin. The politician argues that such a policy of easing trading conditions will help succeed in advancing trade negotiations with China and get Beijing’s assistance in carrying out joint longer-term reforms.The material has actually been offered by InstaForex Company- www.instaforex.com

Euro bets on ECB

By | January 18, 2019

Weak data on the German economy and the mention of Mario Draghi of the word “economic downturn” led the single European currency into the red zone for the week by January 18. And let the head of the ECB argued that the economic crisis is not a concern, we require to speak about a smooth landing, the monetary markets are rather shy. If German GDP shows the worst dynamics since 2013, and its European equivalent, evaluating by service activity, closes the 4th quarter even worse than the modest third (+ 0.2% q/ q), then why buy EUR/ USD? Would not it be much better to continue to keep the US dollar in financial investment portfolios?Theoretically, the downturn in the United States economy, the pause in the procedure of normalizing financial policy and the growing recession risks must damage the position of the bears on the main currency pair. Nevertheless, while macroeconomic data do not validate the idea of a considerable loss in the rate of US GDP, and the yield curve has actually not inverted, it is prematurely to panic. Yes, the indication predicted the last 7 economic downturns of 7, yes, the macro stats are retrospective, and the signs of financial markets are of a predictive nature, but till the thunder breaks out, the peasant will not cross himself.Dynamics of the US yield curve< img width ="450"src="http://qkfx.com/wp-content/uploads/2019/01/euro-bets-on-ecb.png"alt="vAA-GSjXuat9vq5Lu7NbnkrYAMMKgABQ4VdtdIwc"/ > Fed authorities are starting to pay increased attention to the dynamics of stock indices. In their viewpoint, the high turbulence of the stock exchange, the growing dangers of a downturn in the worldwide economy and global need, along with tight monetary conditions and a strong dollar are strong arguments in favor of slowing financial limitation. Nevertheless, taking a look at the peak of the USD index at the end of 2018, it can be concluded that the aspect of the “pigeon “rhetoric of the FOMC plenipotentiaries is currently partly taken into account in the EUR/ USD quotes.A single European currency would be good to get up on its feet, and a week by January 25 might be definitive in its fate.

In its course, the outcomes of the ECB conference and figures on business activity for January will be understood. The strong start of purchasing supervisors’ indices in 2019, coupled with the preservation of the Governing Council’s optimism about the recovery of GDP and inflation of the currency bloc, can influence EUR/ USD”bulls”to attack. On the contrary, the failure of PMI to carry out reasonably positive forecasts of Bloomberg experts and tips of Mario Draghi on the expansion of the stimulus package, if needed, will return the initiative to the bears.The course of settlements in between the US and China can also contribute to its characteristics. If the idea of Steven Mnuchin to raise import duties in order to soothe the financial markets comes to life, then we are anticipated to offer safe-haven assets, including the US dollar. On the contrary, the escalation of the dispute will hurt the euro.Technically, the bulls in EUR/ USD do not leave expect the implementation of the Bat pattern with a target of 88.6%. To do this, they require to bring the quotes of the pair outside the debt consolidation range of 1.1265-1.1485 and rewrite the January maximum. On the contrary, the inability of euro buyers to keep quotes above$1.14 will increase the risks of continuing the set’s southern hike.EUR/ USD, the everyday chart

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The product has been offered by InstaForex Business – www.instaforex.com

GBP/ USD set: prepare for the American session on January 18. The other day’s speculative growth of the pound did not find the

By | January 18, 2019

To open long positions on the GBP/ USD pair, you need: Purchasers missed out on the assistance level of 1.2963, and the primary job for the second half of the day is to return to this range, which will enable forming the lower limitation of the new rising channel and count on the ongoing growth of the pound in the area of maximum 1.3016 and 1.3064. When it comes to an additional downward correction of the GBP/USD pair, taking a closer look from the 1.2896 or 1.2835 low is the best option in thinking about for long positions.

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

Stopping working to repair above the resistance of 1.2963 in the second half of the day will be a signal to open brief positions in the pound. The main task is to return to the assistance level of 1.2896, which will likely update the minimum of 1.2835, where I recommend taking earnings. When it comes to a return of GBP/USD to the resistance level of 1.2963, it is best to return to short positions from the maximum of 1.3016 and 1.3064.

Indication signals:

Moving averages

Trade returned to the area of 30- and 50-day moving, which shows the lateral nature of the market.

Bollinger bands

Volatility remains low, which does not give signals to go into the market.

More in the video projection for January 18

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Description of indications

MA (moving average) 50 days – yellow

MA (moving average) 1 month – green

MACD: fast EMA 12, slow EMA 26, SMA 9

Bollinger Bands 20

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EUR/ USD pair: plan for the American session on January 18. There is nearly no movement in the market

By | January 18, 2019

To open long positions on EUR/ USD set, you need: The weak essential data did not enable euro buyers to form a bigger upward correction. It is necessary that the bulls handle to hold the EUR/USD pair above the assistance level of 1.1375. However, the main job is to return to the resistance level of 1.1411, which will cause a bigger upward correction to the location of the optimum of 1.1451 and 1.1490, where I advise to repair the earnings. A Weak data on the US labor market can help the bulls with correction. In the case of a duplicated decline in the assistance location of 1.1375 in the afternoon, it is best to return in long positions to the rebound from the minimum of 1.1343. To open short positions on EUR/ USD set, you need:

The sellers did not manage to return to the assistance level of 1.1375 and for the 2nd half of the day, their main job is to break this range, which will cause a larger EUR/USD sale with a minimum of 1.1343 and 1.1312, where I suggest to repair the profit. In case that a fast down motion is not formed after checking the minimum of 1.1375, as it was today in the first half of the day, I advise closing brief positions given that a large upward correction in euro can be formed from this level. When the development circumstance is above the resistance of 1.1411 against the background of weak essential statistics for the USA, it is best to consider short positions in EUR/USD pair on a rebound from 1.1451.

Sign signals:

Moving averages

Trade is carried out in the area of 30- and 50-medium moving, which suggests the side character of the marketplace.

Bollinger bands

The volatility of the Bollinger Bands sign is low, which does not offer signals to enter the marketplace.

More in the video forecast for January 18

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Description of indications

MA (moving average) 50 days – yellow

MA (moving average) 30 days – green

MACD: fast EMA 12, sluggish EMA 26, SMA 9

Bollinger Bands 20

The product has been offered by InstaForex Company – www.instaforex.com

EUR and GBP. The issues in the UK economy is increasing. Euro buyers disappointed with data

By | January 18, 2019

The euro remained sold a narrow side channel coupled with the US dollar, however held its position after the release of the next weak basic data for the eurozone.

The decrease in the favorable balance of the bank account of the eurozone’s balance of payments in November 2018 once again indicates that the eurozone economy is slowing once again by the end of the year and is unlikely to reveal excellent development rates in early 2019. The sharp decline compared to October and the level of 2017 is bad news for the European Central Bank, which just recently increasingly more typically speaks not about raising rate of interest, but about the requirement to more stimulate the economy.

Essential is the reality that, in the main, a decrease in the favorable balance of payments was triggered by a reduction in trade in goods due to a boost in imports.

If we add to all the information for today the likelihood of a new trade war in between the US and the EU, the potential customers for the European currency at the beginning of this year do not seem so rosy as before.

According to the report of the European regulator, the favorable balance of the current account of the balance of payments in the eurozone in November 2018 amounted to 20 billion euros versus 27 billion euros in October. Compared with November 2017, the decrease is excellent, considering that at that time the surplus was 35 billion euros. The surplus of trade in goods in November fell to 18 billion euros from 31 billion euros in November 2017.

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Weak data for the euro area all week does not allow euro purchasers to form a bigger upward correction, and, ultimately, everything might end in another wave of falling dangerous assets.

When it comes to the technical photo of the EUR/ USD pair, the bears are trying to resume the down motion in the market after the unsuccessful attempt of the bulls to go back to the game. A break of 1.1375 may lead to a bigger reduction in risky assets with the renewal of lows around 1.1340 and 1.1310. In the case of another incorrect breakdown in the location of 1.1375, bulls can willingly return, which will lead to an effective upward impulse with a test and a breakthrough of the intermediate resistance 1.1415 and the main objective of upgrading the maximum of 1.1450.

The British pound stayed under pressure and remedied after the other day’s growth, based more on expectations than on realities.

Weak data on retail sales in the UK when again showed a slowdown in economic development at the end of 2018. According to the report of the National Bureau of Stats ONS, retail sales in the UK in December 2018 reduced by 0.9% compared with the previous month. This is another confirmation that the growth momentum of the UK economy is fading. Given the circumstance with the EU and Brexit, it is unlikely that in the near future it will be possible to expect a modification in the circumstance, as customer self-confidence decreases, as do their expenses.The product has actually been provided by InstaForex Company -www.instaforex.com

GBP/USD short-term technical levels with Linear Channels and trading suggestions for January 18, 2019 888011000 110888 Blue channel is based upon the price movement of yesterday.Violet channel is basedon the previous two-day consolidations.Yellow channel is based upon the previous three-day combinations. The current bullish motion of the GBP/USD pair which started around1.2700, has lost much of its bullish momentum because Wednesday.Lack of enough bullish momentum is shown on the chart so that Today’s recent motions have become sideways consolidations.The set is presently moving within the depicted narrow channel( Violet channel) after a bearish breakout of the BLUE channel was shown previously today.Looking to the disadvantage, the GBP/USD set has an Intraday support located around 1.2900 which corresponds to mid-range of the yellow channel.Any bearish pullback towards 1.2900 can be considered for a short-term BUY position.On the other hand, any decline listed below 1.2900-1.2880 (Mid-Range Support )enables a deeper decline towards 1.2830 and 1.2780 where the lower limitation of the yellow channelis located.Having a seek to the advantage, the GBP/USD set has a key-resistance zone around 1.3020 where bearish rejection may be anticipated. That’s why, obvious bullish breakout above 1.3020 is obligatory for PURCHASERS to pursue towards 1.3080-1.3100. The material has been provided by InstaForex Business-www.instaforex.com

By | January 18, 2019

Blue channel is based on the price movement of yesterday.

Violet channel is based on the previous two-day consolidations.

Yellow channel is based on the previous three-day consolidations.

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The recent bullish movement of the GBP/USD pair which started around 1.2700, has lost much of its bullish momentum since Wednesday.

Lack of enough bullish momentum is demonstrated on the chart so that Today’s recent movements have turned into sideways consolidations.

The pair is currently moving within the depicted narrow channel (Violet channel) after a bearish breakout of the BLUE channel was demonstrated earlier today.

Looking to the downside, the GBP/USD pair has an Intraday support located around 1.2900 which corresponds to mid-range of the yellow channel.

Any bearish pullback towards 1.2900 can be considered for a short-term BUY position.

On the other hand, any decline below 1.2900-1.2880 (Mid-Range Support) enables a deeper decline towards 1.2830 and 1.2780 where the lower limit of the yellow channel is located.

Having a look to the upside, the GBP/USD pair has a key-resistance zone around 1.3020 where bearish rejection may be anticipated.

That’s why, obvious bullish breakout above 1.3020 is mandatory for BUYERS to pursue towards 1.3080-1.3100.

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