Category Archives: Quick Forex

BoJ Minutes: Japanese Economy Continues To See Moderate Expansion

By | September 25, 2018

Members of the Bank of Japan’s financial policy meeting said that Japan’s financial growth is continuing at an appropriate pace, minutes from the bank’s meeting on July 30 and 31 exposed on Tuesday.

At the meeting, the central bank maintained its massive monetary stimulus as anticipated, consisting of the -0.1 percent rates of interest on bank accounts that financial institutions preserve at the bank.

“The staff explained that one choice would be to indicate that the Bank planned to maintain the current very low levels of short- and long-term rate of interest for an extended period of time, taking into consideration uncertainties relating to economic activity and prices,” the minutes said.

The bank will continue to purchase government bonds so that the yield on the 10-year Japanese government bonds remains at around no percent.

The BoJ is set to perform purchases of Japanese government bonds in a flexible manner so that the outstanding quantity will increase at an annual speed of about JPY 80 trillion.

Annual inflation is expected to gradually continue increasing towards the target goal of 2 percent, the minutes stated. The inflation outlook was reduced, while preserving development forecasts.

The inflation projection for financial 2018 was cut to 1.1 percent from 1.3 percent. The projection for financial 2019 was decreased to 1.5 percent from 1.8 percent and that for 2020 to 1.6 percent from 1.8 percent.

“With regard to the outlook, the year-on-year rate of change in the CPI (all products less fresh food) was likely to increase slowly toward 2 percent, generally on the back of a rise in medium- to long-term inflation expectations with the output space remaining favorable,” the minutes stated.

At the exact same time, the bank maintained its growth forecast for both financial 2019 and fiscal 2020 at 0.8 percent.

Abroad economies are usually seeing continued development, the minutes stated, although global financial markets are periodically seeing periods of instability.

“The Bank will take a look at the dangers considered most appropriate to the conduct of financial policy and make policy changes as suitable,” the minutes stated.

Also on Tuesday, the central bank said that manufacturer costs in Japan were up 1.3 percent on year in August – surpassing expectations for an increase of 1.1 percent, which would have been unchanged from the July reading.

On a month-to-month basis, producer prices were unchanged after increasing 0.1 percent in the previous month.

Among the private parts, costs were up for marketing services, information and communications and realty.

Rates were down for architectural services and hotels.

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

EUR/USD. September 24. Results of the day. Donald Trump killed two birds with one stone

By | September 25, 2018

4-hour timeframe The amplitude of the last 5 days(high-low): 80P– 73p– 65p– 116p– 70p.

The average amplitude over the last 5 days: 81p (87p).

The first trading day of the week was rather active. The euro updated Friday’s high, meaning to continue the uptrend. On this day, trade tasks totalling $200 billion against China entered into effect. And a similar task against the United States in the amount of $60 billion. The markets responded by offering the dollar. Therefore, we can when again state that Trump eliminated two birds with one stone at the very same time. The dollar is declining, tariffs against China are being presented. And this is not the limitation. It is expected that the US leader will present a 3rd bundle of duties on the staying share of imports from China, which has to do with 267 billion dollars. If a month ago it was possible to anticipate the conditioning of the US currency on such news, now the dollar is most likely to fall. One method or another, as technical indicators continue to signify upward motion. There are no engaging factors to open brief positions at the minute. Even if the market responds to this or that news with purchases of the US dollar, it will disappear than a correction. Macroeconomic reports were not published on Monday. By the way, the cost also bounced off the critical Kijun-sen line, which is a buy signal. Today there will be a meeting of the Federal Reserve, and the main issue of this occasion is the question of raising the key rate. Remember that Trump has actually currently slammed Powell for too rapid tightening up of financial policy. However, the Fed is beyond Trump’s control, so the concern is, will Powell satisfy the US President?

Trading recommendations:

For the EUR/USD, the correction ended near the Kijun-sen line. Hence, it is now suggested to trade on the increase with the first target of 1.1829, and then– to 1.1874.

It is recommended to consider sell orders only below the crucial line. In this case, the “golden cross” will be weakened, and the trend will have the ability to change to a down one. The very first target for the down movement is 1.1644.

In addition to the technical image, fundamental data and the timing of their release must likewise be taken into account.

Explanation of illustration:

Ichimoku Indication:

Tenkan-sen– red line.

Kijun-sen– blue line.

Senkou cover a– light brown dotted line.

Senkou period B– light purple dotted line.

Chikou period– green line.

Bollinger Bands Indication:

3 yellow lines.

MACD:

Red line and pie chart with white bars in the sign window.The material has been offered by InstaForex Company – www.instaforex.com

Japan Producer Prices Jump 1.3% On Year In August

By | September 25, 2018

Manufacturer rates in Japan were up 1.3 percent on year in August, the Bank of Japan stated on Tuesday – exceeding expectations for an increase of 1.1 percent, which would have been the same from the July reading.

On a monthly basis, producer prices were unchanged after rising 0.1 percent in the previous month.

Among the individual components, prices were up for advertising services, information and communications and real estate.

Prices were down for architectural services and hotels.

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

Simplified Wave Analysis. EUR/USD for the week of September 24 888011000 110888 Wave pattern of the H4 chart:The primary direction of the trend given that February this year moves the quotations of the euro significant downwards. The cost has actually reached a large-scale assistance zone.Wave pattern ofthe H1 chart: Because mid-August, the instructions vector shows an upward area. The first part of the wave zigzag of the older TF was formed. The price has actually reached the target zone. Wave pattern of the M15 chart: Because September 21, the cost has moved down. A high wave level of decline allows you to await the continuation of the pair, as much as the computed zone. Advised trading strategy: Sales are associated with a high degree of uncertainty. The threat can be justified only in the intraday trading design. Market individuals are motivated to wait for the completion of the whole down wave and after that search for buy signals.Resistance zone:-1.1740/ 1.1790 Assistance zone:- 1.1470/ 1.1420 Explanation of figures:the streamlined wave analysis utilizes waves consisting of 3 parts (A-B-C). For analysis, 3 main TFs are used, the last unfinished wave is evaluated on every one. Zones reveal the computed locations with the highest possibility of a reversal.Arrows suggest wave marking inning accordance with the approach utilized by the author. With a strong background showing a structure for figuring out the expected movement.Note: the wave algorithm does not take into consideration the period of the tool motions over time. To perform a trade, you need to validate the signals of the trading systems you use!The material has been supplied by InstaForex Business-www.instaforex.com

By | September 24, 2018

Wave pattern of the H4 chart:

The main direction of the trend since February this year moves the quotations of the euro major downwards. The price has reached a large-scale support zone.

Wave pattern of the H1 chart:

Since mid-August, the direction vector indicates an upward section. The first part of the wave zigzag of the older TF was formed. The price has reached the target zone.

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Wave pattern of the M15 chart:

Since September 21, the price has moved down. A high wave level of decline allows you to wait for the continuation of the pair, up to the calculated zone.

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Recommended trading strategy:

Sales are associated with a high degree of uncertainty. The risk can be justified only in the intraday trading style. Market participants are encouraged to wait for the completion of the entire downward wave and then look for buy signals.

Resistance zone:

– 1.1740/1.1790

Support zone:

– 1.1470/1.1420

Explanation of figures: the simplified wave analysis uses waves consisting of 3 parts (A-B-C). For analysis, 3 main TFs are used, the last unfinished wave is analyzed on each one. Zones show the calculated areas with the highest probability of a reversal.

Arrows indicate wave marking according to the method used by the author. With a solid background showing a structure for determining the expected movement.

Note: the wave algorithm does not take into account the duration of the tool movements over time. To conduct a trade, you need to confirm the signals of the trading systems you use!

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

EUR/USD: fear has big eyes – the dollar is getting cheaper once again

By | September 24, 2018

Worldwide trade and political conflicts are again the focus of the currency market. By a surprising coincidence, the situation has intensified on nearly all” fronts “: the US-China talks broke down, the circumstance on Brexit reached a deadlock, and the offer in between Washington and Ottawa on NAFTA has not yet been renegotiated. As a disappointing background, these problems are devaluation in Argentina and Turkey, as well as the recession in South Africa.In other words, the market returned to the beginning point, being in the state in which it was at the end of summer season. The dollar then enhanced throughout the marketplace, and paired with the euro even tested the 12th figure. At the minute, the essential background for the set once again ends up being unfavorable, but with one significant difference: the Federal Reserve the day after tomorrow can provide the dollar bulls

an undesirable surprise in the form of its indecisiveness regarding more actions. The trade war with China, which previously supported the United States currency (as the market used it as a protective asset), may consequently “sink” it. The Fed has actually been focusing on the risks of foreign trade unpredictability for several months, however has not yet linked this aspect with the rate of monetary policy tightening up. It will be troublesome for the dollar to show development in the escalation of the US-China trade dispute if the regulator tips at such a relationship. By the way, the last exchange of economic blows was ignored by the greenback, which suggests that the market is dominated by considering the unfavorable effect of the trade war on the United States economy.

At the beginning of the trading week, dollar bulls attempted to establish success: at the start of the European session, the dollar index once again tested 94 figures, and the yield of 10-year Treasuries is above 3 percent. The dollar responded to the events of the weekend, when the Chinese refused to hold additional negotiations. According to the American press, Beijing actually at the last minute cancelled the visits of two delegations to the United States, and also cancelled the check out of Vice-Premier Liu He to Washington. The United States chose to enforce sanctions versus the Chinese Ministry of Defense due to the fact that of China’s decision to buy military airplane and rocket systems from Russia. Beijing considered such actions as interference in the internal affairs of the country, after which the Chinese Ministry of Foreign Affairs summoned the United States Ambassador in Beijing to reveal their protest.

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Simply puts, relations in between the 2 superpowers have actually weakened sharply, although a few weeks ago the Chinese delegation left Washington with a sense of “motivating optimism”. This optimism was then reflected in the quotes of significant currencies, putting pressure on the dollar. Now the circumstance has returned to “square one”. In addition, during the weekend, the British Prime Minister voiced a rather cynical speech that the Brexit talks reached a deadlock, as Brussels “does not hear” London and turns down the propositions without explaining any factors. Theresa Might has actually also come back to her recent thesis, which comes down to “the absence of an offer is better than a bad offer.” The pound (in addition to the euro) lost ground under its feet versus this background, and the dollar received an additional reason for its development.

There is one “however”: the approaching conference of the Federal Reserve. The US currency can not thoughtlessly acquire momentum, disregarding the risks of “dovish” remarks from Jerome Powell. That is why the growth of the dollar today has not received its massive extension: the market fears that the 80-percent probability of a December rate hike is unreasonable, and on Wednesday the head of the Fed will disappoint traders with his indecisiveness. In my viewpoint, such fears are quite warranted. Powell is not likely to be transparent about the fourth rate trek in December amidst an unforeseen slowdown in inflation and a new round of US-China trade war.In basic, the truth of a 4th hike throughout the year was questionable– even the “hawks” of the Fed always talked about “3 or four” increases within the present year. The Fed in a sense “has the right” to reveal indecisiveness concerning the December round of tightening up monetary policy. Too expensive expectations of the market can provide a disservice to the EUR/USD pair– both literally and figuratively: any symptom of doubts about the actions in December will put strong pressure on the dollar.

Versus the background of a half-empty financial calendar (today only the German report from the IFO and Mario Draghi’s speech), these market reflections caused the development of the euro/dollar set, regardless of the ambitious increase in the rate of the US currency during the Asian session. With a high degree of probability, such anxiety will put pressure on the greenback up until the September conference of the Fed. The market is required to “pay” for its high expectations about the further actions of the United States reserve bank.

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From the technical viewpoint, the scenario has not altered because recently. On the daily chart, the “Line Parade” signal of the Ichimoku Kinko Hyo sign is still active, and the set is above the Kumo cloud and on the upper line of the Bollinger Bands indication. The support level is the middle line of the Bollinger Bands sign (1.1660 mark). The resistance level is the price high of Friday – 1.1777. If the bulls conquer this price barrier, the pair will go for the next resistance level 1.1885 – this is the upper line of the Bollinger Bands sign on the weekly chart, coinciding with the Kijun-sen line. In any case, up until the bears lower the rate below 1.1660, the bulls of the pair will have a benefit for the further development of the upward trend.

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

Euro Firms As ECB Draghi Sees Energetic Get In Eurozone Core Inflation

By | September 24, 2018

The euro rose sharply versus its major equivalents in the New York session on Monday, after the European Central Bank President Mario Draghi struck a positive tone about the euro location economy, stating he anticipates a vigorous pick-up in underlying inflation in the coming months.

Speaking prior to the Economic and Monetary Affairs Committee of the European Parliament in Brussels, Draghi stated that underlying inflation is likely to speed up even more over the coming months as the tightening up labour market is rising wage growth.

Draghi validated a broad-based growth of the euro area economy, showing high levels of capacity utilisation and tightening up labour markets with indications of labour lacks in some countries and sectors.

Draghi restated that the rate of interest will stay at their existing level “through the summer of 2019.”

The currency has already been supported by an information showing much better than predicted German business confidence in September.

Study information from Mannheim-based Ifo institute showed that the business belief index can be found in at 103.7 in September, up from forecasts of 103.2.

The present assessment sign stood at 106.4 in September versus revised 106.5 a month earlier. Nonetheless, ball game was above the forecast of 106.

The currency has been selling a positive territory in the European session, with the exception of the pound.

The euro appreciated 0.6 percent to a 4-day high of 1.1322 against the franc, following a decline to 1.1250 at 5:15 pm ET. At last week’s close, the pair was worth 1.1255. The euro is poised to discover resistance around the 1.15 level.

The euro increased as much as 1.1815 against the greenback, its strongest since June 14. This represented a 0.8 percent advance from a 4-day low of 1.1724 seen at 2:30 am ET. When it closed offers on Friday, the euro-greenback set was valued at 1.1747. The euro is seen finding resistance around the 1.20 level.

The single currency extended early gains to 133.07 against the yen, up by 0.9 percent from a 4-day low of 131.90 touched at 2:30 am ET. The euro was trading at 132.23 versus the yen at last week’s close. Next key resistance for the euro is seen around the 134.50 mark.

The euro strengthened to a 6-day high of 1.6244 versus the aussie, after falling to 1.6134 at 9:30 pm ET. Extension of the euro’s uptrend may see it difficult resistance around the 1.64 level.

The euro reversed from an early low of 1.7567 versus the kiwi, increasing to a 5-day high of 1.7727. Additional uptrend might take the euro to a resistance around the 1.80 location.

The typical currency added 0.7 percent to hit near a 2-week high of 1.5262 versus the loonie, from a low of 1.5160 set at 5:15 pm ET. The euro is most likely to test resistance around the 1.54 region, if it rallies again.

The euro bounced off to 0.8980 against the pound, from a low of 0.8935 seen at 8:30 am ET. The next possible resistance for the euro is seen around the 0.92 area.

The Industrial Trends Survey from the Confederation of British Market showed that UK manufacturing orders weakened in September as export order books faded a little.

The total order book balance fell to -1 percent in 3 months to September, in contrast to the projection of +4 percent. The export order book balance stood at +5 percent.

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

ECB’s Draghi Expects Vigorous Get In Eurozone Core Inflation

By | September 24, 2018

European Reserve Bank President Mario Draghi said on Monday that the underlying inflation in the euro area is set to increase in coming months, and that there are indications of labor shortages in some countries in the single-currency union. Euro increased sharply on Draghi’s remarks as market translated them as hawkish, signifying a walking in rate of interest late next year.

Economists commonly anticipate the bank to trek rates of interest just in the 2nd half of next year.

“Looking forward, yearly rates of HICP inflation are likely to hover around current levels in the coming months and are predicted to reach 1.7 percent in each year in between now and 2020,” Draghi said in the introductory declaration at a European Parliament Committee hearing. “This steady profile hides a slowing contribution from the non-core components of the general index, and a fairly energetic pick-up in underlying inflation,” he included, with referral to the current ECB Personnel projections. Core inflation, which omits the volatile food and energy prices, are projected to reach 1.8 percent in 2020.

Draghi noted that the euro area development is continuing at a robust pace amid high level of capacity utilization and labor markets are tightening up with signs of labor shortages in some nations and sectors.

Eurozone unemployment rate was 8.2 percent in July. “Underlying inflation is expected to increase even more over the coming months as the tightening labor market is pushing up wage development,” Draghi stated. Regarding forward assistance, Draghi stated it has actually ended up being a crucial instrument for all major reserve banks consisting of the ECB. On September 13, the ECB left its rate of interest, asset purchases and forward guidance unchanged.

The main refi rate is currently at a record low no percent and the deposit rate at -0.40 percent. The limited lending center rate is 0.25 percent.

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

Intraday technical levels and trading suggestions for GBP/USD for September 24, 2018 888011000 110888 On September 13,the GBP/USD set was checking the portrayed drop line which pertained to satisfy the set around 1.3025-1.3090. Since then, the set has actually been demonstrating a successful bullish breakout so far.This rate zone(1.3025-1.3090 )also represents 50%and 61.8%Fibonacci levels. Currently, this cost zone relied on end up being a popular demand zone to be watched for bullish rate action.However, On H4 chart, the market cannot preserve its uptrend within the illustrated bullish channelon H4 chart. The lower limitation of the portrayed channel (which came to meet the GBP/USD pair around 1.3190)failed to use enough bullish demand.As long as the current bullish breakout above 1.3090 (Demand level-1)is preserved on a dailybasis, further bullish development ought to be expected towards 1.3300 and 1.3390 (turnaround pattern last target). On the other hand, the cost level of 1.3190 now makes up a short-term supply level (the behind of the damaged bullish channel)where some bearish rejection can be anticipated.Moreover, any bearish decrease listed below 1.3090(Demand level-1) will most likely revoke the bullish circumstance for the short-term. The set would have lower targets around 1.3010(Demand level-2). The material has been offered by InstaForex Company-www.instaforex.com

By | September 24, 2018

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On September 13, the GBP/USD pair was testing the depicted downtrend line which came to meet the pair around 1.3025-1.3090. Since then, the pair has been demonstrating a successful bullish breakout so far.

This price zone (1.3025-1.3090) also corresponds to 50% and 61.8% Fibonacci levels. Currently, this price zone turned to become a prominent demand zone to be watched for bullish price action.

However, On H4 chart, the market failed to maintain its uptrend within the depicted bullish channel on H4 chart. The lower limit of the depicted channel (which came to meet the GBP/USD pair around 1.3190) failed to offer sufficient bullish demand.

As long as the recent bullish breakout above 1.3090 (Demand level-1) is maintained on a daily basis, further bullish advancement should be expected towards 1.3300 and 1.3390 (reversal pattern final target).

On the other hand, the price level of 1.3190 now constitutes a short-term supply level (the backside of the broken bullish channel) where some bearish rejection can be anticipated.

Moreover, any bearish decline below 1.3090 (Demand level-1) will probably invalidate the bullish scenario for the short-term. Hence, the pair would have lower targets around 1.3010 (Demand level-2).

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

Intraday technical levels and trading recommendations for EUR/USD for September 24, 2018 888011000 110888 On the weekly chart, the EUR/USD set is showing a high-probability Head and Shoulders turnaround pattern where the right shoulder is currently in progress.Recently, the cost level of 1.1500 provided short-lived bullish healing to 1.1750. The EUR/USD bulls failed to pursue to greater bullish targets. Instead, a coming down high was developed around 1.1800. However, the price level of 1.1520 stood as a popular need level where the present bullish pullback towards the cost level of 1.1700 was initiated.Last week, another bullish motion was shown towards the ceiling of the pricevariety( 1.1750 )which resulted in a daily shooting-star bearish candlestick showing early indications of bearish rejection.On the day-to-day chart, The EUR/USD pair remains trapped below the portrayed technical key-levels(1.1750-1.1850 ). As for the bearish side of the market to be dominant, the pair needs to keep trading below 1.1750. On the other hand, conservative traders ought to be expecting additional bullish advance to 1.1850 if the EUR/USD set resumes its motion above 1.1750 (lower likelihood). The product has been supplied by InstaForex Company-www.instaforex.com

By | September 24, 2018

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On the weekly chart, the EUR/USD pair is demonstrating a high-probability Head and Shoulders reversal pattern where the right shoulder is currently in progress.

Recently, the price level of 1.1500 offered temporary bullish recovery towards 1.1750. The EUR/USD bulls failed to pursue towards higher bullish targets. Instead, a descending high was established around 1.1800.

However, the price level of 1.1520 stood as a prominent demand level where the current bullish pullback towards the price level of 1.1700 was initiated.

Last week, another bullish movement was demonstrated towards the upper limit of the price range (1.1750) which resulted in a daily shooting-star bearish candlestick reflecting early signs of bearish rejection.

On the daily chart, The EUR/USD pair remains trapped below the depicted technical key-levels (1.1750 – 1.1850). As for the bearish side of the market to be dominant, the pair should keep trading below 1.1750.

On the other hand, conservative traders should be expecting further bullish advance towards 1.1850 if the EUR/USD pair resumes its movement above 1.1750 (lower probability).

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