Technical analysis of NZD/USD for August 24, 2017 888011000 110888 NZD/USD is under pressure and expected to continue its downside motion. The pair cannot break above its key resistance at 0.7235 and consolidated on the drawback. The declining 20-period moving typical crossed listed below the 50-period one, which is a negative signal. The relative strength index is listed below its neutrality level at 50 and lacks upward momentum. As long as 0.7235 hangs on the upside, look for a further drop to 0.7170 and even 0.7145 in extension. The black line reveals the pivot point. Presently, the rate is above the pivot point which shows the bullish position. If it remains below the pivot point, it will suggest the brief position. The red lines reveal the support levels and the green line indicates the resistance levels. These levels can be used to enter and leave trades.Resistance levels: 0.7255, 0.7280, and 0.7315 Assistance levels: 0.7170, 0.7145, and 0.7100 The material has actually been provided by InstaForex Business -www.instaforex.com

By | August 24, 2017

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NZD/USD is under pressure and expected to continue its downside movement. The pair failed to break above its key resistance at 0.7235 and consolidated on the downside. The declining 20-period moving average crossed below the 50-period one, which is a negative signal. The relative strength index is below its neutrality level at 50 and lacks upward momentum.

As long as 0.7235 holds on the upside, look for a further drop towards 0.7170 and even 0.7145 in extension.

The black line shows the pivot point. Currently, the price is above the pivot point which indicates the bullish position. If it remains below the pivot point, it will indicate the short position. The red lines show the support levels and the green line indicates the resistance levels. These levels can be used to enter and exit trades.

Resistance levels: 0.7255, 0.7280, and 0.7315

Support levels: 0.7170, 0.7145, and 0.7100

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

Jonathon Alexander

Draghi again supported the euro

By | August 24, 2017

Eurozone ECB President Mario Draghi, speaking at the forum of Nobel Prize winners in Germany, contributed to the increase of need for the euro. In his speech, he focused on the favorable outcomes

of the stimulus program, thanks to which the economy of the eurozone”soared “and”operates at full capability.”Another favorable aspect was the fact that Draghi did not say a word about the high rate of the euro, which the observers feared.At the exact same time, Draghi made it clear that the property bought program will be tapered early next year, regardless of the still low inflation. This is a bullish signal for the marketplaces, however it has actually already largely recovered, as reports of the approaching completion of the program have actually been distributing in the financial scene because the start of the summer.The approximation of correction is helped with by the most current outcomes of marketing research. Germany’s economic belief sign from ZEW was up to 10p in August, the most affordable since October 2016, which suggests a boost in investors’worries about future financial development. A comparable indicator for the eurozone, on the other hand, increased to 38.4 p, and this is the highest given that January 2008. Inning accordance with IHS Markit, production in the eurozone is at a peak level for 6.5 years, meaning a strong currency does not hinder growth, and this is yet another signal that the euro’s development might continue. In spite of the fact that the euro has a substantial potential to resume growth, the gamers in the coming days will be far more carefulAnalytics599e666cc93d7.png

and will wait on new comments from Draghi and Fed Chairman Yellen, who are preparing to offer their speeches in Jackson Hole. Investors will likewise wait on news from the United States, where, perhaps next week, massive agreement on tax reform between the Congress and the Trump administration will be announced.United Kingdom The British pound continues to decrease, losing all its power. Prior to the conference of the Bank of England on August 3, the market expected that at

least 3 cabinet members would vote for an immediate rate walking, however the reasons for the hawkish position to end up being dominant have not increased, but decreased. The only thing that can support the pound is the higher inflation than other countries, but inning accordance with other indices such as commercial production, labor market, genuine incomes of citizens, GDP development rates, the situation for the UK looks worse.Based on the current report on inflation, it is clear that the Bank of England, in the matters of normalizing financial policy, is all set to follow the lead of the Fed and

the ECB. Inning accordance with its own projection, the growth rates will be lower, namely, the characteristics of the yield spread will not favor British assets, even despite some improvement in the May forecasts. The pound, so far, does not yet have a concept

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if it is capable of going back to an upward pattern. Today, upgraded data on GDP growth rates and financial investment volume for the Second quarter will be released. Specialists do not expect positive changes, thus the pound will remain under pressure.Oil The decline in industrial oil stocks by 3.3 million barrels, inning accordance with the United States Department of Energy

, added to the boost of Brent quotations above 52 dollars per barrel. The market has not taken notice of the fact that the oil production in the US is increasing all at once, concentrating on the information on reserves. Possibly the factor for this selectivity is the research study data, inning accordance with which the expense of production has been progressively increasing in current months, which will inevitably result in a reduction in the level of production in the near future and will eventually help to find a balance in between supply and demand.The material has been offered by InstaForex Company- www.instaforex.com

Jonathon Alexander

International macro introduction for 24/08/2017

By | August 24, 2017

Global macro overview for 24/08/2017: Great information from the New Zealand economy were published overnight. The New Zeland Trade Surplus narrowed to

85M in July, from a modified 246M surplus the month

previously, although the decrease was much less than anticipated than -240 M deficit. When New Zealand reported a trade surplus, this was the fifth month in a row. It was a very first July surplus considering that 2012. A country’s trade balance shows the difference between exports and imports of goods and services. The trade balance is among the greatest elements of the Balance

of Payment, providing important insight into pressures on nation’s currency. The annual trade deficit remained at 3.21 billion in July, below 3.65 billion in the previous month. Yearly exports were worth 4.63 billion for the month and imports fell to 4.63 billion. The milk butter, cheese, and powder group led the increase in exports and the greatest purchaser was China, which is broadening at a very fast lane, so the Chinese economy needs a reliable source of this goods. The second biggest purchaser was United Arab Emirates( UAE ), the Philipines and the European Union. Such a good data from the New Zealand economy might help to appreciate the New Zealand Dollar throughout the board in the near-term, but the international investors will wait on the verification from other indications like GDP or inflation.

Previously this month, the Reserve Bank of New Zealand left the Authorities Cash Rate( OCR )unchanged at the level of 1.75 %. In the main declaration, the RBNZ said, that monetary policy is expected to stay accommodative for a long period of time, in order to support growth and guide inflation towards the RBNZ’s target on a sustained basis. Various uncertainties remain and policy may need to adjust appropriately as the lower NZD is needed. The total tone of the declaration signals clearly that it is going to take a great deal of built up evidence to require a departure from this careful stance in either direction.Let’s now take a look at the NZD/USD technical picture at the everyday amount of time. There is head and shoulders price pattern obvious on the chart with a neck line simply around 0.7200 level. If this pattern is valid, then the projected target for the cost is seen at the

level of 0.7000. However, the oversold market conditions do not support the bearish outlook right now. The product has been supplied by InstaForex Business-www.instaforex.com

Jonathon Alexander

Ichimoku indication analysis of USDX for August 24, 2017 888011000 110888 The United States dollar index got rejected as expected after back evaluating the damaged channel and cloud resistance. I anticipate the dollar index to press lower to 91.60 over the coming weeks. Red lines- bearish channel The dollar index is trading below the 4 hour Kumo. The other day we back evaluated the damaged channel and the Kumo cloud. The rejection is a bearish sign. Support is at 93.10 and the next one at 92.90. Resistance is found at 93.40 and the next one at 93.55. The everyday candles in the dollar index suggest a push and a rejection lower towards 91.60. A move of comparable size with the first part of the decline from 97.60 is anticipated. Trend is plainly bearish in the everyday chart without any turnaround signs.The material has been supplied by InstaForex Company- www.instaforex.com

By | August 24, 2017

The US dollar index got rejected as expected after back testing the broken channel and cloud resistance. I expect the dollar index to push lower towards 91.60 over the coming weeks.

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Red lines – bearish channel

The dollar index is trading below the 4 hour Kumo. Yesterday we back tested the broken channel and the Kumo cloud. The rejection is a bearish sign. Support is at 93.10 and the next one at 92.90. Resistance is found at 93.40 and the next one at 93.55.

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The daily candles in the dollar index suggest a rejection and a push lower towards 91.60. A move of similar size with the first part of the decline from 97.60 is expected. Trend is clearly bearish in the daily chart with no reversal signs.The material has been provided by InstaForex Company – www.instaforex.com

Jonathon Alexander

VENEZUELA: Maduro Will Send Letter To Trump To Remove Tensions

By | August 24, 2017

Venezuela’s President Nicol?s Maduro said he would send a letter to his U.S. equivalent Donald Trump intended to promote a considerate discussion, altering bilateral relations for great and eliminating conflicts and tensions.

The news came just one day after Maduro has verified that relations with the United States federal government are not going through a good minute, after Trump has threatened Venezuela with a possible military intervention.

“I am going to send out a letter to Trump very soon, due to the fact that I make sure that if he reads it with a little goodwill lots of things can change for the better and I desire this relationship to change for the better, removing tensions, disputes and issues that are going to be hurtful to both”, he stated during a press conference to foreign outlets in Caracas.

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

Jonathon Alexander

BRAZIL: Ibovespa Increases On Privatizations, Auctions And TLP Approval

By | August 24, 2017

The Brazilian government statement on brand-new privatizations, concessions and auctions under the Financial investment Collaborations Program (PPI), in addition to the approval of the Long-Term Rate (TLP) in a Congress’ joint committee, made the Ibovespa high (+0.66%), closing at 70,477.63 points. That was the greatest closing level of Ibovespa, the benchmark stock index in Brazil, given that January 19, 2011 (70,058 points).

In addition to revealing its objective to privatize Eletrobras, the Mint and Lotteries were consisted of on the privatization list today. The Brazilian federal government is also expected to grant 14 airports, 15 port terminals, highways and to auction oil exploration areas and energy distributors.

Earlier, the market was already optimistic for the approval of the provisional measure that handles the Long Term Rate (TLP). The procedure is expected to help in lowering the nation’s structural interest rate and the performance of Brazil’s National Bank for Economic and Social Advancement (BNDES).

Among the highlights of today were the shares of steelmakers and miners, such as Vale (VALE +2.13%), Gerdau Metal?rgica (GOAU4 +7.42%) and Usiminas (USIM5 +3.85%).

On the other hand, the locally traded U.S. dollar closed down 1.1%, at R$ 3.1440 in the sale, affected by TLP’s approval.

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

Jonathon Alexander

Will the bears and bulls make peace?

By | August 23, 2017

The inability of gold bulls to cling

to a crucial psychological level of $1,300 per ounce produces many opinions about the future potential customers of the asset.”Bears”speak about the speculative nature of the XAU/ USD rally, accentuating that over the past 5 weeks, other financiers and hedge funds have increased net longs on precious metals at the New York COMEX by a record 474 heaps (about$19.3 billion ). Meanwhile, stocks of ETF for the very same duration reduced by 35 heaps. Generally, both indicators enter one direction, validating the strength of the trend.ABN AMRO believes that in the future, costs will begin to actively decline towards the lower limitation variety of $1200-1300 per ounce thanks to 3 motorists: initially, strong macroeconomic stats from the United States that will support the dollar

; second, the probability of a boost in the Federal Reserve rate for federal funds in 2017; and, finally, the dispersion of the danger of war in between the States and North Korea.BofA Merrill Lynch, on the other hand, believes that gold will have the ability to increase to around $1,400 per ounce due to the following factors: the failure of Donald Trump and his group to carry out a package of financial reforms, growing risks of correction in US stock indices, and low interest rates on long-lasting United States bonds. The correlation of the latter with precious metals motivates” bulls” in the XAU/ USD pair for exploits.Dynamics of the yield of United States Treasury bonds and gold costs Source: Bloomberg.BofA Merrill Lynch also points to the strengthening of the euro amid the recovery of the eurozone economy.

This puts pressure on the USD index.Thus, the arguments of the challengers are clear. The further dynamics of XAU/ USD will depend on which circumstance of events will concern fulfillment. Hedge funds, which have actually increased their net longs in precious metals to their greatest levels considering that October, think in its bullish potential customers while financiers in ETF choose a mindful approach.In my viewpoint, a deep correction in the S&P 500 looks not likely. The world economy, according

to forecasts of Bloomberg experts, will speed up from 3.1%to 3.4 %in 2017. This will allow business to generate earnings not just from a weak dollar, however likewise from a strong domestic and external need. Main banks are not going to deprive the market of inexpensive liquidity. The ECB, for sure, will extend the quantitative easing program in 2018, the Bank of Japan will continue to purchase up possessions, and the Fed will lower the balance very slowly.Geopolitics, as a rule, is not a long-lasting element, unless, of course, the case ends in military actions. Few believe in the technical default of the United States and it’s time for the governmental team to observe a minimum of some success in carrying out election promises. All this presses the concept that the capacity of the XAU/ USD rally looks limited.Technically, the drop in quotes listed below the support level of$1,280 per ounce will enable the market to discuss the application of the subsidiary and mother design, “Three Motions”. Their combination is a serious argument in favor of correction to the existing uptrend.Gold, daily chart The material has been offered by InstaForex Business- www.instaforex.com

Jonathon Alexander

Crude Oil Rallies Above $48 After EIA Report

By | August 23, 2017

Crude oil prices increased Wednesday after the federal government stated crude oil costs dropped for the eighth successive week.

U.S. crude-oil stocks were down 3.3 million barrels recently, the Energy Info Administration reported. That remains in line with the other day’s report from the American Petroleum Institute.

Fuel supplies fell by 1.2 million barrels.

WTI light sweet petroleum was up 47 cents at $48.20 a barrel.

In economic news, the IHS Markit flash production buying supervisors index fell to 52.5 from 53.3 in July, while the services PMI increased to a 28-month high of 56.9, up from 54.7 in July.

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

Jonathon Alexander