Canadian Dollar Slides On Oil Cost Decrease

By | October 18, 2018

The Canadian dollar drifted lower versus its essential counterparts in the European session on Thursday, as oil rates slipped on demand worries following an overnight data revealing a big build in U.S. unrefined stocks last week.

Crude for November shipment fell $1.01 to $68.74 per barrel.

Information from the U.S. Energy Information Administration showed that U.S. crude oil stocks increased by 6.5 million barrels last week.

That marked the fourth straight weekly develop and was nearly triple what experts had actually forecast. In the previous week ending Oct. 5 also, there was a large construct of 6.0 million barrels.

Gasoline stocks fell by 2.0 million barrels recently, compared to expectations for a draw of 1.07 million barrels, while extract inventories come by 0.8 million barrels, compared to forecasts for a decrease of 1.3 million.

Further undermining the currency was a greater dollar, which was well-bid after the hawkish Fed minutes that supported expectations of a quicker rate of rate of interest walkings in the U.S.

. The minutes from the Fed’s September meeting showed broad agreement for additional rates of interest walkings on the back of robust financial development and strong labor market conditions.

The currency has been trading in an unfavorable area versus its major challengers in the Asian session.

The loonie declined to a 5-week low of 0.9321 versus the aussie, after rising to 0.9251 at 5:00 pm ET. The next possible support for the loonie is seen around the 0.95 level.

Information from the Australian Bureau of Statistics showed that the joblessness rate in Australia was available in at a seasonally adjusted 5.0 percent in September.

That was underneath expectations for 5.3 percent, which would have been unchanged.

The loonie reversed from an early high of 1.4969 versus the euro, decreasing to a 2-day low of 1.5027. If the loonie moves even more, 1.52 is likely seen as its next assistance level.

Information from Destatis showed that Germany’s wholesale prices rose at a slower rate in September.

Wholesale cost inflation slowed to 3.5 percent from 3.8 percent in August.

The loonie fell back to 1.3053 against the greenback, not far from a weekly low of 1.3056 hit at 2:45 am ET. This might be compared to a high of 1.3015 seen at 5:00 pm ET. The loonie is seen discovering support around the 1.32 level.

Information from the Labor Department revealed that newbie claims for U.S. welfare revealed a modest decline in the week ended October 13th.

The report said initial out of work claims slipped to 210,000, a reduction of 5,000 from the previous week’s modified level of 215,000.

The Canadian currency dropped back to 86.17 against the yen, from a high of 86.55 touched at 5:00 pm ET. This lacks few pips from a 2-day low of 86.14 hit at 2:15 am ET. On the downside, 85.00 is perhaps viewed as the next support for the loonie.

Data from the Ministry of Financing showed that Japan published a merchandise trade surplus of 139.6 billion yen in September.

That surpassed expectations for a deficit of 45.1 billion yen following the 444.6 billion yen deficiency in August.

Looking ahead, U.S. leading index for September is due soon.

At 12:15 pm ET, Federal Reserve Guv Randal Quarles speaks about the economic outlook at the Economic Club of New York luncheon.

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

Jonathon Alexander

EUR/USD analysis for October 18, 2018 888011000 110888 Recently, the EUR/USD pair has actually been trading downwards. The cost tested the level of 1.1490. Anyhow, according to the H1 time– frame, I have found a possible end of the down correction(expanded flat abc ), which is a sign that selling looks risky. The price rejected from the Fibonacci expansion 161.8% at the rate of 1.1490. I likewise found the breakout of the supply trendline, which is another indication that purchasers remain in control. My guidance is to watch for buying chances. The upward target is set at the cost of 1.1615. The product has been supplied by InstaForex Business-www.instaforex.com

By | October 18, 2018

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Recently, the EUR/USD pair has been trading downwards. The price tested the level of 1.1490. Anyway, according to the H1 time – frame, I have found a potential end of the downward correction (expanded flat abc), which is a sign that selling looks risky. The price rejected from the Fibonacci expansion 161.8% at the price of 1.1490. I also found the breakout of the supply trendline, which is another sign that buyers are in control. My advice is to watch for buying opportunities. The upward target is set at the price of 1.1615.

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

Jonathon Alexander

Technical analysis of AUD/USD for October 18, 2018 888011000 110888 Summary: The AUD/USD pair dealt with resistance at the level of 0.7146, while small resistance is seen at 0.7107. Support is discovered at the levels of 0.7043 and 0.6980. It should be kept in mind that a daily pivot point has currently set at the level of 0.7107. Equally crucial, the AUD/USD set is still walking around the crucial level at 0.7107, which represents a daily pivot in the H1 timespan at the moment. The AUD/USD set continued to move upwards from the level of 0.7043. The pair increased from the level of 0.7043(this level of 0.7043 accompanies the double bottom)to the leading around 0.7146. In consequence, the AUD/USD set broke resistance, which turned strong support at the level of 0.7146. The level of 0.7043 is expected to serve as major support today. From this point, we expect the AUD/USD pair to continue moving in the bullish trend from the support level of 0.7043 towards the target level of 0.7146. If the set succeeds in travelling through the level of 0.7146, the marketplace will show the bullish chance above the level of 0.7146 in order to reach the second target at 0.7179. Nevertheless, if a breakout takes place at the support level of 0.7043, then this circumstance may be invalidated.The product has been offered by InstaForex Company -www.instaforex.com

By | October 18, 2018

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Overview:

The AUD/USD pair faced resistance at the level of 0.7146, while minor resistance is seen at 0.7107. Support is found at the levels of 0.7043 and 0.6980. Also, it should be noted that a daily pivot point has already set at the level of 0.7107. Equally important, the AUD/USD pair is still moving around the key level at 0.7107, which represents a daily pivot in the H1 time frame at the moment. The AUD/USD pair continued to move upwards from the level of 0.7043. The pair rose from the level of 0.7043 (this level of 0.7043 coincides with the double bottom) to the top around 0.7146. In consequence, the AUD/USD pair broke resistance, which turned strong support at the level of 0.7146. The level of 0.7043 is expected to act as major support today. From this point, we expect the AUD/USD pair to continue moving in the bullish trend from the support level of 0.7043 towards the target level of 0.7146. If the pair succeeds in passing through the level of 0.7146, the market will indicate the bullish opportunity above the level of 0.7146 in order to reach the second target at 0.7179. However, if a breakout happens at the support level of 0.7043, then this scenario may be invalidated.

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

Jonathon Alexander

Technical analysis of EUR/USD for October 18, 2018 888011000 110888 < img width ="450"src =”http://qkfx.com/wp-content/uploads/2018/10/technical-analysis-of-eur-usd-for-october-18-2018.png “alt =”analytics5bc84e373cc3d.png”/ > Summary: Pivot: 1.1497 The EUR/USD set continues to increase from the level of 1.1497 in the long term. It should be kept in mind that the assistance is established at the level of 1.1497 which represents the 38.2 %Fibonacci retracement level on the H4 chart. The rate is likely to form a double bottom in the exact same amount of time. Accordingly, the EUR/USD pair is revealing signs of strength following a breakout of the highest level of 1.1569. So, purchase above the level of 1.1569 with the very first target at 1.1620 in order to check the day-to-day resistance 2 and further to 1.1714. It may be kept in mind that the level of 1.1714 is a good place to take earnings since it will form a double top. On the other hand, in case a turnaround happens and the EUR/USD pair breaks through the support level of 1.1497 / 1.1500, a further decline to 1.1422 can occur which would show a bearish market.The material has been offered by InstaForex Company -www.instaforex.com

By | October 18, 2018

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Overview:

Pivot: 1.1497

The EUR/USD pair continues to rise from the level of 1.1497 in the long term. It should be noted that the support is established at the level of 1.1497 which represents the 38.2% Fibonacci retracement level on the H4 chart. The price is likely to form a double bottom in the same time frame. Accordingly, the EUR/USD pair is showing signs of strength following a breakout of the highest level of 1.1569. So, buy above the level of 1.1569 with the first target at 1.1620 in order to test the daily resistance 2 and further to 1.1714. Also, it might be noted that the level of 1.1714 is a good place to take profit because it will form a double top. On the other hand, in case a reversal takes place and the EUR/USD pair breaks through the support level of 1.1497/1.1500 , a further decline to 1.1422 can occur which would indicate a bearish market.

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

Jonathon Alexander

Germany'’s Wholesale Cost Inflation Eases In September

By | October 18, 2018

Germany’s wholesale rates rose at a slower rate in September, data from Destatis revealed Thursday.

Wholesale cost inflation slowed to 3.5 percent from 3.8 percent in August.

The wholesale cost development in September was mainly affected by a 19.4 percent rise in strong fuels and petroleum items costs. Chemical item prices advanced 7.1 percent. On the other hand, costs for waste and residues fell 12.4 percent.

Month-on-month, wholesale prices increased 0.4 percent after gaining 0.3 percent in August. This was the fastest development in 3 months.

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

Jonathon Alexander

EUR/USD. A pair at the crossroads – either 1.1620 or 1.1460

By | October 17, 2018

The United States stock exchange started to recover its positions, favorably affecting the characteristics of the dollar index. The other day, the stock exchange closed with development– the Dow Jones grew by 2.1%, the S&P 500 index increased by 2.15%, and the NASDAQ Composite– by 2.89%. In general, shares increased in cost in the sphere of healthcare, customer services and innovations. In the context of the foreign exchange market, the really fact that the stock market grew is crucial, especially

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after the events of last week.< img width ="450"src=" http://qkfx.com/wp-content/uploads/2018/10/eur-usd-a-pair-at-the-crossroads-either-1-1620-or-1-1460.jpg "alt =" fH2zZU1SM9MFAbZojtXjQsOtQRdRjluT4Y4NORqo "/ > Let me advise you that the stock markets not only in the US, however in a variety of Asian nations at the end of the last 5 days have slumped rather sharply, triggering panic among traders. Donald Trump managed to blame the Federal Reserve, whose members, in his viewpoint, “went nuts”, raising the rate of interest. Well, as a “bonus” to all this really weak data on inflation in the United States was launched, which matched the dismal photo. As an outcome, the marketplace began to question that the Fed will accelerate the rate of monetary policy tightening up next year– and the possibility of a rate hike in December fell from 82% to 75%.

The future habits of the stock market was of excellent importance for traders of the currency market, and especially for dollar bulls. A regression of the collapse or a more decline would show a trend that the Fed might no longer neglect. But, obviously, the situation was settled– a minimum of at the minute. And considering that the foreign exchange market, as a guideline, lives “today”, the dollar index suspended its decrease and settled at the borders of 95 points. The yield of 10-year treasuries, which straight provoked the collapse of stock exchange, began to decline gradually, although at the moment still exceeds the three percent limit.

Simply put, the marketplace has become more cautious of the dollar (compared to the period of September), but at the same time the greenback has actually not lost its appeal, as the possibilities of a December boost are still high. The weekly CFTC reports validate the continued demand for the US currency, while speculators continue to eliminate the euro.

Such circumstances do not enable the EUR/USD to overcome the essential resistance level of 1.1620, although the bulls of the pair have consistently checked the 16th figure in recent days. However even the weakened dollar was stronger than the euro, which has “luggage issues” no less: from the long narrative on the budget of Italy, ending with an uncertain prospect of Brexit. Therefore, the pair is slowly moving into the power of bearish belief– however if we consider the timeframes above the daily one, then the EUR/USD remains in a wide variety flat, in between 1.1460 and 1.1620.

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The occasions of the next couple of days( including today’s) can cause a strong volatility in the set, provoking a relocation beyond the above rate limits. Of all, we are talking about Brexit, whose fate will be chosen today in Brussels. On the eve of the EU summit, political leaders voiced opposing views on the possible outcome of the meeting– some ensured journalists that “the offer was practically approved”, while others advised to get ready for a “tough” Brexit. This polarity of opinions has developed an intrigue that will be solved literally today or tomorrow. If settlements stop working once again, the euro will follow the pound, tumbling down. It is sensible to assume that in an alternative scenario, the EUR/USD set will have the ability to evaluate the mark of 1.1620 once again.

Regardless of the outcome of the EU top, the problem of the Italian budget likewise hangs over the euro. At the start of the week, the head of the European Commission got the draft spending plan of Italy with a deficit of 2.4%. Let me remind you that formally, the Italians did not go beyond the allowable standard in the EU, developed at the level of three percent, but at the exact same time violated their own promises, according to which the deficit was to be at the level of 0.8%. Now ought to be followed by the main response of the European Commission to the actions of Rome.

Probably, Brussels will decline this draft budget, unless the agents of Italy persuade their coworkers at the EU summit of the opposite (which is unlikely). Otherwise, Rome will have to settle the budget and reconcile it with the EU management till completion of November. It is likely that the modification of the document, the Italian authorities will still compromise, as in this case, political duty is largely shifted to the shoulders of Brussels. This is just a presumption that may not be realized.

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In any case, the European currency is now under pressure from 2 scenarios– on the one hand Brexit, on the other– Italy. The resolution of among the issues will allow the bulls of the EUR/USD set to get in the 16th figure once again, having evaluated the resistance levels for strength. Otherwise, the set will go back to the bottom of the 14th figure.The material has been supplied by InstaForex Company – www.instaforex.com

Jonathon Alexander

EUR/USD h4. Choices for the development of motion 17.10-31.10.2018. Analysis of APLs & & ZUP

By | October 17, 2018

Minute(h4)Euro vs United States Dollar Previous review from 03.10.2018 18: 21 UTC +3. ____________________ Further development of the movement of the single European currency EUR/USD in the duration 17.09-31.10.2018 will depend upon the instructions of

the breakdown of the

1/2 Average Line channel borders(1.1510

1.1575

1.1615) of the Minuette operational scale. The layout of the choices for movement within the 1/2ML channel of the Minuette operating scale exists in the animated chart. ____________________ The possibility of upward motion(buy )If the

resistance level 1.1615(upper border of the channel 1/2 Median Line Minuette)with a subsequent break above the upper border of the channel 1/2 Mean Line(1.1630)fork operational scale Minute and ISL38.2.(1.1640)-> advancement of the motion of EUR/USD to the zone equilibrium(1.1640< -> 1.1700< -> 1.1755)fork operational scale Minuette.Details are shown on the animated chart. ____________________ The prospect of the down motion(sell) The breakdown of the assistance level of 1.1535 (lower boundary of the channel 1/2 Mean Line Minuette <) -> the option of continuing the down motion of the EUR/USD to targets -> lower limit(1.1510

)channel 1/2 Median Line Minute ceiling of ISL38.2 (1.1460

)equilibrium zone of the fork of the functional scale Minute regional low of 1.1432 control line LTL Minuette( 1.1400 )with the possibility of reaching the typical line (> 1.1375) Typical Line Minute <.> Details look at the animated chart. ____________________ The evaluation is made without taking into consideration trading sessions of the main monetary centers and is not a guide to action (putting orders to “sell “or”buy

“). ZUP and Andrews’Pitchfork(terms, concepts, specifications).

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Materials for the study of analysis ZUP & APL’s.

The product has actually been provided by InstaForex & Company-www.instaforex.com

Jonathon Alexander

EURUSD: The profession of the present Fed Chairman Powell is under threat. The Fed posture a risk to the United States economy.

By | October 17, 2018

If earlier the United States president did not get personal, in the other day’s interview for

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Fox Company, Donald Trump chose to alter his concepts. We are talking about the Chairman of the Federal Reserve Jerome Powell, along with some representatives of the committee. The Fed presents a danger to the American economy Trump said that the Fed’s actions posture a hazard to the United States economy, as it raises interest rates too rapidly. The United States President also drew attention to the reality that the Fed is too independent, straight hinting that in the near future this scenario can alter dramatically. Donald Trump also stated that he does not truly like what Fed Chairman Powell does, as

well as a number of people in the United States central bank. Such declarations by the United States President were made for the first time considering that Trump took workplace. Representatives of the Fed have repeatedly kept in mind the importance of the independence status of the committee, but, apparently, whatever pertains to an end eventually.

The main issue now for the US President is to prevent a slowdown in financial growth, which will take down a lot of other financial signs and trigger a great deal of discontent. And along the method is the Federal Reserve, which continues to raise rates of interest, fearing overheating of the nationwide economy and a sharp dive in inflation, which in turn slows the circulation of low-cost cash to the market, contributing to the stimulation of economic growth.

The speech of Mary Daly, the brand-new head of the San Francisco Fed, was rather foreseeable.

Daly said that the United States economy is not overheated or cooled, and the Fed’s task is to preserve this level. Of the advantages, Daly kept in mind that the US has an extremely quick GDP growth, the labor market is at its peak, and inflation is near the target of 2%.

Daly also drew attention to the fact that it makes good sense for the Fed to gradually raise rate of interest, however did not state how she would vote at the November conference of the Federal Free Market Committee.

United States Essential Data

Yesterday afternoon, a variety of data was published, which did not allow the euro to break through above crucial resistance levels.

According to the report of the United States Federal Reserve, commercial production in the US in September this year again increased by 0.3% compared to the previous month. Economic experts had actually anticipated production growth of 0.2 percent in September. The strongest growth remained in the mining sector, which acquired 0.5% in September.

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The confidence indication of United States construction business grew in October. According to the National Association of Home Builders, the real estate market index increased by one point to 68 points in October. Economists had anticipated the real estate market index to be 67 points in September.

High demand for housing versus the background of a progressive rise in the expense of borrowing, as well as good financial development encourage builders. The indications are adversely affected by costs, which continue to update the highs.

When it comes to the technical photo of the EUR/USD pair, it has actually not altered.

The result of the bears is a go back to the level of 1.1570, which is now necessary to keep. If this is done, the pressure on risky properties will stay, which will cause the test and the breakdown of the lower limit of 1.1535 with a sell-off in the location of 1.1490. If buyers return to the level of 1.1570, we can expect a second wave of growth of the EUR/USD with the breakdown of the ceiling of 1.1605 and a big increase to the high of 1.1650.

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

Jonathon Alexander