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Wave Analysis by InstaForex


Elliott wave analysis of EUR/NZD for June 9, 2017

Wave summary:

Wave ii/ has extended it's decline to 1.5468, which should be more than enough to complete wave ii/ and set the stage for a rally higher in wave iii/ towards 1.6655.

That said, we will need a break above minor resistance seen at 1.5720 to confirm that wave ii/ has completed and wave iii/ is developing.

R3: 1.5720
R2: 1.5667
R1: 1.5594
Pivot: 1.5525
S1: 1.5462
S2: 1.5391
S3: 1.5342

Trading recommendation:
WE are long EUR from 1.5540 and will place our stop at 1.5340.

Analysis are provided by InstaForex

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Elliott wave analysis of EUR/NZD for June 13, 2017

Wave summary:

We continue to look for confirmation that the corrective decline from 1.6237 has completed. The first strong indication will be a break above the resistance line seen at 1.5636, while a break above resistance at 1.5720 will add confidence in wave iii/ developing towards 1.6655.

R3: 1.5931
R2: 1.5720
R1: 1.5636
Pivot: 1.5600
S1: 1.5491
S2: 1.5439
S3: 1.5369

Trading recommendation:
We are long EUR from 1.5540 with stop placed at 1.5340. If you are not long EUR yet, then buy a break above 1.5636 and use the same stop.

Analysis are provided by InstaForex

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Elliott wave analysis of EUR/JPY for June 14, 2017

Wave summary:
Not really much to add here. The triangle consolidation remains the preferred outlook. We continue to look for wave d closer to 134.62 before the final dip lower in wave e to complete the triangle consolidation, setting the stage for renewed upside pressure towards 134.58 and likely even closer to 138.52.

Only an unexpected break below 122.53 will shift to an alternate corrective structure.

R3: 124.04
R2: 123.73
R1: 123.40
Pivot: 123.20
S1: 123.00
S2: 122.77
S3: 122.53

Trading recommendation:
We are neutral for now.

Analysis are provided by InstaForex

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Technical analysis of USD/JPY for June 15, 2017

In Asia, Japan today will not release any Economic Data, but the US will release some Economic Data, such as TIC Long-Term Purchases, Natural Gas Storage, NAHB Housing Market Index, Industrial Production m/m, Capacity Utilization Rate, Philly Fed Manufacturing Index, Import Prices m/m, Empire State Manufacturing Index, and Unemployment Claims. So, there is a probability the USD/JPY will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:
Resistance. 3: 110.14.
Resistance. 2: 109.92.
Resistance. 1: 109.71.
Support. 1: 109.44.
Support. 2: 109.23.
Support. 3: 109.01.

Analysis are provided by InstaForex

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Elliott wave analysis of EUR/NZD for June 16, 2017

Wave summary:

Our preferred count remains that a low likely was seen with the test of 1.5370 and wave iii/ higher is ready to develop. That said, we need a break above the resistance line near 1.5532 to confirm that wave ii/ has completed and wave iii/ higher to above 1.6237 is developing. Until the break above the resistance-line near 1.5532 is seen, we must allow for a retest of the 1.5370 low and even a spike below, but that should be short lived.

R3: 1.5564
R2: 1.5517
R1: 1.5480
Pivot: 1.5460
S1: 1.5453
S2: 1.5424
S3. 1.5370

Trading recommendation:
We are long EUR from 1.5540 with stop placed at 1.5340. If you are not long EUR yet, then buy a break above 1.5532 and use the same stop.

Analysis are provided by InstaForex


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Elliott wave analysis of EUR/NZD for June 19, 2017

Wave summary:
The corrective decline in wave ii/ will not loosen its grip and it has now spiked below support at 1.5423, this opens for more downside pressure towards 1.5261 as long as the resistance line near 1.5500 and more importantly as long minor resistance at 1.5564 is able to cap the upside. However, a break above this resistance will indicate that wave ii/ has completed and wave iii/ towards 1.6655 is developing.

R3: 1.5544
R2: 1.5485
R1: 1.5415
Pivot: 1.5400
S1: 1.5347
S2: 1.5300
S3: 1.5261

Trading recommendation:
Our stop was hit for a loss. We will only buy a break above 1.5564.

Analysis are provided by InstaForex

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Daily analysis of USDX for June 20, 2017

USDX was favored by the bulls above the 200 SMA at H1 chart and it's heading to break above last Friday's highs. If that happens, we can expect a target to be reached around 97.75, which should add strength to bulls' force in the short-term. By the other side, if the index pulls back at the current stage, then a testing of the 96.95 level is likely to happen.

H1 chart's resistance levels: 97.41 / 97.75
H1 chart's support levels: 96.95 / 96.70

Trading recommendations for today:
Based on the H1 chart, place buy (long) orders only if the USD Index breaks with a bullish candlestick; the resistance level is at 97.41, take profit is at 97.75 and stop loss is at 97.07.

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Technical analysis of EUR/USD for June 21, 2017

When the European market opens, some Economic Data will be released, such as German 30-y Bond Auction. The US will release the Economic Data, too, such as Crude Oil Inventories and Existing Home Sales, so, amid the reports, EUR/USD will move in a low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:
Breakout BUY Level: 1.1189.
Strong Resistance:1.1183.
Original Resistance: 1.1172.
Inner Sell Area: 1.1161.
Target Inner Area: 1.1135.
Inner Buy Area: 1.1109.
Original Support: 1.1098.
Strong Support: 1.1087.
Breakout SELL Level: 1.1081.

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Fundamental Analysis of USD/CHF for June 22, 2017

Recently USD/CHF has been quite corrective in nature after the price broke above the 0.97 resistance after breaking it below with a daily close. Currently, the price is residing inside a corrective range area between 0.97 to 0.98. CHF has been dominating USD since the negative employment report of USD this month and CHF is expected to dominate further if the upcoming CHF economic reports come out positive. Today CHF Trade Balance report is going to be published which is expected to rise to 2.44B from previous value of 1.97B and as the export demand and currency demand is directly linked for which a positive Trade Balance reports is expected to provide more strength to CHF to gain against USD in the future. On the USD side today, Unemployment Claims report is going to be published which is expected to rise to 241k from the previous figure of 237k, as the expectation is quite negative on the USD, positive Trade Balance report is expected to help CHF to gain further in the coming days. If the USD Unemployment Claims report comes out better than expected then the price is expected to remain inside the range of 0.97-0.98 area in the coming days until any high impact economic events of the currencies publish in the future.

Now let us look at the technical view, the price is currently residing between the range of 0.97 to 0.98 area. As a strong bearish trend in place and recent impulsive bearish move in this pair, currently more bearish movement in this pair is expected but a daily close below 0.97 will confirm the further downward movement in this pair with a target towards 0.9550 support area. The bearish bias will continue until the price breaks above 0.98 resistance level with a daily close above it.


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Technical analysis of USD/CHF for June 23, 2017

Overview:
The USD/CHF pair. The current price is seen at 0.9736 to act as a daily pivot point. The USD/CHF pair didn't make any significant movements yesterday. The bias remains bearish in the nearest term testing 0.9769or higher It should be noted that volatility is very high for that the USD/CHF pair is still moving between 0.9769 and 0.9691 in coming hours. Furthermore, the price has been set below the strong resistance at the levels of 0.9751 and 0.9769. Additionally, the price is in a bearish channel now. Amid the previous events, the pair is still in a downtrend. From this point, the USD/CHF pair is continuing in a bearish trend from the new resistance of 0.9751/0.9769. Thereupon, the price spot of 0.9751/0.9769 remains a significant resistance zone. Therefore, a possibility that the USD/CHF pair will have downside momentum is rather convincing and the structure of a fall does not look corrective. In order to indicate a bearish opportunity below 0.9751, sell below 0.9751 with the first targets at 0.9706, 0.9691 and 0.9673. On the other hand, the stop loss should be located above the level of 0.9769.

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Daily analysis of USDX for June 27, 2017

USDX is being capped by the resistance level of 97.42 and it's targeting the resistance level of 97.84 as the next key area for sellers. There is not a clear trend in the index amid sideways' start of the week for most of the markets. If the support level of 97.10 gives up in favor of the bears, then it can decline towards 96.87.

H1 chart's resistance levels: 97.43 / 97.84
H1 chart's support levels: 97.10 / 96.87

Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the USD Index breaks with a bullish candlestick; the resistance level is at 97.43, take profit is at 97.84 and stop loss is at 97.00.

Analysis are provided by InstaForex

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Technical analysis of USD/CHF for June 28, 2017

Overview:

The USD/CHF pair has kept moving downwards from the level of 0.9701. Yesterday, the pair dropped from the level of 0.9701(this level of 0.9701 coincides with the ratio of 61.8% Fibonacci retracement) to the bottom around 0.9591. Today, the first resistance level is seen at 0.9660 followed by 0.9701, while daily support 1 is seen at 0.9545. According to the previous events, the USD/CHF pair is still moving between the levels of 0.9660 and 0.9545; for that, we expect a range of 115 pips (0.9660 - 0.9545). If the USD/CHF pair fails to break through the resistance level of 0.9545, the market will decline further to 0.9500 in coming days. This would suggest a bearish market because the RSI indicator is still in a positive area and does not show any trend reversal signs. On the contrary, if a breakout takes place at the resistance level of 0.9731 (the double top), then this scenario may become invalidated.

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Daily analysis of USDX for June 29, 2017

Overview:

USDX is accelerating the downside and it looks can reach the support zone of 95.77 in coming hours. If the index manages to consolidate its price action below 95.77, then it's likely to test the support area of 95.10. However, we expect a recovery to take place, focusing on the resistance zone of 96.77, which coincides with the 200 SMA at H1 chart.

H1 chart's resistance levels: 96.77 / 97.20
H1 chart's support levels: 96.38 / 95.77

Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the USD Index breaks with a bearish candlestick; the support level is at 95.77, take profit is at 95.10 and stop loss is at 96.42.

Analysis are provided by InstaForex

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Elliott wave analysis of EUR/NZD for June 30, 2017

Wave summary;

Red wave ii is likely turning into an expanded flat correction, which calls for a final decline to just below 1.5480 before turning strongly higher in red wave iii. After an expanded flat wave two correction, the following wave three rallies should be expected to extend and that will call for a rally to at least 1.6232 and possibly even higher.

R3: 1.5931
R2: 1.5801
R1: 1.5712
Pivot: 1.5650
S1: 1.5600
S2: 1.5500
S3: 1.5450

Trading recommendation:
We are long EUR from 1.5645 with stop placed at 1.5210. If you are not long EUR yet, then buy EUR near 1.5450 and use the same stop.

Analysis are provided by InstaForex

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Technical analysis of USD/JPY for July 03, 2017

In Asia, Japan will release the Consumer Confidence, Final Manufacturing PMI, Tankan Non-Manufacturing Index, and Tankan Manufacturing Index data, and the US will release some Economic Data, such as Total Vehicle Sales, ISM Manufacturing Prices, Construction Spending m/m, ISM Manufacturing PMI, and Final Manufacturing PMI. So, there is a probability the USD/JPY will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:
Resistance. 3: 112.87.
Resistance. 2: 112.65.
Resistance. 1: 112.43.
Support. 1: 112.16.
Support. 2: 111.94.
Support. 3: 111.72.

Analysis are provided by InstaForex

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Technical analysis of EUR/USD for July 04, 2017

When the European market opens, some Economic Data will be released, such as PPI m/m and Spanish Unemployment Change. Today, the US will not release any Economic Data, so, amid the reports, EUR/USD will move in a low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:
Breakout BUY Level: 1.1427.
Strong Resistance:1.1420.
Original Resistance: 1.1409.
Inner Sell Area: 1.1398.
Target Inner Area: 1.1371.
Inner Buy Area: 1.1344.
Original Support: 1.1333.
Strong Support: 1.1322.
Breakout SELL Level: 1.1315.

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Eurozone inflation is not happy

If the buyers of the European currency make an attempt to create an upward movement in the first half of the day, then the weak data on eurozone inflation will scare the rest of the traders who are willing to acquire risky assets, at least for today. In the afternoon, many markets will be closed due to the US Independence Day.

Eurozone producer prices fell again in May indicating weak inflation despite the faster economic growth in the area.

According to the European Union's statistics agency, the eurozone producer price index declined by 0.4% from April's data. Although, compared with the same period in 2016, the index grew by 3.3%. The month-to-month drop was bigger that the 0.1% decrease that economists expected.

Slowing inflation may again be a major headache for the European Central Bank which is currently carrying out various methods to help the economy including implementation of negative interest rates and the asset purchase program to try and achieve stable economic growth and a basic inflation rate under 2.0% .

The statements of the ECB President last week was not able to give assurance that the central bank will immediately reduce monetary policies to stimulate the economy.

The reaction of the Australian dollar to the statements made by the Reserve Bank of Australia may indicate a turning point in the upward movement that began last month.

According to reports released today, the Reserve Bank of Australia left its benchmark interest rate unchanged at 1.50% saying that interest rates are consistent with their objectives in relation with the GDP and inflation. The bank also expects the gradual strengthening of the Australian economy that will be positively affected by the continued large-scale acceleration of global growth.

An important issue for the regulator is the active strengthening of the Australian dollar which will complicate the adjustment of the economy and lower wage growth. As for the Australian labor market, the RBA economists are satisfied with the increase in employment growth in recent months. Despite this, the market indicators themselves remain ambiguous.

From a technical point of view, the five-day growth of the Australian dollar should have undergone a downward correction. However, it's still very early to talk about a turning point for buyers. It is possible that when returning to the lower limit of 0.7549, there will be a demand again for the Australian dollar which is expected to continue towards an upward trend in the medium-term for the trading instrument. Also, large resistance levels around 0.7725 and 0.7765 have not been updated. After testing, one could definitely expect a larger downward correction for the Australian dollar.

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The euro and the pound slipped slightly against the US dollar

Versatile fundamental statistics from the euro area today has led to a small sale of the euro against the US dollar.

The data, which was released in the morning, showed that the German Services PMI (Purchasing Managers Index) for June increased beyond the preliminary estimate.

According to the IHS Markit report, the German Final Services PMI index grew to 54.0 points against the expected 53.7 points. Meanwhile, the German Composite PMI was at 56.4 points and has been adjusted in respect to the preliminary estimate of 56.1 points. IHS Markit expects that this year, Germany's GDP growth will be 2%.

Bad data on the euro area led to the sale of euro. Despite this, the projection for the eurozone's economic recovery is for it to accelerate in the second quarter of the year.

The IHS Markit report also added that the final composite PMI for the eurozone dropped to 56.3 points for the month of June from 56.8 points in May. Taking into account the preliminary data where the index was expected to decline to 55.7 points, it can be said that there is a slight slowdown in growth because of a time factor.

On the other hand, retail sales in the euro area rose. According to Eurostat. Retail sales in May grew by 0.4% from April's data, significantly exceeding the forecasts of economists. The data may lead to a more stable economic growth rate for the second quarter. Inflation will also be positively affected as expected by the European Central Bank recently.

As for the technical picture of the EURUSD pairing, sellers are trying to reach for a consolidation below 1.1340 which can lead to a new round of selling for the European currencies. However, the pressure on the euro is most likely to remain on the Fed's protocol meeting later today.

It is expected that a more detailed study will make it clear when the committee will start reducing their asset portfolio. Currently, experts anticipate the reduction on September of this year.

Meanwhile, the British pound ignored the date for the services sector.

According to the IHS Markit report, the PMI for the UK service sector fell to 53.4 points in June from 53.8 points in May. Despite a slight decline, the service sector remains a major factor for the UK's economic growth. The service sector results could also be a wake-up call for the Bank of England who is currently focused on tightening monetary policies. Economists expected the index to be at 54.5 points.

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Strong Data from ADP will Support the Dollar

The Fed's minutes of meeting on June did not show any surprise. With the fact of continuing the Bank's plan to normalize monetary policy with some minor restrictions. On the back of this, the market players cautiously assess the incoming data from the US economic statistics.

In consideration of the published figures, the US dollar was able to gain support, however, not so significant. Today, taking off the market will focus on the release of preliminary data from ADP employment in the private sector of the American economy. They traditionally precede the release of the official figures from the US Department of Labor, which will be issued tomorrow.

According to the forecast from Bloomberg news agency, the number of new jobs in the private sector should grow by 180,000 in June. It can be recalled that the May figures were at the level of 253,000. The consensus forecast assumes a range from 140,000 to 253,000.

It can be assumed that if the data from ADP proves to be positive, holding out or above the forecast level, then it can push the dollar to a new local growth, which will only heighten the wave of publishing the same strong data from the Department of Labor.

Recent developments in the market clearly indicate that the presentation of investors about the prospects for the Fed's monetary policy, though with a creak, but impacts the minds of the most stubborn market players. Therefore, the good news from the labor market will only support the dollar on the wave of keeping the plans of the Federal Reserve.

While other important data that should pay attention today are the figures of applications for unemployment benefits, the index of US business activity in the non-manufacturing sector (PMI) from the ISM for June, of course, the data from the US Department of Energy. In addition, it is expected that FRS member Powell and ECB representative Praet will make some comments. Also, the minutes of June meeting of the ECB will be presented.

Forecast of the day:
The pair EURUSD is still in the short-term downtrend followed by the strengthening of the US dollar. It is expected that when the ADP data came in lower than forecasts, then the pair will resume a smooth correction down to 1.1280 after breaking through the level of 1.1320.

The pair USDJPY is trading above 113.00, hovering in the range of 113.00-113.60. A breakout of the upper range limits the wave of positive data from the ADP which would likely lead to the pair's growth to 114.25.

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Technical analysis of EUR/USD for July 10, 2017

When the European market opens, some Economic Data will be released, such as Sentix Investor Confidence and German Trade Balance. The US will release the Economic Data, too, such as Consumer Credit m/m and Labor Market Conditions Index m/m, so, amid the reports, EUR/USD will move in a low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:
Breakout BUY Level: 1.1457.
Strong Resistance:1.1451.
Original Resistance: 1.1440.
Inner Sell Area: 1.1429.
Target Inner Area: 1.1404.
Inner Buy Area: 1.1377.
Original Support: 1.1368.
Strong Support: 1.1356.
Breakout SELL Level: 1.1350.

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The Growth of the World Economy May Slow Down

The absence of significant fundamental data causes the market to remain in a state of inactivity. Low volatility today locks several currency pairs in the side channels.

A slight strengthening of the euro was seen only at the beginning of the European session. Growth took place after data showed that Germany's exports in May this year revealed significant growth. This happened against a backdrop of good recovery in global demand since the start of this year.

According to the Federal Statistical Office of Germany, the export of goods in May 2017 rose by 1.4% and reached 107.9 billion euros. Compared with the same period of 2016, German exports rose by 14.1%.

Imports of goods did not lag behind export growth. According to data, in May of this year, imports to Germany grew by 1.2% compared with April and amounted to 87.6 billion euros. Compared to May 2016, the indicator rose by 16.2%.

Overall, Germany's trade surplus in May amounted to 20.3 billion euros, while economists had expected an increase of up to 20.1 billion euros.

An interesting forecast was published today by UBS, as it says that by next year the ECB will buy bonds of approximately 180 billion. UBS believes that the European Central Bank will announce a reduction in the program in September of this year, and by January 2018 it will reduce monthly purchases from 60 to 40 billion euros. In June, according to UBS analysts, this program will end.

If we proceed from this forecast, the demand for the euro in the summer will remain within the maximum range of 1.1450-1.1600. Overcoming this critical range will be possible only after an actual announcement of the completion of the bond purchasing program has been made by the ECB, before the Federal Reserve implements programs aimed at reducing the balance sheet, as well as another hike in interest rates, which is also scheduled for early autumn.

Today the report of the Organisation for Economic Co-operation and Development showed that its composite leading indicator remained steady at the level of 100 points in May of this year compared with 100 points in April.

The OECD revised the likelihood of accelerating global growth downwards. Mainly due to uncertain growth prospects for the US, UK and Russia, which have declined. In terms of positive data, we can note good prospects of accelerating growth for the economies of China and France.

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The market is at rest

Yesterday's data on the US and the speech of the President of the Federal Reserve Bank of San Francisco, John Williams, did not give proper to the US dollar.

According to the report of the research group, Conference Board, the index if employment trends in the US for May of this year was revised down to 133.32 points from 133.70 points.

The growth in consumer lending in the US also indicates a stable situation in the US economy.

According to the data provided by the statistics agency, consumer lending in the US for May this year increased by $ 18.41 billion following a growth of $ 12.9 billion in the previous month of April.

Yesterday's speech by the Federal Reserve representative, John Williams, did not lead to major changes in the market.

Williams said that if inflation slows down, it will be in favor of further gradual tightening of monetary policy. This means another increase in interest rates this years is a reasonable baseline scenario.

He also noted that at the present time, there are a lot of signs that the economy is strengthening including the growth of salaries in the US which is in line with expectations. In his opinion, the US fiscal policy is on an unstable path and the reforms that the White house wants to hold will help to improve the situation.

With regard to the reduction of balance, Williams said that it makes sense to begin the normalization as soon as possible this year.

In general, the Federal Reserve representative along with his colleagues did not say anything new. Because of this, the market reaction to his statements did not follow.

As for the technical picture of the EURUSD pair, everything remains the same.

The support level at 1.381 is important since the current upward trend formed on last July 5 will depend on it. A breakthrough in this area will lead to the demolition of a number of stop orders and a decrease in the trading instruments that are already in the support level of 1.1330. If the buyers of the European currency manage to tighten it to the middle level of the channel at 1.1410, then it is likely that the bull scenario will continue to update with the monthly highs of 1.1440 to 1.1470.

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Yellen's words will be fatal for the dollar

Speeches by members of the Federal Reserve, Brainard and Kashkari, caused the US dollar to collapse on Tuesday. Their words raised fears that the Fed will not risk raising rates anymore for this year and perhaps in the next year too.

In the address of Fed representative, Lael Brainard, she expressed doubts that the next increase in interest rates would occur this year.She reasoned that there are fears caused by the slowing rate of inflation. Despite this, Brainard still actively advocates the beginning of the Central Bank balance sheet reduction saying that it will happen "in the near future." She said that the strong labor market indicates an acceleration in economic activity and that this chance should not be missed. It is necessary to start a smooth and, most importantly, an expected reduction in the bank balance of $4.5 trillion which was mainly accumulated during the three quantitative easing programs.

The most radical comment came from a well-known opponent of the monetary policy tightening, Fed member, Neel Kashkari. The President of the Federal Reserve Bank of Minneapolis, Kashkari, said yesterday that the slowdown in wage growth rate indicates the absence of "overheating" in the economy. Hence, inflationary pressure is not so strong. That's why there is no reason for raising interest rates. He once again confirmed the thesis that the rate hike is a mistake and can lead to negative consequences. Kashkari is the most consistent opponent of tightening the Fed's monetary policy.

Of course, against this background and because of today's expectations on Federal Reserve head, Janet Yellen's speech to the US Congress, the dollar on Tuesday dropped significantly against the euro and the yen. This is caused by the uncertainty in market regarding what the head of the world's biggest central bank would say.

It can be assumed that if her speech is reasonably optimistic today, then the weakening of the dollar will soon stop and it may even grow against the euro and the yen on the wave of partial closure of long positions in these currencies. Further growth in the dollar may resume only if Friday's inflation data in the States prove to be positive. However, if Yellen expresses even some doubt that interest rates will be raised this year again, then the weakening of the dollar will continue. This will also increase the wave of inflation data that is already high, if she disappoints. Forecast of the day:

The EUR/USD currency pair is corrected down after reaching a new local maximum, However, it can continue to decline on if the speech to the Congress of the head of the Federal Reserve, Janet Yellen, contains positive sentiment regarding the prospects of the US economy. On this wave, the price decline below the 1.1445 mark may turn lower to the 1.1385 mark and then to 1.1320.

The USD/JPY currency pair fell on the wave of uncertain growth in the Fed's monetary policy report which will be presented today along with Yellen's speech in the Congress. However, the situation may change if the report and the speech are positive. In this case, the price can overcome the 113.60 mark and strive to the 114.25 mark.

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The U.S. Maintains Moderate Inflationary Pressure

Data on consumer price inflation in Germany did not support the European currency, as it was fully in line with economists' forecast.

Given the fact that the data was in line with expectations, a new trend in relation to the buying of the European currency, which was observed at the Asian session, was not formed.

According to the statistics agency, the final consumer price index of Germany in June this year increased by 0.2% compared with May.

Core inflation, which excludes the volatile categories of goods, also increased.

Today, there were talks in the market that in August ECB President Mario may express the strengthening of the central bank's confidence in the eurozone economy, which could weaken its dependence on monetary stimulus.

If the future of the current stimulus program , under with the ECB buys assets worth

In the second half of the day, the data on US inflation was released, which was slightly different from the forecasts of economists.

According to a report of the US Department of Labor, the indicator for the final demand in the US rose in June, indicating a moderate increase in inflationary pressure in the economy.

In general, the technical picture in the EURUSD pair remains on the side of the US dollar buyers, and will depend much on what the chairman of the Federal Reserve Janet Yellen says, since it is her remarks that will determine the future direction in the trading instrument.

A break of support at 1.1380 resume sales on EURUSD, which will lead to the renewal of 1.1330 and 1.1250. The return to the level of 1.1420 will serve as an opportunity to build new long positions in order to return to monthly highs in the 1.1500 area.

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The dollar remained without support

The US dollar finished the week with large-scale sales, never seeing a single factor that could support it. The formal reason for the decline in investor confidence was the report of the Bureau of Labor Statistics on inflation, but this was not the only reason.

Consumer prices remained unchanged in June while annual inflation slowed to 1.6% from 1.9% a month earlier. Both indicators were worse than expected.

Also an unpleasant surprise was the decline in retail sales for the second month in a row. Experts expected a slight increase. The slowdown in consumer activity is an alarming factor as it indicates that incoming signals, one after another, about slower economic growth are not accidental and will likely cause a crisis to develop.

The preliminary value of the consumer confidence index according to the University of Michigan was significantly lower than expected at 93.1 points in July against the forecast of 95.0 points and last month's figure of 95.1 points. The subindex of expectations are declining at the fastest rate, indicating that consumers are preparing for a deterioration in the outlook for the coming months.

The GDPNow model from the Federal Reserve Bank of Atlanta forecasts the US GDP growth for the second quarter at 2.4%. This is higher than the result of the first quarter but significantly below expectations. The first estimate, which was presented in May, came out at 4.3%. At the time, it seemed that the positive momentum in the economy will develop but for two months in a row, the key macroeconomic indicators are worse than forecasts.

The Federal Reserve Bank of New York expects that GDP growth will be at 1.9% in Q2. However, this estimate may be too optimistic. At any rate, Fed Chairman Janet Yellen, speaking in Congress, said that achieving an economic growth of 3% "will be pretty hard." Recalling the basic scenario by the Congressional Budget Office (CBO), the average annual growth is set at 4%. Even in this case, the budget deficit in the next ten years will grow to 1.5 trillion dollars and reach a GDP of 5.2%. Weaker growth will significantly accelerate the development of a negative scenario. It can only be overcome through swift and decisive reforms while the situation develops in the opposite way. As indicated in the report of the Ministry of Finance published on Thursday, the budget deficit in June amounted to 90.233 billion dollar within the nine months of the current fiscal year. The negative balance grew by 31% and reached 523 billion. There is no reason to expect that the situation may change as the collection of taxes is reduced. Against the background of a drop in consumer activity, there is no chance of an increase of tax collection.

Actually, it was the reassessment of the player's prospects for the development of the situation that caused the dollar to fall sharply on Friday. It's not just a matter of low inflation. The fact is that even optimistic models (and the optimistic CBO forecast) do not see good exit scenarios. The Fed may begin to reduce the balance sheets in the coming months. In any case, the preparation of public opinion for this step is being carried out purposefully. Yesterday, the head of the Federal Reserve Bank of Dallas, Robert Kaplan, said that it is necessary to start reducing the Fed's balance sheet "very soon", possibly in September. Low inflation, in his opinion, is temporary. He also added that the achievement of full employment will contribute to higher prices.

The beginning of the reduction in the balance of the Fed means terminating the practice of refinancing revenues. In other words, the Fed will gradually reduce the repayment of government debts which, against the background of a growing budget deficit and a reduction in the collection of taxes, can have extremely unpleasant consequences for the Trump administration. In September, the government should already receive a result regarding the level of borrowing from the Congress. This will exhaust the latest resources for financing current activities and will make them face the prospect of technical default. However, in order for the Congress to meet Trump and raise the ceiling of national debt, it will be necessary to convince him of the feasibility plans for reforming the tax and health policies. It is necessary to present these plans formally.

Thus, for the dollar, there is still no reason to resume growth.

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Technical analysis of EUR/USD for July 18, 2017

When the European market opens, some Economic Data will be released, such as ZEW Economic Sentiment and German ZEW Economic Sentiment. The US will release the Economic Data, too, such as NAHB Housing Market Index and Import Prices m/m, so, amid the reports, EUR/USD will move in a low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:
Breakout BUY Level: 1.1528.
Strong Resistance:1.1521.
Original Resistance: 1.1510.
Inner Sell Area: 1.1499.
Target Inner Area: 1.1472.
Inner Buy Area: 1.1445.
Original Support: 1.1434.
Strong Support: 1.1423.
Breakout SELL Level: 1.1416.

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Technical analysis of NZD/USD for July 19, 2017

Overview:
The NZD/USD pair is showing signs of strength following a breakout of the highest level of 0.7307. On the H1 chart. the level of 0.7307 coincides with 61.8% of Fibonacci, which is expected to act as minor support today. Since the trend is above the 61.8% Fibonacci level, the market is still in an uptrend. So, major support is seen at the level of 0.7307. Furthermore, the trend is still showing strength above the moving average (100). Thus, the market is indicating a bullish opportunity above the above-mentioned support levels, for that the bullish outlook remains the same as long as the 100 EMA is headed to the upside. Therefore, strong support will be found at the level of 0.7307 providing a clear signal to buy with a target seen at 0.7372. If the trend breaks the minor resistance at 0.7372, the pair will move upwards continuing the bullish trend development to the level 0.7400 in order to test the daily resistance 1. However, it would also be sage to consider where to place a stop loss; this should be set below the second support of 0.7287.

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Technical analysis of USD/JPY for July 20, 2017

In Asia, Japan will release the BOJ Press Conference, All Industries Activity m/m, BOJ Policy Rate, BOJ Outlook Report, Monetary Policy Statement, and Trade Balance data, and the US will release some Economic Data, such as Natural Gas Storage, CB Leading Index m/m, Philly Fed Manufacturing Index, and Unemployment Claims. So, there is a probability the USD/JPY will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:
Resistance. 3: 112.43.
Resistance. 2: 112.21.
Resistance. 1: 112.01.
Support. 1: 111.73.
Support. 2: 111.51.
Support. 3: 111.29.

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Technical analysis of USD/CHF for July 21, 2017

Overview:

The USD/CHF pair.
Pivot: 0.9590.
The swissy fell from the level of 0.9665 to bottom at 0.9523. The USD/CHF pair has faced strong support at the level of 0.9523 (the double bottom). Current price is around the spot of 0.9520. So, the strong support has been already faced at the level of 0.9523 and the pair is likely to try to approach it in order to test it again and form a double bottom. Hence, the USD/CHF pair is continuing to trade in a bullish trend from the new support level of 0.9523; to form a bullish channel. According to the previous events, we expect the pair to move between 0.9523 and 0.9665. Also, it should be noted major resistance is seen at 0.9665, while immediate resistance is found at 0.9590. Then, we may anticipate potential testing of 0.9665 to take place soon. Moreover, if the pair succeeds in passing through the level of 0.9665, the market will indicate a bullish opportunity above the level of 0.9665. A breakout of that target will move the pair further upwards to 0.9746. Buy orders are recommended above the area of 0.9523 with the first target at the level of 1.9590 and continue towards the levels of 0.9665 and 0.9746. However, if the USD/CHF pair fails to break out through the resistance level of 1.9590; the market will decline further to the level of 0.9453.

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NZD/USD Intraday technical levels and trading recommendations for July 24, 2017

analytics59758ba831b61.png

Daily Outlook

The NZD/USD pair has been trending up within the depicted bullish channel since January 2016.

In November 2016, early signs of bullish weakness were expressed on the chart when the pair failed to record a new high above 0.7400.

A bearish breakout of the lower limit of the channel took place in December 2016. In February 2017, the depicted short-term downtrend was initiated in the depicted supply zone (0.7310-0.7380).

However, a recent bullish breakout above the downtrend line took place in May 22. Since then, the market has been bullish as depicted on the chart.

The price zone of 0.7150-0.7230 (SUPPLY ZONE in confluence with 61.8% Fibonacci level) stood as a temporary resistance zone until a bullish breakout was expressed above 0.7230.

This resulted in a quick bullish advance towards the next supply zone around 0.7310-0.7380 which is being temporarily breached to the upside.

Now the price zone of 0.7310-0.7380 turns to be a newly-established demand-zone to be watched for possible bullish rejection if any bearish pullback occurs.

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-- Edited by IFX Yvonne on Monday 24th of July 2017 06:54:47 AM

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AUD/USD prepare to sell on break of key support

The price is hovering above key support at 0.7871 (Fibonacci retracement, horizontal swing low support) and we prepare to sell once price breaks this key level. Our profit target is a push down to next key support level at 0.7741 (Fibonacci retracement, horizontal pullback support).

RSI (55) is seeing bearish momentum within its bearish descending channel.

Sell below 0.7871. Stop loss is at 0.7937. Take profit is at 0.7741.

analytics5976aaf645232.png


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-- Edited by IFX Yvonne on Tuesday 25th of July 2017 06:56:01 AM

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USD/CHF profit target reached perfectly, prepare to sell

The price has shot up perfectly and reached our profit target from yesterday. We prepare to sell below major resistance at 0.9530 (Fibonacci retracement, Fibonacci extension, horizontal pullback resistance) for a push down to at least 0.9436 support (Fibonacci extension, horizontal swing low support).

Stochastic (55,5,3) is right on major resistance at 95%.

Sell below 0.9530. Stop loss is at 0.9563. Take profit is at 0.9436.

analytics5977f6a537527.png

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-- Edited by IFX Yvonne on Wednesday 26th of July 2017 07:11:53 AM

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Technical analysis of EUR/USD for July 27, 2017

When the European market opens, some Economic Data will be released, such as Private Loans y/y, M3 Money Supply y/y, GfK German Consumer Climate, and Spanish Unemployment Rate. The US will release the Economic Data, too, such as Natural Gas Storage, Prelim Wholesale Inventories m/m, Goods Trade Balance, Durable Goods Orders m/m, Unemployment Claims, and Core Durable Goods Orders m/m, so, amid the reports, EUR/USD will move in a low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:
Breakout BUY Level: 1.1787.
Strong Resistance:1.1780.
Original Resistance: 1.1769.
Inner Sell Area: 1.1758.
Target Inner Area: 1.1730.
Inner Buy Area: 1.1702.
Original Support: 1.1691.
Strong Support: 1.1680. Breakout SELL Level: 1.1673.

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Technical analysis of USD/CHF for July 28, 2017

Overview:

The USD/CHF pair broke resistance which turned to a strong support at the level of 0.9579 yesterday. The level of 0.9579 coincides with 38.2% of Fibonacci, which is expected to act as a major support today. Since the trend is above the 38.2% Fibonacci level, the market is still in an uptrend. From this point, the USD/CHF pair is continuing in a bullish trend from the new support of 0.9575. Currently, the price is in a bullish channel. According to the previous events, we expect the USD/CHF pair to move between 0.9579 and 0.9728. In the H4 chart, resistance is seen at the levels of 0.9666 and 0.9728. Also, it should be noticed that the level of 0.9666 represents the daily pivot point. Therefore, a strong support will be formed at the level of 0.9575 providing a clear signal to buy with the targets seen at 0.9666. If the trend breaks the support at 0.9666 (the first resistance), the pair will move upwards continuing the development of the bullish trend to the level 0.9728 in order to test the daily resistance 2. However, the stop loss is to be placed below the level of 0.952.

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Technical analysis of EUR/USD for July 31, 2017

When the European market opens, some economic data will be released such as unemployment rate, Italian flash CPI m/m, core CPI flash estimate y/y, CPI flash estimate y/y, Italian monthly unemployment rate, and German retail sales m/m. The US will release its pending home sales m/m and Chicago PMI. So amid the reports, the EUR/USD will move in a low to medium volatility today.

Today's technical levels:
Breakout buy Level: 1.1804.
Strong resistance:1.1797.
Original resistance: 1.1786.
Inner sell area: 1.1775.
Target inner area: 1.1747.
Inner buy area: 1.1719.
Original support: 1.1708.
Strong support: 1.1697.
Breakout sell level: 1.1690.

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EUR/JPY profit target reached once again, prepare to sell

The price has bounced above our buying entry and is fast approaching our profit target once again. We prepare to sell below major resistance at 130.78 (Fibonacci extension, horizontal swing high resistance) for a drop towards 129.96 support (Fibonacci retracement, horizontal pullback support).

Stochastic (34,5,3) is seeing major resistance below 94% where we expect a strong drop from.

Correlation analysis: We are seeing JPY strength with AUD/JPY and EUR/JPY expecting drops. We are also expecting EUR weakness with strong resistance seen on EUR/USD and EUR/JPY.

Sell below 130.78. Stop loss is at 131.08. Take profit is at 129.96.

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Technical analysis of USD/JPY for Aug 02, 2017

In Asia, Japan will release the Consumer Confidence and Monetary Base y/y data, and the US will release some Economic Data, such as Crude Oil Inventories and ADP Non-Farm Employment Change. So, there is a probability the USD/JPY will move with medium volatility during this day.

TODAY'S TECHNICAL LEVEL:
Resistance. 3: 111.05.
Resistance. 2: 110.84.
Resistance. 1: 110.62.
Support. 1: 110.34.
Support. 2: 110.13.
Support. 3: 109.91.

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Inflation data reflected on the euro

Today's inflation data released in the first half of the day was not very encouraging for the European Central Bank. The regulator expects to achieve a target inflation rate just below 2.0%, which is still significantly out of its reach.

Producer prices fell in June, which goes against the ECB's plans to wind down monetary stimulus measures in the form of bond purchases.

According to the European Union's statistics agency, the producer price index of the eurozone in June this year fell by 0.1% compared with May. It should be noted that the last increase of this index was recorded in January this year. The only consolation is that, compared with June last year, the index rose by 2.5%.

As seen from the recent data, the acceleration of economic growth has little effect on inflation.

Yesterday, data was released, which indicated that the euro area's GDP grew by 0.6% in the second quarter of 2017 compared to the previous quarter and by 2.1% compared to the same period of the previous year.

The current exchange rate of the euro against a number of other currencies also creates a number of setbacks to exports and could adversely affect the rate of economic growth by the fourth quarter of this year.

Today it also became known that the Purchasing Managers Index for the manufacturing sector in Switzerland increased by 0.8 points in July, to 60.9 points. Such indicators indicate very serious signs of further acceleration of activity in the manufacturing industry in Switzerland.

Nevertheless, the Swiss franc still remains under pressure against the euro and the US dollar. The USD/CHF pair rose sharply, having reached the level of 0.9700, the breakthrough of which will open the opportunity to update the July highs to around 0.9730.

Data in the second half of the day on the labor market in the US did not make have any significant impact to the market.

According to the report by Automatic Data Processing Inc. and Moody's Analytics, the number of jobs in the private sector increased by 178, 000 in July this year, while economists forecast a bigger job increase of 180,000. The June data were revised. So, the number of new jobs for the month was 191,000, not 158,000, as previously reported.

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Technical analysis of USD/JPY for Aug 04, 2017

In Asia, Japan will release the Average Cash Earnings y/y data, and the US will release some Economic Data, such as Trade Balance, Unemployment Rate, Non-Farm Employment Change, and Average Hourly Earnings m/m. So, there is a probability the USD/JPY will move with medium to high volatility during this day.

TODAY'S TECHNICAL LEVEL:
Resistance. 3: 110.63.
Resistance. 2: 110.41.
Resistance. 1: 110.20.
Support. 1: 109.93.
Support. 2: 109.72.
Support. 3: 109.50.

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EUR/JPY prepare to buy on major support

The price is now testing major support at 130.19 (Fibonacci retracement, Fibonacci extension, bullish divergence) and we expect to see a strong bounce above this level for a push up to 131.03 resistance (Fibonacci retracement, horizontal swing high resistance).

Stochastic (34,5,3) is seeing strong support above 7.8% and also sees bullish divergence signaling that a bounce is impending.

Correlation analysis: We are seeing JPY weakness across the board with bounces expected on EUR/JPY, AUD/JPY, and USD/JPY.

Buy above 130.19. Stop loss is at 129.76. Take profit is at 131.03.

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Technical analysis of EUR/USD for Aug 08, 2017

When the European market opens, some Economic Data will be released, such as French Trade Balance, French Gov Budget Balance, and German Trade Balance. The US will release the Economic Data, too, such as IBD/TIPP Economic Optimism, Mortgage Delinquencies, JOLTS Job Openings, and NFIB Small Business Index, so, amid the reports, EUR/USD will move in a low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:
Breakout BUY Level: 1.1855.
Strong Resistance:1.1848.
Original Resistance: 1.1837.
Inner Sell Area: 1.1826.
Target Inner Area: 1.1798.
Inner Buy Area: 1.1770.
Original Support: 1.1759.
Strong Support: 1.1748.
Breakout SELL Level: 1.1741.

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Germany shows its poor performance

Data for France and Germany, which came out in the morning, were completely ignored by the market. The low intraday volatility, which did not exceed 20 points in the EURUSD pair, indicates that many investors and traders prefer to take some pause, since the US dollar's rally since Friday is no longer supported by large players, and many market participants are in a bit of a confusion and are unsure how to proceed.

According to the statistics agency, there is a decline in German imports and exports. However, this has not yet affected the foreign trade balance.

As indicated in the report, Germany's exports in June this year compared with May decreased by 2.8%, while the reduction in imports was 4.5%. Germany's foreign trade surplus in June amounted to 21.2 billion euros, while economists predicted the trade balance at the level of 21.4 billion euros. It should be noted that as early as May of this year, the surplus passed the 20 billion euros mark for the first time.

The reduction in industrial production in Germany, which was reported yesterday, along with today's data, is the first alarm bell that the economic growth rate of the first-largest euro-zone economy is gradually slowing down, which will undoubtedly affect the indicators for the second quarter of this year.

According to the statistics agency, the current deficit in France's balance of payments increased. This happened due to the sharper than expected decline in exports.

According to the report, in June this year the negative balance of the current account the balance of payments totaled to 2.1 billion euros against 1.9 billion euros in May. The trade deficit rose to 4.7 billion euros. The deficit of the state budget of France in June rose to 62.3 billion euros from 61.8 billion euros in May. Since the inauguration of the new president of France, very little time has passed, but, as we recall, Macron promised to give a lot of effort to combat the budget deficit.

In the afternoon, data came from The Retail Economist and Goldman Sachs, according to which retail sales increased during the reporting week. So, the index of sales in US retail chains increased by 2.4% for the week from July 30 to August 5, while in comparison with the same period last year the index grew by 1.1%.

As for the technical picture of the EURUSD pair, it remained unchanged compared to the morning review.

A further downward trend will be entirely fixed at yesterday's support level of 1.1790, to gain a foothold below which it has not yet been possible. Selling is recommended after the return of the trading instrument under the level of 1.1790, with the main goal of reducing the support area to 1.1740. A breakthrough in this area will open up the possibility of the euro falling to new weekly lows of around 1.1670.

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Elliott wave analysis of EUR/NZD for August 10, 2017

Wave summary:

EUR/NZD continues to work its way higher towards the expected target at 1.6236. This resistance should only be able to provide temporary resistance, before the next swing higher towards 1.6969.

Short-term support is now seen at 1.6005 and again at 1.5920.

R3: 1.6236
R2: 1.6196
R1: 1.6081
Pivot: 1.6050
S1: 1.6005
S2: 1.5959
S3: 1.5920

Trading recommendation:
We are long EUR from 1.5510 with stop placed at 1.5825. If you are not long EUR yet, then buy near 1.6005 and use the same stop at 1.5825.

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Technical analysis of EUR/USD for Aug 11, 2017

When the European market opens, some Economic Data will be released, such as French Prelim Non-Farm Payrolls q/q, French Final CPI m/m, German WPI m/m, and German Final CPI m/m. The US will release the Economic Data, too, such as Core CPI m/m and CPI m/m, so, amid the reports, EUR/USD will move in a low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:
Breakout BUY Level: 1.1825.
Strong Resistance:1.1818.
Original Resistance: 1.1807.
Inner Sell Area: 1.1796.
Target Inner Area: 1.1768.
Inner Buy Area: 1.1740.
Original Support: 1.1729.
Strong Support: 1.1718.
Breakout SELL Level: 1.1711.

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US dollar: a massive reassessment of risk is coming

The US dollar, which briskly started the week, lost all of its trump cards and was again sold out on Friday amid muffled data on inflation.

Consumer prices rose by 0.1% in July, an annual increase of 1.7%. Both indicators are better than a month ago, but worse than expected. Experts forecasted prices to rise by 0.2% in the monthly data and 1.8% in the annual data.

Yesterday, the producer prices report was published. It also turned out to be worse than expected. The annual price index rose by 1.9% which is worse than the 2.0% results from the previous month. It is even much worse than the expectation of 2.2%. Compared to the results from June, prices have dropped by 0.1%. The worse-than-expected data indicates that there is still a significant imbalance in the market between estimates of the state of the US economy and real macroeconomic indicators.

The head of the Federal Reserve Bank of Minneapolis, Neel Kashkari, said on Friday that the US Federal Reserve can wait in increasing interest rates until inflation approaches the target of 2%. Kashkari drew attention the fact that the wage growth remains slow and a premature rate increase may lead to a slowdown in economic growth.

In fact, over the past week, the probability of a rate hike in December, according to the CME, fell from 48% to 35.9%. The expectations of this next step by the Fed moved to June 2018. The shift of expectations for six months is a lot. In fact, bulls in dollars are deprived reasons to go on the offensive in the foreseeable future.

Another factor of the weakness of the dollar was the geopolitical tensions on the Korean peninsula. US President Donald Trump warned Pyongyang against attacks on Guam, where the US military base is located or on US allies. The markets began to respond to the verbal war, but the probability of a military solution to the issue at the moment is extremely small. The probability of a strike against North Korea will cause Russia to be extremely displeased with China and will promote an even closer rapprochement which clearly does not meet the long-term interests of the United States.

A noticeable increase in the degree of tension is not accidental and quite possibly intended to hide something more substantial than Pyongyang's nuclear program. On Thursday, the Treasury report on the budget was published despite the annual dynamics for 17 months. Revenue growth cannot compensate for the decline of the previous period and ensure the fulfillment of government obligations. Perhaps Trump's formidable rhetoric about North Korea is of an intra-American nature. Trump tries to score points before a large-scale battle with the Congress on a number of crucial issues. Hour X is approaching, the government must submit a draft budget for the 2018 financial year. In any case, it is impossible to balance falling incomes with expenditures without raising the ceiling of borrowing. Moreover, the formation of budget is meaningless without the approval of a tax reform, the project of which has not yet been submitted to the Congress. Perhaps Trump's administration will try to combine these two issues into one. The markets expect active government action in the near future.

On Tuesday, data on retail sales and import and export prices will be published in July. Forecasts are moderately positive. If the released data is no worse than expectations, it can stop the decline in the dollar. On Wednesday, the market's attention will be focused on the publication of the protocol of the July FOMC meeting. Players will assess the likelihood of the start of a quantitative tightening program in September.

In any case, there are more questions than answers. The dollar cannot rely on either economic growth or geopolitical stability. While there is advantage over defensive assets, primarily for yen and gold, there is a high probability that this mood will continue for the upcoming week.

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AUD/JPY reversing nicely below our selling area, remain bearish

The price dropped really nicely from our selling area yesterday. We remain bearish looking to sell below strong resistance at 86.57 (Fibonacci retracement, Fibonacci extension) for a corrective drop towards 85.42 support (Fibonacci extension, horizontal swing low support).

Stochastic (34,5,3) is seeing major resistance at 91% and also intermediate resistance at 64%.

Correlation analysis: We're seeing JPY strength with drops on AUD/JPY, EUR/JPY, and USD/JPY.

Sell below 86.57. Stop loss is at 85.42. Take profit is at 87.17.

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Technical analysis of EUR/USD for Aug 16, 2017

When the European market opens, some Economic Data will be released, such as Flash GDP q/q and Italian Prelim GDP q/q. The US will release the Economic Data, too, such as FOMC Meeting Minutes, Crude Oil Inventories, Housing Starts, and Building Permits, so, amid the reports, EUR/USD will move in a low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:
Breakout BUY Level: 1.1796.
Strong Resistance:1.1789.
Original Resistance: 1.1778.
Inner Sell Area: 1.1767.
Target Inner Area: 1.1739.
Inner Buy Area: 1.1711.
Original Support: 1.1700.
Strong Support: 1.1689.
Breakout SELL Level: 1.1682.

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Date:

AUD/JPY testing major resistance, remain bearish

The price is testing major resistance at 87.39 (Fibonacci retracement, horizontal overlap resistance, Fibonacci extension) and we expect to see a reaction from this level for a drop to at least 86.32 support (Fibonacci retracement, horizontal swing low support).

Stochastic (34,5,3) is seeing major resistance below 96% where we expect to see a corresponding reaction in price from.

Correlation analysis: We're seeing JPY strength with drops on AUD/JPY,

EUR/JPY, and USD/JPY. Sell below 87.39. Stop loss is at 88.08. Take profit is at 86.32.

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Date:

Technical analysis of EUR/USD for Aug 18, 2017

When the European market opens, some Economic Data will be released, such as Current Account and German PPI m/m. The US will release the Economic Data, too, such as Prelim UoM Inflation Expectations and Prelim UoM Consumer Sentiment, so, amid the reports, EUR/USD will move in a low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:
Breakout BUY Level: 1.1771.
Strong Resistance:1.1764.
Original Resistance: 1.1753.
Inner Sell Area: 1.1742.
Target Inner Area: 1.1714.
Inner Buy Area: 1.1686.
Original Support: 1.1675.
Strong Support: 1.1664.
Breakout SELL Level: 1.1657.

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Date:

The market is waiting for news

The absence of important fundamental statistics from both the US and the euro zone is forcing investors to take on a wait-and-see attitude. This is forming the side channels of the markets, especially in pairs with the euro and the British pound in it.

This week, all attention of traders will be directed towards the two-day symposium of the Fed which will begin on August 24. It is expected that the main figure will be the president of the European Central Bank, Mario Draghi. It is believed that Draghi will shed light on the further actions of the bank in relation to its bond purchasing program.

It should be noted that it was at the same conference in 2014 that Mario Draghi justified the need to start the quantitative easing program in the euro area. He also announced the measures to be taken in order to increase inflation.

It is therefore possible that Draghi, speaking at the Fed symposium in Jackson Hole, will also announce the reduction of the mentioned program above.

If the ECB president does not touch upon this topic during his speech, the attention of investors will switch to the meeting in September. Here, it is expected that the European Central Bank may announce the reduction of the quantitative easing program. As several leading world economists suggest, this can be done in two stages. In September, the ECB will announce the official reduction of the program. In October, concrete steps to carry this out will be announced.

As for the fundamental data, here are the happenings. At the end of last week, it became known that the surplus of the euro zone's current account for the balance of payments for the month of June fell.

This is bad news for the European Central Bank. Thus, the current account surplus of the euro area's balance of payments totaled to 21.2 billion euros following the data of 30.5 billion euros last May. The positive balance of trade in goods rose to 27.4 billion euros while the positive balance of trade in services fell to 2.2 billion euros.

There was a temporary support for the US dollar at the end of last week caused by the data on the indicator of consumer sentiment in the US. The data showed an increase for the first half of August. According to the data provided, the preliminary index of consumer sentiment in August 2017 rose to 97.6 points against 93.4 points in July. Economists predicted that the preliminary index in August will be 94.5 points.

The Canadian dollar rose sharply against the US dollar, continuing its trend that was formed in the middle of the week.

Demand remained after the publication of good inflation data which grew for the month of July this year in Canada.

According to the report, Canada's consumer price index in July 2017 increased by 1.2% compared to the same period last year. Core inflation in July rose to 1.5% against 1.4% in June.

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