Wave Analysis by InstaForex

GBP/USD. Early elections in Britain: intrigue persists - Liberal Democrats put forward a counter demand

The European Union granted Great Britain an extension of Brexit. Despite the "traditional" resistance of the French, Brussels agreed to prolong the negotiation process until January 31, 2020. However, the British do not have to wait for the final date: the postponement is flexible, so London can prematurely initiate the completion of the Brexit procedure. But for this, the deputies of the House of Commons need to support the proposed draft deal with the EU. Fulfillment of this condition is the most difficult stage of the negotiation process. That is why the pound almost ignored today's decision of the Europeans. If Paris continued to block the deferral agreement, the GBP/USD pair would accordingly continue the downward movement. But by and large, traders were sure that in the end Brussels would agree on this step, therefore, a positive verdict on this issue provided little support to the pair.

But the issue of holding early elections to the House of Commons excites the minds of traders. After all, the fate of the orderly Brexit is now completely in the hands of the British Parliament, the current composition of which, to put it mildly, is very unfavorable to the current prime minister. So, in the House of Commons there are 650 deputies, 294 of which are Conservatives. A few months ago, there were 315 Tory representatives, but Johnson expelled 21 deputies from the party for "political indiscipline" - they supported the law obliging him to ask Brussels for deferment of Brexit.



In order to overcome the threshold of a simple majority, the prime minister needs another 31 votes (provided that the Conservatives vote "yes"). The Tory's temporary ally is the Democratic Union Party — at the expense of their representatives, the Conservatives had a majority in Parliament. But this is in a "peaceful" time, while now the Unionists are also categorically against the approval of the deal. Other parties represented in the British Parliament - the Scottish National Party, the Greens and the Party of Wales - are long-standing opponents of the Conservatives in general and Boris Johnson in particular, so it will be extremely difficult for the prime minister to entice them to his side.

Meanwhile, a snap election in Britain could be called with the support of two-thirds of Parliament (434 MPs). Labour has twice blocked the government's initiative to hold elections, and this time also promised to vote in a similar way. According to the British press, Downing street is also discussing a "plan B": Johnson's supporters initiate a vote of no confidence in the government – after the completion of the two-week period, which is allotted for the formation of a new Cabinet, the Parliament "automatically" dissolves. In this case, Johnson will need a simple majority, but there are risks: for example, during the allotted 14 days, opposition parties can hypothetically unite around another leader, depriving the Conservatives of power.

Another way to early elections is to change the electoral law itself. However, any such bill can get bogged down in parliamentary discussions for a long time. Labour could amend the proposal to Johnson's disadvantage by adjusting the timing or procedure of the election. In addition, the opposition may delay consideration of the bill for a long time by introducing various amendments, for example, on the right to vote for 16-year-olds.

The first battles in the British Parliament on the issue of early elections ended in nothing today. On Monday, Labour again reaffirmed their position - they will not support Johnson's initiative. When the speaker put this issue to a vote, 299 deputies spoke in favor, which is 135 less than the required number.

But the Liberal Democrats announced that they would support early elections, but they did not propose holding them on December 12, but on December 9. At first glance, the difference of three days is not significant, but not in this case. The fact is that on December 9, students of most universities will still be in their educational institutions (and are more likely to take part in the elections). But on December 10-11, the Christmas holidays begin: many students may not wait for the end of the week and will leave for a vacation. Libdems are popular among young people, so this nuance has strategic importance for them. Boris Johnson announced that he would discuss the proposal of Liberal Democrats, after which the parliament would return to this issue again - most likely, on Tuesday.



It is worth noting that a survey conducted from Wednesday to Friday last week showed that Conservative support reached 40%, while Labour remained at the same level - 24%. Compared with the survey the week before last, Tory support grew by 3%, but the result of the Labour Party did not change. Liberal Democrats, in turn, received 15% support in the latest poll, and Nigel Farage's Brexit party received 10%. All this suggests that following the results of early elections, Johnson will be able to form a majority in the House of Commons and, accordingly, agree on a deal with Brussels.

Thus, the first round of the struggle for elections ended to no avail. At the same time, the intrigue in this matter still persists, especially amid the prolongation of the negotiation process until January 31 and the position of Liberal Democrats.


Analysis are provided byInstaForex.

[B]Fractal analysis of the main currency pairs as of October 30[B]

Forecast for October 30:
Analytical review of currency pairs on the scale of H1:



For the euro / dollar pair, the key levels on the H1 scale are: 1.1138, 1.1119, 1.1103, 1.1083, 1.1068, 1.1049, 1.1038 and 1.1013. Here, we are following the development of the descending structure of October 21. Short-term downward movement is expected in the range of 1.1083 - 1.1068. The breakdown of the latter value will lead to a pronounced movement. In this case, the target is 1.1049. Price consolidation is in the range of 1.1049 - 1.1038. For the potential value for the bottom, we consider the level of 1.1013. Upon reaching which, we expect a pullback to the top.

We expect a consolidated movement in the range 1.1103 - 1.1119. The breakdown of the latter value will lead to an in-depth correction. Here, the target is 1.1138. This level is a key support for the downward structure. Its passage at the price will lead to the development of an upward trend. In this case, the potential target is 1.1173.

The main trend is the descending structure of October 21, the correction stage. Trading recommendations:
Buy: 1.1120 Take profit: 1.1137
Buy: 1.1142 Take profit: 1.1170
Sell: 1.1083 Take profit: 1.1070
Sell: 1.1068 Take profit: 1.1050



For the pound / dollar pair, the key levels on the H1 scale are: 1.3215, 1.3141, 1.3033, 1.2939, 1.2810, 1.2734 and 1.2625. Here, we are following the development of the upward cycle of October 9. At the moment, the price has expressed a pronounced potential for the downward movement of October 21. The continuation of the movement to the top is expected after the breakdown of the level of 1.2959. In this case, the first target is 1.3035. The breakdown of the level of 1.3035 will lead to a pronounced upward movement. Here, the potential target is 1.3141. Price consolidation is in the range of 1.3141 - 1.3215.

We expect consolidated movement in the range of 1.2877 - 1.2810. The breakdown of the last value will lead to an in-depth correction. Here, the target is 1.2715. This level is a key support for the top. Its breakdown will lead to the formation of potential for the downward cycle. Here, the goal is 1.2625.

The main trend is the ascending structure of October 9, the formation of the descending structure of October 21.

Trading recommendations:
Buy: 1.2960 Take profit: 1.3031
Buy: 1.3035 Take profit: 1.3140
Sell: 1.2808 Take profit: 1.2717
Sell: 1.2713 Take profit: 1.2627



For the dollar / franc pair, the key levels on the H1 scale are: 0.9999, 0.9976, 0.9963, 0.9940, 0.9929 and 0.9909. Here, we are following the development of the ascending structure of October 18. Short-term upward movement, we expect in the range 0.9963 - 0.9976. The breakdown of the last value will lead to a pronounced movement. Here, the target is a potential target - 0.9999, when this value is reached, we expect a pullback to the bottom.

Consolidated movement is possibly in the range of 0.9940 - 0.9929. The breakdown of the last value will lead to an in-depth correction. Here, the goal is 0.9909. This level is a key support for the upward structure.

The main trend is the ascending structure of October 18, the correction stage. Trading recommendations:
Buy : 0.9963 Take profit: 0.9974
Buy : 0.9978 Take profit: 0.9999
Sell: Take profit:
Sell: 0.9927 Take profit: 0.9912



For the dollar / yen pair, the key levels on the scale are : 109.58, 109.39, 109.29, 109.13, 108.85, 108.72 and 108.53. Here, we are following the development of the upward cycle of October 23. The continuation of the movement to the top is expected after the breakdown of the level of 109.13. In this case, the target is 109.29. Price consolidation is in the range of 109.29 - 109.39. For the potential value for the top, we consider the level of 109.58, upon reaching which, we expect a pullback to the bottom.

Short-term downward movement is expected in the range of 108.85 - 108.72. The breakdown of the last value will lead to an in-depth correction. Here, the target is 108.53. This level is a key support for the top.

Main trend: local structure for the top of October 23.
Trading recommendations:
Buy: 109.13 Take profit: 109.29
Buy : 109.40 Take profit: 109.56
Sell: 108.85 Take profit: 108.74
Sell: 108.70 Take profit: 108.55



For the Canadian dollar / US dollar pair, the key levels on the H1 scale are: 1.3160, 1.3128, 1.3101, 1.3036 and 1.2989. Here, we are following the development of the downward trend of October 10. At the moment, the price forms a small potential of October 29 for the movement in correction. The continuation of movement to the bottom is expected after the breakdown of the level of 1.3036. In this case, the target is the potential target 1.2989. Upon reaching this level, we expect a pullback to the top.

Short-term upward movement is possibly in the range of 1.3101 - 1.3128. The breakdown of the latter value will lead to an in-depth correction. Here, the target is 1.3160. This level is a key support for the downward structure.

The main trend is the downward cycle of October 10, the correction stage.

Trading recommendations:
Buy: 1.3101 Take profit: 1.3126
Buy : 1.3130 Take profit: 1.3160
Sell: Take profit:
Sell: 1.3034 Take profit: 1.3000



For the Australian dollar / US dollar pair, the key levels on the H1 scale are : 0.6928, 0.6910, 0.6897, 0.6874, 0.6847, 0.6831 and 0.6810. Here, the price registered the local upward structure of October 28. The continuation of the movement to the top is expected after the breakdown of the level of 0.6874. In this case, the target is 0.6897. Price consolidation is in in the range of 0.6897 - 0.6910. For the potential value for the top, we consider the level of 0.6928. Upon reaching which, we expect a pullback to the bottom.

Short-term downward movement is possibly in the range of 0.6847 - 0.6831. The breakdown of the latter value will lead to the formation of a downward structure. Here, the potential target is 0.6810.

The main trend is the local structure for the top of October 28.
Trading recommendations:
Buy: 0.6875 Take profit: 0.6896
Buy: 0.6910 Take profit: 0.6928
Sell : 0.6846 Take profit : 0.6831
Sell: 0.6828 Take profit: 0.6810



For the euro / yen pair, the key levels on the H1 scale are: 121.95, 121.79, 121.34, 121.03, 120.61, 120.28, 119.92 and 119.64. Here, price has entered an equilibrium state. Short-term upward movement is expected in the range 121.03 - 121.34. The breakdown of the level of 121.35 should be accompanied by a pronounced upward movement. Here, the target is 121.79. Price consolidation is in the range of 121.79 - 121.95. From here, we expect a correction.

We expect consolidated movement in the range of 120.61 - 120.28. The breakdown of the last value will lead to an in-depth correction. Here, the goal is 119.92. This level is a key support for the top. Its passage at the price will lead to the formation of initial conditions for the downward cycle. In this case, the first goal is 119.64.

The main trend is the rising structure of October 15 and the formation of potential for the bottom of October 21. Trading recommendations:
Buy: 121.05 Take profit: 121.34
Buy: 121.36 Take profit: 121.76
Sell: 120.25 Take profit: 119.94
Sell: 119.90 Take profit: 119.66



For the pound / yen pair, the key levels on the H1 scale are : 142.82, 141.23, 139.53, 138.70, 137.79 and 137.08. Here, price has entered an equilibrium state. The continuation of movement to the top is expected after the breakdown of the level of 141.23. In this case, the potential target is 142.82. Upon reaching which, we expect consolidation, as well as a pullback to the bottom.

Short-term downward movement, as well as consolidation, are possible in the range of 139.53 - 138.70. The breakdown of the last value will lead to a long correction. Here, the target is 137.79. The range of 137.79 - 137.08 is the key support for the top. The main trend is the medium-term upward structure of October 8, the formation of potential for the downward movement of October 21.

Trading recommendations:
Buy: 141.25 Take profit: 142.80
Sell: 139.50 Take profit: 138.75
Sell: 138.65 Take profit: 137.80

Analysis are provided byInstaForex.

Is the Canadian dollar a child of fortune? The loonie has a second wind



The Canadian dollar has been on the rise since the beginning of the week. However, experts suggest that the flight of the loonie can be interrupted by changes in the monetary policy of the Bank of Canada, as well as a deterioration in economic data. In this situation, the market favors the loonie, analysts emphasize.

The loonie was in the spotlight on Wednesday, October 30. The market is monitoring the further actions of the Bank of Canada, which is ready to hold a meeting on monetary policy. If the regulator keeps the rate at 1.75%, while the Fed reduces it to 1.50% –1.75%, then the Canadian dollar will push its American counterpart. The loonie claims to be the leader, striving to become the most profitable currency in the "Big Ten."

According to analysts, the rise of the Canadian dollar is possible not only in case of maintaining the same rates, but also amid optimistic comments of the regulator regarding the growth of the national economy. At the last meeting, the Bank of Canada left the interest rate unchanged. The regulator focused on strengthening the labor market, increasing wages and the positive state of the economy.

Analysts believe that current data on the Canadian economy will not be so rosy. The regulator should take into account a number of negative factors, such as a slowdown in retail sales, a drop in the consumer price index, a decrease in GDP growth and inflation risks. At the moment, the labor market in Canada remains strong, wage growth is quite stable, however, the weakness of the national economy along with the worsening situation in the United States may lead to a change in Bank of Canada's strategy. In such a situation, the regulator will review the current decision on rates. If this happens, a stable short-term low will form in the USD/CAD pair, analysts said.

The positive against the Canadian dollar is radiating from the options market. According to experts, the three-month risk reversal with a delta of 25% demonstrates the most favorable period for the growth of the loonie to the US dollar. This has not happened since 2009, experts emphasize. Reducing the risk-reversal in the USD/CAD pair for three-month option contracts is a barometer of long-term investor sentiment. Analysts record a bullish trend for the Canadian dollar, noting that over the past 10 years, investors have never been so optimistic about the loonie.

A similar change of mood occurred shortly before the decisions of the Bank of Canada on monetary policy and the Federal Reserve at the key rate. Currently, the loonie has been supported by both a profitable interest rate differential and increased expectations for a trade deal between the United States, Mexico and Canada in November.

On Tuesday, October 29, the USD/CAD pair peaked in the past four weeks. On Wednesday morning, the pair fell by 0.08% to 1.3078-1.3880.



Yesterday, the USD/CAD pair showed an increase of 0.3% to a high since the beginning of October. The pair hit the 1.3098 bar, but is now pulling back to its lows. Yesterday's growth of the pair from an intraday low was caused by an increase in sales, Scotiabank analysts believe. Experts are certain that the pair is normal. At the moment, the USD/CAD pair is trading in the range of 1.3077–1.3078, showing an upward trend.



Analysts agree that the current situation is quite favorable for the loonie. Most of them note excellent prospects for it. The Canadian dollar, which seemed to have opened its second wind, is capable of another leap forward, experts said. They expect a moderate, long rise of the loonie in the short and medium term.

Analysis are provided byInstaForex.

Control zones EURUSD 11/04/19

At the end of last week, the defining resistance was the Weekly Control Zone 1/2 1.1161-1.1153. At the same time, the closing of trading on Friday occurred above this zone. This opens up opportunities for further growth of the pair to weekly control zone 1.1249-1.1233. The euro purchases come to the fore, however, favorable prices are located just below the level of 1.1134.



At the moment, the pair is trading near the maximum of the last month, which increases the possibility of the proposal and the continuation of the formation of the accumulation zone. Work within the accumulation zone will be relevant until the closure of one of the active sessions occurs above the weekly maximum. If this happens, then the growth rate will increase and a weekly test will take one to two days. In the event of a major offer after updating the monthly maximum, the target will be the level of 1.1134, where a new priority will be determined.



Daily CZ - daily control zone. The zone formed by important data from the futures market that changes several times a year.
Weekly CZ - weekly control zone. The zone formed by the important marks of the futures market, which change several times a year.
Monthly CZ - monthly control zone. The zone that reflects the average volatility over the past year.

Analysis are provided byInstaForex.

Pound moved to a tactical retreat

If someone thought that the British pound would return to normal after reducing the chances of a disorderly Brexit to a low, then the beginning of November showed that they are wrong. The leader of the Brexit party, Nigel Faraj, fundamentally disagreeing with the main provisions of the project of Boris Johnson, said he would fight for every seat in the renewed Parliament. This can seriously complicate the position of the Conservatives and increase the risks of the victory of the party of Jeremy Corbyn. Labour promises to nationalize enterprises, raise taxes and hold a second referendum on divorce from the EU. The political landscape in Great Britain remains shaky, which allows Goldman Sachs to recommend that its client close long sterling positions as part of a "tactical retreat".

The dynamics of popularity of the main parties in Britain



Thanks to the almost zero chance of a disorderly Brexit, the pound climbed to second in the list of the best performers of G10 since the beginning of the year. Sterling's two-month volatility has fallen to September lows, however, the intensification of political struggle can lead to an increase in the indicator, which will adversely affect capital flows and the short-term prospects of the British currency.

Pound Volatility Dynamics



The pound practically did not pay attention to the rapid growth of business activity in the manufacturing sector from 48.3 to 49.6 in October. Surveys of purchasing managers were conducted during a period of general euphoria about the fact that a disorderly Brexit was avoided. In addition, the PMI continues to be below the critical mark of 50, indicating a decline in the sector. I do not think that sterling will be very sensitive to the release of data on business activity in the construction and services sectors, but a meeting of the Bank of England can make it worry.

Only one out of the 19 Bloomberg experts predicts that the BoE will lower the repo rate, the rest are confident that it will remain at the same level of 0.75%. At the same time, most experts believe that the central bank will lower forecasts for inflation and GDP and increase estimates of unemployment. This is a hint of monetary expansion, which will increase the risks of a GBP/USD correction. On the whole, it's a rather unexpected turn, given the fact that BoE's previous forecasts were based on the assumption that a disorderly Brexit could be avoided.

Assessment of changes in Bank of England forecasts



If you add seasonal weakness to the growing political risks and potential dovish rhetoric of Mark Carney, then the immediate prospects for sterling can begin to be drawn in gray tones. According to the results of November in 1975-2018, it closed in the red zone in 28 out of 44 cases. Nevertheless, the bullish trend looks stable, so the correction at the end of autumn made it possible to buy a cheaper pound.

Technically, if the bulls on GBP/USD manage to keep the pair quotes above 1.29 and update the October high, then the chances of continuing the rally in the direction of the target by 88.6% according to the Bat pattern will increase. In the opposite case, we are waiting for a correction to 1.276 and 1.272.

Analysis are provided byInstaForex.

Forecast for EUR/USD on November 6, 2019

EUR/USD
The euro closed the day down by 51 points yesterday. Business media point out the reason for the optimistic sentiment among investors regarding the upcoming US and China trade deal and good October ISM Non-Manufacturing PMI, which rose from 52.6 to 54.7. But with a broad view of the market, it is clear that investors are far from experiencing the interest in risk that was on Friday after the release of US employment data. The Dow Jones stock index grew just 0.11%, while the S&P 500 fell 0.12%. The general mood for dollar purchases remains, and it is characteristic that the price has not reached the levels at which the massive closing of euro purchases began on October 22 and 24, which we spoke about at the time.



The decline in the euro stopped at the Fibonacci level of 123.6% at the lows of October 25-29. There may be a respite before the subsequent downward movement. The signal line of the Marlin oscillator penetrates into the negative trend zone. After a respite, we are waiting for prices to fall to the MACD line at around 1.1027. We admit corrective growth to the price channel line near 1.1104.



The situation is completely declining on the four-hour chart: the price is under the lines of balance and MACD, the Marlin oscillator is developing in the territory of the declining trend.

Analysis are provided byInstaForex.

Trading idea for the AUD/CAD

Good evening, dear traders. I present to you the trading idea for the AUD/CAD pair. The decision on the Bank of Australia interest rate - to leave it unchanged until 11/05/2019 - was positively received by the market. And almost all instruments with the Australian dollar worked on a major note. Our recommendations on holding longs on the AUD/USD pair also worked perfectly for this news, and those who followed this trading recommendation closed their positions in positive territory.

However, there was only one instrument with AUD, and the potential of longs on which has not yet been fully exhausted. This is AUD/CAD. We have already given recommendations on this instrument and they all closed in positive territory:



Despite that, the instrument has not yet fulfilled all the goals to the end. I mean the level of 0.91500. And if you want to gain a long position on it, profit can be fixed there. From current prices, the potential will be about 850p for 5zn. But if the instrument rolls back - the potential will be higher. It can be noted that the asset is quite "noisy" and gaining a position, as a rule, is not a problem. The nearest news on it (CAD)- change in employment will be released on Friday at 13:30 UTC+00. It is most likely that the breakdown will take place at this time.

Good luck in trading and see you tomorrow!

Analysis are provided byInstaForex.

GBPUSD. Bank of England dissidents, predictions and phlegmatic pound

The results of "Super Thursday" were expectedly not in favor of the British currency, although the first violin in the downward pressure on the pound was played not by the head of the Bank of England Mark Carney, but by two members of the English regulator who unexpectedly called for easing monetary policy. Traders were clearly discouraged by this fact, since the prospects of monetary policy have recently been discussed in a slightly different aspect. Experts discussed - will the BoE raise the rate in the first half of next year or will it still take a wait-and-see attitude? Now this discussion has been supplemented with one more question - will the English regulator resort to a preventive reduction in the rate?



The culprits of the bearish triumph were two members of the Committee - Michael Saunders and Jonathan Haskel. It is worth noting that Saunders is not the first to vote "against the grain", that is, contrary to the general opinion of most colleagues. A little over a year ago, he, along with Ian McCafferty, voted to raise the rate, while the remaining seven members of the Committee voted to maintain the status quo. This went on for three meetings, but then Saunders again joined the majority, voting in a general rhythm.

Now there is a mirror situation. Saunders and Haskel voted to reduce interest rates, violating the expected balance of power (0-2-7 instead of the predicted 0-0-9). For the first time in three years (that is, since August 2016), members of the Committee, albeit not in the majority, voted in favor of easing monetary policy. Moreover, Saunders and Haskell said that the regulator needs to introduce additional incentives as soon as possible, since recent releases indicate a weakening of the British labor market amid increasing risks from the global trade conflict.

The BoE did not support the peculiar "dissidents" in its conclusions, but also did not exclude the realization of such a scenario in the future. The rhetoric of the accompanying statement left a double impression. On the one hand, the English regulator made it clear that if global economic growth does not stabilize, Brexit uncertainty will continue, and key economic indicators will continue downward trend, then the central bank may have to intervene. But then the regulator hastened to declare the likelihood of an alternative scenario. If these risks do not materialize, then the issue of a gradual increase in the rate will again be on the agenda.

In other words, the prospects for monetary policy in the UK again depend on external factors. The Bank of England made it clear that it is ready to tighten monetary policy, but in the conditions of a "soft" Brexit and at least a conditional trade truce between the US and China. And of course, given the growth of key macroeconomic indicators in Britain, especially in the labor market and inflation.

Unfortunately for the GBP/USD bulls, the English regulator lowered its forecasts for the main economic indicators. So, GDP growth for the next year was reduced from 1.3% to the lowest level over the past ten years, 1.2%, and in 2021 - from 2.3% immediately to 1.8%. The BoE also lowered its inflation forecast - according to regulator members, its growth will slow by 1.2% by mid-2020, due to lower prices for black gold and regulatory restrictions on electricity and water tariffs.

Summing up the November meeting, Mark Carney confirmed that the central bank's next likely move would be a reduction in interest rates, as the Bank of England's updated economic forecasts were revised negatively. He also expressed concern that weak investment is detrimental to industrial production, thereby limiting the growth of the British economy and slowing inflation.



Nevertheless, it cannot be said that Carney announced a rate cut in the near future. He just did not rule out a similar scenario, linking it primarily with a possible "hard" Brexit and a general slowdown in the global economy. He voiced such rhetoric more than once, just in this case, Carney's position was reinforced by updated forecasts of the central bank of a negative nature. The two members of the Committee who voted in favor of lowering the rate only added fuel to the fire, putting additional pressure on the pound.

Thus, the November meeting of the Bank of England was by no means "passing". But despite the dovish tone of the regulator, the downward impulse of the GBP/USD pair was limited. Bears could not even gain a foothold in the 27th figure, and the price actually returned to its previous positions during the US session on Thursday. Apparently, traders are still tuned for a Conservative victory in December, and, accordingly, for the soft Brexit, with all the ensuing consequences.

Given this market reaction, it can be assumed that the GBP/USD pair will continue to trade flat, reacting violently only to political news. The pound turned out to be stress-resistant to dovish threats from the Bank of England, so the further dynamics of the pair will be determined only by the political prospects of the "divorce proceedings" between London and Brussels.

Analysis are provided byInstaForex.

Control zones NZDUSD 11/11/19

The downward movement of the pair is impulsive, as the pair has gone beyond the average weekly movement. This indicates a high likelihood of continued fall and an update of the monthly low. Sales will be profitable after the pair returns to the broken middle course zone. The lower boundary of this zone is at the level of 0.6354.



Work in the downward direction will be a priority at the beginning of the new week. The first goal of the fall will be WCZ 1/2 0.6271-0.6265.

A strong increase in demand is required to break the downward momentum, which will lead to the closure of trading on Monday to be above Friday's Asian session. This will indicate the emergence of a major player interested in the appreciation of the New Zealand dollar.



Daily CZ - daily control zone. The area formed by important data from the futures market, which change several times a year.

Weekly CZ - weekly control zone. The zone formed by important marks of the futures market, which change several times a year.

Monthly CZ - monthly control zone. The zone, which is a reflection of the average volatility over the past year.

Analysis are provided byInstaForex.

Do not trade USD until Wednesday/Thursday

I present to you the evening market analysis.

So today, Monday is one of the worst days to trade in a week, according to many experienced traders. However, if we filter out prejudice and look at the economic calendar, then the next news we will see is only on Wednesday and Thursday. Below, I noted all the important news on USD by the end of the week:



As you can see, this week, we have inflation on Wednesday, and on Thursday, PPI and Powell will be powerful volatile days. Think about it yourself, if you are a bank trader and know that on Wednesday - USD inflation - will you be gaining a position on rumors about its increase or decrease? Of course not! Do you know why? Because all profitable participants are "accountable" people, i.e. they report on their actions to management, investors, etc. Because it is a business. That is why market volatility is falling ahead of the good news. And now is just such a moment. Therefore, I recommend to wait until Wednesday and Thursday.

Most private traders trade a pair of EUR / USD, and I think that it's better to forget about "dollar" instruments by Wednesday. For saving money in flat is a great art. I'm perhaps the only analyst who will periodically recommend you not to trade . "Stay in the cache" - believe me - far from the worst option in trading. After all, the main task in trade is to save a deposit.

Good luck in trading and see you at the morning review!

Analysis are provided byInstaForex.