On the 4-hour chart, the price tests 1504.60 (correction of 61.8%), however, it still cannot breakout it since the downward oncoming fan is exerting pressure on the quotes. After the breakout of the fan and consolidation above 1515.00 (correction 76.4%), the price may grow to 1531.00 (correction 100.0%). Otherwise, the decline will resume to 1488.50 (correction 38.2%), 1478.50 (correction 23.6%) and 1462.00 (correction 0.0%). Technical indicators generally reflect the possibility of short-term growth. The MACD histogram is increasing in the positive zone. Stochastic is pointing upwards.
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14.10.2019 - 08.10.2019
At 14:30 (GMT+2), data on the volume of building permits issued in August will be published in Canada. The monthly indicator records the change in the number of applications issued by the Canadian government for the construction of real estate and is one of the most important indicators of the construction sector. It is predicted that for August, the volume of permits issued will decrease by 2.0% after rising by 3.0% a month earlier. The implementation of forecasts may put pressure on the Canadian dollar.
Form the one-month low of October 2, Alibaba Group shares have been strengthening. The growth comes amid a presentation to investors of a five-year development plan for the company. It includes collaboration in the cloud business with SAP, strengthening partnerships with Starbucks, as well as a new round of investment in Taiwan's virtual reality startup and NetEase division. Since the beginning of the year, the issuer's quotes have risen by 23%.
Alphabet shares are strengthening from the one-month low of October 2. At the moment, the emitter's quotes are traded at a discount of 6% to the April 52-week high. Since the beginning of the year, the emitter's quotes grew by more than 16.5%. Alphabet will invest USD 3.3 billion in expanding data centers in Europe over the next two years. Earlier, Deutsche Bank analysts raised the forecast for Google Cloud business growth to an average annual rate of 55% by 2022 and annual sales to USD 38 billion by 2025.
The USD/CAD pair continues to trade within a sideways trend. Since August, the price has unsuccessfully tested the key resistance level 1.3350 several times, was corrected downwards but later again rose to the level. For two months, the pair has been trading within the range of 200 points. The main catalyst for sideways consolidation is a lack of changes in key macroeconomic indicators in the US and Canada. At the beginning of this month, the rate rushed up again amid favorable statistics on manufacturing orders, the labor market, and US indices.
On the H4 chart, the instrument consolidated above the moving average of Bollinger Bands. The indicator is reversing sideways and the price range has reduced, which indicates the change of the uptrend. MACD histogram is in the positive zone keeping a weak buy signal. Stochastic is approaching the overbought area; a strong sell signal can be formed during 1-2 days.
Yesterday and today, oil prices have strengthened slightly in anticipation of US-China trade negotiations this week.
On the 4-hour chart, the instrument is trading on the upper line of the Bollinger Bands. The price remains on the level with the EMA65, EMA130 and above the EMA14 and SMA200 that are directed up. The RSI is growing, having broken out its longer MA. The Composite begins forming a Bearish divergence with the price.
ETH quotes started the week with the growth and are now at 181.25 (Murrey [6/8]). This level was unsuccessfully tested last week and seems to be quite strong. If the price consolidates above it, the price can continue growing to the levels of 187.50 (Murrey [8/8]), 190.63 (Murrey [+1/8]) and 193.75 (Murrey [+2/8]). Otherwise, a correction to the center line of Bollinger Bands to the level of 175.00 (Murrey [4/8]) is not excluded. Technical indicators generally signal about a continuation of the uptrend.
Yesterday, the AUD/USD pair fell, interrupting the ultra-short-term “bullish” trend, which reached the local highs of October 1. The instrument is under pressure by poor Australian macroeconomic statistics and the alarming start of new US-China negotiations.