Main trading ideas on financial markets for 5.11.2018

The upcoming week can be interesting for pairs containing AUD and NZD, so let’s consider main events for this currencies.

AUDUSD

On Tuesday, Reserve Bank of Australia will publish Interest Rate Decision. Analysts expect that it will stay at the same 1.5%. Monetary Policy Statement Report will be released on Friday’s Asian session.

Aussi is still moving in the bearish channel. On the last testing of its upper border “shooting star” candle appeared on the Daily chart. It means high odds to continue decreasing with the next target at 0.7 support line.

NZDUSD

On Tuesday, we will know the RBNZ Inflation Expectations for the 4 quarter and Employment metrics for 3 quarter. Experts’ opinions speak about an invariability of the Unemployment Rate.

NZDUSD rose above channels’ border and crossed up the 50EMA. The MACD indicator passed a zero line and now it on the bullish side. We expect a little correction to the old channel border and then growth to 0.68 level.

Let’s pay attention to the cryptocurrencies.

Bitcoin (BTCUSD)

Bitcoin is still consolidating in the middle of the $ 6100- $ 6500 range. Short-term uptrend indicates the probability of breaking up. Long positions are also supported by the moving averages ЕМА50 and ЕМА200 on the H1 and H4 timeframes. The MACD indicator rose into the positive zone, confirming bullish odds. Nevertheless, on the other hand, on the 4-hour timeframe there are two bearish candles in a row: “shooting star” and “inverted hammer”. On the daily chart, the moving average EMA200 puts pressure on BTCUSD. This indicates the possibility of a decline to the bottom of the range. So we are still inactive in the coin, waiting for the clarity. If Bitcoin breaks up the resistance of $ 6,500, we will buy the coin with a target at $6900.

Ethereum (ETHUSD)

Ethereum has grown during the weekend. The coin entrenched above the psychological level of $200. The main reason for this was the very positive expectations of the update Serenity. It will increase the scalability of Ethereum by 1000 times. Ethereum 2.0 will also be safer, and less energy will be required to create a block. Vitalik Buterin, Chief Scientist at the Ethereum Foundations, named Serenity “a new blockchain in the sense of being a data structure” and said that it “really no longer so far away”. In addition, Ethereum Foundation and Filecoin tack together their forces to create a specialized hardware for Ethereum 2.0. Therefore, at an early date, we are going to take only long positions in the coin.

At the current Asian session, ETHUSD is moving downwards to support $ 200. Overbought in the RSI indicator is already over. It can mean that a new bullish wave will start soon. We plan to buy Ethereum in the range from current levels to $200 support, with the middle-term target at $230.

Zcash (ZECUSD)

Here and now, there is the right moment to enlarge our long position in ZECUSD. The coin went down from weekly highs to the Pivot Point at $110. At the same price, there is a level of 38.2% Fibo. Together these levels create a quite strong support zone. Moving averages EMA50 and, especially, EMA200 also give Zcash chances to grow. On the 2-hour timeframe, a doji is forming. If the pattern is finally formed, it can be considered an additional signal to buy Zcash with the first target at $124. The next target is $130 level. A Stop Loss order we put just below $110.

So our targets for:

AUDUSD – 0.70
NZDUSD – 0.68
Bitcoin – $6900
Ethereum – $230
Zcash – $130