Daily analysis of Silver for August 27, 2014

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Overview


As shown in the today's H4 chart, the metal failed to break the support level of 19.30 to reverse its downward trend. It is trading between the support level and below the resistance level of 19.60. Currently, it is approaching the resistance level and starting the bullish move. So, we still suggest waiting for closing above the resistance level of 19.60 to give us a new opportunity for more buy signals with the first target few pips below the resistance level of 19.80. Then after breaking this resistance level, silver would open the way towards the resistance level of 20.00, which means more bullish signals. But as long as the metal trades below the resistance level of 19.60, this cancels the bullish scenario.


Resistance and support levels: R3 (20.00), R2 (19.80), R1 (19.60), S1 (19.30), S2 (19.00), S3(18.75)


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Daily analysis of GBP/JPY for August 27, 2014

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Overview


In H4 chart, the pair failed more than once to break the support level of 172.00 and it has been trading above it since yesterday. The pair is expected to bounce from the support area again and start to take a slightly upward move, approaching the resistance level of 172.60. Currently, it is preferred to wait till closing above this resistance level before making a decision. In this case, we will get more bullish signals with the first target few pips below the next resistance level of 173.30, then at 174.00 as the second target. But closing below the resistance level of 172.60 cancels the bullish move scenario.


Resistance and Support levels: R3 (173.75), R2(173.30), R1(172.60), S1 (172.00), S2(171.50), S3(171.00)


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EUR/NZD analysis for August 27, 2014

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Overview:


Since our last analysis, EUR/NZD has been trading downwards. As we expected the price has tested the level of 1.5710 (Fibonacci retracement 61.8%) in a volume just above average according to the 4H time frame, which is a sign that buying looks very risky. It is still unsafe to buy anything, so watch for potential selling opportunities after retracement. If the price breaks the level of 1.5710 in a higher volume, we may see potential testing the level of 1.5595. According to the 1H time frame, we can observe strong selling pressure (selling climax) in the background, which is a sign that buying looks risky.


Daily Fibonacci pivot levels :


Resistance levels:


R1: 1.5846


R2: 1.5862


R3: 1.5887


Support levels:


S1: 1.5795


S2: 1.5779


S3: 1.5753


Trading recommendations: Be careful when buying the EUR/NZD pair and watch for selling opportunities after retracement.


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Gold analysis for August 27, 2014

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Overview:


Since our last analysis, gold has been trading downwards. As we expected the price tested the level of 1,279.91 in a volume below average according to the 1H time frame. We can observe an ultra high volume (buying climax) according to the 1h timeframe, which is a sign that buying looks very risky. Our Fibonacci expansion 61.8% at the price of 1,284.00 is broken. So, we may see potential testing the level of 1,260.00 (Fibonacci expansion 100%). I have placed Fibonacci retracement to find potential resistance levels and I got Fibonacci retracement 38.2% at the price of 1,292.00 and Fibonacci retracement 61.8% at the price of 1,303.00. According to the 4H time frame, I have placed corrective Fibonacci expansion and I found Fibonacci expansion 161.8% at the price of 1,290.00 (currently on the test).


Daily pivot Fibonacci points:


Resistance levels:


R1: 1,290.46


R2: 1,294.28


R3: 1,300.47


Support levels:


S1: 1,278.08


S2: 1,274.26


S3: 1,268.07


Trading recommendations: Buying Gold looks risky since the price has broken the support level.


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USD/CAD intraday technical levels and trading recommendations for August 27, 2014

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Since the USD/CAD pair failed to show enough bullish momentum above 1.1200 during the last visit on March 20, the pair has been downtrending within the depicted bearish channel, which managed to push towards the price zone between 1.0910-1.0850 (50-61.8% Fibonacci levels on the daily chart) where a prominent congestion zone was established.


Bullish rejection was expressed at retesting the lower limit of the bearish channel around 1.0630 (It's the origin of the previous bullish impulse initiated in December 2013 as well). This enabled the bulls to achieve a bullish breakout off the depicted channel.


The USD/CAD pair has a strong resistance zone located between 1.0950 and 1.1020 (Fibonacci Levels 50% and 61.8% of the most recent bearish swing).


As we mentioned before, bearish rejection should be anticipated after such a long bullish rally that originated off 1.0650 and 1.0710.


Previously, around the price level of 1.0950, a Shooting-Star daily candlestick was expressed. This was repeated yesterday. Thus, enhancing the short-term bearish direction.


A valid SELL position was suggested at retesting which took place this week. Initial bearish target is located around 1.0825.


Conservative traders should wait for higher entry levels to be retested especially around 1.0930. Daily closure below price zone of 1.0870-1.0850 confirms a long-term double-top pattern with its projection target located at 1.0770.


On the other hand, persistence of daily fixation above 1.0950 (50% Fibonacci level) enables the bulls to shoot towards 1.1020 and 1.1050 initially (very low probability in the meanwhile ).


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Intraday technical levels and trading recommendations on GBP/USD for August 27, 2014

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Breakdown of the DEMAND level around 1.6975 allowed a quick decline of the GBP/USD pair initially towards the price zone of 1.6800-1.6820.


While retesting the price zone of 1.6800-1.6820, a bullish pause occurred meanwhile. This corrective movement was stopped below 1.6880 when the bears applied considerable bearish pressure.


Through the previous two weeks, the GBP/USD pair declined again towards 1.6660 and 1.6550. This came after some negative fundamental data from the UK.


The next DEMAND level to meet the pair is located around 1.6547 where a previous bottom was established in April. However, if the current daily closure persists, there will be high probability of bullish breakout of the current steep channel.


On the other hand, failure of the bears to keep fixating below 1.6660 (the most recent established bottom) will probably allow the bulls to initiate a bullish corrective movement towards 1.6780 and 1.6820.


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The price zone of 1.6830 - 1.6800 remains a significant zone as it corresponds to the previous consolidation zone established in June.


However, 4H fixation below this zone exposed the price levels around 1.6600-1.6560 where triple bottom pattern was established.


Note that the GBP/USD pair has been down-trending for almost 20 days without significant correction. However, bullish correction is expected to happen as long as the reversal pattern remains valid.


Thus, any bullish fixation above 1.6600 hinders the current steep trend allowing the reversal pattern to hit its projection target at 1.6650.


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Intraday technical levels and trading recommendations on EUR/USD for August 27, 2014

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The price zone of 1.3800-1.3880 (dotted on the chart) provided considerable SUPPLY for the EUR/USD pair. This price zone managed to pause the bullish momentum leading to obvious breakdown of the depicted bullish trend line.


Bearish pressure which originated off 1.3650 has applied enough pressure at the price level of 1.3560 (corresponding to the previous prominent bottom). Since then, the pair has been downtrending within the depicted bearish channel.


Again, the EUR/USD pair shot towards 1.3330 (prominent bottom established on November 8, 2013) once more after the initial testing that took place on August 6 when significant bullish pressure was applied. Bearish breakout of the consolidation range took place on Tuesday.


On Friday, the pair achieved WEEKLY closure at 1.3240, then the pair opened this week on a bearish gap (around price level of 1.3200). Further price action should be considered knowing that the pair is currently testing the lower limit of the channel. High probability of reversal exists.


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Bearish breakdown of the price level of 1.3430 allowed the pair to establish a consolidation zone down to 1.3330. Since then, the EUR/USD pair has been trapped inside this price range.


The short-term bearish trend remains intact as long as the bears keep defending the price zone of 1.3420-1.3450.


In case the bears keep applying significant bearish pressure, the EUR/USD pair has Intraday DEMAND zone located between 1.3200 - 1.3150 respectively (Fibonacci Expansion Levels).


The pair has been trading below these levels since Monday. However, daily closure should be considered to determine if the current breakdown will persist or not.


On the other hand, bullish fixation above 1.3285 is essential to acquire a momentum strong enough to initiate a bullish corrective move towards 1.3340 and 1.3410 as well.


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Technical analysis of USD/CAD for August 27, 2014

Overview :



  • Support of the USD/CAD pair has broken and turned to resistance at the same key level (1.0987). So, resistance has already set at the price of 1.0987 and the double top had set at the same price too. Equally important, the trend saw the bearish market and the the price set below the resistance for three days. Another thought, we expect a range of 55 pips today. As expected, the price is going to move between 1.0940 and 1.0870. Therefore, the USD/CAD pair started showing the signs of the bearish market from the spot of 1.0987 - 1.0940. Consequently, the market indicates the bearish opportunity at the level of 1.0940 with the first target at 1.0900, which continues towards the level of 1.0845 in the coming days. It should be noted that the level of 1.0845 represents strong support on August 27, 2014. Moreover, the same level coincides with the 61.8% Fibonacci retracement levels. Consequently, the pair is going to form strong support at the 1.0845 price. On the other hand, the stop loss should always be taken into account, hence it will be wise to set your stop loss at the 1.1010 price.


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Intraday technical levels :


Date and Time:27/08/2014 13:16


Pair:USD/CAD



  • R3: 1.1008

  • R2: 1.0982

  • R1: 1.0941

  • PP: 1.0915

  • S1: 1.0874

  • S2: 1.0848

  • S3: 1.0807


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Technical analysis of NZD/USD for August 27, 2014

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Overview :



  • According to previous events, the NZD/USD pair is still moving between 0.8315 and 0.8433.

  • Strong level (resistance) will be formed at the level of 0.8509 (this level coincides with the ratio of 38.2% Fibonacci retracement levels) providing a clear signal for sell deals with the target seen at 0.8310 in order to test the double bottom in H4 chart.

  • Stop-loss is to be placed above the double top at the level of 0.8538.

  • Strong level (support) will be formed at the level of 0.8310 (this level coincides with the ratio of 00% Fibonacci retracement levels) providing a clear signal for buy deals with the target seen at the 0.8430 and 0.8509 levels in order to test the daily pivot point and weekly resistance 1 respectively.

  • Also, it should be noted that: If the trend breaks the daily pivot point (0.8433), it will continue towards the weekly resistance 1 at the price of 0.8809 which represents a strong resistance.

  • However, the stop loss should never exceed your maximum exposure amounts. So, it is to be placed below the double bottom at the price of 0.8270.


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Elliott wave analysis of EUR/NZD for August 27, 2014

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Today's support and resistance levels:


R3: 1.5830


R2: 1.5800


R1: 1.5764


Current spot: 1.5744


S1: 1.5714


S2: 1.5692


S3: 1.5663


Technical summary:


Key resistance at 1.5867 rejected prices again. We have seen an unexpected deep correction. But as long as important support at 1.5692 protects the downside, we regard this decline as part of a new impulsive rally to above key resistance at 1.5867. In the short term, we would like to see a break above 1.5764 and more importantly above 1.5816 for a new strong test of 1.5867, but only a clear break above here unlocks the upside potential. On the other side, only an unexpected break below 1.5692 will delay the expected upside pressure for a move closer to 1.5663.


Trading recommendation:


We are long in EUR at 1.5725 with stop place at 1.5690. If you are not long in EUR yet, then buy a break above 1.5764 or above 1.5867 with the same stop at 1.5690.


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Elliott wave analysis of EUR/JPY for August 27, 2014

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Today's support and resistance levels:


R3: 137.42


R2: 137.26


R1: 137.15


Current spot: 136.93


S1: 136.92


S2: 136.81


S3: 136.61


Technical summary:


We have seen a test of key support at 136.81, which has rejected this first test for a minor correction towards 137.26 before the next decline can be expected. The next test should be succesful in break below the key support at 136.81, so it could move lower to 135.73 on the way down to the ideal target at 134.34. Only an unexpected break above 137.42 will delay the expected downside pressure for a move closer to 137.62 before dropping again.


Trading recommendation:


We are short in EUR from 137.75 and will move our stop lower to 137.45. If you are not short in EUR yet, then sell near 137.26 with the same stop at 137.45.


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#USDX Technical analysis for August 27, 2014

The Dollar index confirmed our buy signal yesterday and gave a new high as expected. However, the reversal was a bad sign. The trend line support has been broken and we are close to a full bearish reversal specially if price breaks below 82.30.


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Ichimoku cloud support is found at 82.45-82.30. The first sell signal is given by the break of the green trend line. 82.70 is important resistance now. We could have seen the top and a strong downward reversal could have started. Confirmation will come as soon as we break below 82.30.


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In the daily chart, price is hitting the upper boundaries of the channel. A pull back towards 81.90 is justified. However, the bigger upward move from 79.75 might be over and complete and we should expect a bigger correction. I prefer neutral to bearish positions. Specially, if 82.30 is broken I prefer to go short as the recent high might be an important reversal point.


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Gold Wave analysis for August 27, 2014

Gold price has made a small spike upwards towards the $1,291 resistance by the downward sloping channel. Price got rejected at that level and pulled back towards $1,280. Strong support is at $1,270. We expect an upward trend reversal from the current levels.


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Short-term resistance is at $1,291. Short-term support is at $1,270. Price is still in a down trend as it remains below the Ichimoku cloud. Breaking above $1,294 will change a short-term trend to bullish. Bouncing off the $1,270 support is a good sign for bulls. Bulls do not want Gold price back below $1,270. If this happens, then a sell off towards $1,200 is very possible.


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The daily chart reacted bullishly from $1,270. The red trend line is important support. Bulls need to see Gold price re-enter the Ichimoku cloud and break above it in order to push to $1,350 which is our target. Breaking below $1,270 will not be in our favor. This could bring Gold price to $1,200.


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Technical analysis of EUR/JPY for August 27, 2014

General overview for 27/08/2014 09:50 CET


So far, the market is developing according to the anticipated wave progression. However, currently it is stuck in the internal corrective cycle in the middle of the range zone, so traders need to wait for any decisive level breakout. There are two key price levels now, one for bears, one for bulls and the one that is violated first will give further clues about the market direction.


Support/Resistance:


138.05 - WR1


138.02 - Swing High |Invalidation Level|


137.98 - Wave 2 of 3 High


137.42 - Weekly Pivot


137.04 - Intraday Resistance


136.85 - WS1


136.75 - Intraday Support


136.24 - WS2


Trading recommendations:


The short orders from the last week with SL above the level of 138.02 should be still kept open. New short orders have been added yesterday at the level of 136.98, with the same SL as before and TP at the level of 136.70 with a quite possible downside extension to the level of 135.70.


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Technical analysis of EUR/JPY for Aug 27, 2014


Technical outlook and chart setups:


1. The GBP/CHF pair is seen to be testing the resistance turned support trend line around the 136.80/137.00 levels as seen here. A bullish reversal is expected from the current levels, that could rally towards 139.40 at least. Recommendations are to remain long for now, risk remains at 136.00.


2. Support is seen at 136.00/135.80.00, followed by 134.00 and lower while resistance is seen at 138.50, followed by 139.50 and higher respectively.


3. The structure indicates that EUR/JPY could continue rallying from the current 137.00 level.


Trading recommendations:


Remain long, stop below 136.00, the target is open.


Good luck!


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Technical analysis of GBP/CHF for Aug 27, 2014


Technical outlook and chart setups:


1. Currently, the GBP/CHF pair is seen to be stalling at 1.5200 levels. The pair is expected to face stiff resistance at 1.5250 from here on and then continue drifting lower. Recommendation is to sell around the 1.5250 levels, risk remains above 1.5350.


2. Support is seen at 1.4950, followed by 1.4780 on the daily chart view, while resistance is seen at 1.5350, followed by 1.5450 respectively.


3. The structure indicates that the GBP/CHF pair could continue drifting lower towards the 1.4900 levels.


Trading recommendations:


Consider selling around the 1.5250 levels.


Good luck!


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Technical analysis of USD/CAD for August 27, 2014

General overview for 27/08/2014 09:00 CET


All of the projected target levels for wave c of the corrective cycle have been violated and the market still did not rebound from the sell-off. This means the corrective cycle might get more complex and time-consuming as the none of the simple corrections in shape of running or irregular flats did not work. The only last chance for a corrective cycle to rebound from the target level is at 161% of Fibo relationship between the internal corrective waves at the level of 1.0901. Any breakout lower is bearish and the market will try to test the demand zone between the levels of 1.0858 - 1.0873.


Support/Resistance:


1.0858 - 1.0873 - Demand Zone


1.0901 - Wave C Green Target


1.0911 - WS1


1.0926 - Intraday Resistance


1.0974 - Weekly Pivot


Trading recommendations:


All long positions from yesterday should be closed and traders should open the new buy orders from the level of 1.0901 with a very tight SL in case of a breakout.


usdcad_h1.jpgusdcad_h4.jpgThe material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of Silver for Aug 27, 2014


Technical outlook and chart setups:


1. Silver rallied through the $19.70 levels yesterday before pulling back sharply lower. At the moment, the metal is trading at $19.47, and is expected to rally further, completing a bullish reversal signal on the daily chart. Recommendation is to remain long, risk remains below $19.00


2. Support is seen at $19.00, followed by $18.60 and lower while resistance is seen at $20.20(interim), followed by $21.20/40 and higher respectively.


3. The structure indicates that Silver remains constructive till prices are above the $19.00 levels.


Trading recommendations:


Remain long, stop below $19.00, target is open.


Good luck!


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Intraday trading recommendations on GOLD for August 26, 2014

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The yellow metal ran up to $1,290 and closed at $1,280.60. It has been consolidating for the last 5 days. Today, the metal opens above previous close, which resulted in strong opening. It is facing strong resistance at $1,285 on closing basis. As we recommended yesterday, the metal touched our targets and came back.


If a daily close is above $1,285, the near-term sharp run will take place. - pending


If it closes above $1,285, it can fly up to $1,295, 1300, and 1306 in the near term.


For an hourly trading view, the metal prices are closed above key hourly moving averages. The metal has support at $1,282, $1,279.80, and $1,276.50.


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Intraday trading recommendations on GBP/JPY for August 27, 2014

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The pair hit the 100DSma and closed below that. In yesterday's session, the 100Dsma was acting as strong resistance. As of now, the pair has made a 172.35 in Asia's session; it got rejection there from 100DSma at the 172.36 level and holding support at 20DSma at 172. Now, the pair has made a low at the 172.12 level. On the daily chart, the 20Dsma has been acting as the crucial level for 5 trading days. A daily close below 172 (20Dsma) attracts the bears towards the 169 level. The pair will have strong resistance at 172.96 in the short term.


The short-term trading range is framed between 173-169. A daily close below/above these levels will create more room for trading.


Support is at 172 and 169.


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For an hourly trading, the price is holding support at 34hrsma. Currently, the prices are making minor support at 172.12 (10hr low); below this, 171.85 and 171.63 are open targets. On the upper side, it has resistance at 172.23 and 172.30.


Buy above 172.30.


Sell below 172.


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Intraday trading recommendations on USD/CAD for August 27, 2014

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In yesteday's session, the pair exactly touched the neck line and got rejection there. In today's session, the pair fell to a 2-day low and testing its luck at 20Dsma at 1.0929. If breaking below 1.0929, the pair will extend its fall to the 1.09, 1.0886, 1.08834, and 1.0864 levels.


A daily close is below 1.0929; the intraweek fall will extend to 1.0886. - Pending.


On the upside, 1.0986 is acting as strong resistance in the near term. A daily close above this will give an upside breakout.


Support is at 1.0886, 1.0883, and 1.0864.


Resistance is at 1.0986, 1.1010, and 1.1053.


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For an hourly trading perspective, the prices are closed and trading below the 12ema levels. It leads to the weakness of the pair for an intraday view. The prices hit the previous swing low in the h4 chart. It has resistance at 1.0955 above this; it can fly up to the 1.0956 and 1.0962 levels. Until the h4 candle closes above 1.0965, selling on an upmove will mint money.


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Intraday trading recommendations on EUR/JPY for August 27, 2014

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The pair hit the 20DSma and closed below that in yesterday's session. In today's session, the pair was rejected at 20DSma again and moving to lower levels. As of now, the pair has made a 137.14; in Asia's session, it got rejection there from 20DSma at the 137.15 level. The pair has support at the 136.76, 136.60 and 136.36 levels for an intraweek basis. As we recommended in yesterday's session, "selling on every rise" mints good money. The pair will have strong resistance at 137.65 in the short term.


Support is at 136.76, 1.36.60, and 136.36.


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The pair was rejected from 34hr sma in yesterday's session. For an intraday basis, the pair has a strong support between the 136.76-136.81 levels. Breaking below these, it can extend its fall up to the 136.60, 136.36, and 136.18 levels. Until the h4 candle closes above 137.20, sell on an up move.


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Technical analysis of EUR/USD for August 27, 2014

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When the European market opens, some economic news will be released such as GfK German Consumer Climate and German Import Prices m/m.The US will release Crude Oil Inventories as well. So amid the reports, EUR/USD will move with low volatility today.


Today’s technical levels:


Breakout BUY Level: 1.3233.

Strong Resistance:1.3225.

Original Resistance: 1.3212.

Inner Sell Area: 1.3199.

Target Inner Area: 1.3168.

Inner Buy Area: 1.3137.

Original Support: 1.3124.

Strong Support: 1.3111.

Breakout SELL Level: 1.3103. Disclaimer: Trading Forex (foreign exchange) on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts. The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of USD/JPY for August 27, 2014

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In Asia, Japan will not release any news but the US will unveil its Crude Oil Inventories. So there is a big probability USD/JPY will move with low volatility today.


Today’s technical levels:


Resistance. 3: 104.58.

Resistance. 2: 104.38.

Resistance. 1: 104.17.

Support. 1: 103.92.

Support. 2: 103.72.

Support. 3: 103.51.

Disclaimer: Trading Forex (foreign exchange) on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts. The material has been provided by InstaForex Company - www.instaforex.com

Daily analysis of major pairs for August 27, 2014

EUR/USD: This is a bear market, and the price is trading below the resistance line at 1.3200. There is a high probability that the price may reach the support line at 1.3150. Should there be any rally in the chart, it could take the price towards the aforementioned resistance line. When the price goes above the resistance line at 1.3250, it would mean that the bearish outlook is over.


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USD/CHF: After the gap on it, USD/CHF has been trying to resume its northward journey. It may test the resistance level at 0.9200. The Bullish Confirmation Pattern in the chart underlines the possibility of further northwards journey. The support level at 0.9100 is acting as a barrier to any pullbacks along the way.


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GBP/USD: The Cable is now trading below the distribution territory at 1.6550. It has the potential to test the accumulation territory at 1.6500. The overall bias is bearish – a long term trend; and this may continue.


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USD/JPY: This currency pair has been able to maintain its bullish bias so far this week. The price is above the EMA 56 and the ADX period 14 is above the level 50. The pair is now above the demand level at 104.00 – the next target is at the supply level of 104.50.


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EUR/JPY: EUR/JPY has continued its downward journey which started on Friday, August 22, 2014. Since it tested the supply zone at 138.00, the price has dropped by nearly 100 pips, and this has resulted in new ‘sell’ signal. The price may go further downwards toward the demand zone at 136.50. However, this would happen only as the euro continues its weakness.


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Daily analysis of USDX for August 27, 2014

Daily chart: The USDX is consolidating above the support level of 82.51. It could climb up to the resistance level of 83.22 this week, but we should take into account that this instrument is overbought. If the USDX manages to make a breakout at the support level of 82.51, it would be expected to fall to the level of 81.50. The MACD indicator is in positive territory.


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H4 chart: The USDX is trying to stay above the bullish trend line, which is above the level of 82.60. The next target for this instrument is the resistance level of 83.00. If the USDX manages to make a breakout at that level, it would be expected to rise to the level of 83.75. This MACD indicator entering neutral territory.


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H1 chart: The USDX remains above the support level of 82.50 since it has been moving within a range for several days. You should remember that the USDX opened the week with a bullish gap which still has not been filled so far. If the USDX manages to make a breakout at the level of 82.67, it's expected to rise to the resistance level of 82.85. The MACD indicator is in positive territory.


USDXH1.png


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 82.67, take profit is at 82.85, and stop loss is at 82.49.


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

Daily analysis of GBP/USD for August 27, 2014

Daily chart: GBPUSD is trying to make a breakout at the support level of 1.6540, so this pair continues to form a higher low pattern above this level. It has formed a fractal support level, so it is likely that GBP/USD will rebound at current levels and will try to climb to the 200-day moving average. However, GBP/USD remains strong in the bearish trend. The MACD indicator is entering neutral territory.


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H4 chart: GBP/USD is trying to make a breakout at the support level of 1.6553, because it is very likely that it will to the level of 1.6464, which would be a strengthening of the bearish trend. The GBP/USD pair has been below the 200-day moving average already. However, it is recommended to place sell orders with caution since GBP/USD is overbought. The MACD indicator is entering neutral territory.


GBPUSDH4.png


H1 chart: GBP/USD is conducting a breakout at the 1.6544 level, so it is very likely that GBP/USD will fall to the support level of 1.6507 in the coming hours. If GBP/USD manages to make a breakout at that level, it would be expected to fall to the support level of 1.6464. The GBP/USD has found strong resistance at the 1.6578 level. The MACD indicator remains into negative territory


GBPUSDH1.png


Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the GBP/USD pair breaks a bearish candlestick; the support level is at 1.6544, take profit is at 1.6507, and stop loss is at 1.6581.


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