EUR/NZD analysis for September 09, 2014

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Overview:


Since our last analysis, EUR/NZD has been trading sideways, around the price of 1.5570. We can observe sideways movement (consolidation), which is normal reaction after a strong selling climax in the background. It is still unsafe to buy anything, so watch for potential selling opportunities after retracement. According to the 4H time frame, we can observe weak reaction from buyers, so buying looks very risky. Anyway, if the price breaks the level of 1.5550, we may see potential testing the level of 1.5455 (swing low like support). According to previous price action, I found resistance level at the price of 1.5640.


Daily Fibonacci pivot levels :


Resistance levels:


R1: 1.5629


R2: 1.5653


R3: 1.5692


Support levels:


S1: 1.5551


S2: 1.5527


S3: 1.5488


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


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Gold analysis for September 09, 2014

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Overview:


Since our last analysis, gold has been trading downwards. As we expected, the price tested the level of 1,251.23 in a volume above average. The price rejected from our Fibonacci retracement 38.2% at the level of 1,272.00, and that is the reason why we saw bearish continuation. Our major Fibonacci expansion 61.8%% is on the test. If the price breaks the level of 1,251.00 in a high volume, we may see more downward movement and potential testing the level of 1,218.00 (Fibonacci expansion 161.8%). According to the 4H time frame, we can observe weak demand in the background, which is a sign that buying looks risky.


Daily pivot Fibonacci points:


Resistance levels:


R1: 1,267.50


R2: 1,272.34


R3: 1,280.17


Support levels:


S1: 1,251.84


S2: 1,247.00


S3: 1,239.17


Trading recommendations: Buying at this stage looks risky since the price has rejected from our Fibonacci retracement 38.2%.


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Technical analysis of NZD/USD for September 9, 2014

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Overview :



  • The NZD/USD pair did not show any signs of following the break of the highest level of 0.8300. Furthermore, the price opened below the ratio of 61.8% Fibonacci retracement levels (0.8308). Additionally, the resistance is set at the 0.8300 level on September 9, 2014. Therefore, it will be a good sign to sell below the level of 0.8300 with the first target of 0.8245 and resume to 0.8220, but it should be noted the double bottom is going to set at the price of 0.8205. Meanwhile, the daily chart represents strong support at 0.8205, for that it will be quite profitable to set your stop loss below the price of 0.82.

  • However, in case a reversal takes place and the NZD/USD pair breaks through the resistance level of 0.8300, the market will lead to futher rise to 0.8327 today in order to indicate a correctional movement at this level.



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Technical analysis of USD/CHF for September 9, 2014

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Forecast in the long term :



  • According to the previous events, the USD/CHF pair has still been trapped between 0.9450 and 0.9305.

  • Also, it should be noted that the double top will bet set at the price of 0.9455.

  • Strong resistance will be formed at the level of 0.9450 providing a clear signal for sell deals with the targets seen at 0.9366 nad 0.9300.

  • Stop-loss is to be placed above 0.9483.

  • Strong support will be formed at the level of 0.9293 providing a clear signal for buy deals with the target seen at the 0.9450 level.

  • Stop-loss is to be placed below 0.9263.


Notes :



  • We expect a range about 54 pips today.

  • The risk of 54 pips must make a profit of 81 pips.

  • The value of 78.6% Fibonacci retracement levels is 0.9293.

  • The level of 0.9293 will confirm the bullish market.

  • Volatility on September 9, 2014 is 73.27. As a rule, the market is highly volatile if the last day had a huge volatility.


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Technical analysis of EUR/JPY for September 9, 2014

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


The market is about to complete the extended corrective cycle in a shape of an abc purple irregular flat correction. The 50%Fibo level is being tested now and there is always some degree of possibility that this corrective cycle will become more complex and time-consuming and 61%Fibo will be tested. But so far it looks like if the intraday support at the level of 136.60 is violated, then the market should start the last impulsive leg to the downside.


Support/Resistance:

135.71 - Technical Support

136.60 - Intraday Support | Weekly Pivot |

136.98 - Intraday Resistance

137.03 - 50%Fibo

137.32 - 61%Fibo

137.72 - WR1

138.25 - Swing High


Trading recommendations:

Day traders should consider opening sell stop orders at the level of 136.60, with SL above the level of 136.98 and TP at the level of 135.71 with a possible downward extension to the level of 135.45.


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Technical analysis of USD/CAD for September 9, 2014

The market is trying to make new highs here as it has been anticipated yesterday. Then, more upside should be seen here as there is unfinished impulsive wave progression to the upside. The next resistance is at the level of 1.1052 but on larger time frames even higher price levels can be seen as the mid-term trend is bullish.


Support/Resistance:


1.1060 - WR3

1.1002 - WR2

1.0995 - Technical Resistance

1.094 1- WR1

1.0908 - Intraday Resistance

1.0881 - Weekly Pivot

1.0820 - WS1


Trading recommendations:

Yesterday's buy orders have hit the target levels. For today, day traders should consider buying the dips with SL below the level of 1.0980 and TP at the level of 1.1052.


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#USDX Technical analysis for September 9, 2014

The Dollar index remains strong and in a bullish trend. Having broken strongly above the 84 level, we now reach important resistance area of 84.75-85 area that could put a pause to this strong rally. The probability of a pullback from the current levels cannot be ignored and bulls should be very cautious and raise their stops.


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The trend remains strongly bullish. Support is at 83.75 and 84.10. Price continues to make higher highs and higher lows. In Ichimoku terms, the trend remains strongly bullish but could soon see a pause in the rise.


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The weekly chart above shows that we are closing in at very important resistance levels. Surely, the current upward move is very strong and a break above 85 could signal a bigger upward trend reversal. I believe we are going to test the 84.75-85 levels soon. Taking profits and avoiding to be greedy is advised.


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Gold Technical analysis for September 9, 2014

Gold price continued with a new lower low yesterday as we expected. The trend remains down. Our short-term target remains at $1,240 while we should not be surprised to see Gold price fall below $1,200 in a sharp move. Bears continue to have the upper hand as Gold price is below previously important support levels of $1,270-75.


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In the 4 hour chart, price remains in a clear downtrend. Price is below the Ichimoku cloud with both the kijun- and tenkan-sen pointing lower while the Chiku span also points lower. Support is found at $1,250 and $1,240. I expect these levels to be reached. Resistance is found at $1,274. If broken, we could see a bounce towards $1,285.


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The daily chart remains fully bearish with a short-term target of $1,240 and with a bigger target of $1,000. Price is below the important red trend line that comes through $1,180 and $1,240. Price continues to make lower lows and lower highs in the daily chart. The trend will change only if price breaks above $1,295.


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Intraday trading recommendations on GBP/JPY for September 09, 2014

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The Scotland Independence news hit the pound very strongly. The pair hit the previous two swing lows in intraday, but at the end of the day the pair managed to close above the higher swing which means the bullish outlook is still alive in the short term. The 200DEma gave enough support to push the prices towards 200DSma. The pair opened with a mild bearish note; we expect the previous swing low at 170.45 will provide enough support. The trading pattern is framed between 169.20-171.30. When a daily close is above 171.30, it will fly up to 171.65 and 171.88. The short-term trend will turn negative if the pair closes below 169.20 on a weekly closing basis.


Key support level is 169.20.


Resistance is at 172.25.


Until a week closes above 172.25, bears will try to push the prices to lower levels.


Intraday cmp 170.62.


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The pair is restricted at 12ema, above this the 2-week descending trend line will act as major resistance. We can see a sharp run only above 171 towards 171.50 and 171.70. On the down side, it has support at 170.50. We recommend selling below 170.50. Buy above 171.


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Intraday trading recommendations on EUR/JPY for September 09, 2014

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The pair gets support from August 08 at a low of 135.72 twice and pushed towards 20Dsma. But the pair was restricted at 20Dsma. In today's session the pair is unable to breach the previous days high. The pair opened with a mildly bearish note. The pair has strong resistance at the 137.10, 137.35, and 137.55 levels. Once 137.10 is taken off, it can fly up to 137.55. On a positional basis, until the price closes above 137.10 (20Dsma), the trading pattern will be framed between the 135.70-137 levels. A break below 135.70 leads to a downfall to 134 on a positional basis. On a short-term basis, until the pair closes above the broken support triangle, bears will have an upper hand to make 134 initially after the 131 level.


Intraday cmp 136.70


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The price is closed and trading above 12ema and 21hrsma. The pair is facing strong resistance at 34hrsma. It made a double top in the hourly chart. The RSI in the h4 chart is indicating a buy signal. We recommend buying at cmp and add on dip with sl 136.50 for an upside target at 136.97 and 137.30. Above 137, we can see a sharp upmove towards 137.33. On the downside, it has the support level between 136.58-136.55.


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Intraday trading recommendations on Gold for September 09, 2014

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The metal took the support at $1,250 and managed to close above $1,254 at a previous session. Today, the metal opened with a bullish note opening low. The metal has resistance at $1,257, above this the metal will regain some strength by lower level buying. The metal has resistance at $1,268-$1,269 and $1,272.80. The weekly resistance existed at $1,282.50 (20Dsma). Until the metal closes above $1,282.50, the near term favors selling on an up move. On the down side, below $1,250 it can extend its fall up to $1,247, $1,245, and $1,240. The medium-term break down will trigger below $1,240 towards the $1,220 and $1,210 levels.


Support $1,250 $1,245 $1,240.


Resistance $1,257 $1,262 $1,268-$1,269.


Intraday cmp $1,256.70.


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We recommend to buy for an hourly and intraday basis at cmp. The real power will gain above $1,260 towards $1,261, $1,264.50 and $1,267.50. Hourly traders can buy with sl $1,255, intraday trades can use sl $1,250. Strong sell will emerge below $1,250, traders can reverse their trade if $1,250 taken off for a down side target $1,245 and $1,240 levels.


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Intraday trading recommendations on GBP/USD for September 09, 2014

Short term forecast-


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The Scotland Independence news hit the pound very strongly, hit the 200WEma and is approaching the short-term support or 1.60 50Msma. Currently, the pound is trading at 1.6099. A break below 1.60 leads to another 100-150 pips fall up to 1.5894-1.5850 (November 2013 low) in the least case, it can extend its fall up to 1.5718 (the 61.8fib level move from 1.4813-1.7192). The monthly momentum Oscillators are still indicating the sell mode. On the upside, it has resistance at 1.6210 and 1.6252 is the monthly strong resistance


Key support level 1.60


Intraday cmp 1.61


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The hourly and intraday oscillators are indicating oversold levels. At this point of time, fresh selling is not a good idea. Use a dip to buy on an hourly and intraday basis, wait for an up move to sell again. This view is valid with sl 1.60 on a daily closing basis. The pair has resistance at 1.62-1.6220, 1.6252, 1.6310, and 1.6391. Bulls use a dip to buy with sl 1.60 and bears can wait for a minor up move to sell again.


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Technical analysis of USD/JPY for September 09, 2014

In Asia, Japan will release its Monetary Policy Meeting Minutes, Tertiary Industry Activity m/m, M2 Money Stock y/y, 30-y Bond Auction, Consumer Confidence, and Prelim Machine Tool Orders y/y data. Meanwhile, the US will release its NFIB Small Business Index and OLTS Job Openings. So there is a big probability the USD/JPY pair will move with low to medium volatility during the Asian session, but with low volatility during the US session.


Today’s technical levels:


Resistance. 3: 106.54.

Resistance. 2: 106.33.

Resistance. 1: 106.12.

Support. 1: 105.87.

Support. 2: 105.66.

Support. 3: 105.45. 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.


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Technical analysis of EUR/USD for September 09, 2014

When the European market opens, some economic news will be released such as French Gov Budget Balance and French Trade Balance. The US will release its NFIB Small Business Index and JOLTS Job Openings. So amid the reports, EUR/USD will move low volatility during this day.


Today’s technical levels:


Breakout BUY Level: 1.2954.

Strong resistance:1.2947.

Original resistance: 1.2934.

Inner sell area: 1.2921.

Target inner area: 1.2891.

Inner buy area: 1.2861.

Original support: 1.2848.

Strong support: 1.2835.

Breakout SELL level: 1.2828.



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.


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Technical analysis of GBP/CHF for September 09, 2014
















Technical outlook and chart setups:


The GBP/CHF pair pushed lower into the 1.5000 levels yesterday as expected and discussed, and as seen on the daily chart view here. The pair pulled off the lows and closed around 1.5060 levels, but bearish pressure should remain for a while and intraday rallies should be considered as fresh short opportunities. The 1.5050 mark should now be acting as intermediary resistance. Bears seem to remain under control at least till 1.4800 levels as depicted here, which is fibonacci extension level of the down swing from 1.5430 levels through 1.5050 earlier. The pair, at the moment is still said to be retracing the entire rally from 1.4450 levels through 1.5430 levels as seen here. Immediate support is seen at 1.4960, followed by 1.4760, while resistance is at 1.4250/75, followed by 1.5430 respectively.


Trading recommendations:


Remain short, stop above 1.5300, target 1.4800.


Good luck!


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Technical analysis of EUR/JPY for September 09, 2014
















Technical outlook and chart setups:


The EUR/JPY bulls responded well at the back side of resistance turned support line yesterday, as expected. The pair has now produced a bullish reversal candlestick pattern as seen on the daily chart view here and prices and prices pushed ahead up to 137.00 mark before closing at 136.80 yesterday. It looks like the bulls are back in control and should continue dragging prices higher up towards 139.80 and subsequently also through 141.30/40 levels. Support is now seen at 136.00/135.80 levels, while resistance is fixed at 138.20 (interim), followed by 139.20, and 140.10 respectively. The structure for now, reveals that bulls remain in control, bottom line remains that 135.80 should hold well.


Trading recommendations:


Remain long for now, stop just below 135.80, target 139.80 at least.


Good luck!


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Daily analysis of major pairs for September 9, 2014

EUR/USD: There is a long-term Bearish Confirmation Pattern in the market. With further weakness in this market, the price has tested the support line at 1.2900. Should the support line at 1.2900 get broken to the downside, the next target would be the support line at 1.2850.


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USD/CHF: This is a bull market – which is supposed to continue as long as EUR/USD is weak. The barriers that were once thought as being impregnable (the erstwhile resistance levels) have already been breached to the upside. The market may go further north, reaching another resistance level at 0.9400.


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GBP/USD: With a strong weakness in this currency trading instrument, the Bearish Confirmation Pattern in the market is clean and straightforward. Moreover, the price opened this week with a gap-down. In fact, every GBP pair gapped up or down at the open of the markets. The price has trended downwards following the gap and this may be the stance for this week: further movement southwards.


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USD/JPY: The markets have been going according to expectation. For instance, USD/JPY has already tested the supply level at 106.00. With more strength in the pair, the supply level might be breached to the upside; and the price may go upwards towards the demand level at 106.50.


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EUR/JPY: This cross which went downwards significantly last week, made serious bullish attempts on Monday. The bullish attempts have been formidable enough to pose threat to the recent ‘sell’ signal and the weakness in the yen is one cause of this. Any movement above the supply zone at 137.50 would be the end of the bearish bias. However, as long as the price is below that supply zone, the bearish bias is valid.


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Daily analysis of USDX for September 09, 2014

Daily chart: The USDX had a bullish momentum above the support level of 83.74. So now the USDX is trying to make a breakout at the resistance level of 84.29. If it succeeds, it would be expected to climb up to the resistance level of 85.18, which would be a strong bullish consolidation. The MACD indicator stays in positive territory.


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H4 chart: The USDX is trying to consolidate above the bullish trend line near to the level of 84.25. If the USDX succeeds in doing a breakout at the resistance level of 84.47, it's expected to rise to the level of 85.06, bearing in mind that the USDX is entering overbought area. The MACD indicator stays in positive territory.


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H1 chart: The USDX is trying to form a higher high pattern above the support level of 84.18. If the USDX manages to make a breakout at the resistance level of 84.37, the next objective would be the level of 84.60. However, the USDX could carry out a pullback and fall back to the support level 84.03. The MACD indicator stays in positive territory.


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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 84.37, take profit is at 84.60, and stop loss is at 84.14.


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Daily analysis of GBP/USD for September 09, 2014

Daily chart: GBP/USD failed to fill the bearish gap yesterday, so this pair is consolidating below the resistance level of 1.6146. The next objective for this pair is the level of 1.6043. If GBP/USD manages to make a breakout at that level, it's expected to fall to the support level of 1.5883 in the medium term, although it is likely that the pair will rebound at current levels. The MACD indicator stays in positive territory.


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H4 chart: GBP/USD is trying to fall to the support level of 1.6004. If this pair consolidates below that level, the next support level would be 1.5811. GBP/USD remains far from the 200-day moving average and the MACD indicator remains in negative territory.


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H1 chart: The GBP/USD encountered resistance at the 1.6170 level, so it is likely that this pair will try a breakout at the support level of 1.6117, and will fall to the level of 1.6075. The MACD indicator is entering neutral territory.


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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 will be at 1.6075, take profit is at 1.6031, and stop loss will be at 1.6119.


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Technical analysis of USD/JPY for Sep 08, 2014

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Fundamnetal Overview:


USD/JPY is expected to consolidate in a higher range after hitting a near-six-year high at 105.71 on Friday (the highest since Oct. 3, 2008). USD/JPY is undermined by the weaker dollar sentiment after fewer-than-expected 142,000 increase in U.S. August non-farm payrolls (versus forecast +225,000). The unemployment rate is slipped to 6.1% last month from 6.2% in July, in line with the forecast, but that came as the labor-force participation rate fell to 62.8% from 62.9% in July. USD/JPY is also weighed by the lower shorter-dated U.S. Treasury yields (2-year at 0.512% versus 0.536% late Thursday as the U.S. yield curve steepened) and Japan exporter sales. But USD/JPY downside is limited by the demand from Japanese importers and reduced safe-haven appeal of the yen as the risk sentiment improves (VIX fear gauge eased 4.35% to 12.09; S&P 500 rose 0.5% to close at 2,007.71 on Friday) as the disappointing payrolls report relieves pressure on Federal Reserve officials to alter significantly their policy stance and the signal they've been sending of continued low interest rates after the expected end of their bond-buying program in October.


Technical comment:
The daily chart is positive-biased as MACD and stochastics are bullish, although latter is in the overbought zone, five and 15-day moving averages are advancing. .


Trading recommendations:
The pair is trading above its pivot point. It is likely to trade in a higher range as far as it remains above its pivot point. As long as the price is keeping above its pivot point, a long position is recommended with the first target at 105.70 and the second target at 105.90. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 104.70. A break of this target would push the pair further downwards and one may expect the second target at 104.35. The pivot point is at 104.95.


Resistance levels:

105.70

105.90

106.35


Support levels:

104.70

104.35

104


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Technical analysis of USD/CHF for Sep 08, 2014

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Fundamental Overview:


USD/CHF is expected to trade in a higher range after hitting a one-year high at 0.9335 on Friday. USD/CHF is undermined by the weaker dollar sentiment after fewer-than-expected 142,000 increase in U.S. August non-farm payrolls (versus forecast +225,000). The unemployment rate slipped to 6.1% last month from 6.2% in July, in line with forecast, but that came as the labor-force participation rate fell to 62.8% from 62.9% in July, it is also weighed by the lower shorter-dated U.S. Treasury yields (2-year at 0.512% versus 0.536% late Thursday as the U.S. yield curve steepened); and franc demand on soft EUR/CHF cross. But USD/CHF downside is limited by the contagion from weak EUR on CHF, dovish Swiss National Bank's monetary policy and franc sales on buoyant AUD/CHF, NZD/CHF crosses.


Technical Comments:
The daily chart is still positive-biased as MACD is bullish, stochastics stays elevated in the overbought zone, 5 and 15-day moving averages are advancing.


Trading recommendations:


The pair is trading above its pivot point. It is likely to trade in a higher range as far as it remains above its pivot point. As long as the price is keeping above its pivot point, a long position is recommended with the first target at 0.9345 and the second target at 0.9380. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.9250. A break of this target would push the pair further downwards and one may expect the second target at 0.9210. The pivot point is at 0.9290.


Resistance levels:

0.9345

0.9380

0.9425



Support levels:


0.9250

0.9210

0.9175


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Technical analysis of NZD/USD for Sep 08 , 2014

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Fundamental Overview:


NZD/USD is expected to consolidate in a lower range after hitting a six-and-a-half month low at 0.8267 on Friday. It is supported by the weaker dollar sentiment after fewer-than-expected 142,000 increase in U.S. August non-farm payrolls (versus forecast +225,000). The unemployment rate slipped to 6.1% last month from 6.2% in July, in line with the forecast, but that came as the labor-force participation rate fell to 62.8% from 62.9% in July. USD/JPY also weighed by lower shorter-dated U.S. Treasury yields (2-year at 0.512% versus 0.536% late Thursday as the U.S. yield curve steepened, NZD-USD interest differential, Kiwi demand on soft EUR/NZD and GBP/NZD crosses, and on buoyant NZD/CHF cross. But NZD/USD upside is limited by the Kiwi sales on buoyant AUD/NZD cross and weak dairy prices.


Technical Comment:
The daily chart is mixed as MACD is bearish, 5 and 15-day moving averages are falling, but stochastics is turning bullish to the oversold zone.


Trading recommendations:
The pair is trading above its pivot point. It is likely to trade in a higher range as far as it remains above its pivot point. As long as the price is keeping above its pivot point, a long position is recommended with the first target at 0.8350 and the second target at 0.8390. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.8240. A break of this target would push the pair further downwards and one may expect the second target at 0.8190. The pivot point is at 0.8265.


Resistance levels:

0.8350

0.8390

0.8435


Support levels:

0.8240

0.8190

0.8175


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USD/CAD intraday technical levels and trading recommendations for September 8, 2014

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The bullish breakout off the depicted channel allowed the bulls to retest the price zone between 1.0910-1.0850 (50-61.8% Fibonacci levels on the daily chart) where a prominent congestion zone was previously formed.


One month ago, the USD/CAD pair failed to maintain daily closure above price level of 1.0950, then a double-top reversal pattern was expressed at retesting last week.


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


A valid SELL position was suggested at retesting which took place last week. The initial bearish target was located around 1.0825, then 1.0770 (considerable Intraday support).


The price zone of 1.0880-1.0900 still offers a valid low-risk SELL entry as we mentioned last week.


As long as the recent top at 1.0990 remains unbroken, our sell position remains valid.


Daily closure below the price zone of 1.0870-1.0850 confirms a long-term double-top pattern (on the daily chart) with its projection target located at 1.0770.


Note that last week the USD/CAD fell slightly after the release of the PMI data (below expectations), a bearish spike dipped down to 1.0870 before bullish recovery was witnessed.


On the other hand, 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 meantime).


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Technical analysis of GBP/JPY for Sep 08, 2014

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Fundamental Overview:
GBP/JPY is expected to consolidate with a bearish bias. The pound sterling is hurt by jitters over increased prospects of Scottish independence after a YouGov survey Saturday showed 47% of respondents said "yes" to independence, while 45% said "no"-- the first time supporters of Scottish independence have taken the lead since the referendum campaign began. Analysts say a vote for Scottish independence on Sept. 18 could have serious repercussions for both the Scottish and U.K. economy, having the potential to cause chaos in financial markets as it brings uncertainty on issues including currency, tax and trade regulations and weaker USD/JPY undertone as well as Japan export sales. But GBP/JPY downside is limited by the demand from Japanese importers.


Technical Comment:
The daily chart is negative-biased as MACD and stochastics are bearish.


Trading recommendations:
The pair is trading below its pivot point. It is likely to trade in a lower range as far as it remains below its pivot point. Short position is recommended with the first target at 169.25. A break of this target will move the pair further downwards to 168.55. The pivot point stands at 170.90. In case the price moves in the opposite direction and bounces back from the support level, then it will moves above its pivot point. It is likely to move further to the upside. In that scenario, a long position is recommended with the first target at 171.75 and the second target at 172.35.


Resistance levels:

171.75

172.35

172.75



Support levels:


169.25

168.55

168.15


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