EUR/NZD analysis for October 14, 2014

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Overview :


In our last analysis, EUR/NZD has been trading sideways around the price of 1.6100. We are still waiting for larger volume and stronger price action. I have placed Fibonacci expansion from most recent swings to find potential end of the bullish corrective phase. I got Fibonacci expanson 61.8% at the price of 1.6200 (held successful). If the price breaks the level of 1.6000, we may see the testing of the level of 1.5900. Be careful when buying and watch for potential selling opportunities after retracement. According to the daily timeframe, we can observe weak demand on the market. We got intraday support level at the price of 1.6070.


Daily Fibonacci pivot levels :


Resistance levels:


R1: 1.6202


R2: 1.6238


R3: 1.6296


Support levels:


S1: 1.6086


S2: 1.6050


S3: 1.5992


Trading recommendations: Be careful when buying the EUR/NZD pair since we may see short-term bearish continuation


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Technical analysis of EUR/JPY for October 14, 2014

General overview for 14/10/2014 12:55 CET


Yesterday's intraday resistance at the level of 136.55 has held the rally and the market has reversed from this resistance level and made new low. This is why the count has been slightly changed to extend the last wave Z brown a little more to the downside before the bounce in Wave B black will begin. Please notice the building bullish divergence on awesome oscillator that supports the view, that this market is about to rebound.


Support/Resistance:


134.62 - WS1


135.08 - Intraday Support


135.54 - Intraday Resistance


136.30 - Weekly Pivot


136.55 - Technical Resistance


136.96 - WR1


136.93 - Technical Resistance


Trading recommendations:


Yesterday's advise to buy only if the level of 136.55 is clearly broken, worked as planned as the market wasn't strong enough to breakout above it, so the only reasonable way to trade was to open a short order. Currently more selling pressure is expected as well and the intraday target is at the level of 134.62.


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Technical analysis of USD/CAD for October 14, 2014

General overview for 14/10/2014 12:45 CET


The wave progression is being re-labeled to fit the alternative count and this one is very bullish. Currently the market is back to the golden channel zone and impulsive development is getting stronger as the market is about to break higher above the last swing high. The first target is on the level of 1.1277, but it might get easily extended to the level of 1.1291.


Support/Resistance:


1.1291 - WR1


1.1277 - Technical Resistance


1.1221 - Intraday Support


1.1186 - Weekly Pivot


1.1158 - Intraday Support


1.1124 - Intraday Support


1.1108 - WS1


1.1070 - 1.1080 - Demand Zone|Key Level|


Trading recommendations:


As advised yesterday, buying the dips is the way to go in this market to trade it and now please notice some profit taking might have place when the price hits the level of 1.1277. Nevertheless, the bias is still bullish and higher levels are expected.


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Technical analysis of NZD/USD for October 14, 2014

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Overview :



  • The psychological price will set at the level of 0.7888 today, and it is going to act as a weekly pivot point. Moreover, the NZD/USD pair has formed a support at the level of 0.7710 and the area of 0.7707 is probably going to compose a Double Bottom, hence the price of 0.7707 will form the last bearish wave and will act as a strong support on October 14, 2014. So it will be a good sign to buy above the level of 0.7707 with the first target of 0.7888 and further to 0.7952. The level of 0.7952 will act as a strong resistance today for that it will be a good place to take profit below the 0.7952 level. Also, it should be noted that the weekly resistance will set at the level of 0.8070. On the other hand, in case of reversal takes place and the NZD/USD breaks through the support at the price of 0.7833 then the market will lead to further decline towards the 0.77 level in coming days.


Observations :



  • It should be noted that the market was so stable and the trend was also so clear (downward). Therefore, the strong resistance will set at 0.8070.

  • Expect a range of 187 pips as downtrend from the level of 0.8070.

  • A strong support level will be formed at the price of 0.7707 this week.

  • Volatility is 251.84; so the market has called for a high volatility.


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Elliott wave analysis of EUR/JPY for October 14 - 2014

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Today's support and resistance levels:


R3: 135.65


R2: 135.54


R1: 135.35


Current spot: 135.27


S1: 135.09


S2: 134.84


S3: 134.54


Technical summary:


We saw the expected correction towards the ideal corrective target at 136.52 (the top came in at 136.54 just 2 small pips above the ideal corrective target). The following decline is clearly impulsive in character and after a short term consolidation near 135.10 we will be looking for the next impulsive decline towards the 133.58 target. At 133.58 we will meet the 23.6% corrective target of the rally from 94.10 to 145.69, this target is the absolute minimum we would normally expect in a correction. The more normal corrective target would be the 38.2% corrective target, which comes in at 125.98.


Trading Recommendation:


We are short EUR from 135.70 and will move our stop lower to 136.60. If you are not short EUR yet, then sell EUR near 135.65 with the same stop at 136.60.


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Technical analysis of USD/CHF for October 14, 2014

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Overview :



  • The price of the USD/CHF pair is supposedly going to form strong support at the level of 0.9566 (00% of Fibonacci retracement levels in the H1 chart, it had formed the last bearish wave last week). It should be noted that the price is going to form a double bottom at this level, but the level of 0.9420 acts as strong support because it is representing the first weekly support. So, the saturation is likely to take place around 0.9420 - 0.9460; moreover, the RSI indicators are also going to call for an uptrend at the same level we indicated above. Therefore, it is possible that the market will start showing bullish signs. In other words, buy deals are recommended above 0.9420 - 0.9460 with the first target seen at the 0.9570 level and further at the 0.9615 level to test the previous weekly pivot point. Thus, it also should be noted that the level of 0.9602 is going to form a minor resistance 1.9602: (61.8% of Fibonacci retracement levels) on October 14, 2014. Additionally, the level of 0.9640 will act as a major resistance.



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Intraday technical levels :


Date: 14/10/2014


Pair: USD/CHF



  • R3: 0.9648

  • R2: 0.9611

  • R1: 0.9543

  • PP: 0.9506

  • S1: 0.9438

  • S2: 0.9401

  • S3: 0.9333


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#USDX Technical analysis for October 14, 2014

The Dollar index is consolidating around the important level of 85.50. At the same time it holds above the 85 support. There are many signs that indicate impeding dollar strength and that the upward trend will resume shortly.


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Red line = price channel


Blue line = pivot level


The Dollar index remains inside the long-term upward sloping price channel. Although the Dollar index is below the Ichimoku cloud in the 4 hour chart, we have seen a double bottom at the 85 area. Price is mostly consolidating sideways and the correction is unfolding over time and not over the price.


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In the daily chart, the Dollar index remains above the 23% retracement. Bulls need to break above the tenkan-sen at 85.85 to regain momentum. So breaking above that level will be a buy signal that could push the index towards its highs and maybe to new highs near 87.17 which is our first target. Trend remains bullish according to the ichimoku cloud indicators. If we see a daily close below 85 we should expect more dollar weakness that will push the index towards 84.


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Gold Technical analysis for October 14, 2014

Gold price remains near its highs and near the 38% retracement. Price makes higher highs and higher lows as short-term trend remains bullish. However I feel that selling pressures will come back and push price to new lows again. I believe this upward bounce from the support at $1,180 is corrective in nature and that the main down trend will soon resume.


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Red line = resistance


Blue line=support


Gold price is above the Ichimoku cloud in the 4-hour chart and exactly at the 38% retracement from the decline that started at $1,322. This upward bounce is most probably a corrective bounce that will soon end. The maximum level for this bounce to be considered as corrective is the $1,255 price level. I do not believe we will see that level. I believe that Gold price will soon break below short-term support at $1,225. Cloud support is found at $1,200. If broken we will have confirmation that we should expect new lows below $1,180.


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Red line= support trend line


The 30-minute chart above shows the higher highs and higher lows Gold price is currently making. The overlapping structure of the rise is a characteristic of corrective patterns. I expect trend to turn bearish again soon. I will get that bearish signal once the red trend line support is broken and once we make a lower low. This means that Gold price should break below $1,225. My longer-term target remains at $1,050-$1,000. In the short-term I'm neutral as long as price is above the red trend line. I prefer taking short positions when and if price breaks below support and below the cloud.


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Technical analysis of USD/JPY for October 14, 2014

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Fundamental overview:


USD/JPY is expected to consolidate with bearish bias after hitting one-month low at 106.76 this morning. It is undermined by the negative dollar sentiment (ICE spot dollar index last 85.22 versus 85.72 early Monday) after Federal Reserve Bank of Chicago President Charles Evans said the "biggest risk" to the economy right now is that the central bank would raise interest rates sooner than it should. That follows his remarks on Saturday that a stronger dollar is a headwind as it will limit the Fed's ability to meet its inflation mandate and will impede growth and comment from Fed Vice Chairman Stanley Fischer that the impact on the U.S. economy of weaker-than-expected foreign growth could cause "the Fed to remove accommodation more slowly than otherwise." USD/JPY is also weighed by the Japanese exporter sales, flows to haven JPY and unwinding of JPY-funded carry trades amid increased risk aversion (VIX fear gauge rose 16.01% to 24.64, S&P 500 fell 1.65% to close at 1,871.74 overnight) as fears mount over the spread of Ebola and worries persist over slowing global economic growth. But USD/JPY losses are tempered by the demand from Japan importers and ultra-loose Bank of Japan's monetary policy. Daily chart is negative-biased as MACD and stochastics are bearish, although latter is at oversold zone, five-day moving average is below 15-day MA and is declining.


Technical comment:
Daily chart is negative-biased as MACD and stochastics are bearish, although latter at oversold, five-day moving average is below 15-day MA and is declining.


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 106.75. A break of this target will move the pair further downwards to 106.50. The pivot point stands at 107.65. In case the price moves in the opposite direction and bounces back from the support level, then it will move 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 108.20 and the second target at 108.50.


Resistance levels:

108.20

108.50

108.80


Support levels:

106.75

106.50

106.25


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Technical analysis of GBP/JPY for October 14, 2014

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Fundamental overview:


GBP/JPY is expected to trade in lower range.It is supported by the soft USD/JPY and demand from the Japanese importers. GBP/JPY is also supported by the negative dollar sentiment and expectations that BOE would raise interest rates in early 2015 ahead of the Federal Reserve. But GBP/JPY gains are tempered by the sterling sales on cross trades versus major currencies and negative risk sentiment.


Technical comment:
Daily chart is still negative-biased as MACD is bearish, stochastics stays suppressed at oversold zone, five and 15-day moving averages are declining.


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 171.60. A break of this target will move the pair further downwards to 171.20. The pivot point stands at 172.65. 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 173.35 and the second target at 174.05.


Resistance levels:

173.35

174.05

174.35

Support levels:

171.60

171.20

170.80


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Technical analysis of NZD/USD for October 14, 2014

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Fundamental overview:


NZD/USD is expected to trade in higher range.It is buoyed by the negative dollar sentiment (ICE spot dollar index last 85.22 versus 85.72 early Monday) after Federal Reserve Bank of Chicago President Charles Evans said the "biggest risk" to the economy right now is that the central bank would raise interest rates sooner than it should. That follows his remarks on Saturday that a stronger dollar is a headwind as it will limit the Fed's ability to meet its inflation mandate and will impede growth and Kiwi demand on soft AUD/NZD cross and better-than-expected Chinese September trade data. But NZD/USD gains are tempered by the negative risk sentiment, weak dairy prices and threats of central bank intervention to weaken the NZD.


Technical comment:

Daily chart is positive-biased as bullish outside-day-range pattern was completed on Monday, MACD and stochastics are bullish, five-day moving average is rising above 15-day MA.


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 0.7920 and the second target at 0.7975. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.7800. A break of this target would push the pair further downwards and one may expect the second target at 0.7760. The pivot point is at 0.7850.


Resistance levels:

0.7920

0.7975

0.8005



Support levels:


0.78

0.7760

0.7745


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Technical Analysis of GBP/JPY on October 14, 2014

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The pair continued its downward journey and closed below 200Dsma in yesterday's session. The pair has support at 171.63 the 80.0 fib level. Today the pair opened above previous close and held the previous day's low. The sellers will benefit only below 171.63 for a downside target at 171.00 and 170.62 levels. For the short term perspective, the pair has weekly support at 171.00 50Wsma, the same provided support on September 2014 at 169.36 level. In case the pair falls below this level, 170.62 200Dema will act as another major support. In the weekly chart, the base of the triangle providing enough support in the short term basis.


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For an intraday view, the prices are closed and trading below hourly moving averages. The price has resistance at 172.72 above this, 173.05 , 173.40 and 173.76 will act as strong resistance levels. Until the prices close below 173.76 in the h4 chart, use every upmove to sell. For an hourly trades, risky traders can start buying above 172.72 and selling below 171.75 to get profit.


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Technical analysis of EUR/USD for October 14, 2014

!EURUSD.jpg When the European market opens, some economic news will be released such as French CPI m/m, German ZEW Economic Sentiment, Industrial Production m/m, ZEW Economic Sentiment. The US will release the economic data too such as the NFIB Small Business Index, so amid the reports, EUR/USD will move with low to medium volatility during this day.

TODAY TECHNICAL LEVELS:

Breakout BUY Level: 1.2784.

Strong Resistance:1.2776.

Original Resistance: 1.2764.

Inner Sell Area: 1.2752.

Target Inner Area: 1.2722.

Inner Buy Area: 1.2692.

Original Support: 1.2680.

Strong Support: 1.2668.

Breakout SELL Level: 1.2660.

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 USD/JPY for October 14, 2014

!USDJPY.jpg In Asia, Japan will release the M2 Money Stock y/y, PPI y/y and the US will release some economic data such as NFIB Small Business Index. So there is a big probability the USD/JPY will move with low to medium volatility during the Asian session, but with low volatility during the US session.

TODAY TECHNICAL LEVELS:

Resistance. 3: 107.70.

Resistance. 2: 107.49.

Resistance. 1: 107.28.

Support. 1: 107.03.

Support. 2: 106.82.

Support. 3: 106.60.


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Technical Analysis of USD/CAD on October 14, 2014

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The US dollar fell against a basket of major currencies. The IMF global growth forecast and concerns about global economic growth raise bets for interest rate hike. But in yesterday's session, the pair gave a bullish close at 6-day high. As we recommended in yesterday's session, the safe buying is not yet triggered. We strongly recommend buying only above 1.1225 levels. On the upper side, the initial resistance is at 1.1225 above this, 1.1245 and 1.1265 will act as trend decider levels. On the down side, it has support at 1.1179 and 1.1150 levels. The trading pattern is framed between 1.1150 to 1.1223. In case, if the price breaks below 1.1150, it will fall up to 1.1120 and 1.1070 levels. We can see panic selling only below 1.1070


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For an intraday view, the prices are closed above the hourly key moving averages. We can see minor ascending triangle height of 37 pips within the hns pattern in the H4 chart. We can observe a hns pattern in the H4 chart. The level of 1.1223 is the left shoulder and 1.1220 is the right shoulder. The trading pattern is framed between 1.1223 and 1.1157 levels. In case the pair breaches the upside resistance at 1.1223, we can see fresh buying on an hourly basis. On the down side, if the pair breaks below 1.1150, we can see a 50-70 immediate fall, but panic will be triggered only below the neck line.


Safe buyers, buy above 1.1225 target 1.1245 and 1.1279.


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Technical analysis of Silver for October 14, 2014


Technical outlook and chart setups:


Silver is trading just below the resistance level ($18.00 levels), around $17.50 for now. Please note that the metal is trading in the sell zone of outer resistance line and still needs to be pushed through $18.40/50 levels to instill further confidence into the bullish setups. It is recommended to remain long for now, risk remains at $16.60. Immediate resistance is seen at $18.00 levels, followed by $18.70/80 and higher up while support is seen at $16.60 respectively. Bulls have managed to break out of immediate line of resistance for now and a further push towards $18.40 remains possible.


Trading recommendations:


Remain long for now, stop at $16.40, target is open.


Good luck!


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Technical analysis of Gold for October 14, 2014


Technical outlook and chart setups:


Gold has pushed through $1,234.00/35.00 levels for now, with $1,240.00 resistance just in sight. Furthermore, the metal has just entered into the buy zone of the sloping down trend line as well. It is expected that Gold could dip into $1,205.00 levels again before rallying further up. Hence recommendations are to book profits from long positions taken earlier, and look to gain buy at lower levels. Immediate support is seen at $1,205.00, followed by $1,183.00 while resistance is at $1,240.00, followed by $1,275.00 and higher up respectively. The fibonacci support at $1,205.00 levels would be of interest to go long again.


Trading recommendations:


Book profits on long positions for now. Look to buy again around $1,205.00 levels.


Good luck!




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Intraday trading recommendations on USD/CHF for October 14, 2014

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In yesterday's session, the US dollar fell against a basket of major currencies. The IMF global growth forecast and concerns about global economic growth raise bets for interest rate hike. In yesterday's session, the pair fell 100 pips and closed at the lowest point of the day. The parallel support at 0.9469 provides enough support not to extend its fall. In yesterday's session the pair closed below 20Dsma, for the first time in two months. During today's Asia's session, the pair took support from 0.9469, but faced strong resistance at 20Dsma. The support turned to resistance, which is a bearish strategy. We recommend fresh selling only below 0.9469 and buying above 0.95. In case the pair falls below 0.9469, it can extend its fall to 60 pips, 0.9404 is the 200Wema. On the bullish front, in case the price sustains above 0.95, it can fly up to 75-90 pips.


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For an intraday view, the prices are closed and trading is below hourly key moving averages. But the parallel support 0.9469 supporting the pair today, as of now. We recommend buying at the current market price 0.9487 sl 0.9469 target 0.9500 and 0.9525 levels. Selling below 0.9469 target 0.9410 and panic below 0.9400 levels.


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Short term trend levels and an intraday recommendation on Gold for October 14, 2014

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The gold is supported by the weak U.S. dollar and technicals added some strength to push $54 from the low's. The base of the triangle saved the metal from another drastic fall. As we recommended in our previous article on October 07, 2014, in case the metal closes below $1,180 on a monthly basis, we can see $1,100 and $1,035 levels. Our recommendations remain the same. This week the metal opened on a strong note, sustaining above the previous week's close. After 39 trading sessions, the metal successfully closed above the 20Dsma levels. Twice the 20Dsma gave enough support to move higher. On the higher side, the metal has strong resistance at $1,242 previous swing low and 38.2 fib level. Above this, $1,254.50 will act as a strong resistance. In case of a daily close above $1,254.50, the short trend can turn to positive. We recommend fresh buying only above $1,242 levels. On the down side, the metal has support at $1,222, $1,217.50 below this $1,200 and $1,180 levels. In case, the metal closes below $1,217 20Dsma, the weekly trend turns to negative.


Support: $1,217, $1,200, $1,180


Resistance: $1,242, $1,254.50, $1,274.50


GOLDH4.png

For an intraday view, the prices are closed and trading above 12ema and 21hrsma. In the H4 chart, the 2hrsma is providing enough support to push prices towards the key resistance levels. Today the metal opened on a bearish note. Hourly traders can start buying only above $1,337.50 target $1,240-$1,241. Safe trades start buying only above $1,242 target $1,250 and $1,254 levels.


Trade:


Buy only above $1,242.


Traders can wait patiently to buy above $1,242, whereas risky trader's can start selling using the sl $1,242.


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Daily analysis of major pairs for October 14, 2014

EUR/USD: The EUR/USD is making commendable bullish attempts after months of weakness. The price is above the support line at 1.2700, now testing the resistance line at 1.2750. Should the price succeed in closing above the resistance line at 1.2750, the next target would be the resistance line at 1.2800. There is already a confirmed bullish bias in the market.


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USD/CHF: As the EUR/USD goes upwards, the USD/CHF goes downwards. Now there is a bearish confirmation pattern in the chart as the price is now below the resistance level at 0.9500, targeting the support level at 0.9450. The bearish bias in the market is getting strong as oscillators saunter into the oversold territories.


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GBP/USD: The Cable is still essentially a bear market – and only a movement above the distribution territory at 1.6150 could render the bearish outlook invalid. While the price can make an attempt to reach that distribution territory, there is a possibility that pullbacks may cause the price to test the accumulation territory at 1.6000.


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USD/JPY: This market has continued its downwards move, and it may reach the demand level at 106.50. It may even breach it to the downside. However, there is a strong possibility of weakness in the yen, which may cause some JPY pairs to go upwards, including the USD/JPY.


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EUR/JPY: After nearly testing the demand zone at 135.50, the bulls have started pushing the price upwards. It is only a movement above the supply zone at 137.00 that can reveal the seriousness of the bulls. The demand zone at 135.50 is thus a barrier to further bearish movement.


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Daily analysis of USDX for October 14, 2014

On the H4 chart, the USDX is finding support at the level of 85.06, a fairly important for the development of the trend in the medium term USDX area, as this instrument could attempt a breakout at the support level to fall to where the 200-day moving average is located. However, remember that the USDX has formed several fractals above the level of 85.50, which hinders the development of a bullish momentum in the USDX.


USDXH4.png

H4 chart's resistance levels: 86.10 – 86.75


H4chart's support levels: 85.06 – 84.52


The USDX is conducting a breakout at the support level of 85.37, the next target on the downside would be the level of 84.81. During the American session yesterday, the USDX showed a strong pullback in the 200 SMA at H1 chart and this could support our bearish outlook, because the MACD indicator is in negative territory.


USDXH1.png

H1 chart's resistance levels: 85.27 – 85.49


H1 chart's support levels: 85.03 – 84.81


Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the USD Index breaks with a bearish candlestick; the support level is at 85.03, take profit is at 84.81, and stop loss is at 85.25.


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Daily analysis of GBP/USD for October 14, 2014

The GBP/USD showed a rebound at the support level of 1.6004, so far, this pair is consolidating above the 1.6051 level, but keep in mind that the bearish trend line is near the 1.6115 level and can act as a strong resistance for GBP/USD on H4 chart. Meanwhile, the GBP/USD is still dominated by the bearish bias, since the 200 SMA remains above the current price of GBP/USD. The MACD indicator is in neutral territory.


1413234837_GBPUSDH4.png


H4chart's resistance levels: 1.6247 – 1.6435


H4 chart's support levels: 1.6051 - 1.6004


On the H1 chart, GBP/USD failed to consolidate below the 1.6075 level and now this pair is conducting a breakout at that level to the resistance level of 1.6117, where the 200-day moving average is located. If this pair does make a breakout at that resistance level, the GBP/USD can revert for several days, taking into account that the MACD indicator is trying to break into positive territory.


GBPUSDH1.png


H1 chart's resistance levels: 1.6075 – 1.6117


H1 chart's support levels: 1.6031 – 1.5980


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 1.6031, take profit is at 1.5980, and stop loss is at 1.6083.


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Intraday technical levels and trading recommendations on GBP/USD for October 13, 2014

1413216176_gbpdailyy.jpg


Note the depicted Shooting Star daily candlestick that occurred previously around 61.8% Fibonacci level.


Such significant bearish pressure offered SELL positions at retesting that took place a few days later.


Note that the bullish rejection was initiated when the market pushed below 1.6100 and 1.6060 on September 9. Another bearish leg was expressed below 1.6060 (The weekly low is located around 1.5950).


On the other hand, the price zone of 1.6100-1.6140 remains a prominent SUPPLY zone to meet the pair. It applied a considerable bearish pressure on the pair on Thursday resulting in formation of an Inverted Hammer daily candlestick.


gbp4hh.jpg


4H chart reveals long period of downside movement roughly maintained within the limits of the depicted channel.


Although the recent bullish leg which extended between 1.6060 (the lower limit of the channel) and price levels around 1.6400 looked strong compared to the recent bearish swings, the bears managed to break below 1.6060 on Friday.


This bearish swing was targeting at 1.5900 (site of prominent monthly bottoms). However, the bears just reached 1.5950 when obvious bullish rejection was expressed to push again towards 1.6150.


For risky traders, a valid SELL entry can be taken around the current prices but with a higher risk. Stop loss can be placed above 1.6240.


According to the price action expressed at retesting of price zone of 1.6100-1.6140, the GBP/USD pair is now targeting at 1.5960 and 1.5860 where prominent bottoms were established.


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

GBP/USD intraday technical levels and trading recommendations for October 13, 2014

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Overview:


On July 15, an extensive bearish impulse was initiated. Since then, the GBP/USD pair has been going down below the depicted downtrend line.


Many bearish impulses were previously initiated around 1.7180 and 1.6630 where the downtrend line came to meet the pair then.


The price level of 1.6140 constituted a weekly support level that paused the bearish movement on September 9 when the bears quickly visited price level of 1.6060.


Retracement towards the price zone of 1.6350-1.6400 took place as expected where a new bearish impulse was applied as anticipated.


Last week, the bulls were pushing towards the downtrend line as well as previous prominent bottom on the weekly chart (price zone of 1.6225-1.6250).


Trading recommendations:


Based on the previous data, SELL positions are preferred as long as the bears keep defending the price zone of 1.6250-1.6320 ( 23.6% Fibonacci level and previous broken bottom ).


A slide below price zone of 1.6045-1.6020 also signals another SELL opportunity with higher risk.


The stop loss should be placed above 1.6260. Price levels of 1.6080 and 1.5890 are initial targets.


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

USD/CAD intraday technical levels and trading recommendations for October 13, 2014

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Overview:


Two months ago, the ongoing bearish swing (initiated in March 2014) was hindered at the price level of 1.0620. This price level corresponded to the lower limit of the channel as well as the backside of a steeper bearish one.


In August, bullish breakout off the movement channel took place. This enabled a bullish Flag pattern to be established. Bullish targets were successfully hit, including price level of 1.1230.


Strong bullish momentum has been expressed for a couple of weeks. Note that breaching the price zone of 1.1230-1.1260 and fixation above it triggers new bullish swing.


On the other hand, a break below 1.1100-1.1070 is more likely to happen. This indicates that the bearish correction will extend further towards 1.0980-1.0950 where a key-support zone is depicted on the chart (the lower limit of the bullish channel and 50% Fibonacci level).


Recommendations:


The price zone of 1.1250-1.1276 corresponded to previous significant tops on the daily chart. Extensive bearish rejection was expressed as anticipated.


Risky traders can take a SELL entry around 1.1200-1.1245. Bearish targets are located at 1.1080 and 1.0990.


Then, the price zone of 1.0980-1.0950 should be watched for another LONG position to make use of the ongoing bullish trend.


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