Technical analysis of USD/JPY for October 16, 2014

USDJPYM30.png


Fundamental overview:


USD/JPY is expected to trade with bearish bias after hitting five-week low 105.19 on Wednesday. It is undermined by the flows to haven JPY and unwinding of JPY-funded carry trades amid increased risk aversion (VIX fear gauge closed up 15.18% at 26.25 Wednesday after hitting near-three-year high of 31.06, S&P 500 closed 0.81% lower at 1,862.494 overnight) and negative dollar sentiment (ICE spot dollar index last 84.92 versus 85.88 early Wednesday) as fears mount that the U.S. may not be immune to economic slowdown elsewhere after larger-than-expected 0.3% on-month drop in U.S. September retail sales (versus forecast -0.1%), much-larger-than-expected fall in Empire State's business conditions index to 6.17 in October from 27.54 in September (versus forecast 20.0), smaller-than-expected 0.2% increase in U.S. August business inventories (versus forecast +0.4%). USD/JPY is also weighed by the Japan exporter sales and lower U.S. Treasury yields (10-year last at 2.129% versus 2.206% late Tuesday, after plunging to 17-month low of 1.865% overnight) as surprise 0.1% on-month drop in U.S. September PPI for first decline in more than a year (versus forecast for 0.1% rise) pushed back expectations that the Federal Reserve might increase interest rates in 2015. But USD/JPY losses are tempered by the demand from Japan importers and ultra-loose Bank of Japan's monetary policy.


Technical comment:
Daily chart is negative-biased as bearish outside-day-range pattern was completed on Wednesday, MACD is bearish, stochastics stays suppressed at oversold zone, 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 105.50. A break of this target will move the pair further downwards to 105.20. The pivot point stands at 106.65. 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 107.05 and the second target at 107.55.


Resistance levels:

107.05

107.55

107.85


Support levels:

105.50

105.20

104.85


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Technical analysis of USD/CHF for October 16, 2014

USDCHFM30.png


Fundamental overview:


USD/CHF is expected to consolidate with bearish bias after hitting three-week low 0.9358 on Wednesday. It is weighed by the negative USD sentiment and franc demand on soft EUR/CHF, GBP/CHF and CAD/CHF crosses. But CHF sentiment is dented by the drop in Switzerland ZEW-Credit Suisse indicator of economic sentiment to minus 30.7 in October--the weakest reading since September 2012--from minus 7.7 in September. USD/CHF losses are also tempered by the dovish Swiss National Bank's monetary policy.


Technical comments:
Daily chart is negative-biased as bearish outside-day-range pattern was completed on Wednesday, MACD and stochastics are bearish, 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 0.9385. A break of this target will move the pair further downwards to 0.9350. The pivot point stands at 0.9500. 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 0.9525 and the second target at 0.9560.


Resistance levels:

0.9525

0.9560

0.96



Support levels:


0.9385

0.9350

0.9315


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Technical analysis of NZD/USD for October 16, 2014

NZDUSDM30.png


Fundamental overview:


NZD/USD is expected to trade in lower range. It is supported by the negative USD sentiment and 1.4% rise in Fonterra's GDT Price Index at latest Global DairyTrade auction and NZD demand on cross trades versus major currencies and NZD-USD interest differential. But NZD/USD gains are tempered by the increased risk aversion.


Technical comment:

Daily chart is positive-biased as bullish outside-day-range pattern was completed on Wednesday, MACD and stochastics are bullish, five-day moving average staged bullish crossover against 15-day MA.


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 0.7840. A break of this target will move the pair further downwards to 0.78. The pivot point stands at 0.7955. 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 0.8 and the second target at 0.8050.


Resistance levels:

0.8000

0.8050

0.8075



Support levels:


0.7840

0.78

0.7760


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Technical analysis of GBP/JPY for October 16, 2014

GBPJPYM30.png


Fundamental overview:


GBP/JPY is expected to trade in lower range. It is underpinned by the diminished expectations of Bank of England's rate increase in early 2015 after lower-than-expected U.K. September CPI, sterling sales on cross trades versus major currencies and increased risk aversion. U.K. labour data released Wednesday were mixed as lower-than-expected U.K. unemployment rate of 6.0% in the three months to August (versus forecast 6.1%) was offset by a fewer-than-expected 18,600 drop in U.K. September jobless claimants (versus forecast of minus 33,000), while average wages rose by just 0.7% on year, less than half the rate of inflation and taking pressure off the BOE to raise interest rates from their current record-low 0.5% level. demand from Japan importers and buoyant EUR/USD. But GBP/JPY gains are tempered by the soft USD/JPY and and Japan exporter sales.


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, although inside-day-range pattern was completed on Wednesday.


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 168.25. A break of this target will move the pair further downwards to 167.35. The pivot point stands at 171.20. 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 172.45 and the second target at 173.35.


Resistance levels:

172.45

173.35

174

Support levels:

168.25

167.35

166.75


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Gold: analysis for October 16, 2014

GOLDH416.png


GOLDDaily16.png


Overview:


Since our last analysis, gold has been trading upwards. The price tested the level of 1,249.46. We can observe rejection from our resistnace level at the price of 1,244.00 (Fibonacci retracement 38.2%). I have placed Fibonacci retracement to find potential support levels and I got Fibonacci retracement 38.2% at the price of 1,224.00. According to the 4H timeframe, we can observe buying climax, which is a sign that buying looks risky. On the mid-term prospective, price was rejected from our major Fibonacci expansion 100% at the price of 1,193.00, which caused price to start bullish phase. Be careful when buying and watch for potential selling opportunities. Any larger supply may confirm futher bearish movement.


Daily pivot Fibonacci points:


Resistance levels:


R1: 1,249.84


R2: 1,256.52


R3: 1,267.33


Support levels


S1: 1,228.22


S2: 1,221.54


S3: 1,210.73


Trading recommendations: Buying still looks risky since gold is near resistance level.


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Elliott wave analysis of EUR/NZD for October 16, 2014

2014-10-16-EURNZD-8H.png


Today's support and resistance levels:


R3: 1.6219


R2: 1.6166


R1: 1.6140


Current spot: 1.6100


S1: 1.6085


S2: 1.6055


S3: 1.6000


Technical summary:


Nothing new here, the range that we have trade within over the last 2 weeks still persists. We are still looking for a break above minor resistance at 1.6187 and more importantly above resistance at 1.6219 to confirm the next rally higher towards 1.6446 and above 1.6836. Short-term support at 1.6055 and 1.6020 is likely to keep protecting the downside for the expected rally.


Trading recommendation:


Our stop at 1.6025 was hit and we are now neutral. We will only buy upon a break above 1.6187.


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Elliott wave analysis of EUR/JPY for October 16 - 2014

2014-10-16-EURJPY-8H.png


Today's support and resistance levels:


R3: 135.75


R2: 135.44


R1: 135.10


Current spot: 134.84


S1: 134.67


S2: 134.49


S1: 134.19


Technical summary:


We have seen the expected break below support at 135.02 to cause an acceleration lower towards the 23.6% corrective target of the rally from 94.10 to 145.69. However, this support is unlikely to be able to protect the downside and we should see a continuation lower to 132.66 and the next real downside target. In the short term, we will be looking for resistance at 135.10, which ideally will protect the upside for the next decline to 133.58 and lower.


Trading recommendation:


We are short in EUR from 135.70 and will move our stop lower to break-even. If you are not short in EUR yet, then sell near 135.10 with the same stop at 135.70.


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Technical analysis of EUR/USD for October 16, 2014

eurusdh1.png

Trading recommandations :



  • According to the previous events, the price of the EUR/USD pair has still been moving between the levels of 1.2750 and 1.2647. The level of 1.2805 is representing the double top, and the weekly support 1 is set at 1.2750. Therefore, sell below the price of 1.2750 or 1.2805 in the long term with the first target at 1.2680. Moreover, if the trend is able to break the first target at 1.2680; then the trend will call for a bearish market and continue towards the next objectives at 1.2647 and 1.2613.


Notes :



  • The double top will set at the level of 1.2805.

  • The major support is going to set at 1.2588.

  • The resistances will be placed at 1.2775 and 1.2805.

  • The level of 1.2728 will confirm the bullish market.

  • The price had hit the weekly pivot point and the resistance 1 this week.

  • We expect a range of 75 pips today and around 310 pips this week.

  • Volatility on October 16, 2014 is 214.61. As a rule, the market is highly volatile if the last day had a huge volatility.


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Daily analysis of Silver for October 16, 2014

SILVER_16-10.png


Overview


Based on the 4H chart above, silver is still stabilizing between the support level of 17.30 and the resistance level of 17.50 after it rebounded from the resistance level yesterday. If silver continues its bearish move and manages to break the support level of 17.30, this would provide a strong indication for the downward move and open the way towards the support level of 17.00. In this case we should wait for the breakout of this level to continue the bearish move. On the other hand, the breakout of this resistance level would denote a bullish strength providing new buy signals from this level till reaching the resistance level of 17.75, then 18.00.


Resistance and support levels: R3 (18.00), R2 (17.75), R1 (17.50), S1 (17.30), S2 (17.00), S3(17.75).




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Technical analysis of EUR/JPY for October 16, 2014

General overview for 16/10/2014 10:30 CET


The corrective cycle in wave b purple has been little longer than previously thought, but there is still one more wave to the downside missing to complete the overall bigger cycle. The current price action is full of fake breakouts but as long as the level of 136.21 is providing the resistance, the bias is bearish and sooner or later one more leg to the downside will be made.


Support/Resistance:


134.62 - WS1


135.08 - Intraday Support


136.21 - Intraday Resistance


136.30 - Weekly Pivot


136.55 - Technical Resistance


136.96 - WR1


136.93 - Technical Resistance


Trading recommendations:


Please refrain from trading until a clear pattern emerges.


eurjpy_h1.jpg


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Gold wave analysis for October 16, 2014

Gold price, despite breaking below the short-term trend line support two days ago, it managed to stage an upward bounce that broke above $1,238 and reached the 50% retracement at $1,250. The entire upward move from the $1,180 lows is very erratic and most probably corrective in nature.


goldh4.jpg

Blue line = support


Red line = resistance


Gold price remains in a wave 4 complex pattern and has reached the 50% retracement. Despite making a dip to $1,220, the precious metal has spiked towards $1,250 and has the potential to move even higher towards the red trend line resistance. Nevertheless the entire upward move still is viewed as corrective to the larger down trend.


gold.jpg

In the 30 minute chart above we observe the short-term price action in Gold. A sideways triangle is being formed and a break above $1,243 could start an upward bounce towards $1,255-65 area equal to the first upward move from $1,220 to $1,249. Breaking below $1,236 will cancel this pattern and this bullish potential. My longer-term view remains bearish as I expect the Gold price to move lower towards $1,050-$1,000 over the coming weeks.


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Technical analysis of USD/CHF for October 16, 2014

USDCHFDaily.png


The pair has been facing strong selling for the last 2 weeks. In yesterday's session, the pair broke below 200WEma and took parallel support at 0.9353, a low made at 0.9361. Currently, the pair is trading above 200Wema. Today the pair opened above the previous close, looking a bit stronger. In yesterday's session the pair broke below the 20Dsma and closed far below that. It represents some noise in the near term. On the up side the pair has resistance at 0.9469 and 0.9505 (20Dsma). On the down side, if the pair falls below 0.9353 it has strong short-term support at 0.9323 50Dsma.


In case, if the pair closes below 0.9323 - the short-term trend turns down- pending


USDCHFH4.png

In the h4 chart, we can clearly see the prices broken from the base triangle, height of 219 pips. Until the prices close above the base of the triangle, on the down side gates open for 0.9250 levels within strong supports at 0.9353 and 0.9323 levels. The prices are closed far below the hourly moving averages. The pair has hourly support at 0.9396 below this free fall up to 0.9361. Strong selling will emerge below 0.9353 and panic, below 0.9323. Until the prices close above 0.9469 on h4 chart, we can't see safe buying. Risky traders can use sl 0.9396 and start buying and selling below 0.9396.


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Trading recommendation on USD/CAD of October 16, 2014

USDCADWeekly.png


The weak US data puts pressure on this pair. In the daily chart, the pair made a minor top at 1.1298 rounded to 1.1300. Currently in Asia's session, the pair is trading below the monthly high at 1.1278 and weekly high at 1.1270. The pair will regain the strength only above 1.1278 levels, 20 pips far from the market price. In case, if this week the pair closes above 1.1278 to 1.1300, the bulls will retain their strength in the new week as well. Today traders eye US unemployment claims and Canada's manufacturing sales. In case, if this week the pair closes above 1.1279, we can see 1.1530 (the 138 fib level) in the next few weeks. For the near-term, we can see 1.1458 in the next few sessions. On the down side, it has support at 1.1150 levels.


USDCADH4.png

For an intraday view, the prices are closed above the hourly key moving averages. The pair has been supported by 21hrsma for 13hrs. The trading pattern is framed between 1.1223 and 1.1275. We recommend selling below 1.1215, for targets at 1.1185 levels. We recommend fresh buying above 1.1276 for targets at 1.1300 and 1.1322.


Trade-


Buying above 1.1276


Selling below 1.1227


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Technical analysis of GBP/CHF for October 14, 2014


Technical outlook and chart setups:


The GBP/CHF extends its drop below 1.5100 levels for now, and just about to break below the line of support as depicted here. A confirm break below the trend line and subsequently 1.4970 levels, would indicate that a top is in place and that rallies could be sold. It is recommended to remain flat for now and wait for a reaction at current levels. Support is seen at 1.4970, followed by 1.4750 and lower while resistance is seen at 1.5450 and 1.5550 respectively. The 1.5400 levels could be resistance for subsequent rallies from here on.


Trading recommendations:


Remain flat for now. Aggressive trade setup could be to initiate long positions for a counter trend rally, stop at 1.4940, target is at 1.5400.


Good luck!


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

Technical analysis of EUR/USD for October 16, 2014

When the European market opens, some economic news will be released such as Italian Trade Balance, Final CPI y/y, Final Core CPI y/y, Trade Balance, Spanish 10-y Bond Auction.The US will release the economic data too such as the Unemployment Claims, Industrial Production m/m, Capacity Utilization Rate, NAHB Housing Market Index, Natural Gas Storage, Crude Oil Inventories, TIC Long-Term Purchases, so amid the reports, EUR/USD will move with low to medium volatility during this day.

TODAY TECHNICAL LEVELS:

Breakout BUY Level: 1.2883.

Strong Resistance:1.2876.

Original Resistance: 1.2863.

Inner Sell Area: 1.2850.

Target Inner Area: 1.2820.

Inner Buy Area: 1.2790.

Original Support: 1.2777.

Strong Support: 1.2764.

Breakout SELL Level: 1.2757.

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 October 16, 2014

In Asia, Japan will not release any economic data, but the US will release some economic data such as Unemployment Claims, Industrial Production m/m, Capacity Utilization Rate, NAHB Housing Market Index, Natural Gas Storage, Crude Oil Inventories, TIC Long-Term Purchases. So there is a big probability the USD/JPY will move with low volatility during the Asian session, but with low to medium volatility during the US session.

TODAY TECHNICAL LEVELS:

Resistance. 3: 106.50.

Resistance. 2: 106.30.

Resistance. 1: 106.09.

Support. 1: 105.83.

Support. 2: 105.62.

Support. 3: 105.41.

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 Gold for October 16, 2014

GOLDDaily.png


The weak US data gave strength to the yellow metal and dragged the US dollar. The metal was well supported by the IMF concerns over the slowing German economy and the cooling of the bets that the Fed can raise interest rates in the near term. The metal came out of the minor range bound, adding longs by sustaining above $1,242. In yesterday's session the metal made a high at $1,249.30, but faced strong resistance at 50Dsma $1,252. As of now, today the metal took support at $1,238 levels. The trading pattern is shifted to $1,238-$1,252 from $1,200-$1,242. In case, if the metal closes above $1,252 on a daily basis, then only it can rally up to $1,264, $1,274,$1,278 and $1,285 levels. The short- and medium-term trend still looks bearish. On the down side, in case if the metal breaks below $1,238, it has support at $1,232 and $1,217 levels. Risky trades can start selling below $1,238 and safe traders, below $1,232.


1413426724_GOLDH4.png

For an intraday view, the prices are trading above 12ema and 35DEMA. In Asia's session the metal managed to trade above $1,242. If the metal sustains above $1,245, it can go to $1,249, $1,254 and $1,257 levels. On the down side, it has support at $1,236, below this, $1,232, $1,228 and $1,221.70 will act as support levels. We can see weakness below $1,236 and selling pressure, below $1,228 levels.


Trade- Fresh buy at $1,245.


Risky traders use sl $1,245 to start selling, cmp $1,243, target: $1,240, $1,238, $1,236.


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Technical analysis of EUR/USD for October 16, 2014

EURUSDDaily.png


The pair gave a strong close 180 pips in yesterday's session. This week, as of now the pair gave 187 pips (open- cmp). The weak US data depressed the dollar and pumped the euro to a 2-week high. The pair has parallel resistance at 1.2901, a September 23 high, above this, 1.2975 (50Dsma) and 1.2995 will act as strong resistance. The pair managed to close above 20Dsma in the daily chart. The pair has support at 1.2715 20Dsma and between 1.2625-1.2606 levels. We can expect panic selling of 100 pips only below 1.2606 towards 1.2500 levels. In case if the pair manages to breach above 1.2901, it can challenge 75 to 95 pips on the upside aiming at 1.2975 and 1.2995 levels.


Support: 1.2790, 1.2715, 1.2625-1.2606.


Resistance: 1.2901, 1.2975, 1.2995.


EURUSDH4.png

For an intraday view, the pair opened on a bearish note higher at 1.2837. In yesterday's session the pair closed at 1.2838, but today the pair opened below the previous close. It represents some weakness in the day trading perspective. We recommend buying only above 1.2838 with targets at 1.2864 and 1.29. We can expect a strong rise only above 1.2901. On the downside, the pair has support at 1.2757, below this, 1.2735 12ema levels. In case if the pair breaks below 1.2695, we can see some selling pressure added to this pair, which adds pressure to fall to 1.2625 levels. In the h4 chart, we can see the bullish flag, height of the pole is 291 pips.


Trade- Buying above 1.2838, strong up move above 1.2901


Selling below 1.2690, panic below 1.2625


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Daily analysis of USDX for October 16, 2014

On the daily chart, we can see that the USDX fell steeply below the resistance level of 85.18, that means the next target will be at the 84.29 support level, because this instrument is currently showing much weakness. And in the medium term, the USDX has enough space on the bearish road to fall to the level of 84.29. The light indicator MACD is moving into negative territory.


USDXH4.png

Dailychart's resistance levels: 85.18 – 86.20


Dailychart's support levels: 84.29 – 83.74


During yesterday's session, the USDX fell below the 200 SMA on the H1 chart, because the USDX found strong resistance at 85.95. However, the USDX could begin to form a lower low pattern at current levels, and even, this instrument could make a breakout at the level of resistance at the 85.03 level to rise to the level of 85.23 in the short term.


1413408547_USDXH1.png

H1 chart's resistance levels: 85.03 – 85.27


H1 chart's support levels: 84.81 – 84.60


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 84.81, take profit is at 84.60, and stop loss is at 85.03.


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Daily analysis of GBP/USD for October 16, 2014

The GBP/USD is trying to make a breakout on the resistance level of 1.6004 because this pair found strong support near the 1.5850 level on the H4 chart. But the 1.6051 level zone is very strong and the GBP/USD could make a pullback at this level, so it is advisable to be aware of position closings when this pair touches that level. The MACD indicator is moving into positive territory.


1413408472_GBPUSDH4.png


H4chart's resistance levels: 1.6004 – 1.6051


H4chart's support levels: 1.5951 - 1.5865


On the H1 chart, GBP/USD is consolidating above the 1.5980 level, but this pair is likely to find strong resistance at the level of 1.6031 because this pair is approaching the 200 SMA But a pullback at current levels, could lead the GBP/USD to fall back to the support level of 1.5925.


1413408479_GBPUSDH1.png


H1 chart's resistance levels: 1.5980 – 1.6031


H1 chart's support levels: 1.5925 – 1.5871


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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Technical analysis of USD/JPY for October 15, 2014

USDJPYM30.png


Fundamental overview:


USD/JPY is expected to consolidate in higher range after hitting one-month low 106.17 today. It is undermined by the lower U.S. Treasury yields (10-year at 2.197% versus 2.305% late Friday) as investors pushed back expectations of the first Federal Reserve's rate increase in 2015 after Fed officials signaled a cautious approach to raising interest rates amid deteriorating global growth outlook, weak oil prices (tumbled 4.55% to settle at $81.84/bbl overnight for biggest one-day decline since November 2012) after the International Energy Agency slashed its oil demand growth forecast for this year by more than a fifth to just 700,000 barrels a day, its weakest in five years. USD/JPY is also weighed by the Japan exporter sales and drop in U.S. NFIB Index of Small-Business Optimism to 95.3 in September from 96.1 in August. But USD/JPY downside is limited by the demand from Japan importers and ultra-loose Bank of Japan's monetary policy; broadly stronger USD undertone (ICE spot dollar index last 85.88 versus 85.22 early Tuesday) on relatively better U.S. economic performance versus that of other major economies.


Technical comment:
Daily chart is mixed as MACD is bearish, five-day moving average is below 15-day MA and is declining but stochastics is turning bullish at oversold zone.


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 105.70. A break of this target will move the pair further downwards to 105.20. The pivot point stands at 107. 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 107.55 and the second target at 107.85.


Resistance levels:

107.55

107.85

108.25


Support levels:

105.70

105.20

104.85


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

Technical analysis of USD/CHF for October 15, 2014

USDCHFM30.png


Fundamental overview:


USD/CHF is expected to trade in lower range. It is supported by the broadly stronger USD undertone and lower-than-expected Switzerland September import price index of -1.4% on-year (versus forecast -1.2%); dovish Swiss National Bank's monetary policy. It is also supported by the lower U.S. Treasury yields (10-year at 2.197% versus 2.305% late Friday) as investors pushed back expectations of the first Federal Reserve's rate increase in 2015 after Fed officials signaled a cautious approach to raising interest rates amid deteriorating global growth outlook But USD/CHF gains are tempered by the franc demand on soft EUR/CHF, GBP/CHF and CAD/CHF crosses.


Technical comments:
Daily chart mixed as MACD and stochastics are in bearish mode, but bullish-piercing candlestick pattern was completed on Tuesday.


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 0.9385. A break of this target will move the pair further downwards to 0.9350. The pivot point stands at 0.9525. 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 0.9560 and the second target at 0.9600.


Resistance levels:

0.9560

0.96

0.9635



Support levels:


0.9385

0.9350

0.9315


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

Technical analysis of GBP/JPY for October 15, 2014

GBPJPYM30.png


Fundamental overview:


GBP/JPY is expected to consolidate with bearish bias. It is undermined by the soft GBP/USD; and Japan exporter sales. But GBP/JPY losses are tempered by the demand from Japan's importers. GBP sentiment is hurt by lower-than-expected U.K. September CPI (came in at five-year low of +1.2% on-year versus forecast +1.4%) which prompted investors to push back expectations of Bank of England's rate increase in 2015.


Technical comment:
Daily chart is negative-biased as bearish outside-day-range pattern was completed on Tuesday, 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 168.25. A break of this target will move the pair further downwards to 167.35. The pivot point stands at 171.20. 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 172.45 and the second target at 173.35.


Resistance levels:

172.45

173.35

174

Support levels:

168.25

167.35

166.75


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