Technical analysis of USD/JPY for October 23, 20143

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Fundamental overview:


USD/JPY is expected to consolidate with a bullish bias. USD/JPY is underpinned by the positive USD sentiment (ICE spot dollar index last 85.75 versus 85.39 early Wednesday) as U.S. Treasury yields inched higher (10-year at 2.219% versus 2.208% late Tuesday) after U.S. September CPI rose 0.1% in line with expectations, calming fears about the spread of deflation. USD/JPY is also supported by the demand from Japan importers, ultra-loose Bank of Japan's monetary policy and wider-than-expected Japan September trade deficit. But USD/JPY gains are tempered by Japan's export sales and selling of yen crosses amid increased risk aversion (VIX fear gauge rose 11.13% to 17.87, S&P 500 closed 0.73% lower at 1,927.11 overnight) amid reports of shootings in Canada's parliament building.


Technical comment:
Daily chart is mixed as MACD is bearish but stochastics is rising from 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 108.30 and the second target at 108.75. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 107.10. A break of this target would push the pair further downwards and one may expect the second target at 106.75. The pivot point is at 107.50.


Resistance levels:

108.30

108.75

109


Support levels:

107.10

106.75

106.35


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Technical analysis of USD/CHF for October 23, 20142

USDCHFM30.png


Fundamental overview:


USD/CHF is expected to trade in a higher range. It is supported by the positive USD sentiment (ICE spot dollar index last 85.75 versus 85.39 early Wednesday) as U.S. Treasury yields inched higher (10-year at 2.219% versus 2.208% late Tuesday) after U.S. September CPI rose 0.1% in line with expectations, calming fears about the spread of deflation, dovish Swiss National Bank's monetary policy and franc sales on soft CHF/JPY cross and contagion from weak EUR on CHF.


Technical comments:
Daily chart is mixed as MACD is bearish, but stochastics is rising from 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 0.9560 and the second target at 0.9590. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.9465. A break of this target would push the pair further downwards and one may expect the second target at 0.9435. The pivot point is at 0.9510.


Resistance levels:

0.9560

0.9590

0.9625



Support levels:


0.9465

0.9435

0.9390


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Technical analysis of NZD/USD for October 23, 2014

NZDUSDM30.png


Fundamental overview:


NZD/USD is expected to trade in a lower range. It is undermined by the lower-than-expected New Zealand 3Q CPI of +0.3% on-quarter (versus forecast +0.5%), the positive USD sentiment (ICE spot dollar index last 85.75 versus 85.39 early Wednesday) as U.S. Treasury yields inched higher (10-year at 2.219% versus 2.208% late Tuesday) after U.S. September CPI rose 0.1% in line with expectations, calming fears about the spread of deflation, Kiwi sales on buoyant AUD/NZD cross and Kiwi sales on soft NZD/JPY cross amid increased investor risk aversion. But NZD/USD losses are tempered by the NZD-USD interest differential.


Technical comment:

Daily chart is mixed as MACD is bullish, but stochastics is turned bearish at overbought 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 0.7805. A break of this target will move the pair further downwards to 0.7775. The pivot point stands at 0.7885. 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 0.7915 and the second target at 0.7955.


Resistance levels:

0.7915

0.7955

0.7985



Support levels:


0.7805

0.7775

0.7735


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Technical analysis of GBP/JPY for October 23, 2014

GBPJPYM30.png


Fundamental overview:


GBP/JPY is expected to trade in a higher range. It is undermined by the bullish GBP sentiment and by sterling demand on soft EUR/GBP cross. GBP/JPY gains are tempered by the dovish October Bank of England MPC meeting minutes showing the committee split 7-2 in favor of keeping rates on hold, with the majority far from convinced for an early rate increase.


Technical comment:
Daily chart is negative-biased as MACD is bearish, stochastics is reverting to bearish mode ,five and 15-day moving averages declining.


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 174 and the second target at 174.95. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 171. A break of this target would push the pair further downwards and one may expect the second target at 170.20. The pivot point is at 172.05.


Resistance levels:

174

174.95

175.65

Support levels:

171

170.20

169.75


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EUR/NZD analysis for October 23, 2014

EURNZDDaily23.png


EURNZDH423.png


Overview:


In our last analysis, EUR/NZD has been trading upwards. The price tested the level of 1.6140 in an ultra high volume (buying climax). Price rejection from the level of 1.5910 (swing high like support), which pushed the price to start upward movement. I have placed Fibonacci retracement to find potential resistance level and I got Fibonacci retracement 38.2% at the price of 1.6110 and Fibonacci retracement 61.8% at the price of 1.6235. According to the 4H time frame, we can observe demand in an ultra high volume. Be careful when buying EUR/NZD since the price is near the resistance level and we got buying climax on the market. Anyway, of the price breaks the level of 1.6110 in a high volume, we may see testing the level of 1.6235.


Daily Fibonacci pivot levels:


Resistance levels:


R1: 1.5977


R2: 1.5997


R3: 1.6029


Support levels:


S1: 1.5914


S2: 1.5894


S3: 1.5863


Trading recommendations: Be careful when buying the EUR/NZD pair since our resistance level is on the test and we got buying climax on the market.


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Gold : analysis for October 23, 2014

GOLDDaily23.png


GOLDH423.png


Overview:


Since our last analysis, gold has been trading sideways downwards. As we expected, the price tested the level of 1,231.96. Our submajor Fibonacci retracement 38.2% at the price of 1,245.00 took place successfully, which caused the price to go downwards. According to the daily time frame, we can observe weak demand and weak price action. Gold is now in a bearish corrective phase so I have placed Fibonacci retracement to find potential support levels and I got Fibonacci retracement 38.2% at the price of 1,227.00 and Fibonacci retracement 61.8% at the price of 1,210.00.


Daily pivot Fibonacci points:


Resistance levels:


R1: 1,249.10


R2: 1,251.34


R3: 1,254.97


Support levels


S1: 1,241.84


S2: 1,239.60


S3: 1,235.97


Trading recommendations: Watch for potential intraday selling opportunities


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Technical analysis of EUR/JPY for October 23, 2014

General overview for 23/10/2014 12:00 CET


The complex corrective structure in wave -ii- blue looks to be completed and impulsive bullish breakout above the descending golden channel is the first confirmation that higher prices should be seen soon. The first target is at the level of 137.00 but even higher extension above this level is expected, up to the level of 137.93. On the other hand, any failure here on this key level would possibly lead to the test of the golden channel lower trend line before any impulsive wave progression will continue.


Support/Resistance:


137.86 - WR1


137.77 - 137.94 - Supply Zone


136.99 - Intraday Resistance


136.25 - Intraday Resistance|Key Level|


135.99 - Weekly Pivot


135.50 - Intraday Support


135.27 - WS1


134.11 - Swing Low


Trading recommendations:


Buying the dips advised yesterday was very profitable and now partial profit taking might take place at the current price levels. Swing traders should put SL below the level of 135.27 and wait for further impulsive wave progression to the upside.


eurjpy_h1.jpgThe material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of AUD/USD for October 23, 2014

1414058432_audusdh4.png

Overview :



  • The price of AUD/USD pair has still been trapped between 0.8727 and 0.8929. Therefore, the first step is to wait for a period of tight sideways market before breakouts. Then, probably, the market is going to start showing bullish signs. In other words, it will be a good sign to buy above 0.8700 - 0.8727 with the first target at 0.8845 and the price will climb towards 0.8932 in order to test the first resistance. Also, it should be noted that the level coincides with the ratio of 32.8% Fibonacci retracement levels. However, if the pair fails to break 0.8932, the market will indicate a bearish opportunity below 0.8932. Then the level will really act as strong resistance, it wil be a good sign to sell below 0.8932 with the first target at 0.8878 and it will call for a downtrend in order to continue bearish movement towards 0.8813.


Intraday technical levels :



  • Projected high: 0.9024

  • Breakout (buy stop): 0.8945

  • Strong resistance (sell limit): 0.8929

  • Current pivot: 0.8790

  • Strong support (buy limit): 0.8727

  • Breakout (sell stop): 0.8692

  • Projected low: 0.8641


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Technical analysis of USD/CAD for October 23, 2014

1414057561_usdcadh1.png

Trading recommendations :



  • According to the previous events, the USD/CAD pair is still moving between the levels of 1.1205 and 1.1270. The resistance will set at the level of 1.1270 which sets around the ratio of 61.8% of Fibonacci retracement levels in H1 chart. So, the key level is placed at 1.1270. As we know, history will probably repeat itself at this level again. Therefore, sell below 1.1270 with the first target at 1.1240, then it will go towards 1.1200 in order to test this strong support. If the trend does not fail to close above the support at 1.1200; then the trend will continue downward towards the new bottom at the point of 1.1165. Please check out the market volatility before investing, because the sight price may have already been reached and scenarios might have become invalidated.


Notes :



  • Supports are placed at the levels of 1.1200 and 1.1165.

  • Breakout level (resistance) sets at the level of 1.1270.

  • In the short term, we expect a bearish market and a range of 65 pips today.


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Elliott wave analysis of EUR/NZD for October 23 - 2014

2014-10-23-EURNZD-8H.png


Today's support and resistance levels:


R3: 1.6243


R2: 1.6168


R1: 161.39


Current spot: 1.6108


S1: 1.6080


S2: 1.6057


S3: 1.6045


Technical summary:


The rally from 1.5903 does look impulsive and indicates that the series of waves 1/2's is the correct scenario. That said, we still need a break above resistance at 1.6243 to confirm this scenario, but in the short term we will be looking for a rally to 1.6168 followed by a correction to the 1.6045 - 1.6057 area before next impulsive rally higher than above 1.6243 that confirms a rally higher to 1.6446 on the way towards 1.6800.


Trading recommendation:


We are long in EUR from 1.6085 and will move our stop to break-even and take profit at 1.6160. If our take profit is hit a new EUR-buy order will be placed at 1.6065 with a stop at 1.5900.


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Elliott wave analysis of EUR/JPY for October 23 - 2014

2014-10-23-EURJPY-8H1.png


Today's support and resistance levels:


R3: 137.27


R2: 137.00


R1: 136.78


Current spot: 136.15


S1: 136.00


S2: 135.76


S3: 135.44


Technical summary:


We are currently looking for signs to confirm whether wave B has ended early at 136.71 that a break below 135.63 and more importantly a break below 135.20 will confirm. However, if resistance at 137.00 is broken, then the B-wave is still unfolding for the final rally higher to 137.76 before wave C lower will be ready to take over for a decline to 130.59.


Trading recommendation:


We are short in EUR from 135.76 and will place our stop at 137.10. If you are not short in EUR yet, then sell after a break below 135.63 with the same stop.


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Technical analysis of Silver for October 23, 2014


Technical outlook and chart setups:


Silver re-tests support around $17.00/10 levels as expected. The metal is forming base around the same level before resuming rally towards $18.00/50 levels as depicted here. Resistance is seen at $17.80 (interim), followed by $18.00, $18.80 and higher up, while support is seen at $17.00, followed by $16.60/70 respectively. The outer resistance line is now passing around $18.00 levels and a push through that could trigger further bullish momentum. It is recommended to remain long, with risk around $16.60/70 levels. Only a break below $16.70 should be a worry for bulls for now.


Trading recommendations:


Remain long, set stop at $16.40, target is open.


Good luck!


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Technical analysis on USD/JPY for October 23, 2014

The pair made a near-term minor top at 172.90 levels, started moving lower. In yesterday's session the pair fell below the 200Dsma, but at the end of the day well managed to close above that. Today, the pair held the same support, moving inch higher. In the h4 chart we can see a large distribution pattern at 173.00 levels. Until the pair closes above 173.00 bears will try to take the pair towards 170.00 and 169.00 again. On a weekly basis, the 50Wsma has been providing enough support not to extend its fall. In case, if the pair closes below 171.08, we can expect a steep fall towards 160.00 levels. This week, as of now the pair made a double top at 173.03 levels. The trading pattern is framed between 173.03-171.08. Sell on every rise, until the pair closes above 173.03 on a weekly basis. We can expect a oneside direction either up or down in the next week or the week after next.


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Intraday trading recommendations on USDX for October 23, 2014

The U.S. CPI jumped by 0.1% in September. In the month of August it was down 0.2%. The U.S. dollar again got demand. Yesterday's session it closed above a 5-day high. The index closed above the 2-week descending trend line. The index has resistance at 85.88, the 61.8 fib level, above this, 86.01 is the major resistance level. We can see strong momentum only above 86.01 towards 86.11 and 86.27 immediately. On the down side, the index has support at 85.75, below this 85.50, 85.30 and 85.23 is the major support levels. For positional buyers, use every dip to buy. For an intraday view, fresh buying above 85.90 will mint the money and strong buy will emerge above 86.02. Until the prices close above 84.74 we can expect 87.75 on the upside.


Fresh buy above 85.88


Strong momentum above 86.02


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Technical analysis of Gold for October 23, 2014


Technical outlook and chart setups:


Gold has hit the fibonacci 0.382 ($1,255.00) resistance level of the fall from $1,345.00 to $1,283.00 levels, as seen here. It remains quite possible that the metal retraces from here towards $1,210 levels before extending its rally towards $1,270.00/80.00 levels or more. Resistance is seen at $1,255.00 (interim), followed by $1,275.00, $1,295.00 and higher respectively, while support is seen at $1,210.00, followed by $1,183.00 and lower respectively. An aggressive trade strategy could be to remain short for now, risk remains above $1,255.00; while a conservative approach could be to wait for a dip into $1,210.00 levels before getting long. Please note that if bulls manage to get past $1,255.00 levels now, the rally could further extend into the $1,280.00's.


Trading recommendations:


Remain short, stop at $1,259.50, target is $1,210.00 OR Remain flat and wait to go long at $1,210.00.


Good luck!


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

Review on USD/CHF for October 23, 2014

Stronger US data pushed the greenback against the Swiss Franck to a 5-day high and closed at the highest level Tuesday. The pair well managed to close above 20Dsma. In the daily chart the pair breached and closed above the symmetric triangle and is still trading above that. On the higher side, the pair has resistance at 0.9562 levels. As we told in yesterday's article in case the pair manages to close above 20Dsma, we can see strong momentum towards 0.9562 levels, now we just 15 pips away from that. In yesterday's session the 200WEma gave a good amount of support. The trading pattern is framed between 0.9562-0.9398 levels. In case, if the pair closes below 0.9398, we can see a sharp correction towards 0.9353 and 0.9301 levels. In case, if the pair breaches above 0.9562, it can extend its move up to 0.9593, 0.9601 and 0.9625 levels.


Support: 0.9398, 0.9353, 0.9301


Resistance: 0.9562, 0.9625, 0.9688


USDCHFH4.png

For an hourly view, the prices have been trading below the 12ema and 34hrsma levels. On the down side, it has support at 0.9500, 0.9475 and 0.9457 35DEMA. We recommend selling only below 0.9440 levels and panic, below 0.9398. The pair can challenge 0.9593 and 0.9625 if it breaches 0.9562 levels. Traders can book profit at 0.9560, buying is recommended at 0.9505 the same as yesterday or risky traders can use trailing sl waiting for 0.9600 and 0.9625 levels.


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Technical analysis on Gold for October 23, 2014

GOLDH4.png


The yellow metal fell back from 6-week highs, and closed below the 50Dsma. In yesterday's session, the metal lost its shine due to the US strong inflation data. The metal fell below the 2-week ascending trend line and closed below that. In the daily chart, we can observe broadening top at $1,249.50 levels. The metal has support at $1,238.90 and $1,237.40. Today the metal opened on a minor bullish note, opened lower at $1,240.90 levels. On the higher side, it has resistance at $1,245 50Dsma and $1,249.50 levels. The Stochastics in the daily chart is indicating a sell signal. In the h4 chart, we can observe higher lows and higher highs. The metal surrenders to bears completely below $1,231.40, the latest higher low. For an hourly view, the initial resistance level is at $1,242.50 34hrsma, above this, $1,246.00 level and $1,249.50. We can expect strong rising only above $1,250 levels. On the other side, $1,239.50 is acting as support level, below this, $1,237-$1,236 is the last hope for bulls. We recommend selling below $1,236, with target at $1,231.50 and panic below $1,231.00 levels.


Trade-


Safe buying above $1,250.00


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Technical analysis of EUR/JPY for October 23, 2014


Technical outlook and chart setups:


The EUR/JPY pair might have completed its ongoing correction at 135.40 levels yesterday and looking now to extend rally through 138.00 and 138.75 levels respectively. Resistance is seen at 138.00, followed by 139.10/20 and higher while support is seen at 135.20 (fibonacci), followed by 134.10/20 and lower respectively. Also note that after having broken past the line of resistance earlier, the pair is testing its back side. which is support now. A reversal here looks imminent with support strong at 135.10/20 level. Recommendations are to remain long from yesterday, risk below 134.50. Bulls are expected to remain in control for a while.


Trading recommendations:


Remain long, also look to add at 135.10/20, set stop below 134.50, target is 138.70.


Good luck!


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

Technical analysis of GBP/CHF for October 23, 2014


Technical outlook and chart setups:


The GBP/CHF has managed to hit 1.5320/30 levels as expected and discussed yesterday. Please note that it is also the fibonacci 0.618 resistance of the decline from 1.5550 and 1.4975 earlier. It is recommended to initiate short positions now, risk remains above 1.5450 at least. Resistance is seen at 1.5450, followed by 1.5550 while support is seen at 1.5200, followed by 1.5100, 1.4975 and lower respectively. It looks like bears could resume the down move from current levels and eventually extend it towards 1.4975 and lower. The pair might have formed a meaningful top at 1.5550 levels and could remain lower for a while.


Trading recommendations:


Remain short from current levels, stop above 1.5450, target is open.


Good luck!




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

Technical analysis of EUR/USD for October 23, 2014

When the European market opens, some economic news will be released such as French Flash Manufacturing PMI, French Flash Services PMI, Spanish Unemployment Rate, German Flash Manufacturing PMI, German Flash Services PMI, Flash Manufacturing PMI, Flash Services PMI, EU Economic Summit. The US will release the economic data too such as the Unemployment Claims, HPI m/m, Flash Manufacturing PMI, Consumer Confidence, CB Leading Index m/m, Natural Gas Storage, so amid the reports, EUR/USD will move with low to medium volatility during this day.

TODAY TECHNICAL LEVELS:

Breakout BUY Level: 1.2703.

Strong Resistance:1.2695.

Original Resistance: 1.2663.

Inner Sell Area: 1.2671.

Target Inner Area: 1.2641.

Inner Buy Area: 1.2611.

Original Support: 1.2599.

Strong Support: 1.2587.

Breakout SELL Level: 1.2579.

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 23, 2014

In Asia, Japan will release the Flash Manufacturing PMI and the US will release some economic data such as Unemployment Claims, HPI m/m, Flash Manufacturing PMI, Consumer Confidence, CB Leading Index m/m, Natural Gas Storage. 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: 107.73.

Resistance. 2: 107.52.

Resistance. 1: 107.31.

Support. 1: 107.74.

Support. 2: 106.83.

Support. 3: 106.62.

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


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

Daily analysis of GBP/USD for October 23, 2014

The GBP/USD is trying to form a bearish pattern below the resistance level of 1.6051, because this pair has made a pullback near the 200 SMA it is likely that in the next few hours the GBP/USD will fall to the level of 1.6004, where this pair has to perform a breakout of the support level of 1.6004 to fall to the level of 1.5951. However, the GBP/USD could find strong support at current levels. The MACD indicator is entering negative territory.


GBPUSDDaily.png


Daily chart's resistance levels: 1.6146 / 1.6235


Dailychart's support levels: 1.6046 / 1.5883


On the H1 chart, we can clearly see that this pair is trying to form a lower low pattern pro below the 200-day moving average, so the GBP/USD could make a breakout at the support level of 1.6031. If successful, it is expected to fall to the 1.5980 level in the short term. The GBP/USD remains below the resistance level of 1.6075.


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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Technical analysis of USD/JPY for October 22, 2014

USDJPYM30.png


Fundamental overview:


USD/JPY is expected to trade in a higher range. It is underpinned by the reduced safe-haven appeal of the yen as the global risk sentiment improves (VIX fear gauge eased 13.41% to 16.08, S&P 500 closed up 1.96% at 1,941.28 Tuesday) on reports that the European Central Bank is considering fresh ways to stimulate the economy, while stronger-than-expected China 3Q GDP growth of 7.3% (versus forecast +7.2%) allayed fears that the world's second-largest economy would post a sharp slowdown. USD/JPY is also supported by the improved USD sentiment (ICE spot dollar index last 85.38 versus 85.01 early Tuesday) after higher U.S. Treasury yields (10-year at 2.227% versus 2.183% late Monday) and bigger-than-expected 2.4% increase in U.S. September existing home sales (versus forecast +1.0%) and demand from Japan's importers and ultraloose Bank of Japan's monetary policy. But USD/JPY gains are tempered by Japan's export sales.


Technical comment:
Daily chart is mixed as MACD is bearish but stochastics is rising from 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 107.55 and the second target at 108.15. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 106.05. A break of this target would push the pair further downwards and one may expect the second target at 105.70. The pivot point is at 106.55.


Resistance levels:

107.55

107.85

108.15


Support levels:

106.05

105.70

105.50


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

Technical analysis of USD/CHF for October 22, 20142

USDCHFM30.png


Fundamental overview:


USD/CHF is expected to trade in a higher range. It is supported by the positive USD sentiment (ICE spot dollar index last 85.38 versus 85.01 early Tuesday) after higher U.S. Treasury yields (10-year at 2.227% versus 2.183% late Monday), bigger-than-expected 2.4% increase in U.S. September existing home sales (versus forecast +1.0%), dovish Swiss National Bank's monetary policy, and contagion from weak EUR on CHF.


Technical comments:
Daily chart is mixed as MACD is bearish, but stochastics is bullish near 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 0.9560 and the second target at 0.9590. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.9435. A break of this target would push the pair further downwards and one may expect the second target at 0.9390. The pivot point is at 0.9465.


Resistance levels:

0.9560

0.9590

0.9625



Support levels:


0.9435

0.9390

0.9360


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

Technical analysis of NZD/USD for October 22, 2014

NZDUSDM30.png


Fundamental overview:


NZD/USD is expected to trade in a lower range. It is undermined by the positive USD sentiment (ICE spot dollar index last 85.38 versus 85.01 early Tuesday) after higher U.S. Treasury yields (10-year at 2.227% versus 2.183% late Monday) and bigger-than-expected 2.4% increase in U.S. September existing home sales (versus forecast +1.0%). But NZD/USD losses are tempered by the Kiwi demand on buoyant NZD/JPY cross amid positive risk sentiment and NZD-USD interest differential.


Technical comment:

Daily chart is still positive-biased as MACD is bullish, stochastics stay elevated at the overbought zone, five-day moving average is above 15-day MA and is advancing.


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 0.7910. A break of this target will move the pair further downwards to 0.7880. The pivot point stands at 0.7985. 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 0.8015 and the second target at 0.8050.


Resistance levels:

0.8015

0.8050

0.8075



Support levels:


0.7910

0.7880

0.7840


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