Intraday technical levels and trading recommendations on GBP/USD for October 28, 2014

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A Shooting Star daily candlestick occurred previously around 61.8% - 50% Fibonacci levels. A valid SELL position was suggested then and it got triggered few days later. The market successfully pushed below 1.6100 shortly after.


Bullish rejection was once expressed when the market pushed below 1.6100 and 1.6060 on September 9. However, another bearish leg was expressed below 1.6060 during the current month.


On the other hand, the price zone of 1.6100-1.6140 constituted a prominent SUPPLY zone where considerable bearish pressure was applied on the pair.


On Wednesday, bullish recovery was expressed off 1.5880. Bullish engulfing daily candlestick is depicted on the chart. Bullish targets were located around the price zone of 1.6130-1.6180 ( already reached ).


Bullish breakout off the depicted bearish channel is apparent on the daily chart. A bullish corrective move towards 1.6300 may occur as long as bulls keep moving above the upper limit of the channel.


Breakout above price level of 1.6140 ( being tested today ) is essential to confirm this suggested position. Otherwise, the pair remains under bearish pressure to revisit 1.5880 at least.


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


This week, bulls managed to push beyond the upper limit of the channel as well as previous broken bottom (probably now acting as resistance).


The GBP/USD pair remains trapped between the backside of the channel (1.6020) and price level of 1.6140.


Breakout in either direction is necessary to take a position in the same direction of breakout ( bullish breakout is more anticipated ).


A BUY entry was suggested around 1.6010-1.6020. It's running in profits now. Stop Loss should be located at 1.5980.


A higher risk entry is suggested after fixation above 1.6140-1.6180 takes place. Bulls have been trying to do so for the past couple of days without success yet.


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Technical analysis of USD/JPY for October 28, 2014

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Fundamental overview:


USD/JPY is expected to consolidate in a higher range. USD/JPY is undermined by the weaker dollar sentiment (ICE spot dollar index last 85.57 versus 85.69 early Monday) on smaller-than-expected +0.3% on-month increase in U.S. September pending home sales index (versus forecast +1.0%). USD/JPY is also weighed by the lower U.S. Treasury yields (10-year at 2.258% versus% 2.273% late Friday), Japan's export sales, unwinding JPY-funded carry trades amid diminished investor risk appetite as U.S. stocks closed mixed overnight (S&P 500 fell 0.15%, DJIA gained 0.07%) as a disappointing business confidence report from Germany raised concerns over the growth outlook in the eurozone, while caution prevailed ahead of Wednesday's policy announcement from the Federal Reserve. But USD/JPY losses are tempered by the demand from Japan's importers and ultra-loose Bank of Japan monetary policy.


Technical comment:
Daily chart is mixed as stochastics is bullish, five-day moving average is above 15-day MA and advancing but MACD is still in a bearish mode.


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 108.35 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 107.35. A break of this target would push the pair further downwards and one may expect the second target at 107.05. The pivot point is at 107.55.


Resistance levels:

108.35

108.75

109


Support levels:

107.35

107.05

106.75


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EUR/NZD analysis for October 28, 2014

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Overview:


In our last analysis, EUR/NZD has been trading downwards. The price tested the level of 1.6023 in a high volume. Our Fibonacci expansion 100% at the price of 1.6050 held successfully, so be careful when selling EUR/NZD at this stage. According to the 4H time frame, we can observe good rejection from our support, which is a sign that selling looks risky. We also got Fibonacci retracement 61.8% at the price of 1,6015 (almost got tested). Be careful when selling EUR/NZD since we may see further upward movement. Watch for potential buying opportunities after retracement.


Daily Fibonacci pivot levels:


Resistance levels:


R1: 1.6140


R2: 1.6158


R3: 1.6189


Support levels:


S1: 1.6079


S2: 1.6061


S3: 1.6031


Trading recommendations: Be careful when selling the EUR/NZD pair since our Fibonacci retracement 38.2% is on the test


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Technical analysis of USD/CHF for October 28, 20142

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Fundamental overview:


USD/CHF is expected to trade with risks skewed lower. It is undermined by the weaker dollar sentiment (ICE spot dollar index last 85.57 versus 85.69 early Monday) on smaller-than-expected +0.3% on-month increase in U.S. September pending home sales index (versus forecast +1.0%). But USD/CHF losses are tempered by the dovish Swiss National Bank's monetary policy.


Technical comments:

Daily chart is mixed as MACD is bearish, but stochastics is in a bullish mode.


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 0.9500.


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 28, 2014

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Fundamental overview:


NZD/USD is expected to trade in a higher range. It is supported by the weaker dollar sentiment (ICE spot dollar index last 85.57 versus 85.69 early Monday) on smaller-than-expected +0.3% on-month increase in U.S. September pending home sales index (versus forecast +1.0%), Kiwi demand on soft AUD/NZD cross and NZD-USD interest differential. But NZD/USD gains are tempered by the waning investor risk appetite.


Technical comment:

Daily chart is mixed as MACD is bullish but stochastics is in a bearish mode, five-day moving average is below 15-day MA and is 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 0.7955 and the second target at 0.7990. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 10.7840. A break of this target would push the pair further downwards and one may expect the second target at 0.7805 The pivot point is at 0.7880.


Resistance levels:

0.7955

0.7990

0.8035



Support levels:


0.7840

0.7805

0.7775


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Gold : analysis for October 28, 2014

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Overview:


Since our last analysis, gold has been trading upwards. As we expected, the price tested the level of 1,235.40 in a volume above average. Since our submajor Fibonacci retracement 38.2% at the price of 1,227.00 held successful, that action led the price to start upward movement. According to the daily time frame, we can observe supply in a volume below average. I have placed Fibonacci retracement to find resistance levels and I got Fibonacci retracement 38.2% at the price of 1,234.85 (currently on the test) and Fibonacci retracement 61.8% at the price of 1,242.00. If the price breaks the level of 1,234.00 in a high volume and healthy price action , we may see testing the level of 1,242.00. Anyway, if we see larger reaction from sellers aroud our resistance, a bearish phase will be possible.


Daily pivot Fibonacci points:


Resistance levels:


R1: 1,231.51


R2: 1,233.13


R3: 1,235.77


Support levels


S1: 1,226.23


S2: 1,224.61


S3: 1,221.97


Trading recommendations: Selling gold at this stage still looks risky since we got strong demand in the background.


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Technical analysis of GBP/JPY for October 28, 2014

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Fundamental overview:


GPB/JPY is expected to consolidate in a higher range. But GBP/JPY gains are tempered by the decreased investor risk appetite. GBP/JPY is also weighed by Japan's export sales, unwinding JPY-funded carry trades amid diminished investor risk appetite as U.S. stocks closed mixed overnight (S&P 500 fell 0.15%, DJIA gained 0.07%) as a disappointing business confidence report from Germany raised concerns over the growth outlook in the eurozone.


Technical comment:


Daily chart is still positive-biased as 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 174.95 and the second target at 175.90. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 172.55. A break of this target would push the pair further downwards and one may expect the second target at 171.75. The pivot point is at 173.30.


Resistance levels:

174.95

175.90

176.75

Support levels:

172.55

171.75

171


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Technical analysis of USD/CHF for October 28, 2014

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Intraday trading recommendations :





  • According to the previous events, the price of the USD/CHF pair has still been trapped between 0.9520 and 0.9424.

  • The level of 0.9491 represents the weekly pivot point. It should be noted that the weekly pivot point coincides with the ratio of 61.8% Fibonacci retracement levels.

  • So, sell below 0.9491 in the short term with the first target of 0.9491 in order to test the first support, it might resume to 0.9397 (the double bottom) if the trend will be able to break the double top at weekly support 1.

  • The stop loss should never exceed your maximum exposure amounts. Thus, it will be quite profitable to set your stop loss at the level of 0.9540.



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Review :



  • The first resistance of USD/CHF pair is projected at the level of 0.9491 today.

  • The second resistance had already fixed at 0.9525.

  • The area of 0.9491 is a useful area to sell in the long term this week.

  • We expect a range of 70 pips on October 28, 2014.

  • Volatility: 251.85. As a rule, the market is highly volatile if the last day had a huge volatility.

  • It should be noted that if there is no significant news to influence, the market price will be moving from pivot point to resistance 1 or support 1. But if there is, the market price may go straight through resistance 1 or support 1 and reaches resistance 2 or support 2 and even resistance 3 or support 3.


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Technical analysis of EUR/USD for October 28, 2014

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Overview :



  • EUR/USD: The levels of 1.2801 will indicate strong resistance on October 28, 2014. Moreover, we expect that the level of 1.2839 is going to form a double top at this spot in H1 chart. On the other hand, the minor support has set at the price of 1.2666 and the major support is going to set at 1.2613. Also, it might be noticed that the double bottom is going to place at the price of 1.2613. Furthermore, according to the previous events, the EUR/USD pair is still moving between the levels 1.2666 and 1.2753. Consequently, it will be wise to sell at the area of 1.2800 or 1.2840 with the first target at 1.2707 (the weekly pivot point) in coming hours. Do it another way, the stop loss should be placed above the level of 1.2840. Consequently, it will be very beneficial if you set your stop loss at the 1.2864 price.


Notes :



  • The double top will set at the level of 1.2839.

  • The major support is going to set at 1.2613.

  • The minor support has set at the price of 1.2666.

  • The price had only hit the weekly pivot point this week.

  • We expect a range of 84 pips today.


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Technical analysis of GBP/USD for October 28, 2014

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Overview :



  • The price of the GBP/USD pair is going to turn to a bullish sentiment from the level of 1.6089; because if the trend is of an upside character, then the strength of the currency will be defined as following: GBP is in uptrend and USD is in downtrend. Additionally, the price of 1.6089 coincides with the weekly pivot point and the ratio of 50% Fibonacci retracement levels in H1 chart. Accordingly, it will be a good sign to buy above the weekly pivot point (1.6089) with the first target of 1.6161 to test a minor resistance at this price. It should be noted that the price of 1.6161 represents the double top. Also, it will call for an uptrend in order to continue its bullish movement towards 1.6183 today. Equally important, the resistance will set at the 1.6183 level. So, it will be very useful to take profit at this area. At the same time, the stop loss should be placed below the double bottom at the price of 1.6080. Furthermore, it should be noted that the range today will be about 72 pips.


Notes :



  • The stop loss has set in 48 pips. Consequently, the risk of 72 pips should make a profit of 75 pips.

  • Also, it should note that stop loss should never exceed your maximum exposure amounts.


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Technical analysis of USD/CAD for October 28, 2014

General overview for 28/10/2014 11:10 CET


Not much has changed in this pair since yesterday as the market is waiting for the FOMC meeting that will be held tomorrow. Currently, the range is getting even more tighter, the important levels are still the same as yesterday and the market is in a waiting mode. Please notice, that because of the range squeeze the breakout might be severe. The bias is still bullish as long as the level of 1.1080 is not broken.


Support/Resistance:


1.1070 - 1.1080 - Demand Zone


1.1128 - WS2


1.1182 - Intraday Support


1.1185 - WS1


1.1240 - Weekly Pivot


1.1262 - Intraday Resistance


1.1293 - Intraday Resistance


1.1296 - WR1


1.1354 - WR2


1.1384 - Swing High


1.1409 - WR3


Trading recommendations:


Traders should wait for an important level breakout and trade accordingly. The first date for that breakout is the FOMC meeting tomorrow.


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#USDX Technical analysis for October 28, 2014

The Dollar index remains above short-term support after the bounce from 84.45 towards 86 but the intermediate-term trend is still unclear. As long as we do not break the 86 resistance level, we could still be inside a bigger corrective pattern that could bring us towards 84. Short-term strength signals however point that support at 85.20-85.30 should hold if we are going to break 86 soon.


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Black line=resistance


Blue lines= price channel


The Dollar index moves inside an upward sloping price channel but below important resistance level of 86. The Dollar index remains above the Ichimoku cloud in the 4-hour chart, tenkan-sen has crossed above the Kijun-sen and the Chikou span is above the candles. Most Ichimoku cloud indicators are bullish and technically we are still above support of 85.35.


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Once again, I point out the weekly chart where a huge bullish flag has been formed and we have seen a break out above it. The target for this bullish flag is at 91 and that is why I remain longer-term bullish from the current levels because the form of the decline has been corrective in nature and has almost reached 38% retracement from the low at 79.75. We could still see a sharp decline towards 84 which is the 38% retracement but I do not believe we will see lower. My strategy is to remain neutral and buy the Dollar index on signs of strength.


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Gold Technical analysis for October 28, 2014

Gold price is breaking below support levels and downtrend resumes after the strong bounce from $1,180 to $1,255. My longer-term view remains bearish targeting $1,050. The short-term trend has changed to bearish as well.


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As one can see in the 4-hour chart above, Gold price has broken out and below the Ichimoku cloud support and this confirms that the short-term trend has changed to bearish. In order for the short-term trend to change to bullish again, Gold price needs to break above $1,237 which is the cloud resistance and the Kijun-sen. As the cloud is turning red, this confirms the bearish trend we are currently in. A bounce towards $1,235-57 will not be a surprise for bears, but a break above this level is likely to happen. In any case, a rejection and a daily close below $1,237 continues to put the trend on bears' hands.


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Blue line=support


Gold price in the weekly chart above remains fully bearish in Ichimoku cloud terms. Price is below the tenkan-sen and has not managed to close above it for the last 10 weeks. The tenkan-sen weekly resistance is now at $1,235. So, a weekly close above this level could push Gold price towards $1,265. In generall, trend remains down and breaking below support at $1,180 where a triple bottom is formed, will surely push prices much lower towards $1,050. Concluding I remain longer-term bearish in Gold.


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Elliott wave analysis of EUR/NZD for October 28 - 2014

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Today's support and resistance levels:


R3: 1.6160


R2: 1.6132


R1: 1.6107


Current spot: 1.6075


S1: 1.6061


S2: 1.6044


S3: 1.6025


Technical summary:


Now, we have seen the expected test of support at 1.6056 (the low has been 1.6061). Currently, we will be looking for a break above minor resistance at 1.6107 as the first indication, that red wave ii is over, while a break above 1.6160 is needed to confirm, that red wave ii is indeed over and red wave iii higher towards at least 1.6446 is developing. However, as long as minor resistance at 1.6106 is protecting the upside, we will have to allow for a move closer to 1.6056 and maybe even slightly lower to 1.6025, but it's not necessary.


Trading recommendation:


We bought EUR at 1.6065 and has placed our stop at 1.6000. If you are not long in EUR yet, buy minding a break above 1.6107 with the same stop at 1.6000.


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Elliott wave analysis of EUR/JPY for October 28 - 2014

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Today's support and resistance levels:


R3: 137.82


R2: 137.35


R1: 137.21


Current spot: 137.11


S1: 136.90


S2: 136.79


S3: 136.59


Technical summary:


Wave c of B higher to 137.82 is still unfolding. Once the B-wave correction is over near 137.82, then we should be looking for wave C lower to 130.73. Short term, I expect minor support at 136.79 and more importantly support at 136.59 will protect the downside for the final rally higher towards 137.82 before wave C takes over for the next impulsive decline.


Trading recommendation:


We will sell EUR at 137.70 with stop placed at 138.10


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Trading recommendation on October 28, 2014

The soft US data dragged the pair below 20Dsma. In yesterday's session the pair rejected at 20Dsma and closed below that. Today the pair opened below the previous close which represents some more weakness. Traders eye today's US consumer confidence and tomorrow's US Federal Reserve monetary policy meeting. On the down side the pair has support at 0.9470. We recommend selling below 0.9465 and buying above 0.9525. The prices are trading below the hourly key moving averages in the h4 chart. The pair has been making a strong base between 0.9400 and 0.9392 levels. In case, if the pair closes below 0.9392, we can expect a 100 to 150 pips correction in the near term. The monthly support level exists at 0.9150 levels. Huge buying will take place above 0.9565 for a upside target of 0.9593 and 0.9625 levels.


Support: 0.9465, 0.9392, 0.9301


Resistance: 0.9562, 0.9625, 0.9688


Trade- selling below 0.9465


Buying above 0.9525


1414472242_USDCHFH4.pngThe material has been provided by InstaForex Company - www.instaforex.com

Intraday trading recommendations on Gold for October 28, 2014

In yesterday's session the metal closed at the 20Dsma levels. The metal has been making lower lows for 5 sessions. Today the metal opened below the 20Dsma and rejected there. Ahead of the US Federal Reserve monetary policy meeting, the expectations are very high the central bank will end its quantitative easing program. If this happens, the US dollar will gain more strength that will turn to the negative side for the yellow metal. Today in Asia's session, the metal is trading at $1,225, below the 20Dsma. Support levels exist at $1,221.50 and $1,217.00. Speculators can start selling below $1,221.50 or safe traders can start selling below $1,217.00 levels. For an Intraday view, the prices are closed below the hourly moving averages. The 12ema levels act as strong resistance levels. For speculators, we recommend risky selling only below $1,221.50, safe selling, below $1,217 and buying, above $1,230.00 levels.


Until the prices close below $1,240.00 the trading pattern is framed between $1,217.00 and $1,240.0.


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Trade-


Buy with sl $1,221.50 and targets at $1,230, above this, $1,232, $1,234, $1,238 and $1,240.


Selling below $1,221.50 with targets at $1,217.00, below this, $1,210 and $1,204.00.


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Technical analysis on GBP/USD for October 28, 2014

The soft US data gave enough strength to close above 20Dsma.The cable is trading on the verge of 4-month descending trend line. In the daily chart, we can observe minor h&s pattern. Today's closing will provide a clear direction in the near and short term. Ahead of the US Federal Reserve monetary policy meeting, the expectations are very high the central bank will end its quantitative easing program. A daily close above the neck line in the daily chart, we can see a sharp upswing of 310 pips in the near and short term. The cable has strong support at 1.6000 levels. The trading pattern is framed between 1.6000 and 1.6200. For an Intraday view, the prices are closed and trading above hourly key moving averages. The cable has support at 1.6100 and 1.6090 levels. Below 1.6090 hourly key trend decider level exists at 1.6070. We recommend selling below 1.6070 for targets at 1.6000, below this, panic will be triggered. Safe traders can buying above 1.6200.


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Technical analysis of EUR/USD for October 28, 2014

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The soft US data gave the pair enough strength to close above 20Dsma. The euro recovered from the support zone at 1.2600 levels. Traders eye this week's Federal Reserve monetary policy meeting. There are high expectations that the US central bank will end its QE program. On the down side the pair has a strong support zone between 1.2600 and 1.2584 levels. Today, in the Pacific session the pair is trying to hold at 20Dsma, 1.2694 levels. The longer-term picture still favors the downside target at 1.2220, 200Msma. On October 28-31, the support level exists at 1.2600 and resistances exist at 1.2740 and 1.2865, 50Dsma levels.


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For an hourly view, the prices are closed above 12ema and 21hrsma levels. Currently the price is facing strong resistance at 34hrsma, above this, 1.2715 levels. On the down side, support exists at 1.2694, below this, 1.2689, 1.2675, 35DEMA and 21hrsma 1.2666 12hr low. We can see strong rise above 1.2845 levels. We recommend selling below 1.2660 for targets at 1.2630, 1.2614 and 1.2606.


Trade-


Selling below 1.2660


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Technical analysis of EUR/JPY for October 28, 2014


Technical outlook and chart setups:


The EUR/JPY is seen to be stalling around 137.00/20 levels since yesterday. The pair could retrace and carve a higher low around 136.00 levels before resuming rally towards 138.70/80 levels. Support is seen at 136.50, followed by 135.25, 134.25 and lower while resistance is seen at 138.00, followed by 139.00 and higher respectively. The pair had bounced off the 135.20 levels last week, which is confluence of fibonacci 0.618 support, backside of the resistance line and a morning star bullish candlestick formation. Hence it is recommended to remain long since bulls shall remain in control till prices remain above 135.00/20 from here on.


Trading recommendations:


Remain long, set stop at 135.00, target is 138.70.


Good luck!


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Technical analysis of GBP/CHF for October 28, 2014


Technical outlook and chart setups:


The GBP/CHF pair reversed after printing intraday highs at 1.5338/40 yesterday. Please make a note that the pair is stalling at a fibonacci 0.618 resistance around 1.5320/30 (of the drop from 1.5555 to 1.4975). A bearish reversal could be expected at current levels, and the pair could possibly resume its next downswing extension below 1.4975 levels. Support on the daily chart view here is at 1.4950, followed by 1.4700/50 while resistance is seen at 1.5450, followed by 1.5555 respectively. It is recommended to remain short for now and also look to add further.


Trading recommendations:


Remain short. set stop above 1.5450, target is open.


Good luck!


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Technical analysis of Silver for October 28, 2014


Technical outlook and chart setups:


Silver is trading at the support region around $17.00 levels for now. The metal could be preparing to rally towards $17.50/60 levels at least, if not higher from here. Hence, it is recommended to remain long for now, risk remains at $16.60. The metal still continues to be in a trading range, where support is around $17.00 and resistance is around $17.60/70 respectively. The metal is supported by $16.60 for now and bulls should remain in control till prices remain above the same. Resistance is seen at $18.00, followed by $18.50 and higher respectively.


Trading recommendations:


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


Good luck!


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Technical analysis of Gold for October 28, 2014


Technical outlook and chart setups:


Gold is trading around $1,227.00 levels for now which are around 0.382 fibonacci support, of the rally between $1,183.00 and $1,255.00. The metal could pullback towards $1,242.00 levels before dipping further into $1,210.00 region. Support is seen at $1,208.00/10, followed by $1,183.00 and lower while resistance is seen at $1,255.00 (interim), followed by $1,275.00 and higher respectively. It is recommended to cover short positions if taken last week and wait for a rally higher. The optimum level to go long is around $1,208.00/10.00 levels. Either way, a push above $1,255.00 levels could further see $1,300.00 at least on the higher side.


Trading recommendations:


Cover short positions taken earlier, remain flat for now.


Good luck!


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Technical analysis of EUR/USD for October 28, 2014

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When the European market opens, some economic news will be released such as German Import Prices m/m. The US will release the economic data too such as the Core Durable Goods Orders m/m, Durable Goods Orders m/m, S&P/CS Composite-20 HPI y/y, CB Consumer Confidence, Richmond Manufacturing Index, so amid the reports, EUR/USD will move with low to medium volatility during this day.

TODAY TECHNICAL LEVELS:

Breakout BUY Level: 1.2763.

Strong Resistance:1.2755.

Original Resistance: 1.2743.

Inner Sell Area: 1.2731.

Target Inner Area: 1.2701.

Inner Buy Area: 1.2671.

Original Support: 1.2659.

Strong Support: 1.2647.

Breakout SELL Level: 1.2639.

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 28, 2014

In Asia, Japan will release the Retail Sales y/y and the US will release some economic data such as Core Durable Goods Orders m/m, Durable Goods Orders m/m, S&P/CS Composite-20 HPI y/y, CB Consumer Confidence, Richmond Manufacturing Index. 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: 108.47.

Resistance. 2: 108.26.

Resistance. 1: 108.05.

Support. 1: 107.78.

Support. 2: 107.57.

Support. 3: 107.36.

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Daily analysis of USDX for October 28, 2014

At the H4 chart, the USDX has met resistance at the bullish trend line near the resistance level of 86.01, so the USDX could be forming a bullish pattern above the 200-day moving average. It is likely that during today's session the USDX will make a rebound on bullish trend line at the level of 85.45 and therefore rise again to the level of 86.01, although the MACD indicator remains in neutral territory.


USDXH4.png

H4chart's resistance levels: 86.01 / 86.75


H4chart's support levels: 85.06 / 84.52


The USDX is trying to make a rebound at the support level of 85.49, where the 200 SMA is on the H1 chart. If the USDX makes a breakout at the resistance level of 85.73, it's expected to climb back to the level of 85.95 in the short term that means a strong bullish consolidation in the short term and the USDX could have a second wind in the current trend. The MACD is entering neutral territory, which could favor the bullish momentum in the USDX.


USDXH1.png

H1 chart's resistance levels: 85.73 / 85.95


H1 chart's support levels: 85.49 / 85.27


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 85.95, take profit is at 86.17, and stop loss is at 85.73.


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Daily analysis of GBP/USD for October 28, 2014

On the daily chart, the GBP/USD is trying again to make a breakout at the level of 1.6146 so it is very likely that this pair will go up to the resistance level of 1.6235. However, these corrective movements may stop suddenly, and GBP/USD might begin to fall below the support level of 1.6046, so that the next target would be the level of 1.5883. Keep in mind that the GBP/USD is following a bearish trend line at current levels. The MACD indicator remains in positive territory.


GBPUSDDaily.png


Daily chart's resistance levels: 1.6146/ 1.6235


Dailychart's support levels: 1.6046 / 1.5883


The GBP/USD is consolidating above the support level of 1.6117 with the formation of a higher high pattern, so that the next target would be the resistance level of 1.6170 on the bullish road. If GBP/USD does a breakout at the level of 1.6170, it's expected to rise to the level of 1.6216. The MACD indicator is entering neutral territory.


GBPUSDH1.png


H1 chart's resistance levels: 1.6170 / 1.6216


H1 chart's support levels: 1.6117 / 1.6075


Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the GBP/USD pair breaks a bullish candlestick; the resistance level is at 1.6170, take profit is at 1.6216, and stop loss is at 1.6127.


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Technical analysis of EUR/JPY for October 27, 2014

General overview for 27/10/2014 18:20 CET


The corrective wave development to the upside look like completed and any breakout below the intraday support at the level of 136.48 is the first confirmation of a bearish bias. There is however a slight probability that the market might go a little bit higher and breakout above the intraday resistance at the level of 137.24, but it should be capped at the previous supply zone between the levels of 137.80 and 137.93.


Support/Resistance:


138.11 - WR1


137.80 - 137.93 - Supply Zone


137.24 - Intraday Resistance


136.66 - Weekly Pivot


136.48 - Intraday Support


136.11 - WS1


Trading recommendations:


Daytraders should consider opening sell orders from the current price levels with SL above the level of 137.24 and TP at the level of 135.20.


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Technical analysis of USD/CAD for October 27, 2014

General overview for 27/10/2014 08:20 CET


This market is still in the range zone between the levels of 1.1182 and 1.1294. The corrective cycle is getting more complex and time consuming, but the bias is still bullish as long as the level of 1.1080 is not broken (purple impulsive wave count invalidation). The first clue that the uptrend will be continued is impulsive breakout above the golden channel line, weekly pivot level and intraday resistance at the level of 1.1262. Otherwise the market might still penetrate the lower levels of the price range.


Support/Resistance:


1.1070 - 1.1080 - Demand Zone


1.1128 - WS2


1.1182 - Intraday Support


1.1185 - WS1


1.1240 - Weekly Pivot


1.1262 - Intraday Resistance


1.1293 - Intraday Resistance


1.1296 - WR1


1.1354 - WR2


1.1384 - Swing High


1.1409 - WR3


Trading recommendations:


Traders should wait for an important level breakout and trade accordingly.


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

caddaily.jpgcad4h.jpg


Overview:


Two months ago, the bearish swing (initiated in March 2014) was stopped 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.


A bullish breakout off the movement channel took place in August. Since then, the pair has been trending-up within the depicted bullish channels.


As mentioned before, breaching the price zone of 1.1230-1.1260 and fixation above it triggered new bullish impulse. Strong bullish momentum has been expressed for a couple of weeks so far. This movement was maintained within a steeper bullish channel.


Bulls were pushing beyond the upper limit of the movement channel. The USD/CAD pair looked overbought on the daily chart.


Few days ago, the USD/CAD pair tested the upper limit of the steeper channel. This corresponded to the price level of 1.1370. Immediate bearish rejection was expressed as anticipated after such a long bullish swing resulting in a bearish correction towards 1.1200.


Recommendations:


Conservative traders should be looking for short positions around the price zone of 1.1270-1.1290 ( low risk/reward ratio ) with SL located just above 1.1320.


On the other hand, for risky traders, 4H fixation below 1.1230 - 1.1210 ( 50% Fibonacci level ) is another valid signal with a higher risk/reward ratio.


Initial targets are located at 1.1180-1.1160.


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GBP/USD intraday technical levels and trading recommendations for October 27, 2014

1414424007_gbpdaily.jpggbp4h.jpg


Overview:


The GBP/USD pair has been moving downwards below the depicted downtrend line since July 15 when the ongoing downtrend was initiated.


Many bearish impulses were previously initiated around 1.7180, 1.6630 and 1.6400 where the downtrend line came to meet the pair then.


The price zone of 1.6060 - 1.6090 constituted a transient daily support that paused the bearish movement for a few days since September 9. However, the bears quickly managed to push below reaching down to 1.5890 (depicted on the chart).


Price level of 1.5890 provided evident bullish recovery. A bullish engulfing daily candlestick is manifest on the chart.


Recently, the bulls has pushed above the downtrend line. Bullish breakout off the descending-wedge pattern is already manifest on the chart.


Bullish fixation above 1.6060 is needed to maintain the bullish scenario.This will probably liberate a strong bullish swing towards 1.6250 initially ( significant bottom established in February 2014 and 23.6% Fibonacci level ).


Trading recommendations:


Initial bullish fixation above 1.6090 ( the broken trend line ) indicates a valid BUY entry towards 1.6250 and 1.6310. Stop Loss should be located below 1.6015.


Stepping above 1.6180 ( last week's high ) probably confirms a longer-term bullish correction towards 1.6380-1.6400 where 38.2% Fibonacci level is located.


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Technical analysis of USD/JPY for October 27, 2014

USDJPYM30.png


Fundamental overview:


USD/JPY is expected to trade with a bullish bias. It is underpinned by the yen-funded carry trades amid the positive investor risk appetite (VIX fear gauge eased 2.54% to 16.11) as U.S. stocks rose Friday (S&P 500 closed up 0.71% at 1,964.58) amid fading concerns over slowing global growth after better-than-expected factory and GDP data out of China, and renewed expectations for central bank policy accommodation--tame U.S. CPI data suggests the Federal Reserve would be in no hurry to raise interest rates after the conclusion of its bond-buying program. USD/JPY also supported by demand from Japan importers; ultra-loose Bank of Japan's monetary policy. But USD/JPY gains are tempered by Japan's export sales and caution ahead of Fed's monetary decision Wednesday.


Technical comment:
Daily chart is positive-biased as stochastics is bullish, MACD staging bullish crossover against its exponential moving average, five-day moving average is above 15-day MA and is advancing.


Trading recommendations:
The pair is trading above its pivot point. It is likely to trade in a higher range as far as it remains above its pivot point. As long as the price is keeping above its pivot point, a long position is recommended with the first target at 108.35 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 107.35. A break of this target would push the pair further downwards and one may expect the second target at 107.05. The pivot point is at 107.55.


Resistance levels:

108.35

108.75

109


Support levels:

107.35

107.05

106.75


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