EUR/NZD analysis for October 30, 2014

EURNZDDaily30.png


EURNZDH430.png


Overview:


In our last analysis, EUR/NZD has been trading upwards. As we expected, the price tested the level of 1.6234 in an ultra high volume (buying climax). We can observe that price went into bearish corrective phase according to the previous strong bullish leg so I have placed Fibonacci retracement to find potential end of bearish corrective phase. I got Fibonacci retracement 61.8% at the price of 1.6095 (held successful). According to the 4H time frame, we can observe potential end of a beairhs corrective phase (abcd), which is a sign that selling looks risky. Be careful when selling EUR/NZD since we may see further upward movement. Watch for potential buying opportunities after retracement (buy on the lows). According to the daily chart, we got weak supply in a volume below the average.


Daily Fibonacci pivot levels:


Resistance levels:


R1: 1.6250


R2: 1.6312


R3: 1.6412


Support levels:


S1: 1.6050


S2: 1.5988


S3: 1.5888


Trading recommendations: Be careful when selling the EUR/NZD pair since our Fibonacci retracement 61.8% is on the test


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

Gold: analysis for October 30, 2014

GOLDDaily30.png


GOLDH430.png


Overview:


Since our last analysis, gold has been trading downwards. As we expected, the price tested the level of 1,199.56 in an ultra high volume (selling climax). Our Fibonacci retracement 61.8% at the price of 1,210.00 is broken, which is a sign that the price go to test the level of 1,183.00 (swing low like support). According to the daily time frame, we got demand in a volume below average, which caused the price to start with donward movement. I have placed Fibonacci retracement to find potential resistance levels and I got Fibonacci retracement 38.2% at the price of 1,206.00 (currently on the test) and Fibonacci retracement 61.8% at the price of 1,210.00. Watch for potential selling opportunities after retracement.


Daily pivot Fibonacci points:


Resistance levels:


R1: 1,229.65


R2: 1,234.89


R3: 1,243.37


Support levels


S1: 1,212.69


S2: 1,207.45


S3: 1,198.97


Trading recommendations: Buying gold at this stage looks risky since price has broke Fibonacci retracement 61.8%.


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

Technical analysis of EUR/USD for October 30, 2014


Technical outlook and chart setups:


The EUR/USD pair drops below 1.2600 (interim) support, but is still expected to carve a higher bottom above 1.2500. The pair is testing fibonacci 0.786 support around 1.2560 levels as seen here. A bullish reversal here would still drag prices higher up to the 1.3100 mark in the sessions to come. On the flip side, a drop below 1.2500 would delay matters further and bring in bears to regain control. Support is now at 1.2500 on the 4H chart view while resistance is seen at 1.2760, followed by 1.2850/1.2900 levels respectively. It is still recommended to initiate long positions now (1.2570/80), risk remains below 1.2500.


Trading recommendations:


Remain long, stop below 1.2500, the target is 1.3120.


Good luck!


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

#USDX Technical analysis for October 30, 2014

The Dollar index has held support yesterday. After the FOMC minutes, the greenback strengthened and broke above resistance levels signaling the start of a new upward move that could push the index towards 91. The trend is bullish as long as price is above 85.15.


usdx.jpg

Red line = broken resistance


Black line=broken trend line resistance


The Dollar index has bounced strongly off the Ichimoku cloud support after making a low at 85.20. The Dollar index has managed to hold above the cloud support and has also showed signs of strength by breaking above 86. The trend is bullish and this trend reversal could signal the start of a new upward move in the Dollar index. For this to hold, the Dollar index should not break below 85.20.


usdxd.jpg

The Dollar index is progressing as expected from the bullish flag break out as we noted several days ago, producing a new higher high and a higher low, confirming the bullish trend. Resistance at 86.75 should now be tested and broken, otherwise we might be in danger of seeing a pull back towards 84.


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

Gold Technical analysis for October 30, 2014

Gold price has broken short-term support at $1,221 and price is moving towards our short-term target of $1,200 already. My longer-term view remains bearish targeting $1,050. Important resistance for a trend change is the $1,240.


goldh4.jpg

Red line=broken support


Gold price has made a lower low and remains below the Ichimoku cloud. Next support is at $1,200 and at $1,180. This support area is strong and could produce a bigger bounce towards $1,265 but I would again prefer not to take any bullish trades and only look for levels to sell Gold. The short-term resistance is at $1,225 and at $1,240. Breaking above $1,240 will give me $1,265 as the 1st target. The trend however remains bearish and I continue to prefer short positions.


gold.jpg

The weekly chart remains fully bearish as price has now moved away of the critical resistance at $1,237 that was needed to be broken on a weekly basis in order for Gold price to bounce higher towards $!,265 or even $1,300. The bearish weekly formation combined with the rejection at the Ichimoku cloud, continues to support my longer-term bearish view that eventually we will break $1,180.




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

Elliott wave analysis of EUR/NZD for October 30 - 2014

2014-10-30-EURNZD-8H.png


Today's support and resistance levels:


R3: 1.6263


R2: 1.6240


R1: 1.6211


Current spot: 1.6143


S1: 1.6133


S2: 1.6099


S3: 1.6055


Technical summary:


Red wave ii ended at 1.6003 (dangerous close to our stop at 1.6000). The rally of the 1.6003 low is clearly impulsive in character and after a small correction to 1.6099 the next impulsive rally higher towards 1.6498 should be seen. Only an unexpected decline below 1.6003 will invalidate the immediately bullish count and call for the alternative count, showing and expanded diagonal developing, but the odds for this possibility is very very low now.


Trading recommendation:


We are long in EUR from 1.6065 with stop placed at 1.6000. If you are not long in EUR yet, then buy near 1.6099 with the same stop at 1.6000.


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

Elliott wave analysis of EUR/JPY for October 30 - 2014

2014-10-30-EURJPY-8H.png


Today's support and resistance levels:


R3: 137.72


R2: 137.52


R1: 137.42


Current spot: 137.41


S1: 137.22


S2: 136.90


S3: 136.70


Technical summary:


The correction in wave B ended slightly higher than the ideal 137.82, with a top at 138.03. Now, we will be looking for a break below support at 136.56 as the final confirmation, that wave B did indeed end at 138.03 and wave C lower to 130.99, where wave C will be equal in length to wave A. Short term, we will be looking for resistance at 137.53 to protect the upside for the decline to 136.59 and below.


Trading recommendation:


We are short in EUR from 137.70 with stop place at 138.10. If you are not short in EUR yet, then sell near 137.52 with the same stop at 138.10


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

Technical analysis of USD/CAD for October 30 2014

General overview for 30/10/2014 07:50 CET


The low anticipated yesterday for purple wave (2) looks to be in place now. The market move is just below the golden trendline and it is waiting for a breakout. The key level for the market is the level of 1.1292 and any breakout above the level is bullish with a high possibility of new highs to be made. Moreover, any failure at that level means that the corrective cycle will be more complex and time-consuming.


Support/Resistance:


1.1070 - 1.1080 - Demand Zone


1.1074 - WS3


1.1128 - WS2


1.1182 - Intraday Support


1.1185 - WS1


1.1240 - Weekly Pivot


1.1262 - Intraday Resistance


1.1292 - Intraday Resistance|Key Level for Bears|


1.1295 - WR1


1.1351 - WR2


1.1384 - Swing High


Trading recommendations:


The buy orders opened yesterday should be still kept open and SL for those orders should be now moved higher above the level of 1.1100. Any breakout above the level of 1.1220 provides further opportunity to add more buy orders with the same SL and TP levels as before.


usdcad_h1.jpg


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

Technical analysis of EUR/JPY for October 30, 2014


Technical outlook and chart setups:


The EUR/JPY pair has almost hit 138.00 levels yesterday before pulling back. The pair could retrace a bit before hitting the next target at the 138.80 levels. The pair is at 137.45/50 at the moment. It is recommended to book at least partial profits, the target remains for 138.80 exit. Support is seen at 136.50, followed by 135.00 and lower while resistance is seen at 139.00, followed by 140.20 respectively. The pair could push higher up to the 138.70/80 levels before giving a meaningful retracement. In the longer run, the pair has got potential to rise up to 140.50 and higher as seen here.


Trading recommendations:


Exit long positions partially. Hold remaining long positions, stop is 135.00, the target is 138.70.


Good luck!


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

Technical analysis of EUR/JPY for October 30, 2014

General overview for 30/10/2014 07:30 CET


As anticipated two days ago the one to one equal legs market geometry pattern between waves a and c green has been completed and supply zone has provided the resistance necessary to move the market down. Currently it looks like intern sub-cycle wave -i- is completed and now the market is in wave -ii- of the cycle. When the correction is finished, the market should break below the level of 137.25 in impulsive fashion and continue lower. Nevertheless, the key support for the bulls is still at the level of 136.48 and only a breakout below this level confirms the top for wave B black at the level of 138.04. On the other hand, any breakout higher above the supply zone invalidates the immediate impulsive bearish scenario.


Support/Resistance:


138.11 - WR1


138.06 - Projected Target Level For wave B |Key Level for Bears|


137.92 - Intraday Resistance


137.80 - 137.93 - Supply Zone


137.24 - Intraday Support


136.66 - Weekly Pivot


136.48 - Intraday Support|Key Level for Bulls|


136.11 - WS1


Trading recommendations:


Sell positions opened yesterday should still be kept open. Just to remind you: SL above the level of 138.11, TP below the level of 137.24.


eurjpy_h1.jpg


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

Technical analysis of GBP/CHF for October 30, 2014


Technical outlook and chart setups:


The GBP/CHF dropped close to 1.5200 levels yesterday before pulling back higher. The pair is trading around 1.5300 levels at the moment and bears should resume down swing till prices are below 1.5340/50 levels. Support is seen just below 1.5200 levels, followed by 1.5100, 1.4975 and lower while resistance is seen at 1.5450, followed by 1.5550/5 respectively. It is recommended to remain short from last week, risk remains above 1.5450. The pair could drop below 1.4700 levels if 1.5350 and subsequently 1.5450 levels (resistances) hold good.


Trading recommendations:


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


Good luck!


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

Technical analysis of Silver for October 30, 2014


Technical outlook and chart setups:


Silver has tested the range lows at sub $17.00 levels again. Please note that it is also at the fibonacci 0.618 support (sub $17.00 levels). The metal could be preparing to rally from current price levels up to $18.50 in the days to come. Hence recommendations are to remain long, risk is below $16.60 for now. Support is seen at $17.00, followed by $16.60 and lower, while resistance is seen at $18.00 levels, followed by $18.80/19.00 and higher respectively. Bulls could be determined to take control back till prices remain above $16.60 .


Trading recommendations:


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


Good luck!


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

Technical analysis of Gold for October 30, 2014


Technical outlook and chart setups:


Gold has dropped to $1,210.00 levels as discussed and expected earlier. Please also note that the metal is at fibonacci 0.618 support levels of the rally between $1,183.00 and $1,255.00. It is recommended to exit short positions taken earlier (last week) and initiate long positions, with risk at $1,180.00 levels. Support is seen at $1,205.00 followed by $1,183.00 and lower while resistance is seen at $1,225.00, followed by $1,255.00 (interim), $1,275.00 and higher respectively. The metal is moving sideways since yesterdays' drop and bulls are expected to resume rally from here.


Trading recommendations:


Remain long, set stop at $1,179.00, target is open.


Good luck!


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

Technical analysis of GBP/JPY for October 30, 2014

The cross is trading at a 2-week high. The cross managed to hold the 20Wsma. In the daily chart, we can see the minor double top at 174.76 levels on a closing basis. On a monthly closing basis, the pair must close above 177.80 levels. In case, if the cross closes below 177.80 we can clearly see the double top formation in the monthly charts representing down side again back to 168.00 levels, 200Mema. In case, if the cross manages to close above 177.80 the pair can extend its upswing towards 180.70 and 183.50 levels. Including today, we have 1 more trading session left in the current month. In the current month, the cross erased the 3/4th of its losses. We will re-analyze the chart, in case if the pair closes above 177.80 on a monthly closing basis.


GBPJPYDaily.png

Today in Asia's session the cross held the support at 50Dsma, 174.00. We recommend buying only above 174.76 levels. The hourly stochastics is indicating sell mode. The prices are taking support at 21ema, 174.00 levels. We recommend selling below 174.00. The hourly resistance exists at 174.40 35DEMA. The pair will face heavy selling pressure below 173.60, 34hrsma, for an immediate target at 173.00.


GBPJPYH4.png

Trade:


Buying above 174.80 for targets at 175.02, 175.90


Selling below 173.60 for targets at 173.00


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

Trading recommendation on Gold for October 30, 2014

The yellow metal was pushed to a 3-week low. In today's early session the metal holds steady by holding previous low. In yesterday's session the metal fell below 20Dsma and closed below that. The metal has the nearest support at $1,207.00 levels, below this, $1,202.80 and $1,200.00 will act as support levels. On the other hand, the metal has resistance at $1,217.00, above this $1,222.00 and $1,227.00, 20Dsma. For an intraday basis, the prices are taking support at $1,211.70 and facing strong resistance at $1,217.00. A breakout either side will provide further room to trade. In the h4 chart, the momentum oscillators are indicating oversold levels. The metal prices closed far below the 12ema and 35DEMA. We recommend using every rise to sell or sell below 1210.00 and panic will be triggered below 1,207.00 levels. The resistance levels exist at $1,217.00, $1,221.60, 12ema, $1,226.00, 21hrsma, and $1,229.60, 34hrsma. Until the prices close below the 34hrsma selling will mint the money for today and tomorrow as well. For an hourly trade, risky traders, use sl $1,216.50 selling at a market price at $1,213.00 for targets at $1,211.00, $1,207.50, below this, $1,204.00 and $1,200.00 levels. Buying above $1,217.00 for targets at $1,220.00 and $1,221.60 levels.


1414638209_GOLDH4.png


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

Forecast and trading recommendations on EUR/JPY for Octoebr 30, 2014

The cross is trading at 3-week high. The cross managed to breach the 20Wsma, but was unable to sustain above that. In the daily chart, we can see the minor double top at 137.75 levels on a closing basis. On a monthly closing basis, the pair must close above 138.48 levels. In case, if the cross closes below 138.48 we can clearly see the double top formation in the monthly charts representing a downward move towards 135.45 levels. In case, if the cross manages to close above 138.48 the pair can extend its upswing towards 139.40 and 139.90 levels. Including today, we have 1 more trading session left in the current month. In the longer term picture we can see the 131.40 and 129.0 breaks, below this, another steep correction towards 2013 February and March lows. In the current month, the cross erased the 3/4th of its losses. We will re-analyze the chart in case if the pair closes above 138.48 on a monthly closing basis. The Euro is weaker than the Yen.


EURJPYDaily.png

For an intraday basis, the cross looks weak only below 137.40 levels. We recommend buying above 137.75 levels. In the h4 chart, the hourly Stochastics is indicating a selling signal. The intraday trading pattern is framed between 137.40 and 137.75. We recommend selling below 137.30 for targets at 136.90 and 135.60 levels. We recommend buying above 137.75 and strong momentum only above 138.02 levels. In the hourly chart, the pair made a double top at 138.02 levels. We can expect a strong upswing only above 138.02.


EURJPYH4.png

Trade:


Risky traders, buying above 137.75


Safe traders, buying above 138.02


Selling below 137.30


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

Trading recommendation on USD/CHF for October 30, 2014

The US dollar gave a stellar performance against most major currencies. The Federal Reserve closed its monthly bond-buying program. The pair took support from the ascending trend line, gave a strong close in yesterday's session. The pair closed above 20Dsma, but is facing strong resistance at the 61.8 fib level of 0.9562. We recommend buying above 0.9562. In the daily chart, we can observe an ascending triangle. The height of the triangle is 164 pips on a closing basis. We can see another huge upswing above 0.9562 for an immediate target at 0.9600 and 0.9625 levels. Above these, 0.9685 and 0.9726 are also possible on a positional basis. Bulls get active only above 0.9562. On the down side, the pair has support at 0.9510, 20Dsma. Below 0.9510 the ascending trend line will provide enough support to push the prices higher. In case, if the prices close below the ascending trend line, the base support at 0.9400 will act as strong support. The pair has been trading within a 160-pip range. A breakout either side will provide more room to trade. For an intraday session, the pair has support at 0.9490. We recommend selling below 0.9490 and buying above 0.9562 levels.


Trade:


Buying above 0.9562 for targets at 0.9600 and 0.9625


Selling below 0.9490 for targets at 0.9440 and 0.9400


USDCHFH4.png


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

Technical analysis of EUR/USD for October 30, 2014

When the European market opens, some economic news will be released such as German Prelim CPI m/m, Spanish Flash CPI y/y, Spanish Flash GDP q/q, German Unemployment Change, Italian 10-y Bond Auction. The US will release the Advance GDP q/q, Unemployment Claims, Advance GDP Price Index q/q, 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: 1.2694.

Strong Resistance:1.2686.

Original Resistance: 1.2674.

Inner Sell Area: 1.2662.

Target Inner Area: 1.2632.

Inner Buy Area: 1.2602.

Original Support: 1.2590.

Strong Support: 1.2578.

Breakout SELL Level: 1.2570.

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 30, 2014

In Asia, Japan will not release any economic news, but the US will release some economic data such as Advance GDP q/q, Unemployment Claims, Advance GDP Price Index q/q, 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: 109.61.

Resistance. 2: 109.40.

Resistance. 1: 109.18.

Support. 1: 108.92.

Support. 2: 108.70.

Support. 3: 108.49.

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 USDX for October 30, 2014

At the H4 chart, the USDX rose from the level of 85.20 to the resistance level of 86.01 where the USDX has begun to form a bullish pattern. In the medium term, we can see that the USDX has enough room to rise to the level of 86.40, where one bullish trend line is on this chart. In addition, the MACD indicator remains in positive territory, although the USDX could make a pullback at current levels.


USDXH4.png

H4chart's resistance levels: 86.01 / 86.75


H4chart's support levels: 85.06 / 84.52


The USDX had a strong bullish momentum above the 200 SMA on the H1 chart. For now, the USDX could begin to form a higher high pattern to attempt a breakout on the resistance level of 86.17. If successful, the next target would be the level of 86.40 in the short term. However, the USDX could perform a retracement to the support level of 85.73, to then continue the bullish trend. The MACD indicator remains in positive territory.


USDXH1.png

H1 chart's resistance levels: 86.17 / 86.40


H1 chart's support levels: 85.95 / 85.73


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 85.27, take profit is at 85.03, and stop loss is at 85.49.


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

Daily analysis of GBP/USD for October 30, 2014

On the daily chart, GBP/USD had a sharp drop from the resistance level of 1.6146 to the 1.6005 level, where the pair is trying to consolidate its current bearish trend, and now this pair could fall to the support level of 1.5883 in the medium term. That level is very strong, as this pair made a rebound at this level a few weeks ago. For now there is no clear view in the short term for the GBP/USD and the MACD indicator is entering neutral territory.


GBPUSDDaily.png


Dailychart's resistance levels: 1.6046 / 1.6146


Daily chart's support levels: 1.5883 / 1.5746


The GBP/USD is forming a lower low pattern below the resistance level of 1.6031, which is below the 200-day moving average. However, the GBP/USD could conduct a retracement to the resistance level of 1.6075, even if the pair could perform a breakout at the support level of 1.5980 to fall to the level of 1.5925, which would be a bearish consolidation.


GBPUSDH1.png


H1 chart's resistance levels: 1.6031 / 1.6075


H1 chart's support levels: 1.5980 / 1.5925


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 1.5980, take profit is at 1.5925, and stop loss is at 1.6035.


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

USD/CAD intraday technical levels and trading recommendations for October 29, 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.


As anticipated, 4H fixation below 1.1230 - 1.1210 ( 50% Fibonacci level ) allowed the bears to push towards 1.1100 where bullish recovery should be anticipated.


Recommendations:


The low-risk short positions around the price zone of 1.1270-1.1290 was suggested few days ago in previous articles.


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


On the other hand, a short-term positions is suggested at retesting of 1.1190 ( the most recent established bottom on the 4H ) with stop loss located just above 1.1260.


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

GBP/USD intraday technical levels and trading recommendations for October 29, 2014

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 a solid daily support level that 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 downtrend line as well as an inverted bullish Head and Shoulders are already manifest on the chart. Bullish fixation above 1.6060 was anticipated to maintain the bullish scenario.


As suggested, this opens the way for the bulls to push towards 1.6250 initially ( significant bottom established in February 2014 and 23.6% Fibonacci level ).


Trading recommendations:


A valid BUY entry was suggested after fixation above 1.6090 (the broken trend line). This position is running in profits now. Target levels are located at 1.6250 and 1.6310. Stop Loss should be advanced to be just below 1.6050.


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


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

Technical analysis of USD/CAD for October 29, 2014

General overview for 29/10/2014 16:50 CET


The count has been a little bit adjusted to fit the complex corrective cycle in still possible wave (2) purple. The wave c green of this correction looks completed and bullish divergence supports this view. The first confirmation of a bullish wave progression to the upside comes with the level of intraday resistance at the level of 1.1182 breakout and then a golden channel upside breakout as well. A failure there means the market is rather very likely to break below the black line and test the demand area between the levels of 1.1070 - 1.1080 again.


Support/Resistance:


1.1070 - 1.1080 - Demand Zone


1.1074 - WS3


1.1128 - WS2


1.1182 - Intraday Resistance


1.1185 - WS1


1.1240 - Weekly Pivot


Trading recommendations:


Traders should consider opening buy positions from the current market levels, with SL below the level of 1.1070 and TP above the level of 1.1182.


usdcad_h1.jpg


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