Technical analysis of GBP/USD for December 17, 2014

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Overview :



  • The GBP/USD pair movement will continue directly from the level of 1.5585, but the minor support has been set at the level of 1.5671. Moreover, this level was confirmed by bullish market yesterday. Additionally, the price of the GBP/USD pair has been showing an upward trend at the same price which represents the weekly pivot point. Therefore, the market will indicate the bullish opportunity at the level of 1.5671. Also, it should be noted that the weekly pivot point became the support yesterday. Accordingly, it will be a good sign to buy at 1.5671 (in the short term) with the first target of 1.5741 and further to 1.5786 in order to form a double top. Also, it might mean that the level of 1.5786 is coinciding with the 38.2% of Fibonacci retracement levels in the H1 chart. On the other hand, the stop loss should be placed below 1.5671 at the price of 1.5650.


Intraday technical levels :


Date:17/12/2014


Pair:GBP/USD



  • R3: 1.5991

  • R2: 1.5888

  • R1: 1.5818

  • PP: 1.5715 (the weekly pivot point was alreday set at the price of 1.5671)

  • S1: 1.5645

  • S2: 1.5542

  • S3: 1.5472


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EUR/NZD analysis for December 17, 2014

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Overview:


In our last analysis, EUR/NZD was trading upward. The price tested the level of 1.6158 in a volume below the average. Our Fibonacci retracement 38.2% at the price of 1.6020 has been held successfully, and it made price start with an upward movement. I have placed Fibonacci expansion to find potential resistance level and I got Fibonacci expansion 61.8% at the price of 1.6160. According to the 4H time frame, we can observe weak demand in the background. Since we got new swing high, I have plaved Fibonacci retracement to find potential support levels and I got Fibonacci retracement 38.2% at the price of 1.6035 and Fibonacci retracement 61.8% at the price of 1.5960. So, be careful when buying EUR/NZD at this stage since price rejected from our resistance level.


Daily Fibonacci pivot levels:


Resistance levels:


R1: 1.6105


R2: 1.6139


R3: 1.6194


Support levels:


S1: 1.5955


S2: 1.5961


S3: 1.5906


Trading recommendations: Be careful when buying the EUR/NZD pair since we got a rejection from our resistance level.


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Technical analysis of EUR/USD for December 17, 2014

eurusdh1.png

Overview :



  • The EUR/USD pair has broken a major support at the level of 1.2502. But in case the daily pivot point is at the 1.2446 level, then the market will indicate a bearish opportunity below this price. Additionally, it is now approaching it, therefore, it will probably start downside movement at this area and recover again. So the market will indicate a bearish opportunity at the price of 1.2440. In the long term, it should be noticed that we got a weekly pivot point of EUR/USD pair for December 15-19, 2014 at the level of 1.2400. Therefore, the market will probably indicate a bearish opportunity at the levels of 1.2440 or 1.2400 and the weekly pivot point will act as strong resistance. So, according to the previous events, the price is still below 1.2550 (the weekly resistance 1). Thenceforward, the area below 1.2440 looks for further downside with the first target at 1.2369 level in order to form a double bottom and continue towards 1.2307 to test to the first weekly support. However, if a break in 1.2569 takes place, then it will be a good area for placing the stop loss above the double top.


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Gold analysis for December 17, 2014

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Overview :


Since our last analysis, gold has been trading downward. The price tested and rejected from the level of 1,187.96. Our corrective Fibonacci expansion 161.8% at the price of 1.195.00 has been held successfully, which caused price to start with an upward movement. I placed Fibonacci retracement to find potential support levels and got Fibonacci retracement 61.8% at the price of 1,180.00. My advice is to look for buying opportunities near the lows (after retracement). According to the 1H time frame, we can observe selling climax and gold is not in absorption phase. So, selling gold at this stage looks risky, watch for potential buying oppoprtunities. According to the daily time frame, we got indecision bar.


Daily pivot Fibonacci points:


Resistance levels:


R1: 1,215.79


R2: 1,224.31


R3: 1,238.10


Support levels:


S1: 1,188.21


S2: 1,179.69


S3: 1,165.90


Trading recommendations: Watch for potential buying opportunities after retracement (buy on the lows).


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Intraday technical levels and trading recommendations on GBP/USD for December 17, 2014

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As depicted on the chart, the GBP/USD pair established a consolidation range above 1.5890 up to 1.6100 for almost 20 days before bearish breakout could take place early in November.


Daily fixation below 1.5870 led bearish pressure to the pair so that it reached the price level of 1.5600 where a new consolidation zone is being established above.


Last week, the GBP/USD pair found intraday DEMAND around 1.5580-1.5550 where many recent lows were previously established back in November.


The DAILY outlook favors the bullish scenario initially towards 1.5800 then 1.6100 provided that bulls keep trading above 1.5720 (which was bypassed earlier today).


On the long term, a triple-bottom reversal pattern may be established above 1.5580. It needs a constant daily fixation above 1.5700 (the upper limit of the current channel).


Another less probable scenario: a bearish flag pattern that waits for a bearish breakout below 1.5550 (similar to what happened back in October).


This scenario is now less probable as long as the daily candlesticks keep closing above 1.5700-1.5720.


gbpusd4h.jpg

The 4H chart reveals the recent consolidation movement maintained within the limits of the depicted channel. Recent bullish breakout took place earlier today.


The price zone of 1.5680-1.5710 is now acting as an intraday DEMAND zone. Bearish pullback towards this zone offers a valid BUY entry with SL as daily closure below 1.5650.


Target levels should be initially located around 1.5820.


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GBP/USD intraday technical levels and trading recommendations for December 17, 2014

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Overview:


The GBP/USD pair has been moving downward respecting the depicted bearish channel since mid-September when the ongoing channel was initiated. Many bearish impulses were previously initiated around 1.6450, 1.6170, and 1.5940 where the upper limit of the channel came to meet the pair.


The price zone of 1.5890-1.5870 constituted a transient daily support that paused the bearish movement for a few days. However, bears quickly managed to push lower.


Bullish fixation above 1.5890-1.5900 was essential to maintain the bullish scenario, however, bears have failed to do so. Instead, the market pushed towards the support level located around 1.5600 where the lower limit of the ongoing channel was previously located.


The GBP/USD pair looked quite oversold. Bullish correction was anticipated as the pair has tested a prominent WEEKLY support (price level of 1.5600) corresponding to multiple previous tops established back in May and June 2013. That is why the sideway movement is still taking place roughly between 1.5600 and 1.5780.


However, a break below the recent bottoms established around 1.5580-1.5540 terminates the current ranging movement, rendering the current consolidation range as a bearish flag pattern with projected target at 1.5310.


On the other hand, obvious bullish fixation above the price level of 1.5760 exposes the price level of 1.5880 for retesting. Note the current bearish rejection expressed today when the pair reached 1.5760 ( the upper limit of the current consolidation zone ).


Trade Recommendation:


Wait for bullish fixation above 1.5760 for a LONG entry with SL as daily closure below entry levels. TP should be located at 1.5800 and 1.5880.


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Technical analysis of USD/JPY for December 17, 2014

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Fundamental overview:
USD/JPY is expected to consolidate with bearish bias after hitting a one-month low of 115.56 on Tuesday as the market awaits the Federal Reserve interest rate decision ar 19:00 GMT: Fed could drop its pledge to hold rates steady for a "considerable time" taking a step towards raising short-term U.S. interest rates in the middle of the next year. USD/JPY is undermined by the flows to haven JPY and unwinding of JPY-funded carry trades amid increased risk aversion (VIX fear gauge rose 15.43% to 23.57, S&P 500 closed 0.85% lower at 1,972.74 overnight) as fears mount over the Russian economic collapse and its contagion on emerging markets. At the same time, a lower forecast of China HSBC flash manufacturing PMI (49.5) in December and drop in oil prices to a five-and-a-half-year lows on Tuesday - Nymex crude hit $53.60/bbl, its cheapest figure since May 6, 2009 - stoke concerns over slowing global economy. USD/JPY is also weighed by the Japanese export sales, weaker dollar sentiment (ICE spot dollar index last 87.94 versus 88.43 on early Tuesday), 1.6% on month drop in the U.S. Housing starts in November (versus forecast +2.9%), 5.2% decrease in the U.S. building permits (versus forecast -0.5%), Markit flash U.S. December manufacturing PMI of 53.7 (versus forecast 56.0) and by lower U.S. Treasury yields (10-year at 2.064% versus 2.116% on late Monday). But USD/JPY losses are tempered by the demand from Japan's import, the Bank of Japan's large-scale monetary easing policy and caution ahead of the Federal Reserve monetary decision.


Technical comment:
The daily chart is negative-biased as the MACD and stochastics are bearish, 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 118.40 and the second target at 119.10. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 115.50. A break of this target would push the pair further downward and one may expect the second target at 114.90. The pivot point is at 116.25.


Resistance levels:

118.40

119.10

119.45



Support levels:
115.50

114.90

114.65


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Technical analysis of USD/CHF for December 17, 2014

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Fundamental overview:
USD/CHF is expected to consolidate with bearish bias after hitting high an almost one-month low of 0.9552 on Tuesday as the market awaits the U.S. FOMC interest rate decision. USD/CHF is weighed by the weaker dollar sentiment, spillover from stronger euro sentiment on the franc and flows to haven CHF amid increased risk aversion. But USD/CHF losses are tempered by the franc sales on soft CHF/JPY cross and ultra-loose Swiss National Bank's monetary policy.


Technical comment:
The daily chart is negative-biased as the MACD and stochastics are bearish, 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 0.9675 and the second target at 0.9720. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.9550. A break of this target would push the pair further downward, and one may expect the second target at 0.9520. The pivot point is at 0.9585.


Resistance levels:

0.9675

0.9720

0.9750


Support levels:

0.9550

0.9520

0.95


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Technical analysis of NZD/USD for December 17, 2014

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Fundamental overview:
NZD/USD is expected to consolidate as the market awaits the U.S. FOMC interest rate decision. NZD sentiment is boosted by the 2.4% rise in Fonterra's GDT Price Index at the latest GlobalDairyTrade auction. NZD/USD is also supported by the weaker dollar sentiment, the kiwi demand on soft AUD/NZD cross and NZD-USD interest differential. But NZD/USD upside is limited by the kiwi sales on soft NZD/JPY cross amid increased investor risk aversion and contagion from weak Aussie.


Technical Comment:
The daily chart is mixed as the MACD histogram bars turned positive, but stochastics is neutral.


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 the pivot point. Short positions are recommended with the first target at 0.7695. A break of this target will move the pair further downward to 0.7660. The pivot point stands at 0.7775. In case the price moves in the opposite direction and bounces back from the support level, 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 0.7810 and the second target at 0.7835.


Resistance levels:

0.7810

0.7835

0.7870



Support levels:
0.7695

0.7660

0.7625


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Technical analysis of GBP/JPY for December 17, 2014

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Fundamental overview:
GBP/JPY is expected to consolidate with bearish bias as the market awaits the Federal Reserve interest rate decision. GBP/JPY is undermined by the increased risk aversion and Japan's export sales. But GBP/JPY losses are tempered by the demand from the Japanese import.


Technical comment:
The daily chart is negative-biased as the MACD and stochastics are bearish, 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 185 and the second target at 186.30. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 182.05. A break of this target would push the pair further downwards and one may expect the second target at 181.05. The pivot point is at 183.


Resistance levels:

185

186.30

187.10


Support levels:

182.05

181.05

180


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#USDX technical analysis for December 17, 2014

The Dollar index looks weak and ready to push lower as the short-term trend is bearish with lower lows and lower highs. Today's FED meeting will be crucial for the Dollar next movement. The FED announcements expected later today should provide us with enough information on what to expect next with the Dollar.


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Red line = resistance


Blue line = support


The Dollar index is below the Ichimoku cloud and below the red line resistance. Although the short-term support at 87.90 was broken, the index has managed to move back above 88. Short-term trend is bearish as price is making lower lows and lower highs since early December. It could be the start of a new downward move as part of a correction of the rise from 79.75.


usdxd.jpg

Red line = weekly support


The Dollar index in the weekly chart shows that trend is unclear. Support was briefly broken yesterday but the index closed above it yesterday. The best strategy is to remain neutral and wait for the Fed announcements today and then take action. The Dollar index is at an important junction that would justify a trend reversal and Dollar weakness.


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Gold technical analysis for December 17, 2014

Yesterday gold price was very volatile and made an erratic move by breaking above $1,220 for a brief moment and then back to new short-term lows below $1,193. This is an indication that we should remain neutral as long as price is inside this consolidation area.


gold.jpg

Blue line = resistance


Red line = support


Gold price is trading inside a contracting triangle pattern. Upper boundaries are at $1,220 and lower boundaries are at $1,186. These are two important price levels that traders will need to keep in mind for today. I prefer to stay neutral and wait for a level to break before taking any action.


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Red line = resistance


Blue line = support


Gold price is inside the Ichimoku cloud and inside the triangle pattern as I explained above. The Ichimoku indicators also point to the fact that there is a lot of indecision on the market and no clear trend. The best strategy is to wait for a breakout before opening a position.


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Technical analysis of EUR/JPY for December 17, 2014

General overview for 17/12/12014 06:40 CET


The corrective cycle looks to be completed as the last wave Y brown has made a low at the level of 144.96, just below the important weekly support at the level of 145.70. The first stage of the impulsive rebound can be seen, but the confirmation is needed to support this view. So far, the market tried to rally upward, but it couldn't break out of the neutral zone and got back to the intraday range. To follow the impulsive wave progression, the price must now break out above the intraday resistance at the level of 147.01 and then rally above the dynamic resistance provided by the golden trend line. If this scenario does not happen, it means the further slide down is more than possible.


Support/Resistance:


144.46 - WS2


144.96 - Intraday Support


145.70 - Technical Support


145.86 - WS1


147.01 - Intraday Resistance


147.82 - Weekly Pivot


148.24 - Intraday Resistance


Trading recommendations:


The key intraday resistance is at the level of 147.01 and traders should consider opening buy stop orders from this level, with TP at the level of 148.22 and tight (15-20 pips) SL.


eurjpy_h1.jpg


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Technical analysis of USD/CAD for December 17, 2014

General overview for 17/12/12014 06:20 CET


The corrective cycle is still in progress and first three waves look to be completed. Nevertheless, please notice, that this might be only the beginning of a larger correction in wave 4 purple, because this simple three waves down might be just a green wave of some other corrective structure. To confirm the corrective cycle is completed, the market must break above the intraday resistance at the level of 1.1672. Moreover, please notice the alternative count that still indicates a more impulsive wave progression to the upside that is valid as long as the level of 1.1590 is not violated.


Support/Resistance:


1.1727 - WR2


1.1672 - Intraday Resistance


1.1666 - WR1


1.1590 - Intraday Support


1.1531 - Weekly Pivot


Trading recommendations:


Not much has changed since yesterday as the market has made a very limited move: the bias is still bullish as the larger time frame trends are still bullish. So is a near and mid-term outlook for this pair. Thus, buying the dips is the way to trade this pair. SL for swing traders should be placed below the level of 1.1590, TP should be placed at the level of 1.1727.


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Elliott wave analysis of EUR/NZD for December 17 - 2014

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Technical summary:


It finally looks as, we will get the close above the resistance line opening up the upside for a strong rally towards 1.6273 and 1.6446 on the way higher to 1.7125. In the short run, we would like to see the former resistance line near 1.6100 acting as support for the next rally higher to 1.6273 and above.


Trading recommendation:


We are long in EUR from 1.5915 with stop placed at 1.5980. If you are not long in EUR yet, the buy near 1.6100 with the same stop at 1.5980.


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Elliott wave analysis of EUR/JPY for December 17 - 2014

2014-12-17-EURJPY-8H.png


Technical summary:


The decline from 149.78 is in no way as pretty as we would have liked, but we see no reason to change our view of a continuation lower to 144.77 and likely even 143.39 before a bottom could be in place. In the short term, we would like minor resistance at 147.03 to protect the upside for the next decline towards 144.77, but only a break above 148.23 will invalidate the bearish view and call for a rally to new highs.


Trading recommendation:


We will stay neutral for now, but look for possible buying opportunities.


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Daily analysis of USDX for December 17, 2014

On the H4 chart, the USDX is trying to form a bearish pattern above the support level of 87.93. Please, be aware that this instrument has not been strong enough to run a bearish consolidation below the 200-day moving average. So, the USDX is expected to try climbing to the resistance level of 88.19. The MACD indicator remains in the negative territory.


H4chart's resistance levels: 88.19 / 88.49


H4chart's support levels: 87.93 / 87.35


USDXH4.png

The USDX remains below the resistance level of 88.15, because this instrument is trying to strengthen the bearish bias in the short term. However, the USDX has formed a fractal at the support level of 87.86. Thus, this instrument is likely to make a rebound at the current levels and up to the level of 88.15. The MACD indicator is entering the neutral territory.


H1 chart's resistance levels: 88.15 / 88.43


H1 chart's support levels: 87.86 / 87.58


USDXH1.png


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 88.15, take profit is at 88.43, and stop loss is at 87.87.


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Daily analysis of GBP/USD for December 17, 2014

The GBP/USD pair had a bullish rally above the support level of 1.5698. This pair still finds resistance at the 200-day moving average on the H4 chart. If the GBP/USD pair manages to make a breakout at the level of 1.5825, it is expected to rise to the level of 1.5874 in the short term, although the GBP/USD could fall back below the 1.5698 level.


H4 chart's resistance levels: 1.5825 / 1.5874


H4chart's support levels: 1.5698 / 1.5589


GBPUSDH4.png


On the H1 chart, the GBP/USD pair is trying to consolidate above the level of 1.5739, but this pair has found strong resistance in that area. So, the GBP/USD pair is likely to fall to the support level of 1.5686, where the 200-day moving average is located. If GBP/USD manages to make a breakout at that level, the next target would be the 1.5632 level. The MACD indicator remains in the negative territory.


H1 chart's resistance levels: 1.5739 / 1.5810


H1 chart's support levels: 1.5686 / 1.5632


GBPUSDH1.png


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 1.5686, take profit is at 1.5632, and stop loss is at 1.5740.


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Technical analysis of EUR/USD for December 17, 2014

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When the European market opens, some economic news will be released such as Final Core CPI y/y and Final CPI y/y. The US will also publish a bunch of economic data such as the Federal Funds Rate, Crude Oil Inventories, Current Account, Core CPI m/m, and CPI m/m. So, amid the reports, EUR/USD will move low to medium during the Asian to European market open and medium to high volatility during the US seassion.


TODAY TECHNICAL LEVELS:


Breakout BUY Level: 1.2565.


Strong Resistance:1.2557.


Original Resistance: 1.2545.


Inner Sell Area: 1.2533.


Target Inner Area: 1.2503.


Inner Buy Area: 1.2473.


Original Support: 1.2461.


Strong Support: 1.2449.


Breakout SELL Level: 1.2441.


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 December 17, 2014

!USDJPY.jpg


In Asia, Japan will release the Trade Balance. The US will publish a bunch of economic data such as Federal Funds Rate, Crude Oil Inventories, Current Account, Core CPI m/m, and CPI m/m. So, there is a big probability the USD/JPY pair will move with low to medium volatility during the Asian session, but with medium to high volatility during the US session.


TODAY TECHNICAL LEVELS:


Resistance. 3: 117.22.


Resistance. 2: 117.00.


Resistance. 1: 116.77.


Support. 1: 116.49.


Support. 2: 116.26.


Support. 3: 116.02.


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 GBP/CHF for December 17, 2014


Technical outlook and chart setups:


The GBP/CHF pair has stopped us out at 1.5000, and is trading above 1.5100 levels at the moment. Please note that the pair has bounced off the fibonacci 0.786 support of the rally between 1.4950 and 1.5350/60 levels. High probability still remains of an extended rally towards 1.5520/30 levels. Aggressive trade setups would be to go on initiating long positions with risk below 1.4950, while a conservative approach would be to remain flat for now. Immediate support is seen at 1.4950 and lower while resistance is seen at 1.5250, followed by 1.5350/60, 1.5450/75 and higher up.


Trading recommendations:


Remain flat for now. Agressive setup is to initiate long positions, stop at 1.4950, the target is open.


Good luck!


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

Technical analysis of Silver for December 17, 2014


Technical outlook and chart setups:


Silver drops to the expected levels of $15.50/60 now, as discussed earlier. The metal should be bought at market price, $15.80/85 with risk below $14.50 levels. Immediate support is seen at $14,50 and lower while resistance is seen at $17.40/50, followed by $17.80/18.00 and higher respectively. The metal might have just carved out a right shoulder of the potential inverted head and shoulder reversal into cards now. Bulls should remain in total control till prices stay above the $14.50 interim support now. Only a break below should be a concern.


Trading recommendations:


Initiate long positions now, stop below $14.50, the target is open.


Good luck!


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

GBP/USD intraday technical levels and trading recommendations for December 16, 2014

gbpdaiiyll.jpggbp4h.jpg

Overview:


The GBP/USD pair has been moving downward respecting the depicted bearish channel since mid-September when the ongoing channel was initiated. Many bearish impulses were previously initiated around 1.6450, 1.6170, and 1.5940 where the upper limit of the channel came to meet the pair.


The price zone of 1.5890-1.5870 constituted a transient daily support that paused the bearish movement for a few days. However, bears quickly managed to push lower.


Bullish fixation above 1.5890-1.5900 was essential to maintain the bullish scenario, however, bears have failed to do so. Instead, the market pushed towards the support level located around 1.5600 where the lower limit of the ongoing channel was previously located.


The GBP/USD pair looked quite oversold. Bullish correction was anticipated as the pair has tested a prominent WEEKLY support (price level of 1.5600) corresponding to multiple previous tops established back in May and June 2013. That is why the sideway movement is still taking place roughly between 1.5600 and 1.5780.


However, a break below the recent bottoms established around 1.5580-1.5540 terminates the current ranging movement, rendering the current consolidation range as a bearish flag pattern with projected target at 1.5310.


On the other hand, bullish fixation above 1.5760 exposes price level of 1.5880 for retesting.


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

USD/CAD intraday technical levels and trading recommendations for December 16, 2014

caddaily.jpg


Overview:


Three months ago, the price levels around 1.0620 (the lower limit of the depicted chart) initiated the current strong uptrend.


The USD/CAD pair has been trending upward within the depicted daily channel. Successive higher highs and lows are being established within the channel's limits.


As anticipated, the bullish breakout above 1.1440 allowed bulls to push towards 1.1650 where the upper limit of the bullish channel is located as well as 61.8% Fibonacci level.


During the past few weeks, the USD/CAD pair established a recent SUPPORT zone around 1.1430-1.1330, breakout above which allowed bulls to reach new highs around 1.1495, 1.1540 and 1.1600 which got hit today.


The price zone of 1.1430-1.1460 remains the nearest SUPPORT zone to the current prices. Persistence above it signaled the bullish tendency towards 1.1660-1.1690 (significant RESISTANCE zone).


The price level of 1.1650 (which was our bullish final target) roughly corresponds to the upper limit of the bullish channel as well as 61.8% Fibonacci level. Long positions should be left now.


Trading recommendations:


Conservative traders should look for SHORT positions around the price level of 1.1650. SL should be located above 1.1700.


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

Intraday technical levels and trading recommendations on EUR/USD for December 16, 2014

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The price zone of 1.2880-1.2900 (corresponding to the upper limit of the previous broken channel) was targeted month ago. However, bearish pressure was applied earlier around 1.2800-1.2840 where the depicted head and shoulders reversal pattern was established.


A bearish breakout off the bullish channel took place soon, thus confirming a flag continuation pattern. Bearish projected target already reached the level around 1.2490.


Daily fixation below 1.2490-1.2500 (the origin of the previous bullish swing expressed one month ago) extends the bearish targets towards the price level of 1.2200.


After bears could fixate below 1.2360, the EUR/USD pair has shown bullish recovery again above it due to the lack of bearish pressure below 1.2255.


The price level of 1.2200 remains the projected target of the current bearish flag pattern as long as 1.2500 remains defended by the EUR/USD bears.


Until then, the EUR/USD pair remains trapped within the current DAILY consolidation zone of 1.2360 - 1.2500. Bullish breakout is taking place today. Daily closure above price level of 1.2500 directly exposes 1.2620 for retesting.


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During last week and this one also, bulls spiked up to 1.2496 twice. However, the market came back to trade below 1.2400 shortly after.


Yesterday, the market applied quite significant bullish pressure at retesting of price level of 1.2410 where the lower limit of the depicted channel is located.


As anticipated, 4H closure above the price zone of 1.2460-1.2480 (Wednesday's daily high) invalidated the bearish scenario temporarily exposing the price levels of 1.2580-1.2600 for retesting.


Trade recommendations:


Intraday traders can wait for a bearish pull-back towards price levels around 1.2460 for a LONG position.


Stop Loss should be located below 50% Fibonacci level around 1.2400.


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

Intraday technical levels and trading recommendations on GBP/USD for December 16, 2014

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As depicted on the chart, the GBP/USD pair established a consolidation range above 1.5890 up to 1.6100 for almost 20 days before bearish breakout could take place early in November.


Daily fixation below 1.5870 led bearish pressure to the pair so that it reached the price level of 1.5600 where a new consolidation zone is being established above.


Last week, the GBP/USD pair found intraday DEMAND around 1.5580-1.5550 where many recent lows were previously established back in November.


The DAILY outlook favors the bullish scenario initially towards 1.5800 then 1.6100 provided that bulls keep trading above 1.5720 (which was bypassed earlier today).


The market may find resistance around 1.5750-1.5800 (the upper limit of the current price-range) and it may give some time for more sideway movement.


On the long term, a triple-bottom reversal pattern may be established above 1.5580.


Another less probable scenario: a bearish flag pattern that waits for bearish breakout below 1.5550 (similar to what happened back in October). This is now excluded as long as the daily candlestick closes above 1.5750.


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The 4H chart reveals the recent consolidation movement maintained within the limits of the depicted channel. Recent bullish breakout took place earlier today.


The price zone of 1.5680-1.5710 is now acting as an intraday DEMAND zone. Bearish pullback towards this zone remains a valid BUY entry with SL as daily closure below 1.5650.


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