Daily analysis of silver for December 23, 2014

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Overview


On the today's H4 chart, yesterday the metal failed to break the support level of 15.70 to bounce again from it and trade between the support level of 15.70 and the resistance level of 16.00. Currently, the metal is retesting the resistance level of 16.00 again, therefore, we should wait for closing above to continue its upward trend move. Given that the metal has managed to close H4 on the above today, it gives us a good opportunity for more bullish signals above it with the first target few pips below the resistance level of 16.50, then the second target of 16.75 after breaking this resistance level. But as long as silver is trading below 15.70, waiting would be prefered, otherwise, it cancels the bullish move scenario.


Resistance and support levels: R3 (16.75), R2 (16.50), R1 (16.00), S1 (15.70), S2 (15.40), S3 (15.00).


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Daily analysis of GBP/JPY for December 23, 2014

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Overview


Proceeding from the today's H4 chart, the pair is still trading between the support level of 186.70 and the resistance level of 187.70 and currently the pair fails again to break the resistance level. If the pair breaks it to take an upward movement, it may continue its bullish trend and we will get a good opportunity to buy again above the resistance level of 187.70 untill the H4 closure above the resistance level of 188.50 as a target level. Then we should wait for breaking this resistance level to continue the upward move and open the way towards the resistance level of 189.30. On the other hand, if the pair fails to break the resistance level of 187.70 and bounces from it, it may take a downward trend, which will enable the support level of 186.70 again. Therefore, we suggest waiting for the next closing before making a decision.


Resistance and support levels: R3 (189.30), R2 (188.50), R1 (187.70), S1 (186.70), S2 (185.80), S3 (185.00).


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Weekly technical levels of EUR/USD for December 23-26, 2014

General idea about the pivot points:



  • R3 and S3 are considered to be clear indicators of the maximum range of extreme volatility, though it is possible to pass them through. Pivot lines work well on sideway markets, as the prices are most likely to be located between the R1 and S1 lines. Within a strong trend, the price is expected to be lower than the pivot point line and continue its movement. If the breaking news released affects the market, the price is likely to go straight through R1 or S1 and even reach R2 and R3 or S2 and S3.


The weekly technical levels of EUR/USD pair.


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Review :



  • If there is no significant news to influence, the market price will be moving from pivot point to support 1 (1.2108). But if there is significant news, the market price may go down through resistance 1 (1.2108) and reach support 2 (1.1990) or weekly pivot point (1.2339) and even support 3 (1.5759) in the long term for the next year.

  • The double top of EUR/USD pair will set at the level of 1.2353 (which represents the ratio of 38.2% Fibonacci retracement levels).

  • The minor support is going to set at 1.2145. And this level is going to represent a new double bottom today.

  • The major support has already set at the price of 1.2108.

  • The price hit the weekly pivot point, resistance 1 and support 1 last week, because of the series of relatively equal highs and equal lows.

  • We expect a new range of 286 pips this week.

  • It should be noted that if the trend is downward, then the strength of the currency will be defined as follows: EUR is in a downtrend and USD is in a uptrend.



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EUR/NZD analysis for December 23, 2014

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Overview:


In our last analysis, EUR/NZD was trading downward.The price tested the level of 1.5750 in an average volume. According to the daily time frame, we got weak demand, which casued price to continue with downward movement. I placed Fibonacci expansion to find potential support levels and got Fibonacci expansion 161.8% at the price of 1.5585. According to the H4 time frame, we can observe a lack of supply in an average volume and lack of demand in the background. My advice is to watch for potenatial selling opportunities after retracement.


Daily Fibonacci pivot levels:


Resistance levels:


R1: 1.5852


R2: 1.5873


R3: 1.5906


Support levels:


S1: 1.5786


S2: 1.5765


S3: 1.5732


Trading recommendations: Be careful when buying the EUR/NZD pair since we have a lack of demand around the level of 1.5840.


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Weekly technical levels of GBP/USD for December 23-26, 2014

The weekly technical levels of GBP/USD pair.


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Trading recommandations :



  • According to the previous events, the price of GBP/USD pair is still trapped between the levels of 1.5651 and 1.5515.

  • The level of 1.5651 represents the weekly pivot point and the minor resistance is set at 1.5602.

  • Therefore, sell below the level of 1.5602 in the short term with the first target of 1.5518 which represents the weekly support 1. If the price can break the weekly support 1, then it might resume to 1.5466 in order to resume new double bottom.



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Gold analysis for December 23, 2014

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Overview :


Since our last analysis, gold has been trading downward. The price has tested the level of 1,170.63 in a ultra high volume (selling climax). I placed Fibonacci retracement to find potential support levels and got Fibonacci retracement 61.8% at the price of 1.172.00 (currently on the test). According to the H4 time frame, we can observe selling climax in the background, which is a sign that selling gold at this stage looks very risky. My advice is to watch for potential buying opportunities near the lows. Any larger demand in a high volume may confirm further bullish phase. According to the daily time frame, we can observe supply in a volume below the average.


Daily pivot Fibonacci points:


Resistance levels:


R1: 1,197.27


R2: 1,205.03


R3: 1,217.60


Support levels:


S1: 1,172.13


S2: 1,164.37


S3: 1,151.80


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


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Technical analysis of EUR/JPY for December 23, 2014

General overview for 23/12/2014 12:25 CET


The yesterday's intraday resistance at the level of 147.02 has been marginally broken, but so far there is no follow through with this breakout and the market has made an intraday double top. This pattern might suggest some decline now as the price might be heading to test the golden trend line and the weekly pivot at the level of 146.34. Nevertheless, there are some first indications that the current wave development is trying to break out to the upside, but, first, the important resistance at the level of 147.11 must be violated in a clear, impulsive fashion.


Support/Resistance:


149.77 - Swing High


149.63 - WR2


148.23 - Bullish Zone Level


147.74 - WR1


147.11 - Intraday Resistance


146.34 - Weekly Pivot


145.70 - Technical Support


144.98 - Intraday Support


Trading recommendations:


As long as the golden trend line is not broken the bias is bullish and traders should consider opening buy orders only. Still the SL orders should be placed below the 146.34 level and TP orders should be placed at the level of 148.23.


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Technical analysis of USD/CAD for December 23, 2014

General overview for 23/12/2014 12:05 CET


The wave progression is developing, as it was anticipated yesterday, and with very limited market moves the price stays inside the trading range. Current wave progression indicates a possible triangle formation in wave Y brown and an upside breakout above the level of 1.1672 to complete wave 5 purple. The first target projection for this wave is at the level of 1.1733. Only a breakout below the level of 1.1500 would invalidate this scenario. Please notice that the mid- and longer-term bias are bullish, and new highs are expected.


Support/ Resistance:


1.1733 - WR2


1.1672 - WR1


1.1645 - Intraday Resistance


1.1610 - Weekly Pivot


1.1558 - Intraday Support


1.1546 - WS1


1.1500 - Technical Support


Trading recommendations:


The corrective cycle in wave Y brown has not been completed yet, but traders should consider opening only buy orders from the current price levels. SL orders, like yesterday, should be placed below the level of 1.1558 and TP at the level of 1.1672 with a possible extension upside to the level of 1.1733.


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Daily analysis of USDX for December 23, 2014

The USDX has made a successful breakout at the 89.55 level, so that the next target on the H4 chart would be the resistance level of 90.25, at least in the medium term. However, the USDX could try to consolidate below the 89.55 level and down to the support level of 89.05, although the field is getting ready for the USDX rise to the level of 90.25 on the H4 chart.


H4chart's resistance levels: 90.25 / 91.25


H4chart's support levels: 89.55 / 89.05


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On the H1 chart, the USDX has formed two fractals at the resistance level of 89.76, which will increase strength in that area so that this instrument falls to the support level of 89.51. However, the bearish retracement could extend to the level of 89.25 in the short term as long as the USDX makes a breakout at the level of 89.51. The MACD indicator is moving into the negative territory.


H1 chart's resistance levels: 89.76 / 90.01


H1 chart's support levels: 89.51 / 89.25


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 89.76, take profit is at 90.01, and stop loss is at 89.51.


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Daily analysis of GBP/USD for December 23, 2014

On the H4 chart, the GBP/USD pair again found support at the level of 1.5589, since it had formed several fractals below the resistance level of 1.5698. Most strategists share the view that GBP/USD will continue strengthening the bearish bias to conduct a breakout at that support level with the formation of a lower low pattern and fall to the level of 1.5541.


H4chart's resistance levels: 1.5698 / 1.5811


H4chart's support levels: 1.5589 / 1.5541


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During the session yesterday, the GBP/USD pair found strong resistance at the 1.5632 level. Now, this pair is trying to consolidate below the 1.5590 level to drop to the support level of 1.5534 in the medium term. For now, the GBP/USD pair has high chances of making a bearish consolidation below the 1.5534 level.


H1 chart's resistance levels: 1.5632 / 1.5686


H1 chart's support levels: 1.5590 / 1.5534


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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 1.5590, take profit is at 1.5534, and stop loss is at 1.5650.


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

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Technical summary:


We are still looking for an obvious sign, that the corrective decline from 1.6207 is over and a new rally towards at least 1.6163 is unfolding. However, a break above 1.6163 should open up for a further move much higher. In the short term, a break above minor resistance at 1.5881 will be the first good indication, that the correction ended at 1.5724 and the expected rally is developing.


Trading recommendation:


We missed our buying opportunity near 1.5703, but will buy EUR upon a break above 1.5881 with stop placed at 1.5700.


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

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Technical summary:


The break above 147.03 suggests that an x-wave higher to nearly 148.23, but not above this resistance, is unfolding. Once we get close to 148.23, we should look for signs, that the next zig-zag correction lower is unfolding towards 142.06. However, if resistance at 148.23 is broken, then the correction unfolding shifts to a flat correction calling for a return to 149.78 before lower in wave c.


Trading recommendation:


Our stop+reverse at 147.05 was hit and we are now long in EUR from 147.05 and will place stop at 145.90 and take profit at 148.05


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Technical analysis of USD/JPY for December 23, 2014

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Fundamental overview:
USD/JPY is expected to consolidate with a bullish bias after hitting a two-week high 120.19 this morning. Liquidity is thin as financial markets in Japan are shut Tuesday for a public holiday and global trading volumes have shrunk ahead of the Christmas holiday period. USD/JPY is supported by a smaller safe-haven appeal of the yen and yen-funded carry trades as positive risk sentiment prevails (VIX fear gauge eased 7.52% to 15.25, S&P 500 closed up 0.38% at 2,078.54 overnight) following last week's Federal Reserve message expressing confidence in the U.S. economy but pledging to be "patient" on raising interest rates. USD/JPY is also supported by the positive dollar sentiment (ICE spot dollar index hit eight-and-a-half year high 89.794 overnight; last 89.742 versus 89.650 early Monday) as expectations that the Fed would raise interest rates sooner than other central banks and rise in Chicago Fed National Activity Index to +0.73 in November from +0.31 in October overshadowed a bigger-than-expected 6.1% drop in U.S. November existing-home sales (versus forecast -1.1%); sell-yen orders from Japan's importers as well as Bank of Japan's large-scale monetary easing policy. But USD/JPY gains are tempered by the buy-yen orders from Japan's exporters. Slew of U.S.


Technical comment:
Daily chart mixed as MACD bearish but stochastics bullish, five-day moving average rising above 15-day moving average, bullish parabolic stop-and-reverse signal hit Monday.


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 120.80 and the second target at 121.20. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 119.10. A break of this target would push the pair further downward and one may expect the second target at 118.40. The pivot point is at 119.65.


Resistance levels:

120.80

121.20

121.50



Support levels:

119.10

118.40
117.75


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Technical analysis of EUR/USD for December 23, 2014

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When the European market opens, some economic news will be released such as Belgian NBB Business Climate, Italian Retail Sales m/m, and French Consumer Spending m/m. Besides, the US will release a big number of economic reports such as the Richmond Manufacturing Index, Personal Income m/m, Personal Spending m/m, Core PCE Price Index m/m, New Home Sales, Revised UoM Inflation Expectations, Revised UoM Consumer Sentiment, HPI m/m, Final GDP Price Index q/q, Durable Goods Orders m/m, Final GDP q/q, and Core Durable Goods Orders m/m. So, amid the reports, EUR/USD will move with low to medium volatility during this session.


TODAY TECHNICAL LEVELS:


Breakout BUY Level: 1.2287.


Strong Resistance:1.2280.


Original Resistance: 1.2268.


Inner Sell Area: 1.2256.


Target Inner Area: 1.2227.


Inner Buy Area: 1.2198.


Original Support: 1.2186.


Strong Support: 1.2174.


Breakout SELL Level: 1.2167.


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/CHF for December 23, 2014

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Fundamental overview:
USD/CHF is expected to consolidate with a bullish bias after hitting a two-year high at 0.9850 on Monday. It is supported by the positive dollar sentiment (ICE spot dollar index hit eight-and-a-half year high 89.794 overnight; last 89.742 versus 89.650 early Monday) as expectations that the Fed would raise interest rates sooner than other central banks and rise in Chicago Fed National Activity Index to +0.73 in November from +0.31 in October overshadowed a bigger-than-expected 6.1% drop in U.S. November existing-home sales (versus forecast -1.1%). Besides, Swiss National Bank announced on Thursday it would charge a negative interest rate on deposits from Jan. 22. But USD/CHF gains are tempered by the franc demand on buoyant CHF/JPY cross.


Technical comment:
Daily chart is positive-biased as MACD and stochastics are bullish five- and 15-day moving averages are 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 0.9890 and the second target at 0.9940. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.9715. A break of this target would push the pair further downward, and one may expect the second target at 0.9660. The pivot point is at 0.9780.


Resistance levels:

0.9890

0.9915

0.9940


Support levels:

0.9715

0.9660

0.9605


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Technical analysis of USD/JPY for December 23, 2014

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In Asia, Japan will not release any economic data. However, the US will release a bunch of economic data such as Richmond Manufacturing Index, Personal Income m/m, Personal Spending m/m, Core PCE Price Index m/m, New Home Sales, Revised UoM Inflation Expectations, Revised UoM Consumer Sentiment, HPI m/m, Final GDP Price Index q/q, Durable Goods Orders m/m, Final GDP q/q, and Core Durable Goods Orders m/m. So, there is a big probability the USD/JPY pair will move with low volatility during the Asian session, but with low to medium volatility during the US session.


TODAY TECHNICAL LEVELS:


Resistance. 3: 120.69.


Resistance. 2: 120.46.


Resistance. 1: 120.22.


Support. 1: 119.93.


Support. 2: 119.69.


Support. 3: 119.46.


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 NZD/USD for December 23, 2014

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Fundamental overview:
NZD/USD is expected to trade in a lower range. It is undermined by the positive dollar sentiment and soft commodity prices. But Kiwi sentiment are soothed by the narrower-than-expected New Zealand November trade deficit of NZ$213 million (versus forecast NZ$550 million deficit). NZD/USD losses are also tempered by the Kiwi demand on buoyant NZD/JPY cross amid the positive risk sentiment as well as NZD-USD interest differential.


Technical Comment:
Daily chart is mixed as five and 15-day moving averages are declining, but MACD and stochastics are 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 0.7710. A break of this target will move the pair further downward to 0.7685. The pivot point stands at 0.7770. 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 0.7795 and the second target at 0.7835.


Resistance levels:

0.7795

0.7835

0.7870



Support levels:


0.7710

0.7685

0.7660


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Technical analysis of GBP/JPY for December 23, 2014

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Fundamental overview:
GBP/JPY is expected to consolidate with a bullish bias. GBP/JPY is supported by the positive risk sentiment. But GBP/JPY gains are tempered by the soft GBP/USD undertone.


Technical comment:
Daily chart is mixed as MACD isbearish, but stochastics is bullish at oversold levels.


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 187.70 and the second target at 188.45. In an alternative scenario, if the price moves below its pivot points, short posisitions are recommended with the first target at 185.85. A break of this target would push the pair further downward and one may expect the second target at 185.20. The pivot point is at 186.45.


Resistance levels:

187.70

188.45

189.35


Support levels:

185.85

185.20

184.75


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Daily analysis of major pairs for December 23, 2014

EUR/USD: This pair has continued its downward journey and it is close to the support line at 1.2200 (being below the resistance line at 1.2250). A break below that line would proffer an opportunity to target another support line at 1.2150, which is a real target for this week.


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USD/CHF: This pair has continued its upwards journey and it is close to the resistance level at 0.9850. A break above that level would proffer an opportunity to target another resistance level at 0.9900, which is the ultimate target for this week.


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GBP/USD: The Cable traded downwards on Monday in the context of the downtrend. The price is supposed to continue trending further downwards, reaching the accumulation territory at 1.5550. There may be an initial challenge at that accumulation territory, but with further strength in the Greenback, it could be breached to the downside.


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USD/JPY: This currency trading instrument continues its slow and steady journey upwards. The supply level at 120.00 is now under siege and with more effort from bulls, the price may go above that supply level, going further upwards. Basically, the next target is located at the supply level at 120.50.


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EUR/JPY: The EUR/JPY pair is still making attempts to go further bullish – though the attempt is being frustrated now and then. It would be OK to wait for a more pronounced directional movement before a position is taken. A break above the supply zone at 147.50 would strengthen the bullish outlook, while a break below the demand zone at 145.50 would strengthen the bearish outlook.


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#USDX Technical analysis for December 23, 2014

The Dollar index remains in an uptrend and has reached new highs as expected. Last week gave the bullish signal to start a new upward move. The Dollar index is making higher highs and higher lows.


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Green line = support


The Dollar index remains in a fully bullish trend according to the Ichimoku indicators. 89.40 is short-term support. If broken, we could see a pull back towards the kijun-sen or the cloud itself at 88.60-88.70 area.


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Nothing new to add regarding the weekly chart. The strong upward reversal from last week was a clear message for dollar bears not to bet against it. The uptrend is very strong and the bullish flag target is expected to be achieved by the year end if not exceeded. I remain fully bullish for the Dollar.


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Gold Technical analysis for December 23, 2014

Gold price has broken the neckline and has given a short-term sell signal. The target for the Head and Shoulders pattern I mentioned yesterday is the recent lows at $1,140-30. I'm bearish for Gold. Gold is at a short-term downtrend and in danger of starting a new downward move that could bring the price near $1,050.


goldh4.jpg

Green line = support


Red line = resistance


Blue horizontal line = Head and shoulders neckline


Gold price broke below the neckline today. This implies that the Head and Shoulder target should be reached shortly. This target is at $1,130. Gold is below the short-term Ichimoku cloud. In the context that the upward sloping green line is broken, we should expect more selling pressures for Gold price.


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The weekly chart has started the week with a bearish note. Breaking below the kijun-sen support is not a good sign. Closing this week below it, considering the fact that we remain below the weekly Ichimoku cloud, it implies that we should expect new lows.


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Technical analysis of USD/JPY for December 22, 2014

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Fundamental overview:
USD/JPY is expected to consolidate with bullish bias after hitting an eight-day high 119.66 this morning. Trading volumes are light as many market participants move to sidelines ahead of Christmas and New Year holidays. USD/JPY is supported by the yen-funded carry trades as positive risk sentiment prevailed (VIX fear gauge eased 1.9% to 16.49, S&P 500 closed up 0.46% at 2,070.65 on Friday) after the Federal Reserve System on Wednesday expressed confidence in the U.S. economy but pledged to be "patient" on raising interest rates. USD/JPY is also supported by the positive dollar sentiment (ICE spot dollar index hit eight-and-a-half-year high 89.654 on Friday, last 89.650 versus 89.210 on early Friday) amid expectations that the U.S. economy would outperform other major economies and that the Fed would raise interest rates sooner than other central banks, the demand from Japan's importers and the Bank of Japan's large-scale monetary easing policy. But USD/JPY gains are tempered by the Japanese export sales and positions adjustment ahead of Japan's public holiday on Tuesday.


Technical comment:
The daily chart is mixed as the MACD is bearish, but stochastics is in 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 120.25 and the second target at 120.80. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 118.35. A break of this target would push the pair further downward and one may expect the second target at 117.75. The pivot point is at 118.35.


Resistance levels:

120.25

120.80

121.10



Support levels:

118.35
117.75

117


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USD/CAD intraday technical levels and trading recommendations for December 22, 2014

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Overview:


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


During the past few weeks, the USD/CAD pair established a temporary consolidation zone between 1.1430-1.1330 and recently around 1.1480, the bullish breakout above which allowed bulls to reach new highs around 1.1540 and 1.1670.


The price zone of 1.1430-1.1460 remains the nearest SUPPORT zone for the current prices. It corresponds with the lower limit of the daily channel as well as the previous high that goes back to November.


Persistence above this zone 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 corresponded with the upper limit of the bullish channel as well as 61.8% Fibonacci level. Long positions should have been left already.


Trading recommendations:


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


Conservative traders should be looking for a pull-back towards 1.1440 for a LONG position. SL should be set as daily closure below 1.1400.


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GBP/USD intraday technical levels and trading recommendations for December 22, 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.


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.


Failure of the market to defend the price zone of 1.5890-1.5900 allowed bears to push towards the support level located around 1.5600.


The GBP/USD pair looked quite oversold after such a long bearish swing off 1.6500. That is why bullish correction was anticipated around 1.5600 as it is a prominent WEEKLY support corresponding to multiple previous tops established back in May and June 2013. That is why the market meets prominent bullish rejection each time bears push below 1.5600 - 1.5580


Bullish fixation above the price level of 1.5760 (bullish breakout of the daily bearish channel) exposes the price levels of 1.5880 and 1.5950 for retesting.


However, less probably, a break below the recent bottoms established around 1.5580-1.5540 renders the current consolidation range as a bearish flag pattern with projected target at 1.5310 like what happened back in October.


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.


Otherwise, it's recommended to stay out of the market until the next destination of the GBP/USD pair is determined.


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

Technical analysis of USD/CHF for December 22, 2014

USDCHFM30.png


Fundamental overview:
USD/CHF is expected to trade in higher range.It is supported by the Swiss National Bank's announcement on Thursday on charging a negative interest rate of 0.25% on deposits from January 22 to cool the strength of the Swiss franc. USD/CHF is also buoyed by the positive dollar sentiment and the franc sales on cross trades versus major currencies.


Technical comment:


The daily chart is positive-biased as the MACD and stochastics are bullish, 5- and 15-day moving averages are 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 0.9850 and the second target at 0.9890. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.9715. A break of this target would push the pair further downward, and one may expect the second target at 0.9660. The pivot point is at 0.9775.


Resistance levels:

0.9850

0.9890

0.9915


Support levels:

0.9715

0.9660

0.9605


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

Intraday technical levels and trading recommendations on GBP/USD for December 22, 2014

gbpusddaily.jpg


Two weeks ago, the GBP/USD pair found intraday DEMAND around 1.5550 where many lows were previously established back in November.


Moreover, previous multiple bottoms were established above 1.5550-1.5580, rendering it a prominent DEMAND zone.


The DAILY outlook favors the bullish scenario initially towards 1.5800 then towards 1.5950 provided that bulls keep defending the lower limit of the current consolidation range around 1.5550.


Another less probable scenario: a bearish flag pattern that waits for a bearish breakout below 1.5550 (similar to what happened back in October). Projection target would be located around the price level of 1.5200.


gbp4hh.jpg

The current outlook is bearish on the H4 chart. Successive lower highs and lows have been established before the current ranging movement started to occur.


A consolidation movement ranging between the price levels of 1.5770 and 1.5550 took place. It represents a state of indecision on the market after such a long bearish rally that started off 1.7100 and 1.6500.


Intraday traders should wait for bullish pullback towards the recent SUPPLY zone located around 1.5775-1.5810 for a low-risk SHORT position.


Risky traders should note that bearish breakout below 1.5550 directly exposes potential bearish projection targets around 1.5330.


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

Daily analysis of USDX for December 22, 2014

The USDX is trying to consolidate above the support level of 88.63 with the formation of a higher high pattern. On the upside road, the nearest target is the resistance level of 90.40. However, it is likely that the USDX starts making retracements towards the support level of 88.63. The MACD indicator is moving into positive territory.


Dailychart's resistance levels: 90.40 / 93.44


Dailychart's support levels: 88.63 / 87.35


USDXDaily.png

In the H1 chart, the USDX tried to continue falling below the support level of 89.25, but failed and now, this instrument is trying to reach the resistance level of 89.76 again. However, the range movements continue to dominate over the current trend on this chart, so it is very likely that during today's session, the USDX moves in range.


H1 chart's resistance levels: 89.51 / 89.76


H1 chart's support levels: 89.25 / 88.99


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 89.51, take profit is at 89.76, and stop loss is at 89.25.


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

Daily analysis of GBP/USD for December 22, 2014

The range movements still dominates over the current trend of GBP/USD, at least on the daily chart, because this pair has found strong resistance at the level of 1.5642, so that the next target would be the support level of 1.5506, which is a low range level. However, we can not even speak of a clear and definite trend in the GBP/USD. The MACD indicator is entering neutral territory.


Dailychart's resistance levels: 1.5642 / 1.5746


Dailychart's support levels: 1.5506 / 1.5407


GBPUSDDaily.png


On the H1 chart, the GBP/USD is trying to form a pattern below bearish resistance level of 1.5632 and 200-day moving average, so the bearish bias remains intact, and even the support level of 1.5590 remains the closest goal in the bearish road for the GBP/USD. If the pair manages to make a breakout in that area, it would be expected to fall to the level of 1.5534.


H1 chart's resistance levels: 1.5632 / 1.5686


H1 chart's support levels: 1.5590 / 1.5534


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 1.5590, take profit is at 1.5534, and stop loss is at 1.5650.


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