GBP/USD intraday technical levels and trading recommendations for January 16, 2015

gbpusdaily.pnggbusd4h.png

Overview:


The GBP/USD pair has been moving downwards respecting the depicted bearish channel since mid-September 2014 when the ongoing channel was initiated.


On December 17, the market failed to express a bullish breakout above the upper limit of the daily bearish channel. Shortly after, an extensive bearish pressure was applied against the price levels of 1.5540-1.5560 on December 23.


Daily closure below the recent bottoms established around 1.5540-1.5560 rendered the previous consolidation range as a bearish flag pattern with projection target at 1.5300.


The market has already pushed further below this level reaching down to 1.5030 where the lower limit of the channel provided significant support for the pair.


Bullish recovery was manifested by the ascending bottoms being established on the H4 chart. This may apply further pressure to break above the recent high (1.5260).


The key-support zone for today's movement is located at 1.5150-1.5180. Fixation above it enhances the bullish side of the market towards 1.5260, 1.5370 and 1.5410.


However, within such strong bearish trend you should not exclude the other scenario that the H4 fixation below 1.5150 and 1.5100 indicates further bearish tendency on the market, probably, new lows below 1.5030 are going to be hit.


Trading recommendations:


Price zone of 1.5350-1.5380 ( 61.8% Fibonacci Level ) should be watched for new SELL entries with SL as daily closure above 1.5400.


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

EUR/NZD analysis for January 16, 2014

EURNZDDaily16.png

EURNZDH116.png


Overview:


In our last analysis EUR/NZD was trading sideways around the price of 1.4875. According to the daily time frame, we can observe strong supply in an ultra high volume (selling climax), so selling EUR/NZD at this stage looks very risky. Our Fibonacci expansion 161.8% at the price of 1.4900 is on the test. Be careful when selling since we may expect reaction from buyers. According to the H4 time frame, we can observe selling climax in the background and weak supply around the level of 1.4800. Any larger demand in a high volume may confirm further bullish corrective phase. Anyway, if the price breaks the level of 1.4900 in a stong price action, we may see a potential testing of the level of 1.4425.


Daily Fibonacci pivot levels:


Resistance levels:


R1: 1.5168


R2: 1.5279


R3: 1.5458


Support levels:


S1: 1.4809


S2: 1.4698


S3: 1.4518


Trading recommendations: Be careful when selling the EUR/NZD pair at this stage since the price is testing Fibonacci expansion 161.8%.


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

Gold analysis for December 16, 2014

GOLDDaily16.png

GOLDH416.png


Overview :


Since our last analysis gold has been trading upwards. As we expected, the price has tested the level of 1,266.55 in an ultra high volume. Our Fibonacci expansion 161.8% at the price of 1,265.00 is on the test. According to the H4 time frame, we can observe supply in a volume below the average, which is a sign that selling gold at this stage looks risky. Be careful when selling gold and watch for potential buying opportunities on the lows. We got support level at the price of 1,244.00 (swing high like support). If the price breaks the level of 1,265.00 in a high volume, we may see potential testing of the level of 1,292.00 (submajor Fibonacci retracement 38.2%).


Daily pivot Fibonacci points:


Resistance levels :


R1: 1,268.40


R2: 1,278.10


R3: 1,293.80


Support levels :


S1: 1,237.00


S2: 1,227.97


S3: 1,211.60


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


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

Technical analysis of EUR/JPY for January 16, 2015


Technical outlook and chart setups:


The EUR/JPY pair has remained unchanged from yesterday and is seen to be trading around 135.20/30 levels for now. The pair could break lower towards 134.00 levels before a counter trend rally resumed towards potentially 143.00/144.00 levels in the sessions to come. Immediate support is seen at 134.00 levels while resistance is not before 140.40 levels (Fibonacci 0.382 of the recent drop). It is recommended to remain flat for now and look for bullish opportunities at lower levels around 134.00 levels. Please note that the bigger picture might be indicating a deeper correction towards 115.00/116.00 levels, which could complete in 3 waves.


Trading recommendations:


Remain flat for now.


Good luck!




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

Technical analysis of NZD/USD for January 16, 2015

usdcadh4.png

Overview :



  • The USD/CAD pair is going to continue its rise upright from the price of 1.1920 in the short-term. It should be noted that the support is setting at the price of 1.1920 which represents the 78.6% of Fibonacci retracement levels on the H4 chart. Moreover, the same price is probably going to form a double bottom at the same time frame. Accordingly, the USD/CAD pair is showing signs of strength following the break of the highest level of 1.1944. So, it will be a good sign to buy above the level of 1.1920 with the first target of 1.2017 in order to test the double top and further to 1.2070. Also, it might be noted that the level of 1.2070 is a good place to take profit because it will form a new double top. On the other hand, in case reversal takes place and the USD/CAD pair breaks through the support level of 1.1920, the market will lead to further decline to 1.1844 to indicate a bearish market.



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

Technical analysis of GBP/USD for January 16, 2015

gbpusdh1.png

Forecast :



  • According to the previous events, the price of the GBP/USD pair has still been moving between the levels of 1.5170 and 1.5258. The level of 1.5258 represents the daily resistance 1. It should be noted that the daily resistance 1 coincides with the ratio of 38.2% Fibonacci retracement levels. Thus, sell below the price of 1.5258 in the short-term with the first target of 1.5173 in order to test the double bottom. If the trend can break the double bottom at 1.5173, it might resume to 1.5142 (the second support). The stop loss should never exceed your maximum exposure amounts. Hence, it will be quite profitable to set your stop loss at the level of 1.5276.



Intraday technical levels :

Date:16/01/2015

Pair:GBP/USD



  • R3: 1.5363

  • R2: 1.5314

  • R1: 1.5246

  • PP: 1.5197

  • S1: 1.5129

  • S2: 1.5080

  • S3: 1.5012



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

#USDX technical analysis for January 16, 2015

The Dollar index was heavily influenced by the yesterday's SNB decision on rate cut, and volatility was very high. The best strategy is to wait for the dust to settle as this volatility increase is very dangerous and yesterday it make damage for both bulls and bears.


usdx.jpg

The short-term chart is showing an expanding triangle pattern and the extreme volatility we witnessed yesterday. Prices look like they are coming back to the middle of the range and it seems that the sideways pattern continues. Short-term support is at 91.50 and short-term resistance at 92.70.


usdxd.jpg

Black lines = bullish channel


The Dollar index remains inside the upward sloping bullish channel. Yesterday's increase in volatility and extreme price movement have not changed the long- or short-term trend in the Dollar index. The weekly candle remains positive and supportive of the bullish trend. However, bulls should be very cautious and raise their stops to 91 as a break below that level could signal a deeper correction towards 89.


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

Gold technical analysis for January 16, 2015

Gold price made a decisive breakout yesterday above $1,245. This was needed for the breakout not to be considered as fake. With this breakout our first target of $1,260-70 has been reached. However, there is still some more upside potential that could bring Gold price towards $1,300.


goldh4.jpg

Green line = support


Gold price continues its upward trend by making higher highs and higher lows. Price is in a clear uptrend above the Ichimoku cloud. the short-term support at $1,245 is the previous breakout level that bulls should defend. Breaking below that level could bring prices towards $1,230.


goldd.jpg

Gold price, as shown on the daily chart, has broken the triangle pattern to the upside. The two targets that I have are above $1,300. The first target comes from the equal size of the base of the triangle and the second target is equal to the first rise in prices from $1,130 to $1,240. Trend is bullish on the daily chart and is also supported by the fact that price is above the Ichimoku cloud and Ichimoku indicators are bullish.




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

Technical analysis of USD/CAD for January 16, 2015

General overview for 16/01/2015 09:20 CET


The market keeps making a corrective structure, as it was anticipated yesterday, and the first possible pattern for the corrective structure in wave 4 green might be a triangle pattern. This idea has been drawn on hourly chart and only a strong, clear breakout below the level of 1.1802 might invalidate the pattern. That would mean the market is making a different corrective structure and it could get complex and time consuming. Nevertheless, the bias is still bullish as there are unfinished impulsive waves to the upside.


Support/Resistance:


1.1802 - Intraday Support


1.1829 - Weekly Pivot


1.1926 - WR1


1.1987 - WR2


1.2000 - Intraday Resistance


Trading Recommendations:


Daytraders and swingtraders should consider buying the dips in this market with SL below the level of 1.1802 and wait for the corrective cycle to complete.


usdcad_h1.jpg

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

Technical analysis of EUR/JPY for January 16, 2015

General overview for 16/01/2015 09:10 CET


The market keeps falling further and currently is very close to invalidate the main count. Any violation of the level of 134.12 is a direct main count invalidation. It means, that the big impulsive cycle to the upside has been completed and now the market is in corrective cycle that looks like a zig-zag (or double zig-zag). Moreover, the corrective cycle has not been finished yet and more downside prices are expected then. Only a sustained breakout above the level of 137.01 would confirm a possible rebound of this market.


Support/Resistance:


134.12 - Key Level|Main Impulsive Count Invalidation Level|


134.32 - WS3


134.73 - Intraday Support


136.99 - Intraday Resistance


Trading Recommendations:


Daytraders should consider opening buy positions only if the level of 137.01 is clearly violated with SL below the level of 134.12 and open TP level for now.


eurjpy_h1.jpg

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

Technical analysis of USD/JPY for January 16, 2015

USDJPYM30.png

Fundamental overview:
USD/JPY is expected to trade downside. It is undermined by the flows to haven JPY and unwinding JPY-funded carry trades amid increased risk aversion (VIX fear gauge rose 4.24% to 22.39, S&P 500 closed 0.92% lower at 1,992.67 overnight) as a shock decision by the Swiss National Bank to abandon the Swiss franc's ceiling against the euro that was in place for more than three years roiled global markets. USD/JPY is also weighed by the lower U.S. Treasury yields (10-year at 1.725% versus 1.835% late Wednesday), and Japan's exporter sales. But USD/JPY losses are tempered by the demand from Japan's importers and Bank of Japan's large-scale monetary easing policy and positions adjustment ahead of U.S. long weekend (financial markets in U.S. are shut for a public holiday on Monday). U.S. data were mixed on Thursday as less-than-expected 0.3% on-month fall in U.S. December PPI (versus forecast -0.4%) and stronger-than-expected rise in New York Fed Empire State manufacturing index to 9.95 in January from -1.23 in December (versus forecast 4.5) were offset by more-than-expected 316,000 U.S. jobless claims in week ended Jan. 10 (versus forecast 295,000) and bigger-than-expected drop in Philadelphia Fed business index to 6.3 in January from 24.3 in December (versus forecast 20.0).


Technical comment:
Daily chart is negative-biased as MACD and stochastics are bearish, although the latter is at oversold levels, five and 15-day moving averages are declining.


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 116. A break of this target will move the pair further downward to 115.50. The pivot point stands at 117.55. 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. According to this scenario, a long position is recommended with the first target at 117.95 and the second target at 118.50.


Resistance levels:

117.95

118.50

119



Support levels:

116

115.50

115


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

Technical analysis of USD/CHF for January 16, 2015

USDCHFM30.png

Fundamental overview:
USD/CHF is expected to trade in a volatile fashion amid thin liquidity after plunging as low as 0.7360 on Thursday - its record low in three and a half years - after Swiss National Bank expectedly cancelled the minimum exchange rate of CHF1.20 per euro, lowered the interest rate on sight deposit account balances by 0.5 percentage points to 0.75%, and moved the target range for the three-month Libor further into the negative territory, to between -1.25% and 0.25% from the current range of between 0.75% and 0.25%. USD/CHF is undermined by the franc demand for cross trades versus major currencies. But USD/CHF downside is supported by the USD bargain hunting, possible SNB intervention as the Swiss central bank in its statement said it will continue to take account of the exchange rate in formulating is monetary policy in future and, if necessary, it remains active in the foreign exchange market to influence monetary conditions.


Technical comment:
Daily chart is negative-biased as MACD and slow stochastic indicators are bearish, five and 15-day moving averages are declining.


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 0.8405. A break of this target will move the pair further downward to 0.8005. The pivot point stands at 0.9150. 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. According to that scenario, a long position is recommended with the first target at 0.9550 and the second target at 0.9780.


Resistance levels:

0.9550

0.9780

0.9810


Support levels:

0.8405

0.8005

0.7975


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

Technical analysis of NZD/USD for January 16, 2015

NZDUSDM30.png

Fundamental overview:
NZD/USD is expected to trade in a range. It is undermined by the increased investor risk aversion and Kiwi sales on soft NZD/CHF cross. But NZD/USD downside is limited by the Kiwi demand for buoyant NZD/CAD and for soft EUR/NZD, GBP/NZD, AUD/NZD crosses, NZD-USD interest differential as well as positions adjustment ahead of the weekend.


Technical comment:

Daily chart is mixed as MACD histogram bars are turned positive, but stochastics is neutral.


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 0.79 and the second target at 0.7930. In an alternative scenario, if the price moves below its pivot points, short posisitions are recommended with the first target at 0.7755. A break of this target would push the pair further downwards and one may expect the second target at 0.7720. The pivot point is at 0.7755.


Resistance levels:

0.79

0.7930

0.7975



Support levels:


0.7720

0.7690

0.7650


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

Technical analysis of GBP/JPY for January 16, 2015

GBPJPYM30.png

Fundamental overview:
GBP/JPY is expected to consolidate with a bearish bias. It is undermined by the flows to haven yen amid increased investor risk aversion and the weak euro sentiment. But GBP/JPY losses are tempered by the demand from Japan's importers and positions adjustment ahead of the weekend.


Technical comment:
Daily chart is negative-biased as MACD is bearish, stochastics stays suppressed at oversold levels, five- and 15-day moving averages are declining.


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 176. A break of this target will move the pair further downward to 175.15. The pivot point stands at 178.40. 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. According to that scenario, a long position is recommended with the first target at 179.60 and the second target at 180.10.


Resistance levels:

179.60

180.10

181


Support levels:

176

175.15

174.65


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

Daily analysis of major pairs for January 16, 2015

EUR/USD: This currency trading instrument continues to go downwards, moving below the support line at 1.1650. Another support line at 1.1600 could be breached to the downside as well.


1.png

USD/CHF: There has been an abnormal southward plunge on this pair, as a result of the actions of the Swiss National Bank. A downwards movement of over 2800 pips in a single day is not normal, but this same thing happened on all CHF pairs. For example, the CHF/JPY pair rose by close to 7000 pips in a single day. As for USD/CHF, the market is expected to correct itself gradually until things become normal. One may open a long trade with a very small lot and target about 500 pips.


2.png

GBP/USD: The Cable has proven to give an opportunity to sell short when the price was slightly higher in the context of a downtrend. The distribution territory at 1.5250 was challenged but the price was unable to close above it, and therefore, the current dip in the price could be a renewal of further bearish move.


3.png

USD/JPY: This pair has entered a bear market – the price is below the EMA 56 and the RSI period 14 is below the level 50. The next target could be the demand level at 115.50, although the price could go below that level.


4.png

EUR/JPY: This week, the EUR/JPY pair has gone downwards by more than 500 pips, owing to the ongoing weakness in the EUR and the continuous strength in the Yen. The Bearish Confirmation Pattern on the chart is now very strong and the price could break the demand zone at 135.00 to the downside.


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

Daily analysis of USDX for January 16, 2014

The USDX made a pullback at the resistance level of 92.62 and this instrument may close the week in the range between the 92.62 and 91.62 levels. This is because the USDX has not found a way to consolidate a solid trend on a medium term basis. During yesterday's session, the USDX made a rebound to the support level of 91.62 after being rejected by the aforementioned resistance zone.


H4chart's resistance levels: 92.62 / 94.45


H4chart's support levels: 91.62 / 91.17


USDXH4.png

On the H1 chart, the USDX had an intraday fall from the level of 92.75 after conducting a strong bullish rebound at the 200-day moving before yesterday's American session. Now, the support USDX located at the level of 92.08, so this instrument is likely to reach the resistance level of 92.51. The MACD indicator remains in the negative territory.


H1 chart's resistance levels: 92.51 / 92.92


H1 chart's support levels: 92.08 / 91.66


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 92.51, take profit is at 92.92, and stop loss is at 92.10.


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

Daily analysis of GBP/USD for January 16, 2015

On the H4 chart, GBP/USD has fallen back to the support level of 1.5148, which is an area where this pair could find solid support during the following hours before closing today's session. However, the bearish bias remains alive in GBP/USD, as this pair is still below the 200-day moving average and also, the MACD indicator is moving into the negative territory.


H4chart's resistance levels: 1.5341 / 1.5485


H4chart's support levels: 1.5148 / 1.5034


1421385134_GBPUSDH4.png

The GBP/USD pair has consolidated again below the 200 SMA on the H1 chart. So now, this pair will try to make a breakout at the support level of 1.5146 with the formation of a lower low pattern. If successful, the next target would be the 1.5110 level, but now, the pair is losing bearish intraday momentum.


H1 chart's resistance levels: 1.5198 / 1.5249


H1 chart's support levels: 1.5146 / 1.5110


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 1.5146, take profit is at 1.5110, and stop loss is at 1.5182.


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

Technical analysis of EUR/USD for January 16, 2015

!EURUSD.jpg

When the European market opens, some economic news will be released such as Final Core CPI y/y, Final CPI y/y, French Gov Budget Balance, and German Final CPI m/m. The US will also publish a bunch of the economic reports such as the TIC Long-Term Purchases, Prelim UoM Inflation Expectations, Prelim UoM Consumer Sentiment, Industrial Production m/m, Capacity Utilization Rate, Core CPI m/m, and CPI m/m. So, amid the reports, EUR/USD will move with low to medium volatility during this day.


TODAY TECHNICAL LEVELS:


Breakout BUY Level: 1.1673.


Strong Resistance:1.1666.


Original Resistance: 1.1655.


Inner Sell Area: 1.1644.


Target Inner Area: 1.1616.


Inner Buy Area: 1.1588.


Original Support: 1.1577.


Strong Support: 1.1566.


Breakout SELL Level: 1.1559.


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 January 16, 2015

!USDJPY.jpg

In Asia, Japan will release the Tertiary Industry Activity m/m. The US will also release a bunch of economic data such as TIC Long-Term Purchases, Prelim UoM Inflation Expectations, Prelim UoM Consumer Sentiment, Industrial Production m/m, Capacity Utilization Rate, Core CPI m/m, and CPI 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.


Resistance. 3: 116.62.


Resistance. 2: 116.40.


Resistance. 1: 116.17.


Support. 1: 115.89.


Support. 2: 115.66.


Support. 3: 115.43.


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 Silver for January 16, 2015


Technical outlook and chart setups:


Silver remains more or less unchanged from yesterday and is seen trading at $17.10 levels for now. The metal is expected to push higher through the $17.40/50 levels at least before producing a meaningful retracement. It is therefore recommended to remain long for now and also look to dd further during intraday dips. Immediate support is seen at $16.50 levels, followed by $16.20, $15.50, $14.50 and lower while resistance is seen at $17.40/50, followed by $17.80/18.00 and higher respectively. The metal is lagging behind its counterpart Gold for now and a push higher towards at least $17.40/50 levels should fulfill minimum criteria for a pullback.


Trading recommendations:


Remain long, stop at $15.50, a target is open.


Good luck!




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

Technical analysis of Gold for January 16, 2015


Technical outlook and chart setups:


Gold has hit the minimum expected levels at $1,255.00 yesterday. The metal crossed $1,266.00 levels and is trading at $1,261.00 levels for now. Please note that the metal has taken out past resistance at $1,255.00 levels and hence a pullback could be expected from here. It is recommended to book profits on long positions and wait for a pullback to materialize. Immediate support is seen at $1,224.00, followed by $1,205.00, $1,170.00 and lower while resistance is now at $1,290.00 and higher respectively. Bulls are seen to be in complete control now and all dips from here should be considered excellent buy opportunities for long and short term trading.


Trading recommendations:


Book profits on long positions.


Good luck!




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

Intraday technical levels and trading recommendations for EUR/USD for January 15, 2015

eurweek.png

The market has been pushing lower aggressively after breaking below major DEMAND LEVELS around 1.2000 and 1.1860 where historical bottoms were previously established back in 2012 and 2010.


Further actions from the ECB regarding QE are still doubted due to the ECB’s policy meeting on January 22. This is strongly affecting the market leading to the current long-term negative sentiment of the EUR/USD pair.


The pair has lost almost 475 pips since the beginning of 2015, as the market is pushing towards its lowest levels since November 2005.


eurusddaily.png

The market currently looks oversold below the price level of 1.2000 and 1.1900 (prominent psychological SUPPORT & the lower limit of the movement channel on the H4 chart).


Currently, SELLING the EUR/USD should be avoided as much as possible at such historically low prices.


On the other hand, BUYING the pair is considered a low-risk opportunity but with low probability after such strong bearish trend.


Bullish pullback should be anticipated when looking for better prices to sell the pair off.


The price zone of 1.1750-1.1820 is the recently established SUPPLY zone. Short-term SELL positions can be taken there provided that the market keeps trading below the price level of 1.1880.


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

Intraday technical levels and trading recommendations for GBP/USD for January 15, 2015

cabledaily.png

Many previous lows were established around 1.5550 where the GBP/USD pair found temporary DEMAND in November 2014. A bearish breakout was expressed after many unsuccessful attempts back in 2014.


A bearish breakout scenario similar to what happened back in October was successfully executed shortly after. The final bearish target was expected to be around price level of 1.5140.


The market has already pushed further below this level on Friday, reaching the lower limit of the depicted bearish channel around 1.5050.


Currently, the GBP/USD pair is showing bullish recovery off the price level of 1.5050 which is manifested in the successive bullish hammer daily candlesticks. This is supported by the positive UK Manufacturing production data that emerged last week.


The price level of 1.5100 has been defended by bulls since the start of 2015. Bullish fixation above 1.5130-1.5180 is mandatory to maintain the current corrective movement towards 1.5400.


cable4h.png

Consolidation movement range between the price levels of 1.5770 and 1.5550 represented the state of indecision on the market after such a long bearish rally that started off 1.7100 and 1.6500.


As anticipated, the bearish breakout below 1.5550 exposed lower targets directly. Bears have already reached the price level of 1.5050 that has not been hit since August 2013.


For RISKY traders, LONG entries was suggested around the price level of 1.5100. Stop Loss to be located below 1.5025.


It is running in profits now (+80 pips). The bulls should defend the recent DEMAND zone located around 1.5160-1.5115 to pursue towards 1.5400.


Conservative traders should wait for a bullish pullback towards the recent SUPPLY zone around 1.5480-1.5550 for a low-risk SELL entry. The stop loss should be located above 1.5560.


Note that the price level of 1.5480 corresponds to 50% Fibonacci level as well as the upper limit of the current movement channel.


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

USD/CAD intraday technical levels and trading recommendations for January 15, 2015

caddaily.png1421335617_cad4h.png

Overview:


During the past few weeks, the USD/CAD pair established a temporary consolidation zone between the price levels of 1.1560 and 1.1670 bullish breakout above which allowed bulls to reach the price levels of 1.1800, 1.1900 and recently 1.2015 where new highs have been visited.


As expected from the nearest support, the price zone of 1.1800-1.1750 provided excellent SUPPORT for the pair. LONG positions were suggested yesterday at retesting. It is running in profits now.


You should also note the newly established short-term channel being expressed since the price level of 1.1750 extended up to 1.2000 as the market looks quite overbought since bulls have pushed further above the upper limit of the long-term movement channel.


This channel pattern may indicate bearish reversal, if confirmed, with H4 bearish breakdown of the lower limit of it around price level of 1.1850-1.1870.


Otherwise, if bulls keep defending the recent INTRADAY SUPPORT around 1.1850 down to 1.1800, the market bias remains positive.


Trading recommendations:


LONG positions are suggested at retesting price zone of 1.1800-1.1750. SL should be placed slightly below price level of 1.1730.


Counter-trend risky traders can wait for a bearish breakout below 1.1850 to SELL the USD/CAD pair aiming for 1.1750 and 1.1680.


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

GBP/USD intraday technical levels and trading recommendations for January 15, 2015

gbpusddail.pnggpbusd4h.png

Overview:


The GBP/USD pair has been moving downwards respecting the depicted bearish channel since mid-September 2014 when the ongoing channel was initiated.


On December 17, the market failed to express a bullish breakout above the upper limit of the daily bearish channel. Shortly after, an extensive bearish pressure was applied against the price levels of 1.5540-1.5560 on December 23.


Daily closure below the recent bottoms established around 1.5540-1.5560 rendered the previous consolidation range as a bearish flag pattern with projection target at 1.5300.


The market has already pushed further below this level reaching down to 1.5030 where the lower limit of the channel provided significant support for the pair.


Bullish recovery was manifested by the ascending bottoms being established on the H4 chart. This may apply further pressure to break above the recent high (1.5260).


The key-support zone for today's movement is located at 1.5150-1.5180. Fixation above it enhances the bullish side of the market towards 1.5260, 1.5370 and 1.5410.


However, within such strong bearish trend you should note that H4 fixation below 1.5100 indicates further bearish tendency on the market, probably, new lows below 1.5030 are going to be hit.


Trading recommendations:


Price zone of 1.5350-1.5380 ( 61.8% Fibonacci Level ) should be watched for new SELL entries with SL as daily closure above 1.5400.


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

Technical analysis of USD/JPY for January 15, 2015

USDJPYM30.png

Fundamental overview:
USD/JPY is expected to trade with risks skewed to the downside after hitting almost a one-month low 116.07 on Wednesday. It is undermined by the flows to safe haven JPY and unwinding of JPY-funded carry trades amid increased risk aversion (VIX fear gauge rose 4.47% to 21.48, S&P 500 closed 0.58% lower at 2,011.27 overnight) and worries about the pace of global economic growth after the World Bank lowered its forecasts for global expansion in 2015 to 3.0% from 3.4% and in 2016 to 3.3% from 3.5%. It is also noteworthy that copper prices plunged to their lowest in more than five years and that the U.S. retail sales fell 0.9% on-month in December (versus forecast -0.2%). USD/JPY is also weighed by the weaker dollar sentiment (ICE spot dollar index last 92.08 versus 92.22 on early Wednesday) on weak U.S. retail sales and by 5.5% on-year drop in the U.S. December import price index (biggest annual decline since October 2009). In addition to it, 0.2% rise in the U.S. November business inventories (versus forecast +0.3%), lower U.S. Treasury yields (10-year at 1.85% versus 1.89% late Tuesday) and Japan's export sales weigh the pair. However, USD/JPY losses are tempered by the demand from the Japanese importers and by the Bank of Japan's large-scale easing monetary policy.


Technical comment:
The daily chart is negative-biased as the MACD and stochastics are bearish, although, the latter is at the oversold levels. Five-day moving average is below 15-day moving average and is declining.


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 116. A break of this target will move the pair further downward to 115.50. The pivot point stands at 117.55. 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. According to this scenario, a long position is recommended with the first target at 117.95 and the second target at 118.50.


Resistance levels:

117.95

118.50

119



Support levels:

116

115.50

115



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