Intraday technical levels and trading recommendations for EUR/USD for January 16, 2015


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 490 pips since the beginning of 2015, as the market is pushing towards its lowest levels since November 2003.


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 pair 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.

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


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 the 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.

The GBP/USD pair has shown bullish recovery off the price level of 1.5050 which is manifested in the successive bullish hammer daily candlesticks. This was enhanced 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.


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 1.5075 (Tuesday's low).

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.

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



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 1.2045 where new highs have been visited.

As expected from the nearest H4 support, the price zone of 1.1800-1.1750 provided excellent SUPPORT for the pair. LONG positions were suggested 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 1.2050. It happened because 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 the price zone of 1.1800-1.1750 with tight SL placed slightly below 1.1730.

Counter-trend risky traders can wait either for a bullish spike towards 1.2090 or for H4 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 -