Technical analysis of USD/CAD for January 22, 2015

General overview for 22/01/2015 15:50 CET


Despite the fact that the wave 4 green was shorter in price and time than anticipated (I have been expecting more time consuming triangle corrective pattern), the wave progression unfolds as anticipated with the price making another higher high and hitting the weekly pivot resistance at the level of 1.2342 yesterday. The impulsive wave development to the upside has not been completed yet and another wave upward is being expected. Please, notice that the internal sub-wave -iv- blue might not have been finished yet and the correction might take a little more time before the uptrend resumes.


Support/Resistance:


1.2393 - Swing High


1.2342 - WR3


1.2310 - Intraday Support


Trading recommendations:


It has been advised to buy on the dips on this market, and after a nice move the daytraders and swingtraders are welcome to move the SL higher (below the 1.2342 level) or close the buy orders with profit 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 22, 2015

General overview for 22/01/2015 15:40 CET


After the release of the ECB meeting results, the market has made another leg to the downside, but the intraday support at the level of 134.71 has not been broken yet. This structure to the downside might be labeled as a three-wave correction and, as long as the level of 134.71 is not clearly violated, there is still a chance for a rebound. Please, notice that any violation of the level of 134.12 invalidated the red impulsive sccenario and puts the alternate one into play.


Support/Resistance:


134.12 - Invalidation Level


134.71 - Intraday Support


136.80 - Weekly Pivot


Trading recommendations:


Traders should stay aside for now and wait what reaction will be when market hits the key support level.


eurjpyh4.jpg

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

EUR/NZD analysis for January 22, 2014

EURNZDDaily22.png

EURNZDH422.png


Overview:


In our last analysis EUR/NZD was trading upwards. The price tested the level of 1.5432 in a high volume. According to the daily time frame, we can observe demand in a volume above the average. I have placed Fibonacci retracement to find potential resistance levels and got Fibonacci retracement 38.2% at the price of 1.5416 (currently on the test) and Fibonacci retracement 61.8% at the price of 1.5800. Be careful when buying EUR/NZD at this stage since we may expect reaction from sellers. Anyway, if the price breaks the level of 1.5416 in a high volume and strong price action, we may see further bullish movement.


Daily Fibonacci pivot levels:


Resistance levels:


R1: 1.5389


R2: 1.5462


R3: 1.5581


Support levels:


S1: 1.5152


S2: 1.5079


S3: 1.4961


Trading recommendations: Be careful when buying the EUR/NZD pair at this stage since the price is testing Fibonacci retracement 38.2%


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

Gold analysis for January 22, 2014

GOLDDaily22.png

GOLDH422.png


Overview :


Since our last analysis gold has been trading downwards. The price tested the level of 1,279.33. I have found support around the price of 1,281.00 (swing high like support), and this level is successfully resisted. According to the H4 time frame, we can observe weak 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 resistance levels at the price of 1,304.00 and 1,344.00.


Resistance levels :


R1: 1,303.66


R2: 1,308.94


R3: 1,317.50


Support levels :


S1: 1,286.54


S2: 1,281.26


S3: 1,272.70


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 Silver for January 22, 2015


Technical outlook and chart setups:


Silver touched initial extension at $18.30/40 levels yesterday before pulling back. The metal could still push higher towards $18.90 from current levels ($18.00/05), or after pulling back towards $17.30 at least. It has been confirmed now that bulls are firmly in control and the metal is pushing higher, forming an inverted head and shoulder reversal (discussed earlier). It is recommended to buy on any dips/retracement from here on. Immediate support is seen at $17.40/50 (past resistance turned support), followed by $16.50/60, $16.20 and lower while resistance is seen at $18.50/60, followed by $18.90/$19.00 and higher respectively.


Trading recommendations:


Buy on dips towards at least $17.40/50.


Good luck!




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

Technical analysis of Gold for January 22, 2015


Technical outlook and chart setups:


Gold touched $1,305.00 levels yesterday before pulling back. The metal could be under way to produce a meaningful retracement towards at least $1,250.00 levels. It is the Fibonacci 0.382 support of the rally from $1,170.00 to $1,305.00 levels as depicted here. Please, note that the metal is out in the buy zone and the resistance trend line would act as support now. It is recommended to wait for a correction from current levels before again entering long positions. Immediate support is seen at $1,250.00 levels, followed by $1,230.00 and lower while resistance is seen at $1,305.00 (interim), followed by $1,340.00 and higher respectively.


Trading recommendations:


Wait for a dip towards $1,250.00 to enter long again.


Good luck!




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

Technical analysis of EUR/JPY for January 22, 2015


Technical outlook and chart setups:


The EUR/JPY pair touched lows at 135.79 levels yesterday before pulling back. The pair has bounced off the Fibonacci 0.618 support of the rally from 134.80 to 137.60 levels, and is expected to continue pushing higher towards 139.50 at least. The pair is seen to be trading at 136.75/80 levels at the moment and it is still recommended to remain long for now, risk is below 134.00. Immediate support is seen at 134.00/20 while resistance is seen at 138.50 and 140.30 respectively. Bulls are expected to remain in control until the prices remain above 134.80. Please, note that this is just a counter trend rally which could fade around 140.30 or 143.00 levels.


Trading recommendations:


Remain long for now, stop at 134.00, target is 140.30.


Good luck!




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

#USDX technical analysis for January 22, 2015

The Dollar index remains inside its upward sloping channel. Trend continues to be bullish in the longer-term, but the short-term action is very choppy with increased volatility and many price spikes at both directions.


usdx.jpg

Black lines = wedge formation


The Dollar index is forming a wedge pattern near its highs. The overlapping price structure has led me to this conclusion as it defines very clearly the uncertainty and the increase of volatility of the recent days. Price has broken the short-term support yesterday and reached our short-term downside target only to pull back up. This wedge is a bearish one, and I believe that short-term traders should go short once the lower boundary at 92.25 and the recent low at 92.20 are broken.


usdxd.jpg

Black lines = price channel


The Dollar index remains inside the upward sloping channel. Tenkan-sen support is at 92.38. Kijun-sen support is at 90.50. A daily close below the tenkan-sen will eventually bring the index towards the kijun-sen. Bulls should be very cautious as a break below 92 could lead to a deeper correction towards 90 or lower.


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

Gold technical analysis for January 22, 2015

Gold price has made a pullback yesterday, as expected. Price made a short-term top at least and pulls back below the first short-term support of $1,290. The pullback could even reach $1,260. The medium-term trend remains bullish with $1,330 possible target.


goldh4.jpg

Black lines = price channel


The upward sloping channel, as shown on the 4-hour chart above, demonstrates that although the trend remains bullish, the pullback could reach the lower channel boundary at $1,270. The kijun-sen support is at $1,280. Cloud support is at $1,250. As long as Gold price is below $1,300, the correction is ongoing. Breaking above $1,300 will confirm the end of the correction and a possible rise with $1,230 as target.


goldd.jpg

The daily chart with a doji at the top is showing signs of reversal that could test the tenkan-sen support at $1,260, and if broken, the kijun-sen support will be at $1,235. I prefer to stay neutral as Gold price has started a reversal at an important resistance level. This implies that we could expect a deeper than normal correction.


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

Elliott wave analysis of EUR/NZD for January 22 - 2015

2015-01-22-EURNZD-8H.png

Technical summary:


The rally from the 1.4787 has extended more than expected. Now, the pair is heading for the 50% corrective target at 1.5475. We expect this resistance to protect the upside for a break below minor support at 1.5325 and more importantly below support at 1.5267 that would call for a decline to 1.5065 and lower. The risk is that support at 1.5065 will be able to protect the downside for a rally to above 1.5475 confirming that an important bottom was found already at 1.4787.


Trading recommendation:


We took profit and reversed our long EUR position from 1.4855 to a short EUR position at 1.5145 for yet another nice profit. We have placed our stop at 1.5500 (forced by the strong rally higher to towards 1.5475). We will try to move the stop lower as quickly as possible.


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

Elliott wave analysis of EUR/JPY for January 22 - 2015

2015-01-22-EURJPY-8H.png

Technical summary:


The 61.8% corrective target at 135.83 protected the downside to perfection. Now, we should see minor support at 136.24 protect the downside for a break above the top of wave i at 137.64 confirming that wave iii higher to 140.54 is developing. A break below support at 136.24 would arouse concern and indicate a deeper correction from the 137.64 high to the 70.7% corrective target at 135.56.


Trading recommendation:


We are long EUR from 136.88 and we will move our stop higher to 136.20. If you are not long EUR yet, then buy near 136.24 with a stop at 136.20.


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

Technical analysis of USD/JPY for January 22, 2015

USDJPYM30.png

Fundamental overview:
USD/JPY is expected to consolidate with risks skewed higher as markets are awaiting 1245 GMT European Central Bank monetary policy decision. USD/JPY is underpinned by the positive dollar sentiment on divergent U.S. monetary policy stance versus other major central banks, stronger-than-expected 4.4% increase in U.S. December housing starts to 1.089 million (versus forecast +1.0% to 1.04 million), reduced allure of the safe-haven yen amid diminished risk aversion (VIX fear gauge eased 5.23% to 18.85; S&P 500 closed up 0.47% at 2,032.12 overnight) as investors widely expect the ECB to deliver on monetary stimulus Thursday, higher U.S. Treasury yields (10-year at 1.859% versus 1.791% late Tuesday), and demand from Japan's importers. But USD sentiment is dented by the surprise 1.9% drop in U.S. building permits to 1.032 million in December (versus forecast +1.0% to 1.06 million). USD/JPY gains are also tempered by Japan's export sales.


Technical comment:
Daily chart is mixed as MACD is bearish, but stochastics is rising from 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 118.40 and the second target at 118.85. In an alternative scenario, if the price moves below its pivot points, short posisitions are recommended with the first target at 116.80. A break of this target would push the pair further downwards and one may expect the second target at 116.30. The pivot point is at 117.15.


Resistance levels:

118.40

118.85

119.15



Support levels:

16.80

16.30

116


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

Technical analysis of EUR/USD for January 22, 2015

EURUSDM30.png

Fundamental overview:
EUR/USD is expected to consolidate with risks skewed lower as markets are awaiting 1245 GMT European Central Bank monetary policy decision. The Wall Street Journal reported Wednesday a proposal from the ECB's executive board that calls for monthly bond purchases of roughly EUR50 billion, lasting for at least one year, suggesting bond purchases could amount to at least EUR600 billion. EUR/USD is undermined by the prospect of the large-scale ECB quantitative easing, the positive dollar sentiment, and fears of Greece exit from the eurozone if the anti-austerity left-wing Syriza party wins the snap elections Sunday and renege on the country's reform program. But EUR/USD losses are tempered by the subdued risk aversion.


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 1.1540. A break of this target will move the pair further downward to 1.1510. The pivot point stands at 1.1680. 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 1.1720 and the second target at 1.1755.


Resistance levels:

1.1720

1.1795

1.1845

Support levels:


1.1540

1.1515

1.1450


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

Technical analysis of USD/CHF for January 22, 2015

USDCHFM30.png

Fundamental overview:
USD/CHF is expected to trade in a range. It is undermined by the franc demand on cross trades versus major currencies. But CHF sentiment is dented by the drop in Switzerland ZEW-Credit Suisse indicator of economic sentiment to minus 10.8 in January from minus 4.9 in December. USD/CHF downside is also limited by the positive dollar sentiment and negative Swiss interest rates and threat of SNB CHF-selling intervention.


Technical comment:
Daily chart is mixed as MACD is in bearish mode, 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 0.8545. A break of this target will move the pair further downward to 0.8445. The pivot point stands at 0.8700. 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 0.8780 and the second target at 0.8840.


Resistance levels:

0.8780

0.8840

0.8910


Support levels:

0.8545

0.8445

0.84


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

Technical analysis of NZD/USD for January 22, 2015

NZDUSDM30.png

Fundamental overview:
NZD/USD is expected to consolidate with a bearish bias after hitting a two-and-a-half year low at 0.7546 on Wednesday. It is undermined by the lower-than-expected New Zealand 4Q CPI which, together with the surprise interest rate cut by the Bank of Canada on Wednesday, raising chances that the Reserve Bank of New Zealand will leave rates on hold longer. NZD/USD is also weighed by the positive dollar sentiment. But NZD/USD losses are tempered by the subdued risk aversion.


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 0.7450. A break of this target will move the pair further downward to 0.74. The pivot point stands at 0.7625. 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 0.7710 and the second target at 0.7785.


Resistance levels:

0.7710

0.7785

0.7810

Support levels:


0.7450

0.74

0.7375


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

Technical analysis of GBP/JPY for January 22, 2015

GBPJPYM30.png

Fundamental overview:
GBP/JPY is expected to consolidate as markets are awaiting 1245 GMT European Central Bank monetary policy decision. GBP/JPY is supported by the subdued investor risk aversion and demand from Japan's importers. But GBP/JPY upside is limited by Japan's export sales and weak euro sentiment. Daily chart is mixed as MACD is bearish, but stochastics is bullish at oversold levels.


Technical comment:
The daily chart is still negative-biased as the MACD is bearish, stochastics stays suppressed at oversold levels, five- and 15-day moving averages are 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 180.20 and the second target at 180.90. In an alternative scenario, if the price moves below its pivot points, short posisitions are recommended with the first target at 177.60. A break of this target would push the pair further downwards and one may expect the second target at 176.95. The pivot point is at 178.30.


Resistance levels:

180.20

180.90

181.45


Support levels:

177.60

176.95

176


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

Daily analysis of USDX for January 22, 2015

The USDX remains trapped below the resistance level of 93.02, as this instrument is trying to develop a higher high pattern on the daily chart. Anyway, the USDX could do a retracement to the support level of 91.88 to take a breath and continue to develop the bullish bias in the medium term. Remember that a breakout at the resistance level of 93.02 could activate buy orders to the 94.18 level.


USDXDaily.png

The USDX is already doing some zig-zag movements as we can see it on the H1 chart. Currently, the USDX is trying to fill a bearish gap near to the level of 92.70, but on the upside, this instrument could do a breakout at the resistance level of 92.88, with short-term targets at 93.22 in a 1:1 risk and ratio trade.


USDXH1.png

Daily chart's resistance levels: 93.02 / 94.18


Dailychart's support levels: 91.88 / 90.28


H1 chart's resistance levels: 92.88 / 93.22


H1 chart's support levels: 92.55 / 92.35


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 92.88, take profit is at 93.22, and stop loss is at 92.55.


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

Daily analysis of GBP/USD for January 22, 2015

The GBP/USD pair had a non-volatile reaction during yeserday BoE's dovish minutes, as this pair remains inside the range between the 1.5247 and 1.5025 levels on daily chart. Also, the GBP/USD pair is still holding the medium-term targets at the support levels of 1.5025 and 1.4821, because the pair continues to form a bearish pattern on this timeframe.


GBPUSDDaily.png

According to the intraday outlook, the GBP/USD pair worked well on our trading idea with a breakout at the support level of 1.5128 with the target at 1.5084. But during the first hours of the American session, the GBP/USD pair did a rebound at that support level. Now, this pair is consolidating again above the 1.5128 level. In the near term, the pair could rise until the resistance level of 1.5169, where the 200 SMA is located on H1 chart.


GBPUSDH1.png

Daily chart's resistance levels: 1.5247 / 1.5424


Dailychart's support levels: 1.5025 / 1.4821


H1 chart's resistance levels: 1.5169 / 1.5251


H1 chart's support levels: 1.5128 / 1.5084




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 1.5128, take profit is at 1.5084, and stop loss is at 1.5172.


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

Technical analysis of EUR/USD for January 22, 2015

!EURUSD.jpg

When the European market opens, some economic news will be released such as Consumer Confidence, ECB Press Conference, Italian Retail Sales m/m, and Spanish Unemployment Rate. The US will publish the economic data too such as the Crude Oil Inventories, Natural Gas Storage, HPI m/m, Unemployment Claims, and Minimum Bid Rate. So, amid the reports EUR/USD will move with low to medium volatility during this day.


TODAY TECHNICAL LEVELS:


Breakout BUY Level: 1.1660.


Strong Resistance:1.1653.


Original Resistance: 1.1642.


Inner Sell Area: 1.1631.


Target Inner Area: 1.1603.


Inner Buy Area: 1.1575.


Original Support: 1.1564.


Strong Support: 1.1553.


Breakout SELL Level: 1.1546.


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 22, 2015

!USDJPY.jpg

In Asia, Japan will release the BOJ Monthly Report. The US will release a batch of economic data such as Crude Oil Inventories, Natural Gas Storage, HPI m/m, Unemployment Claims, and Minimum Bid Rate. As for the euro area, some important events are expected in the economic calendar such as ECB Press Conference, Italian Retail Sales m/m, and Spanish Unemployment Rate. So, there is a big probability the USD/JPY pair will move with low to medium volatility during the day.


TODAY TECHNICAL LEVELS:


Resistance. 3: 118.65.


Resistance. 2: 118.42.


Resistance. 1: 118.19.


Support. 1: 117.91.


Support. 2: 117.88.


Support. 3: 117.44.


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 EUR/USD for January 22, 2015

EUR/USD


Impact on EURO


Today, the focus has shifted to major economic events such as the ECB press conference and Spanish data. The ECB is expected to initiate its QE program at today's meeting. Two euro area central bank's officials said the ECB has recommended asset purchases of 50 billion euros a month until December 2016. On the other hand, Spanish unemployment rate is the other report affecting today's trading session. We are expecting a minor down tick in the unemployment data.


Impact on USD


The US building permits fell in December. The US commerce department said that the building permits decreased to 1032 thousand in December 2014 from 1052 thousand in November 2014. The other data, housing starts, rose 4.4% in December. The housing starts rose to a rate of 728,000 hitting the highest level since March 2008. Today, the focus has shifted to unemployment claims.


Technical view:


The pair has been making a minor base around 1.1540. It has been consolidating between 1.1540 and 1.1650. The pair is facing strong resistance between 1.17 and 1.1720. When a daily close is at 12ema and 1.1720, we can expect 1.1790 and 1.1870. From an intraday view, the resistance exists between 1.1640 , 1.1650, and 1.1690. The intraweek resistance exists at 1.1870 20Dsma. Until the pair closes above 1.1860 on a daily basis, the trading pattern will be framed between 1.1530 and 1.1860. We recommend selling below the 1.1530 levels.


Support: 1.1590, 1.1530, 1.1460


Resistance :1.1640, 1.1690, 1.1870


1421885758_EURUSDH4.pngThe material has been provided by InstaForex Company - www.instaforex.com

Technical Analysis of GBP/USD for January 22, 2015

The pound fell against the USD after the release of the UK economic report. The UK's unemployment rate in December was 5.8%, lower than in the period since June to August 2014 (6.0%) and lower than a year earlier (7.1%). The British workers' labour pay grew faster than inflation in November. Today, the focus has shifted to the US unemployment data. The cable has been trading in a range between 1.5000 and 1.5275. The pair has the nearest strong resistance at 1.5265 and 20Dsma. Until the pair closes above 20Dsma, use every rise to sell. The pair has intraday resistance at 1.5165 and 1.5200. The panic will be triggered below 1.5000 towards 1.4830 and 1.4800. The hourly resistance exists at 1.5165, 1.5180, and 1.5200. The supports exists at 1.5125, 1.5100, and 1.5059.


GBPUSDH4.pngThe material has been provided by InstaForex Company - www.instaforex.com

Technical Analysis of USD/CAD for Januaryr 22, 2015

Impact on USD


The US building permits fell in December. The US commerce department said that the building permits decreased to 1032 thousand in December 2014 from 1052 thousand in November 2014. The other data, housing starts, rose 4.4% in December. The housing starts rose to a rate of 728,000, the highest level since March 2008. Today, the focus has shifted to unemployment claims.


Impact on CAD


BOC surprises with an interest rate cut. Today, the Bank of Canada announced that it is lowering its target for the overnight rate by one-quarter of one percentage point to 3/4 per cent. The BOC has to deal with with lower interest rates because global crude oil prices have fallen by more than 40 percent since the October and by more than 55 percent since their recent peak in June 2014.


Technical view:


The pair extends its rally towards 1.2394. The pair managed to breach above 200Msma and it is trading above it. In case, if the pair manages to close above 200Msma 1.2325, it can extend its rally towards 1.2500 and 1.2700. The pair gained almost 500 pips in 2 sessions. We have been recommending buying on every dip for the long-term perspective. The pair has intraday support at 1.2325. The intraweek support exists between 1.2167 and 1.2021. As long as the pair trades above 1.2000, use every dip to buy.


USDCADH4.png

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

Technical Analysis of Gold for January 22, 2015

GOLD


The yellow metal fell after the US data and ahead of ECB meeting it is trading with a bearish bias. Today, the metal opened on a bearish note at $1,293.10. The ECB is expected to initiate its QE program at today's meeting. Two euroarea central bank's officials said the ECB has recommended asset purchases of 50 billion euros a month until December 2016. All eyes are focused on the ECB meeting today. The ECB move is an important development in the markets. The metal is facing strong resistance on the weekly descending trend line. The intraweek resistance is at $1,310.00 and 100Wsma. From an intraday view, we recommend buying above $1,300.00 with the targets at $1,303.00 and $1,309.00. The hourly momentum will turn to positive in case, if the metal trades above $1,294.00. The metal has intraday support at $1,288.00 and $1,284.00. We recommend selling below $1,284.00.


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

Daily analysis of major pairs for January 22, 2015

EUR/USD: The EUR/USD pair is largely consolidating while the overall outlook remains bearish. There are support lines at 1.1600 and 1.1550 which might challenge further southerly movements. There are also resistance lines at 1.1750 and 1.1800, which may defend the existing bearish outlook.


1421881775_1.png

USD/CHF: The outlook on this special market remains unchanged. The forecast on this currently abnormal market is bearish but bullish correction is expected to continue gradually in spite of occasional large bearish corrections. Therefore, the USD/CHF pair would move upwards by at least 500 pips this week. Some fundamental figures are expected today and they would have some impact on the markets.


1421881793_2.png

GBP/USD: In spite of some obvious effort by bulls to push the price upwards, the USD is still able to prove it is stronger than the GBP. As the GBP is falling somewhere else, it is falling against the USD and it may reach the accumulation territory at 1.5050. There is a Bearish Confirmation Pattern in the chart.


1421881824_3.png

USD/JPY: This market is now dicey – it is not uncommon for the price to trend downwards and then experience bullish correction in the short-term. I would suggest staying away from this market until there is a predictable directional bias.


1421881852_4.png

EUR/JPY: The long-term outlook on this cross is bearish. While the price is above the EMA 11, it is still below the EMA 56. Although the RSI period 14 is above the level 50, things will not really turn bullish until the price crosses the supply zone at 138.50 to the upside.


1421881881_5.pngThe material has been provided by InstaForex Company - www.instaforex.com