Technical analysis of USD/JPY for January 26, 2015

USDJPYM30.png

Fundamental overview:
USD/JPY is expected to trade in a higher range. It is undermined by flows to the haven JPY and unwinding of JPY-funded carry trades amid increased risk aversion as exit polls showed the Greek party Syriza leading in national elections on Sunday. The latter heightened fears that Greece will eventually exit the eurozone. The pair is also weakened by Wall Street losses Friday (VIX fear gauge rose 1.59% to 16.66, S&P 500 closed 0.55% lower at 2,051.82) due to the the Greek fears, drop in Chicago Fed National Activity Index to -0.05 in December from +0.92 in November, weaker than expected 2.4% MoM increase in the U.S. December existing home sales to 5.05 million (versus forecast +3.0% to 5.08 million), lower Markit flash U.S. January manufacturing PMI of 53.7 versus forecast 54.0 and December's 53.9. USD/JPY is also weighed by the lower U.S. Treasury yields (10-year at 1.818% versus 1.896% late Thursday) and Japan's exports. But USD/JPY losses are tempered by the broadly firmer USD undertone (ICE spot dollar index hit nine-year high 95.481 Friday, last at 95.35 versus 94.21 early Friday), demand from the Japanese importers and ultra-loose Bank of Japan's monetary policy.


Technical comment:
The daily chart is mixed as the MACD is bearish, 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 118.60 and the second target at 119. In an alternative scenario, if the price moves below its pivot points, short posisitions are recommended with the first target at 117.20. A break of this target would push the pair further downwards and one may expect the second target at 116.80. The pivot point is at 117.50.


Resistance levels:

118.60

119

119.30



Support levels:

17.20

116.80

116.50


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Technical analysis of USD/CHF for January 26, 2015

USDCHFM30.png

Fundamental overview:
USD/CHF is expected to trade in a higher range. It is underpinned by the broadly firmer USD undertone (ICE spot dollar index hit nine-year high 95.481 Friday, last at 95.35 versus 94.21 early Friday). The pair is also supported by the franc sales on soft CHF/JPY cross, and negative Swiss interest rates, and the threat of SNB CHF-selling intervention.


Technical comment:
The daily chart is mixed as the MACD is in bearish mode, 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 0.9020 and the second target at 0.9050. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.8650. A break of this target would push the pair further downwards and one may expect the second target at 0.8575. The pivot point is at 0.8750.


Resistance levels:

0.9020

0.9050

0.91


Support levels:

0.8650

0.8575

0.85


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Technical analysis of NZD/USD for January 26, 2015

NZDUSDM30.png

Fundamental overview:
NZD/USD is expected to consolidate with bearish bias. It is undermined by the expectations that the Reserve Bank of New Zealand will leave rates on hold for longer. the pair is also weakened by broadly firmer USD undertone, kiwi sales on soft NZD/JPY cross amid increased investor risk aversion and weak commodity prices. NZD/USD losses are tempered by the kiwi demand on soft AUD/NZD cross and NZD-USD interest differential.


Technical comment:

The daily chart is negative-biased as the 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 0.74. A break of this target will move the pair further downward to 0.7325. The pivot point stands at 0.75. 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 0.7580 and the second target at 0.7625.


Resistance levels:

0.7580

0.7625

0.7635



Support levels:


0.74

0.7325

0.73


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EUR/NZD analysis for January 26, 2014

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Overview:


In our last analysis EUR/NZD was trading upwards. The price tested the level of 1.5168 in a a volume below the average. According to the daily time frame, we can observe supply in a a volume above the average. I have placed Fibonacci retracement to find potential resistance levels and got Fibonacci retracement 61.8% at the price of 1.5225. According to the 4H time frame, we can observe a lack of supply at the price of 1.4887 which caused price to start with bullish movement. Be careful when buying EUR/NZD and watch for potential selling opportunities after retracement. Any larger supply in a high volume may confirm further bearish phase.


Daily Fibonacci pivot levels:


Resistance levels:


R1: 1.5136


R2: 1.5201


R3: 1.5308


Support levels:


S1: 1.4922


S2: 1.4857


S3: 1.4750


Trading recommendations: Be careful when buying the EUR/NZD pair since we are very close to our Fibonacci retracement 61.8%.


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Gold analysis for January 26, 2014

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GOLDH126.png


Overview :


Since our last analysis gold has been trading downwards. The price has tested the level of 1,275.70 in an average volume. According to the daily 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. According to the H1 time frame, we can observe potential end of the bearish corrective phase (abcd). I have placed Fibonacci expansion levels to find potential end of bearish corrective phase and got Fibonacci expansion 161.8% at the price of 1,275.00 (held successfully). Be careful when selling gold and watch for potential buying opportunities on the lows.


Daily Fibonacci pivot points :


Resistance levels :


R1: 1,299.07


R2: 1,300.84


R3: 1,303.70


Support levels :


S1: 1,293.84


S2: 1,291.57


S3: 1,288.77


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


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Technical analysis of GBP/JPY for January 26, 2015

GBPJPYM30.png

Fundamental overview:
GBP/JPY is expected to consolidate with bearish bias.It is undermined by the negative euro sentiment due to the large-scale ECB quantitative easing measures and fears over eventual Greece exit from the eurozone because the anti-austerity Syriza party leads in national elections on Sunday. The pair is also weakened by flows to the haven yen amid increased investor risk aversion and the Japanese exports. But GBP/JPY losses are tempered by the demand from Japan's importers.


Technical comment:
The daily chart is 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 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 176.45. A break of this target will move the pair further downward to 175.75. The pivot point stands at 178.85. 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 179.45 and the second target at 180.15.


Resistance levels:

179.45

180.15

180.90


Support levels:

176.45

175.75

175


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GBP/USD intraday technical levels and trading recommendations for January 26, 2015

gbppppd.pnggbpusdh4.png

Overview:


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 on the H4 chart off the price level of 1.5030. However, since the pair hit the recent high around 1.5260, successive bearish pressure has been applied resulting in the flag pattern on the H4 chart.


As anticipated, within such a strong bearish trend the market failed to fixate above 1.5200 (the upper limit of the flag pattern) followed by H4 breakdown below 1.5150 and 1.5100. If so, further bearish tendency on the market should be anticipated towards 1.4930-1.4900 initially.


The key-support level for today's movement is located at 1.4970 (Thursday's low). Fixation above it probably enhances bullish side of the market towards 1.5150, 1.5260.


Trading recommendations:


The price zone of 1.5280-1.5350 (50% - 61.8% Fibonacci Levels and the upper limit of the daily channel) should be watched for new SELL entries with SL as daily closure above 1.5400.


Stop Loss for the short position taken after H4 closure below 1.5080 should be lowered to 1.5050 to offside some of the risks. Final target can be set at 1.4950.


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EUR/AUD intraday technical levels and trading recommendations for January 26, 2015

euraudwee.png1422279111_eurauddaily.png

The depicted charts of the EUR/AUD pair illustrate a prominent downtrend on both the daily and weekly charts.


The WEEKLY chart shows a long-term Head and Shoulders reversal pattern being established with neckline roughly located around 1.4050.


The daily chart shows:


- The recently broken SUPPORT level at 1.4230 where the previous multiple prominent bottoms were established back in November 2014. This is the nearest RESISTANCE level which comes to meet the pair.


- The recent RESISTANCE level around 1.4400 where a newly established congestion zone was breached last week.


On the other hand, a bearish FLAG pattern is being established above 1.4050 (H&S pattern's neckline). Confirmation requires DAILY closure below 1.4050-1.4000.


Estimated projection target would be located around 1.3820.


On the other hand, daily persistence above 1.4240 pauses the current bearish momentum giving more time for a corrective movement towards 1.4400 to take place.


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Intraday technical levels and trading recommendations for GBP/USD for January 26, 2015

gbpusddaily.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 market has already pushed further below the price level of 1.5140 (projection target of the bearish breakout) reaching the lower limit of the depicted bearish channel around 1.5050.


Initially, the GBP/USD pair has shown bullish recovery off the price level of 1.5050. However, a bearish engulfing daily candlestick was expressed off 1.5210 followed by bearish spike reaching the price level of 1.5000.


Note that bullish persistence above the recently visited low around 1.4950 enhances the bullish side of the market at least towards 1.5100.


gbpusdH4.png


Previous consolidation movement extended between the price levels of 1.5770 and 1.5550, it 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 levels of 1.5050 and 1.4960 recently.


Conservative traders should wait for a bullish pullback towards the recent SUPPLY zone around 1.5370-1.5450 for a low-risk SELL entry. The stop loss should be located above 1.5500 (upper limit of the channel).


For RISKY traders, a high-risk LONG entry can be taken around the price level of 1.4900 (where the lower limit of the depicted channel is located).


Stop Loss should be set as daily closure below entry levels (1.4900 - 1.4880).


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Intraday technical levels and trading recommendations for EUR/USD for January 26, 2015

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The market has been pushing lower aggressively after breaking below the major DEMAND LEVELS around 1.2100 and 1.2000 where historical bottoms were previously established back in July 2012 and June 2010.


EUROZONE current account stepped down to €18.1 billion which is an eight-month low. This is strongly affecting the market leading to the current long-term negative sentiment of the EUR/USD pair. The market is recently challenging historical lows that were established back in 2005 and 2003.


The pair has lost almost 750 pips since the beginning of 2015 as the market is revisiting the lowest rates since November 2003.


After monthly breakout below 1.2000, approximate long-term projection targets would be located near 0.9450.


eurusddaily.png

The market currently looks oversold below the price level of 1.2000 and 1.1900 (prominent psychological SUPPORT and 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.


Conservative traders should wait for a bullish pullback looking for better prices to SELL the pair off. On the other hand, BUYING the pair is considered a low-risk opportunity after such a steep decline especially after a daily candlestick that represents bullish reversal.


The price zone of 1.1540-1.1600 is a recently established SUPPLY zone. Short-term SELL positions can be taken there. Stop loss should be placed slightly above the price level of 1.1680.


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Technical analysis of USD/CAD for January 26, 2015

General overview for 26/01/2015 12:50 CET


The market step by step makes regular higher highs to complete the impulsive wave progression and trades in a very clear bullish golden channel. Please, notice this might be still a part of more complex corrective cycle in the wave iv black as the progression does not look clearly impulsive. This is why any breakout lower from the golden channel would directly expose the intraday support test at the level of 1.2309. However the overall bias is still bullish as the wave v black still has not been made yet.


Support/Resistance:


1.2473 - Swing High


1.2320 - Weekly Pivot


1.2309 - Intraday Support


1.2181 - WS1


Trading recommendations:


As long as the price stays above the level of 1.2309, choppy trading conditions are expected and daytraders should consider to open only a buy orders with SL just below this level, using any scalping strategy to gain 20-30 pips.


usdcad_h1.jpgThe material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of EUR/JPY for January 26, 2015

General overview for 26/01/2015 12:20 CET


According to the latest weekly analysis published on last Friday indicating important changes in overall Elliott wave labeling (You can read more here: https://www.instaforex.com/forex_analysis/55962/), we will now continue the analysis of the alternate scenario.


As it was anticipated last Friday, the market has hit the 131.05 level and now is bouncing back to the upside. This bounce might still be a part of the corrective cycle in the wave 4 blue, possibly in a shape of a triangle pattern, but any breakout higher above the level of 138.75 would indicate that the bottom for the wave 5 blue is in place. Nevertheless, on intraday time frames the market is still trading in the bearish zone and below the weekly pivot at the level of 132.95. Only a sustained breakout above the intraday resistance at the level of 134.19 would open road to test the level of 137.63. Otherwise a choppy trading conditions are expected.


Support/Resistance:


128.22 - WS1


130.14 - Swing low


131.83 - Intraday Support


132.95 - Weekly Pivot


134.19 - Intraday Resistance


134.95 - WR1


137.63 - Technical Resistance


Trading recommendations:


As long as the price stays below the level of 134.19, choppy trading conditions are expected, and daytraders should consider to open only a sell orders with SL just above this level, using any scalping strategy to gain 20-30 pips.


eurjpy_d1.jpgeurjpy_w1.jpgeurjpy_h4.jpgeurjpy_h1.jpg

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Weekly technical levels for GBP/USD for January 26-30, 2015

The weekly technical levels for GBP/USD pair:


gbpusd_PP.png


Review :



  • The GBP/USD pair called for the bearish market from the price of 1.5151 towards the level of 1.4950; but the EUR/USD pair recovered again to start going upwards close to 1.5039 today.

  • This week, the levels of 1.5151 and 1.4950 represent the resistance 1 and the double bottom respectively.

  • It should be noted that the range of the last week was not so large. It was around 262 pips.

  • The support will be set at the level of 1.4889, but the double bottom is going to be set at 1.4950 today.

  • The minor resistance has been set at 1.5050 (the weekly pivot point); and the price of 1.5151 represents strong resistance.

  • We expect volatility of more than 280 pips this week. As a rule, the market is highly volatile if the last day had a huge volatility.

  • If the trend is of an upside character, then the strength of the currency will be defined as following: GBP is in uptrend and USD is in downtrend.



gbpusdh1.png



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Weekly technical levels for EUR/USD for January 26-30, 2015

The weekly technical levels for EUR/USD pair:

eurusd_PP.png


Overview :



  • The level of 1.1114 is going to form a double bottom on the H1 chart from the last week. Today, the pair has formed new double bottom at the point of 1.1097. According to the previous events, the price of EUR/USD is going to move between 1.1332 and 1.1110. It should be also noted that the market was very stable, and trend was also very clear (downward) last week. We expect bearish market today from the area of 1.1332. Moreover, the weekly pivot point has been set at the 1.1332 level for that it will act as strong resistance. So, sell below the level of 1.1332 (this level represents the weekly pivot) with the first target of 1.1114, it might resume to 1.0988 tomorrow in order to test the weekly resistance one. However, the stop loss should be always taken into account, therefore, it will be very beneficial to set your stop loss at the price of 1.1363.



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#USDX technical analysis for January 26, 2015

The Dollar index has reached my target above 95 and is making a pullback. Longer-term trend remains bullish. In the short-term the price remains supported so we should not be surprised if we see a new higher high early this week. Trend is very strong, and we should not bet against at this point.


usdx.jpg

At 94.80 we find the tenkan-sen support for the short-term. The Dollar index could make a deeper pullback towards 94 in the short-term. Such a pullback will not cancel the bullish trend, but, on the other hand, it could fuel it for a new stronger uptrend.


usdxd.jpg

The weekly chart remains fully bullish and we could see some pause in the uptrend at the current levels. We have reached very close to the 50% retracement level at 95.70. Breaking above it will could signal even more upside towards 101 where the monthly 61.8% retracement is found. Trend is very strong and bullish. Bulls should better raise their stops, and I prefer not to bet against this trend.


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Gold technical analysis for January 26, 2015

Gold price is weak starting this week with support very close to $1,280. Breaking below that level could signal the start of a deeper correction towards $1,260 or lower. Gold short-term trend is bearish while medium term trend is bullish targeting $1,330.


goldh4.jpg

Red lines = support


Two red lines on the chart above show the support at $1,280-75. The current price action is below the short-term Ichimoku cloud and is challenging the short-term support. I believe, that once support is broken, we should expect a pullback towards $1,260 or even $1,230.


goldd.jpg

At $1,265 we find the tenkan-sen support, while at $1,238 is the Kijun-sen support on a daily basis. The price is above the Ichimoku cloud. Medium-term trend is bullish as long as the price is above the cloud support. Possible upside target is at $1,330.


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Technical Analysis of EUR/USD for January 26, 2015

Traders are keeping an eye on the Greek election. Today, the radical left party has won the election. The Euro drifted to a fresh 11-year low. At Friday's session, the euro made a low at 1.1115 against the USD. After the ECB decision on 1.2 trillion euros, the pair lost more than 500 pips in 2 sessions. Today, another important report in the European economic calendar will be German Ifo business climate data. We are expecting an uptick from 105.50 in December.


As we recommended in Friday's article, in case if the pair breaks below 1.1300, we can see 1.1000. The pair made a low at 1.1115. The pair has weekly resistance at 1.1460 and 1.1600. Until the pair closes above 1.1600, use every rise to sell. The pair has intraday resistance at 1.1291, above this at 1.1330. The safe buying will be triggered only above 1.1330 with the targets at 1.1400, 1.1460, and 1.1500. Currently, there is no hope for bulls to take control over the pair. We recommend fresh selling at the current market price at 1.1200 with the targets at 1.1100, 1.1050, 1.1000, and 1.0700.


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Forecast of GBP/USD for January 26, 2015

The cable fell to multi-year low against the USD. The US dollar is enjoying its bullish run trading at a 12-year high. The cable closed below 1.5000 in the previous week. This week, the cable's fate will decided after tomorrow's UK's prelim GDP and Wednesday's US Federal Reserve's meeting. Today, the focus has shifted to BBA mortgage approvals. It's been in a downtrend for the last 5 months. The cable has a strong support zone between 1.4830 and 1.4800. The pair has the nearest resistance at 1.5036. In case if the pair breaches above 1.5040, it can challenge up to the 1.5080 and 1.5105 levels. Until the prices close below 1.5100, use every rise to sell. The cable has intraday support at 1.4985 and 35DEMA. We recommend fresh selling below the 1.4980 levels. The pound remained at 18-month lows against the USD.


1422235780_GBPUSDH4.png


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Technical Analysis of Gold for January 26, 2015

The precious metal gave a downtick on Friday's session ahead of the Greek election. The election result has just come out. The Greek radical left party wins election. The yellow metal takes this opportunity to move northward. At the early Asian session, the metal is trading with bullish bids, expecting that anti-austerity Syriza party implements new policies to the creditors. The fall in oil prices is also supporting gold as a safe-haven asset. The metal has been facing strong resistance at $1,307.00. In the previous week, the metal managed to close above 50Wsma. Now, the focus has shifted to Wednesday's Federal meeting. The policy makers have repeatedly announced their plan to raise interest rates during 2015.


The weekly support levels exist at $1,285.00 and $1,267.00. Until the prices close above $1,267.00, bulls have an upper hand. Bulls can challenge $1,340 in case if the price breaches $1,307.00 and 100Wsma. We can see fresh buying above $1,307.00 with the targets at $1,322.00, $1,324.00, $1,330.00, and $1,340.00. On the h4 chart, the prices are closed and trading below 35DEMA levels. The 34-hr sma is providing enough support to the prices. We recommend intraday fresh buying only above $1,300.00 with the targets at $1,304.00 and $1,307.00. Strong upward move will emerge only above $1,307.00. The intraday support exists at $1,294.00. The metal will face some weakness in case if the prices fall below $1,294.00 and panic will be triggered below $1,279.00. We recommend selling below $1,283.00 with the targets at $1,280.00 and $1,272.00. Wednesday's meeting will provide clear direction for the near- and medium-term view.


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Forecast and trading recommendations on GBP/JPY for January 26, 2015

The cross is trading at a 2-months low. On the monthly chart, the cross fell below the 200Msma and is still trading below it. The cross has parallel support between 174.75 and 174.50. On the weekly chart, the pair closed below the 20Wsma and made a minor double top at 180.53. The weekly support level exists between 175.80 and 175.25 and 50Wsma. Today, at early Asian session, the cross managed to hold the previous week's low at 176.15 and is trading at 176.64. In case if the price breaks below 176.15, we can expect 175.80 and 175.20 immediately. A weekly close is below 175.20 and 50Wsma, the medium-term view turns to more bearish. The trading pattern is framed between the 175.20 and 180.50 levels. Either side of breakout will provide a clear way for the medium trend.


On the daily chart, the pair has been testing its fate at 200Dsma and a 2-week low at the175.80 levels. The pair broke the near- and medium-term moving averages and closed below them. So, it's clear bulls have the last hope between 175.80 and 175.20. If a weekly close is below, these levels can extend the cross fall towards 171.50. On the chart, we can observe the support trend line became the resistance trend line. Until the pair closes above the resistance trend line, use the rally to sell will favour. We recommend fresh selling only below 175.00.


GBPJPYDaily.png


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Technical analysis of EUR/USD for January 26, 2015

!EURUSD.jpg

When the European market opens, some economic news will be released such as German Ifo Business Climate. However, the US economic calendar lacks any reports. So, in this context EUR/USD will move with low to medium volatility during this day.


TODAY TECHNICAL LEVELS:


Breakout BUY Level: 1.1219.


Strong Resistance:1.1213.


Original Resistance: 1.1202.


Inner Sell Area: 1.1191.


Target Inner Area: 1.1165.


Inner Buy Area: 1.1139.


Original Support: 1.1128.


Strong Support: 1.1117.


Breakout SELL Level: 1.1111.


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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Daily analysis of major pairs for January 26, 2015

EUR/USD: The EUR/USD pair is now one of the weakest of the popular pairs. Since January 2, 2015, the price has fallen by roughly 900 pips. There was a massive drop in the market last week, enabling the price to drop below the support line at 1.1150. Although the price bounced upwards after that, the support line would be breached soon.


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USD/CHF: The outlook on this special market remains unchanged. The bias on this currently abnormal market is bearish, but the 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, although the upwards movement would be slow and gradual.


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GBP/USD: One nice thing about the Cable is that it is now going in a clean positive correlation with the EUR/USD pair. The two pairs tend to go in positive correlation with each other – an established habit. The Cable and the EUR/USD pair are both dropping, but the drop in the latter is more significant than the drop in the former. On the Cable, further drop is expected this week.


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USD/JPY: The situation on the USD/JPY pair is a kind of dicey right now; but it is more probable that the pair would go further south, as a result of apparent strength in the JPY. This market can reach the demand level at 117.00 soon.


4.png

EUR/JPY: This is one of the weakest among the JPY pairs – largely because of the strong weakness in the EUR itself. On Friday, January 23, 2015, the price closed on a bearish note. More southerly movement is expected this week.


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Technical analysis of USD/JPY for January 26, 2015

!USDJPY.jpg

In Asia, Japan will release the Trade Balance and Monetary Policy Meeting Minutes. The US will not publish any economic reports. So, there is a big probability the USD/JPY pair will move with low volatility during the day.


TODAY TECHNICAL LEVELS:


Resistance. 3: 119.24.


Resistance. 2: 118.01.


Resistance. 1: 117.78.


Support. 1: 117.50.


Support. 2: 117.27.


Support. 3: 117.04.


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 Silver for January 26, 2015.


Technical outlook and chart setups:


Silver cleared its initial extension at $18.30/40 levels last week. The metal could be poised to push higher towards $18.90 levels, the next extension. Please note that the metal has already moved, unfolding an inverted head and shoulder reversal since $15.50 levels. One should not be surprised to see $21.00 levels being hit soon enough. Immediate support is seen at $17.90 levels, followed by $17.40/50 and lower while resistance is seen at $18.90/19.00 levels and higher respectively. It is recommended to keep buying on dips as a simple trading strategy. A long-term bullish trend might have already resumed.


Trading recommendations:


Look to buy on each dip.


Good luck!




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Technical analysis of EUR/JPY for January 26, 2015


Technical outlook and chart setups:


The EUR/JPY pair has dropped by 5 waves down from 149.80 to sub 131.00 levels, depicted with arrows here. It looks like the pair is preparing for a counter trend rally that could extend towards 142.30 levels. Immediate support is seen at sub 130.00 levels, while resistance is seen at 133.00 respectively. A break above 133.00 would confirm that the rally has resumed and it would be recommended to initiate long positions on dips there after. As discussed earlier, the bigger picture indicates that EUR/JPY might be heading into a deeper correction lower towards 115.00/116.00 levels. For now, a 3-wave counter trend rally seems more probable.


Trading recommendations:


Could buy on dips after 133.00 breaks.


Good luck!




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

Daily analysis of USDX for January 26, 2015

The bullish momentum at the USDX seems to be unstoppable, because during the last session, the USDX did a strong breakout at the 94.18 level. Now, the next resistance zone on this instrument is the level of 97.52. Currently, from the technical view, the USDX is overbought, as the MACD indicator is reaching those extreme levels in the upside and the USDX could start to form a bullish pattern.


USDXDaily.png

We can see on the H1 chart a bullish formation above the support level of 94.38 and the near-term resistance is at the level of 95.48, the latest Friday's high. The 200 SMA is still bullish, but the MACD indicator is bearish. Anyway, we cannot neglect the fact that the USDX was performing a retracement to favor the current bullish bias. Because of it, this instrument could make a breakout at the resistance level of 95.48 with a target placed at the 96.63 level.


USDXH1.png

Daily chart's resistance levels: 97.52 / 99.17


Dailychart's support levels: 94.18 / 93.02


H1 chart's resistance levels: 95.48 / 96.63


H1 chart's support levels: 94.38 / 94.02




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 95.48, take profit is at 96.63, and stop loss is at 94.32.


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

Daily analysis of GBP/USD for January 26, 2015

The GBP/USD pair is trying to reach new low levels during this week, as this pair peformed a breakout at the support level of 1.5025. It opened the way for more falls to the support level of 1.4853 that could be reached in the coming days. Also, the main bias on the GBP/USD pair remains very bearish, because the 200 SMA is still pointing to the downwards.


GBPUSDDaily.png

On the H1 chart, the GBP/USD pair is currently forming a lower low pattern below the 200 SMA. Besides, this pair seems to have formed a double top pattern next to the resistance level of 1.5030. Currently, the short-term targets remain at the 1.4927 and 1.4849 levels, as the GBP/USD continues to stay bearish at least in the short term. The MACD indicator stays in the positive territory, but in the coming days, that situation could change.


GBPUSDH1.png

Daily chart's resistance levels: 1.5025 / 1.5247


Dailychart's support levels: 1.4853 / 1.4714


H1 chart's resistance levels: 1.5000 / 1.5084


H1 chart's support levels: 1.4927 / 1.4849




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 1.4927, take profit is at 1.4849, and stop loss is at 1.5006.


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