Technical analysis of AUD/USD for May 6, 2015

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Overview:

  • The AUD/USD pair rose from the level of 0.7934 extending further to as high as 0.7980 right now. The price has been staying above the ratio of 50% Fibonacci retracement levels since last week. Besides, the price has formed a strong support level at 0.7934, but a minor resistance is placed at 0.7970. Futhermore, this strong level has been still traded between 50% of Fibonacci retracement levels and the double top at the price of 0.8075 on the H4 chart. So, the market will probably start showing the signs of bullish market again in order to indicate a bullish opportunity from the level of 0.7970 with targets towards the strong resistance around 0.8042.
  • At the same time, the last bullish wave is at the double top at 0.8075. Meanwhile, bulls were forced to pull back below the level of this area; therefore, this level will form strong resistance with a view to indicate a bearish opportunity below the resistance (0.8075). Nevertheless, if the trend closes below the level of 0.8042, the market will call for downtrend to continue bearish trend towards the daily pivot point at 0.7763.
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Technical analysis of USD/CAD for May 6, 2015

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Overview:

  • The market of the USD/CAD pair is going to continue showing the signs of weakness and condition of lacking strength following the level of 1.2154 (23.6% of Fibonacci retracement levels). Consequently, the level of 1.2150 has been representing strong resistance for that the USD/CAD pair support was broken and turned to resistance on the H1 chart yesterday. Furthermore, according to the previous events, the price has been still moving between 1.2150 and 1.1914. The double bottom will be at the point of 1.1914 at the same price. So, if the trend cannot break and close above the level of 1.2150, it will be rather convincing downside momentum and the structure of the fall does not look corrective, so the market will indicate a bearish opportunity below the level of 1.2150. Therefore, it will be a good sign to sell at this level in order to continue downwards to 1.1914 to test double bottom. Moreover, if the USD/CAD pair breaches the double bottom at the level of 1.1914, the trend will form a fresh low around 1.1881.
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EUR/NZD analysis for May 06, 2015

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Overview:

Recently, EUR/NZD has been trading upwards. As we had expected, the price tested the level of 1.5029 in a high volume. The short-term trend is bullish. Be careful when selling EUR/NZD. Our objective point at the price of 1.5000 (Fibonacci expansion 161.8%) has been met. According to the daily time frame, we can observe supply in a very low volume. I placed Fibonacci retramcenet to find next bullish objective points and got Fibonacci retracement 50% at the price of 1.5155 and Fibonacci retracement 61.8% at the price of 1.5450.

Fibonacci Pivot Points:

Resistance levels:

R1: 1.4855

R2: 1.4890

R3: 1.4950

Support levels:

S1: 1.4740

S2: 1.4705

S3: 1.4645

Trading recommendations: Be careful when selling EUR/NZD and watch for potential buying opportunities after a retracement.

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Technical analysis of EUR/JPY for May 6, 2015

General overview for 06/05/2015 12:10 CET

The current Elliott wave count does not really support the impulsive decline from the wave B top at the level of 135.26 as it can be more clearly labeled as a three wave decline. This is why the recent local high might be alternatively the wave (iii) green high instead of a swing top. This means that we can expect another short-term rally above that level if the technical support at the level of 132.55 is not violated. In other words, the price must go below the weekly pivot at the level of 133.34 to be considered intraday bearish.

Support/Resistance:

135.26 - Swing High

134.88 - Intraday Resistance

134.03 - Intraday Support

133.42 - Weekly Pivot

132.55 - Technical Support

Trading recommendations:

Daytraders should consider opening sell orders from the current market levels with SL above the level of 135.27 and TP at the level of 133.42 with a possible extension lower to the level of 132.55.

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Technical analysis of USD/CAD for May 6, 2015

General overview for 06/05/2015 11:50 CET

The corrective cycle to the downside looks like a typical zig-zag pattern that completed the downside move at the level of 78% Fibo and now might be ready to reverse higher. The intraday support at the level of 1.2003 should provide enough strength for a bounce, but the real hurdle is at the intraday resistance at the level of 1.2086. Only a sustained, impulsive breakout above this level will be considered as the beginning of a new impulsive wave to the upside.

Support/Resistance:

1.1943 - Swing Low

1.9999 - 78%Fibo

1.2003 - Intraday Support

1.2086 - Intraday Resistance

1.2115 - Weekly Pivot

Trading recommendations:

Daytraders should consider opening buy orders from the current market levels with SL below the level of 1.1999 and TP at the level of 1.2086 with a possible extension higher to the level of 1.2130.

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Gold analysis for May 06, 2015

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Overview:

Since our last analysis, gold has been trading upwards. As we had expected, the price tested the level of $1,199.58 in a high volume. According to the daily time frame, we can observe demand in a volume above the average. Our Fibonacci retracement 61.8% (support) at $1,174.00 was held successfully. Major resistance is seen around the level of $1,220.00. The short-term trend is bullish. According to the H4 time frame, we can observe supply in a high volume. I placed Fibonacci expansion to find potential resistance levels and got Fibonacci expansion 61.8% at $1,220.00, Fibonacci expansion 100% at $1,250.00, and Fibonacci expansion 161.8% at $1,300.00. I placed Fibonacci retracement to find potential support levels. I got Fibonacci retracement 38.2% at the price of $1,188.00, Fibonacci retracement 50% at the price of $1,184.00 and Fibonacci retracement 61.8% at the price of $1,181.00.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,197.00

R2: 1,201.00

R3: 1,206.90

Support levels:

S1: 1,187.00

S2: 1,183.50

S3: 1,178.10

Trading recommendations: Be careful when selling gold at this stage and watch for potential buying opportunities (buy on dips).

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#USDX wave analysis for May 6, 2015

The US dollar index reached the 38% retracement and reversed lower yesterday as the greenbach was weaker again. The trend remains bearish. Time for a fresh low has come in order to complete the downward formation and reach the Head and Shoulders target of 93. The US dollar index is forming an A-B-C correction and, I believe, we are at the final stages of wave C down.

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Green line = H&S neckline resistance

Orange lines = downward sloping channel

Blue lines = H&S projection of target

The USD index is inside a downward sloping channel. As long as the price is inside this channel, the trend will remain bearish. The price is also below the Ichimoku cloud. So resistance is found at 96 and our downside target is at 93-50.93 area.

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The USD index is most probably at its final stages of the decline of wave C and, I believe, this will complete an A-B-C three wave correction. The trend remains bearish. I expect an upward reversal once wave C completes.

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Gold wave analysis for May 6, 2015

Gold price has most probably made at least a short-term top at $1,199.50 after a 5 wave decline. The upward bounce was a three wave move that reached the target of 61.8% retracement. I believe that now it is time to go short again with $1,150 as a target for the short term. Support is at $1,185. If this level is broken, sellers should add it to their short positions.

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Blue line = trend line support

Gold price has also broken the blue trend line support from $1,170. The price is getting rejected once again by the Ichimoku cloud. The 61.8% retracement was the level to sell. Support is at $1,185 and I would add this level to short positions if the price broke below it. The minimum short-term target is at $1,150 specially if the price breaks below $1,170.

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The weekly chart remains bearish as the price is still below the Ichimoku cloud and below the yellow line kijun-sen indicator. Weekly support is at $1,170-80 area. A break below this level will push gold price at least towards $1,150. Critical longer-term support is at $1,130. Breaking below that level will push gold to fresh lows at $1,000 or even $900.

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Technical analysis and trading recommendations on EUR/NZD for May 06, 2015

New Zealand's unemployment rate and employment change on q/q basis were released at the Pacific session. The kiwi dollar is drifting against USD, EUR, GBP & AUD. Against USD & GBP, the kiwi has reported big losses at the Asian session today. The unemployment rate remained at 5.8 percent in Q1 2015, unchanged from a revised rate of 5.8 percent for the final quarter of 2014. While the unemployment rate was unchanged, there were 3,000 more unemployed people over the quarter. In Q1 2015 the number of employed people increased by 16,000 (0.7 percent); the working-age population was up 0.6 percent, resulting in the employment rate of 65.5 percent, unchanged from the previous quarter. The employment growth is still strong.

Technical view: We still recommend buying this cross at 1.4570 (the article dated April 30, 2015) with the targets at 1.4685, 1.4785, and in the medium term at 1.4820,1.4860, and perhaps 1.4930. Today at the Asian session,the cross made a high at 1.4970. All the given targets have been hit. We minted 400 pips in this cross. Today, the pair managed to trade above 100Dsma and 100Dema. We expect today the cross can touch around 1.5000 levels. On the downside, the pair probably made a double bottom around 1.4706 and changed the direction. We recommend moving the TSL to 1.4700 from earlier sl 1.4170 with a new target at 1.5200. 20wsma is found at 1.4835. For bulls, to regain the new strength and to make new highs, they must close above 1.4835 20Wsma. Fresh buying is advised above 1.5000 or sue a dip to buy again.

Trade: Target revised at 1.5200. 1430886406_EURNZDH4.png


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Technical analysis and trading recommendations on GBP/AUD for May 06, 2015

The cross is extending losses after the RBA cut the interest rate to 2.00%. During today's Asian session, the Australian retail sales was released. The retail sales rose 0.3% in March 2015. This follows a rise of 0.4% in February 2015 and a rise of 0.4% in January 2015. In volume terms, the trend estimate for Australia's turnover rose 0.7% in Q1 2015. The RBA kept the interest rate down to encourage demand. Ahead of the UK's election tomorrow, the pound is trading higher against the USD and lower against CAD & AUD. The cross broke and closed below a 6-month ascending trend line. The cross has parallel support at 1.9097 which is April 28th low and 1.9030 which is April 10, 2014 low respectively. The selling pressure will be doubled below 1.0900 with an immediate target at 1.8910 and 1.8870. Strong support is seen at 1.8827 previous swing low, 200Dsma is found at 1.08730 and 50Wsma is found at 1.8630. We recommend selling below 1.9090 with an immediate target at 1.9030. Below 1.9030, the real panic ignites towards 1.8910 and 1.8870. Until the pair closes below 1.9265, use every rise to sell.

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Technical analysis and trading recommendations on Gold for May 06, 2015

The yellow metal extended rally for the 2nd day in a row. Today at the Asian session, the metal managed to hold with gains. We recommended buying above $1,185.00 in Monday's article with targets at $1,190.00, $1,192.00, and $1,195.00. In the latter case, it can retest $1,197.00 and $1,200.00. The metal touched $1,199.40 at yesterday's session and hit all my targets. If we look at the complete picture on the daily chart, the lower tops and lower bottom formation are still active. The nearest support is seen between $1,178.00 and $1,175.00. Below these levels, $1,165.00 is crucial this week. In case, the price closes below $1,165.00, we can expect $1,135.00 in the near term. As we recommended earlier (Monday's article), the price has been making a base at $1,175.00. The U.S. Census Bureau and the U.S. Bureau of Economic Analysis, through the Department of Commerce, announced yesterday that the goods and services deficit was $51.4 billion in March, up $15.5 billion from $35.9 billion in February. This has been the worst data for the recent 6 years. The yellow metal used this opportunity to fly towards the crucial level of $1,200.00. At yesterday's session, the metal managed to close above 50Dsma. Today at the Asian session, the metal is facing strong resistance at $1,195.50 20Dsma. The trade favors buying above $1,196.00 with sl $1,192.00, targets are at $1,199.00, $1,206.00, and even $1,208.00. The hourly 61.8FE seems at $1,200.00 and swing high is found at $1,206.90. On the higher side, the yellow metal edged lower and probably made a double top at $1,214.70. Bulls must breach $1,215.00 to extend to $1,222.00, $1,224.00,$1,225.00, $1,234.00, and $1,240.00 in the coming weeks. This is too early to analyse $1,224.00 and $1,240.00, we will update later. The dips buying is still valid, but it is unable to take place at higher levels. For an intraday session, we recommend selling below $1,190.00 with targets at $1,186.00, $1,183.00, $1,180.00, and $1,177.00. Below $1,184.00, the intraday panic will be triggered and the $1,208.00 will be erased. The price has been consolidating for 4 weeks between $1,175.00 and $1,223.00. Finally, it gave a break on the downside, made a double bottom in the four-hour chart and changed the direction. The current trading pattern is formed between $1,174.00 and $1,200.00. Until the price closes below $1,200.00, the probability of another break on the lower side is high. Weekly strong support is found at $1,165.00.

Trade: Buying above $1,196.00, selling below $1,190.00.

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Technical analysis and trading recommendations on EUR/USD for May 06, 2015

The euro advanced 0.5% against the USD at Tuesday's session. Spain joined the recovering countries in the eurozone after Germany and France. The near-term outlook for the eurozone's economy has clearly improved.

Spanish unemployment - Registered unemployment level fell to 118 923 people in April, the historical biggest drop. In seasonally adjusted terms, unemployment decreased by 50,160 people, the best figure recorded in April.

Upcoming events:Traders eye Spanish and Italy services PMI. French and Germany final services PMI are due today. At last, euro area retail sales and final services are also released today. On the US front, there are some major events in the economic calendar. Today's trade depends on how the USD behaves. We expect Spanish and Italian services will be on the positive side. French and Germany data may be disappointing or in a neutral stance. The euro retail sales data can be flat or a further decline.

Technical view: The pair paused a 2-day losing streak and made 0.5% gains at yesterday's session. The pair managed to hold the support at 1.1050 (previously acted as resistance) and changed the direction. Today ahead of major data, the euro is trading lower against USD at the Asian session. The pair has major resistance at 1.1265 100Dsma and 1.1300 100Dema. Until the pair closes below these levels, technically bearish views remain in play. The pair made a double top at 1.1225. The pair has been rejected from 1.1225 for four days in a row. 20Wsma seems at 1.1200, at yesterday's session the pair was unable to close above it. Today it is unable to breach 20Wsma. The charts clearly show the weakness is adding further. A minor upmove is expected above 1.1225, 1.1265, 1.1275, and 1.1290. A strong upmove will ignite in case the price closes above 1.1300 towards 1.1390 and 1.1475. Due to the divergences between the US Fed and ECB policies, the longer-term outlook for the pair favors bears. The recent uptrend of this pair has happened because the USD is weakening further.

Intraday:Support is found at 1.1170 and 1.1150. Resistance seems at 1.1200 and 1.1225. We recommend risk buying above 1.1200, safe buying could be above 1.1230 for intraday targets at 1.1270, 1.1290, and 1.1330. In the latter case we can expect 1.1390 and 1.1430.Traders, please keep in mind 1.1225 and 1.1300 are acting as strong resistance. Both the given levels are on closing basis. The weekly trend favors bears. To breach this trend, bulls first needs to close above 1.1225, later 1.1300. In these cases, 1.1390, 1.1435, and 1.1475 are not ruled out. On the bearish front, we recommend selling below 1.1150 with targets at 1.1125, 1.1100, 1.1080, and 1.1060

Trade: Risky traders could buy above 1.1200, safe traders could buy above 1.1230.

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Elliott wave analysis of EUR/NZD for May 6 - 2015

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Technical summary:

The correction in wave iv ended already at 1.4724 before moving higher in wave v with the first possible upside target coming in at 1.5109 and the next target at 1.5350. Support is now found at the top of wave iii at 1.4899, which ideally will protect the downside for the rally towards 1.5109 as maybe even higher to 1.5350.

A five wave rally can be counted from the 1.3880 low, but just because we can count five waves does not mean a top is in place. What if the the rally, we currently have labeled iii only is wave i/ of iii which means much more upside action will be coming. So stay alert, but do not try selling EUR as that could hurt you badly.

Trading recommendations:

We bought EUR again at 1.4825 and will move our stop higher to 1.4765. If you are not long EUR yet, then buy EUR near 1.4944 with the same stop at 1.4765.

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Elliott wave analysis of EUR/JPY for May 6 - 2015

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Technical summary:

First of all, please notice we have changed our labeling slightly. So we have blue wave iii at 135.29 and the correction to 133.08 was only blue wave iv and we are currently working our way higher in blue wave v towards 135.82. This means the top we expect near 135.82 only will be red wave iii and should be followed by a correction in red wave iv that most likely will not move below 133.08 before red wave v higher to 137.54 to end the first larger impulsive cycle of the long-term low at 126.02.

Trading recommendations:

We are long EUR from 128.85 and will move our stop higher to 133.75. Upon a break above 135.29, we will move our stop higher to 134.40. If you are not long EUR yet, then buy EUR near 134.49 with a stop at 133.90 and take profit near 135.82.

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Technical analysis of USD/JPY for May 06, 2015

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Fundamental outlook:
USD/JPY is expected to trade in a lower range. Liquidity is thin in Asia today as financial markets in Japan are shut for a public holiday. USD/JPY is undermined by the weaker USD sentiment (ICE spot dollar index last 95.10 versus 95.44 early Tuesday) after much wider-than-expected U.S. March trade deficit of $51.37 billion (versus forecast $42.5 billion). USD/JPY is also weighed by the flows to haven JPY amid increased risk aversion (VIX fear gauge rose 11.36% to 14.31, S&P 500 closed 1.18% lower at 2,089.46 overnight) on the bad U.S. trade data, sharp 4.06% decline in Shanghai Composite Index on Tuesday, and concerns about Greece's standoff with its creditors. But USD sentiment is soothed by the surprise rise in U.S. ISM non-manufacturing PMI to 57.8 in April from March's 56.5 (versus forecast for drop to 56.3). USD/JPY losses are also tempered by the higher U.S. Treasury yields (10-year at 2.181% versus 2.135% late Monday) and sell-yen orders from Japan's importers.

Technical comment:
The daily chart is mixed as MACD is bullish, five-day moving average is above 15-day moving average and is advancing but stochastics is turning bearish near overbought levels, bearish outside-day-range pattern was completed on Tuesday.

Trading recommendations:
The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 0.7435. A break of that target will move the pair further downwards to 0.7410. The pivot point stands at 0.7580. 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, long positions are recommended with the first target at 0.7635 and the second target at 0.7665.

Resistance levels:
120.50
120.80
121.45

Support levels:
119.55
119.20
118.75

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Technical analysis of USD/CHF for May 06, 2015

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Fundamental overview:

USD/CHF is expected to consolidate with a bearish bias after hitting a near-three-month low at 0.9233 on Tuesday. It is undermined by the weaker USD sentiment and franc demand on soft EUR/CHF cross. But USD/CHF losses are tempered by the negative Swiss interest rates and threat of Swiss National Bank CHF-selling intervention.

Technical comment:
The daily chart is negative-biased as MACD is bearish, stochastics stays suppressed at oversold levels, 5 and 15-day moving averages are falling.

Trading recommendations:
The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 0.9220. A break of that target will move the pair further downwards to 0.9170. The pivot point stands at 0.9340. 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, long positions are recommended with the first target at 0.9420 and the second target at 0.9500.

Resistance levels:
0.9420
0.95
0.9575
Support levels:
0.9220
0.9170
0.9125

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Technical analysis of NZD/USD for May 06, 2015

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Fundamental overview:

NZD/USD is expected to trade in a lower range. It is undermined by higher-than-expected New Zealand 1Q unemployment rate of 5.8% (versus forecast 5.5%) and 3.5% drop in Fonterra's GDT Price Index and a 1.8% fall in an average price for whole milk powder to $2,386/mt at the latest Global Dairy Trade auction, increased risk aversion, and Kiwi sales on buoyant AUD/NZD cross. But NZD/USD losses are tempered by the weaker USD sentiment and NZD-USD interest differential.

Technical comment:
The daily chart is negative-biased as MACD and stochastics are bearish, 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 long as it remains below the pivot point. Short positions are recommended with the first target at 0.7435. A break of that target will move the pair further downwards to 0.7410. The pivot point stands at 0.7580. 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, long positions are recommended with the first target at 0.7635 and the second target at 0.7665.

Resistance Levels:
0.7635
0.7665
0.77

Support levels:
0.7435
0.7410
0.7365

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Technical analysis of GBP/JPY for May 06, 2015

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Fundamental outlook:

GBP/JPY is expected to consolidate with a bullish bias. It is supported by the buoyant GBP/USD undertone. But an upward move of GBP/JPY is limited by flows to haven yen amid increased risk aversion and sell-euro orders from Japan's exporters. However, the sterling sentiment is dented by the worse-than-expected drop in U.K. CIPS / Markit construction PMI to 54.2 in April from March's 57.8 (versus forecast 57.5). GBP/JPY upward move is also hampered by uncertainty over outcome of Thursday's U.K. general election, increased risk aversion, and sterling sales on the buoyant EUR/GBP cross.

Technical comment:
The daily chart is mixed as MACD is bullish, 5 and 15-day moving averages are advancing but stochastics is bearish at overbought levels.

Trading recommendations:
The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. As long as the price holds above its pivot point, long positions are recommended with the first target at 182.80 and the second target at 183.45. In the alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 180.75. A break of this target is likely to push the pair further downwards, and one may expect the second target at 180.25. The pivot point is at 181.40.

Resistance levels:
182.80
184.45
185

Support levels:
180.75
180
179.35

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Technical analysis of EUR/USD for May 06, 2015

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When the European market opens, some economic news will be released such as Retail Sales m/m, Final Services PMI, German Final Services PMI, French Final Services PMI, Italian Services PMI, and Spanish Services PMI. The US will publish some macroeconomic reports too such as the Crude Oil Inventories, Fed Chair Yellen Speech, Prelim Unit Labor Costs q/q, Prelim Nonfarm Productivity q/q, and ADP Non-Farm Employment Change. So amid the reports, EUR/USD will move with low to medium volatility during this day.


TODAY TECHNICAL LEVELS:


Breakout BUY Level: 1.1234.


Strong Resistance:1.1228.


Original Resistance: 1.1217.


Inner Sell Area: 1.1206.


Target Inner Area: 1.1180.


Inner Buy Area: 1.1154.


Original Support: 1.1143.


Strong Support: 1.1132.


Breakout SELL Level: 1.1126.


Disclaimer: Trading Forex (foreign exchange) on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

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Technical analysis of USD/JPY for May 06, 2015

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In Asia, Japan will not release any economic data. However, the US will release some macroeconomic reports such as Crude Oil Inventories, Fed Chair Yellen Speech, Prelim Unit Labor Costs q/q, Prelim Nonfarm Productivity q/q, and ADP Non-Farm Employment Change. So there is a big probability the USD/JPY pair will move with low volatility during the Asian session, but with low to medium volatility during the US session.


TODAY TECHNICAL LEVELS:


Resistance. 3: 120.59.


Resistance. 2: 120.36.


Resistance. 1: 120.12.


Support. 1: 119.84.


Support. 2: 119.61.


Support. 3: 119.36.


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 May 6, 2015

EUR/USD: This currency trading instrument has been trying to recover the loss it sustained at the beginning of this week. From Monday till Tuesday, the price dropped by 100 pips. But starting from Tuesday, the price has risen by over 100 pips, going towards the resistance line at 1.1250. Bulls may hold out longer than most think.

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USD/CHF: The USD/CHF pair has succeeded in going below the resistance level at 0.9300. The support level at 0.9250 has been tested and it would be tested again. It might even be breached to the downside. As it was said yesterday, this pair would remain under selling pressure as long as the EUR/USD pair is strong.

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GBP/USD: Bears have made their effort visible on the GBP/USD pair, though bulls are also fighting hard to hold sway. The probability of the price going downwards is higher than the probability of the price going upwards. Unless the distribution territory at 1.5300 is overcome, there would not be a renewal of a Bullish Confirmation Pattern in this market.

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USD/JPY: The USD/JPY pair still remains on a bull market. The price is above the EMA 21 and the RSI period 14 is not below the level 50. The present shallow pullback might be another opportunity to buy long, for there cannot be a threat to the bullish bias unless bears succeed in pushing the price below the demand level at 119.00.

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EUR/JPY: This is a strong cross – which would continue its bullish journey as long as there is stamina in the euro. The best approach now is to buy on dips in the market.

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