GBP/USD intraday technical levels and trading recommendations for May 21, 2015

gbppusdaily.png

Overview:

On March 2, a bearish breakdown of the lower limit of the previous daily channel occurred enhancing the bearish side of the market.

Persistence below the zone of 1.4950-1.5000 indicated a further bearish decline towards 1.4700.

Shortly after, the bearish trend was resumed towards the level of 1.4550 where a lower daily bottom was established.

Evident bullish recovery emerged at 1.4560 pushing the GBP/USD pair above the level of 1.4700. Since then, successive higher highs have been established.

As anticipated, the daily closure above 1.5060 (50% Fibonacci level) exposed the next resistance levels at 1.5400 and 1.5450 where extensive bearish pressure was previously applied.

This enhanced the bearish side of the market towards the levels of 1.5300, 1.5250, and 1.5100 where the most recent bullish swing was initiated on May 5.

On the other hand, the price zone of 1.5750-1.5800 (critical resistance zone) offered a valid sell entry by the end of the last trading week. Final bearish target at 1.5450 was reached yesterday.

Intraday Support-1 (price zone of 1.5400-1.5450) is the most prominent support level to be watched for BUY entries. Initial bullish targets are located at 1.5650 then 1.5750 where further price analysis should be considered.

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

USD/CAD intraday technical levels and trading recommendations for May 21, 2015

cadweekly.pngcaddaily.png

Overview:

Since bulls pushed the price further above the upper limit of both depicted bullish channels and the 79.6% Fibonacci level, the market looked quite overbought. That is why the price failed to hold above 1.2650 - 1.2680 (previous highs) resulting in the formation of a Triple-top pattern.

Successive lower highs were established within the depicted consolidation zone enhancing the bearish side of the market.

Support levels around 1.2350 and 1.2300 (79.6% Fibonacci level) were broken after providing significant support for several weeks on the daily and weekly charts.

Daily fixation below 1.2300 cleared the way for the USD/CAD pair towards the levels of 1.2000 and 1.1940 (projection target of the recent range breakout and the depicted weekly uptrend).

That is why we expected these price levels to provide significant bullish SUPPORT. Bullish pullback is currently taking place.

The price zone of 1.2330-1.2350 remains significant intraday RESISTANCE to be watched at further retesting. This price zone will probably offer a low-risk sell entry.

Trading recommendations:

Risky traders could have taken a suggested buy entry anywhere around 1.1950. S/L should be advanced to 1.2100 to secure some profits. T/P levels are projected at 1.2100, 1.2270, and 1.2320.

Conservative traders can wait for bullish pullback towards 1.2300-1.2340 for a low-risk sell entry. S/L should be placed above 1.2400.

T/P levels should be placed at 1.2220, 1.2100 and 1.1950.

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

Intraday technical levels and trading recommendations for GBP/USD for May 21, 2015

gbpusdwekly.png

Evident bullish recovery emerged from the area around 1.4550 where a significant bullish engulfing weekly candlestick was expressed.

As mentioned before, persistence above the levels of 1.5000-1.5080 exposed the weekly supply zone of 1.5500-1.5550 (roughly corresponding to weekly 50% Fibonacci level), where significant bearish pressure was previously applied on February 22.

Last week, the market has already pushed above the weekly supply (1.5530) and 1.5720 (FE 100%). That is why the current weekly candle closure should be monitored to determine the next destination of the pair.

Note that persistence above the weekly supply at 1.5530 (also corresponding to 50% Fibo level) hinders the long-term bearish trend for some time.

1432219311_gbpdaily.png

Sideways movement with slight bearish tendency had been expressed on the daily chart until the bullish breakout took place above 1.4970-1.5000 (via a long-term bullish reversal pattern).

The price zone between 1.5000 and 1.5050 (daily 38.2% and 50% Fibonacci levels) failed to hold. Moreover, it constitutes a prominent demand level for the GBP/USD pair now.

It offered a valid buy entry for retesting that took place last week.

A daily closure above the weekly supply zone 1.5500-1.5530 exposed the next supply level located at 1.5720 (100% Fibonacci Expansion of the recent bullish swing).

Evident bearish pressure was applied around 1.5720 (100% FE and the upper limit of the depicted bullish channel) so bearish pullback took place towards 1.5500 earlier yesterday.

The price zone (1.5450-1.5500) constitutes a prominent demand zone which offered a valid BUY entry yesterday. It is running in profits now.

Persistence above 1.5720 (100% FE) is needed to pursue towards higher levels. Initial bullish target would be located at 1.5950 (FE 141.4%).

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

Intraday technical levels and trading recommendations for EUR/USD for May 21, 2015

eurmonth.png

The market was pushed lower 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.

The EUR/USD pair lost almost 1,500 pips since the beginning of 2015. Moreover, EUR/USD bears have already pushed the market slightly below the monthly demand level of 1.0550 (established on January 1997).

The previous monthly closure had a negative impact on the EUR/USD pair. However, April's monthly candlestick came as a bullish engulfing candle as depicted on the chart.

In the long term, bearish breakdown of the monthly demand level at 1.0550 should not be excluded as the long-term breakout target is roughly projected towards the level of 0.9450.

Meanwhile, a further bearish decline can be hindered for a few weeks.

On the other hand, a bullish corrective movement towards 1.1500 and 1.1600 is highly probable especially if intraday demand zone (1.1150-1.1100) remains defended by bulls.

1432219293_eurdaily.png

The obvious bearish breakout of the weekly demand level at 1.1100 allowed the market to fall dramatically shortly afterwards.

After such a long bearish rally (which started around the levels of 1.1300), bullish rejection was expressed at 1.0570 (monthly demand level).

A bullish continuation pattern with an ascending bottom was established around the level of 1.0650.

This applied strong bullish pressure to the key zone at (1.1150-1.1050). That is why bears failed to pause the ongoing bullish momentum of the EUR/USD pair.

Further bullish advancement was enhanced by the multiple daily closures above the levels of 1.1150 and 1.1250 until bearish pressure was applied around 1.1450 (just below the depicted supply level of 1.1500).

This week, bearish pullback is taking place towards 1.1150 -1.1050 where a valid buy entry can be offered.

On the other hand, the current daily candlestick should be monitored by the end of the day, as a daily fixation below 1.1040 hinders further bullish advancement.

If so, initial bearish target would be located at 1.0900.

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

Technical analysis of USD/JPY for May 21, 2015

USDJPYM30.png

Fundamental Overview:
USD/JPY is expected to consolidate with bullish bias after hitting a five-week high of 121.49 on Wednesday. USD/JPY is underpinned by the positive dollar sentiment (ICE spot dollar index last 95.59 versus 95.29 early Wednesday) on back of continued impact of strong data on the US April housing starts and San Francisco Fed research paper that said the US Q1 GDP weakness may have been exaggerated by seasonal factors. USD/JPY is also supported by demand from Japan importers and ultra-loose Bank of Japan's monetary policy. But USD sentiment is dented by the dovish minutes of the FOMC April meeting which showed Fed officials doubted they would be ready to raise short-term interest rates by midyear. USD/JPY gains are also tempered by lower US Treasury yields (2-year slipped 1.6 bps to 0.593% Wednesday), Japan's exports and diminished investor risk appetite (VIX fear gauge rose 0.23% to 12.88, S&P 500 closed 0.09% lower at 2,125.85 overnight after hitting record high 2,134.72).

Technical comment:
The daily chart is positive-biased as the MACD and stochastics are bullish, although latter is at overbought levels, five- and 15-day moving averages are advancing.

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 121.50 and the second target at 122. In the alternative scenario, short positions are recommended with the first target at 120.30 if the price moves below its pivot points. A break of this target is likely to push the pair further downwards, and one may expect the second target at 120.10. The pivot point is at 120.70.

Resistance levels:
121.50
122
122.45

Support levels:
120.30
120.10
119.75

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

Technical analysis of USD/CHF for May 21, 2015

USDCHFM30.png

Fundamental overview:
USD/CHF is expected to consolidate with bullish bias after hitting a two-week high of 0.9406 on Wednesday. It is underpinned by the positive dollar sentiment, negative Swiss interest rates and the threat of the Swiss National Bank CHF-selling intervention. But swissie sentiment is boosted by a rise in Switzerland ZEW - Credit Suisse indicator of economic sentiment to -0.1 in May from -23.2 in April. USD/CHF upside is also limited by franc demand on soft EUR/CHF cross.

Technical comment:
The daily chart is positive-biased as the MACD and stochastics are bullish, five-day moving average is rising above 15-day moving average.

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 0.9410 and the second target at 0.9450. In the alternative scenario, short positions are recommended with the first target at 0.9260 if the price moves below its pivot points. A break of this target is likely to push the pair further downwards, and one may expect the second target at 0.9215. The pivot point is at 0.9300.

Resistance levels:
0.9410
0.9450
0.95
Support levels:
0.9260
0.9215
0.9175

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

Technical analysis of NZD/USD for May 21, 2015

NZDUSDM30.png

Fundamental overview:
NZD/USD is expected to consolidate with bearish bias after hitting a two-month low of 0.7277 on Wednesday. It is undermined by the positive dollar sentiment, soft dairy prices, reduced investor risk appetite and expectations that the RBNZ would cut interest rate cuts in coming months. But NZD/USD losses are tempered by the NZD-USD interest differential.

Technical comment:
The daily chart is negative-biased as the MACD and stochastics are bearish, although 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 long as it remains below the pivot point. Short positions are recommended with the first target at 0.7410. A break of that target will move the pair further downwards to 0.7450. The pivot point stands at 0.73754. 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 0.7450 and the second target at 0.75.

Resistance levels:
0.7410
0.7450
0.75

Support levels:
0.7270
0.7230
0.72

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

Technical analysis of GBP/JPY for May 21, 2015

GBPJPYM30.png

Fundamental outlook:
GBP/JPY is expected to consolidate with bullish bias. It is underpinned by the buoyant USD/JPY undertone and demand from Japan importers. But GBP/JPY upside is limited by weak euro sentiment, diminished investor risk appetite and Japan export sales.

Technical comment:
The daily chart is negative-biased as stochastics is falling from overbought levels, the MACD staged bearish crossover against its exponential moving average.

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 190.60 and the second target at 191.20. In the alternative scenario, short positions are recommended with the first target at 187.90 if the price moves below its pivot points. A break of this target is likely to push the pair further downwards, and one may expect the second target at 187.06. The pivot point is at 188.60.

Resistance levels:
190.60
191.20
191.85

Support levels:
187.90
187.06
186.35

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

EUR/NZD: analysis for May 21, 2015

EURNZDDaily21.png

EURNZDH121.png

Overview:

Recently, EUR/NZD has been trading upwards. The price tested the level of 1.5284 in a high volume. The short-term trend is bullish. According to the daily time frame, supply is in a volume above the average but with a weak price action. Our major resistance is set around the level of 1.5400. According to the H4 time frame, we got selling climatic action (hidden buying), which prevented the price from going lower. Be careful when selling. We may expect potential absorption of a selling climax.

Fibonacci Pivot Points:

Resistance levels:

R1: 1.5215

R2: 1.5250

R3: 1.5300

Support levels:

S1: 1.5110

S2: 1.5075

S3: 1.5020

Trading recommendations: Be careful when selling EUR/NZD at this stage as we can observe selling climax (bearish volume spike). Watch for potential buying opportunities on the dips.


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

Gold : analysis for May 21, 2015

GOLDDaily21.png

GOLDH121.png

Overview:

Gold has been trading sideways around the level of $1,209.00. The price supports cluster around the level of $1,203.00. We can observe supply in a high volume with strong price action in the daily time frame. The short-term trend is neutral. The daily resistance is at the level of $1,224.00 . If the price breaks the level of $1,224.00 in a high volume and strong price action takes place, we may see possible testing at the level of $1,250.00 (Fibonacci expansion 100%). Be careful when selling gold at this stage since we got strong selling climax (stopping volume) in the background. Our Fibonacci retracement 50% at $1,201.00 held successfully. My advice is to watch for potential buying opportunities. Any larger demand will confirm further bullish movement.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,212.00

R2: 1,215.00

R3: 1,218.70

Support levels:

S1: 1,204.20

S2: 1,202.00

S3: 1,198.00

Trading recommendations: Be careful when selling at this stage since we got selling climax in the background and price created cluster (support).


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

Technical analysis of EUR/USD for May 21, 2015

eurusdh4.png

Overview:

  • The EUR/USD pair has rebounded from minor support at the level of 1.1105. Now, it is approaching its support in order to test it. In the H4 chart, the price has opened above the minor support at 1.1110. Moreover, it should be noted that the price of 1.3285 represents the daily pivot point. The weekly pivot point coincides with the ratio of 61.8% Fibonacci retracement levels at the same time frame. It is likely to start upside movement in this area and recover it again. Thus, the EUR/USD pair has been calling for a bullish market from the level of 1.1110 today. As a result, it will be a good sign to buy at this spot (1.1110 ) with the first target at 1.1231 (it should be noted that this level will form the weekly support 1) and continue towards 1.1264 to form a new double bottom. On the other hand, in case of a break of 1.1100, a good place for stop loss is seen below the level of 1.1100.

Technical levels:

Pair: EUR/USD

  • The price will be moving between 1.1100 and 1.1264 in coming days.
  • Projected high: 1.1311.
  • Strong resistance (sell limit): 1.1264. The resistance will be set at the price of 1.1264.
  • Current pivot: 1.1105
  • Breakout (sell stop): 1.1100. The support will be set at the price of 1.1100.
  • Projected low: 1.1012
The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of GBP/USD for May 21, 2015

gbpusdh4.png

Overview:

  • The GBP/USD pair will probably move above the support levels at 1.5580 and 1.5630. Consequently, it would be wise to be careful in the area of 1.5644 (weekly pivot point). In particular, it will be too meaningful to wait breaking the weekly pivot point at 1.5644 before investing. The level of 1.5547 formed a strong support. The market is likely to start showing bullish signs from the support levels mentioned above. In other words, it will be a good sign to buy above the level of 1.5630 with the first target at 1.5704 in order to retest the weekly resistance 1. Besides, it will climb towards the level of 1.5814 to retest the double top in the H4 chart. Moreover, it should also be noted that the weekly resistance 2 is set at 1.5842 and the double top has been already set at 1.5814. However, if the pair does not break the double top, the market will indicate a bearish opportunity below the level of 1.5814. This level will act as strong resistance.

Observations:

  • We expect a new range about 87 pips today.
  • The key level will be set at 1.5644, which represents the weekly pivot point.
  • The support of the GBP/USD pair has been already set at 1.5550; and the weekly support 1 is seen at the same level.
  • If the trend fails to close below the level of 1.5550 or 1.5630, it will be a good opportunity to buy above 1.5630 with the first target at 1.5700. Then, it will be continued straight towards 1.5814.
The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of Silver for May 21, 2015

Technical outlook and chart setups:

Silver is trading around the levels of $17.20/22 now after it made a bottom near $16.90 yesterday. The metal is expected to rally through $17.50/60 at least if not higher. There is a possibility that the prices could drop below the level of $16.90 before the trend resumes. It is recommended to remain long for now with risk at the level of $16.80. Immediate support is seen at $16.90 followed by $16.20, $15.80, and lower, while resistance is seen at $17.70 followed by $18.40/50 and higher respectively.

Trading recommendations:

Remain long for now, stop at $16.80, a target is open.

Good luck!


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

Technical analysis of Gold for May 21, 2015

Technical outlook and chart setups:

Gold is seen to be trading around the level of $1,212.00, after testing $1,204.00 yesterday. The metal looks to be set to rally further towards $1,221.00 at least if not higher. A bearish reversal there would indicate that the metal needs to correct below the level of $1,200.00 before resuming its rally. It is recommended to remain long for now, with risk at $1,200.00. Immediate support is seen at $1,204.00 (interim) followed by $1,180.00, $1,162.00, and lower while resistance is seen at $1,230.00 (interim), followed by $1,235.00/40.00 and higher respectively.

Trading recommendations:

Remain long for now, stop at $1,200.00, a target at $1,221.00/23.00.

Good luck!


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

Technical analysis of GBP/CHF for May 21, 2015

Technical outlook and chart setups:

The GBP/CHF pair tested the resistance at 1.4600 for the third time yesterday before pulling back lower. Please note that the pair remains on a decisive cross road where a break above 1.4600 would be extremely bullish while a break below 1.4350 would be extremely bearish. It is recommended to remain flat for a sideways setup and trade a break on either side. An aggressive trade setup would imply holing short positions with risk around 1.4600. Immediate support is seen at the level of 1.4350 while resistance is seen at the level of 1.4600.



Trading recommendations:


Remain short with stop at 1.4650 levels and a target is open.



Good luck!


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

Technical analysis of EUR/JPY for May 21, 2015

Technical outlook and chart setups:

The EUR/JPY pair is trading around 134.20 levels and looking to break down at least towards 133.00 levels before producing any meaningful retracement. Any intraday rallies from the current levels should remain capped below 136.00-50 levels. It is hence recommended to remain short with risk at 136.50 or break even levels. Immediate support is seen at 133.00 levels followed by 131.00, 129.00, 128.00 and lower, while resistance is seen at 136.00-50 followed by 137.00 and higher respectively. The pair is setting up to retrace lower at least to the levels of 129.00-130.00.

Trading recommendations:

Remain short for now, stop is at 137.00, target is open.

Good luck!

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

Elliott wave analysis of EUR/NZD for May 21 - 2015

2015-05-21-EURNZD-4H.png

Technical summary:

The expanded flat correction from 1.5247 continues to unfold as expected. In the short term, we will be looking for a break below the minor support at 1.5157 and more importantly below the support at 1.5130 that should cause renewed downside pressure for a decline towards 1.4725.

The risk is that we only will see a decline to the minor support-line near 1.5100 for one more corrective rally higher to 1.5239 before the next decline towards the ideal target at 1.4725 will be seen.

Trading recommendation:

We will sell EUR upon a break below support at 1.5157 with a stop placed at 1.5255 and take-profit + revers of the short position to a long EUR position at 1.4750.

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

Elliott wave analysis of EUR/JPY for May 21 - 2015

2015-05-21-EURJPY-4H.png

Technical summary:

The correction in wave (ii) is unfolding as expected. In the short term, we will be looking for a break below the minor support at 134.31 confirming a new test and a possible break below the support at 133.91 for a continuation lower to the 137.97 - 133.08 target zone. Once this correction is over, a new strong rally higher to at least the 149.55 top, and possibly much higher in the longer term, will take place.

Trading recommendation:

We are short EUR from 135.27 with stop placed at 134.88. We will place take profit at 133.25.

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

Technical analysis of EUR/USD for May 21, 2015

!EURUSD.jpg


When the European market opens, some economic news will be released such as the speech of ECB President Mario Draghi, the eurozone's reports on Consumer Confidence, ECB Monetary Policy Meeting Accounts, Current Account, Flash Services PMI, and Flash Manufacturing PMI. Besides, the data on Flash Services PMI and Flash Manufacturing PMI will be revealed in Germany and France.The US will provide its economic data too such as the statistics on Natural Gas Storage, Natural Gas Storage, CB Leading Index m/m, Existing Home Sales, Philly Fed Manufacturing Index, Flash Manufacturing PMI, and Unemployment Claims. So amid the reports, EUR/USD will move with low to medium volatility during this day.


TODAY TECHNICAL LEVELS:


Breakout BUY Level: 1.1171.

Strong Resistance:1.1165.

Original Resistance: 1.1154.

Inner Sell Area: 1.1143.

Target Inner Area: 1.1117.

Inner Buy Area: 1.1091.

Original Support: 1.1080.

Strong Support: 1.1069.

Breakout SELL Level: 1.1063.




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

#USDX technical analysis for May 21, 2015

The US dollar index has most probably made a short-term top. I expect the greenback to weaken over the next few sessions as a part of a pullback before the resumption of the new uptrend that started at 93.10. I'm neutral waiting for support at 38% or 61.8% Fibonacci retracement to hold the decline and stage another upward reversal.

usdx.jpg

The US dollar has broken above the cloud resistance. The trend has reversed. However, I see a short-term weakness over the next couple of days that could bring the index back on top of the cloud. the short-term target is the 38% retracement or even the 61.8% retracement.

usdxd.jpg

The weekly chart remains impressive and the next couple of days will be important for this week's close. The price is above the kijun-sen indicator and the weekly candle is a sign of trend reversal. Weekly critical support is at 93.10 and as long as the price is above this level I remain bullish waiting for a pullback to go long with new highs as target.

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

Gold technical analysis for May 21, 2015

Gold price has stopped its decline at the 50% retracement and at the top of the Ichimoku cloud as it was expected. This is a positive sign for bulls as this keeps their chances of seeing a move towards $1,250 alive. My longer-term view remains bearish.

goldh4.jpg

The short-term resistance is at $1,217. Support is at $1,200. The decline that started from $1,230 has paused. There are increased chances of an upward reversal. If prices turn higher from this level, we should expect an upward thrust towards $1,250 if the level of $1,230 is broken.

goldd.jpg

The weekly chart remains bearish as the price got rejected at the cloud resistance. The form of the upward move is corrective so far and as long as the price is below the weekly Ichimoku cloud I remain bearish. Important weekly support is at $1,170 and at $1,130.

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

Technical analysis of EUR/JPY for May 21, 2015

General overview for 21/05/2015 08:30 CET

The corrective structure in wave -iv- blue is getting more complex and time-consuming than it was supposed previously. However, sooner or later the market will make another move to the downside and the wave -v- will unfold. The projected target levels are still the same with the first target at the level of 133.45. Please notice that only a sustained breakout above the intraday resistance at the level of 135.30 would invalidate this bearish count. On the other hand, any breakout below the level of 133.09 (thick red line) means the near-term top at the level of 136.95 was established.

Support/Resistance:

133.45 - Technical Support

133.92 - Intraday Support

134.87 - WS1

Trading recommendations:

The corrective cycle is about to be completed and sell orders from the beginning of the week should be still kept open as the market approaches the important levels. The TP for sell orders should be placed at the level of 133.45, SL to the level of 134.87.

eurjpy_h1.jpg

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

Technical analysis of USD/CAD for May 21, 2015

General overview for 21/05/2015 08:05 CET

On the H4 time frame we can see that complex corrective structure has been completed and now the market is trying to rally after breaking descending golden trendline. First three waves have been done and currently the corrective structure in wave -iv- blue is in progress. The invalidation line for the overall impulsive count is at the level of 1.2066.

Support/Resistance:

1.2256 - Intraday Resistance

1.2167 - Intraday Support

1.2127 - WR1

1.2066 - Invalidation Line

Trading recommendations:

Daytraders and swingtraders should still consider buying on the dips on this market as there is an uncompleted impulsive structure to the upside. For swingtraders the SL should be placed below the level of 1.2066. Please notice that this corrective structure might evolve into more complex and time-consuming structure so patience is advised.

usdcad_h4.jpg

usdcad_h1.jpg

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

Daily analysis of USDX for May 21, 2015

In the daily chart, the USDX stays below the resistance zone of 95.74, without significant changes in our latest outlooks about this index. Also, we're expecting a higher high pattern formation in order to strengthen the current bullish towards at USDX. The 200 SMA is pointing upwards and the price action is favoring bulls.

USDXDaily.png


The short-term outlook is still there with a probability of a higher high pattern formation on the H1 chart. The resistance zone of 95.82 is offering a strong barrier for the USDX to trade in favor of a bullish bias. But we could expect a breakout there soon, because the current structure is already fueling the bullish bias.

USDXH1.png


Daily chart's resistance levels: 95.74 / 96.97

Dailychart's support levels: 95.00 / 93.95

H1 chart's resistance levels: 95.82 / 96.21

H1 chart's support levels: 95.18 / 94.70



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 93.85, take profit is at 93.07, and stop loss is at 94.63.

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

Technical analysis of USD/JPY for May 21, 2015

!USDJPY.jpg

In Asia, Japan will release the All Industries Activity m/m and Flash Manufacturing PMI. The US will release economic dataon the Natural Gas Storage, CB Leading Index m/m, Existing Home Sales, Philly Fed Manufacturing Index, Flash Manufacturing PMI, and Unemployment Claims. So, there is a strong probability that USD/JPY will move with low to medium volatility during this day.

TODAY TECHNICAL LEVELS:

Resistance. 3: 121.75.

Resistance. 2: 121.51.

Resistance. 1: 121.27.

Support. 1: 120.99.

Support. 2: 120.75.

Support. 3: 120.51.

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

Daily analysis of GBP/USD for May 21, 2015

The pair remains alive on the downside risk in the daily chart, because there is no bullish price action favored at this time and the current structure seems to be telling us about a corrective move in favor of the upward trend. However, GBP/USD could have another push lower, at least until the support level of 1.5346, in the medium term.

GBPUSDDaily.png


During the yesterday session, GBP/USD recovered from losses almost to the level of 1.5443, after the FOMC's meeting minutes, which didn't have a huge impact on the major pairs. Because of it and the lack of momentum, GBP/USD could do a pullback at the 200 SMA on the H1 chart. So, be cautious when putting short-term long trades.

GBPUSDH1.png


Daily chart's resistance levels: 1.5543 / 1.5745

Dailychart's support levels: 1.5346 / 1.5199

H1 chart's resistance levels: 1.5597 / 1.5670

H1 chart's support levels: 1.5513 / 1.5443



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 1.5513, take profit is at 1.5443, and stop loss is at 1.5584.

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

Technical analysis of USDX & USD/JPY for May 21, 2015

As we expected, the June rate hike is unlikely to happen. The same we found from the FOMC April meeting minutes. After the Q1 slowdown, we expect the FOMC to wait for data on another quarter to be released. The USDX extended its winning streak for the 3rd consecutive day. The parallel resistance at 95.95 is acting as a strong near-term hurdle. In case the level of 95.95 gets taken out, bulls will aim at 96.30 and 96.85. Support is found at 94.95 and 94.60. A daily close below 94.60 is likely to push bears to aim at the previous low of 93.00 and even lower at 91.50.

USD/JPY

At the Asian session, the Japan Manufacturing PMI was released. Flash Japan Manufacturing PMI was printed at 50.9 (49.9 in April). Operating conditions improved slightly in May. The Flash Japan Manufacturing Output Index came at 51.7 (49.3 in April). Production is moderatly recovering. After the data release, JPY gets stronger against USD and GBP. But it was trading lower against the euro at the Asian session. The USD/JPY pair gave the third consecutive strong close. Bulls have been extending their footprints for five consecutive days. The pair faced resistance at 121.50, which was parallel resistance. A daily close above 121.50 is likely to make bulls aim at 122.00 and 122.50 initially. We recommend buying at 119.00. Intraday support is found at 121.00 and 120.60. As of now, the near-term buying stop loss is seen at 120.40.

USDJPYDaily.png

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

Technical analysis of EUR/CAD for May 21, 2015

The cross rejected at 100Dsma and changed the direction towards south. The cross has been falling for 2 consecutive days. It is approaching the support zone between 1.3520 and 1.3490. In case of a daily close below 1.3490, bears will tighten the grip aiming at 1.3420, and 1.3385. The real panic will be triggered below 1.3385 towards 1.3340 and 1.3260. Earlier, we recommended buying between 1.3450 and 1.3400 with sl 1.3385 for 1.3700 and 1.3800. Ahead of today's series of data from the eurozone, the cross is likely to touch either 1.3700 or 1.3490. Intraday support is found at 1.3520. Bears will aim at 1.3470, 1.3420, and even 1.3400 in case 1.3520 gets taken out. If the support holds, bulls will aim at 1.3600 and 1.3650. In case the cross falls within today's session, risky traders can buy between 1.3420 and 1.3400 with strong sl 1.3380. In the four-hour chart, the higher lows and higher highs formation still exists. Until the pair closes at 1.3670, a trading range will be framed between 1.3670 and 1.3400. Bulls must close above 1.3670 to regain their strength.

EURCADH4.png
The material has been provided by InstaForex Company - www.instaforex.com

NZD/JPY wide range continues

Consolidation began on March 24, after NZD/JPY had tested the key resistance area for the first time. Now, the range has been going on for almost two months and no clear direction has been established yet. In these conditions, it is always best to use Oscillators to capitalize on oversold/overbought markets.

What is clear is that NZD/JPY has very clear support and resistance areas in this range. The support is near 92.00, while the resistance is located near 88.00. The Fibonacci levels applied to a low of 84.03 (back on March 2) and a high of 92.35 (back on April 22) shows that the price is currently rejecting 50% retracement level and a double bottom that has been established prior. The CCI oscillator points up crossed the oversold line from below, signaling on a potential continuation of this consolidation.

Overall, without any signs of a trend, it could be wise to consider baying NZD/JPY at the current revels as it is very close to the key support area. Target should be near the already formed triple top area at the level of 91.72. Only a daily close below 62.8% Fibonacci – S2 (87.22) could confirm the downtrend.

Support: 88.20, 87.22

Resistance: 89.17, 90.40, 9167, 92.35

nzdjpy-d1-instaforex-group-4.png

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

Technical analysis of GBP/USD for May 21, 2015

MPC -The Committee made an assumption that the Bank Rate followed the path implied by market interest rates, the stock of purchased assets stayed at 375 billion pounds and the Bank Rate should be maintained at 0.5%.The Committee set monetary policy to meet a 2% inflation target in the medium term and in a way that helps sustain the growth and employment. The Committee judged that the GDP growth would pick up in Q2. The Bank Rate should be maintained at 0.5%.

Today, traders eye UK retail sales data, printed below expectations in March. CBI industrial order expectations are on the negative side. Beside, US jobs data, existing home sales, and Philly Fed manufacturing index are expected to come positive whereas the flash manufacturing PMI is likely to be on the negative side.

Technical view: Before the UK's election, the cable changed the direction to north. The recent soft USD and UK's election boosted the pound. Compared to the euro, the pound looks stronger in the fundamental and technical perspective as well. From May 14, we forecasted it would be capped between 1.5800 and 1.5830. The cable fell from 1.5815, while we expected 1.5550 and 1.5500. But the cable made a low of 1.5446 managed to hold the month ascending trend line. This factor helped bulls regain the control. At yesterday's session, the cable managed to pause a 3-day losing streak. The near term is unlikely to favor bulls. At the Asian session, the cable was trading at 1.5558 compared to Wednesday's close of 1.5536. The support is found at 1.5435 and 1.5393 rounded to 1.5390. The 2Wsma is seen at 1.5150. Until the cable closes above 1.5150, use every correction to add on the buying side. The resistance is seen at 1.5600 200Dsma. In case of a daily close above 1.5600, bulls will regain the control aiming at the resistance level at 1.5830. Intraday trade is available on both sides. Bullish momentum is seen above 1.5585 towards 1.5600 and 1.5630. Safe buy will trigger above 1.5600 with an immediate target at 1.5630 and at 1.5670, 1.5700, and 1.5800 later. A daily close is expected above 1.5600 and then only 1.5800. Today, small trading is available for bears below 1.5430 at 1.5400, 1.5393, and 1.5385. In case of a daily close below 1.5400, bears will tighten the grip aiming at 1.5200 and 1.5150.

Key levels to watch on closing basis:

Bulls must close above 1.5600

Bears must close below 1.5430

GBPUSDH4.png

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

Daily analysis of major pairs for May 21, 2015

EUR/USD: TThis week has been characterized by changes in some recent biases. For example, the EUR/USDpair has turned bearish, having gone down by 330 pips this week. The support line at 1.1100 has already been overcome, and the price could fall further from here. Moreover, some interesting fundamental figures are expected today and they could have an impact on this market.

1.png

USD/CHF: The weakness in the EUR/USD pair has helped the USD/CHF pair move upwards. There is a Bullish Confirmation Pattern in the chart now and a further breakout to the north is expected, following the recent transitory equilibrium. The resistance level at 0.9400 could be breached to the upside and the price would move further upwards towards another resistance level at 0.9500.

2.png

GBP/USD: The only logical thing to do is to go short at present. The EMA 11 is slightly below the EMA 56 and the RSI period 14 is clearly below the level of 50. The price is likely to fall further from here.

3.png

USD/JPY: This pair has moved upwards by 200 pips this week. The recent equilibrium phase is completely over now and it is sensible to look for buying opportunities on the pair. Ideally, one would prefer to go long on occasional dips on the market.

4.png

EUR/JPY: Yesterday, it was said that the direction of this cross would be largely determined by what happens to the EUR/USD pair. EUR/USD has become weak; and the same happens to the EUR/JPY cross . The price is presently consolidating, but when a breakout happens, the price could go more downwards towards the demand zone at 133.50.

5.png

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

CHF/JPY seems to be ready for take-off.

On reaching a low of 119.84 on March 12, CHF/JPY corrected sharply and entered into consolidation lasted for just over a month. At the end of April, the pair broke out the consolidation zone accommodated by large volumes.

The price also broke above the ascending channel. Fibonacci levels applied to the breakout point currently displaying the nearest support at S1 (128.75) and resistance R1 (130.38). While the higher trend line of the channel is acting as support now, it was rejected on several times. At the same time, the price closed above R1 resistance suggesting the further growth.

Consider buying CHF/JPY near S1 (128.85) as it could be ready to act any time now. Fibonacci is pointing at 133.00 as a target, where 0% level is located. Only a breakout below S2 could send the pair lower to test S3 level.

Support: 128.75, 127.45, 126.14

Resistance: 130.38, 133.00

chfjpy-h4-instaforex-group-6.png

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

Technical analysis of EUR/USD for May 21, 2015

In April 2015, the index of producer prices for German industrial products fell by 1.5% compared with the corresponding month of the preceding year. In March 2015, the annual rate of change was –.7%. The overall index rose by 0.1% in April 2015 (+0.1% in March and February 2015) compared with the preceding month.

Given a series of macroeconomic data today is understandably a busy day on the markets. Things should pick up rapidly by today however as we have a number of high-impact data releases to look forward to. The ECB monetary policy meeting accounts are due. The French and German flash manufacturing and services PMI are due. The European flash manufacturing PMI and services PMI are due. Today, we expect the eurozone, Germany and French to deliver negative readings.

Technical view: The pair fell into the strong support zone. We can call it as make-or-break zone. Ahead of the ECB monetary policy meeting, the pair has been trading in a very tight range between 1.1146 and 1.1060. The strong support zone is found at 1.1050. In the four-hour, the RSI is oversold. Ahead of major events, we expect wild moves at the intraday levels not to work out. Intraday resistance is seen at 1.1185 and support is found at 1.0930. From May 14, we have been advising that the pair is likely to retest the support between 1.1100 and 1.1050. The pair exactly returned from the given resistance zone 1.1480 and 1.1535, fell by 400 pips. Until the pair closes below 1.1290 rounded to 1.1300, use every rise to sell following the trend.

EURUSDH4.png

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

EUR/NZD analysis for May 20, 2015

EURNZDDaily20.png

EURNZDH420.png

Overview:

Recently, EUR/NZD has been trading sideways around the price of 1.5180. The short-term trend is bullish. According to the daily time frame, supply is in a volume above the average but with weak price action. Our major resistance is around the level of 1.5310. According to the H4 time frame, we got selling climatic action (hidden buying), which prevented the price from going lower. Be careful when selling. If we see confirmation of climatic selling, the first strong support will be around the level of 1.4820 (major Fibonacci retracement 38.2%). Bullish objective point is at the price of 1.5455.

Fibonacci Pivot Points:

Resistance levels:

R1: 1.5318

R2: 1.5390

R3: 1.5510

Support levels:

S1: 1.5083

S2: 1.5011

S3: 1.4893

Trading recommendations: Be careful when selling EUR/NZD at this stage as we can observe selling climax (bearish volume spike).

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

GBP/USD intraday technical levels and trading recommendations for May 20, 2015

gbppdaily.png

Overview:

On March 2, a bearish breakdown of the lower limit of the previous daily channel occurred enhancing the bearish side of the market.

Persistence below the zone of 1.4950-1.5000 indicated a further bearish decline towards 1.4700.

Shortly after, the bearish trend was resumed towards the level of 1.4550 where a lower daily bottom was established.

Evident bullish recovery emerged at 1.4560 pushing the GBP/USD pair above the level of 1.4700. Since then, successive higher highs have been established.

As anticipated, the daily closure above 1.5060 (50% Fibonacci level) exposed the next resistance levels at 1.5400 and 1.5450 where extensive bearish pressure was previously applied.

This enhanced the bearish side of the market towards the levels of 1.5300, 1.5250, and 1.5100 where the most recent bullish swing was initiated on May 5.

As anticipated, the price zone of 1.5750-1.5800 (critical resistance zone) offered a valid sell entry by the end of last week (Friday). S/L should be advanced to 1.5600 to protect some profits.

Intraday Support-1 (price level of 1.5400) is the most prominent support level to be watched for buy entries. Initial bullish target is located at 1.5650.

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