Intraday technical levels and trading recommendations for GBP/USD for May 27, 2015

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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 at 1.5530 (50% Fibo level) and slightly above 1.5720 (FE 100%).

However, evident bearish pressure was applied around 1.5800, resulting in the depicted bearish engulfing weekly candlestick.

Note that persistence below the weekly supply at 1.5530 (corresponding to 50% Fibo level) hinders the ongoing bullish trend. It gives more time for sideway movement with bearish tendency. 1432738954_gbpdaily.png

Sideways movement with a 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 failed to keep prices below. Moreover, it now constitutes a prominent demand zone for the GBP/USD pair.

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

A daily closure above the weekly supply zone of 1.5500-1.5530 exposed the next supply level located at 1.5720 (100% Fibonacci Expansion of the recent bullish swing) where evident bearish pressure was applied. So, a bearish pullback took place towards 1.5500 on Tuesday.

Bearish breakout off the depicted bullish channel took place on Friday as a result of the evident bearish pressure that emerged at the level of 1.5660.

Persistence below 1.5470 is needed to maintain the current bearish momentum.

Initial bearish targets would be located at 1.5250 and probably 1.5100. On the other hand, consolidation above 1.5550 invalidates the current bearish scenario.

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EUR/NZD analysis for May 27, 2015

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Overview:

Recently, EUR/NZD has been trading downwards. The price tested the level of 1.4991 in an ultra high volume (selling climax). The short-term trend is neutral. According to the daily time frame, we can observe weak supply and reversal up-thrust bar (bullish). According to the 30-minute time frame, the price again rejected from our Fibonacci expansion 100% (1.4950) in a high volume. Be careful when selling EUR/NZD since we may see bullish movements. The first strong resistance is around the level of 1.5040.

Fibonacci Pivot Points:

Resistance levels:

R1: 1.5075

R2: 1.5110

R3: 1.5164

Support levels:

S1: 1.4962

S2: 1.4927

S3: 1.4872

Trading recommendations: Be careful when selling EUR/NZD at this stage since we can observe strong bullish activity (volume) in the background and rejection from our support.

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Technical analysis of USD/JPY for May 27, 2015

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Fundamental Overview: USD/JPY is expected to consolidate with bullish bias after hitting almost an eight-year high of 123.33 on Tuesday. USD/JPY is underpinned by the positive dollar sentiment (ICE spot dollar index last 97.24 versus 96.45 early Tuesday) on stronger-than-expected US May CB consumer confidence of 95.4 (versus forecast 95.0), larger-than-expected increase of 6.7% in the US April new home sales to 517,000 (forecast +6.0% to 510,000), and upward revision of the US March durable goods orders from +4.4% to +5.1%. The pair is also boosted by continued impact from Fed Chair Yellen's comments that the central bank was on track to raise interest rates this year. USD/JPY is also supported by the demand from Japan's importers and the ultra-loose monetary policy of the Bank of Japan's. But USD/JPY gains are tempered by the Japanese exports and lower US Treasury yields (10-year fell to 2.142% from 2.229%), flows to the safe-haven yen amid increased risk aversion (VIX fear gauge rose 15.91% to 14.06; S&P 500 closed 1.03% lower at 2,104.2 overnight) as worries mount that Greece will be unable to pay back loans to the International Monetary Fund due next month.

Technical comment: The daily chart is positive-biased as the MACD is bullish, stochastics stays elevated at overbought levels, 5 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 124.15 and the second target at 124.40. In the alternative scenario, short positions are recommended with the first target at 122.45 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 121.70. The pivot point is at 122.85.

Resistance levels: 124.15 124.40 124.75

Support levels: 122.45 121.70 121.35

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Technical analysis of USD/CHF for May 27, 2015

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Fundamental overview: USD/CHF is expected to consolidate with bullish bias after hitting almost a monthly high of 0.9540 this morning. It is underpinned by positive dollar sentiment, the negative Swiss interest rates, and the threat of the Swiss National Bank to carry out CHF-selling intervention. But USD/CHF gains are tempered by the franc demand on the soft EUR/CHF cross.

Technical comment: The daily chart is positive-biased as the MACD and stochastics are bullish, although the latter is at overbought levels. Ffive-day moving average is above 15-day moving average and is 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 0.96 and the second target at 0.9650. In the alternative scenario, short positions are recommended with the first target at 0.9335 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 0.9280. The pivot point is at 0.940 .

Resistance levels: 0.96 0.9650 0.97

Support levels: 0.94 0.9335 0.93

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Intraday technical levels and trading recommendations for EUR/USD for May 27, 2015

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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, the 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.

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

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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.

That is why, bears failed to hinder the ongoing bullish momentum around the key zone of 1.1150-1.1050 on April 29. Temporal bullish fixation above 1.1100 took place shortly after.

Further bullish advancement was enhanced until bearish pressure was applied around 1.1450 (just below the depicted supply level of 1.1500).

This week, a bearish pullback is taking place towards 1.0800 -1.0830 where a valid buy entry can be offered. S/L should be set as daily closure below 1.0770.

Note that the price zone of 1.1000-1.1100 is now the nearest SUPPLY zone to meet the EUR/USD pair if enough bullish momentum is developed.

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Gold analysis for May 27, 2015

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Overview:

Gold has been trading downwards. As we had expected, the price tested the level of $1,183.51 in a high volume. The short-term trend is beairsh. The price broke the strong support cluster at $1,201.00 and we may expect further bearish direction. We can observe a sign of weakness (SOW) after a breakout of trading range, which signals that buying looks risky. Our Fibonacci retracement 61.8% at the level of $1,192.00 got broken. Support levels are at the price of $1,178.00 and $1,167.00.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,203.00

R2: 1,208.50

R3: 1,217.40

Support levels:

S1: 1,185.20

S2: 1,179.70

S3: 1,170.80

Trading recommendations: Be careful when buying gold below the price of $1,225.00 and watch for selling opportunities after retracement.

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Technical analysis of NZD/USD for May 27, 2015

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Fundamental overview: NZD/USD is expected to trade with bearish bias. It is undermined by the positive dollar sentiment, soft dairy prices, and speculation that the RBNZ would cut interest rate in the coming months. But the kiwi sentiment is soothed by the larger-than-expected New Zealand April trade surplus of NZ$123 million (versus forecast NZ$98 million). NZD/USD losses are also tempered by the kiwi demand on the soft AUD/NZD cross and NZD-USD interest differential.

Technical comment: The daily chart is negative-biased as the 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 0.7185. A break of that target will move the pair further downwards to 0.7150. The pivot point stands at 0.7270. 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 0.730 and the second target at 0.7325.

Resistance levels: 0.73 0.7325 0.7355

Support levels: 0.7185 0.7150 0.71

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GBP/USD intraday technical levels and trading recommendations for May 27, 2015

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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, then successive higher highs were established.

As anticipated, the daily closure above 1.5060 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 almost two weeks ago. Final bearish target at 1.5450 was already reached.

Moreover, a lower high was recently established at 1.5660 on Friday. That is why, intraday support-1 (price zone of 1.5500-1.5450) failed to hold the current bearish momentum.

It should be acting as intraday resistance when further retesting takes place.

On the other hand, the price levels around 1.5300 and 1.5150 are now expected to be visited soon.

The nearest support zone to meet the pair is located around 1.5080-1.5100. It should be watched for low risk BUY entries.

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Technical analysis of GBP/JPY for May 27, 2015

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Fundamental outlook: GBP/JPY is expected to consolidate with bullish bias. It is undermined by the weak GBP sentiment, increased investor risk aversion, and Japan's exports. But GBP/JPY downside is limited by buoyant USD/JPY undertone and demand from the Japanese importers.

Technical comment: The daily chart is mixed as the MACD and stochastics are bearish, five-day moving average is below 15-day moving average and is declining. Bullish outside-day-range pattern was completed on Tuesday.

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 and the second target at 190.60. In the alternative scenario, short positions are recommended with the first target at 188.60 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 187.80. The pivot point is at 189.20.

Resistance levels: 190.60 191.20 191.75

Support levels: 188.60 187.80 187

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USD/CAD intraday technical levels and trading recommendations for May 27, 2015

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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.

A 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, significant bullish support was offered around these price levels. Since then, a bullish pullback has been taking place.

The price zone of 1.2350-1.2400 remains significant intraday resistance to be watched.

This price zone will probably offer a low-risk sell entry provided that the weekly candlestick closure comes below the price level of 1.2430.

Trading recommendations:

Risky traders have taken a suggested BUY entry near the level of 1.1950. All T/P levels have already been reached. S/L should be advanced to 1.2240 to offset any associated risk.

Conservative traders can take a valid SELL entry anywhere around 1.2400 (the current price levels are less risky). S/L should be set as WEEKLY candlestick closure above 1.2450.

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

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Technical analysis of NZD/USD for May 27, 2015

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Trading recommendation:

  • According to the previous events, the NZD/USD pair has still trapped between the level of 0.7176 and 0.7372 in the daily chart.
  • Strong resistance will be formed at the level of 0.7372, providing a clear signal for sell deals with a target seen at 0.7176 in order to test the double bottom. Stop loss is to be placed above 0.7401.
  • Strong support will be formed at the level of 0.7180 providing a clear signal for buy deals with a target at 0.7280.

Observations:

  • The weekly resistance will be set at the level of 0.7280. Also, it should be noted that the double top is expected at 0.7372.
  • The weekly support is seen at 0.7180. Also, the double bottom is expected at 0.7176.
  • If the trend is upward, the strength of the currency pair will be defined as following: NZD is in uptrend and USD is in downtrend.
  • Fibonacci retracement is used to determine accurate psychological levels of support and resistance. The period of time should be taken into account. Fibonacci is in a range trade; it looks like the trend is trapping and going up or down. If you sell or buy for a long term in this period, you will surely lose your profit.
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Technical analysis of AUD/USD for May 27, 2015

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Overview:

  • The resistance of the AUD/USD pair was set at the level of 0.7773 and the support is found at 0.7682. So, according to the previous events, the AUD/USD pair will be traded between the resistance and the support. As a rule, history will probably repeat itself at this level again. Therefore, we expect a range about 91 pips on May 27, 2015. Accordingly, if the trend fails to close below the level of 0.7773, then it will be a good opportunity to sell below the level of 0.7773 with the first target at 0.77700, then it will be continued straight towards 0.7682 in coming minutes.The stop loss should always be taken in account because it should never exceed your maximum exposure amounts. Hence, the best location to set your stop loss should be placed above the resistance of 0.7780.

Observations:

  • The Risk of 60 pips must make a profit of 91 pips.
  • The value of 38.2% Fibonacci retracement levels is: 0.7773.
  • Volatility: 172.84. As a rule, the market is highly volatile if the previous day had a huge volatility.
  • In the short term, the support is likely to be found at the level of 0.7682 and the resistance is seen at 0.7773.
  • It should be noted that if there is no significant news to influence, the market price will be moving from pivot point to resistance 1 or support 1. But if there is significant news to influence, the market price may go straight through resistance 1 or support 1 and reach resistance 2 or support 2 and even resistance 3 or support 3.
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EUR/CAD rejected support on daily char

While EUR/CAD tested a low of 1.3025 on April 17 following a sharp upward correction, it formed a bullish divergence on the RSI oscillator. This could be an indication that the correction is not over yet and pair could be reaching new highs. But, it has to break above already formed resistance near 1.3750.

After the first corrective wave up, the pair retraced back to the 38.2% Fibonacci that is applied to a low of 1.3025 (back on April 17) and a high of 1.3807 (back on April 17). On the daily chart, EUR/CAD rejected S1 (closed above). At the same time, it has nearly tested 50% retracement level marked S2. Finally, the pair formed a doji candle and just broke above its high suggesting the price is ready to rise.

Consider buying EUR/CAD near a high of the doji candle that is 1.3567. The pair is expected to form a triple top near the level of 1.3750 where strong resistance can be observed. Only a break below S2 (1.3416) would be able to push the price lower to S3 (1.3323).

Support: 1.3567, 1.3507, 1.3416, 1.3323

Resistance: 1.3623, 1.3751, 1.3807

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Technical analysis of EUR/JPY for April 27, 2015

General overview for 27/05/2015 09:55 CET

There are two possible scenarios on the intraday chart. Both scenarios depend on the key level violation. The first main count scenario indicates that wave (ii) green is completed and wave i blue is in place. So, the current upside rally is only a minor, internal corrective cycle that should terminate below the intraday resistance at the level of 134.50 and continue lower. On the other hand, alternative count indicates a more complex corrective structure in wave (ii) green and a breakout which is likely to take place above the intraday resistance in order to complete wave c green is of the overall structure. In both scenarios the key level is intraday support at the level of 133.65 because any breakout lower will be considered bearish.

Support/Resistance:

133.08 - Technical Support

133.65 - Intraday Support|Key Level|

134.29 - Weekly Pivot

134.50 - Intraday Resistance

135.23 - WR1

135.31 - Technical Resistance

Trading recommendations:

Daytraders should consider opening sell orders from the current levels with SL just above the level of 134.51 ant TP at the level of 133.65. Please notice that even greater sell-off in this market can happen if the lower technical support at the level of 133.08 is violated.

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#USDX technical analysis for May 27, 2015

The US Dollar Index has made a short-term reversal and is showing signs of an imminent pullback. Bulls managed to reach the 61.8% retracement of the decline from 100 to 93.10 and a small pullback is justified here. The upward move from 93.10 is impulsive and this implies that it is more probable that a new upward move has started.

Green line= trend line support

The US Dollar Index has short-term support at 96.85 and more importantly at 96.40. Trendline support is at 96-95.80. I believe this is just another corrective pullback before the resumption of the uptrend. I remain longer-term bullish as long as we trade above 94.80.

Black area = support

The US Dollar Index has managed to break above the black resistance area that is now support. Bulls have also managed to break inside the Ichimoku cloud and are fighting to stay inside. This is a bullish signal. Daily support is found at 96 and at 95. I believe the correction ended at 93.10 and a new upward move has started. I remain bullish.

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Gold technical analysis for May 27, 2015

Gold price was pushed lower yesterday after the Leading Indicators numbers release and reached the support level of $1,185 by the upward sloping trendline. My longer-term view remains bearish as I believe that the area of $1,130-40 will be tested again once we break out of the trading range of $1,220-$1,175.

Red line = trend line support

As can be seen in the 4-hour chart above, the trendline that connects important lows was reached yesterday and support was held. However, the price is below the Ichimoku cloud, which means that the short-term trend remains bearish. Today, we could see a bounce towards $1,200, which is the 1st short-term resistance level. A breakout below $1,180 will not be a good sign.

The weekly chart remains bearish as the price was rejected once again at the kijun-sen and the price is trading below the tenkan-sen. The price also was rejected at the cloud resistance and this is another bearish sign. The weekly chart remains below the cloud and I believe in the longer-term we will see Gold price below $1,150-$1,130. This is critical support that if broken it can push price towards $1,000.The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of USD/CAD for May 27, 2015

General overview for 27/05/2015 09:15 CET

The count has been slightly adjusted to incorporate an extended wave 5 blue to the upside that contributes to the overall impulsive wave progression and might end at the level of 1.2447. Currently, the market is likely to be ready to make some minor internal corrective cycle labeled on the chart as wave 2 blue. But this cycle might get complex. Grey area is the possible reversal zone for the wave a purple as a part of the corrective cycle. The projected target for the whole corrective structure is at the level of 1.2321.

Support/Resistance:

1.2458 - WR1

1.2447 - Swing High

1.2375 - Intraday Support

1.2356 - Intraday Support

1.2321 - Intraday Support

Trading recommendations:

Daytraders should consider opening buy orders if the price gets to the grey rectangle zone with SL just below the grey rectangle. Please notice that trading inside of a corrective cycle might get choppy and full of fake breakouts. So, we advise to wait for the corrective cycle to complete and then open buy orders.

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Technical analysis of Silver for May 27, 2015

Technical outlook and chart setups:

Silver is trading around $16.77 levels at the moment after having formed lows at $16.65. The metal has bounced off the fibonacci 0.618 levels of the rally between $16.20 and $17.70/80. There is still a potential of a resumption of the rally above $18.40/50. It is hence recommended to remain long for now with risk at $16.20. Immediate support is seen at the level of $16.20 followed by $15.80 and lower. Resistance is seen at the level of $17.30 followed by $17.70, $18.40/50, and higher respectively.

Trading recommendations:

Remain long, stop at $16.20, a target is open.

Good luck!

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Technical analysis of Gold for May 27, 2015

Technical outlook and chart setups:

Gold is trading around $1,190.00 now after it formed a potential higher low at $1,185.00 yesterday. The metal dropped a bit lower than expected yesterday before pulling back higher. Please note that fibonacci 0.618 levels are still held and bulls are expected to rally untill prices stay broadly above $1,180.00 levels. It is hence recommended to hold long positions, with risk around $1,180.00. Immediate support is seen at $1,180.00 followed by $1,168.00/70.00 and lower. Resistance is seen at $1,215.00 (interim) followed by $1,230.00, $1,240.00, and higher respectively.

Trading recommendations:

Remain long for now, stop at $1,180.00, a target is open.

Good luck!

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Technical analysis of EUR/JPY for May 27, 2015

Technical outlook and chart setups:

The EUR/JPY pair is trading at 134.20/30 for now after it has formed an intermediary base around the level of 133.00. The pair could rally further up to 135.50/136.00 before retracing lower towards 130.00 and subsequently towards 129.00. It is still possible that the pair prints another high above 137.00 before reversing sharply. Hence recommendations are to hold long positions for now. Immediate support is seen at 133.00 followed by 131.50, 128.00, and lower. Resistance is seen at 135.40 (interim) followed by 136.50, 137.00, and higher respectively.

Trading recommendations:

Remain long move stop to break even levels, a target is open.

Good luck!

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Technical analysis of GBP/CHF for May 27, 2015

Technical outlook and chart setups:

As discussed yesterday, there was no significant changes in the price action up to now and the GBP/CHF pair is preparing for a retracement before resuming its rally. The pair is trading around the level of 1.4650 at the moment and might want to test 1.4700/10 before reversing lower towards 1.4150. It is recommended to remain short and look to add further around the levevl of 1.4700 with risk around 1.4760. Immediate support is seen at 1.4530 levels followed by 1.4400, 1.4300/50, and lower. Resistance is seen at 1.4700/10 followed by 1.4850 and higher respectively.

Trading recommendations:

Remain short for now, stop at 1.4760, a target is open.

Good luck!

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Elliott wave analysis of EUR/NZD for May 27, 2015

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Technical summary:

We are still looking for one final decline closer to the ideal target at 1.4725. That said yesterday's rally to 1.5079 wasn't a part of our roadmap and it does cause concern. The only pattern that allows the overlap we saw yesterday is an ending diagonal. So, this is what we will be looking for as long as resistance at 1.5079 protects the upside.

That said, a break above resistance at 1.5079 will invalidate the bearish count and indicate that a bottom already is in place at 1.4926 and a new impulsive rally in wave (iii) should be expected.

Trading recommendation:

We are short EUR from 1.4995 and will move our stop+reverse lower to 1.5080 and we will place take profit+reverse at 1.4950.

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Elliott wave analysis of EUR/JPY for May 27, 2015

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Technical summary:

We saw a minor wavefive rally from a low of 133.07, which tells us that the correction in wave (ii) is over and wave (iii) higher towards at least 144.03 and more likely to 150.77 is developing. In the short term, we will ideally see the 61.8% corrective target of blue wave i at 133.62 protecting the downside for a break above minor resistance at 134.11 and more importantly a break above 134.52 confirming wave (iii) higher is developing.

As long as minor resistance at 134.18 is able to protect the upside, we must allow more deeper correction in blue wave ii, but at no point a break below 133.07 can be allowed or this count will be invalidated.

Trading recommendation:

We will buy EUR at 133.50 or upon a break above 134.18 (one order done cancels the other) stop will be placed at 133.00

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Technical analysis of GBP/USD for May 27, 2015

The UK retail sales hit a 27year high. The growth in retail sales picked up strongly in the year to May and expectations for the next month are at their highest for 27 years, according to the CBI's latest quarterly Distributive Trades Survey. CBI Director of Economics Rain Newton-Smith said, “Low inflation, which we expect to remain below 1% for the rest of the year, has given household incomes a much-needed boost and greater spending power". The pound fell against USD for the third consecutive day. The stronger US data pushed the majors to lower levels against USD. The cable is trading at a 2-week low.

The cable has the nearest support found at 1.5345. Yesterday, the cable managed to help support at 61.8FE. Intraday support is found at 1.5380, 1.5355, and 1.5345. The hourly momentum indicators indicating oversold levels. The buying opportunity is available in two options. Safe trades should buy above 1.5400 with small targets at 1.5420, 1.5440, and at least 1.5460. Risky traders should use sl 1.5340 to buy. Though, we maintain our view bearish for coming days. Today, we recommend a minor opportunity buying with small sl. Bears have two different options at today's session: to use a rise to sell between 1.5460 and 1.5490 sl 1.5510 or to sell below 1.5340, 1.5300, and 1.5260. Intraday resistance is seen at 1.5470 2Dsma. Weekly support is found at 1.5150 and 1.5100.

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Technical analysis of USDX & USD/JPY for May 27, 2015

TStrong US data helped the US Dollar Index inch above 50Dsma. The USDX managed to close above 50Dsma as well. The Conference Board Consumer Confidence Index, which declined in April, increased moderately in May. The Index stands at 95.4 now, up from 94.3 in April. The US housing data added extra power to the USD bulls. New homes purchasing in the US expanded in April. Intraday resistance is seen at 97.50. Fresh move is likely to take place above 97.50 towards 98.40 and 99.20. We initially advised buying at 94.20.

USD/JPY

We have been repeatedly advising buying this pair on every dip with sl 118.00 later raised the TSL for targets at 122 and 123.00 (Article May 14&15). Finally, the pair met our targets after 9 days. Yesterday's stellar intraday fireworks took place after more than 3 months. The nearest resistance is seen at 123.66 and 124.13 that were highs back in July 2007 and June 2007. Today, the pair made a high at 123.32, which is a double top. Small buying is available above 123.35 with targets at 123.50/123.60 and 124.10/124.20. Before the next move up, we expect the pair to correct a bit targets at 125.00 and 125.70.

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Technical analysis of USD/CAD for May 27, 2015

USD/CAD

Ahead of the BOC rate statement, CAD is trading higher against USD early at the Asian session. The monthly monetary policy statement is due for 10.00am ET. Canada's economy remains in optimistic mood. The weak loonie helps the export-led economy to expand exports. Falling oil prices are influencing the economy of Canada. We expect Poloz to mantain rates unchanged at 0.75%. The pair gave another stellar move yesterday. The pair has been gaining for 3 days. The pair managed to close above 100Dsma and 20Wsma at yesterday's session. Another great work of bulls. We have been repeatedly advising buying from 1.2000 (May 15th). Buy on dips continues. We recommend intraday fresh buying above 1.2450 with targets at 1.2480 and 1.2520. In case of a daily close above 1.2365, bulls will aim at 1.2650. In case of a weekly close above 1.2400, bulls will aim at 1.2800.

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Daily analysis of USDX for May 27, 2015

The USDX managed to break the resistance zone of 96.97 and now it's focusing to test the next upside target at 98.08. We're at important levels and we should be cautious when trading owing to bullish momentum on the Index. As the current price action is showing that bulls are in control, we should follow this bias.

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In the H1 chart, the USDX continues to trade in favor of the upward trend. Also, it's moving sideways, that could mean it could be forming a bullish pattern. In case of success, it has to break the resistance level of 97.60 in order to rally towards the level of 97.97. 200 SMA is still bullish, but the MACD indicator is in the negative territory.

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Daily chart's resistance levels: 98.08 / 98.64

Daily chart's support levels: 96.97 / 95.74

H1 chart's resistance levels: 97.16 / 97.97

H1 chart's support levels: 97.16 / 96.90

Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the US Dollar Index breaks with a bullish candlestick; the resistance level is at 97.60, take profit is at 97.97, and stop loss is at 97.25.

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Daily analysis of GBP/USD for May 27, 2015

The GBP/USD pair is still bearish and it's prepearing to test the support level at 1.5346 again. There is a high risk of a breakout in that territory for a lower continuation towards the support level of 1.5199 in coming days. 200 SMA is still flat on the daily chart. We would expect some kind of sideways moves before that possible breakout.

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In the H1 chart, GBP/USD is trading in favor of the intraday bearish bias below the 200 SMA. Also, the bottom at the support level of 1.5358 is still solid and that's why we would expect a lower low pattern formation. For now, GBP/USD continues to form lower swings and the current structure is favoring downside.

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Daily chart's resistance levels: 1.5543 / 1.5745

Daily chart's support levels: 1.5346 / 1.5199

H1 chart's resistance levels: 1.5443 / 1.5513

H1 chart's support levels: 1.5358 / 1.5259

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 1.5358, take profit is at 1.5259, and stop loss is at 1.5459.

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Daily analysis of major pairs for May 27, 2015

EUR/USD: This pair has moved downwards by around 120 pips this week. Now, it is trading below the resistance line at 1.0900. The support line at 1.0800 could be tested this week as the price continues its weakness. The resistance line at 1.0950 is a good barrier to the bulls' interests now.

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USD/CHF: This currency trading instrument has moved upwards by about 100 pips this week. Now it is moving above the support level at 0.9500. The resistance level of 0.9600 could be tested today or tomorrow as the price continues to show lots of stamina. The support level at 0.9400 could do a good job in frustrating the bears' effort in the days to come.

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GBP/USD: As it was mentioned in yesterday's forecast, the distribution territory at 1.5400 was breached to the downside. There is a strong Bearish Confirmation Pattern in the market and additional accumulation territories at 1.5300 and 1.5250 could be breached to the downside. However, this would not happen without some obstruction from bulls.

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USD/JPY: The USD/JPY pair has moved upwards by over 370 pips since it went up from the demand level at 119.50. There is a very strong bullish bias on the market, which would continue until there is significant weakness in USD. As long as USD is strong, the price would continue its upward journey, battering the supply level at 124.00.

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EUR/JPY: The weakness in the yen lets this cross to avoid bearish plunge, which is as strong as that of the EUR/USD. However, a bias is bearish as the EMA 11 is below the EMA 56 and the RSI period 14 is below the level of 50. Further bearish movement is possible.

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Technical analysis of EUR/USD for May 27, 2015

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When the European market opens, economic data on the Belgian NBB Business Climate, German 30-y Bond Auction, ECB Financial Stability Report, and GfK German Consumer Climate are due. The US is not expected to release any economic data today. So amid the reports, EUR/USD will move low to medium volatility during this day.

TODAY TECHNICAL LEVELS:

Breakout BUY Level: 1.0938.

Strong Resistance:1.0932.

Original Resistance: 1.0921.

Inner Sell Area: 1.0910.

Target Inner Area: 1.0885.

Inner Buy Area: 1.0860.

Original Support: 1.0849.

Strong Support: 1.0838.

Breakout SELL Level: 1.0832.

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 27, 2015

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In Asia, Japan will release the Monetary Policy Meeting Minutes while the US is unlikely to release any economic data today. So, there is a strong probability that USD/JPY will move with low volatility during the day.

TODAY TECHNICAL LEVELS:

Resistance. 3: 123.81.

Resistance. 2: 123.57.

Resistance. 1: 123.33.

Support. 1: 123.03.

Support. 2: 122.79.

Support. 3: 122.55.

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

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

Technical analysis of EUR/CAD for May 27, 2015

Ahead of the BOC rate statement, CAD is trading higher against the euro. The monthly monetary policy statement is due for 10.00am ET. Canada's economy remains in optimistic mood. The weak loonie helps the export-led economy expand exports. Falling oil prices are influencing the economy in Canada. We expect Poloz to maintane rates unchanged at 0.75%. The cross is trading at 1.3515 compared to Tuesday's closing price of 1.3518. Bulls are likely to find support at 1.3430, 1.3400, and 1.3385. Bulls' last hope lies at 1.3380.

Intraday support is found at 1.3500, 1.3475, and 1.3425. Intraday selling is available below 1.3490 with targets at 1.3475 and 1.3430. In the latter case the price is likely to re-test the level of 1.3400. Safe selling is seen below 1.3475. The panic will be triggered below 1.3380 at 1.3270 and 1.3210 in a day or two.

Intraday buying is available above 1.3540 with targets at 1.3560, 1.3580, and 1.3600. For positional bulls, risk buying is available between 1.3430 and 1.3400 sl 1.3380. The real bulls strength is available above 1.3600 towards 1.3660. Bulls will aim at a new high in case the level of 1.3670 gets broken.

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Technical analysis of EUR/USD for May 27, 2015

Today is understandably a quiet day for the euro because of lack of macroeconomic data. Traders shifted the focus to the US. The US housing data added extra power to the USD bulls. USD traded higher against majors. New homes purchases in the US expanded in April. The Federal Reserve's rate hike decision depends on data release. The CB consumer confidence increased moderately in May. The Index stands at 95.4 now, up from 94.3 in April. Yesterday's positive US data raised hopes on Fed's interest rate hike.

The pair has been falling for 3 days. After the liquidly returns, the pair posts a big drop at yesterday's session. In seven trading session, the pair posted 4 falling days. This shows the immense selling pressure on the euro takes place. The euro bulls lost the last hope at 1.0950 when the price closed below that. We initially advised selling with sl 1.1535, 1.1130 later, and again below 1.0940, low was made at 1.0863. At today's Asian session, the euro is trading higher against USD. Ahead of Germany Gfk consumer climate data, the euro is trading higher. We expect negative readings. Use rises to sell again for the targets at 1.0820 and 1.0800 initially. On May 25, we advised selling with targets at 1.0800 and 1.0550 later.

Trade: Selling below 1.0850.

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AUD/NZD intraday selling pressure

AUD/NZD had strong support around the level of 1.0740 that had been rejected for at least 4 times. Nevertheless, the price sliced through this massive support on May 22 that could be strong confirmation of the AUD/NZD being under selling pressure.

Applying the Fibonacci to the support breakout point, the R1 resistance level comes into play. The price is currently rejecting 38.2% Fibs and very successfully. At the same time we can see the pair printing lower lows and lower highs adding more confidence to the validity of the trend down.

Consider selling AUD/NZD near R1 (1.0700), which is Fibs as well as psychological resistance level. Target is 0% Fibonacci that is S2 (1.0585) support area. Only a break above R2 (1.0737) will invalidate this scenario.

Support: 1.0657, 1.0585

Resistance: 1.0701, 1.0737, 1.0773

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Technical analysis of USD/JPY for May 26, 2015

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Fundamental Overview:

USD/JPY is expected to consolidate with buoyant tone after hitting the 2.5-month high of 121.78 on Monday. USD/JPY is supported by the positive dollar sentiment on continued impact from the last Friday's higher-than-expected US April core CPI data. Financial markets in the US, the UK and Frankfurt were shut for holidays on Monday and no major data were released yesterday. USD/JPY is also supported by the higher US Treasury yields, demand from Japan's importers, and the ultra-loose Bank of Japan's monetary policy. But USD/JPY upside is limited by the Japanese exports and profit-taking on long-USD positions ahead of the US data on Tuesday.

Technical comment:

The daily chart is positive-biased as the MACD is bullish, stochastics stays elevated at overbought levels, 5 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 123.50 and the second target at 123.80. In the alternative scenario, short positions are recommended with the first target at 121.70 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 121.40. The pivot point is at 122.45.

Resistance levels: 123.50 123.80 124.15

Support levels: 121.70 121.40 121

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Technical analysis of USD/CHF for May 26, 2015

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Fundamental overview:

USD/CHF is expected to trade with bullish bias. It is underpinned by the positive dollar sentiment, the negative Swiss interest rates, and the threat of the Swiss National Bank to carry out CHF-selling intervention. But USD/CHF gains are tempered by the franc demand on the soft EUR/CHF cross.

Technical comment:

The daily chart is positive-biased as the MACD and stochastics are bullish, although the latter is at overbought levels. Five-day moving average is above 15-day moving average and is 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 0.9550 and the second target at 0.96. In the alternative scenario, short positions are recommended with the first target at 0.9335 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 0.9280. The pivot point is at 0.94.

Resistance levels: 0.9550 0.96 0.9635

Support levels: 0.9335 0.9280 0.9215

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Technical analysis of NZD/USD for May 26, 2015

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Fundamental overview:

NZD/USD is expected to trade with bearish bias. It is undermined by the positive dollar sentiment, soft dairy prices, and speculation that the RBNZ would cut interest rate in coming months. But the kiwi sentiment is soothed by the larger-than-expected New Zealand April trade surplus of NZ$123 million (versus forecast NZ$98 million). NZD/USD losses are also tempered by the kiwi demand on the soft AUD/NZD cross and NZD-USD interest differential.

Technical comment:

The daily chart is negative-biased as the 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 0.72. A break of that target will move the pair further downwards to 0.7170. The pivot point stands at 0.7280. 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 0.7320 and the second target at 0.7370.

Resistance levels: 0.7320 0.7370 0.7395

Support levels: 0.72 0.7170 0.7150

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