Technical analysis of GBP/JPY for July 22, 2015

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GBP/JPY is expected to trade in a lower range. It is undermined by soft GBP/USD undertone. But GBP/JPY is limited by hawkish Bank of England's monetary policy stance and sterling demand on the soft EUR/GBP cross and diminished investor risk aversion.

Technical comment:

The daily chart is negative-biased as the MACD and stochastics are bearish.

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 194.35 and the second target at 194.70. In the alternative scenario, short positions are recommended with the first target at 192.25 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 191.80. The pivot point is at 192.85.

Resistance levels: 194.35 194.70 195.45

Support levels: 192.25 191.80 191

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Intraday technical levels and trading recommendations for GBP/USD for July 22, 2015

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Evident bullish recovery emerged from the area around 1.4550 where significant bullish engulfing weekly candlesticks were expressed.

Shortly after, persistence above the levels of 1.5000-1.5080 exposed the weekly key zone of 1.5500-1.5550 where significant bearish pressure was previously applied on February 22.

Last month, the market was pushed above this weekly key zone around 1.5550 in an attempt to reach the area around 1.5900, which provided evident supply for the GBP/USD pair.

As anticipated, a bearish pullback was executed towards the level of 1.5550. A bearish breakout below 1.5500 took place two weeks ago.

However, previous week's candlestick indicates bullish rejection besides a lack of strong bearish momentum below 1.5500.

The previous weekly candlestick closure above 1.5500 hinders further bearish decline and enhances the bullish side of the market.

It allows a quick bullish pullback towards 1.5750 (supply level) as long as bulls keep defending their key level at 1.5550 (50% Fibonacci level).

On the other hand, the nearest demand level around 1.5200 becomes exposed if GBP/USD bears manage to close again below the level of 1.5500 (a very low probability).

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After a bearish breakout of the lower limit of the depicted bullish channel (roughly around 1.5500-1.5550), the market failed to gather enough bearish momentum towards the intraday demand level of 1.5100.

Significant bullish pressure was observed around 1.5200. Hence, a bullish swing was established towards 1.5780 (61.8% Fibonacci level) and 1.5880.

Previously, the price zone of 1.5800-1.5880 acted as a significant supply zone. It offered a valid sell entry few weeks ago. All T/P levels were successfully reached.

On the other hand, the level at 1.5550 (corresponding to 50% Fibonacci level and a previous prominent top) was broken temporarily allowing further bearish decline towards 1.5350 where an ascending bottom had been recently established.

Last week, strong bullish price actions have been expressed. A bullish pullback towards 1.5600 has been taking place. The level of 1.5550 was breached during last week's consolidations.

The level of 1.5770 (61.8% Fibonacci level) is the nearest supply level. A counter-trend intraday sell entry can be offered when further retesting occurs.

On the other hand, intraday bullish demand should be expected around the level of 1.5550 (was tested Yesterday). An intraday buy position can be valid as long as bulls keep on defending the level of 1.5550 on a daily basis.

On the contrary, a daily closure below 1.5550 invalidates this bullish scenario, allowing a quick bearish decline towards 1.5470 and 1.5370.

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Intraday technical levels and trading recommendations for EUR/USD for July 22, 2015

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The market was pushed lower after breaking below major demand levels around 1.2100 and 1.2000 where historical bottoms were previously hit back in July 2012 and June 2010.

EUR/USD bears have already pushed the price slightly below the monthly demand level at 1.0550 (established on January 1997). Bullish recovery was expressed shortly after.

April's monthly candlestick came as a bullish engulfing one. However, the next monthly candlesticks (May and June) reflected recent bearish rejection being expressed around 1.1450.

In the long term, a projection target is still located at 0.9450 provided that a bearish breakdown of the monthly demand level at 1.0550 occurs soon.

A bullish corrective movement towards 1.1500 could have been possible only if May's monthly high at 1.1465 gets breached (considered a very low probability currently).

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

Multiple ascending bottoms were established around the levels of 1.0470, 1.0550, and 1.0850. These levels corresponded to the daily uptrend depicted on the chart.

Further bullish pressure was observed until bearish rejection was applied around 1.1400 (long-term double-top reversal pattern).

A daily closure below the level of 1.1150 brought the EUR/USD pair towards 1.1000 again where the uptrend came to meet the EUR/USD pair.

As anticipated, a bearish daily closure below 1.0950 enabled a quick bearish decline towards 1.0850 (was already reached) and 1.0700 yet to come (projection target for the reversal pattern).

Initial bullish recovery was manifested yesterday after hitting the level of 1.0810. Bulls have been trying to bring a bullish corrective movement towards 1.1000.

A bullish pullback towards the recently-established supply zone (price zone of 1.0950-1.0990) can offer a valid sell entry. S/L should be located above 1.1050. T/P levels should remain at 1.0850 and 1.0700.

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EUR/NZD : analysis for July 22, 2015

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Overview:

Recently, EUR/NZD is moving upwards. As we had expected, the price tested the level of 1.6578 in a volume above the average. In the daily time frame, we can observe a successful test of a supply bar. There is also an inside-bar formation at the level of 16677 (held successful) and a low (support) at 1.6340. Watch for a potential breakout of inside-bar support or resistance. Besides, the price has broke our upward trendline. The short-term trend is neutral, but the mid-term trend is still bullish. I am still waiting for larger liquidity and stronger price actions to confirm the further direction.

Fibonacci Pivot Points :

Resistance levels:

R1: 1.6515

R2: 1.6550

R3: 1.6605

Support levels:

S1: 1.6400

S2: 1.6365

S3: 1.6310

Trading recommendations: Buying EUR/NZD at this stage looks risky since we have the fake breakout in the background.

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Gold analysis for July 22, 2015

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Overview:

Since our last analysis, gold has been trading downwards. The price tested the level of $1,090.22. According to the daily time frame, we can observe a weak upward bar in a high volume, so buying at this stage looks risky. According to the H1 time frame, we can observe low volatility and weak price actions. Since the price has broken support at $1,132.00, we may expect potential testing of the level of $1,035.00 (monthly support). Watch for potential selling opportunities after retracement. Selling climax is active so selling at this stage looks risky because of a possible bullish correction.The resistance level is around $1,118.00.

Daily Fibonacci pivot points:

Resistance levels

R1: 1,105.85

R2: 1,108.00

R3: 1,111.00

Support levels:

S1: 1,098.00

S2: 1,096.70

S3: 1,093.00

Trading recommendations: Supply in an ultra high volume (selling climax) is in the background. Selling gold at this stage looks risky, so watch for potential retracement. Moreover, every selling climax is potential hidden buying by professionals, so trade carefuly.

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Technical analysis of NZD/USD for July 22, 2015

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Trading recommandations:

  • The NZD/USD pair has still trapped between 0.6561 and 0.6667. In the H1 chart, resistance will be formed at the level of 0.6667, providing a clear signal for sell deals with targets seen at 0.6607 and 0.7733 in order to test the double bottom. Stop-loss is to be placed above 0.6562. In the long term, strong support will be formed at the level of 0.6562. If the trend succeeds in breaking this support, we will see a clear signal to sell again with the last targets seen at the 0.6530 and 0.6498. Stop-loss is to be placed above the resistance at 0.6690.

Notes:

  • We expect a range about 216 pips (0.6667 - 0.6561) this week.
  • The risk of 72 pips must make a profit of 216 pips.
  • The level of 0.6667 will confirm the bearish market.
  • Volatility today is 257.85. As a rule, the market is highly volatile if the last day had a huge volatility.
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Technical analysis of USD/CHF for July 22, 2015

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Overview:

  • According to the previous events, we expect a range about 86 pips in coming hours. The USD/CHF pair is still moving between 0.9560 and 0.9646. So, a breakout is seen in a ratio of 61.8% Fibonacci retracement level (0.9527: the double bottom in the daily chart). But the key level is set at 0.9579 because it represents strong support and coincides with the 78.6% Fibonacci retracement level. As it is known, history will probably repeat itself at this level again. Therefore, it will be a good sign to buy above 0.9527/0.9579 with the first target at 0.9648 in order to test the double top. If the market managese to break the double top at 0.9648, it will call for an uptrend with a view to continue its bullish movement towards 0.9683 to form a new double top. On the other hand, the stop loss should never exceed your maximum exposure amounts. Consequently, the stop loss should be placed below the double bottom at the level of 0.9502.
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Technical analysis of NZD/USD for July 22, 2015

Ahead of the RBNZ rate statement, the kiwi dollar remains under pressure against the greenback. The cross is trading near a 6-year low. Last week, the cross hit a low of 0.6498. This week, the cross managed to get above this level. The cross has been edging higher for 3 consecutive days ahead of major events.

Across the board the commodity space is the worst performing this year. A fall in milk prices depressed the kiwi. Most economists expect another rate cut by RBNZ. We can expect another 25bps rate cut to 3.0%.

The 20Dsma is found at 0.6693. Whenever the cross makes an attampt to touch the 20Dsma, the results will favor bears. We can observe 3 occasions in the daily chart.

The cross formed a double top at 0.6653 and other resistance lines are seen at 0.6685. Intraday support is found at 0.6590 and 0.6560. The buyers sl is found at 0.6550. We recommend fresh selling below 0.6550 with targets at 0.6530 and 0.6510. On the higher side, buying is available above 0.6700 with targets at 0.6740 and 0.6770.

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Technical analysis of AUD/USD for July 22, 2015

The Australian CPI data was released at today's Asian session. The cross extended its losses after the RBA statement.

Australian Q2 CPI fell by 0.7% qoq, 0.8% was expected with the former value of 0.2%.

Australian CPI was 1.5% up in the q2, 1.7% was expected with the previous value of 1.3%.

RBA Governor Stevens said that Reserve Bank of Australia would cut interest rates further considering the scope. It is necessary to boost the national economy.

RBA's goal is to achieve sustainable economic growth and maintain financial stability.

Technical view: The cross formed a double top at 0.7449, and strong supply zone is seen at 0.7500. The cross was trading at 0.7390 during the Asian session. In the daily chart, the recent movement brought the price to 0.7349. It is a key level to watch on a daily closing basis. The real selling ignites below 0.7230 for another 200 pips fall. The level of 0.7015 is a low hit back in March 2006.

The cross favors selling on rises with sl 0.7500 during a week. The intraday support is found at 0.7330 and 0.7300. Fresh selling is available below 0.7300 with targets at 0.7270, 0.7250, and 0.7230.

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Technical analysis of GBP/USD for July 22, 2015

The cable rejected at 20Dsma at yesterday's session again falling below 50Dsma but managed to close above 200Dema. It was the 5th consecutive day in a row when the cable has been consolidating with lower lows.

We can observe a wide divergence between ECB and BOE polices. But both the Fed and BoE appointed their rate hikes sometime this year. The UK and US have been implementing QE for almost six years. Traders wish to buy the pound on dips but not the euro.

According to Bank of England Governor Carney, it may become clearer when to start raising interest rates at the end. British economy still faces obstacles fiscal reform.

Amid recent developments, the cable remains in consolidation mode in the near term; it is likely to re-test 1.5500 or 1.5450. The cable has been moving towards higher lows and higher highs in the daily and four-hour charts.

Earlier in July, the cable broke the 20Dsma, but failed to close above that line. It seems that the near-term activity was capped at 1.5700. A strong close above 1.5600 20Dsma is likely to remove bulls back on track to 1.5670 initially and to 1.5700 later. In this case, gates to 1.5800 will be open. The cable broke the 3-month ascending trendline. It failed to close above it. These are few factors supporting the near-term bearish view as a low of 1.5530 was reached.

The 50Wsma is seen at 1.5600, and the 20Wsma is found at 1.5270.

Bulls: The cable posted a break from the bullish broadening wedge, closing above that line. The trend favors buying on dips with sl 1.5450. The 50Dsma is found at 1.5560, and 100Dema is found at 1.5450.

Intraday support is found at 1.5550. Resistance is seen at 1.5575 and 1.5600. At yesterday's session, the cable hit a low at 1.5530. Intraday key support to watch is at 1.5500. Selling is expected to accelerate below this level towards 1.5470 and 1.5450 during a day.

The cable has been managing to hold the neck line. It is unlikely to go further to 1.5450. Safe selling is available below 1.5520 with targets at 1.5500, 1.5485, and 1.5450.

Intraday buying is available above 1.5575 with targets at 1.5590, 1.5600, and 1.5615 favoring risky traders. Strong bullish momentum is seen above 1.5630 towards 1.5650 and 1.5675.

We remain bullish in the long term.

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Elliott wave analysis of EUR/NZD for July 22, 2015

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Technical summary:

A break below support at 1.6349 indicates that wave 1 has found a top at 1.6812 and correction in wave 2 is unfolding now. We will be looking for an opportunity to test the level of 1.6115, which acts as both the bottom of wave (iv) and the 23.6% corrective target.

In the short term, we will look for resistance to be found at 1.6568, to break below minor support at 1.6400 confirming that the next part of a decline towards 1.6115 is taking place.

Trading recommendation:

Our stop at 1.6425 was hit with a loss and we sell EUR at 1.6565 our stop placed at 1.6640. Take profit will be placed at 1.6125.

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Forecast of Gold for July 22, 2015

The metal closde at the psychological barrier of 1100.00 at yesterday's session.

The world's largest gold ETF, SPDR Gold Trust holdings, faced a decline in output of 0.69% to 689.69 tons compared to 4.77 tons a day before .

Goldman Sachs expects gold prices to fall below $ 1,000 an ounce this year.

According to UBS Wealth Management Giovanni Staunovo, the market is now betting that the Fed will raise interest rates at least once during the year, which means an opportunity of rising holding gold cost. Gold prices are seen to be trading at $ 1,050 during the next three months.

Technical forecast : The yellow metal was trading at $1,095.00 during today's Asian session compared to Tuesday's closing price of $1,100.00 .

The weekly trading pattern is framed between $1,085.00 and $1,110.00. A close on either side will lead to more room to trade.

In the weekly chart, the metal managed to hold the channel support trendline at $1,085.00.

The metal has been reaching lower highs and lower lows breaking below the large bearish head & shoulder pattern. In all time frames, the precious metal lost all moving averages.

At yesterday's session, we advised against fresh selling. Selling accelerates only below $1,085.00. Traders should sell on a rise.

The weekly support is found at $1,085.00, $1,068.00, and $1,060.00. A weekly close below $1,085.00 opens gate $1,068.00, $1,045.00, and $1,005.00. In the monthly chart, strong support zone is seen between $1,045.00 and $1,032.00. The metal fell below the 14-year ascending trendline in the monthly chart. The strong supply zone is seen at $1,134.00, $1,142.00, and $1,163.00 in the extreme case.

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Intraday: Intraday support is found at $1,094.00 and $1,085.00. Resistance is seen at $1,103.00, $1,105.00, and $1,110.00. Intraday selling is available only below $1,094.00, buying opportunities arise above $1,103.00 with targets at $1,105.00, $1,108.00, and $1,110.00. An impulsive pullback looms above $1,110.00 towards $1,118.00. Traders eye today's US existing home sales data. In case of negative data, gold is likely to be utilized the window of opportunity to snap out of its drastic fall.

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USDX technical analysis for July 22, 2015

The US dollar index has broken the short-term upward sloping channel and is showing signs of a short-term reversal. As I mentioned in my last analysis, it was highly probable to see a short-term pullback in the USDX towards 97. However, the longer-term trend remains bullish.

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Black lines - bullish channel

The US dollar index has made a pullback yesterday and remains weak this morning. The price is expected to test the Ichimoku cloud, but at the same time, we see that it remains inside the bullish channel. Important support is found at 97-96.80 area and I believe it should hold and produce a bounce if tested.

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Blue line - horizontal resistance

The weekly chart remains bullish despite the red candle and the pullback in the price. I was expecting a pullback to test support by the kijun-sen (yellow line). A weekly close above 98 will be the sign that the uptrend resumes. Bulls should be very cautious if the price breaks below 96.80.

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Gold technical analysis for July 22, 2015

Gold price remains in a bearish trend and is now giving new short-term sell signals as the upward bounce is corrective and not strong enough to move past the 38% retracement. More downside movememts are therefore expected with main targets around $1,040-$980.

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Blue line - trendline resistance

Gold price remains below the blue trendline resistance and below the Ichimoku cloud. The price bounced towards the 38% retracement level after the big downward spike early on Monday. However, bulls are not strong enough to push the price higher, sellers dominate and are now pushing the price back to the Monday lows. The breakdown level of $1,130 is very important resistance now and a critical level for the medium-term trend.

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Blue line - long-term support

Red lines - equal size decline projection

The weekly trendline support is broken. Tenkan-sen and kijun-sen indicators are negatively sloped. The price is below the Ichimoku cloud. An equal decline relative to the one from January 2015 could push the price below $1,000. I remain bearish targeting $1,040 and $980. The trend will change on a weekly close above $1,140.

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Technical analysis of CHF/JPY for July 22, 2015

According to my previous CHF/JPY analysis, after rejecting R2 and R3, the pair started to move lower. On the daily chart, yesterday, the pair rejected the R1 (129.31) resistance and the downtrend trendline, which should be the starting point for the next wave down.

It seems very reasonable to consider selling CHF/JPY today at the current rate while it is near R1. The target is 0% Fibonacci level applied to the ascending channel breakout point. I would not expect any moves or spikes higher than yesterday's high (129.62) where the stop loss could be placed, which gives a very high risk reward sell trade.

Support: 128.09, 126.09

Resistance: 129.31, 130.30, 131.29

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

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Technical summary:

A low of 134.28 was reached. In the short term, we need a break above minor resistance at 136.38 to confirm a low for wave (ii). Acceleration in wave (iii) is to be expected for a rally to 146.28.

There is still the risk of a break below support at 133.27 that will shift the count to a much more bearish one. If support at 133.27 gets broken, the rally from 126.05 wil be done only in three waves, which is a sign of a correction calling for a new decline to 126.05 and even lower.

Trading recommendation:

We are long EUR from 134.07 and will move our stop higher to 134.30. If you are not long EUR yet, then buy a break above 136.38 and use the same stop at 134.30

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Daily analysis of major pairs for July 22, 2015

EUR/USD: This pair rallied by 150 pips at least yesterday, but the bearish bias is not over. What can render the bearish bias invalid is a condition in which the price goes above the resistance line at 1.1050. If the price fails to cross above that resistance line, a new lease of bearish movement might begin.

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USD/CHF: The USD/CHF pair was corrected lower yesterday. Unless the support level at 0.9500 is breached to the downside, this would be seen as an opportunity to go long when things are on sale and in the context of an uptrend. In case the USD gains stamina, the pair may rally again.

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GBP/USD: Irrespective of the recent consolidation, there is still a clean bullish bias on the Cable. For the bullish bias to continue being valid, the distribution territory at 1.5650 must be breached to the upside. Otherwise, there could be a risk of a strong bearish correction this week.

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USD/JPY: The USD/JPY pair went below the supply level at 124.50 yesterday. This is seen as a bearish correction in the context of an uptrend, and it may offer another opportunity to go long at a better price. However, this assumption will be valid only as long as the price is above the demand level at 123.00 because a movement below that demand level would signal a bearish bias.

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EUR/JPY: This currency trading instrument went upwards from the demand zone at 134.50 reaching the supply zone at 135.50. Unless the price trends downwards again, further rally may render the bearish outlook invalid. The greatest determinant of the movement itself is the euro.

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Technical analysis of EUR/JPY for July 22, 2015

General overview for 22/07/2015 08:05 CET

The weekly pivot at the level of 134.05 provided good support for the market to bounce higher, just as anticipated yesterday. The nature of this move is not clearly impulsive yet as it looks like a three-wave move upward so far. Nevertheless, if the intraday resistance at the level of 135.75 is violated before any fresh low is made, much higher levels should be expected.

Support/Resistance:

136.17 - WR2

135.75 - Intraday Resistance

135.34 - WR1

135.04 - Weekly Pivot

134.23 - WS1

Trading recommendations:

As long as the weekly pivot provides support, daytraders should consider opening buy orders with SL below the level of 135.00 and TP at the level of 136.17.

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Global macro overview for July 22, 2015

Global macro overview for 22/07/2015:

The highly anticipated BoE minutes from its July MPC monetary policy meeting are today's the most important news event that might shed some light on further BoE interest rate decision. The 0-0-9 pattern that dominated before the minutes outcome for the recent months might finally see some changes. BoE governor Mark Carney says that the decision on when to start the adjustments to the normalization policy is getting more and more probable at the turn of the year. The two biggest hawks in the MPC group, Martin Weale and Ian McCafferty, might even vote for a rate hike today. If anyone else will join them, GBP/USD will rally to the upside.

The scheduled news release is as follows (GMT):

08:30 Great Britain MPC Minutes

08:30 Great Britain MPC Official Bank Rate Votes

08:30 Great Britain MPC Asset Purchase Facility Votes

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Global macro overview for July 22, 2015

Global macro overview for 22/07/2015:

The Reserve Bank of New Zealand (RBNZ) will announce its benchmark interest rate decision later today. The market does not expect any rate cut from the current level of 3.25% maybe because two weeks ago the RBA decided to leave the interest rates unchanged at the level of 2%. The other factor is the previous rate cut to 3.25% from 3.5% at the RBNZ meeting on July 11, 2015. Nevertheless, deteriorating economic conditions, including sluggish global growth and mixed data on the New Zealand strategic partners US and China, the decrease in export commodity prices, and Iranian nuclear deal, are not helping the New Zealand economy to get back on steady and sustainable path of progress.

Any unexpected rate cut tonight might produce a short squeeze on main NZD pairs, including USD/NZD, GBP/NZD, and AUD/NZD.

The scheduled news release is as follows (GMT):

21:00 New Zealand Official Cash Rate 3.25%

21:00 New Zealand RBNZ Rate Statement

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Technical analysis of USD/CAD for July 22, 2015

General overview for 22/07/2015 08:20 CET

The first corrective sub-wave down has been made, however there is still a possibility for a more aggressive sell-off if the intraday support at the level of 1.2915 is violated. That is why, the current labeling of the wave down is 2 or a black as the corrective cycle might still get more complex and time-consuming. To invalidate this scenario, a clear and impulsive price spike up above the level of 1.3022 is needed.

Support/Resistance:

1.3022 - WR2

1.3006 - WR1

1.2955 - Weekly Pivot

1.2932 - WS1

1.2915 - Intraday Support

Trading recommendations:

Swingtraders should still keep their long-term buy orders intact as impulsive wave development to the upside has not been completed yet.

Daytraders should consider buying on the dips in this market with SL below the level of 1.2915 and TP at the level of 1.3022 with a possible breakout even higher before the week end.

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Technical analysis of EUR/USD for July 22, 2015

The euro rebounds from the support zone managed to gain more than 1% at yesterday's session. Greece is approaching a new bailout, which is likely to be in few weeks. The Greek banks are open for the first time in three weeks.

Standard & Poor raised its sovereign rating for Greece from CCC- to CCC +, to stable from negative.

The pair closed below 20Wsma. It formed a large distribution channel between 1.1467 and 1.1437. In the daily chart, the pair lost all moving averages. The nearest support is found at 1.0785. The 20Wsma is seen at 1.1020, as a high of 1.0970 has been reached. In different time intervals, hourly and daily charts, the oscillators indicate oversold levels.

The pair has been moving towards lower lows and lower highs falling below the lower edge of the ascending trendline. We recommend fresh selling only below 1.0780 initially with a target at 1.0720 later, in order to extend towards 1.0630, but not yet triggered.

The pair hit a higher high in the H1 chart for the first time in 10 days. Intraday resistance is seen at 1.0970, 1.1000, and 1.1020. Support is found at 1.0930, 1.0930, and 1.0860. Monthly support is found at 1.0730. The trend shifts to buying with sl 1.0850 if a dip is available. In case the pair loses 1.0860 again, sell towards 1.0820 and 1.0800.

Today's trade remains under the influence of the US housing data.

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Technical analysis of EUR/USD for July 22, 2015

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When the European market opens, the economic news on Italian Retail Sales m/m is due.The US will release data on crude oil inventories, existing home sales, and HPI m/m. So amid the reports, EUR/USD will move low to medium volatility during this day.

TODAY TECHNICAL LEVELS:

Breakout BUY Level: 1.0988.

Strong Resistance:1.0982.

Original Resistance: 1.0971.

Inner Sell Area: 1.0960.

Target Inner Area: 1.0935.

Inner Buy Area: 1.0910.

Original Support: 1.0899.

Strong Support: 1.0888.

Breakout SELL Level: 1.0882.

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

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

Technical analysis of USD/JPY for July 22, 2015

1437531498_!USDJPY.jpg

In Asia, Japan will release data on the all industries activity index m/m and the US will release data about crude oil inventories, existing home Sales, and HPI m/m. So, there is a strong probability that USD/JPY will move with low to medium volatility during the day.

TODAY TECHNICAL LEVELS:

Resistance. 3: 124.38.

Resistance. 2: 124.14.

Resistance. 1: 123.89.

Support. 1: 123.60.

Support. 2: 123.35.

Support. 3: 123.11.

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 Gold for July 22, 2015.

Technical outlook and chart setups:

Gold is trading lower around the level of $1,095.00 levels for now, consolidating before pushing higher towards $1,130.00/40.00 levels. The metal remains in control. The metal us likely to find support around $1,030.00 as discussed earlier. It is recommended to remain flat for now and look for an opportunity to sell higher towards $1,130.00/40.00. Immediate support is seen at the level of $1,087.00 (interim), followed by $1,052.00, $1,030.00, and lower, while resistance is seen at $1,130.00/40.00 followed by $1,150.00, $1,175.00, and higher respectively.

Trading recommendations:

Remain flat now.

Good luck!

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

Technical analysis of Silver for July 22, 2015.

Technical outlook and chart setups:

Silver is trading around $14.75 at the moment, consolidating in a cone manner as depicted here. A south-side breakout could push the metal down to test the level of $14.55 and lower to perform a bullish break of $15.20 and $15.50 respectively. It is recommended to hold long positions for now with risk at $14.25. Immediate support is seen at the level of $14.55 (interim), followed by $14.00, $13.00, and lower while resistance is seen at $15.20 followed by $15.50, $15.75 (interim), and higher respectively.

Trading recommendations:

Remain long with stop at the level of $14.25 for now.

Good luck!

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

Technical analysis of EUR/JPY for July 22, 2015

Technical outlook and chart setups:

The EUR/JPY pair is retracing lower around to the territory around 135.45/50 now after hitting 135.75 earlier. The pair is expected to form a base around 135.00/134.80, before resuming its rally. Please note that the short-term support trendline is also passing through the same levels. It is recommended to hold long positions for now with risk at 133.00. Immediate support is seen at 134.00/20 levels (interim) followed by 133.00/25, 131.50, and lower respectively, while resistance is seen at 136.30 levels followed by 137.75, 139.00, and higher respectively.

Trading recommendations:

Remain long for now, stop is at 133.00, a target is open.

Good luck!

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

Technical analysis of GBP/CHF for July 22, 2015

Technical outlook and chart setups:

The GBP/CHF pair is trading around the level of 1.4900 at the moment, after reaching lows at 1.4875 in early hours today. As we can see here, the pair has hit its first expected fibonacci extension level for now, and a pullback could be possible. It is recommended to book profits on short positions taken earlier and remain flat for now. Immediate support is seen at 1.4850 followed by 1.4750, 1.4560, and lower, while resistance is seen at 1.5025 followed by 1.5100 and higher respectively. Please note that the pair could still drop to 1.4800 before resuming rally.

Trading recommendations:

Book profits on short positions taken earlier, and remain flat for now.

Good luck!

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

Daily analysis of USDX for July 22, 2015

The USDX did a pullback. Now, it is consolidating back below the resistance level of 97.47 on the daily chart and that's why the nearest targets are located in the downside, around the support level of 96.57. A breakout there will open doors to the important support at 95.63. The MACD indicator is still at positive territory.

USDXDaily.png

On the H1 chart, the USDX is forming a lower low pattern above the 200 SMA now and we should be aware of support zone around the level of 97.12, because a breakout could happen there. On the other hand, we can expect a rebound there also, if the Index finds strong dynamic support on that moving average mentioned above.

USDXH1.png

Daily chart's resistance levels: 97.57 / 98.29

Daily chart's support levels: 96.57 / 95.63

H1 chart's resistance levels: 97.53 / 97.77

H1 chart's support levels: 97.12 / 96.73

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 97.53, take profit is at 97.72, and stop loss is at 97.31.

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Daily analysis of GBP/USD for July 22, 2015

On the daily chart, GBP/USD has been trading in favor of a bearish bias. Now, it is testing the 200 SMA again. We are waiting for a breakout below that dynamic support. If that happens in the near terme, it would be expected to fall until the support level of 1.5450 in coming days. The MACD indicator is entering negative territory.

GBPUSDDaily.png

GBP/USD is consolidating below the 200 SMA on the H1 chart and continues to build a very solid intraday bearish structure. Support zone of 1.5524 remains very strong. Temporal bullish momentum favored price action. That is why we should wait for a breakout there in order to continue trading on the downside.

GBPUSDH1.png

Daily chart's resistance levels: 1.5640 / 1.5755

Daily chart's support levels: 1.5543 / 1.5450

H1 chart's resistance levels: 1.5596 / 1.5639

H1 chart's support levels: 1.5524 / 1.5485

Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the GBP/USD pair breaks a bullish candlestick; the resistance level is at 1.5596, take profit is at 1.5639, and stop loss is at 1.5554.

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

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

gbppppusdddaily.png

Overview:

On April 9, the bearish trend was resumed towards the level of 1.4550 where a lower daily bottom (which initiated the ongoing bullish swing) was reached.

A daily closure above 1.5060 exposed the next resistance levels at 1.5400 and 1.5450 where a temporary bearish pullback took place on April 29.

The next bullish swing extended up to the levels of 1.5750-1.5800, which offered traders few valid sell entries (depicted with red arrows). The final bearish target at 1.5450 was already reached.

Recently, strong bullish pressure was applied against the resistance levels around 1.5800 via the ongoing bullish swing.

That is why, the resistance level at 1.5800 was temporarily breached. Hence, GBP/USD bulls pursued towards 100% Fibonacci Expansion located around 1.5900 where the depicted successive lower highs were initiated.

Hence, the level of 1.5555 (prominent demand level/depicted uptrend line) got breached earlier this week due to excessive bearish pressure. This enhanced the bearish side of the market towards 1.5360.

The level of 1.5555 (prominent demand level/depicted uptrend line) got breached earlier last week due to excessive bearish pressure. This enhanced the bearish side of the market towards 1.5360.

As suggested in our previous articles, a bullish pullback towards 1.5550-1.5600 was expected to occur.

Our suggested sell entry around 1.5600 got triggered last week. It is still trading almost around entry levels. S/L should be set as a daily closure above 1.5600.

Early fixation below the price zone of of 1.5550-1.5500 is mandatory to pursue towards bearish targets, initially at 1.5450.

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

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

cadweekly.pngcaddaily.png

Overview:

When bulls pushed the price further above 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 a formation of a Triple-top pattern.

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

Daily fixation below 1.2300 opened a way towards the levels of 1.2000 and 1.1940 (the depicted weekly uptrend).

Bullish support was found around these levels. Successive higher bottoms were established. Bullish pressure was applied against the resistance levels of 1.2450 and 1.2500 (previous tops).

On the other hand, the previous weekly candlestick came quite bullish when the pair needed frank weekly closure below 1.2300. This reflected a lack of enough bearish momentum.

That is why, an extensive bullish movement is being seen on the chart. A bullish breakout above the price zone of 1.2770-1.2800 has been executed.

The long-term bullish projection target would be located at the level of 1.3080 if enough bullish support is offered around the recently established SUPPORT zone (1.2750-1.2800).

Conservative traders can wait for a bullish pullback towards 1.2800 or probably slightly lower, for a valid buy entry with a low risk/reward ratio (Breakout level = Recent Support).

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Technical analysis of USD/JPY for July 21, 2015

USDJPYM30.png

USD/JPY is expeceted to consolidate with bullish bias after hitting the monthly high of 124.38 on Monday. the pair is underpinned by the positive dollar sentiment (ICE spot dollar index last 98.01 versus 97.96 early Monday) after Fed's Bullard said he sees more than 50% probability for the US central bank to tighten the monetary policy in September. USD/JPY is also supported by the higher US Treasury yields (10-year rose 3.0 bps to 2.379% Monday), some stronger-than-expected US earnings reports, demand from Japan's importers, the Bank of Japan's ultra-loose monetary policy, and reduced safe-haven appeal of the yen as investor risk aversion subsides amid receding fears about Greece's financial situation and the signs of stabilization in China's stock markets. But USD/JPY gains are tempered by the Japanese exports.

Technical comment:

The daily chart is positive-biased as the MACD and stochastics are bullish, although the latter one 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 124.60 and the second target at 124.90. In the alternative scenario, short positions are recommended with the first target at 123.70 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 123.35. The pivot point is at 123.90.

Resistance levels: 124.60 124.90 125.45

Support levels: 123.70 123.35 123

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Technical analysis of USD/CHF for July 21, 2015

USDCHFM30.png

USD/CHF is expected to consolidate with bullish bias after hitting almost the three-month high of 0.9651 this morning. The pair is underpinned by the positive dollar sentiment, the threat of the Swiss National Bank to carry out CHF-selling intervention, the negative Swiss interest rates, and the franc sales on the rebounding EUR/CHF cross.

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 0.9655 and the second target at 0.9690. In the alternative scenario, short positions are recommended with the first target at 0.9535 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 0.95. The pivot point is at 0.9570.

Resistance levels: 0.9655 0.9690 0.9745

Support levels: 0.9535 0.95 0.9450

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Technical analysis of NZD/USD for July 21, 2015

1437491338_NZDUSDM30.png

NZD/USD is expected to trade with bullish bias. It is supported by kiwi demand on the soft AUD/NZD cross, kiwi demand on the buoyant NZD/JPY cross amid reduced risk aversion, and the comment of New Zealand Prime Minister John Key that the kiwi's decline of 25% to US$0.6500 over the past 12 months was faster than expected. But NZD/USD gains are tempered by the soft dairy prices and expectations that the RBNZ will cut the cash rate by 25 bps to 3.0% this week.

Technical comment:

The daily chart is mixed as 5- and 15-day moving averages are declining, but stochastics is turned bullish at oversold levels.

Trading recommendations:

The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. As long as the price holds above its pivot point, long positions are recommended with the first target at 0.6640 and the second target at 0.6670. In the alternative scenario, short positions are recommended with the first target at 0.6505 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 0.6465. The pivot point is at 0.6555.

Resistance levels: 0.6640 0.6670 0.6725

Support levels: 0.6505 0.6465 0.64

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