USD/CAD intraday technical levels and trading recommendations for August 3, 2015

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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 successive lower highs (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 lows 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 FRANK bullish. That is why, an extensive bullish movement is 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 maintained.

Earlier, signs of a lack of bullish momentum were manifested on the chart. A bearish corrective movement was initiated towards the price levels of 1.2900-1.2850.

However, a new bullish swing is taking place today, especially after the bullish engulfing candlestick of Friday.

Trading recommendations:

Traders can wait for a bearish pullback towards the recent breakout zone (1.2800-1.2750) for a valid BUY entry (Breakout level = Recent Support).

Stop Loss should be located below the price level of 1.2700.

T/P levels should be located at 1.2850 and 1.2900.

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Intraday technical levels and trading recommendations for GBP/USD for August 3, 2015

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Two months ago, 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.

Last week, strong bearish pressure was applied to the level of 1.5550 again. It was breached temporarily until this week's bullish recovery emerged.

Contradictory signals are coming from consecutive weekly candlesticks. This indicates a lack of 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 towards at least 1.5770 (61.8% Fibonacci level).

On the other hand, the nearest demand level around 1.5200 will become exposed if GBP/USD bears manage to keep their weekly closure below the level of 1.5500 (low probability).

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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 of 1.5550, which corresponds to 50% Fibonacci level and a previous prominent top, was temporarily broken allowing further bearish decline towards 1.5350 where an ascending bottom was recently established.

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

However, Thursday's candlestick came as a bearish engulfing one which enhanced the bearish side of the market.

That is why, the price level of 1.5550 now constitutes a significant key level to be watched for a price action.

A quick bearish decline towards 1.5470 and 1.5370 should be expected only if the level of 1.5550 gets broken again to the downside.

On the other hand, the level of 1.5770 (61.8% Fibonacci level) is the next supply level to be watched if bullish fixation above 1.5550 persists on the daily chart.

If so, a counter-trend intraday sell entry can be offered at retesting of the level of 1.5770.

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Intraday technical levels and trading recommendations for EUR/USD for August 3, 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 if a bearish breakdown of the monthly demand level at 1.0550 occurs soon.

A bullish corrective movement towards 1.1500 will be possible only if May's monthly high at 1.1465 gets breached (a low probability).

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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 again brought EUR/USD to the mark of 1.1000 where the uptrend met the pair.

A bearish daily closure below 1.0950 enabled a quick bearish decline towards 1.0850 and 1.0750.

Evident bullish recovery was expressed last week after hitting the level of 1.0800. Bulls have been trying to bring a bullish corrective movement towards 1.1000 and 1.1100.

Previously, the level of 1.1100 where the backside of the broken uptrend is located, was approached few times including last Friday. However, significant bearish rejection was expressed both times.

As long as the market keeps trading below their recent supply levels around 1.1000, the depicted Double-Top pattern remains valid.

Trading recommendations:

Conservative traders could have waited for a bullish pullback towards the recently established supply zone of 1.1100-1.1150 for a valid sell entry. S/L should be lowered to 1.1160.

T/P levels should be located at 1.0990, 1.0850, and 1.0700.

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Gold : analysis for August 03 , 2015

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Overview:

Since our last analysis, gold has been trading downwards. The price tested the level of $1,089.19. According to the daily time frame, we can observe weak demand and small real body, which is a sign of weakness. We can observe a volume spike (buying climax) followed by supply (sign of weakness). I had placed Fibonacci retracement to find potential resistance levels and got Fibonacci retracement 38.2% at the level of $1,092.00, Fibonacci retracement at 50% at the price of $1,093.00, and Fibonacci retracement 61.8% at the level of $1,094.00.

Daily Fibonacci pivot points:

Resistance levels

R1: 1,092.00

R2: 1,099.00

R3: 1,106.00

Support levels:

S1: 1,083.50

S2: 1,079.30

S3: 1,072.00

Trading recommendations: Be careful when buying gold at this stage since we have a fake buying climax in the background.

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EUR/NZD analysis for August 03, 2015

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Overview:

Recently, EUR/NZD has been moving downwards . The price tested the level of 1.6598. In the daily time frame, we can observe a demand bar which closed in the middle in a high volume (sign of weakness). The price rejected from our major resistance level (1.6805). The short-term trend has changed bullish to neutral. Be careful when buying EUR/NZD at this stage and watch for potential selling opportunities. Our upward trendline got broken in the background which is another sign of weakness.

Fibonacci Pivot Points :

Resistance levels:

R1: 1.6780

R2: 1.6850

R3: 1.6965

Support levels:

S1: 1.6545

S2: 1.6475

S3: 1.6360

Trading recommendations: Be careful when buying EUR/NZD and watch for potential selling opportunities. Strong resistance is around the level of 1.6805.

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Technical analysis of NZD/USD for August 3, 2015

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Overview:

  • According to the previous events, the NZD/USD pair is still moving below the resistance of 0.6674 (between 0.6674 and 0.6580). The key price is set at the level of 0.6588 (the daily pivot point for August 3, 2015). The double top will be formed at the 0.6690 level. As it is known, history will probably repeat itself at this level again. Therefore, it will a good sign to sell below 0.6690 with the first target of 0.6555. It will call for a downtrend in order to continue its bearish movement towards 0.6526. Besides, the double bottom will be at the point of 0.6498 on the H1 chart.

Observations:

  • If the trend is buoyant, the strength of the currency will be defined as following: NZD is in an uptrend and USD is in a downtrend.
  • As a rule, the market is highly volatile if the previous day or week has huge volatility (382.47).
  • 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 trading range; it looks like the trend is trapping and going up or down. If you sell or buy in the long term, you will surely lose your profit.
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Global macro overview for 03/08/2015

Global macro overview for 03/08/2015:

It looks like a rather hectic week ahead of the markets as the key economic data release are coming from the UK, the USA, New Zealand, Australia, and the EU. Some important monetary policy decisions will be made alongside with the news as well (RBA and BoE interest rate decisions).

The US session looks quite busy as well, with the inflation, income, and spending figures data to be released just before the opening. Despite the fact that the most of the PMI figures from top EU countries have beaten the expectations, poor PMI reading from China (five-month low) is currently shifting the market sentiment towards the US dollar appreciation. There is no sign left of the end-on-the-month-flow EUR/USD rally from last Friday as the market reversed and gave all the gains back. The most important support comes at the level of 1.0808 and if the golden trendline is violated, it will be tested very quickly.

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Global macro overview for 03/08/2015

Global macro overview for 03/08/2015:

The recent morning news from UK has beat the market expectations again. The PMI Manufacturing numbers were better than expected at the level of 51.9 vs. 51.6 expected and 51.4 prior. Readings might ensure economists that the UK economic situation is getting better and better. The view is supported by other indicators released last week (GDP at 0.7% q/q; 2.6% y/y, mortgage approvals at 66.582K , net consumer credit at 1.22 bln).

The technical situation with the GBP/USD pair is still not very clear as the market is trying to breakout above the important resistance at the level of 1.5689, but still unsuccessfully. Moreover, any breakout below the golden trendline will be considered bearish, with immediate support at the level of 1.5465.

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Technical analysis of USD/CHF for August 3, 2015

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Overview:

  • The USD/CHF pair has already faced the resistance at the level of 0.9716 and the support is seen at the level of 0.9643 in the H1 chart. Hence, we expect a range of 73 pips today. Additionally, it should be noted that if the trend is ascending, the strength of the currency will be defined as following: USD is in an uptrend and CHF is in a downtrend. Therefore, it will be of the insight to buy in this area (0.9643) with the first target at 0.9690 in order to try to break the daily pivot point. Then, the price will be able to continue in downtrend towards 0.9717 (a double bottom will be formed at the level of 0.9718). On the other hand, the stop loss should never exceed your maximum exposure amounts, consequently the stop loss should be placed below the support of 0.9643 at the level of 0.9630.
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Technical analysis of USD/CAD for August 3, 2015

General overview for 03/08/2015 13:00 CET

After breaking above the recent swing high at the level of 1.3101, the market continues to climb higher and the next resistance is seen at the level of 1.3205. Please notice that the market might be at its final stages of the upward wave development, and the alternative count indicates a possible sharp reversal to the downside after the top of wave B blue or alt:(v) green is found.

Support/Resistance:

1.3205 - WR1

1.3176 - Intraday Resistance

1.3114 - Intraday Support

1.3011 - Weekly Pivot

Trading recommendations:

Swingtraders should consider closing all mid-term and long-term buy orders as the upward cycle might be topping soon. Please wait for another buy opportunity to come when the downward corrective cycle is completed.

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Technical analysis of EUR/JPY for August 3, 2015

General overview for 03/08/2015 12:40 CET

The corrective cycle is getting more and more complex. That is why the count little changed after a wave c purple downside failure. The current count indicates a possible wave Y brown to the downside as the last sub-wave in the cycle. Any breakout below the level of 135.09 should result in an immediate test of the level of 135.51, but the market might fall even lower to test the weekly pivot support at the levels of 135.15 and 134.42.

Support/Resistance:

137.93 - Intraday Resistance

136.91 - WR1

136.24 - Weekly Pivot

135.90 - Intraday Support (weak)

135.53 - Intraday Support (strong)

135.15 - WS1

134.42 - WS2

Trading recommendations:

Daytraders should consider opening sell orders only in the level of 135.90 is violated in impulsive manner, with SL just above the level and TP at the level of 135.51.

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Technical analysis of USD/JPY for August 03, 2015

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USD/JPY is expected to trade with a bullish bias. Trading at 97.331, the US Dollar Index plunged to 96.310 in last Friday's (July 31) session after the US Labor Department's reporte that the employment-cost index had risen seasonally-adjusted 0.2% on-quarter in Q2 (vs +0.6% expected, +0.7% in 1Q), the smallest quarterly increase since 1982. While economic data dampened expectations for the Fed's interest rate increase, the US dollar made a swift rebound. Meanwhile, USD/JPY is trading below the key resistance at 124.35. As intraday indicators (20- and 50-period intraday moving averages, intraday RSI) are mixed, caution is advised. As long as the resistance at 123.80 is not surpassed, the risk of returning to the first downside target at 123.50 (around the low of July) remains high.

Technical comment:

The daily chart is still negative-biased as the MACD and stochastics are bearish, five-day moving average is below 15-day moving average and is declining.

Trading recommendations:

The pair is trading above its pivot point. It is likely to trade in a higher range as far as it remains above its pivot point. As long as the price keeps above its pivot point, long positions are recommended with the first target at 124.35 and the second target at 124.60. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 123.50. A break of this target would push the pair further downwards, and one may expect the second target at 123.30. The pivot point is at 123.80.

Resistance levels: 124.35 124.60 124.85

Support levels: 123.50 123.30 122.85

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Technical analysis of USD/CHF for August 03, 2015

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USD/CHF is expected to trade with a bullish bias. The pair has formed an intraday "V-bottom" pattern after hitting its key support at 0.9545. The bullish dynamic is strong, as the intraday RSI jumped above a descending trendline, and is heading upward now. Last but not least, the 20-period intraday MA is about to cross above the 50-period one. Given these perspectives, as long as 0.9600 holds on the downside, look for further advance to 0.9690 and 0.9720 (July 30's high) in extension.

Technical comment:

The daily chart is mixed as the MACD is bearish, 5 and 15-day moving averages are falling but stochastics are turning bullish at oversold levels.

Trading recommendations:

he pair is trading above its pivot point. It is likely to trade in a higher range as far as it remains above its pivot point. As long as the price keeps above its pivot point, long positions are recommended with the first target at 0.9690 and the second target at 0.9720. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.9570. A break of this target would push the pair further downwards, and one may expect the second target at 0.9545. The pivot point is at 0.96.

Resistance levels: 0.9690 0.9720 0.9765

Support levels: 0.9570 0.9545 0.95

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Technical analysis of NZD/USD for August 03, 2015

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NZD/USD is expected to trade above 0.6550 with a bullish bias today. The pair recently broke above an intraday declining trendline thanks to a strong technical rebound, and now stands firmly above the key horizontal support at 0.6550. Even though a continuation of the consolidation cannot be ruled out at the current stage, its extent should be limited to 0.6565. The intraday RSI lacks downward momentum. To sum up, the intraday outlook is still positive with targets at 0.6620 and 0.6660 in extension.

Technical comment: The daily chart is positive bias as RSI and the MACD are showing bullish trend.

Trading recommendations:

The pair is trading above its pivot point. It is likely to trade in a higher range as far as it remains above its pivot point. As long as the price keeps above its pivot point, long positions are recommended with the first target at 0.6620 and the second target at 0.6660. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.65. A break of this target would push the pair further downwards, and one may expect the second target at 0.6455. The pivot point is at 0.65550.

Resistance levels: 0.6620 0.6660 0.6695

Support levels: 0.65 0.6455 0.64

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Technical analysis of GBP/JPY for August 03, 2015

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GBP/JPY is expected to trade with a bullish bias. The pair is reversing down after an intraday spike on the upside. A 20-period intraday declining MA should play a role of resistance now. The intraday RSI is above 50 and is well directed .A break above the key resistance at 194.60 would call for further upside towards a high of 195.20 hit on July 29. The first target is set at the horizontal support and overlaped at 193.15. A break below this level would open the way to further weakness towards a low of 192.45 and then to 191.90.

Technical comment: RSI is above 50 and is well directed.

Trading recommendations:

The pair is trading above its pivot point. It is likely to trade in a higher range as far as it remains above its pivot point. As long as the price keeps above its pivot point, long positions are recommended with the first target at 194.60 and the second target at 195.20. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 192.45. A break of this target would push the pair further downwards, and one may expect the second target at 191.90. The pivot point is at 193.15.

Resistance levels: 194.60 195.20 196

Support levels: 192.45 191.90 191.35

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Technical analysis of USD/CAD for August 03, 2015

USD/CAD

Friday's weak US data failed to change the structural bullish market. Lower oil prices influence the CAD pushing it to the lower levels.

IMPACT ON USD:

Compensation costs for civilian workers was little changed at 0.2 percent, seasonally adjusted, for the 3-month period ending June 2015, as the US Bureau of Labor Statistics reported Friday.

Traders eye US ISM manufacturing today.

In May 2015, this pair started moving higher. It closed 5% higher in July. The pair managed to close above 1.3063.

Before further move up, we expect the price to correct a bit. The nearest resistance is seen at 1.3180. A daily close above 1.3180 will enable bulls to charge towards 1.3260 and 1.3320 in the extreme case. Monthly resistance is seen at 1.3180 and 1.3380. In all time frame, intervals oscillators are overbought.

Review: we forecasted on Friday: " Today's spike is likely to hit 1.3100 or even 1.3120" an the pair reached a high of 1.3097.

The pair is expected to hit 1.3150 or 1.3170 today.

Sell below 1.3060. Overbought indicators favor selling at higher levels.

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Technical analysis of GBP/USD for August 03, 2015

The weak US data report opened a new window for pound bulls. The triple top is formed between 1.5675 and 1.5700 zone.

IMPACT ON USD:

Compensation costs for civilian workers was little changed at 0.2 percent, seasonally adjusted, for the 3-month period ending June 2015, as the US Bureau of Labor Statistics reported Friday.

Traders eye PMI data today, besides US ISM manufacturing data is due.

Technical overview:

Earlier the cable made a strong ceiling at 1.5700. The cable broke the 3-month ascending trendline. Now it is trading below that line. In the four-hour chart, the cable fell below the bearish h&s pattern.

Bullish developments - The cable has been moving towards higher lows in the weekly chart. Support is found at 1.5450. The weekly trading pattern is framed between 1.5450 and 1.5700. After 5 weeks, the cable has finally closed above 50Wsma. In case of a daily close above 1.5700, bulls will aim for 1.5780 in a day or two.

Moving averages- The 20& 50Dsma is found at 1.5550, 100Dema is found at 1.5470, 200Dsma is found at 1.5400, 20Wsma is found at 1.5380, and 100Dsma is found at 1.5320.

Intraday - Intraday resistance is seen at 1.5650, 1.5675, and 1.5700. Support is found at 1.5600, 1.5580, and 1.5560.

Intraday buying is likeli to take place around sl 1.5580 with targets at 1.5640, 1.5670, and 1.5690. Strong momentum is expected above 1.5700.

Selling trade is available below 1.5580 with targets at 1.5560, 1.5550, and 1.5540 initially, and is likely to extend towards 1.5490 and 1.5470 later. Selling wil accelerate only below 1.5530 and trend is likely to change below 1.5440.

Whenever the cable touches 1.5675 and 1.5700, it will hit lower lows around 1.5530 and 1.5467 later. This time we can expect 1.5450 or 1.5410.

A daily close above 1.5700 is likely to enable bulls to aim for 1.5780 in a day or two.

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Technical analysis of EUR/USD for August 03, 2015

The Greek factor is back to the market again resulting in a spike at Friday's session. The pair moved towards 1.1114, but rejected at higher levels again and closed below 20Dsma. Friday's trading pattern showed that weakness still takes place. During three consecutive weeks, the pair has been closing below 20Wsma at 1.1050.

IMPACT ON EURO:

IMF official: the IMF and Greece has not reached an agreement on a new debt plan yet. Greece and Europe are ready to make the relevant decisions. The IMF officials can only support a comprehensive rescue package for Greece.

IMPACT ON USD:

Compensation costs for civilian workers was little changed at 0.2 percent, seasonally adjusted, for the 3-month period ending June 2015, as the US Bureau of Labor Statistics reported Friday.

Traders eye PMI data today, especially the one from Spain, but trade remains under the influence og the US ISM manufacturing data.

Technical view:

In the four-hour chart, the pair has been trading in an ascending bearish channel, rejected at the upper end of the trendline willing to go further down. In alternative way, a daily close above 1.1130 will be added to the system.

Until the pair trades below 1.1080, sell on rises. The supply zone remains between 1.1085 and 1.1100 50Dsma. Until the price closes below 1.1100, selling on a rise will favor the positional trade. We have been recommending the same strategy for a while, the Friday's session proves the strategy remains in play for the near term. Monthly support is found at 1.0730.

Intraday resistance is seen at 1.1000, 1.1040, and 1.1085. Support is found at 1.0960, 1.0920, and 1.0890. In case the pair lost 1.0850, selling will accelerate.

Intraday selling is available below 1.0950 with targets at 1.0920 and 1.0900, selling accelerates below 1.0890. Buying is available above 1.1010 with targets at 1.1030, 1.1050, and 1.1080 wraps with risk.

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Technical analysis of EUR/USD for August 03, 2015

Friday's US data depressed the US dollar. Weekend factor and the short covering activity helped gold bulls close above 1085.00 on a weekly basis. The metal managed to close above 1085.00 for the second consecutive week.

Barclays and Blackrock expect the interest rate hike in September, but Goldman Sachs and BNP Paribas expect it to be postponed until December. Finally, the rate hike is imminent. We guess the rate hike event is likely to influence gold prices.

Technical view:

On a monthly basis, the metal fell 7.0% in July amid hopes for the Fed's rate hike and slowdown in the China's economy. The first trading day in August started with green ticks.

The yellow metal was trading at $1,095.80 during today's Asian session. In the weekly chart, the metal managed to hold the channel support trend line at $1,085.00 on a closing basis. The metal has been reaching lower highs and lower lows breaking below the large bearish head & shoulder pattern.

The weekly support is found at $1,085.00, $1,077.00and $1,073.00. A weekly close below $1,085.00 opens gates to $1,068.00 initially, it is likely to extend towards $1,045.00, and $1,005.00 later. 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. It managed to close above $1,085.00 on a daily closing basis for the eighth consecutive day.

A daily close below $1,085.00 opens gates to $1,077.00 initially; it is likely to extend towards $1,055.00 later.

Intraday: Intraday support is found at $1,092.00 and $1,089.00. Resistance is seen at $1,099.00, $1,103.00, and $1,105.00.

The metal has been reaching lower lows in the four-hour chart. The metal made a triple top at $1,105.00 rounded and higher a low of $1,079.70.

We recommend intraday selling below $1,089.00 with a target at $1,085.00. Selling accelerates below $1,085.00 towards $1,082.00, $1,080.00, and $1,077.00. Panic is likely to be triggered below $1,077.00.

Buying is available above $1,100.00 with targets at $1,103.00 and $1,105.00. Strong buying momentum takes place above $1,105.00. Bulls will aim for another 10$ on the higher side.

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Elliott wave analysis of EUR/NZD for August 3, 2015

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Technical summary:

A break above 1.6602 indicated that the correction in wave 2 ended at 1.6374 and a new impulsive rally higher to 1.7277 is developing. In the short term, we expected the former resistance at 1.6602 to act as resistance for a break above 1.6826.

Only an unexpected break below the support at 1.6374 will call for a more complex correction in wave 2 and more downside towards 1.6035.

Trading recommendation:

We are long EUR from 1.6603 and will place out stop at 1.6370. If you are not long EUR yet, buy near 1.6555 or upon a break above 1.6826 and use the same stop at 1.6370.

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Elliott wave analysis of EUR/JPY for August 3, 2015

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Technical summary:

As long as support at 135.50 protects the downside, we will wait for a rally above resistance at 137.80 for a continuation higher towards 141.06 and 144.03. If support at 135.50 gets broken, we will shift the focus to the downside where the pair could test the support at 134.28. Below this level, it will call for more downside pressure towards 130.01.

Trading recommendation:

We are long EUR from 134.07 with stop placed at 135.40. If you are not long EUR yet, buy EUR only upon a break above 137.80.

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Technical analysis of Gold for August 03, 2015

Technical outlook and chart setups:

Gold is trading around $1,093.00 at the moment, after having rallied through $1,105.00 levels on Friday. Please note that the yellow metal is testing its 50-day moving average now, and has potential to move higher through $1,130.00/32.00 as discussed earlier. A corrective rally could take place until prices are above $1.075.00 broadly. It is therefore recommended to remain long for now with risk at $1,070.00. Immediate support is seen at $1,075.00 (interim) followed by $1,052.00, $1,030.00, and lower while resistance is seen at $1,132.00 (fibonacci) followed by $1,167.00, $1,175.00, and higher respectively.

Trading recommendations:

Remain long, stop is at $1,070.00, a target is $1,030.00/32.00.

Good luck!

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Technical analysis of Silver for August 03, 2015

Technical outlook and chart setups:

Silver rallied through $15.00 last week before correcting lower as seen here. Please note that the metal is trading in the buy zone of resistance line and is expected to extend its rally further towards at least $15.30/40 if not higher. It is therefore recommended to remain long on the metal with risk at $14.25. Immediate support is seen at the level of $14.55 followed by $14.40, $14.00, and lower while resistance is seen at $15.30 (fibonacci), followed by $15.19/16.00, $16.40/50, and higher respectively.

Trading recommendations:

Remain long for now, stop is at $14.25, a target is open.

Good luck!

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Technical analysis of EUR/JPY for August 03, 2015

Technical outlook and chart setups:

The EUR/JPY pair dropped lower towards 135.00 last week, before pulling back higher towards 136.00, as seen here. The drop towards 135.00 could be seen as a retracement of the rally between 134.00 to 137.50 respectively. It is recommended to initiate long positions now, with risk at 135.00, for an upside extension towards 140.00. Immediate support is seen at the level of 134.00 followed by 133.00 and lower while resistance is seen at the levels of 137.50/138.00 followed by 139.00, 140.00, and higher respectively.

Trading recommendations:

Initiate long positions for now, stop is at 135.00, a target 140.00.

Good luck!

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Technical analysis of GBP/CHF for August 03, 2015

Technical outlook and chart setups:

The GBP/CHF pair is trading around the level of 1.5090 at the moment, preparing to produce a meaningful correction lower. Please note that the pair has broken its immediate support and is probably back testing, producing an evening star pattern at the resistance line around 1.5100/5090. It is therefore recommended to initiate short positions at current levels with risk at 1.5200. Immediate support is seen at 1.4950 (interim) followed by 1.4770, 1.4550, and lower while resistance is seen at 1.5180 followed by 1.5200 and higher respectively.

Trading recommendations:

Initiate short positions, stop is at 1.5230, a target is open.

Good luck!

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

Daily analysis of major pairs for August 3, 2015

EUR/USD: There are large upswings and downswings in this market as bears and bulls fight for supremacy. This market has a resistance line at 1.1100 and a support line at 1.0900. Either the resistance line or the support line would be breached this week.

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USD/CHF: There is a Bullish Confirmation Pattern on the USD/CHF chart, but price actions show that bulls and bears are currently fighting. Should bulls dominate this week, the USD/CHF pair will move above the resistance level at 0.9700. In case bears win, the pair will move below the support level at 0.9550. A movement below the support level at 0.9500 could mean the end of the current bullish outlook.

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GBP/USD: The cable is strong, but themarket is highly volatil. This week, the price will either break above the distribution territory of 1.5650 or break below the accumulation territory of 1.5550. A breakout to the downside is mostly likely.

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USD/JPY: This market has beem moving sideways so far between the supply level of 124.50 and demand level of 123.00. This shows that the market is currently consolidating, and therefore a breakout to the upside or to the downside could take place soon. In order to put an end to the current consolidation, there must be a breakout above the supply level of 124.50 or a breakout below the demand level of 123.00.

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EUR/JPY: The EUR/JPY pair was characterized by high volatility last week, swinging higher and lower in the context of an uptrend. The supply zones at 137.50 and 138.00 could be tested this week, though there are also demand zones at 135.50 and 135.00. A movement below the demand zones could result in a bearish bias.

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Daily analysis of USDX for August 03, 2015

The mid-term outlook for this Index is still bullish, because the USDX is focused on a breakout of the resistance level at 97.57. That is a statement we also make, because of the rebound it did during Friday's session. However, bear in mind that the current structure, at least in an intraday overview, could be calling for more downside.

USDXDaily.png

On the H1 chart, we are can see what it is a bearish consolidation in a short-term basis, because the USDX did not close above the high from July 30 last week. That is why we expect to see more downside on this Index, at least below the 200 SMA in this time frame. The MACD indicator remains in the positive territory.

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: 97.65 / 98.09

H1 chart's support levels: 97.12 / 96.73

Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the US Dollar Index breaks with a bearish candlestick; the support level is at 97.12, take profit is at 96.73, and stop loss is at 97.50.

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Daily analysis of GBP/USD for August 03, 2015

The daily chart remains bullish, as the pair is trying to make another swing higher above the resistance zone of 1.5640, which would lead to the test of 1.5777. While GBP/USD remains above 200 SMA in this time frame, that outlook will work, but be cautious anyway with intraday pull backs.

GBPUSDDaily.png

On the H1 chart, GBP/USD was very volatile during last Friday, as the pair tried to consolidate above the resistance level of 1.5664. However, we should expect a pullback towards the 200 SMA at current levels, which is located in the support zone of 1.5587. The intraday outlook remains bullish.

GBPUSDH1.png

Daily chart's resistance levels: 1.5640 / 1.5777

Daily chart's support levels: 1.5543 / 1.5450

H1 chart's resistance levels: 1.5633 / 1.5664

H1 chart's support levels: 1.5587 / 1.5562

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 1.5633, take profit is at 1.5664, and stop loss is at 1.5602.

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USDX technical analysis for August 3, 2015

The US Dollar Index was very volatile on Friday as the US dollar lost ground, bulls stepped in and made things rise but not to new highs. This double top rejection is a very important pattern that could give us a signal. However, it the index hit new highs on the weekly chart, we could reach the level of 100 level very fast.

usdx.jpg

Red line - resistance

The US Dollar Index made a pullback towards the 38% retracement. A double bottom is formed. The next resistance is at 97.50. Support is found at 96.50.

usdxd.jpg

Last week's candle favored bulls as the price managed to stay above the kijun- tenakan-sen. So, the important long-term support is found at 96 and 96.70. A break above 98 will increase chances of bulls to reach new highs around 102-103.

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Technical analysis of EUR/USD for August 03, 2015

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When the European market opens, economic data on the Final Manufacturing PMI, German Final Manufacturing PMI, French Final Manufacturing PMI, Italian Manufacturing PMI, and Spanish Manufacturing PMI is due. The US will release economic data about Total Vehicle Sales, ISM Manufacturing Prices, Construction Spending m/m, ISM Manufacturing PMI, Final Manufacturing PMI, Personal Income m/m, ersonal Spending m/m, and Core PCE Price Index m/m. So amid the reports, EUR/USD will move low to medium volatility during this day.

TODAY TECHNICAL LEVELS:

Breakout BUY Level: 1.1021.

Strong Resistance:1.1015.

Original Resistance: 1.1004.

Inner Sell Area: 1.0993.

Target Inner Area: 1.0968.

Inner Buy Area: 1.0943.

Original Support: 1.0932.

Strong Support: 1.0921.

Breakout SELL Level: 1.0915.

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 August 03, 2015

!_USDJPY.jpg

In Asia, Japan will release data on the Final Manufacturing PMI. The US will publish economic news about Vehicle Sales, ISM Manufacturing Prices, Construction Spending m/m, ISM Manufacturing PMI, Final Manufacturing PMI, Personal Income m/m, ersonal Spending m/m, and Core PCE Price Index 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: 124.61.

Resistance. 2: 124.36.

Resistance. 1: 124.12.

Support. 1: 123.83.

Support. 2: 123.58.

Support. 3: 123.34.

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

Gold technical analysis for July 3, 2015

Gold prices made a strong bounce on Friday towards $1,103. Is this the start of a bigger bounce? Yes, it is, if we break above $1,105. For now support is held and prices are moving right under the Ichimoku cloud resistance.

goldh4.jpg

Red line - rejection

Blue lines - price projection

Gold prices remain below the Ichimoku cloud. Prices are testing cloud resistance at $1,104. Breaking above this level will push prices towards $1,130. This is a bounce and back test target area.

goldd.jpg

Red line - long-term trading support.

Gold prices remain in a bearish trend. However, we can see a bigger bounce is the short-term in case of a break above $1,105. A target fis seen at the level of $1,130. I believe that a back test of the break-down area is very probable and the best chance to re-sell gold, which has $1,000-$980 as target areas.

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