Intraday technical levels and trading recommendations for GBP/USD for August 6, 2015

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Two months ago, the market was pushed above the 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 lack of bearish momentum below 1.5500.

The previous weekly candlestick closure above 1.5500 hindered the further bearish decline and enhanced the bullish side of the market pushing the price initially towards 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 bring trading below the level of 1.5500 (low probability) again.

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Previously, the price zone of 1.5800-1.5880 acted as significant supply. 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 took 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 level of 1.5550 constitutes a significant key level to be watched for a price action. It corresponds to a short-term uptrend line.

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

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 the key level of 1.5550 persists on the daily chart.

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

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Technical analysis of GBP/CHF for August 06, 2015

Technical outlook and chart setups:

The GBP/CHF pair inched higher by around 100 pips before reversing sharply and is trading around 1.5224 at the moment. The trend remains up, but a correction cannot be ruled out now. As shown here, a minimum drop towards the 1.5000 levels, which is also the Fibonacci 0.618, and trendline support can be expected before the next bull leg resumes. It is recommended to remain flat for now and look to buy lower. Immediate support is seen at the 1.5200 levels followed by 1.5050, 1.4950, 1.4800, and lower, while resistance is seen at 1.5350/60 and higher respectively.

Trading recommendations:

Remain flat for now.

Good luck!

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Intraday technical levels and trading recommendations for EUR/USD for August 6, 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, June, and July) reflect 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 of 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 brought EUR/USD to the mark of 1.1000 again.

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 was located, had been visited 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. Projection target extends down to 1.0600.

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 1.1170.

Another sell entry with a higher risk would be offered at retesting of the newly-established supply level at 1.1000 if bullish pullback occurs soon.

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

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Technical analysis of CAD/JPY for August 6, 2015

On July 28, after rejecting the support area near 94.50, CADJPY formed a double bottom. However, the support area has been broken on August 03, sending the price slightly lower.

With the clear downtrend, the pair is in the correctional phase now, where it is rejecting R1 (94.84), that is 38.2% Fibonacci retracement level applied to the last wave down (29.07 high and 04.08 low). At the same time, CAD/JPY is trading near the downtrend trendline that is likely to be tested and potentially rejected throughout the next couple of days.

While the Demarker oscillator is in overbought zone, consider selling CAD/JPY near R1, targeting S2 (92.86) area that is 161.8% Fibonacci level applied through a low reached on July 09 and a high hit on July 13. A close above R2 (95.33) could be used as a signal to close short positions.

Support: 94.46 and 92.85

Resistance: 94.84 and 95.32

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AUD/CAD uptrend remains valid.

Since June 29, AUD/CAD has been ranging between 0.9410 and 0.9430. On Audust 04, the price broke above the rangefollowed by a heavy volume breaking though an ascending channel at the same time.

After the breakout, the price broke above the 38.2% Fibonacci resistance and failed to test the 23.6% resistance level of the Fibs applied to the channel breakout point. The current corrective move down could be a good buying opportunity as the price is testing S1 (0.9633) support level, which is the channel breakout point.

Consider buying AUD/CAD tomorrow or in the beginning of the next week, while the price is near S1 targeting the nearest resistance level - R2 (0.9754). A close below S2 in the H4 chart could be a signal to liquidate the long position.

Support: 0.9633 and 0.9580

Resistance: 0.9688, 0.9754, and 0.9862

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Gold analysis for August 06 , 2015

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Overview:

Since our last analysis, gold has been trading sideways around the price of $1,085.00. It is another low-volatility day for gold. According to the daily time frame, we can observe a weak small real body. I found a strong trading range between the prices of $1,077.00 (support) and $1,108.00. Selling gold around our support looks very risky and my advice is to watch for a potential breakout of the trading range to confirm further direction. According to the H1 time frame, we can observe weak supply, which is a sign that buyers may start buy at this stage. The trend is still neutral.

Daily Fibonacci pivot points:

Resistance levels

R1: 1,090.00

R2: 1,092.00

R3: 1,096.00

Support levels:

S1: 1,082.72

S2: 1,080.45

S3: 1,076.00

Trading recommendations: Be careful when selling gold at this stage since the price is near our strong support. Watch for breakout of our trading range to confirm further direction. Buyers are in control today.

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Technical analysis of GBP/USD for August 6, 2015

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Overview:

  • According to the previous events, the GBP/USD pair has still been trapped between 1.5535 and 1.5410. The level of 1.5535 represents the strong resistance. Also, it should be noted that the price of 1.5516 is coinciding with the ratio of 23.6% Fibonacci retracement levels. The minor support is seen at the level of 1.5462. Hence, we expect a range about 190 pips in coming hours. Therefore, the market is going to call for a strong downtrend from the levels of 1.5607 and 1.5535. Thus, sell again below the level of 1.5535 in the long term with the first target of 1.5462 in order to test the double bottom. If the trend manages to break the bottom at 1.5462, it might resume to 1.5413.

Notes:

  • Major support is seen at 1.5462 on August 6, 2015.
  • The level of 1.5601represents the weekly pivot point.
  • Major resistance has already set at the level of 1.6840.
  • It should be noted that the weekly range was large during the last four weeks.
  • According to our statistics, the range was between 299 pips and 350 pips and the average range was around 322 pips.
  • Resistance is seen at 1.5601 and minor resistance is seen at 1.5535.
  • Volatility: 328.51
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Technical analysis of NZD/USD for August 6, 2015

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Trading recommandations:

  • The NZD/USD pair called for the bearish market from the price of 0.6640 this week. So, the price of 0.6647 is representing strong resistance. Moreover, the level of 0.6647 is coinciding with the ratio of 23.6% Fibonacci retracement levels. Additionally, the support (major support for August 6, 2015) will be at the level of 0.6531, but the double bottom is going to be at 0.6498. Therefore, it will be very useful to sell at this level with targets of 0.6531 and 0.6498. The stop loss should never exceed your maximum exposure amounts. Thus, place your stop loss at the price of 0.6678.

Observations:

  • According to the previous events, the NZD/USD pair is going to move between 0.6640 and 0.6498.
  • We expect a new range about 55 pips today.
  • If the trend is of an upside character, the strength of the currency will be defined as following: NZD is in an uptrend and USD is in a downtrend.
  • 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/NZD analysis for August 06, 2015

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Overview:

Recently, EUR/NZD has been moving sideways around the level of 1.6650. Low volatility is observed on the market. In the daily time frame, we can observe a weak demand bar in a volume just above the average. The price rejected from our major resistance level (1.6805). According to the H4 time frame, we can observe price action in a volume below the average. The short-term trend has changed from bullish to neutral. Be careful when selling EUR/NZD at this stage. I found a strong trading range between the levels of 1.6805 and 1.6333.

Fibonacci Pivot Points :

Resistance levels:

R1: 1.6785

R2: 1.6830

R3: 1.6900

Support levels:

S1: 1.6640

S2: 1.6600

S3: 1.6525

Trading recommendations: Sideywas market. Wait for a breakout of the trading range to confirm further direction.

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Technical analysis of USD/JPY for August 06, 2015

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USD/JPY is expected to trade in a higher range. Currently trading at 97.764, the US Dollar Index is mixed trading. The ISM Services Sector Index rose to 60.3 in July, which is the highest level since August 2005, from 56.0 in June. The ADP National Employment Report showed that US private employers added 185,000 jobs in July (vs +215,000 expected, +229,000 in June). The US government reported that the country's trade deficit amounted to $43.84 billions in July (vs $43.00 billion deficit expected, $40.94 billion deficit in June). While having come off from its overnight high of 125.01, a level last seen in early June, USD/JPY keeps trading on the upside (now at 124.81) and around the 20-period intraday moving average (now at 124.83), which remains above the period 50. The intraday RSI is within the buying area between 50 and 70. The first upside target is set at the horizontal level of 125.25 and the second is seen at 125.60.

Technical comment:

The daily chart is positive-biased as stochastics is bullish, the MACD histogram bars are turned positive. Five-day moving average is rising above 15-day moving average.

Trading recommendations:

The pair is trading above its pivot point. It is likely to trade in a 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 125.25 and the second target at 125.60. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 124.30. A break of this target would push the pair further downwards, and one may expect the second target at 124.10. The pivot point is at 124.45.

Resistance levels: 125.25 125.60 126

Support levels: 124.30 124.10 123.70

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Technical analysis of USD/CHF for August 06, 2015

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USD/CHF is expected to trade in a higher range. The pair remains bullish above the key support at 0.9745, and is likely to post a new rebound in coming trading hours. The current consolidation should be very limited, as the 20- and 50-period intraday MAs are still on the upside, and the intraday RSI lacks downward momentum. In this case, as long as 0.9745 holds the downside, look for 0.9895 and 0.9940 in extension.

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 rising.

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 0.9895 and the second target at 0.9940. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.9710. A break of this target would push the pair further downwards, and one may expect the second target at 0.9665. The pivot point is at 0.9745.

Resistance levels: 0.9895 0.9940 0.9985

Support levels: 0.9710 0.9665 0.9615

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Technical analysis of NZD/USD for August 06, 2015

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NZD/USD is expected to trade in a lower range below 0.6550. The pair is clearly in a negative trend on the intraday basis, as the process of hitting lower highs and lows remains intact. The key moving averages are heading downward without any signals of reversal. Besides, the intraday RSI remains below the neutrality level of 50. Also, a horizontal resistance at 0.6550 holds its selling pressure. As long as 0.6550 acts as resistance, further decline seems more likely to test 0.6490 (the previous swing low). In case of a breakout, look for 0.6470.

Technical comment: The daily chart is negative-biased as the MACD indicator is bearish, slow stochastic measure stays suppressed at oversold levels, five-day moving average is below 15-day moving average and is declining.

Trading recommendations:

The pair is trading below its pivot point. It is likely to trade in a lower range as far as it remains below its pivot point. Short position is recommended with the first target at 0.6495. A break of this target will move the pair further downwards to 0.6455. The pivot point stands at 0.6575. In case the price moves in the opposite direction and bounces back from the support level, then it will move above its pivot point. It is likely to move further to the upside. In that scenario, a long position is recommended with the first target at 0.6615 and the second target at 0.6655.

Resistance levels: 0.6615 0.6655 0.6695

Support levels: 0.6495 0.6455 0.64

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Technical analysis of GBP/JPY for August 06, 2015

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GBP/JPY is expected to trade in a higher range. The pair has crossed above its 20-period and 50-period intraday MAs and remains on the upside. Both MAs are acting as support levels. The intraday RSI stays above 50 and is positively oriented. Further upside is therefore expected with the next horizontal resistance and overlap set at 195.30 firstly. A break above this level would call for further advance towards 195.70.

Technical comment:

Daily chart is positive-biased as The MACD and stochastics are bullish, although latter is in the overbought zone; five-day moving average is above 15-day MA and is advancing.

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 195.30 and the second target at 195.70. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 194.10. A break of this target would push the pair further downwards, and one may expect the second target at 193.60. The pivot point is at 194.50.

Resistance levels: 195.30 195.70 196.30

Support levels: 194.10 193.60 193

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Technical analysis of AUD/CAD for August 06, 2015

At Asian session, Australian job data hits the wires boosting wild moves of 100pips in the matter of 10 minutes.

AUD: Employment increased 38,500 to 11,810,700. Full-time employment increased by 12,400 to 8,170,400, and part-time employment increased by 26,100 to 3,640,300.

Unemployment increased by 40,100 to 800,700. The unemployment rate rose by 0.3% to 6.3%.

A fall in commodity prices badly hit the Australian economy in the recent years. The Australian economy is known for beeing rich in natural resources like coal, iron ore, and gold. After the commodities super cycle,iron ore and coal prices has been sharply falling. Recently, gold prices added some more pressure to the AUD.

CAD: Canada's exports increased 6.3% in June while imports declined 0.6%. Export volumes rose 4.8% and prices increased 1.5%. Imports declined 0.9% while prices were 0.3% up. As a result, Canada's trade balance deficit narrowed from $3.4 billion in May to $476 million in June.

This was the first increase in exports after five consecutive months of a decline.

Upcoming events : Today, traders eye the RBA monetary policy statement.

Canada's building permits, employment change, unemployment rate and PMI is due on Friday. We expect wild moves today and tomorrow as well.

Technical view:

The cross extended its fall but managed to hold 200Dsma found at 0.9635.

At yesterday's session, the cross faced resistance at 0.9745 making a double top, parallel resistance is seen at 0.9744. The nearest resistance is seen at 0.9790 100Wema, 0.9810 100Wsma, and 0.9840.

In the daily chart, the cross managed to close above all moving averages. It hit a higher low and higher high in the daily chart. In the weekly chart, the cross managed to close above 20&50Wsma.

The nearest resistance is seen at 0.9790 100Wema, 0.9810 100Wsma, and 0.9840.

Today, the cross is trading at 0.9648 compared to Wednesday's closing price 0.9690.

Intraday- Support is found at 0.9630, 0.9590, and 0.9540. Resistance is seen at 0.9775, 0.9800, and 0.9820.

Trade: We recommend fresh buying above 0.9730 with targets at 0.9745, 0.9775, and 0.9800. It is likely to extand to 0.9820 in the extreme case or even further to 0.9840.

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Technical analysis of Gold for August 06, 2015

The metal has closed below 1085.00 that we have been waiting for 12 days. Traders are waiting for Friday's jobs data.

Ahead of US jobs data, the US dollar back on limelight. Traders do expect wild moves during a day and tomorrow.

Atlanta Fed President Dennis P. Lockhart said that the FOMC was nearly ready to raise the interest rates.

The metal has been moving sideways for 13 sessions, this Friday might be the game-change day in the context of non-farm employment changes.

Technical view:

The yellow metal was trading at $1,084.70 during today's Asian session, compared to Monday's closing price of $1,084.60. In the weekly chart, the metal managed to hold the channel support trendline at $1,085.00 on a closing basis, but fell below on a daily 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, $1,077.00, and $1,073.00. A weekly close below $1,085.00 opens gates to $1,068.00 initially and 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 eleven consecutive days.

The metal has been moving towards higher low and lower highs in the H1 chart for 4 days. The support zone is found at $1,080.70 and $1,079.70.

Intraday: Intraday support is found at $1,082.00, $1,080.00, and $1,077.00. Resistance is seen at $1,087.00, $1,090.00, and $1,093.00. We can observe bearish h&s pattern in the hourly chart. The neck line is found between $1,079.70 and $1,080.70.

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 low formed at $1,079.70.

Panic likely to be triggered below $1,077.00. We guess the metal is likely to fall towards $1,072.00 today in case $1,077.00 is taken out. Use a rise to sell.

Buying is available above $1,095.00 with targets at $1,100.00, $1,103.00, and $1,105.00. Real strength is expected only above $1,105.00 towards $1,110.00 and even $1,112.00.

Selling is available below $1,079.00 with targets at $1,077.00 and $1,075.00.

Intraweek trading pattern remains framed between $1,075.00 and $1,095.00.

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Technical analysis of GBP/USD for August 06, 2015

The cable managed to hold the support zone closing with marginal gains.

IMPACT OF GBP: The UK services sector remains on strong growth path. The employment number is rising at the weakest rate since March 2014. Readings for new business is growing, but the long-term outlook was cut to a five-month low.

The Business Activity Index fell to 57.4 in July from 58.5 in June.

Upcoming event: Today is a big day for the cable.

UK- Manufacturing production and BoE interest rate is due.

US- Unemployment claims are due.

We expect the BoE the hold its interest rate at 0.50%. The manufacturing PMI data has beeb descauriging traders during the last 2 months. This time, we expect positive readings.

Technical view: The cable managed to close above all moving averages in the daily chart and above 20&50Wsma. The support zone is found at 1.5570 50Dsma, 1.5535 50Wsma, 1.5480 100Dsma, and 1.5380 20Wsma. At yesterday's session, the cable initially fell below the 50Wsma, but managed to rebound by the end of the day.

The supply zone remains between 1.5650, 1.5675, and 1.5700. A daily close above 1.5700 is likely to enable bulls to aim for 1.5770 initially and for 1.5860 and even 1.5900 later. Earlier, the cable made a strong ceiling at 1.5700.

Bullish developments- . The cable has been reaching higher lows within the weekly pattern support found at 1.5450. The weekly trading pattern is framed between 1.5450 and 1.5700. The cable finally closes above 50Wsma.

Intraday - Intraday resistance is seen at 1.5635, 1.5650, and 1.5675. Support is found at 1.5600, 1.5590, and 1.5570.

Sell below 1.5560 with a target at 1.5530initially, and 1.5490 and 1.5470 later. Selling will accelerate only below 1.5520, and the trend is likely to change below 1.5440.

Whenever the cable had touched the levels of 1.5675 and 1.5700, it hit lower lows (1.5530 and 1.5467). We can expect 1.5450 or 1.5410. In case of a daily close above 1.5700, bulls will aim for 1.5780 in a day or two.

Trade: Safe selling is expected below 1.5520.

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Technical analysis of EUR/USD for August 06, 2015

The pair stopped its two-day fall closing with mild gains. The Spanish services PMI helped the pair to rebound.

IMPACT OF EURO: The rate of job creation hit an eight-year high. The Spanish services sector started the third quarter in the positive territory as rates of expansion in new orders and business activity accelerated in July.

The headline seasonally adjusted Business Activity Index rose to 59.7 in July from 56.1, posting best readings in three months and pointing to a further strong increase in the services sector activity.

Upcoming event: Traders eye German factory orders. Germany has been providing inconsistent data, dismissal data in May. This was the first decline in 3 months. This time, we expect positive readings.

Technical view: The pair lost all moving averages in the daily, weekly, and monthly charts. The nearest resistance is seen at 1.0960 20Dsma , 1.1030 100Dsma, and 1.1050 20Wsma. Until the pair closes below 20Wsma, sell on rises. The pair has been closing below 20Wsma at 1.1050 for three consecutive weeks. Monthly support is found at 1.0730.

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.

Intraday- resistance is seen at 1.0930, 1.0950, and 1.0990. Support is found at 1.0840, 1.0810, and 1.0790. Buying is available only above 1.1000, safe buying is available only above 1.1060 towards 1.1100. Selling is available below 1.0880 with an initial target at 1.0850. Below the level of 1.0840, it is likely to extend lows towards 1.0810 and even 1.0790.

Bulls will be back on track only above 1.1130. Until that, use every spike to sell.

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Technical analysis of EUR/JPY for August 06, 2015

Ahead of today's BOJ monetary policy statement and tomorrow's BOJ press conference, the JPY is trading higher during today's Asian session.

At yesterday's session, the cross managed to regain the lost daily moving averages 20 Dsma, 100Dema and 200Dema.

The cross closed above most of the daily moving averages, except for 50Dsma and 20Dsma that seems to be at 137.10. The 20Wsma is found at 134.50. The cross has been making head and shoulder formation, neck line is at 133.09.

Intraday support is found at 135.80 and 135.60. Resistance seems to be at 136.45, 136.80, and 137.10.

Weekly key support level is at 134.50

Intraday selling likely below 135.70 aims at 135.50, 135.30, and 135.10. Selling accelerates below 135.50.

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Technical analysis of USD/CAD for August 06, 2015

The pair paused the 5-day rally following the release of the Canadian optimistic exports data. The pair managed to make a double top at 1.3195 on a daily closing basis.

IMPACT ON USD:

The US goods and services deficit was $43.8 billion in June, up $2.9 billion from $40.9 billion in May (revised print). The NMI registered 60.3 percent in July, which is 4.3 percentage points higher than the June reading of 56 percent. It represents continued growth in the non-manufacturing sector at a faster rate.

IMPACT ON CAD: Canada's exports increased 6.3% in June while imports declined 0.6%. Exports volume rose 4.8%; and its price, 1.5%. For imports, its volume declined 0.9% while its price was up 0.3%. As a result, Canada's merchandise trade deficit narrowed to $476 million in June from $3.4 billion in May.

Exports grew on higher volumes. This was the first increase following five consecutive monthly declines.

Upcoming events: Traders keep an eye on the US unemployment claims and tomorrow's US NFP data and unemployment rate. Besides, reports on Canada's building permits, employment change, unemployment rate, and PMI are due to be released tomorrow. We expect wild moves today and tomorrow as well.

Technical view: Monthly resistance seems to be at 1.3380. In all time frames, oscillators seem overbought. For six straight weeks the pair has been moving higher.

Intraday resistance seems to be at 1.3180, 1.3200, and 1.3220. Support is found at 1.3150, 1.3110, and 1.3080. The pair still remains with higher lows. Below the 1.3110 level, the support is at 1.3080 and 1.3060.

Review: At yesterday's session, we open sell trade. Intraday selling available below 1.3150 aims at 1.3110. The pair exactly made low at 1.3110.

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USDX technical analysis for August 6, 2015

The US Dollar Index got rejected at the long-term resistance level of 98.20 and is back below 98 now. The short-term bullish trend is still intact but also fragile. Currently, we can say that the index is making a back-test of the breakout area. As long as the price is above 96, bulls will be in control.

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Green lines - triangle pattern

The US Dollar Index broke the triangle pattern upwards. The index is making a back-test of the breakout area. The rrice is above the Ichimoku cloud. Support is at 97.15 and the next onr is at 96.50.

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Red line - resistance

Green line - support

The index got rejected yesterday at the red resistance line. Kijun-sen weekly support is at 96.80. The trend remains bullish, but bulls must be very cautious at current levels and especially tomorrow as the NFP volatility is expected to rise. So, I would not expect a bigger breakout above 98.20 until tomorrow.

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Gold technical analysis for August 6, 2015

Gold price remains inside a triangle pattern. TThe tend is neutral. Best strategy is to wait for a breakout of the triangle before choosing a side. Other strategy is to buy near support and sell near resistance.

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Blue line - trend line resistance

Green lines - triangle pattern

Gold price remains below the Ichimoku cloud. It is inside a trading range between resistance at $1,105 and support at $1,077. The Ichimoku cloud is getting very thin. This is usually a sign that the cloud is going to be broken. This situation favors bulls.

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Blue line - trend line support broken

Gold price remains in a bearish trend in the weekly chart, but we could see a bounce towards the area of $1,130-40 and still remain in bearish long-term mode. The tenkan-sen (red indicator) is flat and this could be an early bullish sign before a bounce. Bears need to be very cautious if the price breaks above $1,105.

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Global macro overview for 06/08/2015

Global macro overview for 06/08/2015:

Discussions between Greece and the International Monetary Fund, European Central Bank, European Commission, and the European Stability Mechanism started in the last week of July. Currently, Greek Prime Minister Alexis Tsipras is convinced that Greece will close the 86 billion euros deal with the creditors soon. The main subjects were privatisation, pensions, and the situation over the Greek banks. The poor Greek banks situation (undercapitalized) and a possible recapitalization have caused collapse on the Greek stock market. The FTATBNK index fell 63% in last three trading sessions starting from Monday. Nevertheless, an agreement must be made by August 20, when a 3.5 billion euro debt installment to the European Central Bank is due.

The EUR/USD pair is not much reacting to the news from Greece so the most of the market participants are focused on Friday's NFP report far as. After breaking out below the golden trendline, the market is currently testing the trendline from the downside. Any failure here would increase the possibility o bearish sentiment and push the EUR/USD pair towards the first important support at the level of 1.0808.

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Global macro overview for 06/08/2015

Global macro overview for 06/08/2015:

The main event of the day is a big amount of data coming fromthe UK early in the morning. The general market consensus points out the possible BoE rate hike this year. Today's readings for industrial and manufacturing production are expected to be slightly worse than the previous figures, so any surprise here will add a fuel to the fire and result in a sharp British pound appreciation. Moreover, the market will be mostly focused on the MPC rate statementwhich is gue later to find out more clues about prospects of the interest rate hike.

The news release is scheduled as follows ( all times GMT):

07:00 Great Britain Halifax House Price Index Jul 1.7% m/m; 9.6% 3m/y 0.5% m/m; 8.3% 3m/y

08:30 Great Britain Industrial Production Jun 0.4% m/m; 2.1% y/y 0.1% m/m; 2.2% y/y

08:30 Great Britain Manufacturing Production Jun -0.6% m/m; 1.0% y/y 0.2% m/m; 0.4% y/y

11:00 Great Britain BoE Interest Rate Decision Aug 0.50% 0.50%

11:00 Great Britain Asset Purchase Facility Aug 375bln 375bln

11:00 Great Britain MPC Rate Statement Aug

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Technical analysis of EUR/JPY for August 6, 2015

General overview for 06/08/2015 07:40 CET

The bottom of the wave (b) blue looks to be in place at the level of 134.98. Only a clear breakout below this level would invalidate this view. Currently, the market is trying to develop another wave up, wave (c) blue, to complete the corrective cycle. Please notice, that as long as market trades inside of aneutral range (between the level of 137.33 and 134.22) and below the level of 137.33, there is still a possibility of another wave XX brown to the upside and then reversal downside. Moreover, only an immediate breakout above the intraday resistance at the level of 136.42 opens the road towards the level of 137.33.

Support/Resistance:

137.33 - Swing High

136.96 - WR1

136.42 - Intraday Resistance

136.24 - Weekly Pivot

135.89 - Intraday Support (weak)

135.15 - WS1

134.98 - Intraday Support (strong)

Trading recommendations:

Daytraders should consider opening buy orders only if the level of 136.42 is clearly violated, with SL below the level of 135.89 and TP at the level of 136.96 and 137.33.

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Technical analysis of USD/CAD for August 6, 2015

General overview for 06/08/2015 07:25 CET

An alternative count is currently seen. The market does not want to breakout higher above the level of 1.3213. This would mean the top for the wave B blue might be in place if the invalidation line at the level of 1.3095 is violated before any new high is reached. As the result, the alternative labeling will become the main count of ABC blue irregular flat correction with wave C blue to the downside, which is yet to be developed.

Support/Resistance:

1.3213 - Swing High|Intraday Resistance|

1.3204 - WR1

1.3095 - Intraday Support|Blue Impulsive Count Invalidation Level|

1.3011 - Weekly Pivot

1.2968 - WS1

Trading recommendations:

Daytraders should consider that the level of 1.3095 can be violated with tight SL (15-20 pips) and TP at the level of 1.3031.

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

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Technical analysis of EUR/USD for August 06, 2015

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When the European market opens, economic data on the French 10-y Bond Auction, Spanish 10-y Bond Auction, Retail PMI, and German Factory Orders m/m is due.The US will publish data about the Natural Gas Storage, Mortgage Delinquencies, Unemployment Claims, and Challenger Job Cuts y/y. So amid the reports, EUR/USD will move low to medium volatility during this day.

TODAY TECHNICAL LEVELS:

Breakout BUY Level: 1.0954.

Strong Resistance:1.0948.

Original Resistance: 1.0937.

Inner Sell Area: 1.0926.

Target Inner Area: 1.0901.

Inner Buy Area: 1.0876.

Original Support: 1.0865.

Strong Support: 1.0854.

Breakout SELL Level: 1.0848.

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 06, 2015

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In Asia, Japan will release the Leading Indicators. The US will publish economic data on the Natural Gas Storage, Mortgage Delinquencies, Unemployment Claims, and Challenger Job Cuts y/y. So, there is a strong probability that USD/JPY will move with low volatility during the Asian session, but with low to medium volatility during the US session.

TODAY TECHNICAL LEVELS:

Resistance. 3: 125.46.

Resistance. 2: 125.21.

Resistance. 1: 124.96.

Support. 1: 124.67.

Support. 2: 124.42.

Support. 3: 124.18.

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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Elliott wave analysis of EUR/NZD for August 6, 2015

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Technical summary:

We saw a new test of resistance at 1.6826, but no breakthrough is observed yet. Only a break above the resistance at 1.6826 will release the upside pressure and call for a continuation towards 141.06 and 144.03.

As long as the resistance at 1.6826 is able to protect the upside, we shall remain locked inside a range between 1.6554 and 1.6826, with risk of a larger range between 1.6374 and 1.6826.

Trading recommendation:

We are long EUR from 1.6603 with stop at 1.6550. If you are not long yet, wait for a breakout above 1.6826 before buying EUR.

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Elliott wave analysis of EUR/JPY for August 6, 2015

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Technical summary:

What looked like a sure bet towards the downside yesterday, was quickly reversed and the short-term picture has turned a bit messy. The b-wave triangle could turn out to be larger than we first expected, but ultimately the outcome should be the same, which is a downside thrust out of the triangle towards 130.00.

Only a break above resistance at 137.35 will change the picture in favor of the bullish scenario.

Trading recommendation:

Our stop at 136.20 was hit. We will sell again near 137.00 with a stop placed at 137.45

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Daily analysis of USDX for August 06, 2015

On the daily chart, the USDX is facing the strong resistance zone around the level of 98.29. This territory is the keyone for the current bullish trend development, and that is why we should be cautious when trading this Index based on the data provided by this time frame, as it could make a pullback below thelevel of 97.57.

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The USDX is forming a higher high pattern above the support zone of 96.75, which is now looking to break the resistance zone of 98.09, in order to reach a high around the level of 98.40. The 200 SMA on the H1 chart is still pointing to the upside, so bulls are getting stronger, at least on a short-term basis. However, the MACD indicator is in the negative territory.

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Daily chart's resistance levels: 98.29 / 99.16

Daily chart's support levels: 97.57 / 96.57

H1 chart's resistance levels: 98.09 / 98.40

H1 chart's support levels: 97.65 / 97.12

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 98.09, take profit is at 98.40, and stop loss is at 97.77.

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Daily analysis of GBP/USD for August 06, 2015

GBP/USD is still trading higher above the 200 SMA on the daily chart, finding strong dynamic support over there. That is why the upside is still a feasible option for this pair, at least in the mid-term. Also, bear in mind the overall structure remains bullish, but the resistance zone of 1.5640 is still rather strong. The MACD indicator is turning towards the neutral territory.

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On the H1 chart, the pair is forming a bullish pattern above the 200 SMA and it is now looking to break the resistance level of 1.5633 again in order to test the zone around 1.5671. Anyway, a breakout above it will expose bulls strengthening in the short and mid-term, which could push the price higher to the key zone around 1.5750.

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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 / 1.5671

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 1.5671, and stop loss is at 1.5594.

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Daily analysis of major pairs for August 6, 2015

EUR/USD: This is a bearish market, but further southward movement has been rejected at the support line of 1.0850. The support line is a great obstacle to further southward movement, but it needs to be broken to the downside so that the bearish trend could continue.

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USD/CHF: The USD/CHF has moved upwards by 150 pips this week. The price now hovers around the resistance level at 0.9800 - which must be broken to the upside for the bullish trend to continue. Should the price fail to break the resistance level to the upside, it may be forced to test the support levels at 0.9750 and 0.9700.

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GBP/USD: TThe GBP/USD pair is currently in a kind of equilibrium phase. For the past several trading days, the market has been volatile, but there is no clear direction. A breakout is likely to take place soon because of some fundamental figures which are due today. This data would have a huge impact on the cable. The price would go either above the distribution territory at 1.5700 or below the accumulation territory at 1.5500. A break above the aforementioned distribution territory will result in a Bullish Confirmation Pattern, while a break below the accumulation territory at 1.5500 would result in a Bearish Confirmation Pattern.

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USD/JPY: There has been a bullish breakout on this currency trading instrument. The supply level at 125.00 has been tested and it could be tested again. The supply level could also be breached to the upside while the supply level at 125.50 could be reached today.

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EUR/JPY: We advise to stay away from this market. The EMA 11 is below the EMA 56 but the RSI period 14 is above the level of 50. These are mixed signals, butwe expact a strong directional movement today or tomorrow.

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