Intraday technical levels and trading recommendations for GBP/USD for August 24, 2015

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Few 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 towards the level of 1.5550 took place. Temporary bearish breakout below the GBP/USD key level at 1.5500 took place on July 5.

Last week, strong bearish pressure was applied to the level of 1.5550 again. It was broken down temporarily until the last week when the weekly bullish engulfing candlestick was expressed.

Contradictory signals are coming from consecutive weekly candlesticks. This indicates market indecision above the price levels of 1.5500.

However, the previous weekly candlestick closure above 1.5500 hinders further bearish decline and enhanced the bullish side of the market initially towards 1.5670 (previous weekly high) and 1.5780 (61.8% Fibonacci level).

On the other hand, the current weekly candlestick should be monitored by the end of the current day to determine if the weekly closure persists above 1.5780 (Supply Level) or below.

The nearest demand level around 1.5200 will become exposed only if the GBP/USD bears manage to bring the market price below the level of 1.5500 again (low probability).

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Previously, the zone of 1.5800-1.5880 acted as a 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.

The level of 1.5500 constitutes a significant KEY level to watch for. It corresponds to the short-term uptrend line depicted on the chart.

However, evident bullish pressure was applied at 1.5450 on August 7. A bullish engulfing daily candlestick was expressed by the end of the day.

The nearest Supply/Resistance levels to meet the GBP/USD pair are located around the price levels of 1.5770 (prominent 61.8% Fibonacci level) where bearish rejection should be anticipated.

The price reaction should be watched at retesting the price levels around 1.5770 (61.8% Fibonacci level). A valid SELL entry can be offered there.

On the other hand, the bearish scenario towards 1.5470 and 1.5370 should only be anticipated if the GBP/USD bears manage to push again below 1.5500 successfully (low probability).

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GBP/USD intraday technical levels and trading recommendations for August 24, 2015

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Overview:

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

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 Head and Shoulders pattern was initiated.

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

However, a bullish pullback towards 1.5600 was expected to take place shortly after, as suggested in the previous articles.

Our SELL entry suggested around 1.5600 got triggered two weeks ago. An early exit was considered when Friday's daily candlestick closed above 1.5690 (the upper limit of the consolidation range).

As anticipated, daily fixation above 1.5690 (the upper limit of the consolidation range) hinders this bearish scenario for some time. This exposes the breakout projection target at 1.5800 before further bearish decline can be achieved.

A valid SELL entry with a low risk/reward ratio can be offered around the price level of 1.5780-1.5800 if enough bearish rejection is expressed.

Note that fixation below the price zone of 1.5700 (the upper limit of the consolidation range) and 1.5550-1.5500 (mid-line of the range) is mandatory to pursue towards lower bearish targets at 1.5450 and 1.5350.

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USD/CAD intraday technical levels and trading recommendations for August 24, 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 reached. Bullish pressure was applied against the resistance levels of 1.2450 and 1.2500 (previous tops).

On the other hand, the previous weekly candlestick was quite bullish. That is why, an extensive bullish movement is seen on the chart.

A bullish breakout above the zone of 1.2770-1.2800 has been executed.

The long-term bullish projection target was projected towards the level of 1.3270 (100% Fibonacci Expansion) where bearish pressure should be applied. This price level is being approached today by the bulls.

A bearish corrective movement towards the levels of 1.2750 (Breakout Level) should be expected as long as USD/CAD bears keep defending the 100% Fibonacci level around 1.3270.

On the other hand, bearish persistence below 1.3050 is needed to expose the next support level around 1.2910 and then 1.2800 where long-term BUY entries can be considered.

Trading recommendations:

Conservative traders should wait for a bearish pullback towards the recent breakout zone (1.2800-1.2750) for a valid buy entry as the breakout level constitutes a strong support.

Stop Loss should be located below the level of 1.2700. T/P levels should be located at 1.2850 and 1.2900.

On the other hand, risky traders can SELL the USD/CAD pair around the current price levels (anywhere around 1.3270) with S/L as daily closure above entry level. T/P levels to be located at 1.3200 and 1.3050.

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Daily analysis of SILVER for August 24, 2015

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Overview

According to the shown H4 chart, Silver price declined clearly this morning to test the key support 14.80 accompanied by stochastic move at the oversold areas now to keep the chances valid to resume the expected bullish trend for the upcoming period, which depends on holding above the mentioned level, as breaking it will push the price to test the most important support at 14.40, and the bearish wave might extend to reach the 12.80 areas on the near-term basis. Therefore, the price needs a bullish rebound and breaching the 15.60 level to revive the positive overview followed by achieving our targets that start at 16.05 and extend to 16.85.

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Daily analysis of GBP/JPY for August 24, 2015

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Overview

According to the attached H4 chart, a fall in GBP/JPY extends to as low as 188.42 so far today and intraday bias remains on the downside. The fall from 195.26 is viewed as the third leg of the consolidation pattern from 195.86. Such a decline would target the 184.95 support and lower. We will look for a strong support around the 61.8% retracement of 174.86 to 195.86 at 182.88 to contain downside and bring a rebound. On the other hand, the uptrend from 116.83 is still in progress and would target the 61.8% retracement of 251.09 to 116.83 at 199.80, which is close to the 200 psychological level. The medium-term momentum is not too convincing with bearish divergence condition in the weekly MACD. We'd be cautious in the medium term topping around 200 and bring a deep correction. Meanwhile, a break of 174.86 will suggest that the trend has reversed earlier than we expect.

Daily Pivots: (S1) 190.62; (P) 192.19; (R1) 193.05;

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Global macro overview for 24/08/2015

Global macro overview for 24/08/2015:

The typical market reaction for the growth concern is the risk aversion behavior when the Japanese yen and the Swiss frank are broadly bought across the markets. The recent drop in the price of USD/JPY seems to have followed this pattern as the last week Japan's economic data was quite in favor of the yen. Moreover, the continuous sell-off of the Chinese stock market (-8% today) is adding fuel to the fire as investors are exiting the risky assets. The USD/JPY rate dropped overnight towards the support at the level of 120.41 and violated it. The next support comes at the level of 118.32 and this one is quite important.

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Technical analysis of GBP/USD for August 24-28, 2015

The weekly technical analysis of GBP/USD pair:

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Trading recommendations:

  • The GBP/USD pair is in the short term.
  • The price of GBP/USD is going to keep the bearish sentiment from the level of 1.5753. In addition, the level of 1.5753 represents the weekly resistance 1. Besides, GBP/USD was calling for a sideways trend last week for that it had formed a range between the levels of 1.5722 and 1.5562. Accordingly, it will be a good sign to sell below it at 1.5753 with the first target of 1.5702 to test a double bottom at this area. Then, if the price breaks the double bottom, it will call for a downtrend market in order to continue its bearish movement towards 1.5685 (the weekly pivot point). Equally important, the resistance would be set at the 1.5753 level. Moreover, the range today will be about 1.5740 to 1.5680. Therefore, we expect a medium range up to 60 pips today. However, the stop loss should be placed above the the weekly resistance at the price of 1.5780.
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Global macro overview for 24/08/2015

Global macro overview for 24/08/2015:

Global market sentiment has turned to bearish late August. Although, risk dynamic might be very erratic as we are in the middle of the holiday season, it looks like the current bear trend might last for a while. The recent market reversal is not connected with any political tensions (like the Greek bailout story in June-July), but it looks like the concerns about the global growth after a QE-driven multi-year bull run on global indices might just have run of fuel. Please remember the current hot market topic is whether the Fed will raise short-term interest rate in September or December 2015. This is why, the market is behaving in a typical risk-aversion pattern when indices are pluming and gold is trying to rise.

The technical picture of SPY (S&P500 ETF) is currently rather clear: after last Friday's drop to the technical support at the level of 197.52 the market just stopped and it is currently trading at the neutral sentiment zone boundary. Any daily close below 197.00 will be considered bearish and next support comes at the level of 181.32.

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Technical analysis of EUR/USD for August 24-28, 2015

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Overview:

  • The EUR/USD pair broke major resistance at the price of 1.1263 last week for that the level of 1.1263 has become a strong support for August 24-28, 2015. Besides, the weekly pivot point is calculated at 1.1263 and the pair is now moving from it since last week. Therefore, it will probably start an upside movement in this area and recover again. So, the market will indicate a bearish opportunity at the levels of 1.12631 and 1.1388. The area of 1.12631 and 1.1388 is acting as a strong support this week, hence it will be a good sign to buy at this spot with the first target of 1.1509 and continue towards 1.1540 in order to form a new double bottom. On the other hand, if a break of 1.1263 happens, it will be a good place to put stop loss.

Trading recommendations:

  • According to the previous events, the price of the EUR/USD pair has been still moving between 1.1263 and 1.1635 this week.
  • Buy at the level of 1.1390, look for further downside with the 1.1500 and 1.1630 targets.
  • The stop loss should be set at the price of 1.1228.

The weekly technical analysis of EUR/USD pair:

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EUR/NZD analysis for August 24, 2015

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Overview:

Recently, EUR/NZD has been moving upwards. The price tested the level of 1.7058 in a low volume. In the daily time frame, we can observe strong demand. EUR/NZD has changed trend from bearish to bullish. We also broke a strong resistance level at the price of 1.7090. According to the M5 and M15 time frames, we have a successful tests of supply and we may expect further upward continuation. Be careful when selling and watch for potential buying opportunities on the dips. The most recent resistance level is around the price of 1.7642.

Fibonacci Pivot Points :

Resistance levels:

R1: 1.7056

R2: 1.7100

R3: 1.7170

Support levels:

S1: 1.6910

S2: 1.6855

S3: 1.6795

Trading recommendations: Watch for buying opportunities on the dips. EUR/NZD is in a strong uptrend.

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Technical analysis of EUR/JPY for August 24, 2015

General overview for 24/08/2015 11:30 CET

The market still cannot break out above the 138.84-138.94 resistance zone and the corrective cycle is getting more and more complex and time-consuming. Only a clear breakout below the intraday support at the level of 138.99 will confirm the top for the wave X brown is in place.

Support/Resistance:

139.65 - WR1

138.94 - Intraday Resistance

138.34 - Weekly Pivot

138.10 - Intraday Support

137.78 - WS1

137.05 - Intraday Support

Trading recommendations:

Daytraders should consider selling any breakout below the level of 138.10 with SL above the level of 138.94 and TP at the level of 137.04.

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Technical analysis of USD/CAD for August 24, 2015

General overview for 24/08/2015 11:20 CET

The corrective cycle in the wave X brown has violated the wave 3 top at the level of 1.3211 and is currently trading above it. Nevertheless, the irregular corrective cycle is still possible from this levels, but the market must impulsively break below the intraday support at the level of 1.3211 and head towards the weekly pivot at the level of 1.3144. A lack of such a price action will make the alternative purple count more probable.

Support/Resistance:

1.3314 - WR2

1.3264 - WR1

1.3256 - Intraday Resistance

1.3211 - Intraday Support

1.3144 - Weekly Pivot

Trading recommendations:

Swingtraders should consider closing long-term BUY orders or move the trailing stop loss orders up to the level of 1.3211.

Daytraders should consider selling any low/climactic volume breakout below the level of 1.3211 with SL above the level of 1.3257 and TP at the level of 1.3144.

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Gold analysis for August 24 , 2015

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Overview:

Since our last analysis, gold has been trading sideways around the price of $1,155.00. As we expected, the price tested the level of $1,168.05. According to the daily time frame, we can observe a potential hidden selling bar, which is a sign that buying at this stage looks risky. I placed diagonal trendline and the price stoped extacly on it. Our Fibonacci retracement 50% is at the price of $1,155.00. Anyway, Gold is still in a bullish trend and we have successful testing of a supply bar at the price of $1,149.00. According to the 30-minute time frame, we have a selling climax bar from Friday and today successful tests on that area. Selling still looks risky, we are awaiting a potential breakout of the level $1,168.00 to confirm further upward continuation.

Daily Fibonacci pivot points:

Resistance levels

R1: 1,164.00

R2: 1,165.55

R3: 1,167.00

Support levels:

S1: 1,161.00

S2: 1,160.00

S3: 1,157.75

Trading recommendations: Watch only for buying opportuntiies on the dips (after corrections). Selling still looks very risky since there is a strong upward trend in the background.

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USDX technical analysis for August 24, 2015

The Dollar index has reached our target of 95 and has also moved a bit lower. The Dollar index is testing the lower triangle boundary of the weekly chart and this is important support. However, we should not rule out the chance of a breakdown and a push even lower towards 92.

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Red line - resistance

Green line - support

The Dollar index is testing the lower triangle boundary. A weekly close below it can push the index towards the 92 level where the 38% Fibonacci retracement support is found.

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Blue line - support broken

Red line - resistance

The Dollar index remains in a bearish trend. My last sell signal was once 96 was broken and we have reached and surpassed the 1st short-term target of 95. The trend is bearish and Dollar bulls are in danger. A reversal should occur today or at the latest tomorrow for dollar bulls to remain alive. Otherwise, they should prepare for a deeper correction to 92 or even lower.

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Gold technical analysis for August 24, 2015

Gold price remains in a short-term uptrend after closing above the weekly resistance levels. This bounce could bring price even towards $1,200 if price holds above $1,130. In the short term, I see a small triangle pattern being formed and I expect an upward break out to new short-term highs as the most probable outcome.

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Dark blue lines - triangle pattern

Cyan lines - bullish channel

Gold price is trading inside an upward sloping channel and above the Ichimoku cloud. The trend is bullish for the short-term as long as price is holding above $1,130. In the short term, we see a triangle being formed. Triangle support is at $1,150 and resistance at $1,163.

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The weekly chart has reached the 61.8% retracement level and is making a pull back. This rejection is an important sign for what could follow. Can this bounce in Gold price be over?Can we start a new downtrend from these levels? Yes we can. Confirmation of the trend reversal will come once we break the $1,130 on a weekly close.The material has been provided by InstaForex Company - www.instaforex.com

Elliott wave analysis of EUR/NZD for August 24 - 2015

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Technical summary:

The break above resistance at 1.7103 confirmed that wave (v) higher was not over yet and the decline from 171.03 only had been a wave ii correction and a strong rally in wave iii should be expected.

The next upside target is seen at 1.7598, but this will likely only provide temporary resistance, before a continuation higher to 1.7639 or even 1.8336 is seen.

Trading recommendation:

Our stop at 1.7110 was hit. We will buy EUR at 1.7223 and place stop at 1.6970 expecting to move it higher quickly.

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Elliott wave analysis of EUR/JPY for August 24 - 2015

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Technical summary:

We have seen a low at 138.06 and should now see more upside towards 139.41 and maybe even higher to 141.06. Now we expect minor support at 138.45 to be able to protect the downside for the rally higher to 139.41, but only a break below support at 138.06 will indicate a more prolonged consolidation unfolding.

Trading recommendation:

We are long EUR from 137.45 and we will move our stop higher to 138.40. Take profit is still at 139.35

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Technical analysis of EUR/USD for August 24, 2015

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When the European and the US markets open, no reports are expected today in the economic calendar. So in this context, the EUR/USD pair will move with an unpredictable volatility during this trading day.

TODAY TECHNICAL LEVELS:

Breakout BUY Level: 1.1431.

Strong Resistance:1.1424.

Original Resistance: 1.1413.

Inner Sell Area: 1.1402.

Target Inner Area: 1.1375.

Inner Buy Area: 1.1348.

Original Support: 1.1337.

Strong Support: 1.1326.

Breakout SELL Level: 1.1319.

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 24, 2015

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Today, no economic data will be released in the economic calendar to influence Japan's and the US markets. So there is a big probability the USD/JPY pair will move with an unpredictable volatility during the day.

TODAY TECHNICAL LEVELS:

Resistance. 3: 122.02.

Resistance. 2: 121.79.

Resistance. 1: 121.55.

Support. 1: 121.26.

Support. 2: 121.02.

Support. 3: 120.78.

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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Daily analysis of major pairs for August 24, 2015

EUR/USD: This currency trading instrument is now one of the strongest among the majors. From around the support line at 1.1050, the price skyrocketed by more than 320 pips, closing at 1.1384. The resistance line at 1.1400 is an easy target for bulls this week. Even it would be breached to the upside.

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USD/CHF: The USD/CHF pair has yielded to gravity, diving by 300 pips. There are resistance levels at 0.9550 and 0.9600, which should do a good job in halting bullish attempts this week. There are also support levels at 0.9450 and 0.9400, which would be targeted by bears. Since the USD is weak and the CHF is very strong, it is reasonable to conclude that the current bearish movement may continue for a while.

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GBP/USD: This is a good example of cut-throat battles between the bull and the bear. This pair ought to go upwards in a positive correlation mode with EUR/USD: it has gone above the tough accumulation territory at 1.5650. There is a fresh battle in the distribution territory of 1.5700, but bulls should be victorious, though it is not an easy thing.

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USD/JPY: The USD/JPY pair ended its equilibrium phase of several weeks as it plunged massively last week. Several previous demand levels have turned into supply levels, and the price is close to the demand level at 121.50, which could be breached easily in case the current selling pressure continues. This is a long-awaited bearish signal - it may continue to hold this week.

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EUR/JPY: There is a neat Bullish Confirmation Pattern in this market and there is a tendency that the price may continue to head upwards, especially in the face of the strength of the euro. The initial losses incurred by bulls last week have now been recovered and the price might even go higher.

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Daily analysis of USDX for August 24, 2015

The bearish path is still dominating the current outlook on the daily chart of USDX, where we're watching a lower trading towards the support level of 94.59, which could be broken in next few days in order to test the 200 SMA. That moving average could provide "provisional" dynamic support because the index is oversold in the lower time frames.

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On H1 chart, USDX is forming a lower low pattern above the support zone of 94.80, which is trying to block the bearish force. However, 200 SMA is bearish and it could mean the index will perform lower moves. So the index is looking to reach new lows as the bearish momentum remains alive. MACD indicator is on the negative territory.

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Daily chart's resistance levels: 95.50 / 96.57

Daily chart's support levels: 94.59 / 93.71

H1 chart's resistance levels: 95.25 / 95.46

H1 chart's support levels: 94.80 / 94.39

Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the USD Index breaks with a bearish candlestick; the support level is at 94.80, take profit is at 94.39, and stop loss is at 95.21.

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Daily analysis of GBP/USD for August 24, 2015

On the daily chart, bullish tone remains untouched with GBP/USD, because the pair is looking to break the resistance zone of 1.5761 higher during this week. Besides, the cable is still supported by the 200 SMA, which is also giving the current bullish momentum to this pair. There could be some pullbacks, but the rally is strong.

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Resistance level of 1.5715 is the near-term target that pair is looking to break in order to continue trading in favor of the bullish bias. Next interest zone is located around the 1.5763 level. However, at least during this week, GBP/USD could test again the 200 SMA and perform a rebound to ride again the bullish trend.

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Daily chart's resistance levels: 1.5761 / 1.5881

Daily chart's support levels: 1.5640 / 1.5543

H1 chart's resistance levels: 1.5715 / 1.5763

H1 chart's support levels: 1.5679 / 1.5632

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 1.5715, take profit is at 1.5763, and stop loss is at 1.5666.

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