Technical analysis of USD/JPY for August 28, 2015

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USD/JPY is expected to continue with the upside movement. Overnight, US stocks marched higher amid higher GDP growth, a rally in the Asian and European markets, and soaring oil prices. The Dow Jones Industrial Average rose 2.3% to close at 16,654, the S&P 500 gained 2.4% to 1,987, and the Nasdaq Composite increased 2.5% to 4,812. The US government reported that 2Q GDP grew at an annualized rate of 3.7% (vs +2.3% previously estimated), and initial jobless claims fell to 271K for the week ended August 22 (vs 277K in the prior week). Crude oil soared 10.3% to settle at $42.56 a barrel, the largest percentage gain since March 2009. Meanwhile, gold edged down 0.2% to $1122 an ounce and the 10-year Treasury yield fell to 2.168% from 2.172% in the previous session. Encouraged by the upbeat economic data, the US dollar also climbed higher. EUR/USD touched as low as 1.1201, GBP/USD as low as 1.5369, and USD/JPY was up to 121.40. Regarding USD/JPY, the pair remains on the upside and is still trading within a bullish channel. Support is given by the 20-period intraday moving average (MA), which is above the 50-period one. Besides, the intraday RSI is well-directed and supported by a rising trendline. The continuation of the current rebound could bring the pair to the first upside target at 121.75 (last seen on August 24).

Trading recommendations:

The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. As long as the price holds above its pivot point, long positions are recommended with the first target at 121.75 and the second target at 122.35. In the alternative scenario, short positions are recommended with the first target at 119.40 if the price moves below its pivot points. A break of this target is likely to push the pair further downwards, and one may expect the second target at 118.90. The pivot point is at 120.25.

Resistance levels: 121.75 122.35 122.80

Support levels: 119.40 118.90 118.45

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Technical analysis of USD/CHF for August 28, 2015

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USD/CHF is expected to trade with bullish bias as the trend remains bullish. The pair is clearly supported by a bullish trendline established since August 25. At the current stage, the intraday momentum is still strong as the intraday RSI stands firmly above its 50 area without displaying any reversal signals. In this case, the bias remains bullish, as long as 0.9550 is support. Further advance seems to be on the cards towards 0.9730.

Trading recommendations:

The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. As long as the price holds above its pivot point, long positions are recommended with the first target at 0.9675 and the second target at 0.9730. In the alternative scenario, short positions are recommended with the first target at 0.9480 if the price moves below its pivot points. A break of this target is likely to push the pair further downwards, and one may expect the second target at 0.9410. The pivot point is at 0.9550.

Resistance levels: 0.9675 0.9730 0.9765

Support levels: 0.9480 0.9410 0.9375

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Technical analysis of NZD/USD for August 28, 2015

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NZD/USD is expected to trade with bearish bias below the key resistance at 0.6515. The pair remains in consolidation on an intraday basis, and is under pressure below its nearest resistance at 0.6515. The upside potential is likely to be limited by this key level. Besides, the intraday RSI lacks bullish momentum. Therefore, as long as 0.6515 is not surpassed, look for a choppy price action with a bearish bias. Our next downside targets are set at 0.6425 and 0.6365.

Trading recommendations:

The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 0.6425. A break of that target will move the pair further downwards to 0.6365. The pivot point stands at 0.6515. In case the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, long positions are recommended with the first target at 0.6580 and the second target at 0.66.

Resistance levels: 0.6580 0.66 0.6675

Support levels: 0.6425 0.6365 0.63

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Technical analysis of GBP/JPY for August 28, 2015

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GBP/JPY is expected to trade in a lower range. The pair remains on the downside and is currently challenging its key resistance at 136.45. And the intraday RSI lacks further upward momentum. The first target to the downside is therefore set at yesterday's low at 185.25. A break below this level would open the way to further weakness towards the horizontal support and overlap at 184.10 in extension. Only a break above the key resistance at 187.25 would call for further upside.

Trading recommendations:

The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 185.25. A break of that target will move the pair further downwards to 184.10. The pivot point stands at 187.25. In case the price moves in the opposite direction bouncing back from the support level, it will move above its pivot point. It is likely to move further upside. According to that scenario, long positions are recommended with the first target at 188.15 and the second target at 188.70.

Resistance levels: 188.15 188.70 189.45

Support levels: 185.25 184.10 183.35

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Intraday technical levels and trading recommendations for EUR/USD for August 28, 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) reflected recent bearish rejection being expressed around 1.1450.

In the long term, a projection target will be still located at 0.9450 if a bearish breakdown of the monthly demand level at 1.0550 occurs soon.

On the other hand, a bullish corrective movement towards 1.1500 will be possible only if May's monthly high of 1.1465 gets breached. This can be achieved if the current monthly candlestick closes above the weekly high (1.1465) by the end of August.

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

Recently, evident bullish recovery was expressed after hitting the level of 1.0800. Since then, bulls have been trying to achieve an extensive bullish movement towards 1.1500 and 1.1700.

Multiple ascending bottoms were established around the levels of 1.0830 and 1.1020. These levels corresponded to the current daily uptrend depicted on the chart.

Since last Friday, extensive bullish pressure was applied until bearish rejection was expressed around the price level of 1.1700. That is when extensive bearish rejection was expressed on Wednesday.

The market looked overbought as the bulls were pushing above the price level of 1.1500 (Daily Supply Level). That's why, a bearish corrective movement is currently taking place towards the price level of 1.1160.

Conservative traders should wait for a valid BUY entry anywhere around the price level of 1.1160 (corresponding to the depicted uptrend line as well as 61.8% Fibonacci level). S/L should be placed below 1.1100.

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Daily analysis of SILVER for August 28, 2015

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Overview

Silver price continues to rise gradually approaching the previously broken support level of 14.70 that turned into resistance now. It was met by the EMA50 to add more strength accompanied by stochastic in the overbought areas. Therefore, these factors encourage us to keep our bearish overview for the upcoming period, waiting a visit to 13.50 followed by 12.80. Note that the continuation of the bearish trend depends on holding below 14.70 and the most important 15.50.

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Daily analysis of GBP/JPY for August 28, 2015

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Overview

GBP/JPY broke the support level of 191.96 last week suggesting that the rebound from 184.95 was already completed at 195.25. A fall from there is viewed as the third leg of the consolidation pattern from 195.86. An initial bias is on the downside this week (for 184.95 support and below). We will look for strong support around 61.8% retracement of 174.86 to 195.86 at 182.88 to countinue moving downside in order to rebound.

According to the H4 chart, an uptrend from 116.83 is still in progress. The current rise is likely to test at least 61.8% retracement of 251.09 to 116.83 at 199.80 in the medium term. A break of 174.86 will result in a deeper correction first. We should be cautious when trading around the med-term topping at the 200 and bring a deep correction. Meanwhile, a reak of 174.86 will suggest that the trend has reversed earlier than we expected.

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Intraday technical levels and trading recommendations for GBP/USD for August 28, 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 has been providing evident supply for the GBP/USD pair.

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.

For several weeks, consecutive weekly candlesticks has beem generating contradictory signals.

However, the previous weekly candlestick closure above 1.5500 hindered 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 day to determine if the weekly closure persists below 1.5450 (Key-Level) or not.

The nearest demand level around 1.5200 is exposed as long as GBP/USD bears manage to keep moving below the level of 1.5450.

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Previously, the 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 50% Fibonacci level and the 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 constituted a significant key level to watch for. It corresponded to the uptrend line depicted on the chart.

Prominent supply/resistance levels were located around the level of 1.5770 (prominent 61.8% Fibonacci level) where the Right shoulder of the depicted bearish reversal pattern was originated.

That is why, a valid sell entry was suggested for retesting 1.5770 on Monday. The position is already running in profits now.

Moreover, the bearish movement towards 1.5330 and 1.5200 should be expected as long as the market keeps trading below the zone of 1.5480-1.5450.

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GBP/USD intraday technical levels and trading recommendations for August 28, 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 depicted 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 numbers). The final bearish target at 1.5450 was reached.

Recently, strong bullish pressure was applied at the resistance level around 1.5800 via a recent bullish swing.

That is why the resistance level at 1.5800 was temporarily breached. Bulls pursued 100% Fibonacci Expansion located around 1.5900 where the depicted Head and Shoulders pattern was manifested.

The level of 1.5555 (prominent demand level/depicted uptrend line) got breached last month due to excessive bearish pressure. It enhanced the bearish side of the market towards 1.5360 where the most recent bullish swing was initiated aiming for the level of 1.5800 again.

As anticipated, a daily fixation above 1.5690 (the upper limit of the consolidation range) hindered the bearish scenario for some time exposing a breakout projection target at 1.5800.

A valid sell entry with a low risk/reward ratio was suggested around the levels of 1.5780-1.5800. It is already running in profits now. The nearest support levels to meet the GBP/USD pair are located at 1.5355 then 1.5260

Note that persistence below the zone of 1.5450 (lower limit of the broken consolidation range) is essential to pursh the pair towards lower bearish targets at 1.5350 and 1.5245.

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USD/CAD intraday technical levels and trading recommendations for August 28, 2015

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Overview:

Few months ago, 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 lower highs (within the depicted consolidation zone) enhancing the bearish side of the market.

A daily fixation below 1.2300 opened the 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 achieved. Bullish pressure was applied against the resistance levels at 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 target was projected towards the level of 1.3270 (100% Fibonacci Expansion) where bearish pressure should be expected. Bulls were approaching this level this week.

Bearish corrective movement towards the level of 1.2750 (Breakout Level) should be expected as long as USD/CAD bears keep defending the current Fibonacci Expansion zone at 1.3270-1.3300.

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:

Risky traders can SELL the USD/CAD pair around the current levels (anywhere around 1.3270) with S/L to be located above 1.3360.

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 and T/P levels to be located at 1.3200 and 1.3050.

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Technical analysis of CAD/JPY for August 28, 2015

Moving in an uptrend, CAD/JPY formed a double top near the psychological resistance level of 92.00. At the same time, this level corresponds to the 23.6% resistance level of the Fibonacci applied to a breakout point of the descending channel.

While the pair was trying to brake below 38.2% support (R1 - 91.38), the price retraced back, perhaps to retest this level, acting as resistance this time. As it is likely to be rejected today, consider selling CAD/JPY at the current level targeting the areas around S1 (90.87) or S2 (90.36) . The target at S2 seems to be more reasonable as previously it acted as a strong resistance. To stay safe, stop loss should be placed just above R2. However, tighter stop loss could also work out.

Support: 90.87, 90.36

Resistance: 91.38, 92.00

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Global macro overview for 28/08/2015

Global macro overview for 28/08/2015:

The UK Second Estimate of GDP has come at the level of 0.7% q/q (2.6% y/y) in line with analysts' expectations, unrevised from the previously published estimate.The UK exports posted the largest increase rising by 3.9 percent from the previous three months, which is the biggest gain in four years. This kind of good data might encourage the Bank of England to raise the interest rates, as the British economic growth rate is improving with personal incomes increasing as well. However, despite the governor Mark Carney's remarks about tightening monetary policy, timing for the long anticipated interest rate hike is still unknown, as the weaker global outlook prevents the BoE from making the decision so far.

Technical picture for the GBP/USD pair is favoring bears now as after the recent fake breakout above the resistance level of 1.5790, the currency is movind downwards now, trading at the level of 1.15403. The next support is seen at the level of 1.5330 and the resistance is found at the level of 1.5425.

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EUR/NZD: analysis for August 28, 2015

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Overview:

Recently, EUR/NZD has been moving donwards. The price tested the level of 1.7277. In the daily time frame, we can observe a supply bar in an average volume. The trend is neutral. Our Fibonacci expansion 61.8% at the level of 1.7325 held successfully. Anyway, we saw weakness in the 1H time frame (up-thrust bar). Buying still looks risky in the background. Watch only for selling opportunities after retracement. Support is seen around the level of 1.7275.

Fibonacci Pivot Points :

Resistance levels:

R1: 1.7575

R2: 1.7655

R3: 1.7780

Support levels:

S1: 1.7325

S2: 1.7250

S3: 1.7120

Trading recommendations: Watch only for selling opportunities after retracement.

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Global macro overview for 28/08/2015

Global macro overview for 28/08/2015:

Yesterday, crude bounced from the support line and rallied almost 10%, the biggest one-day relief rally since March 2009. The main catalyst to rally was the good US data. The Gross Domestic Product for second quarter grew at a 3.7% annualized rate, beating the expectations. Moreover, the S&P500 index has reached the highest two-day since 2009 and the Chinese shares reversed a five day losing streak as well.

The technical picture of crude oil confirms the corrective upside cycle with the first target at the 23% Fibo level might be considered as accomplished. The nearest support is seen at the level of 41.45.

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Gold : analysis for August 28 , 2015

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Overview:

Since our last analysis, gold has been trading upwards. The price tested the level of $1,132.79. According to the daily time frame, we can observe a test of supply bar (potential sign of strengh). Anyway, we saw weakness in today's price action in the H1 time frame. We got no demand bar and up-thrust bar. Watch only for selling opportunities after retracement. Strong support has been seen at the level of $1,117.50. If the price breaks this support level, we will have the second support around $1,111.00. On the background, we can observe a strong sign of weakness (supply came in), which shows that this can be a turning point in the mid-term prospect.

Daily Fibonacci pivot points:

Resistance levels

R1: 1,127.00

R2: 1,129.00

R3: 1,134.00

Support levels:

S1: 1,118.30

S2: 1,115.60

S3: 1,111.20

Trading recommendations: The strong sign of weakness is in the background. Watch only for selling opportunites after retracement.

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Technical analysis of EUR/JPY for August 28, 2015

General overview for 28/08/2015 10:10 CET

The wave (b) blue is now in progress with the potential target at the level of 137.58 where the intraday resistance is. This kind of wave might get complex and time-consuming. Moreover, the whole technical picture from the Elliott wave perspective looks like a large corrective cycle in the wave C black is developing right now, so this kind of range-trading might be the main theme for some time now.

Support/Resistance:

135.23 - Intraday Support

135.92 - WS3

137.58 - Intraday Resistance

136.49 - WS2

Trading recommendations:

Daytraders should consider opening buy orders only if the level of 136.51 is violated with SL below the level of 135.44 and TP at the level of 137.50.

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Technical analysis of USD/CAD for August 28, 2015

General overview for 28/08/2015 10:00 CET

The choppy and overlapping price action all around the hourly chart indicates a typical topping pattern in this pair. The bulls are exiting their long positions and the bears are tying to step in and push the prices in their favor. Nevertheless, there is still one more wave up missing to complete a possible ending diagonal cycle, but first, the intraday resistance at the level of 1.3352 must be violated.

Support/Resistance:

1.3434 - Potential Wave -v- Target Projection

1.3352 - Intraday Resistance

1.3312 - WR2

1.3264 - WR1

1.3180 - Intraday Support (weak)

1.3144 - Weekly Pivot

1.3140 - Intraday Support (strong)

Trading recommendations:

Daytraders should consider opening buy orders from the current price levels with SL below the level of 1.3179 and TP at the level of 1.3265.

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Gold technical analysis for August 28, 2015

Gold price has held support and is showing signs of an upward reversal for the short-term trend. Important resistance is found at $1,130-50 area and a breakout above these levels will push the price towards $1,200. Bullish positions are favored for now as I see more chances of an upward bounce.

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Gold price is above the 61.8% retracement and has already made a short-term higher high and low. The price is testing the short-term cloud resistance at the $1,130-50 area. The medium-term trend favors bulls and a push towards $1,200.

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However, the weekly chart has much work to do in order for bulls to feel more comfortable. The weekly candle needs to close at least above the tenkan-sen in order for bulls to have some positive signs. Buyers need to support Gold price at these levels and push prices higher. With equity markets being very volatile, another sell-off in equities could help Gold price push higher towards the Ichimoku cloud resistance at $1,200.The material has been provided by InstaForex Company - www.instaforex.com

USDX technical analysis for August 28, 2015

The US Dollar index did not reverse from the 61.8% retracement yesterday but extended its bounce towards the Ichimoku cloud resistance and the 78.6% retracement. The price is showing signs of a trend reversal and rejection so I feel more confident we have seen the highs and a new short-term downward move has started.

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The US Dollar index is below the Ichimoku cloud resistance and I prefer to open short positions for the short term. Resistance and stop for bulls can be the 96.10 level. On the other hand, bulls will want to defend this short-term uptrend and do not want to see a rejection at the current levels and a break below 94.95.

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Red line - resistance

Green line - support

The US Dollar index continued with its bounce higher, but, I believe, the weekly resistance by the tenkan-sen and kijun-sen at 95.50 and 96.50 will not be broken and we will see a rejection. I believe that the final push lower for the US Dollar index has started and we should expect the price to reach the green trendline support and the Ichimoku cloud on the weekly chart. My target is near 92.

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Technical analysis of AUD/NZD for August 28, 2015

While AUD/NZD is moving up in the short term, the previous area of resistance near 1.1100 has been rejected. The pair formed a bearish divergence that could signal a short-term correction or even potential reversal to the downside.

Today, there are two ways to trade this pair. The first one is to sell at the current level, which would offer a higher risk reward ratio. Another is to trade on the breakout of the 23.6% Fibonacci retracement level. The target is seen near 50% (S3 - 1.1020) Fibonacci In both cases as it previously proved to be the key support. A hard stop loss should be placed just above R1 (1.1097).

Support: 1.1060, 1.1040, 1.1020

Resistance: 1.1100

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Elliott wave analysis of EUR/NZD for August 28, 2015

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Technical summary:

A break below support at 1.7426 decided that the small triangle was a b-wave triangle and more downside action was to be expected. That also means that wave (iii) ended with a spike towards 1.9023 and wave (iv) now is unfolding towards 1.6599 as an ideal target. We will not alone find the 50% corrective target of wave (iii) at 1.6599, but it's also close to the bottom of wave iv of one lessor degree, which is a very common target for wave four correction of one larger degree.

Ideal resistance at 1.7524 will protect the upside in order to continue lower to 1.6599.

Trading recommendation:

We sold EUR at 1.7425 and will place our stop at 1.7650 and take profit will be placed at 1.6625.

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Elliott wave analysis of EUR/JPY for August 28, 2015

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Technical summary:

We still think that wave (ii) ended at 61.8% corrective target of wave (i) at 136.45 and wave (iii) should be developing now. We have seen a break above 136.41, but of cause need more evidence to perform a break above 137.60 to be more confident that wave (iii) is indeed developing for a rally higher to 141.06 on the way higher to 144.03.

Only an unexpected break below support at 133.27 will invalidate the bullish outlook and call for a much more complex correction from 141.06.

Trading recommendation:

We bought EUR at 136.42 and will place our stop at 134.90.

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Daily analysis of major pairs for August 28, 2015

EUR/USD: Since the EUR/USD pair reached the resistance line at 1.1700, it has come down by 450 pips. A bullish outlook is now on the brink of being invalidated, especially when the price goes below the support level of 1.1150. This would result in a bearish bias.

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USD/CHF: Since the USD/CHF pair had tested the support level at 0.9300, it went upwards by 350 pips. The price hovers around the support level at 0.9650 (which is almost being breached). There is a threat to the recent bearish outlook - an upward movement by 100 pips would render the bearish outlook completely useless while ushering in a new lease of bullish outlook.

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GBP/USD: The cable fell below the distribution territories at 1.5500 and 1.5450 in line with analysts' expectations. Since the test of the distribution territory at 1.5800, the price has fallen by 400 pips. Right now, the current bearish bias shows that further southward movement is possible.

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USD/JPY: This currency trading instrument has been making slow and gradual upside recovery since the massive sell-off that occurred on Monday. However, the bias is still bearish. What would make things turn bullish here is an event in which the price goes above the supply level of 122.50. The indication in the chart shows that there is a high possibility that this may happen.

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EUR/JPY: This cross has already gone bearish. The EMA 11 is below the EMA 56 while the RSI period 14 is under the level of 50. This is a Bearish Confirmation Pattern in the market, and though the price is volatile, it is more likely that it would go further downwards.

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Technical analysis of EUR/USD for August 28, 2015

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Overview:

  • The EUR/USD pair is expected to form strong resistance at the level of 1.1364. So, according to the previous events, the pair is still moving between the levels of 1.1364 and 1.1140. The major support was found at the level of 1.1098, and the double bottom is seen at the level of 1.1098 in the H1 chart. As it is known, historic rates should be used to determine the further direction. Consequently, it will be of the discernment to use historic rates to determine future prices. Therefore, sell below the level of 1.1364 with the first target at 1.1263 in order to test the weekly pivot point. Moreover, if the trend manages to break the level of 1.1263, thus, it might resume to 1.1137 and then 1.1098. On the other hand, the stop loss should always be taken into account, hence it will be wisdom to set your stop loss at the 1.1385 price.

Warning:

  • Please check out the market volatility before investing, because the sight price may have already been reached and scenarios might have become invalidated.
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Technical analysis of USD/CAD for August 28, 2015

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Overview:

  • The market opened below the daily resistance level of 1.3352 this week. Also, it should be noted that the resistance is set at the level of 1.3352 as strong level but a minor resistance has set at 1.3250 on August 28, 2015. Additionally, the USD/CAD pair hit the major levels such as 1.3280 and 1.3050 yesterday. Hence, the trend was downward and the range broadened up to 96 pips. According to the previous events, the USD/CAD pair has still been moved between the levels of 1.3280 and 1.3050. Therefore, it will be advantageous to sell at 1.3280/1.3250 with the first target at 1.3162. If the price manages to break 1.3162; it may resume to 1.3100. Moreover, it should be noted that the weekly point will set at 1.3050. Stop loss should always be taken into account; accordingly, it is unlikely to be beneficial to set the stop loss above the daily resistance 2 at the level of 1.3379.

Intraday technical levels:

  • R2: 1.3352
  • R1: 1.3280
  • PP: 1.3193
  • S1: 1.3121
  • S2: 1.3049
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Technical analysis of EUR/USD for August 28, 2015

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When the European market opens, economic news about Italian 10-y Bond Auction, Spanish Flash CPI y/y, and German Prelim CPI m/m is due to release. The US will publish data on the Revised UoM Inflation Expectations, Revised UoM Consumer Sentiment, Personal Income m/m, Personal Spending m/m, Core PCE Price Index m/m, and Goods Trade Balance. So amid the reports, EUR/USD will move low to medium volatility during this day.

TODAY TECHNICAL LEVELS:

Breakout BUY Level: 1.1297.

Strong Resistance:1.1291.

Original Resistance: 1.1280.

Inner Sell Area: 1.1269.

Target Inner Area: 1.1243.

Inner Buy Area: 1.1217.

Original Support: 1.1206.

Strong Support: 1.1195.

Breakout SELL Level: 1.1189.

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

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

Technical analysis of USD/JPY for August 28, 2015

!_USDJPY.jpg

In Asia, Japan will release data on the Retail Sales y/y, Unemployment Rate, National Core CPI y/y, Tokyo Core CPI y/y, and Household Spending y/y. The US will publish economic data about Revised UoM Inflation Expectations, Revised UoM Consumer Sentiment, Personal Income m/m, Personal Spending m/m, Core PCE Price Index m/m, and Goods Trade Balance. So, there is a strong probability that USD/JPY will move with low to medium volatility during the day.

TODAY TECHNICAL LEVELS:

Resistance. 3: 121.79.

Resistance. 2: 121.55.

Resistance. 1: 121.31.

Support. 1: 121.01.

Support. 2: 120.78.

Support. 3: 120.54.

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

Daily analysis of USDX for August 28, 2015

Bullish momentum is still alive in the daily time frame where the US Dollar Index is performing a rebound above the 200 SMA. This Index is now facing the resistance level at 95.83. In case of a breakout, the USDX will test the level of 96.64. The MACD indicator is oversold.

USDXDaily.png

On the H1 chart, the USDX is trying to consolidate above the 200 SMA and the support level of 95.68. The Index will try to break the resistance level of 96.09 in order to reach the zone of 96.39. There is a higher swing calling for more upside in the short and mid-term, so the USDX is likely to trade in a bullish tone during the next week.

USDXH1.png

Daily chart's resistance levels: 95.83 / 96.64

Daily chart's support levels: 95.26 / 94.59

H1 chart's resistance levels: 96.08 / 96.39

H1 chart's support levels: 95.68 / 95.33

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 96.08, take profit is at 96.39, and stop loss is at 95.77.

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

Daily analysis of GBP/USD for August 28, 2015

The bearish bias remains dominating the GBP/USD pair, which is —Āonsolidati below the level of 1.5438 on the daily chart. This move could open doors to the next support zone around the level of 1.5329. The 200 SMA is still neutral, and that is why we should be very cautious when trading inside this range.

GBPUSDDaily.png

The short-term trend is still bearish on the structure at H1 chart, and its already forming a lower low pattern below the level of 1.5436. This pattern could be developed when GBP/USD broke a low of 1.5368. However, a correction move towards the resistance level of 1.5463 should be taken into account. The MACD indicator is at the positive territory.

GBPUSDH1.png

Daily chart's resistance levels: 1.5438 / 1.5543

Daily chart's support levels: 1.5329 / 1.5224

H1 chart's resistance levels: 1.5463 / 1.5502

H1 chart's support levels: 1.5415 / 1.5368

Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the GBP/USD pair breaks a bearish candlestick; the support level is at 1.5415, take profit is at 1.5368, and stop loss is at 1.5457.

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

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

gbpusdweekly.png

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 has been providing evident supply for the GBP/USD pair.

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.

For a few weeks, contradictory signals were coming from consecutive weekly candlesticks indicating market indecision above the price levels of 1.5500.

However, the previous weekly candlestick closure above 1.5500 hindered 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 day to determine if the weekly closure persists below 1.5450 (Demand Level) or not.

The nearest demand level around 1.5200 remains exposed as long as the GBP/USD bears manage to keep moving below the level of 1.5450.

gbpusddaily.png

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 the 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 constituted a significant key level to watch for. It corresponded to the uptrend line depicted on the chart.

The nearest supply/resistance levels for the GBP/USD pair are located around the levels of 1.5770 (prominent 61.8% Fibonacci level) where the last limb of the Head and Shoulders pattern was originated.

Thus, a valid sell entry was suggested for retesting of 1.5770 on Monday. The position is already running in profits now.

Moreover, the bearish movement towards 1.5330 and 1.5200 should be expected especially if the market keeps trading below the price level of 1.5480.

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

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

1440689027_gbdailyy.png

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 depicted 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 numbers). The final bearish target at 1.5450 was reached.

Recently, strong bullish pressure was applied against the resistance levels around 1.5800 via a recent 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 manifested.

The level of 1.5555 (prominent demand level/depicted uptrend line) got breached last month due to excessive bearish pressure. It enhanced the bearish side of the market towards 1.5360 where the most recent bullish swing was initiated aiming at the level of 1.5800 again.

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

A valid sell entry with a low risk/reward ratio was suggested around the levels of 1.5780-1.5800. It is already running in profits now.

Note that the persistence below the zone of 1.5450 (lower limit of the broken consolidation range) is mandatory to pursue towards lower bearish targets at 1.5400 and 1.5350.

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

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

usdcadweekly.pngcaddailyy.png

Overview:

Few months ago, 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 lower highs (within the depicted consolidation zone) enhancing the bearish side of the market.

A daily fixation below 1.2300 opened the 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 achieved. Bullish pressure was applied against the resistance levels at 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 target was projected towards the level of 1.3270 (100% Fibonacci Expansion) where bearish pressure should be expected. Bulls were approaching this level this week.

Bearish corrective movement towards the level of 1.2750 (Breakout Level) should be expected as long as USD/CAD bears keep defending the current Fibonacci Expansion zone at 1.3270-1.3300.

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:

Risky traders can SELL the USD/CAD pair around the current levels (anywhere around 1.3270) with S/L to be located above 1.3360.

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 and T/P levels to be located at 1.3200 and 1.3050.

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