Technical analysis of USD/JPY for October 01, 2015

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USD/JPY is expected to trade upside as bias remains bullish. On the last trading day of September and the third quarter, US stocks advanced as shares in energy, materials and healthcare sectors rebounded. The Dow Jones Industrial Average rose 1.5% to 16,284, the S&P 500 gained 1.9% to 1,920, and the Nasdaq Composite ended 2.3% higher at 4,620. Nymex crude oil edged down 0.3% to settle at $45.09 a barrel, while gold fell 1.0% to $1,115 an ounce. The 10-year Treasury yield was at 2.061%, up from 2.056% at the previous session. Regarding economic data, the ADP payrolls increased 200,000 in September (vs +190,000 expected, +190,000 in August), while the Chicago Business Index came in at 48.7 in September (vs 54.4 in August). The US dollar strengthened broadly against most major currencies. EUR/USD dropped 0.6% to 1.1176, GBP/USD edged down 0.1% to 1.5127, USD/JPY edged up 0.1% to 119.84. On the other hand, the Canadian dollar rebounded against the US dollar from an 11-year low as the country's GDP grew 0.3% on-month in July (vs +0.2% expected). The pair remains on the upside as 119.45 provides a key support base. It is above the 20-period intraday moving average (MA), while the intraday relative strength indicator (RSI) is around the neutrality level at 50. The first upside target is set at 120.25 (yesterday's high) and the second one is at 120.45.

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 120.20 and the second target at 120.45. In the alternative scenario, short positions are recommended with the first target at 119.20 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 119.00. The pivot point is at 119.45.

Resistance levels: 120.20 120.45 120.65

Support levels: 119.20 119.00 118.70

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Technical analysis of USD/CHF for October 01, 2015

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USD/CHF is expected to trade with a bullish bias. The pair is bouncing off its key support base around 0.9695, and is expected to challenge 0.9720, which represents the previous swing high. A new technical rebound seems to be on the cards, as the intraday 20-period and 50-period intraday MAs are turning up, and the RSI is also positive. To sum up, as long as 0.9720 is not broken, look for a new bounce to 0.9810 and 0.9845.

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 0.9790 and the second target at 0.9820. In the alternative scenario, short positions are recommended with the first target at 0.9695 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 0.9665. The pivot point is at 0.9720.

Resistance levels: 0.9810 0.9845 0.99

Support levels: 0.9695 0.9665 0.9640

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Technical analysis of NZD/USD for October 01, 2015

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NZD/USD is expected to trade in a lower range as bias remains bullish. The pair remains on the upside supported by its rising 50-period intraday MA. The immediate trend is upward, but momentum is weak, as the intraday RSI lacks strong upward momentum, calling for caution. Nevertheless, as long as 0.6380 (a key horizontal support) holds on the downside, any consolidations should be limited before further advance to 0.6455 and 0.6485.

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 0.6425 and the second target at 0.6485. In the alternative scenario, short positions are recommended with the first target at 0.6350 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 0.6320. The pivot point is at 0.6380.

Resistance levels: 0.645 0.6485 0.6525

Support levels: 0.6350 0.6320 0.6285

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Technical analysis of GBP/JPY for October 01, 2015

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GBP/JPY is expected to trade in a lower range as the pair is under pressure. The pair is consolidating on the downside and is trading below its 50-period intraday MA, which is exerting resistance on the pair. The descending 20- and 50-period MAs maintain a downside bias. The intraday RSI is below its neutrality level at 50 and lacks upward momentum. As long as the level of 182 is resistance, the pair is likely to test its previous low at 180.80 again. A break below this level would call for a further drop towards 180.30.

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 180.80. A breakout of that target will move the pair further downwards to 180.30. The pivot point stands at 182. 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 182.75 and the second target at 183.30.

Resistance levels: 182.75 183.30 184

Support levels: 180.80 180.30 179.75

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Global macro overview for 01/10/2015

Global macro overview for 01/10/2015:

In the overnight comment Japanese lawmaker Jamamoto suggested that Bank of Japan should ease monetary policy in its next meeting in October 2015, but this kind of actions might be currently difficult. Today's Bank of Japan officials commented on the whole situation, claiming that they see little need for an immediate expansion of monetary stimulus and would prefer to hold off to get a clearer picture of the economic outlook. It looks like the BoJ board members will get together on October's policy meeting to wait and observe the economic developments both at home and abroad.

From the technical point of view, the USD/JPY pair has been trading inside the triangle formation from the end of the August 2015 and it might finally start to breakout to the downside again. Immediate support is seen at the level of 119. 23, followed by the next levels at 119.06 and 188.60.

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Global macro overview for 01/10/2015

Global macro overview for 01/10/2015:

The recent data from Australia shows that the PMI Manufacturing index expanded for a third consecutive month for the first time since July 2010. It increased to the level of 52.1 in September from 51.6 a month ago. The readings above 50 means the expansion in manufacturing industry and this is viewed as a positive news mainly due to a consolidation of activity in mining industry. Moreover, gains in this sector come despite the decrease of activity in two man lower level sectors: metals and machinery parts, which brighten the outlook even more.

The technical picture of AUD/USD looks somewhat steady as this pair is clearly bouncing from technical support at the level of 0.6906, but it is still trading inside of the golden channel.

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EUR/NZD analysis for October 01, 2015

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Overview:

Recently, EUR/NZD has been moving downwards. As we expected, the price tested the level of 1.7290. In the daily time frame, we can observe a supply bar in an average volume. The intraday trend is downward. According to the M15 chart, we can observe weak demand around the price of 1.7330. The today point of control is at the price of 1.7380. Watch for potential selling opportunities after retracement. Anyway, major daily support at the price of 1.7265 is on the test (daily swing lows). Watch for a potential breakout of that support to confirm further downward movement.

Fibonacci Pivot Points :

Resistance levels:

R1: 1.7665

R2: 1.7740

R3: 1.7860

Support levels:

S1: 1.7430

S2: 1.7350

S3: 1.7235

Trading recommendations: Be careful when buying and watch for potential selling opportunities.

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Gold : analysis for October 01 , 2015

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Overview:

Since our last analysis, gold has been trading downwards. As we expected, the price tested the level of $1,115.10. An intraday trend is downward, so watch only for selling opportunities after retracement. In the daily time frame, we can observe a supply bar in an average volume. In the M15 time frame, we can observe a peak volume at the level of $1,115.10 (point of control). Also, we can observe lack of demand at the level of $1,114.10 (no demand bar). According to the daily price action, we broke the support level at $1,121.50 and the next support level is seen at $1,102.00. Daily Fibonacci pivot points :

Resistance levels

R1: 1,123.20

R2: 1,126.45

R3: 1,131.75

Support levels:

S1: 1,112.55

S2: 1,109.30

S3: 1,104.00

Trading recommendations: Be careful when buying gold at this stage and watch for potential selling opportunities after retracement.

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Technical analysis of USD/CAD for October 1, 2015

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Overview:

The support will be set at the level of 1.3232 and the double bottom is going to be at 1.3181. According to the previous events, the price of USD/CAD is still trapped between 1.3232 and 1.3360. The level of 1.3232 is representing the daily pivot point. It should be noted that the daily pivot point is coinciding with the ratio of 50% Fibonacci retracement levels. So, USD/CAD has called for the bullish market from the prices of 1.3181 and 1.3232 because the prices of 1.3181 and 1.3232 are representing strong supports. It is preferable to buy above the minor support at 1.3232 with the first target at 1.3286 in order to test the ratio of 61.8% of Fibonacci retracement. Moreover, if the pair breaks the price of 1.3286, it is going to continue moving towards 1.3360. However, the stop loss has always been in consideration thus it will be useful to set it below the last double bottom at the level of 1.3181.

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Technical analysis of EUR/USD for October 1, 2015

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Overview:

  • As expected, the price of the EUR/USD pair has been turning to bearish sentiment from the level of 1.1210 because the resistance has already been set at the level of 1.1210 and the weekly pivot point was also placed near the resistance at 1.1210. Accordingly, it will be a good decision to sell in this area with the first target of 1.1104 to test a minor support at this price, which represents the the ratio of 00% Fibonacci retracement level on the H1 chart. Besides, if the trend can break 00% Fibonacci retracement, it will call for a downtrend in order to continue with its bearish movement towards 1.1075. The support will be at the 1.1075 level today. The weekly pivot point of EUR/USD has been set at 1.1210 this week. Hence, the stop loss should never exceed your maximum exposure amounts. Thus, it will be profitable to set your stop loss at the level of 1.1263.

Comment:

  • The weekly pivot point at 1.1210 could hit the moving average (50).
  • Stop loss should never exceed your maximum exposure amounts.
  • As a rule, the market is highly volatile if the previous day had a huge volatility.
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Technical analysis of USD/CAD for October 1, 2015

General overview for 01/10/2015 10:00 CET

Yesterday's attempt to label the current wave progression as impulsive has been invalidated due to wave i and wave ii overlaps. Currently, the count has been updated and now two scenarios are possible. Main scenario indicates a developing ending diagonal pattern in big wave 5 purple. An alternative scenario indicates an uncompleted wave 4 purple that is developing into more complex and time consuming corrective structure.

Support/Resistnace:

1.3455- Swing High

1.3451- WR1

1.3370 - Intraday Resistnace

1.3312 - Weekly Pivot

1.3270 - Intraday Support

1.3232 - Intraday Support

1.3208 - WS1

Trading recommendations:

Day traders should consider opening sell orders from the level of 1.3312 with SL above the level of 1.3317 and TP at the level of 1.3270.

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USDX technical analysis for October 1, 2015

The US dollar index continues to trade below the important resistance of 96.60, but above the Ichimoku cloud in both the 4-hour and weekly charts. The price is getting closer to the important resistance of a bullish flag in the weekly chart. Soon, we will have a breakout or a rejection.

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Red lines - triangle pattern

The US dollar index is testing the upper triangle boundary once again. The price is testing the level of 96.60, and a daily close above this level will open the way to much higher levels around 98 and ,why not, new yearly highs. Short-term support is found at 96.20 and then at 95.80. Resistance is seen at 96.60.

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Red line - resistance

Green line - support

The weekly chart remains unchanged. The price is still inside the bullish flag pattern and above the weekly cloud support. Bulls will need to show strength soon. A rejection at the red trend-line resistance will be a very bearish sign that could bring the index price back inside the cloud and towards the green support trend line.

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Technical analysis of EUR/JPY for October 1, 2015

General overview for 01/10/2015 09:50 CET

This pair is still trading inside the neutral zone, however it was broken below the golden trend line yesterday. Currently, it is trading just above the weekly pivot support at the level of 133.40. In the higher time frames, the whole market is still in congestion zone 139.00 - 132.20 and it looks like it is waiting for any fundamental trigger ( news, events etc.) to breakout above/below the zone. Nevertheless, any breakout below the intraday support at the level of 133.55 will be considered bearish and lower levels of the neutral zone might be tested soon.

133.40 - WS1

133.55 - Intraday Support

134.22 - Intraday Resistnace

134.77 - Weekly Pivot

Trading recommendations:

Day traders should consider opening buy orders only if the level of 134.23 is violated with tight SL (10-15 pips) and TP at the level of 134.77.

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Gold wave analysis for October 1, 2015

Gold price moved lower than initially expected but my wave count is still valid as this wave 2 has not breached the start of its wave 1 yet. Technically, the price is very close to the lower triangle boundary, so a bounce from current levels could push the pair to at least $1,140.

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Black lines - bearish channel

Green lines- long-term triangle pattern

Gold price has broken below the Ichimoku cloud and remains inside the bearish channel. The price has reached the 78.6% Fibonacci retracement holding above the lower triangle boundary. If we are going to see a bounce, we should start rising the latest from tomorrow. A bounce target is seen at $1,140, the Ichimoku cloud, and the upper triangle boundary.

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Black lines - long-term triangle

The weekly chart depicts the triangle pattern we are in. We are very close to the lower triangle boundary and long positions are preferred now. The bounce target is $1,140, and if we manage to break above $1,150, I believe we can reach even $1,200.

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Elliott wave analysis of EUR/NZD for October 1 - 2015

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Technical summary:

We have seen a breakout below 1.7453, which was quite unexpected and that has shifted the picture from a potential bullish count to a bearish calling for more downside toward 1.6781 where this correction will have corrected 38.2% of a rally from 1.3881 to 1.8554. In the short term, we expect minor resistance at 1.74994 to protect the upside for a decline to 1.7070.

Trading recommendation:

Our stop at 1.7450 was hit for a small loss, We will sell EUR at 1.7480 with stop placed at 1.7580.

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Elliott wave analysis of EUR/JPY for October 1, 2015

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Technical summary:

A very slow descent towards 131.45 continues. Once the target has finally been reached, a new impulsive rally higher towards 141.06 and above is expected The short-term resistance is found at 135.10 and only a direct breakout above here could indicate that the bottom is already found at 132.23 and the new impulsive rally already is unfolding.

Trading recommendation:

We will buy EUR near 131.45 or upon a break above 135.10 (one order done cancels the other)

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Daily analysis of major pairs for October 1, 2015

EUR/USD: This pair performed some bearish attempts, which resulted in a Bearish Confirmation Pattern in the chart. The EMA 11 has crossed the EMA 56 to the downside, while the Williams' % Range period 20 is now entering the oversold territory. This means there is a rising momentum in the market, which could favor bears.

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USD/CHF: There is a "buy" signal, which would become even stronger when the resistance level at 0.9800 gets broken to the upside. The new "buy" signal cannot be rendered invalid as long as the price stays above the support level at 0.9700. Normally, the movement in the EUR/USD pair would determine the fate of the USD/CHF pair.

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GBP/USD: This pair has been consolidating to the downside since Monday - though the bearish bias is clearly visible. The price is below the distribution territory of 1.5150; and it could test the accumulation territory at 1.5100. It could even breach it to the downside, for the outlook on GBP is generally weak. So, any meaningful rallies would be difficult to perform.

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USD/JPY: This is a strong equilibrium market in which there is no clear uptrend or downtrend. A breakout would happen any time this week or next week. When it does happen it would be a significant one. Some fundamental figures are expected today and they can have impact on the market.

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EUR/JPY: After a few days of consolidation in the context of a downtrend, the EUR/JPY pair broke out towards the south. This price action has confirmed the bearish outlook. The demand zones at 133.50 and 133.00 could be tested. There are supply zones around 135.50 and 136.00, which would pose as hindrances to bullish attempts.

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Technical analysis of EUR/USD for October 01, 2015

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When the European market opens, economic news on the French 10-y Bond Auction, Spanish 10-y Bond Auction, Final Manufacturing PMI, German Final Manufacturing PMI, French Final Manufacturing PMI, Italian Manufacturing PMI, and Spanish Manufacturing PMI is due to be released. The US is expected to publish economic data about the Total Vehicle Sales, Natural Gas Storage, ISM Manufacturing Prices, Construction Spending m/m, ISM Manufacturing PMI, Final Manufacturing PMI, Unemployment Claims, and Challenger Job Cuts y/y. So amid the reports, EUR/USD will move with low to medium volatility during this day.

TODAY TECHNICAL LEVELS:

Breakout BUY Level: 1.1223.

Strong Resistance:1.1217.

Original Resistance: 1.1206.

Inner Sell Area: 1.1195.

Target Inner Area: 1.1169.

Inner Buy Area: 1.1143.

Original Support: 1.1132.

Strong Support: 1.1121.

Breakout SELL Level: 1.1115.

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 October 01, 2015

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In Asia, Japan will release data on the 10-y Bond Auction, Final Manufacturing PMI, Tankan Non-Manufacturing Index, and Tankan Manufacturing Index. The US will publish economic data about Total Vehicle Sales, Natural Gas Storage, ISM Manufacturing Prices, Construction Spending m/m, ISM Manufacturing PMI, Final Manufacturing PMI, Unemployment Claims, and Challenger Job Cuts y/y. So, there is a strong probability that USD/JPY pair will move with low to medium volatility during this day.

TODAY TECHNICAL LEVELS:

Resistance. 3: 120.57.

Resistance. 2: 120.34.

Resistance. 1: 120.10.

Support. 1: 119.81.

Support. 2: 119.57.

Support. 3: 119.34.

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

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Daily analysis of USDX for October 01, 2015

The USDX is still forming a higher high pattern on the daily chart, which is looking for an opportunity to trade higher. The resistance level of 96.38 is still strong, and as long as the index continues to move below that zone, we should expect some pullbacks towards the support zone of 95.83.

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On the H1 chart, the index did a breakout above the level of 96.15, and now its performing bullish consolidation to breakout the resistance zone of 96.30, towards the next area around the level of 96.46. The 200 SMA is still pointing to the upside and the MACD indicator looks overbought in this time frame.

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Daily chart's resistance levels: 96.38 / 96.91

Daily chart's support levels: 95.81 / 95.26

H1 chart's resistance levels: 96.30 / 96.46

H1 chart's support levels: 96.15 / 95.94

Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the US dollar index breaks out with a bullish candlestick; the resistance level is seen at 96.30, take profit is at 96.46, and stop loss is at 96.15

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Daily analysis of GBP/USD for October 01, 2015

On the daily chart, bears are still riding the current bias in GBP/USD, which is looking for an opportunity to find bottom around the level 1.5030 in the mid-term. That is why the bearish outlook is still valid, and the cable could start to form lower low patterns. The 200 SMA is slightly bearish.

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The short-term outlook remains favoring the downside, but we are watching for some breakouts lower, and this is an indicator that the GBP/USD pair could start moving towards higher levels in coming hours. But while it continues trading below the 200 SMA at the H1 chart, our outlook will stay intact.

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Daily chart's resistance levels: 1.5169 / 1.5256

Daily chart's support levels: 1.5030 / 1.4955

H1 chart's resistance levels: 1.5166 / 1.5223

H1 chart's support levels: 1.5103 / 1.5035

Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the GBP/USD pair breaks a bearish candlestick; the resistance level is seen at 1.5103, take profit is at 1.5035, and stop loss is at 1.5176.

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USD/CAD intraday technical levels and trading recommendations for September 30, 2015

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Overview:

Several months ago, when bulls pushed the price above the 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.

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. Higher lows were reached. Bullish pressure was applied to the resistance levels of 1.2450 and 1.2500 (previous tops).

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). However, bulls have bypassed this level two weeks ago.

A bearish corrective movement towards the level of 1.2750 (breakout level) should be expected as long as USD/CAD bears keep trading below the resistance zone of 1.3400-1.3450 (Fibonacci Expansion 141% level).

Moreover, bearish persistence below 1.3270 (Fibonacci Expansion 100%) is needed to expose the next support level around 1.3070, 1.2910 and 1.2750 where long-term buy entries can be considered.

Trading recommendations:

A counter-trend sell entry can be offered around the price levels of 1.3400-1.3450 (Fibonacci Expansion 141% levels). S/L should be placed above the level of 1.3480. T/P levels should be placed at 1.3300, 1.3220 and 1.3050.

On the other hand, 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 level.

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

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Intraday technical levels and trading recommendations for GBP/USD for September 30, 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 the GBP/USD pair with evident resistance.

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

However, recent weekly candlestick came as bearish engulfing one, closing below the level of 1.5450 (Head and Shoulders neckline).

It supports the bearish side of the market in the long term. For the reversal pattern, an approximate projection target should be located at the level of 1.5050.

In the short term, the nearest demand level to meet the GBP/USD pair is located around 1.5170 (recent weekly bottom and the origin of a previous bullish engulfing weekly candlestick).

Weekly persistence below the price zone of 1.5170 is mandatory to allow further bearish decline to occur. On the other hand, persistence above it hinders the current bearish momentum.

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Prominent supply/resistance around the level of 1.5770 (prominent 61.8% Fibonacci level) where the right shoulder of the depicted bearish reversal pattern is observed.

That is why, a valid sell entry was suggested for retesting at 1.5770 one month ago. All of its targets were successfully achieved.

Moreover, the previous bearish movement found its way towards the level of 1.5200 (prominent demand level), which prevented further bearish decline.

Instead of it, evident bullish rejection took place (bullish engulfing daily candlesticks) leading to the recent bullish pullback towards 1.5560, which provided the current extensive bearish rejection.

Price actions should be watched around the current levels near 1.5150 as it corresponds to the previous prominent weekly bottom.

A short-term buy entry can be offered if enough bullish rejection is expressed around these levels. It is apparently not happening this week.

On the other hand, daily fixation below 1.5150 allows a quick bearish movement to occur towards the price level of 1.4970 (Weekly Demand Level).

Trade Recommendation:

A valid sell entry was suggested around the zone of 1.5550-1.5580 (recent resistance zone). It is already running in profits.

T/P levels to be projected towards 1.5200 (achieved) and 1.5050 (yet to come), while S/L should be lowered to 1.5250 to secure our profits.

On the other hand, a low-risk buy entry can be offered around the weekly demand level at 1.4970. S/L should be placed below 1.4930.

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Intraday technical levels and trading recommendations for EUR/USD for September 30, 2015

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The pair moved lower after breaking below major demand levels around 1.2100 and 1.2000 where historical bottoms were previously established 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 in January 1997). Bullish recovery was observed shortly after.

April's candlestick came as bullish engulfing one. However, the next monthly candlesticks (May, June, July, and August) reflected the recent bearish rejection which exists around the price level of 1.1450.

In the long term, a projection target is still seen 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 can take place only if a monthly high of 1.1465 gets breached.

It can be achieved if the current monthly candlestick closes above a weekly high of 1.1465 by the end of the current month (low probability).

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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.

Continuous bullish pressure has been applied until significant bearish resistance was expressed around the levels of 1.1480 and 1.1700.

The market looked overbought as bulls were pushing the price further beyond the level of 1.1500 (daily supply level).

Hence, bearish movement took place towards the level of 1.1150 (61.8% Fibonacci level), which has been providing evident bullish rejections for two successive times (note the recent daily candlesticks).

As anticipated, the intraday supply zone of 1.1360-1.1400 provided significant bearish rejection. An intraday sell entry was suggested with T/P levels placed at 1.1150 (achieved) and 1.1050 (yet to come).

Daily persistence below the level of 1.1150 (61.8% Fibonacci level) is mandatory to expose the next demand level around 1.0980 where the daily uptrend comes to meet the pair.

Conservative traders should wait for more bearish pullback towards the zone of 1.0980-1.1000 (the depicted uptrend line) for a valid buy entry.

S/L should be placed below 1.0950. T/P levels should be placed at 1.1080 and 1.1160.

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