Daily analysis of SILVER for October 06, 2015

SILVERH4.png

Overview

The silver price shows some slight bullish bias in attempt to resume the bullish correctional trend, which gets a good boost after breaching 15.40 yesterday, besides the continuous support that comes from the EMA50. The metal managed to breach the 15.40 level. It confirms the suggested bullish correctional trend continuation in our last reports, which target 15.85 then 16.30 in the upcoming sessions. The EMA50 continues supporting the suggested bullish wave, being aware that breaking the 15.40 level might put the price under negative pressure and might bring a potential visit to the 14.85 level before any new attempt to resume the expected bullish bias.

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

Daily analysis of GBP/JPY for October 06, 2015

GBPJPYH4.png

Overview

GBP/JPY lost momentum ahead of the 180.36 low and turned to sideways trading. Initial bias is turned neutral this week. On the downside, a break of the 180.36 support will make the whole fall from 195.86 resume and will target a test of the 174.86 key support level. On the upside, above 184.41, resistance will extend sideways trading from 180.36 with another rise. In the longer term, the uptrend from the 116.83 long-term bottom could be topping. There is no confirmation yet, but even is case of another rise, strong resistance would be likely to be seen near at 61.8% retracement of 251.09 to 116.83 at 199.80.

Daily Pivots: (S1) 181.78; (P) 182.48; (R1) 183.12;

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

Intraday technical levels and trading recommendations for GBP/USD for October 6, 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 the GBP/USD pair with evident resistance.

The 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 candlesticks came as bearish engulfing candles, closing below the level of 1.5450 (neckline of the Head and Shoulders pattern).

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 (the current demand level) is mandatory to allow further bearish decline to occur.

On the other hand, persistence above it hinders the current bearish momentum giving time for more sideways consolidations.

gbpusddaily.png

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 candlestick existed around 1.5200-1.5170 (resulting in bullish engulfing daily candlesticks) leading to the recent bullish pullback towards 1.5600 (the backside of the depicted uptrend). It applied significant bearish pressure to the GBP/USD pair.

Price actions should be watched around the price zone of 1.5150-1.5200 as it corresponds to previous prominent weekly bottoms.

Note that daily fixation below 1.5150 indicates a quick bearish movement towards the price level of 1.4970 (weekly demand level).

Trading Recommendation:

A valid sell entry was suggested around the zone of 1.5550-1.5580 (recent resistance zone). It is already running in profits. 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 (1.4970) if the current bearish momentum persists towards it. S/L should be placed below 1.4930.

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

Intraday technical levels and trading recommendations for EUR/USD for October 6, 2015

eurmonth.png

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 the monthly high at 1.1465 gets breached.

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

eurusddaily.png

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 several times in a row (note the recent daily candlesticks during last week's consolidations).

On the other hand, 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 needed 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 correction towards the zone of 1.0980-1.1000 (the depicted uptrend line) for a low-risk 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

Technical analysis of Silver for October 06, 2015

Technical outlook and chart setups:

Silver has finally raised through and taken out initial resistance at $15.60. The metal reached a high of $15.70 and is expected to retrace lower. As depicted here, initial support begins at $15.05 along with the back side of resistance trend line, which acts as support now. It is hence recommended to remain long and look for an opportunity to add further on dips to $15.00 and $14.50/60. Immediate support is seen at $15.00 followed by $14.50, $14.00, and lower, while resistance is seen at $16.40/50, $17.40, and higher.

Trading recommendations:

Remain long with stop set at $14.00, a target is open.

Good luck!

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

Technical analysis of Gold for October 06, 2015

Technical outlook and chart setups:

Gold bounced off the trend-line support around $1,105.00 last week, as expected. The metal is trading around $1,138.00/40.00 now, looking for an opportunity to move higher. The yellow metal could retrace lower towards $1,118.00/20.00 before resuming its recent rally. Hence, remain long and look for an opportunity to add further around $1,120.00. Immediate support is seen at $1,105.00 followed by $1,100.00, $1,090.00, and lower respectively, while resistance is seen at $1,155.00 (interim) followed by $1,170.00 and higher respectively.

Trading recommendations:

Remain long and look for an opportunity to add around $1,180.00/20.00, stop is at $1,090.00, a target is open.

Good luck!

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

Technical analysis of AUD/USD for October 6, 2015

AUDUSDH4.png

Overview:

  • The AUD/USD pair is still moving between 0.7131 and 0.7046. The daily pivot point is set at the level of 0.7093. Also, the daily pivot point is expected to act as minor support today. We think that the trend is going to call for a bearish market below the level of 0.7093 in the H4 chart. Additionally, it should be noted that a range about 85 pips is expected today. Shortly after that, sell at the level of 0.7093 with the first target at 0.7046 in order to form a double bottom, it might resume to 0.7001 to test the weekly support 1 today. However, the stop loss should never exceed your maximum exposure amounts. The stop loss should be placed above the resistance level at 0.7163.

Observations:

  • The level of 0.7046 represents the double bottom and the daily pivot point is placed at 0.7093.
  • Resistance will be faced at the level of 0.7131 today.
  • The support has already been found at the level of 0.7001.
  • We expect a new range about 85 pips today. The key level is seen at 0.7170.
The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of EUR/JPY for October 06, 2015

Technical outlook and chart setups:

The EUR/JPY pair bounced off the fibonacci 0.50 levels at 132.25 earlier, which is the interim support now. The pair is trading around the levels of 135.00 levels now, looking for an opportunity to move above 137.00 at the sessions to come. It is hence recommended to remain long with risk at 132.00 at least. Immediate support is seen at 133.00 (interim) followed by 132.00/25 and lower, while resistance is seen at 137.00 (interim) followed by 139.00, 140.00, and higher respectively. Only a breakout below 132.00 should be of any concern for bulls.

Trading recommendations:

Remain long with stop at 132.00, a target is open.

Good luck!

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

Technical analysis of USD/CHF for October 6, 2015

USDCHFH1.png

Overview:

  • Today, the USD/CHF pair has risen sharply from the 0.9722 towards 0.9760. Now, the price is set at the level of 0.9751 to act as a daily pivot point. It should be noted that the volatility is very low for that the USD/CHF pair is expected to move between 0.9722 and 0.9805 in coming hours. In addition, the price has been set above strong support at the levels of 0.9722 and 0.9685, which coincide with the 61.8% and 50% of Fibonacci retracement in the H1 chart.
  • Thereupon, the pair has already found a strong support area at the levels of 0.9722 and 0.9685. Now it is making attempts to test it. Therefore, here is a possibility that the market is going to start showing bearish signs. Then, sell at 0.9805 with the first target at 0.89703 in the short term. In order to indicate a bullish opportunity above the spot of 0.9722 and 0.9685, it will be a good sign to buy above 0.9722 and 0.9685 with the first target at 0.9775. It is equally important that it will call for uptrend in order to continue bullish trend towards 0.9805.
  • On the other hand, it is also noteworthy that the price is likely to form strong resistance at at 0.9805. Accordingly, Amid the saturation around 0.9805, a rebound is likely to take place. Hence, there is a possibility that the market is going to start showing bearish signs. Then, sell at 0.9805 with the first target at 0.89703 in the short term.
The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of GBP/CHF for October 06, 2015

Technical outlook and chart setups:

The GBP/CHF pair had broken out a rising trend line earlier and bounced back from fibonacci 0.618 support at 1.4600. The pair has dropped below 1.4700, but still holds 1.4600. It is trading around the levels of 1.4800. According to the daily chart, bulls could remain in control until prices stay broadly above 1.4600. Hence recommendations are to remain long with risk just below 1.4600. A push through 1.5000 and 1.5100 subsequently would confirm further bullish scenario. Immediate support is seen at 1.4600 (interim) followed by 1.4500 and lower, while resistance is seen at 1.5000 and 1.5100 now.

Trading recommendations:

Remain long with stop set at 1.4590, a target is open.

Good luck!

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

Technical analysis of USD/JPY for October 06, 2015

USDJPYM30.png

USD/JPY is expected to trade with a bullish bias. The US stocks rose sharply on Monday as investors bet that low interest rates would stick around for longer. The S&P 500 gained 35.69 points, or 1.8%, to 1987.05. The Dow Jones Industrial Average rose 304.06 points, or 1.8%, to 16776.43, and the Nasdaq Composite advanced 73.49 points, or 1.6%, to 4781.26. Crude prices rose 1.6% to $46.26 in New York. And gold prices added 0.1% to $1,138.10 an ounce. The yield on the 10-year U.S. Treasury rose to 2.058% from 1.989% on Friday. Market US composite PMI was at 55 in Sept from 55.3 in Aug. The US services PMI was at 55.1 from 55.6. The US non-manufacturing ISM lowered to 56.9 in Sept from 59 in Aug. The US dollar remained unchanged, while USD/JPY was up 0.4% at 120.42. The pair is well supported by its rising 20-period intraday MA, which stays above its 50-period one. The intraday RSI is above 50 and is positively oriented. Further upside movement is therefore expected with the next horizontal resistance and overlap set at 120.65 at first. A break above this level would call for further advance towards 120.90.

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 120.65 and the second target at 120.95. In the alternative scenario, short positions are recommended with the first target at 119.80 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 119.45. The pivot point is at 120.

Resistance levels: 120.65 120.95 121.30

Support levels: 119.80 119.45 119.20

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

Technical analysis of USD/CHF for October 06, 2015

USDCHFM30.png

USD/CHF is expected to make further advance. Technically, the pair recovered its previous losses and gained its bullish dynamic. The intraday RSI indicator has confirmed the positive outlook, as it broke above a neutrality area of 50 with strong upward momentum. During upcoming hours, the pair is more likely to challenge its nearest resistance at 0.9720, representing the horizontal level and high, which was hit on October 2. Only an upside breakout of that level would open the way to 0.9795 and even to 0.9825.

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 0.9795 and the second target at 0.9825. In the alternative scenario, short positions are recommended with the first target at 0.9680 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 0.9635. The pivot point is at 0.9720.

Resistance levels: 0.9795 0.9825 0.9860

Support levels: 0.9680 0.9635 0.9580

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

Technical analysis of NZD/USD for October 06, 2015

NZDUSDM30.png

NZD/USD is expected to trade with a bullish bias. The pair remains in an up trend. It seems to be forming a "bullish flag" pattern on an intraday chart. Both the 20-period and 50-period MAs are well directed, which should confirm a positive outlook. Furthermore, a support base around 0.6445 is expected to hold any potential downside. To sum up, watch for a new rise to 0.6530 and 0.6560.

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 0.6530 and the second target at 0.6560. In the alternative scenario, short positions are recommended with the first target at 0.6410 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 0.6380. The pivot point is at 0.6445.

Resistance levels: 0.6530 0.6560 0.6585 Support levels: 0.6410 0.6380 0.6350

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

Technical analysis of GBP/JPY for October 06, 2015

GBPJPYM30.png

GBP/JPY is expected to continue its upside movement. The pair stands above the key horizontal support at 181.80 being well supported by both 20-period and 50-period intraday MAs. The intraday RSI is around its 50% neutrality area lacking downward momentum. Thus, even though a continuation of the consolidation cannot be ruled out, its extension should be limited. Further upside move is therefore expected with the next horizontal resistance and overlap set at 183.30 initially. A breakout above this level would call for further advance towards 183.85.

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 183.30 and the second target at 183.85. In the alternative scenario, short positions are recommended with the first target at 181.30 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 180.80. The pivot point is at 181.80.

Resistance levels: 183.30 183.85 184.25

Support levels: 181.30 180.80 180.30

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

EUR/NZD : analysis for October 06, 2015

EURNZDDaily.png06.png

EURNZDM30.png06.png

Overview:

Recently, EUR/NZD has been moving downwards. As we expected, the price tested the level of 1.7147. In the daily time frame, we can observe a breakout of our strong support at the level of 1.7260. The intraday trend is downward. On the M30 chart, we can observe an absorption volume from Friday's volume spike, which is a sign that buying looks very risky. I had placed Fibonacci expansion levels to find potential resistance (end of upward correction phase) and I got Fibonacci expansion 100% at the level of 1.7270 and Fibonacci expansion 161.8% at the level of 1.7340. Watch for potential selling opportunities after retracement. We may see a test at the level of 1.7010.

Fibonacci Pivot Points :

Resistance levels:

R1: 1.7370

R2: 1.7430

R3: 1.7535

Support levels:

S1: 1.7165

S2: 1.7100

S3: 1.7000

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

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

Gold analysis for October 06 , 2015

GOLDDaily.png06.png

GOLDM30.png06.png

Overview:

Since our last analysis, gold has been trading sideways around the price of $1,138.00. The intraday trend is neutral. In the daily time frame, we can observe testing of Fibonacci retracement 61.8% at the price of $1,136.70 and a neutral bar (indecision). In the M30 time frame, we can observe a massive volume spike (Friday news) and buying climax. After the volume spike, we created a small trading range between the prices of $1,141.00 (resistance) and $1,129.90. I placed Fibonacci retracement to find potential support levels and got Fibnacci retracement 38.2% at the price of $1,127.00, Fibonacci retracement 50% at the price of $1,123.00 and Fibonacci retracement 61.8% at the price of %1,118.50. A potential downward target is near the price of $1,110.00. Anyway, if the price breaks the level of $1,141.00 in a high volume, we may see possible testing of the level of $1,156.00.

Daily Fibonacci pivot points :

Resistance levels

R1: 1,141.00

R2: 1,143.15

R3: 1,146.60

Support levels:

S1: 1,133.90

S2: 1,131.75

S3: 1,128.25

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

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

USDX technical analysis for October 6, 2015

The US dollar index continues trading inside the big triangle pattern. I prefer to stay neutral and wait for a breakout before taking any actions. I still believe that eventually the index is going to break to the upside and confirm the start of a new upward move towards new highs.

usdx.jpg

Red line - resistance

Green line - support

The US dollar index is inside the Ichimoku cloud. It got rejected at the upper cloud boundary and this is a bearish sign. It means that we can see the index move towards the support green trend line and test it.

usdxd.jpg

Red line - resistance

Green line - support

The weekly chart remains unchanged. The trading range is getting narrower. The price holds above the cloud support. It keeps the hopes for bulls alive. It will be an important buy or sell signal if either trend line is broken. The bullish flag pattern implies that the upside breakout is more probable.

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

Gold technical analysis for October 6, 2015

Gold is trading sideways in what seems to be a bullish flag. I expect the gold price to move higher and break short- and medium-term resistances and finally make a move towards $1,200. The bigger triangle pattern remains valid and so we wait for a breakout.

goldh4.jpg

Green line - triangle pattern

The gold price has marginally reached the 38% retracement and is testing again the resistance at $1,140-42. Breaking above it will turn me bullish targeting $1,200. The price is above the cloud support and is testing the upper triangle boundary.

goldd.jpg

Black lines - triangle

The gold price remains above the tenkan-sen support and is still inside the triangle. A break above $1,150 and a weekly close above it will open the way towards the cloud resistance at $1,200. I remain bullish as long as this week closes are above the tenkan-sen.

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

Global macro overview for 06/10/2015

Global macro overview for 06/10/2015:

After the latest way worse-than-expected NFP job data published on Friday, the Fed's interest rate hike was moved from December 2015 to as early as March 1016. This is the main reason behind the longest winning streak in SP500 this year (5 days in a row).

From the technical point of view, the SPY index is still trading below the important golden trend line and below the green bullish zone as well. Only a valid breakout above the level of 204.07 will be considered a bullish sign.

spy.jpg

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

Global macro overview for 06/10/2015

Global macro overview for 06/10/2015:

The Reserve Bank of Australia decided to keep the interest rate at the same level this month (2%) in line with overall market consensus. Nevertheless, a sluggish outlook for the global economy and unstable financial markets conditions do not help much the Australian economy. The RBA inflation target level of 2-3% is still way above the current estimated inflation that is at 1,5%. Moreover, key commodity prices (iron ore, copper, crude oil) are much lower than a year ago as a result of oversupplied market, and this is another factor weighting on the RBA's decision.

The AUD/USD pair moved higher after the RBA's decision. Currently, it is trading just under the upper daily golden channel line. In case of any breakout, the next resistance is seen at the level of 0.7234 and support is seen at the level of 0.6906.

audusd_d1.jpg

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

Technical analysis of USD/CAD for October 6, 2015

General overview for 06/10/2015 08:20CET

Another internal bullish divergence occurred in the hourly time frame. Now, the whole structure looks more bullish. As long as the low of the wave (i) green at the level of 1.3010 is not violated there is still a possibility for another upward wave progression.

Support/Resistance:

1.3455 - Swing High

1.3310 - WR1

1.3229 - Weekly Pivot

1.3127 - Intraday Resistnace

1.3063 - Intraday Support

1.3010 - Technical Support

1.3000 - WS1

Trading recommendations:

Day traders should consider opening buy orders from current market levels with SL below the level of 1.3000 and TP at the level of 1.3229.

usdcad_h1.jpg

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

Technical analysis of EUR/JPY for October 6, 2015

General overview for 06/10/2015 08:00 CET

Wave c green to the upside had been completed as anticipated and the market reversed to the downside after a fake breakout. Now it is trading around the weekly pivot at the level of 134.41. However, the current wave structure looks like more complex and time-consuming pattern in progress. Wave X brown might be now developing. Any breakout below wave (b) blue low will invalidate this scenario.

Support/Resistnace:

133.15 - Wave (b) Blue Low

133.79 - WS1

134.41 - Weekly Pivot

134.56 - Intraday Support

135.43 - WR1

135.70 - Intraday Resistnace

Trading recommendations:

The buy orders were closed as an upward breakout turned out to be short-lived false breakout. Currently, sell orders are preferred for daytraders with SL above the level of 134.98 and TP at the level of 133.79.

eurjpy_h1.jpg

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

Daily analysis of major pairs for October 6, 2015

EUR/USD: The EUR/USD pair remained volatile being alternated with a short-term bullish and bearish swings. In spite of high volatility, the price has entered a consolidation phase, which would hold until a significant movement to the upside or to the downside takes place. This is what we call a breakout.

1.png

USD/CHF: The USD/CHF pair was also volatile on Monday, making some bullish attempt all the way. Although the price threatened some consolidation, the bias is still bullish; and unless there is a strong bullish breakout, there would not be a serious plunge here. It should be mentioned again that the outlook for the USD is upbeat.

2.png

GBP/USD: In the context of a downtrend, the cable moved a bit downwards on Monday. The Bearish Confirmation Pattern remains valid in the market, and it cannot be rendered ineffectual until the distribution territory at 1.5300 is overcome. Further bearish journey is expected today.

3.png

USD/JPY: Owing to the ongoing struggle between bulls and bears, this currency trading instrument has become quite choppy because there is not a strong directional movement yet. This week, the price would either break the supply level at 121.00 to the upside or break the demand level at 118.00 to the downside. This condition must be met before the consolidation phase is over in the market.

4.png

EUR/JPY: A bullish attempt that was seen on Monday was thwarted by a bearish correction that occurred later. Today would determine whether the direction would be bullish or bearish in the market. If the price fails to perform a directional movement, the market would enter an equilibrium phase.

5.png

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

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

2015-10-06-EURNZD-4H.png

Technical summary:

There was no time for even a minor correction yesterday, and we sow an expected decline closer to our first target at 1.6728. In the short term, we will be looking for a breakout below support at 1.7152 confirming the next part of the decline to a target at 1.6728.

Minor resistance is now found in the area of 1.7200 -1.7220, which will ideally protect the upside for a breakout below support at 1.7152.

Trading recommendation:

We missed our EUR selling point at 1.7580, but we will sell EUR at 1.7215 or upon a break below 1.7151 (one order done cancels the other). Our stop will be placed at 1.7285 and take profit will be placed at 1.6750.

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

Elliott wave analysis of EUR/JPY for October 6 - 2015

2015-10-06-EURJPY-4H.png

Technical summary:

Yesterday , a breakout above 135.10 indicated that wave 2 ended at 132.23 and wave 3 higher was already developing. If this count is correct, support at 133.48 must protect the downside for a strong rally higher to at least 141.00 and possibly even higher.

As wave (ii) of 3 was an expanded flat correction, we know that the likelihood of wave (iii) extending is very high. That means wave (iii) should be at least 161.8% times the length of wave (i).

In the short term, we will ideally see support at 134.28, but we must accept the possibility of a deeper corrective decline from 135.71. A breakout below 133.48 will invalidate the bullish count.

Trading recommendation:

We bought EUR at 135.10 and will place our stop at 133.45 expecting to raise it quickly. If you are not long EUR yet, buy EUR near 134.28 or upon a breakout above 135.71 using the same stop.

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

Technical analysis of EUR/USD for October 06, 2015

!_EURUSD.jpg

When the European market opens, economic news on the results of the Eurogroup's Meeting, ECOFIN Meeting, Retail PMI, and German Factory Orders m/m is due to be released. The US will publish data about the IBD/TIPP Economic Optimism and Trade Balance. So, amid the reports, EUR/USD will move with low to medium volatility during this day.

TODAY TECHNICAL LEVELS:

Breakout BUY Level: 1.1249.

Strong Resistance:1.1243.

Original Resistance: 1.1232.

Inner Sell Area: 1.1221.

Target Inner Area: 1.1195.

Inner Buy Area: 1.1169.

Original Support: 1.1148.

Strong Support: 1.1147.

Breakout SELL Level: 1.1141.

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 October 06, 2015

!_USDJPY.jpg

In Asia, Japan is not expected to release any economic data, but the US will deliver economic news on the IBD/TIPP Economic Optimism and Trade Balance. So, there is a strong probability that USD/JPY will move with low to medium volatility during this day.

TODAY TECHNICAL LEVELS:

Resistance. 3: 121.12.

Resistance. 2: 120.88.

Resistance. 1: 120.64.

Support. 1: 120.35.

Support. 2: 120.11.

Support. 3: 119.87.

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 advisory if you have any doubts.

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

Daily analysis of USDX for October 06, 2015

On the daily chart, the index remains trapped inside a bullish range established below the resistance level of 96.38, which is currently the sellers' area of interest where the USDX is facing strong bearish reaction. By the way, the support level of 95.83 is still a strong, and we are still following the overall bullish bias. The 200 SMA is slightly bullish.

USDXDaily.png

The USDX did some signification rebounds during Monday's session, as it has been performing a consolidation above the 200 SMA with a higher high pattern formation ongoing. The resistance level of 96.16 should be broken in coming hours for a rally towards the 96.30 level. The MACD indicator is still at the positive territory.

USDXH1.png

Daily chart's resistance levels: 96.38 / 96.91

Daily chart's support levels: 95.81 / 95.26

H1 chart's resistance levels: 96.15 / 96.30

H1 chart's support levels: 95.94 / 95.38

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 seen at 96.15, take profit is at 96.30, and stop loss is at 96.00.

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

Daily analysis of GBP/USD for October 06, 2015

GBP/USD performed a pullback around the resistance level of 1.5169 on the daily chart, and we should note this move could unleash the bearish force towards support zone of 1.5030. However, the pair has enough bearish momentum to continue doing towards new lows across the board in the mid-term. The MACD indicator is reaching the oversold territory.

GBPUSDDaily.png

On the H1 chart, GBP/USD found strong resistance in the zone around the 200 SMA. The next support located at the level of 1.5103 could be tested in order to perform a breakout and to reach new significant lows in an intraday basis. That is why we consider the current structure a trend-continuation one.

GBPUSDH1.png

Daily chart's resistance levels: 1.5169 / 1.5256

Daily chart's support levels: 1.5030 / 1.4955

H1 chart's resistance levels: 1.5223 / 1.5284

H1 chart's support levels: 1.5166 / 1.5103

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 at 1.5166, take profit is at 1.5103, and stop loss is at 1.5229.

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