GBP/USD intraday technical levels and trading recommendations for October 7, 2015

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Overview:

Recently, strong bullish pressure was applied to the resistance level of 1.5800 via the recent bullish swing.

That is why, the resistance level of 1.5800 was temporarily breached. Bulls moved towards 1.5900 where the depicted Head and Shoulders reversal pattern was confirmed.

Later on, the support level of 1.5555 got breached by the end of the previous month due to excessive bearish pressure, which originated at 1.5800.

The GBP/USD pair moved towards the support zone at 1.5170-1.5150 where a valid intraday buy entry was offered especially after the evident bullish rejection that took place Yesterday (bullish engulfing daily candlestick).

Conservative traders should wait for a bullish pullback towards the level of 1.5340 for a low-risk sell entry. S/L should be placed above 1.5400.

On the other hand, bearish persistence below the level of 1.5170 brings further bearish decline towards the level of 1.5100 initially and then 1.5050 (bearish Flag projection target).

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USD/CAD intraday technical levels and trading recommendations for October 7, 2015

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Overview:

A bullish breakout above the zone of 1.2770-1.2800 has been executed on July 15.

The long-term bullish target was projected towards the level of 1.3270 (100% Fibonacci Expansion). However, bulls have pushed beyond this level three weeks ago.

However, a bearish corrective movement towards the level of 1.2750 (breakout level) was expected since USD/CAD bears managed to defend the resistance zone of 1.3400-1.3450 (Fibonacci Expansion 141% level) and 1.3280 (Fibonacci Expansion 100%).

Moreover, bearish persistence below 1.3270 (Fibonacci Expansion 100%) and 1.3075 (recent bottom) is needed to maintain enough bearish pressure to expose the next support level around 1.2910, and 1.2750 where long-term buy entries should be considered.

Trading recommendations:

A good sell entry was suggested around the levels of 1.3400-1.3450 (Fibonacci Expansion 141% levels). S/L should be lowered to 1.3050 to secure our profits. T/P levels were placed at 1.3300,1.3220, and 1.3050 (all targets were achieved).

On the other hand, conservative traders should wait for further bearish pullback towards the recent breakout zone (1.2800-1.2750) for a valid buy entry as the breakout level acts as 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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Technical analysis of USD/JPY for October 07, 2015

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USD/JPY is expected to trade with a bearish bias below 120.35. Overnight, the US stocks were mixed. The Dow Jones Industrial Average gained 13.76, or 0.1%, to 16790.19. The S&P 500 lost 7.13, or 0.4%, to 1979.92, while the Nasdaq Composite declined 32.90, or 0.7%, to 4748.36. Crude-oil futures jumped more than 4% on signs of falling supply. Gold was 0.8% up to $1,146.80 a troy ounce. The yield on the 10-year Treasury eased to 2.033%. The US Trade Balance widened in August posting the largest rise in five months as imports picked up and weaker overseas growth limited sales to customers abroad. The gap increased 15.6% to $48.33B from a revised $41.81B in July. The euro rose against the US dollar trading around $1.1275 ahead of a speech of European Central Bank President Mario Draghi. The pair stands below its resistance at 120.35 and remains on the downside. The intraday RSI is below 50 but lacks downward momentum. Further downside is therefore expected with the next horizontal support and overlap set at 119.75 at first. A break below this level would call for further decline towards 119.45 in extension.

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 119.75. A breakout of that target will move the pair further downwards to 119.45. The pivot point stands at 120.35. 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 120.65 and the second target at 120.95.

Resistance levels: 120.65 120.95 121.30

Support levels: 119.75 119.45 119.20

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Technical analysis of USD/CHF for October 07, 2015

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USD/CHF is expected to trade with a barish bias as the pair is turning down. The pair has clearly reversed down after the failure of an upside breakout at 0.9725 (a major resistance level). Both the 20-period and 50-period MAs are also turning down confirming intraday trend reversal. Moreover, the RSI indicator is below its neutrality area of 50 and lacks upward momentum. As long as 0.9725 holds on the upside, further decline to 0.9640 and 0.9600 seems to be on the cards.

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 0.9640. A breakout of that target will move the pair further downwards to 0.960. The pivot point stands at 0.9725. 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 0.9765 and the second target at 0.9795.

Resistance levels: 0.9765 0.9795 0.9825

Support levels: 0.9640 0.96 0.9575

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Technical analysis of NZD/USD for October 07, 2015

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NZD/USD is expected to continue upside movement. From a technical view, the pair bounced off its key support at 0.6475 yesterday, and remains in a bullish trend. The upside room has been opened towards 0.6680, as the 20-period and 50-period MAs are heading upwards, and should also push the prices higher. Furthermore, the intraday RSI is at the buying area (above 50), but has not yet been "overbought" (above 70), which indicates that prices may still have potential to go up. Hence, as long as 0.6530 is not broken, the pair is likely to advance to 0.6660 and 0.6680.

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 0.6660 and the second target at 0.6680. In the alternative scenario, short positions are recommended with the first target at 0.6475 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 0.6445. The pivot point is at 0.6530.

Resistance levels: 0.6660 0.6680 0.6730 Support levels: 0.6475 0.6445 0.64

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Intraday technical levels and trading recommendations for GBP/USD for October 7, 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.

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.

IIn 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 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 which may extend towards price level of 1.5350.

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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 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 been watched around the price zone of 1.5150-1.5200 (previous prominent weekly bottoms). Bullish pressure is manifested on the chart as anticipated.

Note that daily fixation below 1.5150 is needed to allow a quick bearish movement to occur towards the price level of 1.4970 (weekly demand level).

On the other hand, price level of 1.5350 remains a significant SUPPLY level to be watched for valid Intraday sell entries.

Trading Recommendation:

A valid sell entry can be offered around price level of 1.5350 as it corresponds to a prominent previous bottom. SL should be placed above 1.5450.

On the other hand, a low-risk buy entry can be offered around the weekly demand level (1.4970) if bearish breakdown of 1.5150 occurs soon. S/L should be placed below 1.4930.

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Intraday technical levels and trading recommendations for EUR/USD for October 7, 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 of 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 level of 1.1450.

In the long term, a projected 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).

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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 took place until significant bearish resistance was faced 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, a bearish movement towards the level of 1.1150 (61.8% Fibonacci level) took place, which provided 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 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.

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Technical analysis of GBP/JPY for October 07, 2015

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GBP/JPY is expected to trade with a bullish bias above 182.75. The pair is trading above its rising 20-period and 50-period MAs, which should act as support now. Furthermore, the intraday RSI advocates for further upside room. In addition, a support base was formed around 182.75, which should limit the downside potential. As long as 182.75 remains on the downside, the pair is likely to challenge its previous high at 184.45 in coming sessions.

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 184.45 and the second target at 184.85. In the alternative scenario, short positions are recommended with the first target at 182 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 181.30. The pivot point is at 182.75.

Resistance levels: 184.45 184.85 185.35

Support levels: 182 181.30 180.80

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Technical analysis of USD/CAD for October 7, 2015

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Overview:

  • As expected, the USD/CAD pair rebounded at the level of 1.3145 and showed signs of strength following the level of 1.3145. Additionally, the support has been broken and turned into resistance at the same key level (1.3145). Equally important, the price has been set below the resistances of 1.3145 and 1.3073 since yesterday. Consequently, the pair has already formed strong resistances at the levels of 1.3145 and 1.3073. Furthermore, the price has been still trading between 1.3073 and 1.2950. Therefore, the USD/CAD pair started showing the signs of a bearish market, so the market indicates the bearish opportunity at the level of 1.3073 with the first target of 1.3000 and continues moving towards the level of 1.2951 in order to form a double bottom again. On the other hand, a stop loss should be always taken into account so it will be sensible to set your stop loss at the 1.3166 price.
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Technical analysis of NZD/USD for October 7, 2015

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Trading recommendations:

  • The resistance of the NZD/USD pair is going to be at the level of 0.6707. The level of 0.6707 is coinciding with the ratio of 100% Fibonacci retracement levels. Consequently, the descending movement will probably be lower than the double bottom (0.6707 level) with targets at 0.6600. If the trend breaks this minor support at the level of 0.6600, the market will head towards further decline to 0.6527 today in order to indicate a correctional movement at this level. Meanwhile, the daily chart represents a strong support at 0.6527 (61.8% of Fibonacci retracement levels). Moreover, it will be very profitable to buy above this level for retesting it in the short term. Therefore, buy deals are recommended above the 0.6527 level with targets at 0.6651 and 0.6704 to reach the double top. Furthermore, the NZD/USD pair will be traded between the levels of 0.6527 and 0.6707.
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Global macro overview for 07/10/2015

Global macro overview for 07/10/2015:

The crude oil inventories data reales is scheduled for today. The market expects a positive number of +2000k barrels, which is lower than last week' figure of +3955k, but is still a solid number of stockpiles. Nevertheless, the crude market is still oversupplied, despite OPEC countries are trying to decrease the production.

From the technical point of view, the market has broken above the golden trend-line dynamic resistance. It is currently trading at the important technical resistance at the level of 49.31. Please notice that the round number of 50 might put a cap on any further rally.

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Global macro overview for 07/10/2015

Global macro overview for 07/10/2015:

It has been almost a year since the BoJ last stimulus had shocked the markets. Since then, the Prime Minister Shinzo Abe's brave goal of 2% inflation target remains elusive. In today's monetary policy statement, the BoJ has stated that it will conduct money market operations so that the monetary base will increase at an annual pace of about 80 trillion yen. Moreover, the BoJ will purchase Japanese government Bonds (JGBs), exchange-traded funds (ETFs) and Japan real estate investment trusts (J-REITs). Further in the statement, the BoJ said Japan's economy is expected to continue recovering moderately mainly due to a slowdown in emerging markets growth. The Bank of Japan will continue with qualitative monetary easing (QQE), aiming to achieve the price stability target of 2% ,as long as it is necessary for maintaining that target in a stable manner.

The daily technical outlook for USD/JPY hasn't changed much. After the initial decline on last Friday, the market rallied back to the range and is currently trading in the middle of the range. The most important support is seen at the level of 118.60 and resistance at the level of 121.23.

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EUR/NZD : analysis for October 07, 2015

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Overview:

Recently, EUR/NZD has been moving downwards. As we expected, the price tested the level of 1.6943. 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 weakness near the level of 1.7025. I had placed Fibonacci retracement to find potential mid- term support levels. I got Fibonacci retracement 38.2% at the level of 1.6860, Fibonacci retracement 50% at 1.6280, and Fibonacci retracement 61.8% at 1.5740. Watch for potential selling opportunities after retracement.

Fibonacci Pivot Points :

Resistance levels:

R1: 1.7300

R2: 1.7340

R3: 1.7410

Support levels:

S1: 1.7170

S2: 1.7130

S3: 1.7065

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

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Gold : analysis for October 07 , 2015

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Overview:

Since our last analysis, gold has been trading upwards. The price tested the level of $1,152.82. The intraday trend is neutral. In the daily time frame, I found a trading range between $1,170.00 (resitance) and $1,098.50 (support). In the H1 time frame, we can observe weakness around the level of $1,152.00. A potential downward target is at $1,110.00. I am waiting for a clear breakout of the trading range in a high volume to confirm further short and mid-term direction. Anyway, intraday selling opportunities are preferable. The level of $1,142.00 is first support.

Daily Fibonacci pivot points :

Resistance levels

R1: 1,149.60

R2: 1,152.85

R3: 1,158.10

Support levels:

S1: 1,139.15

S2: 1,135.90

S3: 1,130.65

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 EUR/JPY for October 7, 2015

General overview for 07/10/02015 10:20 CET

The current wave development does not look too much impulsive to start the wave (iii) green to the upside. The market is still trading above the weekly pivot point, but it is not strong enough to breakout above the resistance levels of 135.97 - 126.12 . This kind of horizontal price action might suggest more complex and time-consuming cycle to come.

Support/Resistnace:

135.97 - 136.12 - Technical Resistnace

135.71 - Intraday Resistnace

135.43 - WR1

134.41 - Weekly Pivot

134.36 - Intraday Support

Trading recommendations:

Daytraders should refrain from trading until more clear pattern occurs.

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Technical analysis of USD/CAD for October 7, 2015

General overview for 07/10/02015 10:00 CET

The largest time frame Elliott wave count still suggests that one more wave to the upside might be formed when the wave 4 purple corrective cycle is completed. The H4 time frame count indicates a large abc green irregular triangle pattern as wave 4 purple correction with potential reversal zone between the levels of 1.2914 and 1.2870. Please notice that there is a golden trend-line support in this zone and 38%Fibo retracement at the level of 1.2866.

Support/Resistnace:

1.2861 - 1.2946 - Previous Wave 4 Area

1.2914 - 1.2870 - Potential Reversal Zone

1.3054 - 2009 High

1.2866- 38%Fibo

Trading recommendations:

Swingtraders should start to accumulate the positions from the zone between the levels of 1.2861 and 1.2946 with SL just below the level of 1.2850 in the long term TP open for now.

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USDX technical analysis for October 7, 2015

The US dollar index is strengthening today as the price is very close to the support area around 95, but it is expected to trade inside the longer-term triangle pattern. The US dollar index is mainly moving sideways during the last month. I expect a breakout to take place soon.

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Red line - resistance

Green line- support

The US dollar index is trading inside the Ichimoku cloud in the 4-hour chart. The price is also inside the short-term triangle pattern. Support is seen at 95 and resistance is expected at 96.60. A breakout at any level will give a new trend.

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Red line - resistance

Green line - support

The weekly chart remains above the weekly Ichimoku cloud, but still inside the bullish flag pattern. The price remains trapped between the weekly kijun- and tenkan-sen indicators. This confirms the neutrality of the trend. Waiting for a breakout before opening a position is my preferred strategy.

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Daily analysis of major pairs for October 7, 2015

EUR/USD: The pair is currently performing a bullish breakout on the chart, leading to a bullish bias. However, the bullish bias is not yet completely safe because the resistance line at 1.1300 is calling for a breakout to the upside. Considering both the direction of a price action and indicators in the chart, the market seems poised to achieve this important feat.

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USD/CHF: There was a large bearish movement yesterday, giving the way for a brand-new bearish outlook. The EMA 11 is now below the EMA 56 (while the price is below the two EMAs) and the Williams % Range period 20 is at the oversold territory. There is a Bearish Confirmation Pattern in the market and further movement to the south could be witnessed.

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GBP/USD: This market started a determined bullish movement yesterday although the market has not moved upwards so much. The medium-term bias is bearish, and this could be rendered useless only when the price goes above the distribution territory at 1.5300. Until that happens, long positions should be opened with caution.

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

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EUR/JPY: There is now a 'buy' signal on the chart. The price, which tested the level of 135.50, retested it. It even broke the level to the upside. Based on the current price action, this could be the beginning of a considerable bullish journey, which could last for the rest of this week.

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Gold technical analysis for October 7, 2015

Gold price broke the triangle pattern providing us with a buy signal. Gold price might pull back today in order to test the breakout area, but an overall trend remains bullish with increased chances for a push higher towards $1,200.

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Red line - resistance

Gold price found short-term resistance at the downward sloping trend line at $1,152. It has broken out of the Ichimoku cloud and is moving towards higher highs and higher lows. We could see a pullback towards $1,130, but I would remain bullish.

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Black lines - triangle pattern

Gold price is breaking above the long-term triangle pattern testing the kijun-sen resistance indicator. A break above $1,156 will give a new bullish signal that could bring the Gold price towards $1,200 where the cloud is found. I would remain bullish as long as we trade above last week's low at $1,104.

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Elliott wave analysis of EUR/NZD for October 7, 2015

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Technical summary:

The pair moved lower as expected, but the minor corrections that develops is a bit larger than we normally see. Not that they are much larger, but the correction tends to be smaller. That said, nothing has changed and we continue to watch for a decline towards 1.6781 as the first real downside target.

In the short term, we will ideally see minor resistance at 1.7193 protecting the upside for the next part of a decline to 1.6913 and then to 1.6793.

Trading recommendation:

Sell EUR here or close to 1.7193 for the next part of the decline. Stop should be placed at 1.7335, and take profit is seen at 1.6790.

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Elliott wave analysis of EUR/JPY for October 7, 2015

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Technical summary:

It should be just a matter of time before resistance at 135.71 gets broken, which confirms a continuation higher towards 138.00 as the next minor upside target. Looking at a larger picture, a break above 135.71 and more importantly above 138.00 will confirm the rally to 141.00.

To preserve a bullish outlook, support at 134.40 will ideally protect the downside, but only an unexpected breakout below support at 133.44 will invalidate the bullish outlook.

Trading recommendation:

We are long EUR from 135.10 with stop placed at 133.45. If you are not long EUR yet, buy near 134.40 or upon a break above 135.71 and use the same stop at 133.45.

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Technical analysis of EUR/USD for October 07, 2015

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When the European market opens, economic news on the German 10-y Bond Auction, French Trade Balance, and German Industrial Production m/m is due to be released.The US will unveil data on the Consumer Credit m/m, 10-y Bond Auction, and Crude Oil Inventories. So amid the reports, EUR/USD will move with low to medium volatility during this day.

TODAY TECHNICAL LEVELS:

Breakout BUY Level: 1.1322.

Strong Resistance:1.1316.

Original Resistance: 1.1305.

Inner Sell Area: 1.1294.

Target Inner Area: 1.1268.

Inner Buy Area: 1.1242.

Original Support: 1.1231.

Strong Support: 1.1220.

Breakout SELL Level: 1.1214.

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 07, 2015

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In Asia, Japan will release data on the results of the BOJ Press Conference, Leading Indicators, and Monetary Policy Statement. The US will publish economic data about the Consumer Credit m/m, 10-y Bond Auction, and Crude Oil Inventories. So, there is a strong probability that USD/JPY will move with low to medium volatility during this day.

TODAY TECHNICAL LEVELS:

Resistance. 3: 120.92.

Resistance. 2: 120.68.

Resistance. 1: 120.44.

Support. 1: 120.14.

Support. 2: 119.90.

Support. 3: 119.68.

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 07, 2015

The USDX is trying to perform a pullback towards the support zone of 95.26, where a rebound should be expected on the daily chart. This scenario could unfold in the near term as the index remains trapped above the 200 SMA in this time frame. However, a breakout below the level of 95.26 will expose the zone of 94.36.

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On the H1 chart, we should note a strong pullback from the resistance level of 96.15, where is the zone of 200 SMA, and now the index could test the support zone of 95.38. If the USDX does a breakout below that territory, it will fall to the level of 95.03. The 200 SMA is pointing to the downside, and the MACD indicator is entering the negative territory.

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Daily chart's resistance levels: 95.83 / 96.38

Daily chart's support levels: 95.26 / 94.36

H1 chart's resistance levels: 95.94 / 96.15

H1 chart's support levels: 95.38 / 95.03

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 95.94, take profit is at 96.15, and stop loss is at 95.73.

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Daily analysis of GBP/USD for October 07, 2015

On the daily chart, GBP/USD has been extending a rebound towards the resistance level of 1.5256. The cable is forming a lower low pattern and the current moves should be a preparation for a further decline.

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The short-term outlook indicates recovery from after a fall held below the suport zone of 1.5166, and now GBP/USD is forming a higher high pattern above the 200 SMA in the H1 chart, in order to perform a rally towards the resistance level of 1.5285. However, we are still expecting an inminent breakout below the zone of 1.5223.

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Daily chart's resistance levels: 1.5256 / 1.5325

Daily chart's support levels: 1.5169 / 1.5030

H1 chart's resistance levels: 1.5285 / 1.5342

H1 chart's support levels: 1.5223 / 1.5166

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 1.5223, take profit is at 1.5166, and stop loss is at 1.5276.

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

GBP/USD intraday technical levels and trading recommendations for October 6, 2015

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Overview:

Recently, strong bullish pressure was applied to the resistance level of 1.5800 via the recent bullish swing.

That is why, the resistance level of 1.5800 was temporarily breached. Bulls moved towards 1.5900 where the depicted Head and Shoulders reversal pattern was confirmed.

Later on, the support level of 1.5555 got breached by the end of the previous month due to excessive bearish pressure, which originated at 1.5800.

The GBP/USD pair moved towards the support zone at 1.5170-1.5150 where a valid intraday buy entry can be offered if enough bullish rejection is maintained until the end of the day.

Conservative traders should wait for a bullish pullback towards the level of 1.5340 for a low-risk SELL entry.

On the other hand, bearish persistence below the level of 1.5170 brings further bearish decline towards the level of 1.5100 initially and then 1.5050 (bearish Flag projection target).

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

USD/CAD intraday technical levels and trading recommendations for October 6, 2015

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Overview:

A bullish breakout above the zone of 1.2770-1.2800 has been executed on July 15.

The long-term bullish target was projected towards the level of 1.3270 (100% Fibonacci Expansion). However, bulls have pushed beyond this level three weeks ago.

However, a bearish corrective movement towards the level of 1.2750 (breakout level) was expected since USD/CAD bears managed to defend the resistance zone of 1.3400-1.3450 (Fibonacci Expansion 141% level) and 1.3280 (Fibonacci Expansion 100%).

Moreover, bearish persistence below 1.3270 (Fibonacci Expansion 100%) and 1.3075 (recent bottom) is needed to maintain enough bearish pressure to expose the next support level around 1.2910, and 1.2750 where long-term buy entries should be considered.

Trading recommendations:

A counter-trend sell entry was suggested around the levels of 1.3400-1.3450 (Fibonacci Expansion 141% levels). S/L should be lowered to 1.3200 to secure some profits. T/P levels were placed at 1.3300,1.3220 (both were reached) and 1.3050 (yet to come).

On the other hand, conservative traders should wait for further 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.

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