Technical analysis of USD/JPY for October 13, 2015

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USD/JPY is expected to trade in a lower range as the pair is under pressure. US indices closed higher on Monday led by shares in the utilities, healthcare equipment and services, and retailing sectors. Trading was quiet due to the Columbus Day holiday with 5.1 billion shares, which are the lowest volume since June 12. The DJIA rose 47.37 to 17,131.86, the S&P gained 2.57 to 2,017.46, and the Nasdaq added 8.17 to 4,838.64. US crude oil futures lost 5.1% to settle at $47.10 a barrel, while gold rose 0.66% to $1,163.77 a troy ounce. The US bond market was closed. There was no major economic data released. The dollar edged lower against other currencies on Monday, as some investors discounted the possibility that the Federal Reserve will raise interest rates in coming months.The pair has reversed down and remained under pressure below its key resistance at 120.10. The descending 50-period MA maintains a bearish bias, and it is currently playing a resistance role. Meanwhile, the intraday RSI lacks upward momentum. The first target to the downside is therefore set at the horizontal support and overlaps at 119.45. A break below this level would open the way to further weakness towards 119.20 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 119.45. A breakout of that target will move the pair further downwards to 119.20. The pivot point stands at 120.10. 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 120.35 and the second target at 120.65.

Resistance levels:120.35 120.65 120.90

Support levels: 119.45 119.20 118.75

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Technical analysis of USD/CHF for October 13, 2015

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USD/CHF is expected to trade in a lower range as the pair is under pressure. According to the chart, the pair remains in consolidation below its major resistance at 0.9650. The process of lower highs and lows formation remains intact. It should confirm a bearish trend on an intraday basis. Besides, the RSI is mixed to bearish. Hence, as long as the mark of 0.9650 is resistance, there is a likely decline to 0.9550 and 0.9520 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 0.9550. A breakout of that target will move the pair further downwards to 0.9520. The pivot point stands at 0.9650. 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 0.9690 and the second target at 0.9730.

Resistance levels: 0.9690 0.9730 0.9765

Support levels: 0.9550 0.9520 0.9475

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Technical analysis of NZD/USD for October 13, 2015

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NZD/USD is expected to trade with bearish bias as the key resistance is at 10.6740. Following the second test last night, the pair failed to break above its key resistance at 0.6780 once again, and is slightly turning down now. The intraday trend is shifting on the downside as the 20-period SMA reversed down, and also crossed below the 50-period one. Moreover, the intraday RSI indicator is negative below its neutrality area at 50. In this case, as long as 0.6740 holds on the upside, the pair is expected to post a new pullback towards 0.6580 and 0.6550 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 0.6580. A breakout of that target will move the pair further downwards to 0.6550. The pivot point stands at 0.6740. 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 0.6775 and the second target at 0.6810.

Resistance levels: 0.6775 0.6810 0.6865 Support levels: 0. 6580 0.6550 0.6515 0.6475

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Technical analysis of GBP/JPY for October 13, 2015

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GBP/JPY is under pressure. The pair has reversed down and remains under pressure below its key resistance at 183.40. The descending 50-period MA maintains a bearish bias, and is currently playing a resistance role. Meanwhile, the intraday RSI lacks upward momentum. The first target to the downside is therefore set at the horizontal support and overlap at 183.40. A break below this level would open the way to further weakness towards 181.50 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 181.50. A breakout of that target will move the pair further downwards to 181.10. The pivot point stands at 183.40. 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 183.90 and the second target at 184.30.

Resistance levels: 183.90 184.30 184.85

Support levels: 181.50 181.10 180.50

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Technical analysis of Silver for October 13, 2015

Technical outlook and chart setups:

Silver has dropped to the $15.40 levels today before pulling back higher again to the $15.90 levels. The metal needs to drop below the $15.40 levels to confirm further downside towards the $15.00/10 levels. On the other hand, if the mark of $15.40 holds, the metal should be heading higher from current levels. It is hence recommended to remain long for now and look to buy more around the $15.00 levels with risk at the $14.40 levels. Immediate support is seen at the $15.40 levels (interim) followed by $15.00/10, $14.40, $14.00 and lower, while resistance is seen at the $16.40/50 levels followed by $17.50/60 and higher.

Trading recommendations:

Remain long for now, stop is at $14.40, target is open.

Good luck!

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Technical analysis of Gold for October 13, 2015

Technical outlook and chart setups:

Gold has begun retracing for now before pushing through fresh high at the $1,192.00 levels. The metal is trading around the $1,158.00 levels for now and could be forming a base at the $1,125.00/30.00 levels, which is Fibonacci 0.618 support of the rally between $1,104.00 and $1,169.00. The metal remains a candidate to be bought at lower levels, and hence it is recommended to remain long and look to add further. Immediate support is seen at the $1,140.00 levels followed by $1,130.00, $1,100.00 and lower, while resistance is seen at the $1,170.00 levels and higher.

Trading recommendations:

Remain long for now, stop is at $1,100.00, target is open.

Good luck!

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Technical analysis of EUR/JPY for October 13, 2015

Technical outlook and chart setups:

The EUR/JPY pair is preparing to drop lower towards at least the 135.00/50 levels before turning bullish again. The pair could also drop to the Elliot channel support as depicted here, passing below the 135.00 levels for now. It is hence recommended to remain flat for now and look to buy lower. Immediate support is seen at the 135.50/60 levels (Fibonacci 0.382) followed by 135.00/10, 133.00 and lower, while resistance is seen at the 137.00 levels (interim) followed by 138.00/139.00 and higher. The pair is expected to remain in control of bulls until prices stay above the 133.00 levels broadly.

Trading recommendations:

Remain flat for now.

Good luck!

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Technical analysis of GBP/CHF for October 13, 2015

Technical outlook and chart setups:

The GBP/CHF pair is looking to drop below the 1.4600 levels now. As depicted here, the pair could extend towards 1.4300 and lower. Please note that Fibonacci 0.618 support is seen at the 1.4400 levels and a bullish bounce could be expected there as well. It is hence recommended to exit long positions for now and remain flat; aggressive trades could go short below 1.4600. Immediate support is seen at the 1.4400 levels followed by 1.4300, 1.4200 and lower, while resistance is seen at the 1.4900 levels followed by 1.4950, 1.5100 and higher.

Trading recommendations:

Remain flat for now.

Good luck!

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Technical analysis of USD/CHF for October 13, 2015

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Trading recommendations:

  • According to previous events, the USD/CHF pair has still been moving between the levels of 0.9550 and 0.9619 in the short term. Currently, the price is at the price of 0.9595. On the H1 chart, a strong resistance will be formed at the level of 0.9633 providing a clear signal for sell deals with the target seen at the price of 0.9550. However, the stop-loss is to be placed above the 0.9712 price. On the other hand, the support has been already placed at the price of 0.9550. (50% Fibonacci retracement levels). Therefore, the strong support will be formed at the level of 0.9550 providing a clear signal for buy deals with the target seen at the 0.9620 level.

Observations:

  • We expect a range of 69 pips (0.9550 - 0.9619) today.
  • The key level is at the daily pivot point (0.9619).
  • Stop loss should never exceed your maximum exposure amounts.
  • As a rule, the market is highly volatile if the previous day has huge volatility.
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Technical analysis of AUD/USD for October 13, 2015

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Overview:

  • The AUD/USD pair fell from the level of 0.7375, and it has been extended further to as low as 0.7300 right now. So, new resistance is placed at the levels of 0.7375. Furthermore, the price is below the double top (100% of Fibonacci retracement levels) on the four-hour chart. Additionally, the price has formed strong resistance at the 0.7438 level. Moreover, this strong level has still been moving between 100% of Fibonacci retracement levels and 61.8% on the daily chart. As it is known, history usually repeats itself at a certain level. Consequently, it will be reasonable to use historic rates to determine future prices, hence it is probably that the market will show the bearish signs again in order to indicate a bearish opportunity at the level of 0.7375/0.7325 with targets towards the strongest support around the 0.7233 level. Equally important, the market will form a range between two important levels 0.7375 and 0.7233, thus the range will be around 57 pips today.
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EUR/NZD analysis for October 13, 2015

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Overview:

Recently, EUR/NZD has been moving sideways around the price of 1.6980. In the daily time frame, we can observe a supply bar in a volume below the average. I found the 5-day support level at 1.6845 (Fibonacci retracement 38.2%). Selling opportunities are preferable. On the H1 chart, we can observe a potential reversed head and shoulders formation. If the price breaks the level of 1.7000, it will confirm our HS formation. Selling opportunities are preferable only if the price breaks our strong support in a high volume. Otherwise, we may see an upward movement. I placed Fibonacci retracement to find potential mid-term support levels and got Fibonacci retracement 38.2% at the level of 1.6860 (on the test), Fibonacci retracement 50% at 1.6280, and Fibonacci retracement 61.8% at 1.5740.

Fibonacci Pivot Points :

Resistance levels:

R1: 1.7000

R2: 1.7035

R3: 1.7100

Support levels:

S1: 1.6870

S2: 1.6830

S3: 1.6765

Trading recommendations: Be careful when buying and watch for potential selling opportunities if the price breaks the level of 1.6845 in a high volume.

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Gold: analysis for October 13, 2015

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Overview:

Since our last analysis, gold has been trading upwards. As we expected, the price tested the level of $1,152.85. An intraday trend is downward. 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 supply (downward channel) in a high volume. I am waiting for a clear breakout of the trading range in a high volume to confirm further short and mid-term direction. Anyway, the trend is still upward. The level of $1,170.00 successfully held and that is the reason why Gold entered a bearish corrective phase. The first support level is seen at $1,153.00-$1,144.00.

Daily Fibonacci pivot points :

Resistance levels

R1: 1,166.20

R2: 1,169.30

R3: 1,173.45

Support levels:

S1: 1,158.40

S2: 1,155.80

S3: 1,151.65

Trading recommendations: Be careful when selling gold at this stage and watch for potential buying opportunities on dips. Strong resistance is seen around the level of $1,170.00.

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Global macro overview for 13/10/2015

Global macro overview for 13/10/2015:

The German ZEW index release revealed very weak sentiment towards the current and further economic situation in the euro area. Market participants expected a slight decrease to 6.8 this month from the level of 12.1 last month. Moreover, the current situation index came out lower than expected as well ( 55.2 vs. 64.0), confirming even more negative outlook for the nearest future.

The EUR/USD pair did not react much to the bad news. It is still trading in the middle of a range between the resistance 1.1459 and support at 1.1318.

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Global macro overview for 13/10/2015

Global macro overview for 13/10/2015:

Today's report on the UK consumer price index has taken the market by surprise. The inflation had been expected to stay at the same level of 0.2% m/m, but unveiled data on a -0.1% m/m fall in consumer prices changed the overall picture dramatically. This is the first in 5 months negative reading for the index, but the majority of other inflation indicators came out in line with expectations. Nevertheless, despite the strong performance of the UK economy, the recent wage growth, and negative inflation data, any rate hikes by BoE is still out of the table.

The technical picture of GBP/USD pair looks weak as the 50% Fibonacci level had been rejected. The next support is seen at the level of 1.5230.

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USDX technical analysis for October 13, 2015

The US dollar index tried to make a bounce off the 78.6% Fibonacci retracement but came back down to reach a new lower low. A trend remains bearish after breaking below the triangle pattern, which we mentioned in our previous analysis.

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Green line - support (broken)

Red line - resistance

The US dollar index is trading below the Ichimoku cloud and short-term resistance levels by the kijun-sen (yellow line indicator). The price is moving towards lower lows and lower highs confirming the bearish trend. Resistance is now seen at 94.90. If it gets broken, we should expect a bounce towards 95.60.

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Red line - weekly resistance

Green line - weekly support

The US dollar index weekly candle is entering the zone of the weekly Ichimoku cloud. This is not a good sign for the longer-term trend. Important support is found at 92, and important resistance is seen at 97. The bullish flag pattern remains intact. Longer-term traders should remain neutral and wait for a breakout before opening new position.

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Gold technical analysis for October 13, 2015

Gold price is making a pullback after the recent rally to $1,169. This pullback is considered to be normal to back test the area of $1,150. Bulls have nothing to worry about. A trend remains bullish, and we still expect the price to reach $1,200.

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Red line - resistance TL (broken)

The price is above the Ichimoku cloud in the 4-hour chart and above the broken trend-line resistance. It is also above the kijun-sen support (yellow indicator) although we have touched it earlier today. The trend remains bullish in the short term. Next support is found at $1,140.

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Black lines - triangle pattern

Gold price remains above and the triangle pattern trading around the weekly kijun-sen. I believe the week will close above this level. Over the next couple of weeks gold price is likely to move towards $1,200. I would remain bullish.

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Daily analysis of major pairs for October 13, 2015

EUR/USD: This pair traded sideways on Monday, in the context of an uptrend. The pair is very likely to (plus certain other EUR pairs) rally this week, and therefore, further northwards journey is anticipated. The first bullish target is seen at the resistance level of 1.1450.

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USD/CHF: There is still a Bearish Confirmation Pattern on the USD/CHF chart. Therefore any rallies that are seen here could be interpreted as short-selling opportunities. The support level of 0.9600 was tested yesterday, but was not breached to the downside. The support level could be breached this week as the price targets another support level at 0.9550.

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GBP/USD: The cable is trying to make further bullish efforts. The price is now moving above the accumulation territory at 1.5350, going towards the distribution territory of 1.5400. Distribution territories of 1.5500 and 1.5550 act as ultimate targets this week, since the outlook for GBP pairs is bullish.

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USD/JPY: This market remains in an equilibrium phase, trapping below the supply level of 121.00. It failed to move below the demand level of 119.00. There must be a journey above the supply level or below the demand level before it can be said that the equilibrium phase is over (which is something that will happen this week or next week).

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EUR/JPY: The EUR/JPY pair was corrected lower on Monday, though the bullish outlook is valid. The validity of the bullish outlook will hold as long as the demand zone at 135.00 is not broken to the downside. The demand zone, including the one at 135.50, could act as barriers to bearish attempts.

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Technical analysis of EUR/JPY for October 13, 2015

General overview for 13/10/2015 09:10 CET

The count has been little changed to incorporate the recent wave development in corrective wave iv blue. Instead of anticipated triangle pattern, the corrective cycle looks more like an abc purple irregular flat correction. Currently, the market is trying to rally upward in the last sup-wave of the wave (iii) green. The projected target is seen in the area of 137.20.

Support/Resistnace:

135.70 - Invalidation Level

135.98 - Intraday Support

136.11 - Weekly Pivot

136.95 - Intraday Resistance

Trading recommendations:

Yesterday's buy orders should be still in play and the SL should be moved higher to the level of 135.98. The projected target for TP is at the level of 137.20 (minimum target).

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Technical analysis of USD/CAD for October 13, 2015

General overview for 13/10/2015 09:00 CET

As we had anticipated, the market rebounded higher after completing the wave (c) blue and performing the overall corrective structure in wave 4 purple. Currently, the market is trading below the key resistance at 1.3070/ Any breakout higher will open the road to the level of 1.3130.

Support/Resistance:

1.2900 - Technical Support

1.2990 - Intraday Support

1.2996 - Weekly Pivot

1.3070 - Intraday Resistance

1.3092 - WR1

Trading recommendations:

Yesterday's buy orders should be still in play. The Sl should be moved higher to the level of 1.3000. The projected TP from yesterday was missed by 8 pips so far.

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Elliott wave analysis of EUR/NZD for October 13 - 2015

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Technical summary:

Wave iv has become a flat correction, which alternates nicely with wave ii that was a simple zig-zag correction. Once wave iv is over, we are still looking for one final dip closer to the downside target at 1.6781 where we expect a bottom to be found for a nice strong rally back to at least 1.8020. If a more complex correction is about to unfold in the bigger picture, resistance at 1.8020 is unlikely to be broken. However, for now we should stay focused towards the downside test of 1.6780 as long as resistance at 1.7125 protects the upside.

Trading recommendation:

We will buy EUR at 1.6785 or upon a break above 1.7125 (one order done cancels the other) stop will be placed at 1.6685.

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Technical analysis of EUR/USD for October 13, 2015

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When the European market opens, economic news on the ZEW Economic Sentiment, German ZEW Economic Sentiment, German WPI m/m, and German Final CPI m/m is due to be released. The US will deliver economic data on the Federal Budget Balance and NFIB Small Business Index. So amid the reports, EUR/USD will move with low to medium volatility during this day.

TODAY TECHNICAL LEVELS:

Breakout BUY Level: 1.1408.

Strong Resistance:1.1401.

Original Resistance: 1.1390.

Inner Sell Area: 1.1379.

Target Inner Area: 1.1352.

Inner Buy Area: 1.1325.

Original Support: 1.1314.

Strong Support: 1.1303.

Breakout SELL Level: 1.1296.

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 13, 2015

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In Asia, Japan will release data on the Prelim Machine Tool Orders y/y, Consumer Confidence, Bank Lending y/y, and Monetary Policy Meeting Minutes. The US is expected to publish economic news on the Federal Budget Balance and NFIB Small Business Index. So, there is a strong probability that USD/JPY will move with low to medium volatility during this day.

TODAY TECHNICAL LEVELS:

Resistance. 3: 120.50.

Resistance. 2: 120.27.

Resistance. 1: 120.03.

Support. 1: 119.75.

Support. 2: 119.51.

Support. 3: 119.28.

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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Elliott wave analysis of EUR/JPY for October 13, 2015

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Technical summary:

We continue to look for more upside pressure towards 138.10 and then higher to 141.00 once this minor correction is over. Ideally, it will find support at 136.00, but we must allow for a corrective decline closer to 135.71 before the next rally higher to 138.10 is seen.

The rally of the wave (ii) low at 133.15 is in no way convincing yet, but acceleration will be seen soon as we enter the key stage of the impulsive wave.

Trading recommendation:

We are long EUR from 135.10 with stop placed at 135.30. If you are not long EUR yet, then buy near 136.00 or upon a break above 136.50 and use the same stop at 135.30

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Daily analysis of USDX for October 13, 2015

The USDX is holding the ground above the 200 SMA on the daily chart, and we could expect a test around the resistance level of 95.26. A breakout above it will make the index follow a mid-term rally, which could be pointing to a test in the resistance zone of 95.83. The MACD indicator remains at the negative territory.

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On the H1 chart, the USDX is watching for strong bottom around 94.61 on an intraday basis, as the index is trading below the 200 SMA. This week should be the key one for the US dollar, as we can expect a lower continuation towards the level of 94.15. But be cautious with the current price action, as it is still showing some irregular signs.

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Daily chart's resistance levels: 95.26 / 95.83

Daily chart's support levels: 94.36 / 93.16

H1 chart's resistance levels: 95.03 / 95.38

H1 chart's support levels: 94.61 / 94.15

Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the US dollar index breaks with a bearish candlestick; the support level is seen at 94.61, take profit is at 94.15, and stop loss is at 95.08.

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Daily analysis of GBP/USD for October 13, 2015

On the daily chart, we should note the Monday session was a slow one because of the holidays in most of European countries and the US. GBP/USD has been trading below the resistance zone of 1.5381. Watch for a breakout higher during this week, in order to test the next interest level around 1.5439.

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The pair continues to perform pullbacks after the opening bell and this should be an indicator of possible corrections, which could be extended towards the support level of 1.5285 where the 200 SMA is located. Over that zone, we can expect a rebound because of a bullish reaction.

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Daily chart's resistance levels: 1.5381 / 1.5439

Daily chart's support levels: 1.5325 / 1.5256

H1 chart's resistance levels: 1.5342 / 1.5400

H1 chart's support levels: 1.5282 / 1.5223

Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the GBP/USD pair breaks a bullish candlestick; the resistance level is seen at 1.5342, take profit is at 1.5400, and stop loss is at 1.5285.

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GBP/USD intraday technical levels and trading recommendations for October 12, 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 of 1.5170-1.5150 where a valid intraday buy entry was offered especially after the evident bullish rejection that took place on Tuesday (bullish engulfing daily candlestick).

Conservative traders were advised to wait for a bullish pullback towards the level of 1.5350 for a low-risk sell entry. It is being triggered during today's consolidations. S/L should remain above 1.5400.

Bearish persistence below the level of 1.5300 (SELL ENTRY) and 1.5200 is needed for further bearish decline towards the level of 1.5100 initially and then to 1.5050 (bearish Flag projection target).

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USD/CAD intraday technical levels and trading recommendations for October 12, 2015

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Overview:

A bullish breakout above the zone of 1.2770-1.2800 was observed on July 15.

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

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

On the other hand, the price level of 1.3075 constitutes an intraday resistance level to be watched for intraday sell entries if bullish pullback takes place soon.

Trading recommendations:

Conservative traders should wait for more bearish pullbacks 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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Intraday technical levels and trading recommendations for GBP/USD for October 12, 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 of 1.5900, which has been providing the GBP/USD pair with evident resistance.

The previous weekly candlestick closure above 1.5500 hindered a 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. An approximate projection target should be located at the level of 1.5050 for the reversal pattern.

In the short term, the nearest demand level 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 the 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 the price level of 1.5350 which is being tested.

gbpusddaily.png

Prominent supply/resistance is seen 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, the 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 took place 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.

As anticipated, obvious bullish pressure was expressed around the zone of 1.5150-1.5200 (previous prominent weekly bottoms). Since then, bulls have been pushing towards 1.5350.

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

On the other hand, the level of 1.5350 remains the significant supply level to be watched for valid intraday sell entries. It is being tested today.

Trading Recommendation:

A valid sell entry can be offered around the 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 a bearish breakdown of 1.5150 occurs soon. 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 12, 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 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 considering September's monthly candlestick that is obviously bearish).

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 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).

Previously, 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 which was not reached as the price level of 1.1150 prevented further bearish decline.

Daily persistence below the level of 1.1150 (61.8% Fibonacci level) was needed to expose the next demand level around 1.0980 where the daily uptrend comes to meet the EUR/USD pair. However, bullish demand was expressed around the 1.1150 level, which led to the current pullback towards the intraday SELL ZONE at 1.1370-1.1400.

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.

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