Intraday technical levels and trading recommendations for EUR/USD for October 16, 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 (low probability).

On the other hand, a bullish corrective movement towards 1.1500 can take place only if a monthly high of 1.1465 gets breached.

It can be achieved if the current monthly candlestick closes above the weekly high of 1.1465 by the end of this month.

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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.

Shortly after, 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. The latter 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 rejection was expressed around the level of 1.1150, which led to the current pullback towards the intraday sell zone of 1.1370-1.1400.

As anticipated, It offers a valid sell entry as long as the market keeps defending the EUR/USD supply zone at 1.1450-1.1500.

On the other hand, conservative traders should wait for a 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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Intraday technical levels and trading recommendations for GBP/USD for October 16, 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 supported 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 around 1.5170 (intraday demand level and the origin of a previous bullish engulfing weekly candlestick) has provided significant bullish rejection this week.

Weekly persistence below the level of 1.5350 (prominent weekly bottom) is mandatory to allow the further bearish decline to occur.

On the other hand, persistence above it hinders further bearish momentum giving time for sideways consolidations which may extend up to the price levels of 1.5500 and 1.5550.

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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 applied around the zone of 1.5150-1.5200 (previous prominent weekly bottoms). Since then, bulls have been pushing the price towards 1.5350, a bullish breakout is currently taking place as depicted on the chart.

The price zone of 1.5500-1.5550 remains a significant supply zone to be watched for valid sell entries.

Daily fixation below 1.5350 is needed to allow bearish movement to occur towards the level of 1.5150 (previous prominent weekly bottoms), then 1.4970 (weekly demand level).

Trading Recommendation:

Risky traders can take a valid SELL entry around the price zone of 1.5500-1.5550. S/L should be placed above 1.5550.

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.

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EUR/NZD : analysis for October 16, 2015

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Overview:

Recently, EUR/NZD has been moving upwards. The price tested the level of 1.6726. In the daily time frame, we can observe a supply bar in a high volume. Our 6-day support level at 1.6845 (Fibonacci retracement 38.2%) got finally broken and we may see potential testing the level of 1.6280. Selling opportunities are preferable. On the H1 chart, we can observe weak demand around the level of 1.6730. I had placed Fibonacci retracement to find potential mid-term support levels and got Fibonacci retracement 38.2% at the level of 1.6860 (broken), Fibonacci retracement 50% at 1.6280, and Fibonacci retracement 61.8% at 1.5740. The intraday trend is neutral.

Fibonacci Pivot Points :

Resistance levels:

R1: 1.6825

R2: 1.6910

R3: 1.7040

Support levels:

S1: 1.6560

S2: 1.6475

S3: 1.6340

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

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Gold analysis for October 16 , 2015

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Overview:

Since our last analysis, gold has been trading downwards. The price tested the level of $1,175.21 in a high volume. An intraday trend is still upward. In the daily time frame, we can observe an indecision bar in a high volume. In the H1 time frame, we can observe a volume spike (selling climax) in the background, which is a sign that selling gold at this stage looks risky. I placed major Fibonacci expansion to find potential objective points and got Fibonacci expansion 100% at the level of $1,191.00 and Fibonacci expansion 161.8% at the price of $1,247.00.

Daily Fibonacci pivot points :

Resistance levels

R1: 1,188.70

R2: 1,191.15

R3: 1,195.20

Support levels:

S1: 1,180.65

S2: 1,178.20

S3: 1,174.20

Trading recommendations: Be careful when selling gold at this stage and watch for potential buying opportunities on dips. Next resistance level is seen around $1,191.00-$1,247.00.

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Technical analysis of Silver for October 16 2015

Technical outlook and chart setups:

Silver is again seen to be bouncing off the wedge line support along with its 50-day moving average and is back above the $16.00 levels for now. The metal is expected to remain in control of bulls until prices stay above the $15.80 levels. It is hence recommended to initiate 50% long positions with risk just below the $15.80 levels. Immediate support is seen at the $15.80 levels, followed by $15.40/50, $14.40 and lower, while resistance is seen at the $16.40/50 levels, followed by $17.50/60 and higher. A break below the $15.80 levels could trigger a meaningful retracement lower towards the $15.00 levels.

Trading recommendations:

Initiate 50% long positions, stop is at $15.70, targets are $16.40/50 and $17.50.

Good luck!

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Technical analysis of USD/JPY for October 16, 2015

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USD/JPY is expected to rebound. US indices pushed higher on Thursday led by shares in the banks, pharmaceutical biotechnology and life sciences, and diversified financial sectors. The Dow Jones Industrial Average gained 217 points, or 1.3%, to 17,141.75. The S&P 500 advanced 1.5%, while the Nasdaq Composite gained 1.8%. The yield on the 10-year U.S. treasury notes rose to 2.025%. Gold gained 0.7% to $1,187.90 a troy ounce. US crude oil futures lost 0.6% to $46.38 a barrel. On the economic data front, initial jobless claims dropped to 255,000 for the week ending on October 10, reaching the lowest level since 1973. The prior week reported a revised number of 262,000. Continuing jobless claims lowered to 2,158,000 for the week ending on October 3 from a revised figure of 2,208,000 the week before. The Empire State Manufacturing index rose to -11.36 in October from -14.67 in September. Minus 8 was the estimate. CPI decreased 0.2% on-month in September from a decrease of 0.1% in August, meeting expectations. The Philadelphia Fed Business Outlook Index rose to -4.5 in October from -6.0 in Sept. The US budget deficit narrowed to $439 billion from $483 billion a year ago. The greenback posted a rebound against common currencies.The pair stays above its key support at 118.60 and remains on the upside. The ascending 50-period intraday MA maintains a bullish bias, while the intraday RSI stands above its 50% neutrality area. Further upside is therefore expected with the next horizontal resistance and overlap set at 119.55 at first. A break above this level would call for further advance towards 119.90 in extension.

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 119.55 and the second target at 119.90. In the alternative scenario, short positions are recommended with the first target at 118.05 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 117.75. The pivot point is at 118.60.

Resistance levels:119.55 119.90 120.25

Support levels: 118.05 117.75 117.45

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Technical analysis of USD/CHF for October 16, 2015

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USD/CHF is expected to trade in a lower range as it is under pressure. Currently trading at 0.9544, the pair remains weak below its key resistance of 0.9575. The intraday RSI indicator is turning down shifting to bearish. Furthermore, the 20- and 50-period MAs are still heading downward. To sum up, there is no big changes on our intraday technical view: as long as 0.9575 is not surpassed, a decline to 0.9485 and 0.9450 is likely to take place.

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 0.9485. A breakout of that target will move the pair further downwards to 0.9450. The pivot point stands at 0.9575. 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 0.9615 and the second target at 0.9650.

Resistance levels: 0.9615 0.9650 0.9690

Support levels: 0.9485 0.9450 0.94

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Technical analysis of NZD/USD for October 16, 2015

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NZD/USD is expected to consolidate with bullish bias. Technically, the pair is still in an uptrend, but it seems likely to post some consolidations now before a new rise. The intraday RSI has lost its momentum, but the trending indicators such as the 20- and 50-period MAs are still on the upside. Therefore, as long as 0.6755 (a strong support) is not broken, any consolidation should be limited before further advance towards 0.6850.

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 0.6850 and the second target at 0.690. In the alternative scenario, short positions are recommended with the first target at 0.6710 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 0.6660. The pivot point is at 0.6755.

Resistance levels: 0.6850 0.69 0.6945 Support levels: 0.6710 0.6660 0.6610

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Technical analysis of GBP/JPY for October 16, 2015

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GBP/USD is expected to trade with a bullish bias above 183. According to the chart, the pair stands firmly above its intraday support at 183. It is expected to post a new bounce to challenge 184.40. The RSI indicator is headed up jumping above its neutrality area of 50, which should confirm a positive bias. So, as long as 183 holds on the downside, a new rise to 184.40. and 184.85 seems to be on the cards.

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 184.30 and the second target at 184.85. In the alternative scenario, short positions are recommended with the first target at 182.30 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 181.80. The pivot point is at 183.

Resistance levels: 184.30 184.85 185.45

Support levels: 182.30 181.80 181

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Technical analysis of Gold for October 16 2015

Technical outlook and chart setups:

Gold has pulled back from $1,190.00, but is likely to draw further strength for a rally towards $1,200.00/30. As seen here, the immediate support line is where the metal is bouncing back again. It is expected to hit higher highs and higher lows in coming sessions. It is recommended to initiate 50% long positions now with tight risk just below $1,175.00. Immediate support is seen at $1,175.00 (interim) followed by $1,150.00/60.00, $1,135.00, and lower, while resistance is seen at $1,200.00, followed by $1,230.00, and higher.

Trading recommendations:

Initiate fresh long positions, stop is at $1,174.00, a target is at $1,200.00 and $1,230.00.

Good luck!

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Daily analysis of Silver for October 16, 2015

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Overview

According to the attached H4 chart, a tight range dominates in the silver price trading since yesterday, thus it continues fluctuating around the 16.00 level. As long as the price is above the 15.40 level, the bullish trend is still suggested on an intraday and short-term basis, supported by the EMA50. Our main long-awaited targets begin at 16.30, followed by 16.85. A break of the latter level will push the price to achieve more gains in the longer term and change the medium-term trend to the upside. Therefore, we still expect the bullish trend in the upcoming sessions conditioned by holding above the 15.40 level. Remember our main targets starting at 16.30 and then at 16.85.

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Daily analysis of GBP/JPY for October 16, 2015

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Overview

According to the attached H4 chart, the breach of the 184.41 minor resistance suggests that consolidation pattern from 180.36 is in the third leg. Initial bias in GBP/JPY is mildly on the upside for 188.28. Strong resistance would likely to be seen there to limit the upside and bring another decline. On the downside, a break of the 180.36 support will resume the whole fall from 195.86 and will target a test at the 174.86 key support level. GBP/JPY was close to key cluster resistance of 61.8% retracement of 251.09 to 116.83 at 199.80, which is close to 200 psychological level. A break of 174.86 will confirm a trend reversal and bring a deeper fall to 38.2% retracement of 116.83 to 195.86 at 165.67. 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 now likely to be seen near to 61.8% retracement of 251.09 to 116.83 at 199.80.

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Technical analysis of EUR/JPY for October 16 2015

Technical outlook and chart setups:

The EUR/JPY pair bounced off 134.75 levels yesterday, as it was discussed earlier. Please note that the pair has taken support off the Fibonacci 0.618 levels as depicted here, and the next leg should be higher towards 136.30 and 137.25. It is hence recommended to initiate fresh buy positions or remain long with risk around the 134.00 levels. Immediate support is seen at the 134.75 levels (interim), followed by 134.00/50, 133.00, 132.00 and lower, while resistance is seen at the 137.00 levels, followed by the 138.00/139.00 levels and higher.

Trading recommendations:

Remain long now, stop is at 134.00, targets are 136.30, 137.25 and higher.

Good luck!

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Technical analysis of GBP/CHF for October 16 2015

Technical outlook and chart setups:

The GBP/CHF pair is testing its 50 day moving average around the level of 1.4750 at the moment, after having reached an intraday high of 1.4768, just shy of its fibonacci 0.618 resistance. Please note that the pair needs to clear the past level of 1.4800 and subsequently 1.4900/30, to confirm that bulls are back in control. As bearish reversal is observed here, it could drop lower towards 1.4400. It is recommended to watch for bearish reversal here and initiate short positions with risk above 1.4800. Immediate support is seen at the level of 1.4620 followed by 1.4550 and lower, while resistance is seen at 1.4900/30 and higher.

Trading recommendations:

Sell on bearish signals around current levels, set stop above 1.4800, a target is 1.4400.

Good luck!

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Technical analysis of AUD/USD for October 16, 2015

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Overview:

  • The AUD/USD pair had fallen from the level of 0.7380 and the decline was extended further to as low as 0.7290 yesterday. Furthermore, the price has been below 100% of Fibonacci retracement levels on the H1 chart. Additionally, the price has formed strong resistance at the 0.7380 level and minor resistance at 0.7335. Moreover, this strong level has still been moving between 61.8% of Fibonacci retracement levels and the double top. As it is known, history usually repeats itself at a certain level. So it will be sensible to use historic quotes to determine future prices. Hence, the market will probably show bearish signs again in order to indicate a bearish opportunity at the level of 0.7330 with targets towards the strongest support around the 0.7260 level. Equally important, the market will form a range between two important levels of 0.7330 and 0.7240, so the range will be 90 pips precisely. Also, the double bottom will be set at the level of 0.7221.

Intraday technical levels:

Date:16/10/2015

Pair:AUD/USD

  • R3: 0,7468
  • R2: 0,7416
  • R1: 0,7370
  • PP: 0,7318
  • S1: 0,7272
  • S2: 0,7220
  • S3: 0,7174
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Technical analysis of USD/CHF for October 16, 2015

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Overview:

  • The USD/CHF pair will probably move between the levels of 0.9514 and 0.9596. The price has been set below strong resistance at the level of 0.9596, which represents the double top (38.2% of Fibonacci retracement levels). Additionally, the trading range will be below 0.9596. Thereupon, the pair has already formed strong resistance at the levels of 0.9600/0.9596, and it is now approaching it in order to test it. Therefore, the possibility that the USD/CHF pair will have downside momentum is rather convincing, and the structure of the fall does not look corrective. It will be a good sign to sell below 0.9600 with the first target of 0.9566. Equally important, it will call for a downtrend to continue with a bearish trend towards 0.9515. On the other hand, the price at 0.9515 will possibly form strong support (11.8% of Fibonacci retracement levels on the H4 chart). Accordingly, saturation around 0.9515 to rebound the pair is likely to happen. Furthermore, it is possible that the market is going to start showing signs of the bullish market from this area. Hence, it will be a good sign to buy above 0.9515 with the target of 0.9596 in the long term.

Trading recommendations:

  • Buy above the support of 0.9512 with the targets of 0.9570 and 0.9590. However, the stop loss should be placed below the double bottom at the level of 0.9470.
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Daily analysis of major pairs for October 16, 2015

EUR/USD: This pair got corrected before it could reach the resistance line at 1.1500, and this could be taken as a short-term sale in the context of an uptrend. Unless the support line at 1.1300 is breached to the downside, the bullish bias on the pair would remain a valid thing. The outlook for the pair is upbeat and further rally could take place.

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USD/CHF: There is a Bearish Confirmation Pattern on the USD/CHF. The EMA 11 is below the EMA 56 and the Williams' % Range period 20 is not far from the oversold territory. The bearish movement is expected to continue, especially as long as the EUR/USD is strong.

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GBP/USD: The Cable is currently in a bullish mode, which is supposed to continue this week and next week. However, there is a stubborn distribution territory at 1.5500, which must be broken to the upside, so the northward journey can continue. Distribution territories of 1.5550 and 1.5600 are the next targets.

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USD/JPY:The USD/JPY pair broke downwards, ending the recent protracted equilibrium phase. The price went briefly below the supply level of 118.00, before bounding upwards. The bias is now bearish and it would hold as long as the supply level at 119.50 is not broken to the upside.

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EUR/JPY: This cross, which has been trading sideways from Monday till Wednesday this week, broke towards the south on Thursday. The southwards break was strong, but it was not strong enough to jeopardize the existing bullish outlook. A movement below the demand zone at 134.50 would result in a bearish outlook (though it is expected that the demand zone would defend the extant bullish outlook). Any movement above the supply zone at 136.00 would reinforce the existing bullish outlook, which might mean that the pullback which happened on Thursday was a nice opportunity to go long.

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Global macro overview for 16/10/2015

Global macro overview for 16/10/2015:

The recent bull run in gold is clearly a result of a fundamental pricing out a Fed rate hike this year as the Fed Funds futures are now pricing in a 26.8% chance of the rate hike this year, down from 32.6% yesterday. Moreover, weaker retails sales and manufacturing surveys from Empire State and Philly Fed are both adding fuel to the fire together with stubbornly lower than projected inflation levels. Inflation and interest rates expectations are fundamental drivers of gold prices and while the odds for the Fed hike were high in the last six months, now they are off the table and gold prices are surging higher.

The technical picture of gold still favors bulls as the price is now trading $100 higher than in July 2015. The next support is seen at the level of 1170 and the resistance is seen at the level of 1191.

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Global macro overview for 16/10/2015

Global macro overview for 16/10/2015:

The yesterday report on crude oil inventories revealed an unexpected increase in oil stockpiles. The market expectation were around 2577k, but the number was way higher, 7562K. This might suggest another wave of supply coming to markets as even the latest Venezuelas plan to reignite the OPEC price peg mechanism, attempting to set a $70 floor, will be doomed from the start. Moreover, Saudi Arabia and OPEC's leaders clearly stated that it does not have any interest in supporting crude prices relaying only on financial market dynamics.

After four days of a losing streak, crude prices bounced. Now oil is trading just below the technical resistance at the level of 47.66. The next support is seen at the level of 45.15.

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USDX technical analysis for October 16, 2015

The US dollar index made a bounce yesterday as we expected, but the price remained inside the downward sloping channel. There are great chances for a bigger upward reversal from current levels, but bulls need to be cautious as bears remain in control of a trend.

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Blue lines - bearish channel

The US dollar index remains below the Ichimoku cloud and inside the bearish channel. The price needs to break above 94.75 in order to get a bullish sign. However, the most important bullish sign is expected if the price breaks above the Ichimoku cloud in the 4-hour chart. Support is seen at 93.80.

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Red line - weekly resistance

Green line -weekly support

The weekly candle remains inside the Ichimoku cloud trying to break above it. As I said yesterday, bulls need to break above the Ichimoku cloud in order to produce a bullish signal. The price remains inside the tightening trading range of a bullish flag. Important support is found at 92 and important resistance is seen at 95 and 97.

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Gold technical analysis for October 16, 2015

Gold price has reached my target area at $1,195 plus or minus 10$. Gold price has reversed and is most probably going to test the short-term support at $1,170. This is not the time to buy gold. The upside is limited, while the downside is open to $1,120.

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Green line - support

Red lines - bullish channel

Gold price is trading above the Ichimoku cloud and inside the bullish red channel. Gold price is making a pullback towards the kijun-sen (yellow indicator) I believe support at $1,170 will hold before a final upward thrust to $1,200. The upside is limited, so traders should be very cautious about long positions.

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Black lines - broken triangle

Red line - resistance broken

Gold price has moved towards the weekly Ichimoku cloud, which is found at $1,200. We reached $1,190 and reversed. A trend remains bullish and we can reach $1,200. However, we are at overbought levels. Downward reversal should be expected soon.

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Technical analysis of EUR/JPY for October 16, 2015

General overview for 16/10/2016 08:45 CET

The price bounced from 61%Fibo, and now it is going higher in corrective wave b green to test the intraday resistance at the level of 135.99. There is still one wave down missing, wave c green, to complete the overall wave E black as a completed cycle. Only a clear, impulsive breakout above the level of 136.95 would invalidate the view.

Support/Resistance:

136.11 - Weekly Pivot

135.99 - Intraday Resistnace

135.28 - WS1

134.79 - Intraday Support

134.77 - 61% Fibo

Trading recommendations:

Day traders should consider opening sell orders from the level of 135.99 with SL above the level of 136.20 and TP at the level of 135.21.

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Technical analysis of USD/CAD for October 16, 2015

General overview for 16/10/2016 08:45 CET

The price touched the golden trend line on the H4 chart, and now the market is ready to start another wave up to complete the cycle. In the lower time frames, the price is still inside the golden channel, so any breakout higher will be considered bullish.

Support/Resistnace:

1.2858 - Technical Support

1.2900 - Intraday Resistnace

1.2956 - Intraday Resistnace

1.2996 - Weekly Pivot

Trading recommendations:

Daytraders should consider opening buy orders at current market levels with tight SL (20-30 pips) and open TP for now.

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Elliott wave analysis of EUR/NZD for October 16, 2015

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Wave summary:

With an adjusted count, we where looking for a final decline to 1.6544 and we have seen a low at 1.6486. We think that a low is in place for a new rally higher to at least 1.8019 and possibly even higher.

In the short term, we need support at 1.6486 to protect the downside for a break above minor resistance at 1.6707 as the first good indication that a bottom is in place. To confirm the bottom, a break above resistance at 1.6851 is needed.

Trading recommendation:

We bought EUR at 1.6555 and will place our stop at 1.6480. If you are not long EUR yet, buy on a break above 1.6670 and use the same stop.

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Elliott wave analysis of EUR/JPY for October 16, 2015

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Wave summary:

A strong decline from 136.46 has invalidated a bullish call and that leaves us with a huge triangle pattern from 126.05. There is no way this could be a bullish triangle, which means we shall be looking for a downside thrust eventually. A break below important support at 133.11 confirms the downside thrust and ultimately a decline below a low of 126.05.

This is the way corrections work. A perfect bullish count is likely to be destroyed next day, and everything turns upside down.

Trading recommendation:

Our stop at 135.90 was hit for a nice little profit. We will no be looking for a EUR selling opportunity with a stop set at 136.80.

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

Technical analysis of EUR/USD for October 16, 2015

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When the European market opens, economic news on the Trade Balance, Final Core CPI y/y, Final CPI y/y, and Italian Trade Balance is due to be released. The US will publish economic data on the Prelim UoM Inflation Expectations, JOLTS Job Openings, Prelim UoM Consumer Sentiment, Industrial Production m/m, and Capacity Utilization Rate. So amid the reports, EUR/USD will move with low to medium volatility during this day.

TODAY TECHNICAL LEVELS:

Breakout BUY Level: 1.1421.

Strong Resistance:1.1414.

Original Resistance: 1.1403.

Inner Sell Area: 1.1392.

Target Inner Area: 1.1365.

Inner Buy Area: 1.1338

Original Support: 1.1327.

Strong Support: 1.1316.

Breakout SELL Level: 1.1309.

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 16, 2015

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In Asia, Japan will not release any economic data, but the US will publish economic news on Prelim UoM Inflation Expectations, JOLTS Job Openings, Prelim UoM Consumer Sentiment, Industrial Production m/m, and Capacity Utilization Rate. So, there is a big probability that the USD/JPY pair will move with low to medium volatility during this day.

TODAY TECHNICAL LEVELS:

Resistance. 3: 119.73.

Resistance. 2: 119.50.

Resistance. 1: 119.27.

Support. 1: 118.97.

Support. 2: 118.74.

Support. 3: 118.50.

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

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

Daily analysis of USDX for October 16, 2015

On the daily chart, the USDX is currently trying to stay above the 200 SMA, because a decline is no longer strong on a short-term basis. However, this scenario could change when the index manages to form a lower low pattern to reach new lows. A rebound at the current stage could send the USDX to the resistance level of 95.26.

USDXDaily.png

The index is recovering from the losses on an intraday basis and now is facing the resistance level of 94.61. In case of a breakout, the USDX is likely to move towards 94.98, where the 200 SMA is located. At the current stage, we can expect a pullback, which should not extend more than above the range zone of 94.73.

USDXH1.png

Daily chart's resistance levels: 94.36 / 95.26

Daily chart's support levels: 93.16 / 92.33

H1 chart's resistance levels: 94.61 / 94.98

H1 chart's support levels: 94.15 / 93.73

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 94.15, take profit is at 93.73, and stop loss is at 94.58.

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

Daily analysis of GBP/USD for October 16, 2015

GBP/USD did not face any significant changes in a current trend, as it still looking for an opportunity to break above the 200 SMA zone on the daily chart, in order to do a rally towards 1.5589. Our outlook remains bearish, because the cable could perform a pullback at current levels towards the support zone of 1.5381. The MACD indicator is at the positive territory.

1444946718_GBPUSDDaily.png

On the H1 chart, GBP/USD is forming a higher high pattern above the support level of 1.5458, and this would impose an outlook, which points to the upside because the resistance zone of 1.5506 could get challenged by bulls in the short term. The 200 SMA is still pointing to the upside. The MACD indicator is entering the negative territory.

1444946723_GBPUSDH1.png

Daily chart's resistance levels: 1.5589 / 1.5643

Daily chart's support levels: 1.5469 / 1.5381

H1 chart's resistance levels: 1.5506 / 1.5551

H1 chart's support levels: 1.5458 / 1.5411

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 at 1.5506, take profit is at 1.5551, and stop loss is at 1.5458.

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

GBP/USD intraday technical levels and trading recommendations for October 15, 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 on October 6.

Conservative traders are advised to wait for a bullish pullback towards the price level of 1.5470 for a low-risk sell entry.This price level is being approached today. Price reaction should be watched for a valid short position.

Note that bearish persistence below the level of 1.5330 is needed for a further bearish decline towards the level of 1.5100 and then towards 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 15, 2015

cadweekly.pngcaddaily.png

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. It offered a valid SELL position at retesting that took place yesterday.

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.

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