EUR/NZD analysis for October 23, 2015

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Overview:

Recently, EUR/NZD has been moving downwards. As we expected, the price tested the level of 1.6156. In the daily time frame, we can observe a neutral bar. Our Fibonacci retracement 50% major held successfully and the price successfully rejected. Selling EUR/NZD at this stage looks very risky. We can observe buyers supporting level of 1.6250 (intraday support). We may see possible testing of the level of 1.6500.

Fibonacci Pivot Points :

Resistance levels:

R1: 1.6755

R2: 1.6890

R3: 1.7113

Support levels:

S1: 1.6310

S2: 1.6175

S3: 1.6595

Trading recommendations: Be careful when selling at this stage. Buying positions are preferable.

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Daily analysis of Silver for October 23, 2015

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Overview

The silver price hovers around the 15.85 level and the EMA50, showing positive attempts to trade above the mentioned level, reinforcing the expectations of continuing the bullish correctional trend, waiting to visit 16.30 followed by 16.85 in the upcoming period. The price might witness some temporary sideways fluctuation affected by stochastic current negativity, but in general, the positive scenario will remain valid and active unless breaking the 15.40 level and settling with a daily close below it. Therefore, the positive scenario will remain valid and active if the price settled above the 15.40 level, supported by the EMA50.

Expected trading range for today is between the 15.40 support and 16.30 resistance.

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Daily analysis of GBP/JPY for October 23, 2015

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Overview

Outlook for GBP/JPY has not changed. A sideways consolidation from 180.36 is still in progress and further recovery might be seen. Strong resistance is expected at 188.28 to limit upside to finish the consolidation. A break of 180.36 will extend the whole fall from 195.86 and then target a test at the 174.86 key support 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 case of another rise, we will be cautious about strong resistance from 199.80/200.00 to bring the reversal finally.

Daily Pivots: (S1) 184.86; (P) 185.38; (R1) 186.27

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Gold analysis for October 23 , 2015

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Overview:

Since our last analysis, gold has been trading upwards. The price tested the level of $1,179.20 in a very high volume. The short- and mid-term trend changed from downward to upward. In the daily time frame, we can observe a neutral bar in an average volume. In the H1 time frame, we can observe strong upward momentum and rejection from strong support cluster at the price of $1,165.00. Major resistance is at the price of $1,191.50.

Daily Fibonacci pivot points :

Resistance levels

R1: 1,168.20

R2: 1,169.40

R3: 1,171.35

Support levels:

S1: 1,164.30

S2: 1,163.10

S3: 1,161.15

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

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Technical analysis of USD/JPY for October 23, 2015

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USD/JPY is expected to trade in a higher range. Overnight, the US stocks surged along with the European markets (over 2% gains in Germany and France) as European Central Bank President Mario Draghi hinted further stimulus measures. The Dow Jones Industrial Average rose 1.9% to 17489, the S&P 500 gained 1.7% to 2052, and the Nasdaq Composite advanced 1.7% to 4920. Nymex crude oil increased 0.4% to $45.38 per a barrel and gold was 0.1% down landing at $1,166 per a troy ounce. The benchmark 10-year Treasury yield eased further to 2.025% from 2.030% at the previous session. The pair continues to climb higher after its overnight surge. It is currently trading above the 20-period intraday moving average (MA), which stands above the 50-period. The intraday relative strength index (RSI) has moved above the overbought level of 70, while showing no bearish divergence. An intraday outlook is bullish. The first upside target is seen at 121.00, and a break above this level would open a path toward the second target at 121.30 (around the high of September 25).

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 121 and the second target at 121.30. In the alternative scenario, short positions are recommended with the first target at 119.55 if the price moves below its pivot points. A break of this target is likely to push the pair further downwards, and one may expect the second target at 119.20. The pivot point is at 120.10.

Resistance levels:121 121.30 121.75

Support levels: 119.55 119.20 118.90

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Technical analysis of USD/CHF for October 23, 2015

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USD/CHF is expected to trade in a higher range. The pair remains on the upside following the recent breakout above its key level at 0.9685. The previous resistance should now act as support, which should limit any downward attempts. Furthermore, the intraday RSI is bullish and calls for a move further upside. Immediate momentum is strong as well. To sum up, as long as 0.9685 is not broken, expect a new rebound to 0.9775 and 0.9795.

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 0.9775 and the second target at 0.9795. In the alternative scenario, short positions are recommended with the first target at 0.9645 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 0.96. The pivot point is at 0.9685.

Resistance levels: 0.9775 0.9795 0.9815

Support levels: 0.9645 0.96 0.9550

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Technical analysis of NZD/USD for October 23, 2015

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NZD/USD is expected to trade with a bullish bias. The pair reversed up yesterday, and now it stands firmly above its nearest support of 0.6795. The intraday 20- and 50-period intraday MAs are moving upwards calling for further advance. Moreover, the RSI is above its neutrality area around 50. In this case, as long as 0.6760 is not broken, the pair is likely to challenge 0.6865 (October 20 top) first. I case of a breakout, watch for a new bounce to 0.6900.

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 0.6865 and the second target at 0.69. In the alternative scenario, short positions are recommended with the first target at 0.6735 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 0.67. The pivot point is at 0.6760.

Resistance levels: 0.6865 0.69 0.6925 Support levels: 0.6735 0.67 0.6650

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Technical analysis of GBP/JPY for October 23, 2015

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GBP/JPY is expected to trade with a bullish bias. The pair broke below its 50-period intraday MA, but is still consolidating above its key support at 185.10, which should limit the downside potential. Even though a continuation of the consolidation cannot be ruled out, its extent should be limited. As long as 185.10 is not broken, look for moving further upside with upward targets at 186.25 and 186.75.

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 186.25 and the second target at 186.75. In the alternative scenario, short positions are recommended with the first target at 184.45 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 184.05. The pivot point is at 185.10.

Resistance levels: 186.25 186.75 187.35

Support levels: 184.45184.05 183.60 183

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GBP/USD intraday technical levels and trading recommendations for October 23, 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, 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 were advised to wait for a bullish pullback towards the level of 1.5480 for a low-risk sell entry.

This sell position was triggered last week on Wednesday. S/L should remain above 1.5530. T/P levels to be located at 1.5330 then 1.5150 later on.

Note that bearish persistence below the level of 1.5330 is needed for a further bearish decline towards the levels of 1.5100 and 1.5050. Otherwise, further bearish decline will be hindered.

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USD/CAD intraday technical levels and trading recommendations for October 23, 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 moved further above the resistance level, which was bypassed on September 23.

A significant bearish rejection was observed around 1.3450 where 141.4% Fibonacci Expansion was roughly located.

Later on October 1, bearish persistence below 1.3270 (Fibonacci Expansion 100%) was expressed 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 zone of 1.3075-1.3100 constitutes an intraday resistance to be watched for intraday sell entries.

As anticipated, it offered a valid sell position last Tuesday being re-visited again this week.

Current levels will probably offer a valid sell entry again, if enough bearish rejection is expressed by the end of the day (Daily candlestick closure below 1.3075).

On the other hand, daily persistence above 1.3100 exposes the price level of 1.3270 (Fibonacci Expansion 100%) again.

Generally, the USD/CAD pair remains trapped between the levels of 1.2800 and 1.3100 until a breakout in either direction occurs.

Trading recommendations:

Conservative traders should wait for bearish pullbacks towards the recent breakout zone (1.2800-1.2750) for a valid buy entry as the breakout level acts as strong support.

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 Silver for October 23 2015

Technical outlook and chart setups:

Silver is trying to drop lower in 3 wave correction from current levels around $16.00 as depicted here. The metal is expected to drop through at least $15.30, but a push below the support level of $14.40 would be extremely bearish. An aggressive trade setup could be to initiate 50% short positions now, with risk at $16.50. Immediate support is seen at $15.00 followed by $14.40, $14.00, and lower, while resistance is seen at $16.40/50 followed by $17.50/60 and higher. The more conservative way to trade would be to wait for a drop.

Trading recommendations:

Remain flat or go short with stop at $16.50, a target is at $15.30.

Good luck!

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Intraday technical levels and trading recommendations for EUR/USD for October 23, 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 (depicted on the chart with small red arrows).

In the long term, a projected target is still seen at 0.9450 if bearish breakdown of the monthly demand level of 1.0550 occurs soon.

On the other hand, a bullish corrective movement towards 1.1500 and 1.1700 can take place only if a weekly high of 1.1465 gets breached as soon as possible.

This can be achieved if the current monthly candlestick closes above a weekly high of 1.1465 by the end of this 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 a 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 providing evident bullish rejections several times in a row.

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 level of 1.1150 prevented a further bearish decline.

As anticipated, daily persistence below the level of 1.1150 (61.8% Fibonacci level) was needed to expose the next demand level around 1.1050 where the daily uptrend comes to meet the EUR/USD pair.

Conservative traders should wait for more bearish correction towards the level of 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 23, 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 significant resistance.

The previous weekly candlestick closure above 1.5500 hindered a further bearish decline enhancing 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 a 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) provided significant bullish rejection to the pair last week.

This week, a weekly candlestick closure below the level of 1.5350 (prominent weekly bottom) is needed 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 extended up to the 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, the 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.

The price zone of 1.5500-1.5550 remains a significant supply zone to offer valid sell entries. Yesterday, it offered one more valid sell entry, which is running in profits now.

A daily fixation below 1.5350 is currently needed to allow bearish movement to occur towards the levels of 1.5150 (previous prominent weekly bottoms) and 1.4970 (weekly demand level).

Trading Recommendation:

Risky traders were instructed to sell the GBP/USD pair in the zone around 1.5500-1.5530. S/L should be lowered to an entry level to offset the associated risk. Initial target levels should be located at 1.5400 and 1.5350.

On the other hand, a low-risk buy entry can be offered around the weekly demand level at 1.5000 (if a bearish breakdown of both demand levels at 1.5350 and 1.5150 occurs soon).

S/L should be placed below 1.4930.

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Technical analysis of Gold for October 23 2015

Technical outlook and chart setups:

Gold is trading around $1,171.00 for now after reaching highs around $1,1755.00/76.00. The metal might be retracing lower towards $1,150.00 and $1,136.00 respectively before turning bullish again. In the long term, changes in a trend would be confirmed only after a break at $1,230.00. It is hence recommended to remain flat and look for a dip lower. Immediate support is seen at $1,150.00 followed by $1,135.00, $1,100.00, and lower, while resistance is seen at $1,190.00/1,200.00 followed by $1,230.00, and higher respectively.

Trading recommendations:

Remain flat now.

Good luck!

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Technical analysis of EUR/JPY for October 23, 2015

Technical outlook and chart setups:

The EUR/JPY pair dropped to previous support around the levels of 133.50 again. Please note that the pair dropped slightly below the consolidation support line, but a pullback towards 134.75/135.00 is expected. It is hence recommended to initiate 50% long positions with risk at 133.00. Immediate support is seen at 133.00, followed by 132.00/25 and lower while resistance is seen at 135.50 followed by 136.20, 137.00, and higher respectively. If the pair wants to remain in the consolidation zone, it should rally through 137.00 at least.

Trading recommendations:

Initiate 50% long positions now, stop at 133.00, a target is open.

Good luck!

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Technical analysis of GBP/CHF for October 23, 2015

Technical outlook and chart setups:

The GBP/CHF pair took out initial resistance at 1.4930 yesterday as it was expected. The pair should pull back lower towards the level of 1.4700, which is also Fibonacci 0.618 support of a rally from 1.4550 to 1.5000/10 respectively. Furthermore, the resistance trend line also acts as support now. It is hence recommended to wait for a dip towards the levels around 1.4700, before initiating long positions again. Immediate support is seen at 1.4700 followed by 1.4630, 1.4550, and lower, while resistance is seen at 1.5100 followed by 1.5350 and higher.

Trading recommendations:

Remain flat and look for an opportunity to buy around 1.4700.

Good luck!

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Daily analysis of major pairs for October 23, 2015

EUR/USD: After a period of tight consolidating, which took place for the first few trading days of the week, this currency trading instrument broke downwards, plunging nicely by 270 pips before the current shallow bounce upwards. The outlook for the market is bearish, and this could potentially continue next week.

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USD/CHF: This pair has moved by 200 pips upwards this week ending the recent bearish outlook. As it was rightly forecasted, any weakness in EUR/USD would enable this pair to skyrocket and this is exactly what is happening. The resistance level at 0.9750 is about to be attained as it could be breached to the upside.

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GBP/USD: The bullish bias on the cable is under jeopardy, for the price has been corrected downwards. The price still performing a kind of consolidation. When a breakout does occur, it is more likely that it would be headed to the upside since the outlook for the GBP/USD pair is bullish (which might probably hold true for the rest of the month). If the cable move below the accumulation territory of 1.5300, the bullish outlook would be useless.

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USD/JPY: This cross now has a Bullish Confirmation Pattern on it. The EMA 11 is above the EMA 56 and the RSI period 14 is above the level of 50. The price, which started moving northward last week, has continued moving northwards this week. It is almost testing the supply level at 121.00. It could simply be an opportunity to go long again.

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EUR/JPY: The EUR/JPY (and most other EUR pairs) has gone bearish. This cross first made some bullish attempt from Monday till Wednesday, moving above the supply zone of 136.00. Since then, the price has plunged by at least 260 pips, testing the demand zone of 135.50. There is now a bearish signal in the market, and the price could go further south.

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Global macro overview for 23/10/2015

Global macro overview for 23/10/2015:

Yesterday's US labor data looked sharp when unemployment claims beat analysts' expectation with 259K versus 267K expected. Moreover, figures were slightly higher than 255K reported last month. This data points to a quite strong labor market in the US, but the real test will come in early November when the NFP number is released.

The SPX index (SP500 ETF) has managed to climb over the technical resistance at the level of 203.84 and is currently trading inside the bullish zone. The next important resistance is seen at 213.78 ( all time highs).

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Global macro overview for 23/10/2015

Global macro overview for 23/10/2015:

The EUR/USD pair plunged 250 pips yesterday after the ECB president Mario Draghi had hinted a possibility of QE extension by the end of 2015. Despite the fact that the interest rate remained unchanged at 0.05%, together with deposit facility rate at -0.20% and marginal lending facility 0.30%, the euro dropped sharply, closing below 1.11 for the first time since mid-August. Currently, the ECB is buying EUR 60 billion a month and further easing might continue beyond 2016 if needed. If Mario Draghi would increase the QE program above the mentioned level, this would mean that another rate cut is on the table.

The EUR/USD pair is currently trading above the 1.1086 support level, around the internal trend line resistance. The next technical resistance is seen at the level of 1.1303.

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Technical analysis of USD/CAD for October 23, 2015

General overview for 23/10/2015 10:50 CET

As we anticipated yesterday, the top for the wave (i) green had been formed, and now the market is in a corrective cycle down to develop wave (ii) green. When the corrective cycle is completed, another wave up is expected. The support level for anticipated wave (ii) green is seen in the zone between the levels of 1.3040 and 1.3000.

Support/Resistance:

1.3145 - Intraday Resistance

1.3067 - WR1

1.3045 - Intraday Support

1.2935 - Weekly Pivot

1.2938 - Invalidation Level

Trading recommendations:

All buy orders hit the TP level and now day traders should wait for a corrective cycle to complete before opening another buy orders in this pair.

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Technical analysis of EUR/JPY for October 23, 2015

General overview for 23/10/2015:

After an impulsive break below the break-through supply zone, the current wave c green has hit 127% Fibo at 133.62 and weekly pivot support at the level of 133.56. The three-wave structure might be the first sign of the completed wave E of the triangle.

Support/Resistnace:

133.40 - Intraday Support

133.56 - WS2

133.62 - 127%Fibo

134.26 - Intraday Resistnace

134.45 - WS1

Trading recommendations:

The TP level recommended yesterday were hit and the short traders advised through the week made profits. Congratulations to all the traders who managed to succeed!

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USDX technical analysis for October 23, 2015

The US dollar index spiked higher yesterday after the comments of European Central Bank president Mario Draghi and the plans to extend QE in the eurozone in December. Besides, the possibility of a rate cut by the ECB pushed the US dollar index higher.

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Red line - broken resistance

The US dollar index broke above the 4-hour Ichimoku cloud resistance and the downward sloping red trend line. The index has reached the previous highs at 96.50 and has paused its rise. Bulls need to be cautious as we could see a pullback towards the Ichimoku cloud in order to back-test the breakout.

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Red line - weekly resistance

Green line - weekly support

The US dollar index has managed to break above the weekly Ichimoku cloud and is now testing the long-term red trend line. A rejection at current levels could bring the index back towards 93. The bullish flag remains intact and we still have no breakout.

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Gold technical analysis for October 23, 2015

The gold price remains inside the bearish short-term channel. Bulls still have some chances of seeing a new higher high towards $1,200, while the price remains above the $1,165 level. The gold price has reached the area where the risk reward from long positions is not good enough as we now expect the gold price to come back towards $1,120.

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Red lines - bearish channel

The gold price is testing the upper channel boundary. The price has reached the lower cloud boundary of the 4-hour Ichimoku cloud and bounced. The 38% Fibonacci retracement was not broken. There are still chances of a new higher high to get the price closer to $1,200.

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The weekly candle remains bullish above the kijun-sen (yellow line indicator). The gold price could make a final spike towards $1,200 before the correction towards $1,120 that

I anticipate.

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Elliott wave analysis of EUR/NZD for October 23, 2015

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Wave summary:

We did not expect a break below 1.6486, but it told us that a decline from 1.8019 was not over yet and more downside was needed. We have adjusted our wave count accordingly and the next downside target is found at 1.6075, which is just above the 61.8% corrective target of a rally from 1.3884 to 1.9114 that is seen at 1.5882. Therefore, we will be looking for signs of a bottom in the area.

At this point it will take a break above 1.6499 to indicate a bottoming being in place.

Trading recommendation:

Our stop at 1.6540 was hit for a very small loss. We will be looking for new EUR-buying opportunities in the area of 1.5882 - 1.6075.

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Elliott wave analysis of EUR/JPY for October 23, 2015

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Wave summary:

A decline from 136.39 is clearly impulsive and has all the earmarks of a third wave decline. It is almost vertical and very strong, which is exactly what we would be looking for in wave 3.

An ideal target for wave iii is seen at 132.98 where wave iii will be 161.8% of wave i, but wave iii could extend even more. Then, the next downside target would be found at the 200% extension target at 132.17.

Resistance is now seen at the former Triangle support line near 134.30 and again at 134.59.

Trading recommendation:

We are short EUR from 135.95 and will move our stop lower to 134.85 locking in a nice profit. If you are not short EUR yet, sell near 134.59 if seen or upon a break below minor support at 133.94 and use the same stop at 134.85.

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Technical analysis of NZD/USD for October 23, 2015

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Overview:

  • The NZD/USD pair is in the short term. The NZD/USD pair will probably turn to bearish sentiment from the level of 0.6836 (below the ratio 78.6% of Fibonacci retracement levels). It should be noted that the last top has set at the level of 0.6840. Accordingly, it will be a good sign to sell below 0.6836 with the first target at 0.6756 to test minor support at this level. Also, it will call for a downtrend in order to continue its bearish movement towards 0.6723 (38.2% of Fibonacci retracement levels). At the same time, the stop loss should be placed above 0.6840 at the level of 0.6878. Equally important, the support is found at the level of 0.6723. Additionally, it should be noticed that the range will be about 105 pips today because we have a high volatility today.

Notes:

  • According to the previous events, the NZD/USD pair is going to move between 0.6760 and 0.6836.
  • The resistance will be set at the level of 0.6836 and the support has already been placed at the level of 0.6723.
  • The key level will set at the level of 0.6802 (daily pivot point).
  • The level of 0.6863 will represent the double top.
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Technical analysis of USD/CHF for October 23, 2015

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Overview:

  • According to the previous events, the USD/CHF pair is still moving above the levels of 0.9675 and 0.9702. An uptrend is observed in the market since yesterday. Besides, it should be noted that we expect a range between the levels of 0.9702 and 0.9790. So, we expect a large range about 88 pips in coming hours. A breakout is seen at 61.8% Fibonacci retracement level (the double bottom in the daily chart) for that the key level is set at the level of 0.9702 because it represents strong support and coincides with the 61.8% Fibonacci retracement level. It will be good to buy above 0.9702 with the first target at 0.9763 in order to test the double top. It will call for an uptrend in order to continue its bullish movement towards 0.9790. On the other hand, the stop loss should never exceed your maximum exposure amounts, consequently, the stop loss should be placed below the double bottom at the price of 0.9675.
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Daily analysis of USDX for October 23, 2015

On the H1 chart, the USDX has been trading above the support level of 96.30 with a higher high pattern formation, as the index had a very strong bullish momentum during Thursday's session. The current structure is fractal enough to state that the USDX will perform a rally towards the level of 97.02 when a breakout successfully happens above 96.56. The MACD indicator is entering the overbought territory.

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H1 chart's resistance levels: 96.56 / 97.02

H1 chart's support levels: 96.30 / 95.83

Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the US dollar index breaks with a bullish candlestick; the resistance level is seen at 96.56, take profit is at 97.02, and stop loss is at 96.11.

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Technical analysis of EUR/USD for October 23, 2015

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When the European market opens, some economic news on the Belgian NBB Business Climate, Italian Retail Sales m/m, Flash Services PMI, Flash Manufacturing PMI, German Flash Services PMI, German Flash Manufacturing PMI, French Flash Services PMI, and French Flash Manufacturing PMI is due to be released. The US will unveil economic data on the Flash Manufacturing PMI. So amid the reports, EUR/USD will move with low to medium volatility during this day.

TODAY TECHNICAL LEVELS:

Breakout BUY Level: 1.1136.

Strong Resistance:1.1130.

Original Resistance: 1.1119.

Inner Sell Area: 1.1108.

Target Inner Area: 1.1082.

Inner Buy Area: 1.1056.

Original Support: 1.1045.

Strong Support: 1.1034.

Breakout SELL Level: 1.1028.

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 23, 2015

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In Asia, Japan will release data on the Flash Manufacturing PMI. The US will publish economic data on the Flash Manufacturing PMI. So, there is a strong probability that the USD/JPY pair will move with low to medium volatility during this day.

TODAY TECHNICAL LEVELS:

Resistance. 3: 121.38.

Resistance. 2: 121.14.

Resistance. 1: 120.91.

Support. 1: 120.62.

Support. 2: 120.39.

Support. 3: 120.15.

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 GBP/USD for October 23, 2015

The GBP/USD pair fell by over 100 pips during yesterday's session after it had found strong resistance around the level of 1.5500. Currently, we're seeing a possible lower low pattern formation below the 200 SMA and very close to the support zone of 1.5374. That level should be broken in order to do a bearish continuation towards the level of 1.5339. Our preferred scenario points to a rebound at the current stage. The MACD indicator is still at the negative territory.

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H1 chart's resistance levels: 1.5411 / 1.5458

H1 chart's support levels: 1.5374 / 1.5339

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 1.5411, take profit is at 1.5458, and stop loss is at 1.5362.

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Technical analysis of USD/JPY for October 22, 2015

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USD/JPY is expected to trade in a higher range as bias remains bullish. Overnight, US stocks declined, dragged by falling healthcare and biotech shares. The Dow Jones Industrial Average declined 0.3% to 17,168, the S&P 500 lost 0.6% to 2,018, and the Nasdaq Composite dropped 0.8% to 4,840. Nymex crude oil fell 2.4% to $45.20 per barrel and gold was down 0.9% at $1,167 per ounce. The benchmark 10-year Treasury yield dropped to 2.030% from 2.071% in the previous session. Meanwhile, the US dollar strengthened against most other major currencies, in particular, against commodity-based ones amid growing concerns about slowing global growth. USD/CAD surged 1.2% to 1.3137 as Canada's central bank held interest rates unchanged while lowering its forecasts on the country's economic growth for the next two years. The pair continues being supported by a rising trend line, while trading around the 20- and 50-period intraday moving averages (MA). Meanwhile, the intraday relative strength index (RSI) is mixed to bullish around the neutrality level at 50. The intraday outlook remains bullish and the pair is expected to proceed towards the first upside target at 120.55 (last seen on October 12).

Trading recommendations:

The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. As long as the price holds above its pivot point, long positions are recommended with the first target at 120.55 and the second target at 120.80. In the alternative scenario, short positions are recommended with the first target at 119.60 if the price moves below its pivot points. A break of this target is likely to push the pair further downwards, and one may expect the second target at 119.25. The pivot point is at 119.95.

Resistance levels:120.55 120.80 121.25

Support levels: 119.60 119.25 118.90

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Technical analysis of USD/CHF for October 22, 2015

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USD/CHF is expected to trade in a higher range. The pair remains on the upside above its rising 20- and 50-period intraday MAs. The formation of higher highs and lows remains intact, and this should confirm a positive outlook. Moreover, a support at 0.9670 should prevent any downward attempts. At last, the RSI is well directed, calling for a new rebound. To sum up, as long as 0.9670 is not broken, advance to 0.9740 and 0.9775 in extension is 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 0.9740 and the second target at 0.9775. In the alternative scenario, short positions are recommended with the first target at 0.9645 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 0.96. The pivot point is at 0.9670.

Resistance levels: 0.9740 0.9775 0.9815

Support levels: 0.9645 0.96 0.9550

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Technical analysis of USD/CHF for October 22, 2015

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USD/CHF is expected to trade in a higher range. The pair remains on the upside above its rising 20- and 50-period intraday MAs. The formation of higher highs and lows remains intact, and this should confirm a positive outlook. Moreover, a support at 0.9670 should prevent any downward attempts. At last, the RSI is well directed, calling for a new rebound. To sum up, as long as 0.9670 is not broken, advance to 0.9740 and 0.9775 in extension is 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 0.9740 and the second target at 0.9775. In the alternative scenario, short positions are recommended with the first target at 0.9645 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 0.96. The pivot point is at 0.9670.

Resistance levels: 0.9740 0.9775 0.9815

Support levels: 0.9645 0.96 0.9550

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Technical analysis of NZD/USD for October 22, 2015

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NZD/USD is expected to trade in a higher range. The pair has accelerated to the upside after breaking above its previous high at 0.6725, which is currently playing a key support role. The intraday RSI is well directed and calls for further upside as well. Further upside is therefore expected with the next horizontal resistance and overlap set at 0.6845 at first. A break above this level would call for further advance towards 0.69 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 0.6845 and the second target at 0.69. In the alternative scenario, short positions are recommended with the first target at 0.67 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 0.6650. The pivot point is at 0.6725.

Resistance levels: 0.6845 0.69 0.6925 Support levels: 0.67 0.6650 0.6600

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Technical analysis of GBP/JPY for October 22, 2015

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GBP/JPY is expected to trade in a higher range as bias remains bullish. The pair stays above its key support at 184.60 and is moving sideways. Even though a continuation of the consolidation cannot be ruled out, its extent should be limited. Further upside is therefore expected with the next horizontal resistance and overlap set at 185.80 at first. A break above this level would call for further advance towards 186.45 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 185.80 and the second target at 185.80. In the alternative scenario, short positions are recommended with the first target at 184.05 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 183.60. The pivot point is at 184.60.

Resistance levels: 185.80 186.45 187.25

Support levels: 184.05 183.60 183

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GBP/USD intraday technical levels and trading recommendations for October 22, 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, 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 were advised to wait for a bullish pullback towards the level of 1.5480 for a low-risk sell entry.

This sell position was triggered last week on Wednesday. S/L should remain above 1.5530. T/P levels to be located at 1.5330 then 1.5150 later on.

Note that bearish persistence below the level of 1.5330 is needed for a further bearish decline towards the levels of 1.5100 and 1.5050. Otherwise, further bearish decline will be hindered.

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USD/CAD intraday technical levels and trading recommendations for October 22, 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 have moved further above the resistance level, which was bypassed on September 23.

A significant bearish rejection was observed around 1.3450 where 141.4% Fibonacci Expansion was roughly located.

Later on October 1, bearish persistence below 1.3270 (Fibonacci Expansion 100%) was expressed 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 zone of 1.3075-1.3100 constitutes an intraday resistance to be watched for intraday sell entries.

As anticipated, it offered a valid sell position on Tuesday last week and it's being revisited again today.

The current price levels may offer another SELL entry if enough bearish rejection is expressed by the end of the day (Daily candlestick closure below 1.3075).

On the other hand, daily persistence above 1.3100 exposes the price level of 1.3270 (Fibonacci Expansion 100%) again.

Generally, the USD/CAD pair remains trapped between the levels of 1.2800 and 1.3100 until a breakout in either direction occurs.

Trading recommendations:

Conservative traders should wait for bearish pullbacks towards the recent breakout zone (1.2800-1.2750) for a valid buy entry as the breakout level acts as strong support.

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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