Technical analysis of GBP/USD for October 26 2015

Technical outlook and chart setups:

The GBP/USD pair is trading lower around 1.5330 now after having reversed from the levels of 1.5500 earlier. Please note that the pair has responded to the convergence of fibonacci and trend -line resistance around 1.5500 as depicted here. The pair is expected to head lower towards 1.4950 from here if an above count is correct. Bears should remain in control until prices stay below 1.5500. It is hence recommended to sell on intraday rallies ahead of 1.5400/50 with risk above 1.5500. Immediate support is seen at 1.5200 followed by 1.5100, 1.4950, and lower, while resistance is seen at 1.5500 and higher.

Trading recommendations:

Sell above 1.5400, stop is above 1.5500, a target is at 1.4950.

Good luck!

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

Technical analysis of EUR/USD for October 26 2015

Technical outlook and chart setups:

The EUR/USD pair dropped to the level of 1.1000 last week and this could still be the beginning of a larger correction unfolding, that could bring the pair to parity against the buck. The H4 chat shows that smaller waves are unfolding. It looks like the first leg down has been done. We expect a pullback towards at least the level of 1.1140/50. Hence recommendations are to remain flat and look for an opportunity to sell during an intraday rally through 1.1140/50 and 1.1300 respectively. Immediate support is seen at 1.0990 followed by 1.0850 and lower, while resistance is seen at 1.1140 followed by 1.1370 and higher.

Trading recommendations:

Sell during intraday rallies.

Good luck!

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

Technical analysis of Gold for October 26 2015

Technical outlook and chart setups:

Gold dropped lower to the $1,160.00 levels last Friday producing a bearish engulfing candlestick pattern and thus indicating further downside. The metal is pulling back for now, but intraday rallies should be capped below the $1,180.00 levels for now. It is recommended to remain flat for now and initiate long positions on a drop at the $1,137.00 levels. Immediate support is seen at the $1,150.00 levels, followed by $1,140.00, $1,100.00 and lower, while resistance is seen at the $1,180.00 levels, followed by $1,190.00 and higher.

Trading recommendations:

Remain flat for now, look to buy lower.

Good luck!

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

Technical analysis of Silver for October 26 2015

Technical outlook and chart setups:

Silver has dropped from the sub-levels $16.00 earlier as expected. Intraday rallies are now to remain capped well below the $16.10 levels, which is interim resistance. As shown here, the metal might be unfolding a correction (3 waves), which could end around the $15.00 levels. It is hence recommended to remain flat for now and wait for a correction lower to initiate fresh long positions. Immediate support is seen at the $15.40 levels, followed by $15.00 levels, $14.40 and lower, while resistance is seen at the $16.10 levels (interim), followed by $16.50 and higher.

Trading recommendations:

Remain flat for now OR short with stop at $16.50, target is $15.30.

Good luck!

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

Technical analysis of EUR/JPY for October 26 2015

Technical outlook and chart setups:

The EUR/JPY pair has dropped to its previous support area around thte 133.00 levels as seen here. The pair is most likely to be expected to stay at least a counter-trend rally, extending through the 135.00 levels. It is hence recommended to initiate 50% long positions with risk just below the 133.00 levels. Immediate support is seen through the 133.00 levels, followed by 132.25 and lower, while resistance is seen through the 134.00/25 levels, followed by 136.00, 137.00 and higher. The pair might continue consolidating between its defined resistance and support levels for a while, before breaking out.

Trading recommendations:

Initiate 50% long positions, stop is below 133.00, target is open.

Good luck!

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

Technical analysis of USD/JPY for October 26, 2015

USDJPYM30.png

USD/JPY is expected to trade with bullish bias. US stocks continued advancing last Friday as sentiment was boosted by China's rate cut and strong earnings reported by a number of big technology firms. The Dow Jones Industrial Average rose 0.9% to 17,646, the S&P 500 gained 1.1% to 2,075 turning positive for the year, and the Nasdaq Composite was up 2.3% at 5,031. Nymex crude oil ended down 1.7% at $44.60 a barrel, gold edged down 0.2% to $1,163 an ounce, while the benchmark 10-year Treasury yield settled at 2.081%, up from 2.025% in the previous session. Meanwhile, the US dollar strengthened broadly against most other major currencies with the Wall Street Journal Dollar Index climbing 0.6% to a 3-week high of 88.69. The pair remains on the upside after reaching as high as 121.48 last Friday. The 20-period intraday moving average (MA) is standing above the 50-period one, while the intraday relative strength index (RSI) is around the neutrality level at 50. While the pair is likely to enter a consolidation after last Friday's rebound, the consolidation's extent is expected to be limited. As long as 120.40 holds as the key support, the pair is likely to rise towards the first upside target at 121.70 (last seen on August 28) and 122.30 (last seen on August 21) 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 121.70 and the second target at 122.30. In the alternative scenario, short positions are recommended with the first target at 120.10 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 119.55. The pivot point is at 120.40.

Resistance levels:121.70 122.30 122.85

Support levels: 120.10 119.55 119.20

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

Technical analysis of GBP/CHF for October 26 2015

Technical outlook and chart setups:

The GBP/CHF pair has taken out initial resistance at 1.4920 earlier and is now setting up for the 1.5120 levels as seen here. Please note that the pair is now in the buy zone of its downtrend line coming from the 1.5400/10 levels. A push through the 1.5120 levels could trigger a meaningful retracement lower towards the 1.4700 levels. It is hence recommended to initiate fresh long positions on a dip/retracement lower. Immediate support is seen at the 1.4700 levels, followed by 1,4650, 1.4550 and lower, while resistance is seen at the 1.5120 levels, followed by 1.5350 and higher.

Trading recommendations:

Initiate fresh long positions on the pullback towards the 1.4700 levels.

Good luck!

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

Technical analysis of USD/CHF for October 26, 2015

USDCHFM30.png

USD/CHF is expected to trade with bullish bias. From a technical point of view, the pair is bouncing off its key support base around 0.9710, and is heading up towards 0.9845. The immediate trend is up, and the momentum is strong. Furthermore, the rising 20- and 50-period MAs play support roles, and should prevent any potential downsides. To sum up, as long as 0.9710 is not broken, a further advance seems to be on the cards to 0.9845 and 0.99 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 0.9845 and the second target at 0.99. 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 0.9710.

Resistance levels: 0.9845 0.99 0.9945

Support levels: 0.9645 0.96 0.9550

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

Technical analysis of NZD/USD for October 26, 2015

NZDUSDM30.png

NZD/USD is under pressure and is expected to trade in a lower range. The pair remains under pressure following the recent downside breakout of its 20- and 50-period MAs on an intraday basis. The key resistance at 0.6820 has been formed and it should limit any upward attempts. Furthermore, the intraday RSI is negative below its neutrality area at 50. Hence, as long as 0.6820 is not surpassed, a decline to 0.6735, and then to 0.6700 is possible.

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 0.6735. A breakout of that target will move the pair further downwards to 0.67. The pivot point stands at 0.6820. 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 0.6865 and the second target at 0.69.

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

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

Technical analysis of GBP/JPY for October 26, 2015

GBPJPYM30.png

GBP/JPY is expected to trade with a bullish bias. The pair broke above its 20-period and 50-period MAs and accelerated to the upside, while the 20-period MA is acts as support. The intraday RSI is above its neutrality level and lacks downward momentum. As long as 185.10 holds on the downside, look for a move further upside towards 186.25. A break above this level would call for a move further upside towards 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: 184.45 184.05 183.60 183

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

Technical analysis of GBP/USD for October 26, 2015

The weekly technical analysis of GBP/USD pair:

gbpusd_pp.jpg

Trading recommendation:

  • According to the previous events, the GBP/USD is still moving between 1.5375 and 1.5242. The level of 1.5375 represents strong resistance. Also, it should be noted that the level of 1.5382 is coinciding with the ratio of 38.2% Fibonacci retracement levels. The minor support is found at the level of 1.5305. Consequently, we expect a range about 133 pips (1.5375 - 1.5242) in coming two days. Therefore, the market is going to call for a downtrend from the level of 1.5370. Sell below the level of 1.5370 in the long term with the first target at 1.5305, it might resume to 1.5250.

Notes:

  • Major support is seen at 1.5242.
  • The level of 1.5375 represents the weekly pivot point.
  • Major resistance is seen at the level of 1.5382.
  • According to our statistics, the range was between 220 and 300 pips, and the average range was around 260 pips.
GBPUSDH1.png
The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of EUR/USD for October 26, 2015

1445852980_EURUSDH1.png

Overview:

  • The EUR/USD pair opened below the weekly pivot point at the level of 1.1010. Also, it should be noted that today's highest level is set at 1.1055. So, minor resistance is seen at the spot of 1.1060 today. Also, you have to consider the level of 1.0970, which represents strong support on October 26, 2015. Consequently, we expect a range about 90 pips in coming hours. Therefore, the market will probably indicate a bearish opportunity below the level of 1.1060. Thus, according to the previous events, the price is going to move between the levels of 1.1060 and 1.0970. The area below 1.1060 looks good for moving further downside with the first target at the level of 1.0996 and continue towards 1.0970 in order to form a new double bottom in the H1 chart. However, stop loss should be placed above the weekly pivot point at 1.1133.

The weekly technical analysis of EUR/USD pair:

eurusd_pp.jpg

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

EUR/NZD analysis for October 26, 2015

EURNZDDaily.png26.png

EURNZDH1.png26.png

Overview:

Recently, EUR/NZD has been moving upwards. The price tested the level of 1.6343. In the daily time frame, we can observe a neutral bar. Our Fibonacci retracement 50% major held successfully and the price was rejected. Anyway, we can observe successful rejection from our resistance level at 1.6340. The trend is downward and my advice is to watch for potential selling opportunities. Support level is at the level of 1.6150.

Fibonacci Pivot Points :

Resistance levels:

R1: 1.6370

R2: 1.6425

R3: 1.6510

Support levels:

S1: 1.6195

S2: 1.6140

S3: 1.6053

Trading recommendations: Be careful when buying at this stage. Selling positions are preferable.

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

Gold analysis for October 26, 2015

GOLDDaily.png26.png

GOLDH1.png26.png

Overview:

Since our last analysis, gold has been trading downwards. The price tested the level of $1,158.76 in a very high volume. The short- and mid-term trend changed from upward to neutral. In the daily time frame, we can observe a neutral bar in a high volume. In the H1 time frame, we can observe a volume spike (massive selling climax) at the level of $1,158.75. Be careful when selling at this stage since we may expect reaction from buyers. Only if the price breaks the level of $1,158.75, we may see downward continuation.

Daily Fibonacci pivot points :

Resistance levels

R1: 1,164.30

R2: 1,164.80

R3: 1,165.60

Support levels:

S1: 1,162.70

S2: 1,162.10

S3: 1,161.40

Trading recommendations: Be careful when selling gold at this stage and watch for potential buying opportunities. Anyway, the trend is neutral and I am waiting for a clear trend to establish.

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

USDX technical analysis for October 26, 2015

The US dollar index has reached an important resistance area and a pullback is justified at current levels. Bulls should be very cautious in case the index makes full bearish reversal.

usdx.jpg

Red line - resistance

The US dollar index is trading above the Ichimoku cloud. It has already broken the previous high of 96.50. A rejection at the resistance line of 97.25 could push the index back towards the Ichimoku cloud support at 95.50.

usdxd.jpg

Red line -weekly resistance

Green line -weekly support

The USDX bounced from the Ichimoku cloud towards the upper bullish flag boundary and we can see a rejection. It is still too early to get bearish, but this is the level with the best risk-reward ratio. Stop for short positions is very close and a pullback towards the weekly cloud support is justified. Bulls should be very cautious and raise their protective stops.

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

Gold technical analysis for October 26, 2015

Gold price remains inside the bearish short-term channel despite an attempt to move upwards last week to exit the channel. A short-term trend remains bearish as prices have reached our target area of $1,195 plus or minus $5 and reversed. Gold could now be heading towards $1,120 again but bulls could still get another chance at $1,190 or $1,200.

goldh4.jpg

Red lines - bearish channel

Gold price is trading just above the 38% retracement but inside the cloud and the bearish channel. Resistance is found at $1,180 and support is seen at $1,160. Breaking above $1,180 will push the price to $1,190 and might suggest a new higher high towards $1,200 to complete the move from the previous lows. Breaking below $1,160 will widen the chances that a short-term top is in.

goldd.jpg

The weekly chart remains bullish as price has confirmed support at the kijun-sen (yellow line indicator). The price is still below the cloud, which implies that a long-term trend still favors bears. However, a test of the Ichimoku cloud near $1,200 is not out of the question.The material has been provided by InstaForex Company - www.instaforex.com

Global macro overview for 26/10/2015

Global macro overview for 26/10/2015:

In the Sunday interview for the Mail on Sunday newspaper, Bank of England Governor Mark Carney said the interest rate rise is not certainty, but households should prepare for higher borrowing costs. This are completely different words than the last hawkish remarks about the possible rate hike that might come even around the turn of the year. Please notice that markets are not expecting the BoE rate hike until late 2016 or early 2017 mainly due to Britain's near-zero inflation, global growth concerns (China) and lack of the decision from the US FED as well.

The GBP/USD pair is slowly going down after a failure in breaking the resistance at the level of 1.5508. Currently, it trades just above the golden trend line and the next support is seen at the level of 1.5299.

gbpusd.jpg

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

Global macro overview for 26/10/2015

Global macro overview for 26/10/2015:

Crude oil prices closed on lows last Friday, despite the fact that China's latest rate hike raised hopes for a stronger demand from one of the world's largest economy and powerful energy consumer. The People's Bank of China (PBOC) cut its lending rate by 25 basis points to 4.35 percent in its latest effort to boost the Chinese economic growth. This helped oil prices for a while, but at the end of the day negative sentiment towards persistent concerns over a glut in global crude oil supply has return to the markets anyway.

The crude oil technical picture shows the price coming back to the congestion and it is trading just above the technical support at the level of 43.17.

oil.jpg

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

Technical analysis of EUR/JPY for October 26, 2015

General overview for 26/10/2015 08:10 CET

The abc green structure had been completed and the current low at 133.36 might be the bottom for the wave E black and the whole corrective structure might be completed. Nevertheless, there is no market confirmation of this scenario yet, so we need to wait and see if any impulsive structure to the upside develops.

Support/Resistnace:

133.65 - Intraday Support

134.25 - Intraday Resistance

134.31 - Weekly Pivot

135.24 - WR1

Trading recommendations:

Day traders should consider buying on dips in this market, with SL below the level of 133.65 and TP at the level of 134.25.

eurjpy_h1.jpg

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

Technical analysis of USD/CAD for October 26, 2015

General overview for 26/10/2015 07:50 CET

An alternative count has been added to overall labeling. This count indicates a possible continuation of a corrective cycle in wave 4 purple in case it evolves into a more complex pattern. The main count however is still pointing upwards as the market traders inside the bullish zone. The waves (i) and (ii) green looks completed, so now it might be the time to develop a more vertical move upward in wave (iii) green.

Support/Resistnace:

1.2812 - WS2

1.2858 - Technical Support

1.3019 - WS1

1.3044 - Intraday Support

1.3109 - Weekly Pivot

1.3197 - Intraday Resistance

1.3316 - WR1

Trading recommendations:

Day traders should consider buying on dips in this market, with SL below the level of 1.3044 and TP above 1.3197.

usdcad_h1.jpg

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

Elliott wave analysis of EUR/NZD for October 26, 2015

2015-10-26-EURNZD-4H.png

Wave summary:

Our target at 1.6075 was close to being tested on Friday with a low at 1.6124. We still expect more downside room towards 1.6075 and maybe even lower to 1.5882 before the bottom is in place for a correction back to 1.6800 and even higher.

Short-term resistance is found at 1.6338 and again at 1.6390, but only a breakout above resistance at 1.6546 will turn the picture bullish from here.

We will buy EUR at 1.6080 for a rally back to at least 1.6800 or possibly even closer to 1.6950.

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

Elliott wave analysis of EUR/JPY for October 26, 2015

2015-10-26-EURJPY-4H.png

Wave summary:

The first wave iii target at 132.98 has almost been tested, and I would continue to look lower for a firm test of this target and even lower to the 200% extension target at 132.17 where strong support will be found. If the later target is broken too, the way lower to 126.05 and below should be cleared.

Resistance at 134.27 should be able to protect the upside for a decline to 132.98 and even lower.

Trading recommendation:

We are short EUR from 135.95 and take profit is at 133.00. We will move our stop lower to 134.30. As we are getting closer to a possible low for wave iii, we recommend waiting to sell EUR close to 134.27 in wave iv.

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

Technical analysis of EUR/USD for October 26, 2015

!_EURUSD.jpg

When the European market opens, some economic news on the German Buba Monthly Report and German Ifo Business Climate is due to be released.The US will publish data on the New Home Sales. So amid the reports, EUR/USD will move with low to medium volatility during this day.

TODAY TECHNICAL LEVELS:

Breakout BUY Level: 1.1071.

Strong Resistance:1.1065.

Original Resistance: 1.1054.

Inner Sell Area: 1.1043.

Target Inner Area: 1.1017.

Inner Buy Area: 1.0991.

Original Support: 1.0980.

Strong Support: 1.0969.

Breakout SELL Level: 1.0963.

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 26, 2015

!_USDJPY.jpg

In Asia, Japan will not release any economic data, but the US will publish economic news about New Home Sales. So, there is a strong probability that the USD/JPY pair will move with low to medium volatility during the day.

TODAY TECHNICAL LEVELS:

Resistance. 3: 121.74.

Resistance. 2: 121.50.

Resistance. 1: 121.26.

Support. 1: 120.97.

Support. 2: 120.73.

Support. 3: 120.49.

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 major pairs for October 26, 2015

EUR/USD: The EUR/USD pair is in a strong bearish mode now having fallen by 350 pips last week. The bias is bearish, and the price is supposed to go further south this week. But the price needs to break the psychological support line at 1.1000 to the downside. While this might look like a hard job for bears, it is attainable.

1.png

USD/CHF: A movement in the USD/CHF is largely dictated by movements in EUR/USD. Therefore strength was transferred indirectly by weakness in the latter. From the support level of 0.9500, the price moved by 300 pips upwards. Now it is very close to the resistance level of 0.9800. In case the price goes above that resistance level (which is very much likely), the next target for bulls would be another resistance level at 0.9900.

2.png

GBP/USD: The cable was unable to make any meaningful rally last week because bulls met a stubborn impediment at the distribution territory of 1.5500. In fact, the price simply went down last week resulting a "sell" signal in the market. The price needs to go further down, so that the "sell" signal could be valid. The cable might be under selling pressure as long as the EUR/USD pair is weak enough. They are both positively correlated.

3.png

USD/JPY: The USD/JPY pair nicely trended upwards last week ending the recent protracted equilibrium phase in the market. Since October 15, 2015, the price has moved upwards by roughly 350 pips almost reaching the supply level of 121.50. This week, we anticipate a further northward movement, which may enable the price to reach the resistance levels of 122.00 and 122.50.

4.png

EUR/JPY: Due to sudden weakness in the EUR, the EUR/JPY cross rapidly fell in the last few days previouse week. There is now a Bearish Confirmation Pattern in the market, which would most probably continue as long as the EUR is weak. The only factor that can reverse this is a situation is which the YEN becomes weaker than the EUR.

5.png

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

Daily analysis of USDX for October 26, 2015

The USDX is currently forming a higher high pattern above the support level of 96.85 after another bullish momentum gained during Friday's session. The 200 SMA is slightly bullish on the H1 chart and we expect a rally to unfold towards the resistance level of 97.51 following a breakout in the zone of 97.16. If the index starts making pullbacks at a current stage, it could fall towards the level of 96.56 in a corrective bias. The MACD is still at the positive territory.

USDXH1.png

H1 chart's resistance levels: 97.16 / 97.51

H1 chart's support levels: 96.85 / 96.56

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 97.16, take profit is at 97.51, and stop loss is at 96.81.

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

Daily analysis of GBP/USD for October 26, 2015

On the H1 chart, there is a pullback in progress from the 200 SMA until the support level of 1.5306, where the GBP/USD pair is expected to find a bottom. A rebound over there will push the pair towards the resistance level of 1.5339, where a breakout can happen for another rally towards the zone 1.5374. The 200 SMA is slightly pointing to the downside. Our short-term outlook remains bullish as long as the pair continues to trade above the level of 1.5264.

GBPUSDH1.png

H1 chart's resistance levels: 1.5339 / 1.5374

H1 chart's support levels: 1.5306 / 1.5264

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 1.5339, take profit is at 1.5374, and stop loss is at 1.5305.

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