Technical analysis of USD/CHF for January 22, 2016

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The USD/CHF pair is likely to advance further. The intraday technical picture of USD/CHF is positive now after yesterday's strong rebound. A support base around 1.0065 has been formed, which suggests stabilization. Besides, a bullish cross has been identified between the 20-period and 50-period moving averages. The relative strength index is also bullish, displaying upward momentum. Therefore, as long as 1.0065 holds on the downside, further advance is expected to 1.0175 (Jan. 19 top) and 1.0214 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 1.0175 and the second target at 1.0215. In the alternative scenario, short positions are recommended with the first target at 1.0030 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 0.9990. The pivot point is at 1.0065.

Resistance levels: 1.0175, 1.0215,1.0245

Support levels: 1.0030, 0.9990, 0.9955

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Technical analysis of USD/JPY for January 22, 2016

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The USD/JPY pair is expected to trade in higher range. Overnight major U.S. stock indexes rallied thanks to rebound of oil prices and ECB President Mario Draghi's comments hinting at more easing for Europe. Apart from energy shares, shares in consumer durables & apparel and telecoms sectors also performed well. Crude oil rebounded by 4.2% to $29.53 per barrel on Nymex . The Dow Jones Industrial Average added 0.7% to 15,882, the S&P 500 gained 0.5% to 1,868, while the Nasdaq Composite was broadly flat at 4,472.

Gold edged up less than 0.1% to $1,101 an ounce, while the benchmark 10-year Treasury yield rose to 2.021% from 1.982% in the previous session.

On the Forex front, EUR/USD posted a choppy session overnight -- it plunged to a day-low of 1.0777 after ECB chief's comments, and bounced back to as high as 1.0900 before declining again. At the same time, with oil prices' rally and short-position-covering in progress, USD/CAD continued its slide falling 1.7% to 1.4261. Meanwhile, USD/JPY gained 0.7% to 117.68, while AUD/USD rose 1.3% to 0.6996 and NZD/USD was up 1.5% to 0.6524.The pair continues on its rebound, posting a pattern of higher highs. Currently it is supported by the ascending 20-period (30-minute chart) moving average which stands above the 50-period one. The intraday relative strength index remains above the neutrality level of 50. On such a bullish background, the pair should retake the first upside target at 118.80 (around the high of January 19) before rising toward the second one at 119.15 (a key resistance seen on January 13).

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 118.80 and the second target at 119.15. In the alternative scenario, short positions are recommended with the first target at 117.45 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 117.10. The pivot point is at 118.

Resistance levels: 118.80, 119.15, 119.45

Support levels: 117.45,117.10,116.75

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

Technical analysis of NZD/USD for January 22, 2016

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NZD/USD is turning upwards hitting its strong support area around 0.6345. The 20-period moving average has clearly reversed up, and also broke above the 50-period one generating a positive signal. The relative strength index is well directed above its 70% area, which suggests that the pair may be overbought at the current stage. Nevertheless, as long as 0.6385 (our stop loss) is not broken, a further advance to 0.6475 and 0.6510 is expected.

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 0.6560 and the second target at 0.6610. In the alternative scenario, short positions are recommended with the first target at 0.6410 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 0.6350. The pivot point is at 0.6460.

Resistance levels: 0.6560, 0.6610, 0.6650

Support levels: 0.6410, 0.6350, 0.63

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

Technical analysis of GBP/JPY for January 22, 2016

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GBP/JPY is expected to trade in a higher range. The pair is reversing up and stands above its key support at 167.80. The 20-period moving average has just crossed above the 50-period one. Further upside is therefore expected with the next horizontal resistance and overlap set at 170.60 at first. A break above this level would call for further advance towards 171.40 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 170.60 and the second target at 171.40. In the alternative scenario, short positions are recommended with the first target at 166.80 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 166.15. The pivot point is at 167.80.

Resistance levels: 170.60, 171.40, 172

Support levels: 166.80, 166.15, 165.50

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

Daily analysis of EUR/JPY for January 22, 2016

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Overview

According to the H4 chart, we stay cautious about strong support from 126.09 and a possible rebound. A break of the 129.07 support turned into resistance will turn bias to the upside for 134.58 resistance. However, a sustained break of 126.09 will carry larger bearish implications. Price actions from the 149.76 medium-term top is viewed as development of a corrective pattern. At this point, as long as 126.09 support holds, we expect a sideways pattern between 126.09 and 149.76 in the medium term to be followed by an upside breakout at a later stage. However, a decisive break of 126.09 will raise some question over this outlook and would bring deeper fall at least to 61.8% retracement at 115.36.

Daily Pivots: (S1) 126.70; (P) 127.44; (R1) 128.73

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

Daily analysis of Silver for January 22, 2016

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Overview

The silver price keeps moving around the 13.96 level, and the price is still confined inside the sideways range that appears on the pictured chart, fluctuating between the 13.65 support and 14.25 resistance, while it needs to breach one of these levels to detect next targets on a short-term basis. Therefore, we still suggest the domination of the sideways range on the upcoming trading, reminding you that breaking the mentioned range's support will lead the price to visit the 13.00 level direct. However, breaching the resistance will push trading for bullish correction that its main targets reach 15.30. The silver price shows some slight bullish bias heading towards the sideways range resistance located at 14.25, while stochastic reaches the overbought areas, becoming negative factor that might push the price to bounce bearishly again.

Therefore, there is no change in the sideways trading scenario that will remain valid until the price managed to breach one of the sideways range lines represented by the 13.65 support and 14.25 resistance.

The expected trading range for today is between 13.65 support and 14.40 resistance.

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

Daily analysis of GBP/JPY for January 22, 2016

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Overview

The short-term bottom is likely to be in place at 163.96, just ahead of the 161.8% projection of 195.86 to 180.36 from 188.79 at 163.71, on bullish convergence condition in the 4-hour MACD. Intraday bias has turned neutral first. Intraday bias is turned neutral first. Breaks above the minor resistance of 169.09 will bring a stronger rebound. Meanwhile, a break of 163.96 will target the 200% projection at 157.79. A fall from 195.86 is currently viewed as a correction. The 38.2% retracement of 116.83 to 195.86 at 165.67 has already been met. Based on the current momentum, the correction would likely extend to 61.8% retracement at 147.01 before completion.

Daily Pivots: (S1) 165.28; (P) 166.49; (R1) 168.54

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