NZD/USD intraday technical levels and trading recommendations for January 27, 2016

nzddailyy.pngnzdh4.png

On December 30, a significant bearish rejection took place around the level of 0.6840 (daily resistance level) similar to what happened previously on October 23.

Moreover, a daily closure below 0.6750 allowed a quick bearish decline to occur initially towards the level of 0.6500, which was broken to the downside as well.

The daily chart illustrates a double-top reversal pattern. An obvious bearish breakdown of the depicted support level at 0.6400 should be executed in order to confirm the reversal pattern.

However, the levels of 0.6400-0.6350 constituted a significant support zone, which corresponded to the backside of a broken downtrend line. Hence, a strong bullish rejection was expressed on January 20.

Last week, bullish persistence above 0.6500 was mandatory to keep pushing the NZD/USD pair towards higher bullish targets.

However, on Friday, a lower high has been expressed off the price level of 0.6530. This enhanced the bearish side of the market and brought the NZD/USD pair towards the depicted support level at 0.6400 again.

Yesterday, the depicted support level at 0.6400 stood as a prominent Key-Level, which offered a valid buy entry as expected. The suggested position is running in profits now. S/L should be moved to 0.6430 to secure some profits.

Bullish persistence above 0.6500 is currently needed to keep moving towards higher bullish targets. An initial target is located at 0.6590.

Otherwise, a bearish closure below 0.6500 brings another bearish correction towards 0.6370 (considered a low probability).

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

USD/CAD intraday technical levels and trading recommendations for January 27, 2016

cadweekly.pngcaddaily.png

A bullish breakout above the previous consolidation zone between 1.2400 and 1.2800 was performed on July 15 (shown on the weekly chart).

Significant bearish rejection was observed around 1.3450. Hence, another consolidation range was established between 1.3450 and 1.2800.

On December 7, a bullish breakout above 1.3450 (the upper limit of the recent consolidation range) enhanced the bullish side of the market. Hence, a bullish visit towards the resistance level of 1.4150 (Fibonacci Expansion 100%) was executed.

Bullish persistence above 1.4150 enhanced the bullish side of the market towards 1.4600 (141.4% Fibonacci expansion) where evident bearish rejection was expected (a bearish engulfing weekly candlestick).

The level of 1.4150 (Fibonacci Expansion 100%) remains a significant key-level to be watched for price reaction during today's consolidation.

On the other hand, the price zone of 1.3370-1.3400 remains a significant support zone to be watched for valid buy entries if the current bearish momentum persists below the mentioned key level (1.4100).

Trading recommendations:

As we expected, a valid sell entry was offered around 1.4650 (141.4% Fibonacci expansion). It is already running in profits.

S/L should now be lowered to 1.4350, while the next T/P level remains projected at 1.4000 if USD/CAD bears manage to maintain enough bearish momentum below 1.4100 (Fibonacci Expansion 100%).

On the other hand, conservative traders should wait for a daily candlestick closure below the level of 1.4100 to sell the USD/CAD pair. S/L should be located above 1.4150. Initial T/P levels should be located at 1.4000 and 1.3850.

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

Technical analysis of USD/JPY for January 27, 2016

USDJPYM30.png

USD/JPY is expected to trade with bullish bias. Overnight, U.S. stocks rebounded as oil shares climbed with rallying crude prices. Better-than-expected quarterly results posted by large firms like Johnson & Johnson and 3M also contributed to the rise. The Dow Jones Industrial Average gained 1.8% to 16,167, the S&P 500 rose 1.4% to 1,903, while the Nasdaq Composite was up 1.1% to 4,567.

Nymex crude oil rose 3.7% to $31.45 a barrel, and gold gained another 1.3% to $1,121 an ounce.

While U.S. Federal Reserve officials began a two-day meeting over the monetary policy, the benchmark 10-year Treasury yield eased further to 1.996% from 2.022% in the previous session.

Meanwhile, the U.S. dollar weakened against commodity currencies, with USD/CAD plunging 1.2% to 1.4114, giving back all gains made on Monday. AUD/USD rebounded 0.7% to 0.7002 and NZD/USD was up 0.7% to 0.6497. At the same time, EUR/USD rose 0.2% to 1.0869; and GBP/USD was up 0.7% to 1.4350.

Overnight, the pair rebounded to as high as 118.62 from a low of 117.62. Currently, it keeps trading on the upside and is seeking support from the 50-period (30-minute chart) moving average. The 20-period moving average still stands above the 50-period one. As long as 117.90 holds as the key support, the pair should continue its rebound and rise towards the first upside target at 118.85 (resistance tested repeatedly on January 22-25). However, in case of breaches below 117.95, expect a further decline towards 117.60 (around yesterday's low).

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 118.60 and the second target at 168.85. In the alternative scenario, short positions are recommended with the first target at 117.60 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 117.18. The pivot point is at 117.90.

Resistance levels: 118.60, 118.85, 119.25

Support levels: 117.60, 117.18, 116.75

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

Technical analysis of USD/CHF for January 27, 2016

USDCHFM30.png

USD/CHF is turning downwards. The pair bounced off its resistance around 1.0175 and 1.020 and reversed down. The 20-period moving average has crossed above the 50-period one, and both of them play resistance roles. The relative strength index is negative below its neutrality area at 50. In these perspectives, as long as the mark of 1.0200 (our pivot point) is not broken, look for further decline to 0.6520 and 0.6550 in extension. Alternatively, breaches below 0.6470 will likely lead to a decline 0.6430 and 0.6410 as targets.

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 1.0110. A break of that target will move the pair further downwards to 1.0065. The pivot point stands at 1.0200. 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 1.0230 and the second target at 1.0260.

Resistance levels: 1.0230, 1.0260, 1.0295

Support levels: 1.0110, 1.0065,1.0030

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

Technical analysis of NZD/USD for January 27, 2016

NZDUSDM30.png

NZD/USD is expected to trade in a lower range. Its key resistance stands at 0.6520. The pair stays below its key resistance at 0.6520 and remains on the downside. The descending 50-period moving average maintains a bearish bias. The first target to the downside is therefore set at 0.6455. A break below this level would open the way to further weakness towards 0.6430.

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 0.6455. A break of that target will move the pair further downwards to 0.6430. The pivot point stands at 0.6520. 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 0.6550 and the second target at 0.6580.

Resistance levels: 0.6550, 0.6580, 0.6610

Support levels: 0.6455, 0.6430, 0.64

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

Technical analysis of GBP/JPY for January 27, 2016

GBPJPYM30.png

GBP/JPY is expected to trade with bullish bias. The pair stands above its key support at 168.30 and is supported by its 20-period moving average, which stays above the 50-period one. Meanwhile, the relative strength index lacks downward momentum. Further upside is therefore expected with the next horizontal resistance and overlap set at 170.30 at first. A break above this level would call for further advance toward 171.35 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 167 and the second target at 166.05. In the alternative scenario, short positions are recommended with the first target at 170.35 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 171.35. The pivot point is at 168.30.

Resistance levels: 170.35, 171.35, 172

Support levels: 167, 166.05, 165.50

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

EUR/NZD analysis for January 27, 2016

1453894100_EURNZDDaily27.png

1453894108_EURNZDH427.png

Overview:

Recently, EUR/NZD has been moving sideways in the area of 1.6720. In the daily time frame, we can observe a bearish bar, but in a low volume, which is a sign of indecision. I placed Fibonacci retracement to find potential resistance and I found Fibonacci retracement 61.8% at the level of 1.7180 (successfully held few days ago). In the H4 time frame, the price has broken our intraday upward trend line, and we may see a possible downward movement. Be careful when buying and watch for potential selling opportunities.The short-term take profit zone is set at the level of 1.5850.

Fibonacci Pivot Points:

Resistance levels:

R1: 1.6850

R2: 1.6900

R3: 1.7000

Support levels:

S1: 1.6665

S2: 1.6610

S3: 1.6515

Trading recommendations: Intraday trend is downward. Watch for potential selling opportunities.

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

Technical analysis of USD/CAD for January 27, 2016

USDCADH1.png

Overview:

  • Yesterday, the trend was calling for a strong bearish market for that it broke most of major supports. So, the USD/CAD pair broke major supports at the levels of 1.4257 and 1.4151. Moreover, the daily pivot point was calculated at 1.4151 and currently the price sets at 0.4130. At this point, we have two probabilities that lies in:
  • First case:
  • If the trend is able to break the daily pivot point at 1.4151, an upside movement will probably start in this area and recovery will begin again. Thus, the market will indicate a bullish opportunity above the level of 1.4151. It will be a good idea to buy above the level of 1.4151 with the first target at 1.4196 and continue towards 1.4257 in order to test the first support on January 27, 2016.
  • Second case:
  • The The market is still calling for a strong bearish movement below the spot of 1.4150. In consequence, the trend will call for a bearish market below the level of 1.4150 since there is a bearish channel. Sell below the level of 1.4150 with the first target at 1.4044 in order to form a double bottom, it might resume to 1.3969 (support 1). On the other hand, if a breakout at 1.4151 occurs, it will be a good location for placing stop loss at the level of 1.4200.

Daily technical levels:

  • R2: 1.4432
  • R1: 1.4257
  • PP: 1.4151
  • S1: 1.3976
  • S2: 1.3870
The material has been provided by InstaForex Company - www.instaforex.com

Intraday technical levels and trading recommendations for GBP/USD for January 27, 2016

gbpusdweek.png

Few months ago, the market was pushed above the depicted weekly levels at 1.5550 trying to reach the price zone of 1.5900. That's where the depicted Head and Shoulders pattern was expressed.

On November 2015, a bearish engulfing weekly candlestick closed below the level of 1.5200 (the neckline of the Head and Shoulders pattern). This supported the bearish side of the market in the long term.

A quick bearish decline towards the previous weekly level of 1.4950 was expected as a result of the bearish breakout below 1.5200.

Extensive bearish pressure has been applied against the demand levels of 1.4620 and 1.4360. Both of them were broken to the downside.

Shortly after, the GBP/USD pair has moved below 1.4220, evident signs of bullish recovery have been expressed around 1.4075. This resulted in the previous hammer weekly candlestick which closed above 1.4220 indicating extensive bullish rejection.

That is why, the price zone of 1.4360-1.4220 remains a significant demand zone for the GBP/USD pair.

Bullish persistence above 1.4220 and 1.4360 is mandatory to maintain enough bullish strength in the market. The first bullish target is seen at 1.4615.

gbpusddaily.png

During 2015, significant bearish rejection has been expressed around 1.5770 and 1.5230 where a bearish Head and Shoulders reversal pattern was formed. Since then, the market has been trending downwards within the depicted bearish channel.

Few weeks ago, the level of 1.4950 was broken to the downside , constituting a significant supply level.

Daily persistence below 1.4800 (the lower limit of the depicted bearish channel) favored a bearish decline towards 1.4680 and 1.4610 where previous prominent bottoms are located on the GBP/USD daily chart.

Currently, the GBP/USD pair looks oversold as it is moving further below the prominent demand levels of 1.4620 and 1.4360.

That is why, any signs of bullish rejection around the demand level of 1.4220 should be considered a valid buy signal.

Bullish persistence above 1.4360 is mandatory to maintain enough bullish strength into the market. The first bullish target is projected towards 1.4615.

Trading Recommendation:

In the previous articles, traders were advised to take a valid buy entry when the GBP/USD pair achieved a daily closure above the level of 1.4220 on Friday. It is already running in profits now.

Initial T/P levels should be located at 1.4360, 1.4440, and 1.4500, while S/L should be advanced to 1.4200 to offset the associated risk.

For those who missed the initial trade, traders can have another buy entry when the GBP/USD pair achieves a bullish closure above 1.4360. T/P levels would be located at 1.4440, 1.4500, and 1.4600.

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

Gold : analysis for January 27 , 2016

GOLDDaily.png26.png

GOLDH4.png26.png

Overview:

Since our last analysis, gold has been trading upwards. As I expected, the price tested the level of $1,122.73 in a volume above the average. An intraday trend is upward. The price broke our resistance level at $1.111.50 and I found successful re-test, which is a sign that we may see further upward movements. Also. the price is above all key MA`s (SMA 50,100,150,200) according to the 4H time frame. The area around the level of $1,112.00 looks like a good place to open buy positions. The take-profit zone is set at the level of $1,134.00 (Fibonacci retracement 61.8%). Be careful because of the today`s Federal Funds Rate.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,120.60

R2: 1,122.20

R3: 1,124.65

Support levels:

S1: 1,115.80

S2: 1,114.30

S3: 1,111.90

Trading recommendations: Watch for potential buying opportunities on dips.

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

Technical analysis of AUD/USD for January 27, 2016

AUDUSDH4.png

Overview:

  • The AUD/USD pair has broken the resistance around the 0.6983 level which was turned into support yesterday. Thus, a strong support lies at 0.6983 and a minor support can be seen at 0.7005. Additionally, the new support at 0.6983 is representing a daily pivot point today. AUD/USD couldn't close below the daily pivot point and started indicating a bullish market from the 0.6983 and 0.7017 levels. So, the price is set above 38.2% Fibonacci today as the level of 0.7017 coincides with the ratio of 38.2% Fibonacci. Besides, the RSI and the moving average (75) are still calling for uptrend. Therefore, the market indicates the bullish opportunity on levels of 0.6983 or 0.7017 with a first target at 0.7084 and the next one at 0.7149. On the other hand, if the price closes below the strong support at 0.6983, then the best location for placing a stop loss is be below 0.6983, as the price will fall for a bearish market in order to go further towards the double bottom at 0.6826 to test it again.

Intraday technical levels:

Date:27/01/2016

Pair:AUD/USD

  • R3: 0.7149
  • R2: 0.7084
  • R1: 0.7048
  • PP: 0.6983
  • S1: 0.6947
  • S2: 0.6882
  • S3: 0.6846
The material has been provided by InstaForex Company - www.instaforex.com

Intraday technical levels and trading recommendations for EUR/USD for January 27, 2016

eurmonthly.png

On January 2015, the EUR/USD pair moved below the major demand levels around 1.2100 and 1.2000 where historical bottoms were previously established back in July 2012 and June 2010. Hence, a long-term bearish target is projected towards 0.9450.

On March 2015, EUR/USD bears challenged the monthly demand level at 1.0570 (established in January 1997). One month later, a strong bullish recovery was observed around the mentioned demand level.

April's candlestick came as bullish engulfing one. However, next monthly candlesticks (September, October and November) reflected strong bearish rejection around the price level of 1.1450.

As mentioned above, the long-term projected target is still seen at 0.9450 if the current monthly candlestick closes below the depicted demand level of 1.0570.

eurdaily.png

On August 2015, the EUR/USD pair looked overbought as the market spiked above the level of 1.1500 (daily supply level).

Shortly after, the intraday supply zone of 1.1360-1.1400 provided significant bearish pressure.

A bearish breakout of the depicted uptrend was performed on October 23. This enhanced a long-term bearish scenario with targets at 1.0800 and 1.0600.

On November 2015, daily persistence below the level of 1.0800 (a prominent key level) ensured enough bearish momentum towards 1.0550 (a monthly demand level) where the recent bullish pullback was initiated towards 1.0800 and 1.1000.

During the last few weeks, the level of 1.1000 was considered to be the significant supply level to offer valid sell entries. Moreover, a Head and Shoulders reversal pattern was executed as depicted on the chart.

The previous bearish closure below 1.0800 (the reversal pattern neckline) confirmed the depicted reversal pattern. An estimated bearish target is located at 1.0620.

Today, bearish persistence below 1.0800 (neckline of the depicted reversal pattern) is needed to allow more bearish decline to occur towards 1.0730, 1.0620, and 1.0570.

On the other hand, bullish persistence above 1.0830 hinders further bearish decline. Hence, a bullish pullback towards 1.1000 would be expected.

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

Global macro overview for 27/01/2016

Global macro overview for 27/01/2016:

The main fundamental event of the week, the FOMC rate decision and rate statement, is scheduled for release at 07:00pm GMT today. The main question that all market participants are asking is whether the Fed hikes the short-term interest rate again this month? The economists anticipate at least four rate hikes this year, so any indication that the rate tightening cycle is going to be slower could have a significant impact on the markets. So far market participants expects no hike this month from the level of 0.5% as the Fed might by in wait-and-see mode since the historical December rate hike. Nevertheless, any unexpected rate hike will cause instant US dollar appreciation.

The markets are flat ahead of the Fed's decision. The technical picture of the US dollar index still looks bullish with no signs or a trend reversal yet. On a daily time frame, prices are still moving above 50,100 and 200 DMA, inside of a bullish channel, so buying on dips after the Fed decision seems to be the way to trade in this market. The next support is seen at the level of 97.18 and the next resistance is seen at the level of 99.98.

dxy.jpg

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

Global macro overview for 27/01/2016

Global macro overview for 27/01/2016:

Data on the Consumer Price Index was delivered from Australia overnight posting better-than-expected readings. Market participant had anticipated a slight drop in the present quarter to the level of 0.3% from 0.5% in the last quarter, but according to the Australian Bureau of Statistics, consumer prices climbed 0.4% from the third quarter and 1.7% from a year earlier. This data suggests that any prospects of the interest rate cut have been ruined. The main reason for that conclusion is quite simple: Australia is a commodity-reliant economy, strongly dependent on the crude oil industry, and China is their key trading partner. The recent turmoil in the Chinese stock market and stubbornly dropping crude prices are making more downward pressure.

Now let's analyze the technical side of the AUD/USD pair in the H4 time frame: a bounce from the technical support level of 0.6918 has lead to more gains in this pair and it looks like bulls are trying to break above the important technical resistance at the level of 0.7047. If this and next resistance at the level of 0.7074 is violated with a daily candle close above it, the recent downtrend might be over and AUD/USD will advance even more.

audusd_h4.jpg

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

USDX technical analysis for January 27, 2016

The US dollar index is above critical support levels as it continues to trade sideways waiting for the FOMC rate decision and Fed chairman Janet Yellen's speech.

usdx.jpg

Red lines - upward sloping wedge

The price continues to trade inside the upward sloping wedge. It is above the Ichimoku cloud in the 4-hour chart, but has broken below the kijun- and tenkan-sen indicators giving us a bearish signal. A breakout below the cloud and out of the wedge will also be a clear sell signal.

usdxd.jpg

In the weekly chart, we see the weekly candle testing the weekly tenkan-sen (red line indicator) support. If prices fall below it, we should expect the index to move towards the kijun-sen (yellow line indicator) and weekly cloud support. So, all eyes are on the Fed's decision tonight.The material has been provided by InstaForex Company - www.instaforex.com

Gold technical analysis for January 27, 2016

Gold price has continued higher as expected towards our target area of $1,120-30. The current price structure implies that we can see even higher levels towards $1,130. A trend remains bullish in the short term.

goldh4.jpg

Blue lines - bullish channel

Blue area- price target

Gold price continues to trade above the Ichimoku cloud and both tenkan- and kijun-sen indicators. The trend is bullish. Support is at $1,110 and resistance at $1,133 where we also find the 61.8% Fibonacci retracement of the decline from $1,190 to $1,050.

goldd.jpg

In the weekly chart above we can clearly see how the price is testing the kijun-sen (yellow indicator) resistance. This is important resistance so bulls need to be very cautious in case we see a rejection. A breakout above it could open the way for a bigger bounce towards the Ichimoku cloud near $1,150.The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of EUR/JPY for January 27, 2016

General overview for 27/01/2016:

The situation in this pair is still not clear as the price keeps trading in a narrow range without any signs of trend continuation or reversal. The target for the wave -ii- blue had not been hit, but it looks like the running flat correction might be completed with a low at the level of 127.85. In that case, the next level to test would be the intraday resistance at the level of 129.08. Any failure to break out the level of 129.08 would mean the market will get back to the trading range.

Support/Resistance:

126.08 - Higher Time Frame Cycles Invalidation Level

126.95 - WS1

127.41 - Intraday Support

127.75 - Weekly Pivot

129.08 - Intraday Resistance

129.34 - WR1

130.13 - WR2

130.75 - 130.85 - Technical Resistance| Gap |

Trading recommendations:

Day traders should refrain from trading in this pair until the situation becomes more clear and better trading setup will occur.

eurjpy_h1.jpg

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

Technical analysis of USD/CAD for January 27, 2016

General overview for 27/01/2016:

As anticipated yesterday, the fifth wave of the overall impulsive wave progression has been completed and the cycle down is done now. An upward corrective cycle might unfold targeting the level of 1.4324 if the golden trend line gets broken. On the other hand, a failure in breaking the golden trend line will result in another test of the intraday support at the level of 1.4044.

Support/Resistance:

1.4690 - Swing High

1.4436 - WR1

1.4420 - Technical Resistance

1.4330 - 38%Fibo

1.4325 - Technical Resistance

1.4272 - Weekly Pivot

1.4135 - Intraday Resistance

1.4044 - Intraday Support

Trading recommendations:

The sell orders from yesterday had hit the TP level.

For today, day traders should consider placing buy orders if the intraday resistance at the level of 1.4135 is violated. The SL orders should be placed below the level of 1.4044 and TP at the level of 1.4326.

usdcad_h1.jpg

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

Daily analysis of major pairs for January 27, 2016

EUR/USD: This pair was making bullish effort in the context of a bearish signal. There are resistance lines at 1.0900 and 1.0950. There are also support lines at 1.0800 and 1.0750. The price would either go above these resistance lines to generate a bullish signal or go below the support lines to reinforce the recent bearish outlook.

1453877509_1.png

USD/CHF: There was a lot of trading activities around the level of 1.0150, which has been broken to the upside as the price continues to move upwards in the context of an uptrend. The best thing right now is to seek long trading opportunities in the market owing to the current bullish signal and the bright outlook for the USD.

1453877532_2.png

GBP/USD: The GBP/USD pair went upwards yesterday because bulls were making effort to push the price upwards. However, the bearish outlook is extant unless the price goes above the distribution territory of 1.4450, which might render the bearish outlook invalid. There are accumulation territories around 1.4200 and 1.4150, which could be tested in case the price goes south.

1453877549_3.png

USD/JPY: This pair merely consolidated yesterday, though a closer look at the chart shows that the price is likely to keep moving in this trend. There is a bullish signal in the chart as the price is now above the EMA 56, while the RSI period 14 is above the level of 50. The outlook for the USD is bright and therefore, the USD/JPY pair might continue moving upwards.

1453877762_4.png

EUR/JPY: The bullish determination started by this cross is presently paying off. There is a novel Bullish Confirmation Pattern in the chart, which means the price has the potential to continue going upwards from here reaching the supply zones of 129.50 and 130.00 within the next few trading days.

1453877740_5.png

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

Technical analysis of Silver for January 27, 2016

Technical outlook and chart setups:

Silver has broken out of the cone consolidation structure as shown in the H4 chart. It is trading around $14.40/50 now looking for an opportunity to drop lower towards at least $14.30 if not even lower. Please also note that the Fibonacci 50% support and resistance-turned-support trend line is also seen at $14.30 levels. It is hence recommended to take profits on long positions and buy again near the level of $14.30 with risk at $14.00. Immediate support is seen at $14.30, while resistance is seen at $14.60. A bullish reversal from $14.30 should push the metal towards the level of $15.00 as well.

Trading recommendations:

Take profits and remain flat. Buy again around $14.30.

Good luck!

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

Technical analysis of Gold for January 27, 2016

Technical outlook and chart setups:

Gold rose through $1,120.00/22.00 yesterday as we had expected and discussed earlier. The yellow metal should remained poised to move through higher levels of $1,125.00 and $1,136.00 before turning lower again. Indicators reveal that the metal could retrace to $1,110.00 in the short term before hitting fresh highs in the area around $1,136.00. It is hence recommended to take profits on all long positions and remain flat looking for an opportunity to enter at lower levels again. Immediate support is seen at $1,110.00, while resistance is seen at $1,125.00/36.00.

Trading recommendations:

Take profits on long positions. Remain flat for now.

Good luck!

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

Technical analysis of EUR/JPY for January 27, 2016

Technical outlook and chart setups:

The EUR/JPY pair has taken out initial resistance at 128.50 and must be looking for an opportunity to move through the level of 129.00 before producing a meaningful retracement. The pair has broken above the immediate line of resistance, which is encouraging for bulls. It is expected to drop lower towards 127.10/20 before resuming its previous rally. It is recommended to remain flat for now and wait for a reaction at the level of 127.20. Immediate support is seen at 126.00, while resistance is seen at 129.00.

Trading recommendations:

Remain flat.

Good luck!

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

Technical analysis of GBP/CHF for January 27, 2016

Technical outlook and chart setups:

The GBP/CHF pair reached fresh highs at the levels of 1.4640/50 yesterday, taking out initial resistance at 1.4600 as depicted here on the hourly chart. The pair should be looking for an opportunity to produce a meaningful correction. It is expected to drop in a corrective manner (3 waves) towards 1.4320/30 before resuming its earlier rally. Please note that it is also the Fibonacci 0.618 support of the rally between the levels of 1.4125 and 1.4640 respectively. It is hence recommended to initiate short positions now with risk at the levels of 1.4650. Immediate support is seen at 1.4450, while resistance is seen at 1.4640.

Trading recommendations:

Initiate short positions with stop at 1.4650, a target is at 1.4330.

Good luck!

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

Elliott wave analysis of EUR/NZD for January 27 - 2016

2016-01-27-EURNZD-8H.png

Wave summary:

We are still looking for upside acceleration soon. A direct breakout above 1.6706 indicated that red wave ii ended a little earlier than expected and that red wave iii higher towards at least 1.7641 is already developing.

We will continue to look for a breakout above minor resistance at 1.6896 and more importantly a breakout above resistance at 1.7010 that will confirm that red wave ii is indeed over and red wave iii higher is unfolding.

It will take an unexpected breakout below support at 1.6505 to invalidate this count.

Trading recommendation:

We are long EUR from 1.6706 with stop placed at 1.6505. If you are not long EUR yet, then buy near 1.6625 or upon a breakout above 1.6896 and use the same stop at 1.6505.

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

Elliott wave analysis of EUR/JPY for January 27, 201

2016-01-27-EURJPY-8H.png

Wave summary:

The corrective rally in wave [iv] from 126.14 continues to unfold as we expected. It looks as if wave c of [iv] turns into a small ending diagonal, which means the final rally higher towards 129.07 is likely to be a little slower than we first anticipated, but nothing else has changed.

Short-term support is found at 128.23 and again at 128.05. It is expected to protect the downside for the next part of wave c higher towards 129.07.

Only an unexpected breakout below support at 127.77 will indicate that the corrective rally in wave [iv] has already ended and a new impulsive decline in wave [v] lower to 123.89 is developing.

Trading recommendation:

We will sell EUR at 129.00 or upon the breakout below the important short-term support of 127.77.

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

Technical analysis of EUR/USD for Januari 27, 2016

!_EURUSD.jpg

When the European market opens, some economic news on the German 30-y Bond Auction and GfK German Consumer Climate is due to be released. The US will release economic data on the Federal Funds Rate, FOMC Statement, Crude Oil Inventories, and New Home Sales. So amid the reports, EUR/USD will move with medium to high volatility.

TODAY'S TECHNICAL LEVEL:

Breakout BUY Level: 1.0907.

Strong Resistance:1.0901.

Original Resistance: 1.0890.

Inner Sell Area: 1.0879.

Target Inner Area: 1.0854.

Inner Buy Area: 1.0829.

Original Support: 1.0818.

Strong Support: 1.0807.

Breakout SELL Level: 1.0801.

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 Januari 27, 2016

!!_USDJPY.jpg

In Asia, Japan will not release any economic data today, but the US will deliver some economic news on the Federal Funds Rate, FOMC Statement, Crude Oil Inventories, and New Home Sales. So, there is a strong probability that the USD/JPY pair will move with medium to high volatility.

TODAY'S TECHNICAL LEVEL:

Resistance. 3: 118.78.

Resistance. 2: 118.55.

Resistance. 1: 118.32.

Support. 1: 118.02.

Support. 2: 117.79.

Support. 3: 117.56.

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 January 27, 2016

US Dollar Index has declined below the 200 SMA at H1 chart after a strong resistance was found around 99.49. Current price action is telling us that a support level is located at 98.97, as an inflection zone was formed during the January 19th and 20th sessions and pushed the index higher. However, this bullish scenario can invalidate if the USDX breaks the support at 98.72. MACD indicator is currently declining, as it is still moving on the negative territory.

USDXH1.png

H1 chart's resistance levels: 99.22 / 99.49

H1 chart's support levels: 98.97 / 98.72

Trading recommendations for today: Based on the H1 chart, buy (long) orders only if the USD Index breaks a bullish candlestick; the resistance level is at 99.22, take profit is at 99.49, and stop loss is at 98.95.

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

Daily analysis of GBP/USD for January 27, 2016

GBP/USD had a bullish momentum above the support at 1.4198 after a fractal structure formation declined from the January 22th highs. The H1 chart is showing that a high pattern can move further above the 200 SMA and the support can be found at 1.4309. This level is a key bottom for GBP/USD, as we saw a strong sellers' reaction to the price action during the sessions of January 18th, 19th, 22th and 25th. Additionally, a break above the 1.4373 level will expose the pair to the next resistance placed around 1.4464, where a inflection zone was formed during the January 13th session. MACD indicator is reaching overbought conditions, so the pair may start to make pullbacks to test the 1.4309 level and to resume the bearish bias.

GBPUSDH1.png

H1 chart's resistance levels: 1.4373 / 1.4464

H1 chart's support levels: 1.4309 / 1.4198

Trading recommendations for today: Based on the H1 chart, sell (short) orders are recommended only if GBP/USD breaks a bearish candlestick; the support level is at 1.4309, take profit is at 1.4198, and stop loss is at 1.4422.

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

Daily analysis of GBP/JPY for January 26, 2016

GBPJPYH4.png

Overview

The recovery from the 163.96 short-term bottom is still in progress and further rise could be seen. We expect the upside to be limited by the 38.2% retracement of 188.79 to 163.96 at 173.44 and bring fall resumption. A break of 163.96 will extend the fall from 195.86. Current development confirmed medium-term topping at 195.86 on bearish divergence condition in the weekly MACD. A fall from 195.86 is currently viewed as a correction and 38.2% retracement of 116.83 to 195.86 at 165.67 has already been met. Based on the current momentum, the correction is likely to extend to the 61.8% retracement at 147.01 before completion.

Daily Pivots: (S1) 167.50; (P) 168.92; (R1) 170.78

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

NZD/USD intraday technical levels and trading recommendations for January 26, 2016

nzddaily.pngnzdh4.png

On December 30, a significant bearish rejection took place around the level of 0.6840 (daily resistance level) similar to what happened previously on October 23.

Moreover, a daily closure below 0.6750 allowed a quick bearish decline to occur initially towards the level of 0.6500, which was broken to the downside as well.

The daily chart illustrates a double-top reversal pattern. An obvious bearish breakdown of the depicted support level at 0.6400 should be executed in order to confirm the reversal pattern.

However, the levels of 0.6400-0.6350 constituted a significant support zone, which corresponded to the backside of a broken downtrend line. Hence, a strong bullish rejection was expressed on January 20.

Last week, bullish persistence above 0.6500 was mandatory to keep pushing the NZD/USD pair towards higher bullish targets.

However, on Friday, a lower high has been expressed off the price level of 0.6530. This enhanced the bearish side of the market and brought the NZD/USD pair towards the depicted support level at 0.6400 again.

Earlier today, the price levels around 0.6400 stood as a significant support offering a valid buy entry which is running in profits now.

Bullish persistence above 0.6500 is currently needed to keep moving towards higher bullish targets. Otherwise, another bearish correction towards 0.6370 should be expected.

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

Daily analysis of Silver for January 26, 2016

SILVERH4.png

Overview

The silver price is testing the 23.6% Fibonacci level at 14.25, approaching the sideways range resistance that is located at 14.40, accompanied by stochastic reaching the overbought areas. So the price might be pushed to trade negatively in the upcoming sessions. The price might head to test the mentioned range support at 13.65. Therefore, the sideways scenario will remain valid and active as long as the price is between the above-mentioned levels. Breaching the 14.40 level will lead the price to more bullish correction, the next main target of which is located at 15.30. However, breaking the 13.65 level represents the key to return to the main bearish trend, the first target of which is located at 13.00.

The expected trading range for today is between 13.80 support and 14.50 resistance.

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

USD/CAD intraday technical levels and trading recommendations for January 26, 2016

cadweekly.pngcaddaily.png

A bullish breakout above the previous consolidation zone between 1.2400 and 1.2800 was performed on July 15 (shown on the weekly chart).

Significant bearish rejection was observed around 1.3450.Hence, another consolidation range was established between 1.2800 and 1.3450.

On December 7, a bullish breakout above 1.3450 (the upper limit of the recent consolidation range) enhanced the bullish side of the market.

A bullish visit towards the resistance level of 1.4150 (Fibonacci Expansion 100%) was expected as a result of the bullish breakout above 1.3450.

Bullish persistence above 1.4150 enhanced the bullish side of the market towards 1.4600 (141.4% Fibonacci expansion) where evident bearish rejection was expected (a bearish engulfing weekly candlestick).

On the other hand, the price zone of 1.3370-1.3400 remains a significant support zone to be watched for valid buy entries if the current bearish correction persists below 1.4100.

Trading recommendations:

As we expected, a valid sell entry was offered around 1.4650 (141.4% Fibonacci expansion). It is already running in profits.

S/L should now be lowered to 1.4350, while the next T/P level remains projected at 1.4000 if USD/CAD bears manage to maintain the current breakdown below 1.4100 (Fibonacci Expansion 100%).

On the other hand, conservative traders should wait for a daily candlestick closure below the level of 1.4100 to sell the USD/CAD pair. S/L should be located above 1.4150.

Initial T/P levels should be located at 1.4000 and 1.3850.

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

Intraday technical levels and trading recommendations for GBP/USD for January 26, 2016

gbpusdweekly.png

Few months ago, the market was pushed above the weekly levels around 1.5550 trying to reach the price zone of 1.5900, where the depicted Head and Shoulders pattern was expressed.

On November 2015, a recent weekly candlestick came as a bearish engulfing one, closing below the level of 1.5200 (the neckline of the Head and Shoulders pattern). This supported the bearish side of the market in the long term.

A quick bearish decline towards the previous weekly level of 1.4950 was expected as a result of a bearish breakout below 1.5200.

Extensive bearish pressure has been applied against the demand levels of 1.4620 and 1.4360. Both of them were recently broken to the downside.

Shortly after the GBP/USD has moved below 1.4220, evident signs of bullish recovery have been expressed around 1.4075. This resulted in the previous hammer weekly candlestick which closed above 1.4220 indicating strong bullish rejection.

That is why, the price zone of 1.4360-1.4220 remains a significant demand zone for the GBP/USD pair.

Bullish persistence above 1.4220 and 1.4360 is mandatory to maintain bullish strength in the market. The first bullish target is seen at 1.4615.

gbpusddaily.png

During 2015, significant bearish rejection has been expressed around 1.5770 and 1.5230 where a bearish Head and Shoulders reversal pattern was formed. Since then, the market has been trending downwards within the depicted bearish channel.

Few weeks ago, the level of 1.4950 was broken to the downside , constituting a significant supply level.

Daily persistence below 1.4800 (the lower limit of the current bearish channel) favored a bearish decline towards 1.4680 and 1.4610 where previous prominent bottoms are located on the GBP/USD daily chart.

Currently, the GBP/USD pair looks oversold as it is moving further below the prominent demand levels of 1.4620 and 1.4360.

That is why, any signs of bullish rejection around the demand level of 1.4220 should be considered a valid buy signal.

Bullish persistence above 1.4360 is mandatory to maintain enough bullish strength into the market. The first bullish target is projected towards 1.4615.

Trading Recommendation:

In previous articles, traders were advised to take a valid buy entry when the GBP/USD pair achieved a daily closure above the level of 1.4220 on Friday. It is already running in profits now.

Initial T/P levels should be located at 1.4360, 1.4440, and 1.4500, while S/L should be located below 1.4160.

For those who missed the initial trade, traders can have another buy entry when the GBP/USD pair achieves a bullish closure above 1.4360. T/P levels would be located at 1.4440, 1.4500, and 1.4600.

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

Intraday technical levels and trading recommendations for EUR/USD for January 26, 2016

eurusdmonth.png

On January 2015, the EUR/USD pair moved below the major demand levels around 1.2100 and 1.2000 where historical bottoms were previously established back in July 2012 and June 2010. Hence, a long-term bearish target is projected towards 0.9450.

On March 2015, the EUR/USD bears challenged the monthly demand level of 1.0550 (established in January 1997). A month later, a strong bullish recovery was expressed around the mentioned demand level.

April's candlestick came as bullish engulfing one. However, next monthly candlesticks (September, October and November) reflected strong bearish rejection around the price level of 1.1450.

A long-term projected target is still seen at 0.9450 if the current monthly candlestick closes below the depicted demand level of 1.0570.

eurmonthdaily.png

On August 2015, the EUR/USD pair looked overbought as the market spiked above the level of 1.1500 (daily supply level).

Shortly after, the intraday supply zone of 1.1360-1.1400 provided significant bearish pressure.

A bearish breakout of the depicted uptrend was performed on October 23. This enhanced a long-term bearish scenario with targets at 1.0800 and 1.0600.

On November 2015, daily persistence below the level of 1.0800 (a prominent key level) ensured enough bearish momentum towards 1.0550 (a monthly demand level) where the recent bullish pullback was initiated towards 1.0800 and 1.1000.

During the last few weeks, the level of 1.1000 was considered to be the significant supply level to offer valid sell entries. Moreover, a Head and Shoulders reversal pattern was executed as depicted on the chart.

The previous bearish closure below 1.0800 (the reversal pattern neckline) confirmed the depicted reversal pattern. An estimated bearish target is located at 1.0620.

Today, bearish persistence below 1.0800 (neckline of the depicted reversal pattern) is mandatory to allow more bearish decline to occur towards 1.0730, 1.0620, and 1.0570.

On the other hand, bullish persistence above 1.0830 hinders further bearish decline. If it is so, a bullish pullback towards 1.1000 should be expected.

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