USD/CAD intraday technical levels and trading recommendations for February 1, 2016

analytics56af708c0b6fb.pnganalytics56af709b7f08c.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).

A significant bearish rejection was observed around 1.3450. Hence, another consolidation range was established from 1.3450 down to 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 1.4120 (Fibonacci Expansion 100%) was executed.

Bullish persistence above 1.4150 enhanced the bullish side of the market towards 1.4650 (141.4% Fibonacci expansion) where evident bearish rejection was expected (a bearish engulfing weekly candlestick).

The level of 1.4120 (Fibonacci Expansion 100%) remains a significant key level to be watched for price reaction during the current week's consolidations. It may offer a valid sell entry if any bullish pullback occurs soon.

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) and 1.4000 (a prominent Weekly Support).

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 1.4150 to secure our profits, while the next T/P level remains projected at 1.3800 if USD/CAD bears develop enough bearish momentum below 1.4100 and 1.4000.

On the other hand, conservative traders should wait for a bearish pullback towards the zone of 1.3370-1.3400 where a valid buy entry can be offered.

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

EUR/NZD analysis for February 01, 2016

EURNZDDaily.png01.png

EURNZDH4.png01.png

Overview:

Recently, EUR/NZD has been moving upwards. As I expected, the price tested the level of 1.6831 in a high volume. In the daily time frame, we can observe a successful test of our key point in the control zone (1.6640-1.6515). In the H4 time frame, I found the upward trend line, which successful held for few times. Even if the price breaks the upward trend line, strong support is seen at the level of 1.6545. The price is well above all key MA`s (50SMA, 100SMA, 150SMA, and 200 SMA). The first upward take-profit zone is seen around the level of 1.7260 (previous swing high).

Fibonacci Pivot Points:

Resistance levels:

R1: 1.6850

R2: 1.6915

R3: 1.7010

Support levels:

S1: 1.6650

S2: 1.6590

S3: 1.6495

Trading recommendations: Trading recommendations: the intraday trend is neutral, but the short-term trend is upward. Watch for potential buying opportunities.

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

Intraday technical levels and trading recommendations for GBP/USD for February 1, 2016

analytics56af66aa83acf.png

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

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 a bearish breakout below 1.5200.

Extensive bearish pressure has been applied to 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 were expressed around 1.4075. Hence, the previous two weekly candlesticks closed above 1.4220 indicating strong bullish demand.

That is why, the 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.

analytics56af674715456.png

During 2015, significant bearish rejection was 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 in the market. The first bullish target is projected towards 1.4615.

Trading Recommendation:

In our previous articles, traders were advised to take a valid buy entry when the GBP/USD pair closures above the level of 1.4220. 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.

Traders who missed the initial trade can have another buy entry when the GBP/USD pair performs 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 February 1, 2016

analytics56af66a49b556.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 of 1.0570 (reached in January 1997). One month later, 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 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.

analytics56af66b519d8f.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 produced 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 formed 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, another bullish pullback towards 1.1000 would be expected.

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

Gold analysis for February 01, 2016

GOLDDaily.png01.png

GOLDH1.png01.png

Overview:

Since our last analysis, gold has been trading upwards. As I expected, the price tested the level of $1.123.95 in a high volume. An intraday short-term trend is upward. So, selling looks very risky. Also. the pair is trading well above all key MA`s (SMA 50,100,150,200) in the H4 time frame. The take-profit zone is established around the level of $1,134.00 (Fibonacci retracement 61.8%, daily SMA 200). In the 30M time frame, as I expected, buyers absorbed the massive volume spike (selling climax). First intraday resistance is seen at the level of $1,127.80.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,118.10

R2: 1,118.75

R3: 1,119.80

Support levels:

S1: 1,116.00

S2: 1,115.45

S3: 1,114.50

Trading recommendations: Trading recommendations: watch for potential buying opportunities on dips.

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

Technical analysis of GBP/CHF for February 1, 2016

GBP/CHF has been moving downwards since December 2015 without showing obvious signs of reversal to the upside. While moving down, the price found the support at the level of 1.4640 (R1), which has been eventually broken.

The Fibonacci applied to the first corrective wave up after the breakout shows that the downside target has been reached and rejected at S4 (1.4135) that is 361.8% Fibs. The most recent price action shows that the previous level of support now acts as strong resistance since the price has rejected it for few times already. At the same time, RSI oscillator is showing bearish divergence and this could be a signal that consolidation could take place sending the price back to one of the support levels.

Consider selling GBP/CHF at the current level (1.4560) targeting S2 (1.4416), S3 (1.4276), or S4 (1.4135). The stop loss order should be placed well above the R1 resistance.

Support: 1.4500, 1.4416, 1.4276, 1.4135

Resistance: 1.4645

GBPCHF_INSTA.png

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

Technical analysis of GBP/USD for February 01, 2016

GBPUSDH1.png

Overview:

  • Today, the GBP/USD pair has broken resistance at the level of 1.4250 which acts as support now. Thus, the pair has already formed minor support at 1.4250.The strong support is seen at the level of 1.4122 because it represents the weekly support 1. Equally important, the RSI and the moving average (100) are still calling for an uptrend. Therefore, the market indicates a bullish opportunity at the level of 1.4250 in the H1 chart. Also, if the trend is buoyant, then the currency pair strength will be defined as following: GBP is in an uptrend and USD is in a downtrend. Buy above the minor support of 1.4250 with the first target at 1.4312 (this price is coinciding with the ratio of 61.8% Fibonacci), and continue towards 1.4386 (the weekly resistance 1). On the other hand, if the price closes below the minor support, the best location for the stop loss order is seen below 1.4250; hence, the price will fall into the bearish market in order to go further towards the strong support at 1.4122 to test it again. Furthermore, the level of 1.4149 will form a double bottom.

The weekly technical analysis of GBP/USD pair:

gbpusd_pp.png

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

Technical analysis of EUR/USD for February 01, 2016

1454322683_EURUSDH1.png

Overview:

  • The EUR/USD pair hit the weekly pivot point and resistance 1, because of the series of relatively equal highs and equal lows. But, the pair has dropped down in order to bottom at the point of 1.0810. Hence, the major support was already set at the level of 1.0810. Moreover, the double bottom is also coinciding with the major support this week. Additionally, the RSI is still calling for a strong bullish market as well as the current price is also above the moving average 100. Therefore, it will be advantageous to buy above the support area of 1.0810 with the first target at 1.0878. From this point, if the pair closes above the weekly pivot point of 1.0862, the EUR/USD pair may resume it movement to 1.0935 to test the weekly resistance 1. Stop loss should always be taken into account, accordingly, it will be of beneficial to set the stop loss below the last bottom at 1.0793.

The weekly technical analysis of EUR/USD pair:

eurusd_pp.png

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

Global macro overview for 01/02/2016

Global macro overview for 01/02/2016:

The PMI Manufacturing data from the eurozone was released this morning and it was mostly in line with analysts' expectations. The biggest surprise however was the UK PMI which came in better than expected: 52.9 vs. 51.8 and (forecast 52.2). The UK PMI remained above the neutrality level of 50.0 for 34 successive months now. Looking beneath the surface of the headline numbers shows that the prime drivers of the output growth acceleration were the consumer and investment goods sectors. A solid rate of expansion was also signaled by intermediate goods producers. In conclusion: the UK manufacturing sector posted an up tick in its rate of expansion at the beginning of 2016, shrugging off a number of potential headwinds, ranging from global financial market volatility to localized flooding in the North of the country. The domestic market remains the key driver of the economic growth, but after recent easing in the exchange rate, a number of manufacturers are still finding that the strength of the pound against the euro significantly influence the number of orders.

From the technical point of view, the recent downside breakout of the rising wedge was successful with new daily low reached at the level of 1.4147. Currently, the market is testing the lower channel line from the downside and any failure to break back above the level of 1.4317 will result in immediate reversal. The downtrend is still intact.

analytics56af36cfe9200.jpg

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

Global macro overview for 01/02/2016

Global macro overview for 01/02/2016:

The US fourth quarter gross domestic product increased by 0.7% according to the Commerce Department data released last Friday. This is a sharp slowdown as the third quarter GDP growth rate hit the level of 2%. The main reason behind the drop was lower oil prices which continued to decrease and bad weather (heavy blizzard) over the last months that dented consumer spending on utilities and apparel. Nevertheless, there is no reason to raise concerns about momentum in 2016, because the overall US economic growth was 2.4% in 2015, after a similar growth pace posted in 2014. In conclusion, this GDP figure for the fourth quarter is only a preliminary gauge which will be revised in next two months.

Now let's take a look at the technical picture of the US dollar index on the daily chart. The violation of the lower channel boundary was quickly recovered as the market rallied higher towards the important technical resistance at the level of 99.98. Nevertheless, the current pattern starts to look like a rising wedge, which means the downside breakout still can not be ruled out as long as the 99.98 resistance holds.

analytics56af2bed11f9f.jpg

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

Technical analysis of EUR/JPY for Febuary 1, 2016

General overview for 01/02/2016:

From the Elliott Wave point of view, the current upward move might be completed as there are five impulsive wave seen in the hourly chart. Moreover, a three-wave corrective cycle is visible as well, so any rally upwards that breaks the local high at the level of 132.31 will be labeled as wave three of the main impulsive structure. Nevertheless, an alternative count suggests even more impulsive wave progression to the upside as long as the level of 130.22 is not violated.

Support/Resistance:

133.69 - WR1

132.27 - Local High|Intraday Resistance|

130.76 - Weekly Pivot

130.22 - Intraday Support

129.18 - WS1

Trading recommendations:

Day traders should refrain from trading and wait for another trading setup to occur.

analytics56af201d7ce92.jpg

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

Technical analysis of USD/CAD for Febuary 1, 2016

General overview for 01/02/2016:

The pair keeps trading inside a narrow range zone, but an upside breakout is coming. The reason for that is diminishing downward momentum and bullish divergence, which might be seen between the price and momentum oscillator. Moreover, there is an uncompleted wave progression to the upside which indicates that wave c purple should reach a local high around the level of 1.4272. Please notice the larger uptrend is still intact in this time frame, but the corrective cycle might get more complex and more time-consuming.

Support/Resistance:

1.4690 - Swing High

1.4553 - WR3

1.4436 - WR2

1.4324 - Technical Resistance

1.4173 - WR1

1.4158 - Intraday Resistance

1.4061 - Weekly Pivot

1.3946 - Intraday Support

1.3798 - WS1

Trading recommendations:

We are still expecting bullish wave c to the upside. So, day traders should consider placing buy orders today if the intraday resistance at the level of 1.4156 is violated. The SL orders should be placed below the level of 1.4028 and TP at the level of 1.4271.

usdcad_h1.jpg

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

Technical analysis of Silver for February 01, 2016.

Technical outlook and chart setups:

Silver is trading in the area around $14.35 now. We expect it to face interim Fibonacci resistance. The metal is expected to drop lower towards $14.00 before resuming its previous rally. On the flip side, a push through the levels of $14.50 on the higher side, would open doors to the levels of $15.00/20 as well. It is hence recommended to remain flat for now and look for an opportunity to buy at lower levels on a bullish bounce. Immediate resistance is seen at $14.50/60, while support is at $13.90. Bears are expected to remain in control till prices stay below $14.50 moving forward.

Technical outlook and chart setups:

Remain flat for now and look for an opportunity to buy lower.

Good luck!

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

Technical analysis of Gold for February 01, 2015

Technical outlook and chart setups:

Gold is trading around the levels of $1,123.30 now and it is likely to face resistance here.The yellow metal is expected to produce an up garter and complete a corrective drop lower before rallying towards fresh highs. Also as seen on the daily chart, the metal is facing resistance around Fibonacci 50% levels of a drop between the levels of $1,192.00 and $1,046. It is hence recommended to initiate 50% short positions now with risk at $1,129.00. Immediate interim resistance is seen at $1,127.00/28.00, while support is seen at $1,108.50. Bears should remain poised to push lower until prices stay below $1,129.00.

Trading recommendations:

Remain short with stop at $1,129.00.

Good luck!

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

Technical analysis of EUR/JPY for February 01, 2016

Technical outlook and chart setups:

The EUR/JPY pair is trading in the area of 131.50/60 right now after reversing from 132.32 last Friday. The pair is seen to hit the trend-line resistance and Fibonacci 0.618 as well s depicted on the daily chart view. It is expected to resume the bearish trend from here until prices stay broadly below 134.50. It is hence recommended to remain short now with risk at 134.50. Immediate resistance is seen at 134.50 followed by 137.00, while support is seen at 129.00 and lower.

Trading recommendations:

Remain short with stop at 134.50.

Good luck!

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

Technical analysis of GBP/CHF for February 01, 2016

Technical outlook and chart setups:

The GBP/CHF pair looks to be preparing for a drop lower towards 1.4300 levels, before resuming its rally. The pair is trading around 1.4569 now following hitting a high of 1.4660. Please also note that the pair has pulled back from the Fibonacci 0.382 resistance level (a drop from 1.5570 to 1.4120). It is hence recommended to remain short with risk at the level of 1.4685. Immediate interim resistance is seen at 1.4660, while support is seen at 1.4300 followed by 1.4125. A corrective drop from current levels should be followed by a rally towards 1.5/1.51.

Trading recommendations:

Stay short now with stop at 1.4685, a target is at 1.4300.

Good luck!

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

USDX technical analysis for February 1, 2016

The US dollar index is showing triple-top divergence signals as prices has reached new higher highs and stochastic. Important trend support is found at 98.50 where we saw prices performing a big bounce last week.

usdx.jpg

Red lines indicating divergence are seen inside the range between 98.50 and 100, so a breakout above or below could start a considerable new trend. Short-term support is found at 99. A breakout will open the way to 98.50. Resistance is seen at 100.

usdxd.jpg

Blue lines - megaphone top

Red lines - upward sloping wedge

On the weekly chart price is still above the Ichimoku cloud inside the red upward sloping wedge. A break below 98.50 will be a bearish signal as it would push the price towards the weekly cloud support near 96.40 at least. On the other hand, a break above 100 could cause a final push towards 101.50-102 where the megaphone trend-line upper boundary is found.

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

Gold technical analysis for February 1, 2016

Gold price is moving higher inside the short-term upward sloping channel. A trend remains bullish as long as the price is above last week's low of $1,108. The area of $1,130-35 is a bullish target now.

goldh4.jpg

Blue lines - bullish short-term channel

Black lines - medium-term bullish channel

Gold price remains above the Ichimoku cloud. The short-term trend is bullish. Support is found at $1,108. Resistance is seen at $1,130-35. The most probable outcome is to see prices moving higher towards $1,130.

goldd.jpg

Black lines - long-term downward sloping wedge

As expected gold price managed to stage an important bounce off the lower wedge boundary towards the kijun-sen resistance (yellow line) and after a long time we see this resistance indicator being challenged. Weekly support is found at the tenkan-sen (red line indicator).

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

Elliott wave analysis of EUR/JPY for January 29, 2016

2016-01-29-EURJPY-W.png

Wave summary:

Bank of Japan has adopted negative interest rates this morning and that could be a game-changing decision. Therefore, we are going to watch the weekly chart today to get the right perspective. Our preferred count since late December 2013 shows that the pair will remain flat. A breakout above resistance at 132.44 will indicate that this expanded flat ended at 126.05 in mid-April last year. All price actions are part of a new impulsive structure since then.

A breakout above 132.44 will call for a rally towards 134.59 before a correction occurs. However, in the longer term we will be looking for much higher levels.

Trading recommendation:

Our stop at 130.25 has been hit and we should assess the situation before opening a new position.

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

Elliott wave analysis of EUR/NZD for February 1, 2016

2016-02-01-EURNZD-8H.png

Wave summary:

We continuously expect minor support at 1.6603 to protect the downside for a breakout above minor resistance at 1.6849 and more importantly a breakout above 1.6948 confirming more upside pressure towards 1.7273 and 1.7641.

Only an unexpected breakout below 1.6603 will delay the expected rally higher (for a more complex corrective decline) towards 1.6372 before the next impulsive rally higher takes place.

Trading recommendation:

We are long EUR from 1.6706 with stop placed at 1.6600. If you are not long EUR yet, then buy on a breakout above 1.6849 and use the same stop at 1.6600.

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

Daily analysis of major pairs for February 1, 2016

EUR/USD: The bias is neutral because every bullish effort to effect a protracted rally has been invariably frustrated by the bear's obstinacy. Unless one is a scalper, it would be OK to stay away from this market until there is a directional movement, which would most probably favor bears.

1.png

USD/CHF: This currency trading instrument had been consolidating for the first few days of the previous week and then rallied further reinforcing the existing bullish bias in the market. The price was able to go above the support levels of 1.0150 and 1.0200.The resistance level of 1.0250 has already been tested, and the market is expected to go above i, reaching the resistance level of 1.0300. There is a Bullish Confirmation Pattern in the market.

2.png

GBP/USD: We always say that rallies should be avoided on this pair and they should be taken as opportunities to go short. That was exactly what happened last week. The bullish effort we saw from Monday to Thursday was frustrated by a 200-pip bearish correction that happened on Friday. In fact, the bearish journey is supposed to continue this week and this month, an the outlook for GBP pairs is bearish.

3.png

USD/JPY: Last week, the USD/JPY pair was moving sideways from Monday to Thursday in the context of an uptrend. On Friday, January 29, 2016, the price broke significantly upwards testing the supply level of 121.50 (a movement of 300 pips). The outlook for USD/JPY, an other JPY pairs as well, is bullish for this week and for this month. Thus, we expect the USD/JPY pair to continue moving upwards this week.

4.png

EUR/JPY: Just like the USD/JPY pair and other JPY pairs, this cross moved seriously upwards last week. Before January 29, 2016, this cross had been already engaged in a slow and steady upward movement. The price went upwards by 400 pips last week, before experiencing a shallow pullback on Friday. A further rally is possible as the market proffers long opportunities with pullbacks along the way.

5.png

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

Elliott wave analysis of EUR/JPY for February 1, 2016

2016-02-01-EURJPY-D.png

Wave summary:

A very strong rally on Friday which took place after BOJ's decision to adopt the negative interest rate, looked impulsive and if a breakout above important resistance at 132.44 is seen, then we will change our preferred count to above. This count shows that an expanded flat correction we have been tracking since late December 2013 terminated at 126.05 in mid-April 2015 and was followed by an impulsive wave (i) to 141.04 and the decline from 141.04 to 126.14 was a very deep wave (ii). A breakout above 132.44 will call for wave (iii) higher to at least 150.16.

If, however resistance at 132.44 is able to protect the upside for renewed downside pressure, the very complex corrective corrective pattern could still be unfolding.

Trading recommendation:

We will await the outcome of the test of the resistance-line before making the next move.

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

Technical analysis of EUR/USD for February 01, 2016

!_EURUSD.jpg

When the European market opens, economic news on the Final Manufacturing PMI, German Final Manufacturing PMI, French Final Manufacturing PMI, Italian Manufacturing PMI, and Spanish Manufacturing PMI is due to be released. The US will deliver economic data on the Loan Officer Survey, ISM Manufacturing Prices, Construction Spending m/m, ISM Manufacturing PMI, Final Manufacturing PMI, Personal Income m/m, Personal Spending m/m, and Core PCE Price Index m/m. So amid the reports, EUR/USD will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Breakout BUY Level: 1.0890.

Strong Resistance:1.0884.

Original Resistance: 1.0873.

Inner Sell Area: 1.0862.

Target Inner Area: 1.0837.

Inner Buy Area: 1.0812.

Original Support: 1.0801.

Strong Support: 1.0790.

Breakout SELL Level: 1.0784.

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 February 01, 2016

!!_USDJPY.jpg

In Asia, Japan will release data on the Final Manufacturing PMI, and the US will unveil some economic data on the Loan Officer Survey, ISM Manufacturing Prices, Construction Spending m/m, ISM Manufacturing PMI, Final Manufacturing PMI, Personal Income m/m, Personal Spending m/m, and Core PCE Price Index m/m. So, there is a probability that the USD/JPY pair will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Resistance. 3: 121.84.

Resistance. 2: 121.60.

Resistance. 1: 121.37.

Support. 1: 121.07.

Support. 2: 120.83.

Support. 3: 120.60.

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 February 01, 2016

The US dollar index is forming a higher high pattern below the resistance level of 99.73 after a huge rebound made at lows of January 28 . However, we should note that a strong inflection area is located around that resistance zone because the index was rejected during the session on January 21 as we can see at the H1 chart. The MACD indicator is overbought and we can see a correction towards the level of 99.43.

USDXH1.png

H1 chart's resistance levels: 99.73 / 99.97

H1 chart's support levels: 99.43 / 99.23

Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the USDX breaks with a bullish candlestick; the resistance level is seen at 99.73, take profit is at 99.97, and stop loss is at 99.49.

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

Daily analysis of GBP/USD for February 01, 2016

We should note that during the last Friday session a double top pattern was formed and after it we saw a huge decline towards the support level of 1.4198. That move told us that the bearish bias has been resumed in a short-term basis. A breakout below the level of 1.4198 will expose the cable towards 1.4098, where a key inflection area was formed during the session on January 21. The MACD indicator is reaching an oversold condition and we may see some rebounds in coming hours.

GBPUSDH1.png

H1 chart's resistance levels: 1.4309 / 1.4373

H1 chart's support levels: 1.4198 / 1.4098

Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the GBP/USD pair breaks a bearish candlestick; the support level is found at 1.4198, take profit is at 1.4098, and stop loss is at 1.4298.

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