USD/CAD intraday technical levels and trading recommendations for February 29, 2016

analytics56d4591583d5b.pnganalytics56d4591ee7e5f.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 to 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 an evident bearish rejection was expected (bearish engulfing weekly candlestick).

The recent bullish recovery was manifested around the level of 1.3750. That is why the recent bullish pullback took place towards 1.4000 during the last week.

The level of 1.4120 (Fibonacci Expansion 100%) remains a significant key-level to be watched for further price reactions.

It may offer a valid sell entry if a bullish pullback takes place above 1.3950, which is a low possibility after the depicted lower high was expressed at 1.3970.

On the other hand, the zone of 1.3370-1.3400 remains a significant support zone to be watched for a valid buy entry when the current bearish momentum extends below the prominent weekly support level of 1.3600.

Trading recommendations:

Conservative traders should wait for the current bearish pullback towards the zone of 1.3370-1.3400 for a valid buy entry. S/L should be located below 1.3320.

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

Intraday technical levels and trading recommendations for GBP/USD for February 29, 2016

analytics56d4573698d99.png

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

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

On January 21, after the GBP/USD pair moved below 1.4220, evident signs of a bullish recovery were expressed around 1.4075. Hence, previous weekly candlesticks closed above 1.4220 and 1.4360 again.

Bullish persistence above 1.4360 was mandatory to maintain enough bullish strength in the market. The first bullish target was seen at 1.4615 where the current strong bearish momentum was initiated.

As the previous weekly candlestick maintained its bearish persistence below the depicted demand zone (below 1.4200), the next weekly demand level is located at 1.3850 (a historical bottom that goes back to March 2009).

Strong bullish recovery and a possible long entry should be expected around 1.3850 (prominent weekly demand level).

analytics56d45744e89bc.png

On February 4, the market failed to close above 1.4615. An inverted hammer daily candlestick was expressed. Hence, a bearish pullback took place towards 1.4360.

Note that the GBP/USD pair was trapped between 1.4615 and 1.4220 until a recent lower high was established at the level of 1.4530. This applied extensive bearish pressure against 1.4220.

Hence, an extensive bearish breakout below 1.4220 is being manifested on the daily chart (the GBP/USD pair currently looks oversold).

That's why, signs of bullish recovery and a possible long entry should be expected around anywhere around 1.3850.

On the other hand, the broken demand zone (1.4360-1.4222) now constitutes a significant supply zone to offer bearish rejection when any upcoming bullish pullback occurs.

Trading Recommendation:

Conservative traders should wait for a valid entry around the zone of 1.3850. Initial T/P levels should be located at 1.3980 and 1.4050.

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

Intraday technical levels and trading recommendations for EUR/USD for February 29, 2016

analytics56d4545c5da37.png

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

In March 2015, EUR/USD bears challenged the monthly demand level of 1.0570, which was previously reached in August 1997.

Later in April 2015, a strong bullish recovery was observed around the mentioned demand level.

April's monthly candlestick came as bullish engulfing one. However, next monthly candlesticks (September, October, and November) reflected strong bearish rejection in the area around 1.1400.

December's candlestick came as bullish engulfing one allowing the current bullish pullback to take place towards 1.1370.

The zone of 1.1350-1.1400 stood as a significant Supply Zone to be watched during the recent bullish pullback. As we expected, recent bearish rejection is currently being manifested.

The level of 0.9450 will remain a long-term bearish target in case the current monthly candlestick closes below the depicted demand level of 1.0570.

analytics56d45466ac831.png

In October 2015, the Daily Supply Zone of 1.1360-1.1400 produced significant bearish pressure shortly after the EUR/USD pair spiked above the level of 1.1500 (daily supply level).

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

In November 2015, daily persistence below the level of 1.0800 (prominent key level) ensured enough bearish momentum towards 1.0550 (monthly demand level) where the most recent bullish swing was initiated.

During the last few weeks, a consolidation range extending between 1.1000 and 1.0800 was established on the daily chart. On February 3, a bullish breakout was executed above this consolidation range.

That is why, a quick bullish movement took place towards the zone of 1.1350-1.1450 where previous daily bottoms and the backside of the broken uptrend are depicted on the daily chart.

On February 12, a strong bearish engulfing daily candlestick was expressed near the mentioned supply level. Hence, a quick bearish decline towards 1.1000 was expected.

A bearish breakdown below 1.1000 (the upper limit of the broken range) is currently manifested on the daily chart. A quick bearish decline towards 1.0800 should be expected.

Trading Recommendation:

The levels of 1.1000 and 1.0800 will remain important demand levels to be watched for significant bullish rejection. Otherwise, a quick bearish decline towards 1.0550 will be imminent.

A valid buy entry can be offered near the lower limit of the broken consolidation range around 1.0800. S/L should be set as a daily candlestick closure below 1.0775. Initial T/P levels are located at 1.1000 and 1.1130.

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

EUR/NZD analysis for February 29, 2016

EURNZDM5.png29.png

1456749486_EURNZDDaily29.png

Overview :

Recently, EUR/NZD has been moving upwards. The price tested the level of 1.6631 in a high volume. In the daily time frame, we can observe a bullish bar in an average volume, which is a sign of strength. Be careful when selling EUR/NZD today since we may see an upward movement. According to the M5 time frame, I found a volume spike (selling climax) in the background and successful testing of supply, which is another sign of strength. Major resistance level and potential take profit level is set at the price of 1.6615.

Fibonacci Pivot Points:

Resistance levels:

R1: 1.6520

R2: 1.6580

R3: 1.6675

Support levels:

S1: 1.6330

S2: 1.6270

S3: 1.6175

Trading recommendation for today: Watch for potential buying opportunities on dips.

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

Technical analysis of GBP/USD for February 29, 2016

1456747675_GBPUSDH1.png

Overview:

  • The GBP/USD pair has dropped sharply from the level of 1.4011 towards 1.3858 since last week.
  • Today, the price is set at the level 1.4011 that will act as a weekly pivot point.
  • The GBP/USD pair is still moving between 1.4011 and 1.3716.
  • Furthermore, the price has been set below the strong resistance at the levels of 1.4011 and 1.3906.
  • Additionally, the price is in a bearish channel now. Amid the previous events, the pair is still in a downtrend from the spots of 1.4011 and 1.3906.
  • From this point, the GBP/USD pair is continuing with a bearish trend from the new resistance of 1.3906.
  • Thereupon, the price spot of 1.4011 and 1.3906 remains a significant resistance zone.
  • Therefore, a possibility that the GBP/USD pair will have downside momentum is rather convincing and the structure of a fall does not look corrective. In order to indicate a bearish opportunity below 1.3906, sell below 1.3906 with the first targets at 1.3840 and 1.3720 (the weekly support 1 is seen at 1.3716).
  • However, the stop loss should be located above the level of 1.4020.
gbpusd-pp.png
The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of EUR/USD for February 29, 2016

1456745260_EURUSDH1.png

Overview:

  • The EUR/USD pair continues moving downwards from the level of 1.0960 today. So, the pair has been dropping from the level of 1.0960 to the bottom around 1.0884. Today, the first resistance level is seen at 1.0960 followed by 1.0989 (weekly pivot point), while daily support 1 is seen at 1.0853. According to the previous events, the NZD/USD pair is still moving between the levels of 1.0960 and 1.0853; hence we expect a range of 107 pips. If the EUR/USD pair fails to break through the resistance level of 1.0960, the market will decline further to 1.0853. This would suggest a bearish market because the RSI indicator is still in a negative area and does not show any trend-reversal signs. The pair is expected to drop lower towards at least 1.0853 with a view to test the daily support. Furthermore, if the trend is able to break out through the first resistance level of 1.0853, the pair will be falling towards the new double bottom (1.0776) this week. On the contrary, if a breakout takes place at the resistance level of 1.0960, then this scenario may become invalidated.
The material has been provided by InstaForex Company - www.instaforex.com

Gold : analysis for February 29 , 2016

GOLDDaily.png29.png

GOLDH4.png29.png

Overview:

Since our last analysis, gold has been trading sideways at the price of $1,233.00. In the daily time frame, I found a supply in a volume below the average, which means that demand is still observed. At this stage, selling looks risky. Our key MA`s are heading upwards (upward trend). The key resistance level is seen at $1,262.70. If the price breaks the level of $1,262.70 in a high volume, we may see potential testing of $1,307.00. According to 4H time frame, I found successful rejection from upward trendline at the price of $1,210.00. Demand overcame supply near upward trendline, which is a sign of strength.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,233.25

R2: 1,224.93

R3: 1,227.60

Support levels:

S1: 1,217.95

S2: 1,216.30

S3: 1,123.50

Trading recommendations: be careful when selling gold and watch for potential buying opportunities on dips.

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

Global macro overview for 29/02/2016

Global macro overview for 29/02/2016:

Good news from the US was released last Friday. The world's number one economy grew more than anticipated in the last quarter of 2015 than market participants expected. Business inventories expanded at a 1% rate, more than an expected 0.7% rate. The pace is still lower than the third quarter of 2015 when it grew at a 2% rate, but the growth is still projected to accelerate even more in 2016 as US consumers are enjoying cheap oil and gasoline prices and better job opportunities. In conclusion, the revised inventory estimate entirely accounts for the upward revision of GDP growth. "The first-quarter GDP growth is on track to rebound to a very healthy 2.5 percent (rate) which should dampen any concerns about an imminent recession" said Paul Ashworth, Chief North American Economist at Capital Economics and it is rather hard not to agree with him.

Let's take a look now at the US Dollar index' technical picture in a daily time frame after the revised inventories and GDP reports were released. After a bounce from the golden trend line, the index has broken through resistance at the level of 97.21 ( now support) and it is heading higher towards the level of 99.98. The uptrend is intact and bulls are in full control of this market.

analytics56d42b9129b98.jpg

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

Global macro overview for 29/02/2016

Global macro overview for 29/02/2016:

The eurozone's CPI data was released this morning. It missed expectations coming in at -0.2%, short of the forecast of 0.0%. It was the lowest reading since March 2015. Moreover, core CPI came in at 0.7%, shy of the estimate of 0.9%; so both CPI readings dropped into negative territory in January. The conclusion is very simple here: weak numbers will put increased pressure on ECB Head Mario Draghi to take monetary action at the ECB policy meeting in March. Possible monetary moves include adopting negative interest rates and expanding quantitative easing scheme, which currently involves asset purchases of 60 billion euros a month. Each of these moves is likely to push the euro to lower levels, so markets will keep a close eye on the March ECB policy meeting.

From the technical point of view, the EUR/USD pair might drop even further below the level of 1.0711, which is the most important technical support level for this pair in the near term. Bears are clearly in control now; and as long as the level of 1.1059 is not violated, lower prices should be expected.

analytics56d42626a21bb.jpg

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

Technical analysis of USD/CAD for February 29, 2016

General overview for 29/02/2016:

A bottom of the (a) blue was established and the market moved to the upside as anticipated. The projected target levels for wave (b) blue are intraday resistance at the level of 1.3637 or upper border line of the neutral zone at the level of 1.3706. In a longer time frame, a corrective cycle from a top of 1.4687 is still in progress, but it has evolved into a complex corrective structure. Within that structure, there is a missing Y brown wave pointing to the downside.

Support/Resistance:

1.3957 - WR2

1.3706 - WR1

1.3637 - Intraday Resistance

1.3605 - Weekly Pivot

1.3503 - Intraday Support

1.3350 - WS1

Trading recommendations:

Day traders should refrain from trading and wait for a better trading setup to occur in the near term. We will open buy orders again when the corrective structure is completed.

analytics56d421f679af6.jpg

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

Technical analysis of EUR/JPY for Febuary 29, 2016

General overview for 29/02/2016:

The first impulsive wave upward was completed and now the corrective cycle is in progress with the invalidation line at the level of 122.45. To confirm that the bottom for wave B blue is in place, the price must break out above the level of 125.01 in an impulsive fashion. Nevertheless, the market is still trading in a bearish zone and the whole structure evolves into a more complex and time-consuming correction even in longer time frames. The current ABC blue labeling may not be the last one as further corrective sub-waves are still expected.

Support/Resistance:

119.43 - WS3

120.96 - WS2

122.45 - Intraday Support

122.56 - WS1

124.05 - Weekly Pivot

125.01 - Intraday Resistance

125.68 - WR1

127.18 - WR2

Trading recommendations:

Day traders should refrain from trading and wait for a better trading setup to occur in the near term. We will open buy orders when the bottom of the wave B blue is in place, so buy stop orders should be placed at the level of 125.03.

analytics56d41eb5ea66f.jpg

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

Technical analysis of USD/JPY for February 29, 2016

USDJPYM30.png

USD/JPY is expected to trade in higher range as bias remains bullish.S indices closed mixed on Friday. Shares in the banks (+1.48%), materials (+1.35%) and automobiles & components (+0.68%) sectors traded higher. Shares in the utilities (-2.73%), household & personal products (-1.55%) and food, beverage & tobacco (-1.43%) sectors were under pressure. The Dow Jones Industrial Average ended down 0.3% to 16639.97, the S&P 500 fell 0.2% to 1948.05, and the Nasdaq Composite rose 0.2% to 4590.47.

Nymex crude oil slipped 0.9% to $32.78 a barrel, while gold fell 1.5% to $1,219.80 a troy ounce. The yield on the 10-year Treasury note rose to 1.766%, from 1.699%.

On the economic data front, U.S. GDP grew QoQ at a 1% annualized rate (estimated 0.4% gain), compared with an initial estimate of 0.7% in the prior period. The GDP price index in 4Q rose 0.9% (estimated 0.8%) compared with the initial estimate of 0.8% in the last period. U.S. dollar rose against most other major currencies. The pair remains on the upside and is currently testing the support of its rising 20-period moving average. The relative strength index still stands above 50. Even though a continuation of the consolidation cannot be ruled out, its extent should be limited. Further upside is therefore expected with the next horizontal resistance and overlap set at 113.50 at first. A break above this level would call for further advance toward 114.00 in extension.

Trading Recommendation: 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. Therefore, long positions are recommended with the first target at 113.50 and the second one at 114. In the alternative scenario, short positions are recommended with the first target at 111.95 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 111.30. The pivot point is at 112.50.

Resistance levels: 113.50, 114, 114.50

Support levels: 111.95, 111.30, 111.00

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

Technical analysis of USD/CHF for February 29, 2016

USDCHFM30.png

USD/CHF is expected to trade in a higher range as a bias remains bullish. The prices remain in an uptrend after the validation of the process of higher highs and lows. Both the rising 20-period and 50-period simple moving averages play support roles, and should push the prices higher. Moreover, the relative strength index is bullish, without showing any significant reversal signals. Hence, as long as 0.9925 is not broken, look for further advance to 1.0030 and 1.0070 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. Therefore, long positions are recommended with the first target at 1.0030 and the second one at 1.0070. In the alternative scenario, short positions are recommended with the first target at 0.9895 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 0.6635. The pivot point is at 0.67.

Resistance levels: 1.0030, 1.0070, 1.0110

Support levels: 0.9895, 0.9870, 0.9820

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

Technical analysis of NZD/USD for February 29, 2016

NZDUSDM30.png

NZD/USD is expected to trade in a lower range. The pair posted a strong decline last Friday, and is now challenging its nearest support at 0.6540. A bearish cross has been identified between the 20-period and 50-period moving averages. Besides, the relative strength index is badly directed, but is now within its "oversold" area (below 30%), which may indicate a potential technical rebound. Nevertheless, as long as 0.6650 holds on the upside, any rebounds should be limited before further downside to 0.6540 and 0.650 in extension.

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 0.6540. A break of this target will move the pair further downwards to 0.65. The pivot point stands at 0.6650. 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 0.6680 and the second target at 0.6725.

Resistance levels: 0.6820, 0.6860, 0.69

Support levels: 0.6670, 0.6635, 0.66

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

Technical analysis of GBP/JPY for February 29, 2016

GBPJPYM30.png

GBP/JPY is turning down. Following the recent breakout of the 50-period moving average, the pair has clearly confirmed a bearish reversal, and should post new weaknesses in sight. The relative strength index also broke below its neutrality area at 50, and is badly directed. Last but not least, the 20-period moving average has crossed below the 50-period one. In these perspectives, as long as 157.75 holds on the upside, expect a return to 155.70 and 154.70 in extension.

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 155.70. A break of this target will move the pair further downwards to 154.70. The pivot point stands at 157.75. 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 158.50 and the second target at 159.05.

Resistance levels: 158.50, 159.05, 160.35

Support levels: 155.70, 154.70, 153.15

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

USDX technical analysis for February 29, 2016

The Dollar index has finally reached the 61.8% Fibonacci retracement resistance and is pulling back. The short-term trend remains bullish but we might see a pause for a couple of days before price resumes the bullish trend.

analytics56d3f8f7b0495.jpg

Blue lines -bullish channel

Price remains inside the upward sloping channel and above the Kumo (cloud). Price is also above the kijun- and tenkan-sen indicators confirming that trend remains in short-term bullish trend. However, the reversal at the 61.8% Fibonacci retracement resistance is the first bearish sign. Bulls need to be very cautious as there are increased chances we break the bullish cloud and touch cloud support at 97.10.

analytics56d3fbd92a0b8.jpg

The weekly close above the tenkan-sen last week was a bullish sign. We can see a back test of the tenkan-sen support (red line indicator) and then resume the up trend. If the back test does not break below the tenkan-sen and the kijun-sen (yellow line indicator) then we could expect the resumption of the up trend towards next resistance of 98.50. Overall bulls should remain under control as long as price is above the weekly cloud (at 96). Bulls want a break above 99.80 in order to confirm the start of a new up trend starting with new highs as targets.The material has been provided by InstaForex Company - www.instaforex.com

Gold technical analysis for February 29, 2016

Gold price made a strong pull back last week towards important medium-term support at $1,200-$1,210 and held above it. Now price is bouncing higher and there is a big chance that we see a strong upward move as long as we hold above $1,210.

analytics56d3f76e45c5d.jpg

Black line - resistance

Yellow line - support

Gold price has back tested Kumo (cloud) and trend line support. Price held above it and is now bouncing towards short-term resistance at $1,232. The current price formation could be a bigger triangle pattern and as long as we are above $1,210 we remain bullish short-term.

analytics56d3f7c93fd60.jpg

On the weekly chart price remains above the cloud and continues to hold above the critical support of $1,200. Oscillators are overbought but Gold price could still have more upside. The downside could come after we see some bearish divergence signals. We are still without any divergence signal.

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

Daily analysis of major pairs for February 29, 2016

EUR/USD: This pair dropped by 200 pips last week. It first dropped on Monday, and then traded sideways till Friday, and then dropped further that Friday (February 26, 2016). This is because of the weakness in the EUR, which has caused a Bearish Confirmation Pattern on the chart. The EMA 11 is below the EMA 56 on the 4-hour chart; which means the pair could trade further south.

1.png

USD/CHF: USD/CHF has been simply trading sideways last week, showcasing short-term oscillation between the support level at 0.9850 and the resistance level at 1.0000. A break is going to be above that resistance level or below that support level this week, although a break below the support level is more likely, because the resistance level at 1.0000 is a great barrier and because EUR/USD could be seen making some bullish attempt this week.

2.png

GBP/USD: GBP/USD fell by almost 440 pips last week, almost reaching the accumulation territory at 1.3850. This has reinforced the existing bearish outlook on the market, and there are chances that the GBP/USD pair would continue going south this week and next. Generally, GBP pairs are bearish (as forecasted earlier) and they would remain under selling pressure until the end of March 2016.

3.png

USD/JPY: This currency trading instrument went downwards from Monday to Wednesday, when further bearish movement was rejected and the price went upward by at least, 250 pips. This has resulted in a "buy" signal in the market. The EMA 11 has almost crossed the EMA 56 to the upside and RSI period 14 is above the level 50. The currency trading instrument could be seen trading further and further upwards this week and next.

4.png

EUR/JPY: This cross trended downwards by almost 300 pips last week, reaching the demand zone at 122.50 on Wednesday (February 24, 2016). The cross has been corrected to the upside – by over 200 pips. This kind of correction is also visible on other JPY pairs, which would make commendable bullish efforts in March 2016.

5.png

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

Technical analysis of Silver for Fbruary 29, 2016

Technical outlook and chart setups:

Silver has dropped lower and also hit the expected price around $14.60 levels, as discussed earlier. The metal is trading at $14.65/70 levels for now, and it might be looking to drop towards $14.50 levels before turning bullish again. Please note that fibonacci 0.618 support of the rally between $13.70 through $15.93 levels is falling around $14.50/55 levels. Furthermore, the past support turned resistance and trend line support would also converge at $14.50.55 levels respectively. Bulls are expected to regain control from there and resume rally. Hence it is recommended to book profits on short positions taken earlier and remain flat for now. Immediate support is seen at $14.50 levels, while resistance is $14.80/85 levels respectively.

Trading recommendations:

Take profits on short positions taken earlier and remain flat. Look to go long again on a bullish reversal.

Good luck!

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

Technical analysis of Gold for February 29, 2016

Technical outlook and chart setups:

Gold has dropped lower from $1,250.00 levels as expected and discussed earlier. The yellow metal is trading at $1,226.00/27.00 levels for now, looking to push lower towards $1,190.00 levels at least. Please note that the fibonacci 0.382 support levels (of rally between $1,170.00 through $1,263.00 levels) is also passing around $1,190.00 levels. Furthermore, an intermediary trend line support is passing through $1,180.00 levels. Hence it is recommended to remain short for now, with risk at $1,235.00 levels. Immediate resistance is seen at $1,232.00 levels, while support is at $1,200.00 levels respectively. A minimum drop towards $1,190.00 levels is expected for now.

Trading recommendations:

Remain short for now, stop at $1,235.00, targets are at $1,190.00 and $1,170.00.

Good luck!

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

Elliott wave analysis of EUR/NZD for February 29 - 2016

analytics56d3ccc34b12a.png

Wave summary:

The break below the former low at 1.6338 called for more downside pressure towards 1.6108. Till now we have seen a decline to 1.6236 from where a new rally has been seen. The question becomes whether this decline was enough or more downside pressure should be expected?

It could have been enough, but then a break above resistance at 1.6688 is a "must", if, however resistance at 1.6688 protects the upside for a break below minor support at 1.6396 more downside pressure towards 1.6108 will be expected.

Trading recommendation:

We will remain sidelined for now.

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

Elliott wave analysis of EUR/JPY for February 29 - 2016

analytics56d3cad07bed5.png

Wave summary:

The correction in wave b towards at least 127.41 seems to be well underway.

Short term, we expect minor support at 123.38 to protect the downside for the next upside pressure through 125.01 for a continuation higher to 125.56 and 127.41.

A break below support at 123.38 will call for a retest of the 122.43 low.

As we have entered a period of correction, the moves will be more erratic and we will have to be more flexible.

Trading recommendation:

We are long EUR from 123.85 with stop placed at 123.35. If you are not long EUR yet, then buy near 123.65 and use the same stop at 123.35.

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

Technical analysis of EUR/USD for February 29, 2016

1_EURUSD.jpg

When the European market opens, some economic news will be released such as Italian Prelim CPI m/m, Core CPI Flash Estimate y/y, CPI Flash Estimate y/y, German Import Prices m/m, and German Retail Sales m/m. The US will release some economic data too such as Pending Home Sales m/m, Chicago PMI. So amid the reports, EUR/USD will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Breakout BUY Level: 1.0975.

Strong Resistance:1.0969.

Original Resistance: 1.0958.

Inner Sell Area: 1.0947.

Target Inner Area: 1.0922.

Inner Buy Area: 1.0897.

Original Support: 1.0886.

Strong Support: 1.0875.

Breakout SELL Level: 1.0869.

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 29, 2016

2_USDJPY.jpg

In Asia, Japan will release the Housing Starts y/y, Prelim Industrial Production m/m, and Retail Sales y/y. As for the US, some economic reports are also due such as Pending Home Sales m/m and Chicago PMI. So there is a probability the USD/JPY pair will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Resistance. 3: 114.16.

Resistance. 2: 113.94.

Resistance. 1: 113.71.

Support. 1: 113.44.

Support. 2: 113.21.

Support. 3: 112.99.

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 DAX for February 29, 2016

The short-term picture is very clear about a possible strong resistance formed around 9603, where buyers can take profit. However, the bullish bias is still alive, as the Index is doing a consolidation above the 200 SMA in the H1 time frame. A breakout above the 9603 level will expose the DAX to test new highs.

1456709050_DAXH1.png

H1 chart's resistance levels: 9497 / 9607

H1 chart's support levels: 9411 / 9305

Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the DAX breaks a bullish candlestick; the resistance level is at 9497, take profit is at 9603, and stop loss is at 9388.

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

Daily analysis of S&P 500 for February 29, 2016

In a short-term outlook, the SP 500 is currently doing a strong bullish consolidation above the daily pivot point level of 1942.9 and the 200 SMA on H1 chart. These developments are telling us that a strong rally can happen in the next days because there is a possible higher high pattern formation. RSI indicator remains on the positive territory, supporting the bullish idea.

SPXH1.png

H1 chart's resistance levels: 1960.3 / 1969.1

H1 chart's support levels: 1942.9 / 1934.1

Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the SP 500 breaks a bullish candlestick; the resistance level is at 1960.3, take profit is at 1969.1, and stop loss is at 1951.6.

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

Daily analysis of USDX for February 29, 2016

On the H1 chart, USDX is still doing some rallies in favor of the overall bullish bias. There are new highs to be reached this week, as the Index may perform a breakout above the resistance level of 98.21, in order to test the 98.59, which is a key zone for short-term sellers. 200 SMA is still supporting the US Dollar and MACD indicator is on overbought territory.

USDXH1.png

H1 chart's resistance levels: 97.77 / 98.08

H1 chart's support levels: 97.20 / 96.80

Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the USD Index breaks with a bullish candlestick; the resistance level is at 98.21, take profit is at 98.59, and stop loss is at 97.84.

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

Daily analysis of GBP/USD for February 29, 2016

The pair is forming a lower low pattern on H1 chart after a strong decline from the 1.4000 level. Now, we could see a bearish formation that could make GBP/USD test new lows on a short-term basis. The 200 SMA is still pointing to the downside and the Cable may see some little rebounds in the process. MACD indicator is reaching oversold conditions, so that scenario could be possible to happen.

GBPUSDH1.png

H1 chart's resistance levels: 1.3963 / 1.4069

H1 chart's support levels: 1.3878 / 1.3740

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 at 1.3878, take profit is at 1.3740, and stop loss is at 1.4014.

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