NZD/USD intraday technical levels and trading recommendations for April 12, 2016

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On January 28, the depicted support at 0.6400 acted as a prominent key level offering a valid buy entry. A bullish breakout above 0.6550 was executed a few weeks ago.

Bullish persistence above 0.6550 (depicted recent support) was needed to keep the price moving towards higher bullish targets.

The price zone of 0.6750-0.6840 constituted a significant resistance zone where signs of a bearish rejection were seen during the previous few weeks (triple-top reversal pattern).

On February 9, the NZD/USD pair failed to consolidate below the depicted support level of 0.6550.

Moreover, an obvious bullish recovery was expressed around the depicted temporary support level. Hence, the recent bullish swing towards 0.6750 and 0.6860 was initiated.

In March, an obvious bullish breakout above 0.6750 and 0.6860 was executed. Hence, these price levels now constitute recent support levels.

Conservative traders were advised to have a valid BUY entry around the price level of 0.6750. S/L should be located below 0.6700.

Today, bullish persistence above 0.6850 is mandatory to ensure further bullish advancement towards 0.7070 and 0.7170 where a prominent consolidation range was previously established in June 2015.

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Technical analysis of USD/CAD for April 12, 2016

Currently USD/CAD is trading near the 1.2860 level where the pair found the support previously, and now a potential double bottom is forming. Everything is pointing to a strong support.

The Fibonacci applied to the channel breakout point shows that the price is rejecting the 0% Fibs level, which is the final downside target. At the same time 261.8% (S1) of the Fibs applied to the first corrective wave after the channel's breakout is right at the same level and is also being rejected. Besides, the price is right at the previously formed low and finally the RSI oscillator is forming a bullish divergence.

Everything is in favor of a potential reversal, and a correction up might follow. Consider buying USD/CAD while the price is near S1 (1.2850), targeting one of the resistance levels with the R5 (1.3100) being the final target. Alternatively consider a stop and reverse if the price manages to get below 1.2840 as this could trigger another wave down to test 361.8% Fibs level - S2 (1.2785)

Support: 1.2850, 1.2785

Resistance: 1.2930, 1.2980, 1.3015, 1.3055, 1.3100

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Technical analysis of GBP/NZD for April 12, 2016

After the breakout of the uptrend trend line, the price dropped substantially and the pair found the support at 0% (S2) Fibonacci level applied to the trend line's breakout point. At the same time, a strong support is formed at the 361.8% (S1) Fibs applied to the first corrective wave after the trend line's breakout.

All in all, the price does not look like moving lower the strong support area between 2.0550 and 2.0650, which could lead to a correctional move up.

Consider buying GBP/NZD on small pullbacks towards S1 (2.0650) targeting one of the resistance levels with the R4 (2.1140) area being the final target. Ideally the stop loss should be just below S2 (2.0550) but with more aggressive trading it could be also placed below S1 (2.0650).

Support:2.0550, 2.0650

Resistance: 2.0780, 2.0920, 2.1030, 2.1140

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Intraday technical levels and trading recommendations for USD/CAD for April 12, 2016

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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 at 1.4120 (Fibonacci Expansion 100%) occured.

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 1.4120 level (Fibonacci Expansion 100%) stood as a significant key level to be watched for further price reactions.

Although the 1.3170-1.3250 area was expected to offer bullish support for the USD/CAD pair, temporary bearish breakdown of the same price zone can be seen on the daily chart.

This price zone corresponds to the depicted weekly uptrend line and the upper limit of the previous consolidation range (prominent breakout level).

Previously, the 1.2975 level (61.8% Fibonacci level) stood as a prominent support which provided significant bullish rejection and prevented further decline.

On the other hand, the 1.3300 level constitutes a significant resistance as it corresponds to the 50% Fibonacci level and the backside of the broken weekly uptrend where a valid sell entry was suggested on March 24.

Those who missed the initial trade should consider the current daily closure below 1.2975 (61.8% Fibonacci level) as a valid signal to sell the USD/CAD pair. Initial T/P levels should be located at 1.2770 and 1.2550.

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Intraday technical levels and trading recommendations for GBP/USD for April 12, 2016

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On January 21, after the GBP/USD pair moved below 1.4340, evident signs of a bullish recovery were expressed around 1.4075. Hence, previous weekly candlesticks closed above 1.4340 again.

Bullish persistence above 1.4488 was mandatory to maintain enough bullish strength in the market. The first bullish target was seen at 1.4615 where the most recent bearish swing was initiated.

As previous weekly candlesticks maintained their bearish persistence below the depicted demand zone (below 1.4340), the next demand level located at 1.3845 (historical bottom that goes back to March 2009) provided significant bullish rejection on February 26.

As expected, an evident bullish recovery and a bullish engulfing weekly candlestick were expressed around 1.3850 (prominent weekly demand level). That is why, a valid buy entry was suggested near the same level.

Recently, the price zone of 1.4340-1.4488 has been a significant supply zone during the past few weeks.

Price rejection should be expected around the supply zone of 1.4340-1.4488.

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A recent lower high was achieved around the level of 1.4530. This applied extensive bearish pressure against the price level of 1.4340.

Hence, an extensive bearish breakout below 1.4340 was expressed on the daily chart. The GBP/USD pair looked oversold few weeks ago.

That is why, signs of bullish recovery and a profitable long entry were expected around 1.3850. A recent bullish swing was expressed towards the price levels around 1.4400.

On March 30, evident bearish rejection was expressed around 1.4350 (61.8% Fibonacci level). The nearest bearish target was already reached around 1.4050.

The price zone of 1.4340-1.4490 constituted a significant supply zone where a Head and Shoulders reversal pattern was expressed. Estimated bearish targets are located at 1.4060, 1.3960 and 1.3800.

This week, daily persistence below 1.4050 (the reversal pattern neckline) was needed to enhance further bearish decline.

As expected, when the market failed to push below the price level of 1.4050, a bullish movement was executed towards the price levels of 1.4200 and 1.4300 where bearish rejection should be expected again.

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Intraday technical levels and trading recommendations for EUR/USD for April 12, 2016

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

In March 2015, the EUR/USD bears challenged the monthly demand level of 1.0570, which had been 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 a bullish engulfing one. However, the next monthly candlesticks (September, October, and November) reflected a strong bearish rejection in the area around 1.1400.

December's candlestick came as a bullish engulfing one, allowing the previous bullish swing to take place towards 1.1390.

In February, the price zone of 1.1350-1.1400 acted as a significant supply zone during the previous bullish pullback.

Hence, another bearish rejection should be expected around the current price zone during the current bullish swing. If not, further bullish movement towards 1.1700 should be expected.

On the other hand, the level of 0.9450 will remain a long-term bearish target in case the monthly candlestick closes below the depicted monthly demand level of 1.0570.

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

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

Consequently, a quick bullish movement started towards the zone of 1.1350-1.1400 where previous daily bottoms and the backside of the broken uptrend were depicted on the daily chart.

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

A temporary bearish breakdown below 1.1000 (upper limit of the broken range) was seen on the daily chart. A quick bearish decline was expected towards 1.0820 where the most recent bullish swing was initiated.

Recently, bullish fixation above 1.1000 has been mandatory to allow bullish movement to continue. Bullish targets were expected around 1.1320 and 1.1400.

Similar to what happened on February 12, the supply zone of 1.1320-1.1400 stands as a significant resistance zone for the EUR/USD pair to offer bearish rejection and a valid sell entry.

A daily breakdown below the depicted uptrend line (around the 1.1320 level) is needed to ensure enough bearish momentum in the market.

Trading Recommendation:

For risky traders, a valid sell entry could be offered around the supply zone near 1.1400. T/P levels should be placed at 1.1200 and 1.1070. S/L should be placed above 1.1480.

Conservative traders should wait for a daily closure below 1.1300 (a prominent demand level and the uptrend line) to sell the EUR/USD pair. Initial T/P levels should be located at 1.1150 and 1.1080.

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Technical analysis of NZD/USD for April 12, 2016

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Overview:

  • The NZD/USD pair continues moving upwards from the level of 0.6822. Yesterday, the pair rose from the level of 0.6837 (the level of 0.6837 coincides with a ratio of 38.2% Fibonacci retracement) to a top around 0.6886. Today, the first support level is seen at 0.6837 followed by 0.6822, while daily resistance 1 is seen at 0.6921. According to the previous events, the NZD/USD pair is still moving between the levels of 0.6822 and 0.6921. On the one-hour chart, immediate resistance is seen at 0.6921, which coincides with a ratio of 78.6% Fibonacci retracement. Currently, the price is moving in a bullish channel. This is confirmed by the RSI indicator signaling that we are still in a bullish trending market. Therefore, if the trend is able to break out through the first resistance level of 0.6921, we should see the pair climbing towards the second resistance at 0.6967 to test it.
  • On the other hand, in case a reversal takes place and the NZD/USD pair breaks through the support level of 0.6800, a further decline to 0.6741 can occur. This would indicate a bearish market.

Intraday technical levels:

  • Major resistance:0.6767
  • Minor resistance:0.6921
  • Intraday pivot point:0.6886
  • Minor support:0.6822
  • Major support:0.6741
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EUR/NZD analysis for April 12, 2016

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Recently, EUR/NZD has been moving downwards. As I had expected, the price tested the level of 1.6544 in a high volume. EUR/NZD has broken the upward channel. So, only watch for selling opportunities on the rallies. According to the H4 time frame, I found bar that closed in the middle of the range, which represents that supply came in today.The first take profit at the price of 1.6610 was met (Fibonacci retracement 38.2%) and the second take profit level is set at the price of 1.6480 (Fibonacci retracement 61.8%).

Fibonacci Pivot Points:

Resistance levels:

R1: 1.6760

R2: 1.6800

R3: 1.6880

Support levels:

S1: 1.6695

S2: 1.6655

S3: 1.6485

Trading recommendation for today: Watch for selling opportunities on rallies.

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Technical analysis of USD/CHF for April 12, 2016

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Overview:

  • The USD/CHF pair continues moving downwards from the areas of 0.9560. Yesterday, the pair dropped from the level of 0.9560 to 0.9500, which coincides with the double bottom on the H4 chart. Today, resistance is seen at the levels of 0.9560 and 0.9600. So, we expect the price to set below the strong resistance at the levels of 0.9560 and 0.9600; because the price is in a bearish channel now. Amid the previous events, the price is still moving between the levels of 0.9560 and 0.9500. In overall, we still prefer the bearish scenario as long as the price is below the level of 0.9560. Furthermore, if the USD/CHF pair is able to break out the bottom at 0.9500, the market will decline further to 0.6460 (daily support 2). If the price closes below the support of 0.9500, then the trend will call for bearish market towards the targets of 0.6460 and 0.6400. On the other hand, if the USD/CHF pair is able to break the resistance of 0.9560. Then, the best location for a stop loss order is seen above 0.9600; hence, the price will rise into a bullish trend in order to go further towards the strong resistance at 0.9758 to test it again. The level of 0.9758 will form a double bottom.
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Gold analysis for April 12 , 2016

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Since our previous analysis, gold has been moving upwards. As I expected, the price tested the level of $1,262.45 in a high volume. The yesterday's analysis is still valid. I found a broken downward channel according to the H4 time frame, which is a sign that selling gold at this stage looks risky. Watch for potential buying opportunities on dips. The take profit level is set at the price of $1,278.00.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,262.00

R2: 1,267.00

R3: 1,274.00

Support levels:

S1: 1,246.00

S2: 1,242.00

S3: 1,234.00

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

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Technical analysis of USD/JPY for April 12, 2016

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USD/JPY is expected to trade with the bearish bias. Overnight, U.S. stocks gave back gains seen earlier in the session, as it did last Friday, and settled lower. The Dow Jones Industrial Average edged down 0.1% to 17556, the S&P 500 declined 0.3% to 2041, and the Nasdaq Composite was down 0.4% to 4833. Materials and bank shares posted gains, while consumer staples, pharmaceutical and biotech shares were losers.s.

Nymex crude oil rose another 1.6% to $40.36 a barrel, gold was up 1.4% to $1,258 an ounce, while the benchmark 10-year Treasury yield edged up to 1.724% from 1.722% last Friday.

Meanwhile, the U.S. dollar remained weak against most major currencies. USD/JPY edged down 0.1% further to 107.93, GBP/USD increased 0.8% to 1.4239, while EUR/USD edged up 7 points to 1.1406 (day-high at 1.1446, day-low 1.1371).

Commodities-linked currencies accelerated to the upside, with USD/CAD falling 0.7% to 1.2897, AUD/USD rising 0.6% to 0.7594, and NZD/USD surging 1.0% to 0.6857. The pair declined down to 107.60 yesterday. Although it is currently off yesterday's low, it remains capped by the key resistance at 108.50 lacking upward momentum. It is trading around the over-lapping 20- and 50-period (30-minute chart) moving averages (now at around 107.90). In case the recent slide resumes, the pair should break below 107.60 and sink further to the psychological level of 107.00.

Trading Recommendation:

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 107.60. A break of this target will move the pair further downwards to 107. The pivot point stands at 108.50. 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 109.15 and the second target at 109.95.

Resistance levels: 109.15, 109.95, 110.50

Support levels: 107.60, 107, 106.15

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Technical analysis of USD/CHF for April 12, 2016

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USD/CHF is expected to trade in a lower range as the key resistance is at 0.9580. The pair remains under pressure below its nearest resistance at 0.9580, which is expected to limit any upside potential. The relative strength index is mixed to bearish, calling for caution. Even though a technical rebound cannot be ruled out, its extent should be limited. As long as 0.9580 is not surpassed, further decline seems to be on the cards to 0.9500 and 0.9480 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 0.9500. A break of this target will move the pair further downwards to 0.9480. The pivot point stands at 0.9580. 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 0.9620 and the second target at 0.9650.

Resistance levels: 0.9620, 0.9650, 0.9675

Support levels: 0.9500, 0.9480 , 0.9450

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Global macro overview for 12/04/2016

Global macro overview for 12/04/2016:

The negotiations between Greece and its lenders continue, but Greek Finance Minister Euclid Tsakalotos remains optimistic that a deal can be reached in time before the meeting of eurozone's finance ministers on April 22. The main issue is pension cuts that the EU officials are insisting on and that the Greek government is extremely reluctant to do. Moreover, Greece and its creditors are to agree a deal that will enable the next tranche of Greece's bailout to be released from the ECB. In conclusion, the never ending saga from Greece is hitting the news wires again as the main threat for eurozone's consistency. Nevertheless, it is worth mentioning that all previous negotiations were reached in the last minute, so there is no need to spread panic at the moment.

Let's now take a look at the EUR/USD technical picture in the 4H time frame. The sideways price action is now almost two weeks old as the market is trading between the levels of 1.1325 and 1.1453. Nevertheless, despite the fact that the price action still looks bullish, the growing bearish divergence between the price and the momentum oscillator might suggest that the corrective downside breakout is near.

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Technical analysis of NZD/USD for April 12, 2016

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NZD/USD is expected to trade with a bullish bias above 0.6820. The pair remains strongly on the upside and is also supported by its rising 50-period moving average. The relative strength index stands firmly above its neutrality area at 50 and lacks downward momentum. Therefore, even though a consolidation cannot be ruled out at the current stage, its extent should be limited. As long as 0.6820 is not broken, look for further advance to 0.6905 and 0.6925 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 0.6905 and the second one, at 0.6925. In the alternative scenario, short positions are recommended with the first target at 0.6785 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 0.6755. The pivot point is at 0.6820.

Resistance levels: 0.6905, 0.6925, 0.6955

Support levels: 0.6785, 0.6755, 0.6735

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Global macro overview for 12/04/2016

Global macro overview for 12/04/2016:

The UK inflation data in the form of CPI and PPI indices is scheduled for release at 08:30 GMT today. Market participants do not expect any improvement in this area of the economy as the expected number is at the same level as a month ago: 0.3%. The PPI input, however, is expected to grow substantially from 0.1% m/m (-8.1% y/y) to 2.1% m/m (-6.2% y/y). Inflation in the UK has been well below the target for most of the last two years, with the sharp declines in oil prices being a particular downside impact on prices. Moreover, the core number has been well below the Bank of England's 2% target and even this month is only expected to rise to 1.3%. In conclusion, the BoE is nowhere near its first interest rate hike not only due to low inflation levels, but also the upcoming national referendum on June 25, 2016.

Let's now take a look at the technical picture of the GBP/USD pair on the H4 time frame. After breaking below the golden trend line, the bulls have managed to push the price back up above it again and the market is currently trading just inside of the congestion zone. Neither bulls nor bears are in control of the market as the sideways price action continues. The next resistance is seen at the levels of 1.4287 and 1.4324. The next support is seen at the level of 1.4170.

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Technical analysis of GBP/JPY for April 12, 2016

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GBP/JPY is expected to trade in a higher range as the pair is bullish above 153.05. The pair stands above its support base at 153.05, which has allowed for a temporary stabilization. Meanwhile, the relative strength index lacks downward momentum. Further upside is therefore expected with the next horizontal resistance and overlap set at 155.45 at first. A break above this level would call for further advance toward 156.70 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 155.45 and the second one, at 156.70. In the alternative scenario, short positions are recommended with the first target at 151.80 if the price moves below its pivot points. A break of this target is likely to push the pair further downwards, and one may expect the second target at 149.60. The pivot point is at 153.05.

Resistance levels: 155.45, 156.70, 157.15

Support levels: 151.80, 151.05, 149.60

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Technical analysis of USDX for April 12, 2016

The Dollar index continues to grind lower and still remains in a bearish trend. However, I expect the trend to reverse this week or, at the latest, at the start of next week. I expect the Dollar to strengthen again.

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Red line - resistance

Black lines - divergence signs

The Dollar index remains below the 4-hour Kumo (cloud) and continues to make lower lows and lower highs. Resistance is at 94.66 and at 95.35. Breaking above the latter will confirm the bullish reversal. Support is at 93.

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Blue lines - sideways channel

As expected, the Dollar index is approaching the 93 support of the lower cloud boundary and the lower channel boundary. Stochastic is at oversold levels and at least a bounce towards the upper cloud boundary at 96 is justified for the short term. I prefer to be neutral or bullish on the Dollar index at the current levels and as long as it trades above 93.

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Technical analysis of Gold for April 12, 2016

Gold made a new higher high yesterday towards the resistance of the 61.8% Fibonacci retracement and is now trading around this important level. Bulls need to see a continued support of the higher highs and higher lows pattern for new highs near the $1,300-$1,320 area to be seen.

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On the 4-hour chart, the stochastic oscillator is giving bearish divergence signals. The price remains above the Kumo (cloud) confirming the short-term trend is bullish. I prefer to be neutral or bearish at the current levels as I believe the scenario with the new high near $1,300 has less chances of success. Support is at $1,247. If broken, we are going to test $1,230-25. Resistance is at $1,260-70.

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This week has started on a bullish note holding above the weekly Kumo and weekly tenkan-sen (red line indicator). The stochastic is overbought with divergence signals. This is a warning for Gold bulls. My preferred strategy is to be patient and wait for a deep pullback in Gold prices towards $1,150 before opening long positions.The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of EUR/JPY for April 12, 2016

General overview for 12/04/2016:

The market still trades inside a possible triangle pattern which is typical for wave (b) correction. It looks like wave e of the whole structure might be completed soon and then a downward breakout should happen. Please note that the corrective cycle might evolve into a less complex and time-consuming pattern, especially if the intraday resistance at the level of 124.24 is clearly violated. For now, however, sideways price action below the weekly pivot is expected.

Support/Resistance:

122.53 - Intraday Support

124.11 - Weekly Pivot

124.24 - Intraday Resistance

125.66 - WR1

Trading recommendations:

Traders should sell the triangle pattern area with SL above the level of 124.24 and TP at the lows of the triangle pattern around the level of 122.50.

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Technical analysis of USD/CAD for April 12, 2016

General overview for 12/04/2016:

Five sub-waves in wave c of wave (a) had been completed and now the market should start the corrective cycle in wave (b). The projected target level for wave (b) is the previous wave 4 zone at the level of 1.3018. The main count is still the correct one and it indicated another possible downward wave progression towards the level of 1.2856. Nevertheless, this progression is currently developing in the yellow neutral zone and only a clear breakout below the level of 1.2856 will be considered bearish.

Support/Resistance:

1.2856 - WS1

1.2884 - Intraday Support

1.2951 - Intraday Resistance

1.3018 - Wave (b) Projected Target

1.3036 - Weekly Pivot

1.3126 - WR1

1.3218 - Local High

1.3295 - Swing High

1.3303 - WR2

Trading recommendations:

Day traders should buy the dips from the current market levels with SL below the level of 1.2850 and TP open for now. Please note that the trading inside of wave (b) might get choppy and full of fake breakouts.

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Technical analysis of EUR/JPY for April 12, 2016

Technical outlook and chart setups:

The EUR/JPY is recovering from yesterday's lows at 123.00 levels for now but the rally should be shallow before bears take control again. The pair is seen to be trading at 123.60 levels, looking to push through 124.60 levels at least. Please note that 124.60/65 levels is the fibonacci 0.382 retracement of the drop between 128.20 and 122.50 levels as depicted here (blue color). The pair should see enough selling pressure around 124.50/60 levels and continue its larger downtrend from there on. A flat wave 4 seems to be unfolding at the moment and bears are expected to be back soon. It is hence recommended to remain flat for now and look to sell around 124.60 levels. Immediate support is seen through 122.50 levels while resistance is at 124.50/60 levels respectively.

Trading recommendations:

Remain flat for now. Look to sell around 124.60 levels.

Good luck!

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Technical analysis of GBP/CHF for April 12, 2016

Technical outlook and chart setups:

The GBP/CHF pair has rallied through 1.3600/20 levels, as expected and discussed yesterday. The pair is trading at 1.3580 levels at this moment, looking to push through 1.3725 intermediary resistance as depicted here (red color). Please note that the pair has broken above the immediate line of resistance and might drop lower towards 1.3475 levels (fibonacci 0.618 of the rally between 1.3400 and 1.3620 levels), before pushing higher. It is hence recommended to remain long for now and also look to add more positions on dips if possible. Immediate resistance is at 1.3725/30 levels, while support is seen through 1.3470/75 levels respectively.

Trading recommendations:

Remain long for now and also look to add on dips, stop at $1.3400 levels, target 1.3730/80.

Good luck!

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Technical analysis of Silver for April 12, 2016

Technical outlook and chart setups:

Silver rallied through $16.00 levels yesterday before hitting fibonacci 0.786 resistance of the drop from $16.13 through $14.80 levels, and pulling back. The metal is trading at $15.80/85 levels for now and should be looking to drift lower till prices stay below $16.13 levels from here on. Please note that the metal has also produced a tweezer top candlestick pattern after hitting $16.00 levels yesterday. It indicates a potential drop lower from current levels. Hence the recommendation is to remain short for now, with risk at $16.25 levels. Immediate resistance is seen at $16.13 levels, while support is lower at $15.10 levels. Bears would remain in control till prices stay below $16.13 levels.

Trading recommendations:

Remain short now, stop at $16.25 levels, target is open.

Good luck!

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

Technical analysis of Gold for April 12, 2016

Technical outlook and chart setups:

Gold rallied and hit resistance at $1,257.00/58.00 levels yesterday before pulling back lower. The metal is trading at $1,253.00 at the moment, and is expected to drift lower at least towards $1,190.00 levels. Please note that the metal is expected to retrace the entire rally from $1,046.00 through $1,283.50 levels as depicted here (blue color). Furthermore, a fibonacci convergence is also seen at $1,160.00 levels, where the countertrend extensions meet with retracement (red color). It is hence recommended to remain short for now with risk above $1,270.00 levels. Immediate resistance is seen at $1,270.00 levels, while support is at $1,190.00 levels respectively.

Trading recommendations:

Remain short for now, stop at $1,270.00, target $1,190.00 and $1,160.00.

Good luck!

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

Elliott wave analysis of EUR/NZD for April 12 - 2016

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Wave summary:

We were looking for a break above resistance at 1.6830 and instead we have seen a break below support at 1.6605. This cross continues to disappoint and do whatever it can to cover up its real intentions.

We will stay focused towards the upside as long as support at 1.6373 is able to protect the downside and will be looking for support near 1.6499 for a break above 1.6656 for a new test of resistance at 1.6830 and 1.6874 and only above the latter calls for upside acceleration.

Trading recommendation:

Our stop at 1.6600 was hit for a nice profit. We will buy EUR again at 1.6505 or upon a break above 1.6653 with stop placed at 1.6370.

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

Elliott wave analysis of EUR/JPY for April 12 - 2016

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Wave summary:

Red wave [iv] has turned into a triangle consolidation, which should be over soon for a downside thrust towards 120.98 as the next downside target in red wave [v] and red wave iii.

In the short term, we should see minor resistance at 123.73 protect the upside for a break below minor support at 123.02 and, more importantly, a break below support at 122.80 confirming that a downside thrust has been seen for a decline to 120.98.

Trading recommendation:

We are short in EUR from 127.35 and will move our stop lower to 123.80 and take profit at 121.05.

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

Technical analysis of EUR/USD for April 12, 2016

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When the European market opens, some economic news will be released such as the German WPI m/m, German Final CPI m/m. The US will release economic data too such as the Federal Budget Balance, Import Prices m/m, NFIB Small Business Index. So amid the reports, EUR/USD will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Breakout BUY Level: 1.1464.

Strong Resistance: 1.1457.

Original Resistance: 1.1446.

Inner Sell Area: 1.1435.

Target Inner Area: 1.1408.

Inner Buy Area: 1.1381.

Original Support: 1.1370.

Strong Support: 1.1359.

Breakout SELL Level: 1.1352.

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 April 12, 2016

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In Asia, Japan will release the Prelim Machine Tool Orders y/y, Bank Lending y/y and the US will release some economic data such as the Federal Budget Balance, Import Prices m/m, NFIB Small Business Index. So there is a probability the USD/JPY will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Resistance. 3: 109.59.

Resistance. 2: 109.18.

Resistance. 1: 108.79.

Support. 1: 108.29.

Support. 2: 107.89.

Support. 3: 107.48.

Disclaimer: Trading Forex (foreign exchange) on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

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

Daily analysis of major pairs for April 12, 2016

EUR/USD: There is still a sideways movement here. This pair also had a flat movement last week, for the price was unable to close above the resistance line at 1.1450 in spite of forays into it (the resistance line at 1.1400 was also subjected to desperate attacks from the bulls).

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USD/CHF: The USD/CHF consolidated on Monday, not going below the support level at 0.9500. The support level should be broken to the downside, reaching another support level at 0.9000. A breakout would happen this week, which would most probably favor the bears. There is a Bearish Confirmation Pattern in the market.

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GBP/USD: The Cable traded higher on Monday, rising from the accumulation territory at 1.4100 and reaching the distribution territory at 1.4250. This is a movement of 150 pips, and as it was forecasted, the upward movement could continue this week (and it would be visible on other GBP pairs). A movement above the distribution territory at 1.4350 would mean the end of the current bearish bias.

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USD/JPY: Here, the EMA 11 is below the EMA 56 and the RSI period 14 is below the level 50. Further southward journey is possible. There is a strong Bearish Confirmation Pattern on the chart, which would hold out as long as the price continues to journey southwards. This week, bears would target the demand levels at 107.50, 107.00 and 106.50.

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EUR/JPY: The bears are still willing to push the price further southward here. There is a very strong bearish outlook on the market (and of course, other JPY pairs). The bears should be able to target the demand zones at 122.50, 122.00 and 121.50 this week. Any rallies we see here might be an opportunity to sell short at better prices.

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Daily analysis of USDX for April 12, 2016

USDX is very weak and now we're seeing a possible attempt to break the support level of 93.95, in order to extend the decline until the 93.24 price zone. The bearish bias is being supported by the overall structure of the Index formed below the 200 SMA on the H1 chart, which is also showing us various bearish formations on the road.

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H1 chart's resistance levels: 94.40 / 94.85

H1 chart's support levels: 93.95 / 93.24

Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the USD Index breaks with a bearish candlestick; the support level is at 93.95, take profit is at 93.24, and stop loss is at 94.65.

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

Daily analysis of GBP/USD for April 12, 2016

On the H1 chart, GBP/USD had a rally during yesterday's session above the 200 SMA and found strong resistance around the 1.4278 level, where a bearish trend line was placed from the March 30th session's highs. That's why we would like to see more declines in coming days, toward the support zone of 1.4163, in order to resume the downside bias.

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H1 chart's resistance levels: 1.4278 / 1.4315

H1 chart's support levels: 1.4225 / 1.4163

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 1.4225, take profit is at 1.4163 and stop loss is at 1.4288.

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