EUR/NZD analysis for April 18, 2016

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Recently, EUR/NZD has been moving sideways around the price of 1.6300. According to daily time frame, I found that supply is still present in the market and buying at this stage looks risky. My advice is to watch for selling opportunities on rallies. The take profit level and strong support is set at the price of 1.6135. According to daily bar, I found some form of up-thrust (supply overcoming demand), which is a strong sign of weakness.

Fibonacci Pivot Points:

Resistance levels:

R1: 1.6410

R2: 1.6450

R3: 1.6520

Support levels:

S1: 1.6275

S2: 1.6220

S3: 1.6150

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

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Gold analysis for April 18, 2016

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Since our previous analysis, gold has been moving upwards. The price tested the level of $1,241.43 in a low volume. According to the daily time frame, I found that the head and shoulders pattern (topping formation) is forming. I have placed Fibonacci retracement and found 38.2% at the price of $1,238.00 (successfully held). Watch for intraday selling opportunities on rallies. The first take profit level is set at the price of $1,217.00. The valid breakout in a high volume of $1,216.50 will confirm the head and shoulders formation.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,240.70

R2: 1,241.90

R3: 1,243.80

Support levels:

S1: 1,236.90

S2: 1,235.70

S3: 1,233.80

Trading recommendations for today: Be careful when buying and watch for potential selling opportunities.

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NZD/USD intraday technical levels and trading recommendations for April 18, 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 to be watched for valid BUY entries.

Conservative traders were advised to have a valid BUY entry around the price level of 0.6760. It's already running in profits. S/L should be elevated to 0.6800 to secure some profits.

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.

On the other hand, a daily closure below 0.6850 brings the NZD/USD pair again towards the price level of 0.6760.

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USD/CAD intraday technical levels and trading recommendations for April 18, 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 (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%) occurred.

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 resistance level where significant bearish rejection was applied.

Although the area of 1.3050-1.3250 was expected to offer bullish support for the USD/CAD pair, bearish breakdown of the same price zone was executed as depicted on the daily chart.

The price level of 1.3300 constituted 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.

Since March 18, the USD/CAD pair has been trapped within the consolidation range between 1.3300 - 1.2970 until recent bearish breakdown occurred on April 11.

Traders who missed the initial entry around 1.3300 should consider the current pullback towards 1.2975 (the 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 18, 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.

That is why, evident bearish rejection should be expected around the current supply zone of 1.4340-1.4488. The nearest destination for the GBP/USD pair would be located at 1.3845.

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

Hence, the GBP/USD pair looked oversold when the previous bearish decline extended below 1.4040 (temporary support).

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

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.

On the other hand, the market has failed to push below the price level of 1.4050 on April 7. Hence, a bullish movement was executed again towards the price levels of 1.4340 where strong bearish rejection and a valid SELL entry were offered again.

Initial bearish target should be located at 1.4050 where the neckline of the head and shoulders reversal pattern is located.

This week, daily persistence below 1.4050 (reversal pattern neckline) will be needed to enhance further bearish decline towards 1.3950 and 1.3800.

Otherwise, the GBP/USD pair will remain trapped between the price levels of 1.4050 and 1.4340.

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Intraday technical levels and trading recommendations for EUR/USD for April 18, 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 comes to close 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 consolidation 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 projected towards 1.1320 and 1.1400.

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

Moreover, a Head and Shoulders reversal pattern is being expressed around this supply zone. Hence, another valid entry can be offered at retesting of the price level of 1.1320 (the right shoulder of the reversal pattern).

Daily persistence below the depicted uptrend line (the level of 1.1320) is needed to ensure more bearish momentum in the market.

Trading Recommendation:

In previous articles, a valid sell entry was suggested around the supply zone of 1.1400. It's already running in profits. T/P levels should be placed at 1.1200 and 1.1070. S/L should be lowered to 1.1360 to secure some profits.

Conservative traders can have a valid SELL entry around the current price zone of 1.1330-1.1350. Initial T/P levels should be located at 1.1250, 1.1150 and 1.1080.

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Technical analysis of GBP/USD for April 18, 2016

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Overview:

  • The GBP/USD pair is showing signs of strength following a breakout of the highest level of 1.4150. On the H1 chart, the level of 1.4150 coincides with 23.6% of Fibonacci, which is expected to act as minor support today. Since the trend is above the 23.6 % Fibonacci level, the market is still in an uptrend. But, major support is seen at the level of 1.4082. Furthermore, the trend will show strength as long as it is still above the moving average (100). Thus, the market is indicating a bullish opportunity above the above-mentioned support levels. The bullish outlook remains the same as long as the 100 EMA is headed to the upside. Therefore, strong support will be found at the levels of 1.4082 and 1.4150 providing a clear signal to buy with a target seen at 1.4214. If the trend breaks the minor resistance at 1.4214, the pair will move upwards continuing the bullish trend development to the level of 1.4340 in order to test the daily resistance 1.

Intraday technical levels:

  • R3: 1.4598
  • R2: 1.4472
  • R1: 1.4340
  • PP: 1.4214
  • S1: 1.4082
  • S2: 1.3956
  • S3: 1.3824
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Technical analysis of EUR/USD for April 18, 2016

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Overview:

  • Today, a major support is seen at the level of 1.1233. Moreover, the double bottom is also coinciding with a 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. In the H1 time frame, a minor resistance is found at the level of 1.1326 which means that the level of 1.1326 will be set above the moving average 100. Therefore, it will be advantageous to buy above the resistance area of 1.1326 with the first target at 1.1376. From this point, if the pair closes above the weekly pivot point of 1.1326, the EUR/USD pair may resume it movement to 1.1420 to test the weekly resistance 1. On the other hand, stop loss should always be taken into account, accordingly, it will be beneficial to set the stop loss below the last bottom at 1.1189.

Daily key levels:

18/04/2016

  • Major resistance:1.1557
  • Minor resistance:1.1420
  • Intraday pivot point:1.1326
  • Minor support:1.1189
  • Major support:1.1095
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Global macro overview for 18/04/2016

Global macro overview for 18/04/2016:

The New Zealand inflation recovered from the lowest level in 15 years, but it is still below the regulator's targets. The Statistics New Zealand reported that CPI climbed 0.2% in the January-March period that was stronger than the median forecast of a zero change and much higher than the 0.5% decrease seen in the previous quarter. The main contribution to that surge came from tobacco sales ( advancing 9.4%) and fruit sales (advancing 8.2%). In conclusion, this reading has left some room for the RBNZ to cut the rates even further and Governor Graeme Wheeler might cut the rates again if needed after cutting it to a record-low of 2.25% in March.

Let's now take a look at the technical picture of NZD/USD in the daily time frame. The current situation is in the advantage of bulls as the market continues to make higher highs and higher lows. This upward move is not very dynamic, but it shows bulls are still in control over this market. The next resistance is seen at the level of 0.6953 - 0.6965 and the next important support is seen at the level of 0.6558 - 0.6543.

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Global macro overview for 18/04/2016

Global macro overview for 18/04/2016:

During the recent meeting in Doha, OPEC and non-OPEC countries failed to agree on an output freeze. The growing tension between Saudi Arabia and Iran and the inability of the other oil producers to agree on a loose commitment to freeze output for a short period of time was the main reason for the talks collapse. In conclusion, the oil was sold heavily after the news and currently there is no real reason for it not to fall even further as Iran strongly claims to return to the pre-sanctions levels. Declining crude oil production in the USA might help support the prices to some extent. The next OPEC meeting is in June.

Let's now take a look at the crude oil technical picture in the 4H time frame. We can see the weekend gap marked as yellow triangle and the broken golden trend line. Moreover the market is trading below the 21,50 and 100 moving averages, so it looks like bears are in control over this market. Any break below the level of 37.41 (H4 candle low) will support this view especially if there will be no intention to fill the gap.

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Technical analysis of USD/CAD for April 18, 2016

General overview for 18/04/2016:

The wave (b) extended higher during the weekend, but it looks like it was capped around the 50%Fibo at the level of 1.2985. If this is the top for wave (b) blue, then the bears should now break out below the intraday support at the level of 1.2872 and follow towards the level of 1.2743. If the intraday support will hold and only the weekend gap will be filled, then the top for the wave (b) blue might extend higher.

Support/Resistance:

1.2643 - WS2

1.2743 - Local Low

1.2808 - WS1

1.2897 - Intraday Support

1.2912 - Weekly Pivot

1.2989 - Intraday Resistance

1.3080 - WR1

1.3181 - WR2

Trading recommendations:

Day traders should sell the market at the current prices with SL above the level of 1.2999 and TP at the level of 1.2872 (minimum).

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Technical analysis of EUR/JPY for April 18, 2016

General overview for 18/04/2016:

The impulsive wave progression to the downside is developing as anticipated. The wave 3 purple of the overall five waves was made and now the market is in corrective cycle, wave 4. The correction can evolve into complex and time-consuming pattern, but cannot violate the level of 122.75. When the weekend gap is filled, the market should reverse and move lower to complete the impulsive progression.

Support/Resistance:

121.27 - WS1

121.69 - Intraday Support

122.53 - Intraday Resisance

122.63 - Weekly Pivot

122.72 - Invalidation Level

123.12 - WR1

124.21 - Technical Resistance

124.48 - WR2

124.98 - WR3

Trading recommendations:

Traders who are still short ( as recommended last week), should move the SL just above the level of 122.73 and set TP at the level of 121.27.

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Technical analysis of Silver for April 18, 2016

Technical outlook and chart setups:

Silver is trading at $16.10/15 levels for now, after hitting $16.37 levels earlier as expected. The metal has taken out resistance at $16.35 levels, completing a 5-wave rally from $13.70 levels, as depicted here on the 4H chart. Please note that the next high probable direction is expected on the lower side, towards 15.40/50 levels, as shown with an arrow here. It is recommended to initiate short positions now, with risk above $16.40 levels respectively. Immediate resistance is at $16.35/40 levels, while support is at $15.90 levels respectively. Bears are expected to remain in control till prices remain below $16.40 levels.

Trading recommendations:

Remain short now, stop is at 16.50 levels, target is at 14.40/50 levels.

Good luck!

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Technical analysis of Gold for April 18, 2016

Technical outlook and chart setups:

Gold is trading at $1,235.00/36.00 levels at this moment, looking to hit $1,247.00/48.00 levels before turning lower again. The yellow metal looks to be in a counter trend rally before resuming its down trend. Please note that the metal earlier reversed from $1,283.00 levels, dropping lower into $1,207.00 levels (not depicted here). Furthermore, the metal reversed from $1,262.00 levels (the Fibonacci 0.618 retracement of the above drop), indicating deeper correction ahead. It is hence recommended to sell into rallies at $1,248.00 levels, with risk at $1,263.00 levels for now. Immediate resistance is seen at $1,248.00/50.00 levels, while support is at $1,222.00 levels respectively.

Trading recommendations:

Look to sell around $1,248.00/50.00 levels, stop is at $1,263.00, target is $1,190.00.

Good luck!

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Daily analysis of major pairs for April 18, 2016

EUR/USD: The bias on this market is getting neutral owing to the consolidation that was witnessed in the last two weeks. Even last week, the price merely corrected a bit lower. This week, the support lines at 1.1250 and 1.1200 should prevent further southwards movement, as the bulls effect a nice rally, which would take the price towards the resistance lines at 1.1400 and 1.1450. Some EUR pairs could also rally this week.

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USD/CHF: Although this pair trended upwardly last week in the context of a downtrend, there is not yet a Bullish Confirmation Pattern in the chart. In case the price moves further upwards by 150 pips, there would be a confirmed bullish signal in the market. Nonetheless, there is going to be a bearish journey this week, which would strengthen the recent bearish outlook and enable the price to reach the support levels at 0.9600, 0.9650, and 0.9500.

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GBP/USD: The Cable was very volatile last week, with no clear victory between bulls and bears. There should be a directional movement this week, which would most probably favor bulls. A wave of rally should carry the price to the distribution territories at 1.4300 and 1.4350 this week. Stamina should also be witnessed on other GBP pairs this week, like GBP/CAD.

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USD/JPY: This currency trading instrument moved upwards by 190 pips between Monday and Thursday last week. On Friday, the price, however, corrected lower in solidarity with an extent bearish bias in the market. Rallies should be seen as short-selling opportunities because the price is expected to trend lower this week.

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EUR/JPY: The EUR/JPY pair went sideways throughout last week. The market was caught in an equilibrium phase, but there would be a breakout this week. The EUR/JPY cross, which closed below the supply zone at 123.00 on Friday, is expected to trend lower this week, reaching the demand zones at 122.00 and 121.50.

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Technical analysis of USDX for April 18, 2016

The Dollar index has made a very shallow short-term pullback towards 94.50 and is now moving back up to test the recent highs and confirm the bullish reversal on the daily and weekly time frames.

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Short-term resistance is at 95 while short-term support at 94.50 where the latest low was made and where the 38% Fibo is found. I was expecting a deeper correction for the Dollar index but this could already be it. A break above 95 will confirm the pullback is over. The price is above the Ichimoku cloud so the downside is currently limited to testing the cloud support at 94.40.

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On a weekly basis, the price is still trapped inside the Kumo (cloud) and only a break above it at 95.20 could confirm a bullish reversal. The stochastic oscillator is oversold so we have another reason to expect a bigger bounce in the Dollar index. At the current levels I prefer to be either bullish or at least neutral (certainly not bearish) on the Dollar index. The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of USD/JPY for April 18, 2016

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USD/JPY is expected to trade with a bearish bias. Last Friday, US stocks retreated slightly, dragged by shares in technology, energy and semiconductor sectors. The Dow Jones Industrial Average edged down 0.2% to 17897, the S&P 500 slid 0.1% to 2080, and the Nasdaq Composite was down 0.2% to 4938.

Nymex crude oil gave up another 2.8% to $40.36 a barrel last Friday. Furthermore, this morning, following oil producers' failure to reach an output freeze deal at a meeting in Doha on Sunday, crude oil plunged as much as 6.8% down to $37.61 a barrel.

Boosted by oil prices' slide, the US dollar strengthened against the Canadian dollar, with the USD/CAD surging up to 1.3% to 1.2985 this morning from last Friday's 1.2819. And AUD/USD was once down 1.4% to 0.7588 this morning.The pair opened trade with a bearish gap this morning which has not yet been filled. Currently it has broken below the lower Bollinger band, calling for an acceleration to the downside. And the intraday relative strength index has dropped below the oversold level of 30 lacking upward momentum. The intraday outlook has turned very bearish and the pair should re-visit the first downside target at 107.75 before declining further to 107.30.

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 107.70. A break of this target will move the pair further downwards to 107.30. The pivot point stands at 108.85. 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 109.45 and the second target at 109.75.

Resistance levels: 109.45, 119.75, 110.10

Support levels: 107.70, 107.30, 107

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Technical analysis of EUR/JPY for April 18, 2016

Technical outlook and chart setups:

The EUR/JPY drops lower and prints 121.70 levels today as expected earlier. The pair is seen to be trading at 121.92 levels, and should be looking to rally in a countertrend (3 waves) from here. The pair should be looking to break above its resistance trend line, and produce a meaningful retracement higher. Structurally also, the drop from 128.20 levels looks to be an impulse (5 waves) and hence a corrective rally is expected. It is hence recommended to exit short positions taken earlier and look to go long from here. Immediate resistance is seen at 124.00/25 levels, while support is at 121.70 levels respectively.

Trading recommendations:

Please book profits on short positions taken earlier. Look to go long now, after a bullish signal confirmation.

Good luck!

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Technical analysis of GBP/JPY for April 18, 2016

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GBP/JPY is expected to trade in a lower range as 152 is in sight. The pair is accelerating on the downside and is looking for a lower bottom. Meanwhile, the relative strength index is badly directed. The first target to the downside is set at the horizontal support and overlap at 152. A break below this level would open way to further weakness toward 151.40.

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 152. A break of this target will move the pair further downwards to 151.40. The pivot point stands at 154.05. 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 154.75 and the second target at 155.30.

Resistance levels: 154.75, 155.30, 156.70

Support levels: 152, 151.40, 150.70

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Technical analysis of NZD/USD for April 18, 2016

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NZD/USD is expected to trade in a higher range but the extent of the upside is limited. The pair is still moving sideways within the range between 0.6840 and 0.6950, and is likely to challenge the upper boundary in sight. The relative strength index is mixed to bullish, calling for a rebound. Besides, the 20-period and 50-period moving averages are on the upside. To sum up, as long as 0.6875 is not broken, look for a limited bounce to 0.6950 and 0.6975 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 0.6950 and the second one, at 0.6975. In the alternative scenario, short positions are recommended with the first target at 0.6840 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 0.6820. The pivot point is at 0.6875.

Resistance levels: 0.6950, 0.6975, 0.7015

Support levels: 0.6840, 0.6820, 0.6790

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Technical analysis of USD/CHF for April 18, 2016

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USD/CHF is expected to trade with a bullish bias. The pair managed to hold above its horizontal support at 0.9630, and is now posting some consolidations. Even though a continuation of the consolidation cannot be ruled out at the current stage, its extent should be limited. In addition, the relative strength index lacks downward momentum. To conclude, as long as 0.9630 is not clearly broken, look for a new rise to 0.9710 and 0.9740 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 0.9710 and the second one, at 0.9740. In the alternative scenario, short positions are recommended with the first target at 0.9590 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 0.9560. The pivot point is at 0.9630.

Resistance levels: 0.9710, 0.9740, 0.98

Support levels: 0.9590, 0.9560 , 0.95

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Technical analysis of Gold for April 18, 2016

Gold continues to trade sideways inside a triangle formation. The trend is neutral as the price is trapped inside a trading range between $1,260 and $1,215.

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Black lines - triangle

Gold is inside the 4-hour chart Kumo (cloud) as bulls try to support prices. Short-term support is at $1,223 and next at $1,215. Resistance is at $1,245 and next at $1,260. Currently I prefer to be neutral as the price can go either way from current levels.

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On a weekly basis, the price has started giving some bearish reversal signals. The price closed last week below the tenkan-sen indicator (red line). The second bearish sign is the fact that the stochastic oscillator is turning lower from overbought levels after a bearish divergence where the stochastic did not make a new high as the price did. I continue to expect Gold to move at least towards $1,190 as the most probable scenario.The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of GBP/CHF for April 18, 2016

Technical outlook and chart setups:

The GBP/CHF pair reversed sharply after hitting highs at 1.3856 levels on Friday. Further, it made lows at 1.3640 levels in the early trade today before pulling back higher. Please note that the pair is setting up for a deeper correction towards 1.3500/25 levels, before resuming its uptrend. Also note that the pair has already broken out of its immediate trend line resistance and the drop would test its back side, which is support now. It is hence recommended to remain short for now with risk above 1.3756 levels, then turn bullish. Immediate support is seen at 1.3600 levels, while resistance is seen at 1.3750/60 levels respectively.

Trading recommendations:

Remain short now, stop at 1.3770 levels, target at 1.3750 levels. Then turn long.

Good luck!

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Elliott wave analysis of EUR/NZD for April 18 - 2016

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Wave summary:

We continue to look for support at 1.6229 being able to protect the downside for a clear break above 1.6492 that will call for a continuation higher to 1.6830 and above.

Only an unexpected break below 1.6229 and, more importantly, a break below support at 1.6086 will force us to make a recount of the rally since the 1.5784 low.

Trading recommendation:

We are long in EUR from 1.6325 with stop placed at 1.6225. If you are not long in EUR yet, then buy a break above 1.6492 and use the same stop, but expect to move it higher soon.

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Elliott wave analysis of EUR/JPY for April 18 - 2016

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Wave summary:

On Friday, we saw a failure to break clearly below 122.54 indicating that a fifth wave failure has been seen for red wave [v] and red wave [iii]. However, we expected resistance at 123.66 would protect the upside for another run towards the downside and a break below 122.54. We saw a corrective high at 123.57 for red wave iv and today, we have seen a clear break below the 122.54 low. With the first support at 121.75 already broken, we should expect more downside towards the next support at 120.44.

Trading recommendation:

We are short in EUR from 123.76 and will move our stop lower to 122.90 and will place our take profit at 120.50.

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Daily analysis of USDX for April 18, 2016

USDX is finding dynamic support above the 200 SMA, but the overall structure is bearish, as the price action is favoring the lower low pattern formations on a short-term basis. A breakout below the 94.40 level will expose the Index towards the 94.08 price level. However, a rebound at the current stage will push the Index higher toward the 95.21 level.

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H1 chart's resistance levels: 94.85 / 95.21

H1 chart's support levels: 94.85 / 94.40

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 94.40, take profit is at 94.08, and stop loss is at 94.72.

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Daily analysis of GBP/USD for April 18, 2016

The pair is trying to ride a bullish trend above the 200 SMA on the H1 chart, but it seems it could restart the overall bearish bias toward the 1.4108 level. If a breakout happens below there, then we can expect another decline to the April 6th lows. The Cable is expected to find strong resistance at current levels.

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H1 chart's resistance levels: 1.4225 / 1.4278

H1 chart's support levels: 1.4163 / 1.4108

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 1.4163, take profit is at 1.4108 and stop loss is at 1.4217.

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Technical analysis of EUR/USD for April 18, 2016

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When the European market opens, some economic news will be released such as the German Buba Monthly Report. The US will release economic data too such as the NAHB Housing Market Index. So amid the reports, EUR/USD will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Breakout BUY Level: 1.1352.

Strong Resistance: 1.1346.

Original Resistance: 1.1335.

Inner Sell Area: 1.1324.

Target Inner Area: 1.1298.

Inner Buy Area: 1.1272.

Original Support: 1.1261.

Strong Support: 1.1250.

Breakout SELL Level: 1.1244.

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 18, 2016

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In Asia, Japan will not release any economic data but the US will release some economic data such as the NAHB Housing Market 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: 108.63.

Resistance. 2: 108.42.

Resistance. 1: 108.21.

Support. 1: 107.95.

Support. 2: 107.74.

Support. 3: 107.52.

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