NZD/USD intraday technical levels and trading recommendations for April 21 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. The 0.6550 level was broken above a few weeks ago.

Bullish persistence above 0.6550 (depicted recent support) was necessary 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 at 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 should use a valid buy entry around the 0.6760 mark. It is already running in profits. S/L should be raised to 0.6880 to offset the risk and secure more profits.

This week, bullish persistence above 0.6850 (recent support) is mandatory to maintain enough bullish momentum in the market.

Conservative traders should consider a bearish pullback towards 0.6850 as a buying signal with bullish targets at 0.6960, 0.7050 and 0.7150.

On the other hand, a daily closure below the 0.6850 level enhances a quick bearish movement towards 0.6750 where a better buy entry can be offered.

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USD/CAD intraday technical levels and trading recommendations for April 21 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, the same price zone was broken below as depicted on the daily chart.

The 1.3300 level stands as 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 had been trapped within the consolidation range between 1.3300 and 1.2970 until a bearish breakout took place on April 11.

Traders who missed the initial entry around 1.3300 sould consider the recent pullback towards 1.2975 (61.8% Fibonacci level) as a valid signal to sell the USD/CAD pair. Next T/P level should be located at 1.2450.

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Intraday technical levels and trading recommendations for GBP/USD for April 21 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) where a significant bullish swing was initiated on March 1.

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

That is why, 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 the Head and Shoulders reversal pattern was expressed. Estimated bearish targets were located at 1.4060, 1.3960, and 1.3800.

On April 7, the market failed to push below the price level of 1.4050. Hence, a bullish movement was executed again towards the price levels of 1.4340 where the depicted daily downtrend comes to meet the GBP/USD pair.

This week, daily persistence below 1.4350 (61.8% Fibonacci level) and 1.4050 (the 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 (the reversal pattern neckline) and 1.4480 (79.6% Fibonacci level).

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Intraday technical levels and trading recommendations for EUR/USD for April 21 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. 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.

On March 10, bullish fixation above 1.1000 was 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.

The Head and Shoulders reversal pattern is being expressed around this supply zone. Hence, a valid SELL entry can be offered around the price area of 1.1350-1.1400 (the right shoulder of the reversal pattern).

Moreover, daily closure below the price level of 1.1320 is needed to ensure further bearish momentum in the market.

Trading Recommendation:

In the 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 placed above 1.1450.

Risky traders can have a valid SELL entry around the current price zone of 1.1350-1.1400. Initial T/P levels should be located at 1.1250, 1.1150, and 1.1080.

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EUR/NZD analysis for April 21 2016

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Recently, EUR/NZD has been moving sideways at the price of 1.6226. The pivotal point at 1.6270 held successfully and I would like to see a valid breakout of 1.6270 to confirm further upward continuation. If the price breaks the level of 1.6270 in a high volume, we may see potential testing of 1.6470. According to the 5M time frame, I found successful testing of supply, which is a sign that selling looks risky. Watch for buying opportunities on the dips.

Fibonacci Pivot Points:

Resistance levels:

R1: 1.6250

R2: 1.6285

R3: 1.6350

Support levels:

S1: 1.6120

S2: 1.6080

S3: 1.6020

Trading recommendation for today: Watch for a potential breakout of a pivotal point at the price of 1.6270. The valid breakout will confirm further upward continuation.

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Daily analysis of major pairs for April 21 2016

EUR/USD: This market went bearish on Wednesday – just in the opposite direction with USD/CHF which moved upwards that day. The bearish movement of the EUR/USD pair was not that significant. Therefore, the market cannot be really bearish unless the price goes below the support line at 1.1200, which will require a strong selling pressure.

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USD/CHF: The USD/CHF pair broke upwards by over 100 pips yesterday, causing a new bullish signal to form in the market. There is now an attractive bullish confirmation pattern on the 4-hour chart. Right now, the price is above the support level at 0.9700, and it can reach the resistance levels at 0.9750 and 0.9800 before the end of this week.

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GBP/USD: This trading instrument merely consolidated on Wednesday as the price stayed between the accumulation territory at 1.4350 and the distribution territory at 1.4400 - all in the context of an uptrend. Further northwards movement is expected which is likely to come in form of a breakout today. The bulls may easily push the price towards the distribution territory at 1.4450. Some fundamental figures are expected today and they would have impact on the market.

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USD/JPY: This pair was able to continue the bullish movement it started at the beginning of this week. The price has moved upwards by 180 pips, threatening to the recent bearish outlook on the pair, and further bullish movement by 100 pips will result in an invalidation of the recent bearish outlook, for the EMA 11 would have crossed the EMA 56 to the upside by then. The RSI with the period 14 is already above the level 50.

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EUR/JPY: It is rational to say there is now a "buy" signal on this cross. The EMA 11 has crossed the EMA 56 to the upside and the RSI with the period 14 has crossed the level 50 to the upside. Thus, the price can continue going upwards, attaining the supply levels at 124.50 and 125.00.

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Technical analysis of GBP/NZD for April 21 2016

GBP/NZD is steadily moving lower and at this point no obvious signs of reversal are presented. Price broke below the strong support near 2.0600 and currently it is retesting it.

At the same spot, GBP/NZD rejected the downtrend trend line once. It may retest and reject it once again. Consider selling upon the breakout of the today's low at 2.0530, targeting 2.0300 psychological support level that corresponds with the lower trend line of the descending channel.

Support: 2.0300

Resistance: 2.0600

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Technical analysis of CAD/JPY for April 21 2016

After finding a bottom near 82.00, CAD/JPY started to move higher. Yesterday's broke above the ascending channel suggests that the uptrend is likely to continue.

Price rejected the channel breakout point (50% Fibonacci - S1) once and now it could be rejecting it again. Consider buying while the rate is near S1 (86.60) with the stop loss below S2 (85.80) or on the breakout of the 87.00 psychological resistance level. There are several targets ahead R1 (87.40), R2 (88.40), and R3 (90.10).

Support: 85.80, 86.60

Resistance: 87.40, 88.40, 90.10

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Analysis of gold for April 21 2016

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Since our previous analysis, gold has been moving upwards. As I expected, the price tested the $1,259.96 level in a high volume. The price reached my first take profit level at $1,256.00. On the 15M time frame chart, I found a successful test of supply in a low volume, which is a sign that selling gold looks risky. Watch for intraday buying opportunities. Also, I found a successful breakout of the trading range and some kind of a three drive reversal pattern. There is a lack of supply around the price of $1,256.00, which is a great buying signal for professional traders. The first major short-term take profit level is set at $1,279.00.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,253.70

R2: 1,256.50

R3: 1,261.80

Support levels:

S1: 1,243.70

S2: 1,240.60

S3: 1,235.60

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

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Technical analysis of NZD/USD for April 21 2016

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Overview:

  • The NZD/USD pair has faced strong support at 0.6951 as a resistance level turned into support. So, the strong support is found at 0.6951, and the pair is likely to try to approach it in order to test it again. The 0.6951 level represents a daily pivot point as it acts as minor support today. Furthermore, the NZD/USD pair continues moving in a bullish trend from the new support at 0.6951. Currently, the price is in a bullish channel. Therefore, we expect the NZD/USD pair to move between 0.6951 and 0.7053. Accordingly, the market is likely to show signs of a bullish trend. In other words, buy orders are recommended above 0.6951 with the first target at 0.7053. If the trend is able to break the double top at 0.7053, then the market will continue rising towards the 0.7075 and 0.7100 levels. On the other hand, if the pair succeeds to pass through the 0.6903 level, the market will indicate a bearish opportunity below the 0.6951 level. Hence, if a breakout happens at the support levels of 0.6951 - 0.6903, the stop loss should be set below the last bearish wave at 0.6903.
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Technical analysis of USD/CHF for April 21 2016

Overview:

  • Yesterday, the USD/CHF pair moved from its bottom at 0.9505 and continued rising towards the top of 0.9720. Today, on the four-hours chart, the current rise will remain within a framework of correction. However, if the pair fails to pass through the level of 0.9750, the market will indicate a bearish opportunity below strong resistance level of 0.9750 (the level of 0.9750 coincides with strong resistance). Amid the previous events, the pair is still in a downtrend. From this point, the USD/CHF pair is continuing in a bearish trend from the new resistance of 0.9730 - 0.9750. Since there is nothing new in this market, it is not bullish yet. Sell deals are recommended below the level of 0.9750 with the first target at 0.6440. If the trend breaks the support level of 0.6440, the pair is likely to move downwards continuing the development of a bearish trend to the level of 0.9570 in order to test the daily support 2. Also, it should be noted that the double bottom is seen at the price of 0.9509.

Intraday key levels:

  • Resistance 3:0.9901
  • Resistance 2:0.9840
  • Resistance 1:0.9750
  • Pivot Point:0.9695
  • Support 1:0.9640
  • Support 2:0.9570
  • Support 3:0.9509
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Technical analysis of Silver for April 21 2016

Technical outlook and chart setups:

Silver rallies through fresh highs above $17.50 levels today. The metal is very close to taking out resistance at $17.75 levels. Bulls should be poised to push through before producing a meaningful retracement lower. As depicted here, the metal can drop towards $16.50 levels as minimum retracement, before turning bullish again. Silver exceeded Gold in its Wave 3 rally, and looks to be poised to continue momentum for now. It is hence recommended to remain flat now and look to buy on dips from here. Immediate resistance is seen at $17.75 levels, while support is seen through $16.50 levels.

Trading recommendations:

Remain flat for now, look to buy on dips.

Good luck!

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Technical analysis of Gold for April 21 2016

Technical outlook and chart setups:

Gold rallies to test recent highs at $1,260.00 levels, before pulling back. The yellow metal is trading around $1,257.00 levels for now, and might be looking to push through $1,266.00 levels which is the Fibonacci 0.786 resistance level. Please note that $1,266.00 level is also Fibonacci convergence, and should provide enough resistance to the metal. Bears are expected to remain in control till prices remain below $1,283.00 levels. It is hence recommended to remain short now, with risk above $1,270.00 levels. Immediate resistance is seen at $1,262.00 levels, while support is seen through $1,243.00 levels respectively.

Trading recommendations:

Remain short, stop at $1,270.00, target is $1,190.

Good luck!

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Technical analysis of USDX for April 21 2016

The Dollar index bounced off, as expected, from the support but still remains technically in a bearish trend as it has not broken above important resistance levels. The Dollar index is going to be affected today by the ECB Press conference and what Mario Draghi says, as the main component of the index, the EURUSD, is expected to be affected.

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Black line - trend line support

After re-testing the broken trend line, the Dollar index bounced towards 94.60 but still remains below the first short-term important resistance of 94.80. A break above 94.80 will certainly push the index towards the next important resistance of 95.20. Support is at 94 and as long as we are above it, there are a lot of chances of making a bullish reversal.

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Black line - resistance

The Dollar index on the daily chart remains in a bearish trend. The price is still below the black trend line resistance and today we will find out whether it is breaking out or being rejected. A rejection here will push the index towards 93. A breakout will open way towards 97.

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Technical analysis of Gold for April 21 2016

Gold is trying to break above the upper triangle boundary and it seems that it will manage to do it today. The price is setting up a bullish formation that could bring Gold towards $1,300 very soon. Bulls do not want to see the price break below $1,240.

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Black lines -triangle

Gold is trading above the Kumo on the 4-hour chart and is about to break above the triangle pattern. This is a bullish sign. Short-term support is at $1,240 and is very important for the bullish scenario of a move towards $1,300. Resistance is at $1,260-65.

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On the daily chart, the price is supported by the daily Kumo and is preparing to make new short-term higher highs after making a higher low at $1,243. Gold is most probably going to push towards $1,300 very soon but any break below $1,240 will cancel this scenario.The material has been provided by InstaForex Company - www.instaforex.com

Elliott wave analysis of EUR/NZD for April 21 - 2016

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Wave summary:

We are looking for a confirmation that a bottom is in place at 1.6062. A break above minor resistance at 1.6266 will be a good start, but to confirm the low, we need a break above resistance at 1.6499. If that break is seen, then the bottom at 1.6062 should be safe and a rally in wave [iii] of iii towards at least 1.8420 should be expected.

Only an unexpected break below support at 1.6062 will keep wave [ii] alive, but the downside potential should be very limited.

Trading recommendation:

We are long in EUR from 1.6105 with stop placed at 1.6055. If you are not long in EUR yet, then buy a break above 1.6266 and place stop at 1.6055 expecting to move it higher soon.

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Elliott wave analysis of EUR/JPY for April 21 - 2016

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Wave summary:

Our preferred count remains that an important bottom was seen at 121.69 and a new impulsive rally to above 149.55 is developing. The rally of the 121.69 low to 124.40 was wave i and wave ii is currently unfolding. The corrective wave ii has already tested the minimum corrective target at 123.39 (the 38.2% corrective target). We could still see a little more downside pressure in wave ii, but a failure to break below support at 123.39 and a break above resistance at 124.40 instead will indicate underlying strength for the next rally higher towards 127.87 and likely even higher.

Trading recommendation:

Our stop was quickly hit indicating that going short now is a bad idea. We will instead be looking for buying opportunities and will place a buy-order at 123.25 or upon a break above 124.40 (one order done cancels the other).

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Technical analysis of USD/JPY for April 21 2016

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USD/JPY is expected to extend its upside movement. Overnight, US stocks pressed higher, lifted by bank and financial shares. The Dow Jones Industrial Average rose another 0.3% to 18096, the S&P 500 added 0.1% to 2102, and the Nasdaq Composite was up 0.2% to 4948.

Nymex crude oil surged 3.8% to a 5-month high of $42.63 a barrel, gold fell 0.5% to $1,243 an ounce, and the benchmark 10-year Treasury yield climbed to 1.850% from 1.783% in the previous session.

On the economic data front, the National Association of Realtors reported that existing home sales increased 5.1% month-on-month in March to an annual rate of 5.33 million units (vs +4.3% expected).

On the forex front, the US dollar rebounded against most other major currencies, with the Wall Street Journal Dollar Index gaining 0.4% to 86.02. EUR/USD slid 0.5% to 1.1295, USD/CHF surged 1.1% to 0.9718, GBP/USD declined 0.4% to 1.4331, and USD/JPY was up 0.6% to 109.83.

At the same time, the Canadian dollar continued to strengthen against the US dollar, with USD/CAD easing 0.1% further to 1.2653. Meanwhile, the Australian dollar and the New Zealand dollar gave back part of the gains made in the previous session, with AUD/USD declining 0.2% to 0.7793 and NZD/USD dropping 0.9% to 0.6976. The pair located a strong support around 108.75 from where it posted a powerful rebound yesterday. Currently it keeps trading on the upside while being supported by the ascending 20-period moving average, which stands above the 50-period one. And the intraday relative strength index remains above the neutrality level of 50. Although the pair may consolidate a bit at the current 6-day-high level as technical indicators suggest the bullish bias could be maintained, it is expected to challenge the immediate resistance at 110.15 (a level of key support seen on April 6).

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 110.15 and the second one, at 110.55. In the alternative scenario, short positions are recommended with the first target at 108.75 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 108.50. The pivot point is at 109.15.

Resistance levels: 110.15, 110.55, 111

Support levels: 108.75, 108.50, 108.10

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Technical analysis of USD/CHF for April 21 2016

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USD/CHF is expected to trade in a higher range as the pair is trading with a bullish bias. The pair posted a strong rebound yesterday, and is now supported by its ascending 20-period and 50-period moving averages. The relative strength index is positive above its neutrality area at 50, and is also displaying strong bullish momentum. In which case, as long as 0.9680 is not broken, an advance to 0.9645 and 0.9620 is likely 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 0.9735 and the second one, at 0.9760. In the alternative scenario, short positions are recommended with the first target at 0.9645 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 0.9620. The pivot point is at 0.9680.

Resistance levels: 0.9670, 0.9710, 0.9740

Support levels: 0.9580, 0.9560 , 0.95

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Technical analysis of NZD/USD for April 21 2016

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NZD/USD is expected to trade with a bearish bias. The pair reversed down and is now trading within a declining channel. Both the 20-period and 50-period moving averages are also turning down, calling for further consolidations. In addition, the relative strength index is still bearish, without showing any reversal signals. To sum up, as long as 0.6995 holds on the upside, look for a new pullback to 0.6935 and 0.6890 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 0.6935. A break of this target will move the pair further downwards to 0.6890. The pivot point stands at 0.6995. 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 0.7030 and the second target at 0.7065.

Resistance levels: 0.7030, 0.7065, 0.7135

Support levels: 0.6935, 0.6890, 0.6855

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Technical analysis of GBP/JPY for April 21 2016

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GBP/JPY is expected to trade with a bullish bias. The pair stays above its support at 123.35 and is consolidating around its 50-period moving average. Meanwhile, the relative strength index stays above 50. Further upside is therefore expected with the next horizontal resistance and overlap set at 158.50 at first. A break above this level would call for further advance toward 159.00 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 158.50 and the second one, at 159.00. In the alternative scenario, short positions are recommended with the first target at 155.60 if the price moves below its pivot points. A break of this target is likely to push the pair further downwards, and one may expect the second target at 154.75. The pivot point is at 156.20.

Resistance levels: 158.50, 159, 160.15

Support levels: 155.60, 154.75, 154.05

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Global macro overview for 21/04/2016

Global macro overview for 21/04/2016:

The ECB interest rate decision and monetary policy statement are the main events of the week and they are happening today at 11:45 GMT. The market participants do not expect any further rate cuts as the current level is 0.00% already. ECB head Mario Draghi has clearly stated at the last meeting that a negative interest rate is not currently taken into account. Nevertheless, investors are uncertain how the central banker will try to communicate with them, so Mr. Draghi is expected to be more careful about his choice of words seeking to reassure investors that the ECB can still impact economic growth in the Eurozone and fight off the threat of deflation. In conclusion, there are no surprises expected today and the main focus of investors will concentrate on the press conference after the rates are announced.

Let's now take a look at the current technical picture of EUR/USD on the 4H time frame ahead of the ECB rate decision. After breaking slightly above the 615 Fibo of the last swing, the market got rejected and bears pushed the price towards the level of 1.1300. Currently the market trades at the intraday trend line support around the level of 1.1290 and any breakout lower would suggest the next support at the level of 1.1232 will be tested again. Moreover, please notice that the recent sell-off from the swing high at the level of 1.1465 is the biggest downside correction so far, so the overbalance scenario is still at the table.

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Global macro overview for 21/04/2016

Global macro overview for 21/04/2016:

The Bank of England's Governor Mark Carney has testified to lawmakers in the House of Lords yesterday and he expressed deep concerns about the threats the UK economy might face if Brexit comes true. In his opinion, a vote of support for Brexit will cause "an extended period of uncertainty about the economic outlook" in the UK. It means economic growth, investments and trade balance might get hurt as Brexit will undermine asset prices and credit supply. In conclusion, Carney has described Brexit as the main domestic risk to Britain's financial stability and economic growth.

Let's now take a look at the GBP/USD technical picture on the 4H time frame. The golden trend line has been tested from the downside and the bulls were rejected from these price levels. The support at the level of 1.4337 has been broken and now the market is trading below it. Neither bulls nor bears are in control over this market as both parties are fighting for dominance. The next support is seen at the level of 1.4241.

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Technical analysis of USD/CAD for April 21 2016

General overview for 21/04/2016:

Five waves to the downside are present on the chart, so the corrective cycle to the upside should start any time soon. The alternative count suggests that a more complex wave iv correction is still possible, however, any breakout above the intraday resistance at the level of 1.2728 would invalidate this scenario. The bullish divergence between the price and the momentum oscillator supports the view.

Support/Resistance:

1.2591 - Intraday Support

1.2643 - WS2

1.2728 - Intraday Resistance

1.2808 - WS1

1.2912 - Weekly Pivot

1.2989 - Intraday Resistance

1.3080 - WR1

1.3181 - WR2

Trading recommendations:

All sell orders from yesterday hit the TP and were closed with profit. Currently traders should stay aside and wait for another setup to occur shortly.

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Technical analysis of EUR/JPY for April 21 2016

General overview for 21/04/2016:

The wave 5 top seems to be in place but the alternative count suggest it is only the wave 3 top. In that case, after the corrective cycle is completed, one more wave upward is expected before any meaningful correction will happen. Moreover, any breakout below the intraday support at the level of 123.35 will invalidate the alternative count.

Support/Resistance:

121.27 - WS1

122.63 - Weekly Pivot

123.12 - WR1

123.59 - Intraday Support

124.21 - Technical Resistance

124.43 - Intraday Resistance

124.48 - WR2

124.98 - WR3

Trading recommendations:

All sell orders from last week should now be closed with profit. Traders should now stay aside from the market and wait for the next trading setup to occur shortly.

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Technical analysis of EUR/USD for April 21 2016

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When the European market opens, some economic news will be released such as the Consumer Confidence, Minimum Bid Rate, Spanish 10-y Bond Auction. The US will release economic data too such as the Natural Gas Storage, CB Leading Index m/m, HPI m/m, Unemployment Claims, Philly Fed Manufacturing Index. So amid the reports, EUR/USD will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Breakout BUY Level: 1.1359.

Strong Resistance: 1.1352.

Original Resistance: 1.1341.

Inner Sell Area: 1.1330.

Target Inner Area: 1.1303.

Inner Buy Area: 1.1276.

Original Support: 1.1265.

Strong Support: 1.1254.

Breakout SELL Level: 1.1247.

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 21 2016

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In Asia, today Japan will not release any economic data but the US will release some economic data such as the Natural Gas Storage, CB Leading Index m/m, HPI m/m, Unemployment Claims, Philly Fed Manufacturing 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: 110.23.

Resistance. 2: 110.01.

Resistance. 1: 109.80.

Support. 1: 109.54.

Support. 2: 109.32.

Support. 3: 109.11.

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

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

Daily analysis of USDX for April 21 2016

USDX is expected to resume the bearish bias, after it tested the 200 SMA on the H1 chart and it's possible to see another decline toward the support level of 94.08. When the USDX does a breakout below that zone, then we can expect an advance toward new lows. The overall bearish bias is still strong and the MACD indicator is reaching overbought conditions.

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H1 chart's resistance levels: 94.85 / 95.01

H1 chart's support levels: 94.40 / 94.08

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 21 2016

On the H1 chart, the resistance zone of 1.4401 remains very strong and is pushing the Cable lower, as it has been trading into a bearish mode and maybe it could re-test the 200 SMA on a short-term basis. If the pair does a breakout above it, then it can rally toward the 1.4495 price zone. The MACD indicator is supporting a possible resume of the bearish bias.

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H1 chart's resistance levels: 1.4401 / 1.4495

H1 chart's support levels: 1.4318 / 1.4278

Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the GBP/USD pair breaks a bullish candlestick; the resistance level is at 1.4401, take profit is at 1.4495 and stop loss is at 1.4303.

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

Daily analysis of GOLD for April 20 2016

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Overview

The gold price traded with clear positivity yesterday settling near 1,250.00 and reinforcing the continuation of the bullish trend scenario on the intraday and short-term bases. The price is likely to head towards 1,282.92 then 1,300.00 levels that represent the next main targets for the current bullish wave. Stochastic current negativity might cause temporary sideways fluctuations before gaining enough positive momentum to push the price to the upside again. Holding above 1,227.40 levels represents an important condition for the continuation of the expected bullish trend.

The expected trading range for today is between the 1,235.00 support and the 1,280.00 resistance.

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Daily analysis of Silver for April 20 2016

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Overview

The silver trades lower after it found a strong bullish channel's resistance as shown in the image. Besides, stochastic negativity on the four-hour time frame might push the price to some temporary bearish bias before it attempts to resume the main bullish trend. A breach of the 17.25 level will provide strong positive momentum that supports expectations for the upside track and lead the price towards 18.03 as the next main station. Holding below 17.08 might push the price to test the support base formed above 16.35 before any new attempt to rise.

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