EUR/NZD analysis for May 09, 2016

analytics5730700fce0b8.png

Recently, EUR/NZD has been moving sideways at the price of 1.6680. According to the 30M time frame, I found that strength came in near the level of 1.6650. The bearish wide spread bar in a high volume but closed near the top (sign of strength). My advice is to watch for buying opportunities on the dips. Take profit levels are set at the price of 1.6720 and 1.6760.

Fibonacci Pivot Points:

Resistance levels:

R1: 1.6745

R2: 1.6800

R3: 1.6885

Support levels:

S1: 1.6570

S2: 1.6520

S3: 1.6430

Trading recommendation for today: Be careful when selling EUR/NZD and watch for buying opportunities on the dips.

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

NZD/USD intraday technical levels and trading recommendations for May 9, 2016

analytics57306d343698c.png

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.

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

However, a daily closure below the 0.6850 level enhances a quick bearish movement towards 0.6750 where a better BUY entry with a higher risk/reward ratio can be offered.

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

USD/CAD intraday technical levels and trading recommendations for May 9, 2016

analytics57306b3dc6c2d.pnganalytics57306b4a36739.png

A bullish breakout above the previous consolidation zone between 1.2400 and 1.2800 was performed on July 15 (shown on the weekly chart).

A significant bearish rejection was observed around 1.3450. Hence another consolidation range was established from 1.3450 down to 1.2800.

On December 7, a bullish breakout above 1.3450 (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 a 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.

Shortly after, the 1.3300 level stood 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 then, the USD/CAD pair has been trapped within the consolidation range between 1.3300 and 1.2970 until a bearish breakout took place on April 11.

Shortly after the quick bearish decline took place, signs of bullish recovery were expressed around 1.2460.

Conservative traders are advised to consider the current pullback towards 1.2970 (61.8% Fibonacci level) as a valid signal to sell the USD/CAD pair. S/L should be placed above 1.3050.

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

Gold analysis for May 09 , 2016

Since our previous analysis, gold has been moving downwards. The price tested the level of $1,273.57 in a high volume. According to the 1H time frame, I found a buying climax in the background (volume spike) and strong reaction from sellers, since they absorbed an upward movement. I have placed Fibonacci expansion to find potential downward stations. I got Fibonacci expansion 61.8% at the price of $1,274.00 (on the test), Fibonacci expansion 100% at the price of $1,260.50 and Fibonacci expansion 161.8% at the price of $1,240.00. According to the 1M time frame, I found downward pressure and no demand bars, which is a sign that buying Gold at this stage looks risky.

analytics573069fcf0599.png

analytics57306a120092d.png

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,288.90

R2: 1,289.70

R3: 1,290.00

Support levels:

S1: 1,286.00

S2: 1,285.00

S3: 1,284.30

Trading recommendations for today: be careful when buying gold at this stage and watch for potential selling opporutnities on the pullbacks.

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

Intraday technical levels and trading recommendations for GBP/USD for May 9, 2016

analytics573065af67803.png

Since January 2016, bullish persistence above 1.4500 was mandatory to maintain enough bullish strength in the market.

However, as the previous weekly candlesticks maintained their bearish persistence below the depicted weekly supply zone (below 1.4470) which allowed further bearish decline to occur.

The prominent demand level located at 1.3845 (historical bottom that goes back to March 2009) provided a significant bullish rejection on February 26.

As expected, an evident bullish recovery and a bullish engulfing weekly candlestick were expressed around 1.3845 (prominent weekly demand level) where a significant bullish swing was initiated on March 1.

The price zone of 1.4475-1.4670 has been standing as a significant supply zone during the past few weeks.

Last week, the depicted long-term downtrend line came to meet the GBP/USD pair around the same price zone. Hence, significant bearish rejection was expected around the upper limit of it (1.4670 level).

The next bearish destinations for the GBP/USD pair would be located at 1.4475, 1.4300, 1.4220, and finally at 1.3845.

analytics573065ba5bfb3.png

On February 2016, a lower high was achieved around the level of 1.4530. This applied extensive bearish pressure against the price level of 1.4470.

The GBP/USD pair looked oversold when the previous bearish decline extended below 1.4040 (temporary support). That is why, a significant bullish recovery and a profitable long entry were suggested around 1.3845.

On April 7, the market failed to push below the price level of 1.4050. Moreover, a bullish movement was executed again towards the price levels of 1.4750 (slightly above the 61.8% Fibonacci level).

As anticipated, significant bearish rejection was expressed around the price zone of 1.4700-1.4750 (61.8% Fibonacci level) resulting in a strong bearish shooting-star daily candlestick.

This week, daily persistence below 1.4470 will be needed to enhance further bearish decline towards 1.4380 and 1.4250. Otherwise, a bullish pullback towards 1.4570 shouldn't be excluded.

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

Intraday technical levels and trading recommendations for EUR/USD for May 9, 2016

analytics573063fbaacbd.png

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, next monthly candlesticks (September, October, and November) reflected a strong bearish rejection around 1.1400.

In February, the depicted price levels around 1.1500-1.1550 acted as a significant supply zone during the current bullish pullback.

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

In the long-term prospect, the level of 0.9450 will remain a projected bearish target if a monthly candlestick comes to close below the depicted monthly demand level of 1.0570.

analytics573064073a4fc.png

In December 2015, 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.

Bullish fixation above 1.1000 was mandatory to allow bullish movement to continue.

Similar to what happened in October 2015, the supply zone of 1.1410-1.1550 should constitute a significant resistance zone for the EUR/USD pair.

Last week, the 1.1600 level corresponded to the backside of the broken uptrend line depicted on the chart.

That's why, the depicted shooting-star daily candlestick appeared, indicating significant bearish rejection around 1.1600.

Today, daily persistence below the 1.1400 level is needed to ensure further bearish momentum towards the 1.1330, 1.1210, and 1.1150 levels.

Otherwise, the EUR/USD pair may remain trapped between 1.1410 and 1.1520 levels until breakout occurs again.

On the other hand. a bearish pullback towards 1.1000 (the depicted uptrend line & a previous consolidation range) should be considered as a valid BUY entry.

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

Global macro overview for 09/05/2016

Global macro overview for 09/05/2016:

Over the weekend, the 81-year old Saudi Arabian Oil Minister, Ali al-Naimi, has been replaced by former head of state-owned oil company Aramco (Saudi Arabian Oil Co) Khalid al-Falih. Some oil analysts had been expecting such a change though, but the fact that he is the close ally of Deputy Crown Prince Mohammed bin Salman and does not have any OPEC experience doesn't look so far like a smart move at all. As we remember, Saudi Arabia refused to limit global oil supply at the latest OPEC meeting and bin Salman will now take further control over the setting of oil supply policy, which means any further talks that might lead to an agreement in limiting global oil supply at the nearest OPEC meeting are almost impossible. The main reason why Saudi Arabia is resisting to limiting oil supply is the global war with the US shale industry: the cost of shale production is much higher, so lower prices make their main opponent uneconomical and more prone to burst.

Let's now take a look at the Crude Oil technical picture on the 4H timeframe. The market is still trading above the 21, 50 and 100 moving averages, in the congestion zone between two important levels: the swing high and technical resistance at the level of 46.78 and technical support at the level of 43.19. It looks like the bulls are still in control over this market and no signs of the exhaustion are visible just yet.

analytics57304b9259256.jpg

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

Global macro overview for 09/05/2016

Global macro overview for 09/05/2016:

The Non-Farm Payrolls figures widely disappointed market participants as the US labour market lost steam in April. According to the Labor Department, non-farm payrolls rose by 160,000 jobs last month, which was the fewest number of jobs in seven months as market participants expected a rise to the level of 205,000. Moreover, the downward revisions added fuel to the fire as in February and March the jobs market generated 19,000 jobs fewer than previously estimated. The unemployment rate was unchanged at the level of 5.0%, but the number of Americans participating in the labour force decreased to 62.8% in April from 63.0% in March. The only good news was that the average hourly earnings climbed 0.3% to $25.53. In conclusion, after December's hike, the Fed has already dropped the rhetoric of at least 4 rate hikes to a maximum of 2 rate hikes this year. Nevertheless, with the figures like this, the Fed is nowhere near hiking rates in June and meeting the inflation target of 2% this year.

Let's now take a look at the EUR/USD technical picture on the 4H timeframe. After the swing high was established at the level of 1.1615, the market is slowly sliding lower in a nice parallel channel. There is no sign of a lower low yet, so we can be sure the longer-term top is in place, but if the market closes today below the current support at the level of 1.1396, the odds for a further drop will increase. The next support is seen at the levels of 1.1311 and 1.1215.

analytics573046cd5d1fd.jpg

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

Technical analysis of EUR/JPY for May 9, 2016

General overview for 09/05/2016:

The most appropriate pattern in current wave (c) blue that can be recognized now is an expansion of the ending diagonal termination structure. This means the market will likely make one more low below the intraday support at the level of 121.47 in order to complete the wave (c). The projected target might even extend to the level of 120.33 before any meaningful reversal occurs. The fact that the market is still trading inside of the bearish zone supports this view.

Support/Resistance:

120.33 - WS2

121.20 - WS1

121.47 - Intraday Support

122.36 - Weekly Pivot

123.23 - WR1

123.53 - Intraday Resistance

124.37 - WR2

125.25 - WR3

Trading recommendations:

Day traders should consider opening sell orders from the current market levels with a tight SL (10-15 pips) and TP open for now (might extend to around 120.33).

analytics5730407496eb7.jpg

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

Technical analysis of USD/JPY for May 09, 2016

USDJPYM30.png

USD/JPY is expected to trade with a bullish bias. Last Friday, US stock indices settled higher despite disappointing April payrolls data. Commodities and industrial shares were the best performers. The Dow Jones Industrial Average rose 0.5% to 17740, the S&P 500 gained 0.3% to 2057, and the Nasdaq Composite was up 0.4% to 4736.

Nymex crude oil increased 0.8% to $44.66 a barrel, gold rose 0.8% to $1,288 an ounce, and the benchmark 10-year Treasury yield climbed to 1.779% from 1.756% in the previous session.

The US government reported that non-farm payrolls increased 160,000 in April (vs +205,000 expected, +208,000 in March), the weakest growth since September, and the jobless rate remained unchanged at 5.0% (vs 4.9% expected).

On the forex front, the US dollar was firmer against other major currencies. EUR/USD lost 2 pips, falling to 1.1402, although it had surged to 1.1476 after the US jobs report. GBP/USD dropped 0.4% to 1.4428. Meanwhile, USD/JPY edged down 0.1% to 107.10.

At the same time, the Australian dollar was impacted by the Australian central bank's lowered CPI growth forecast for 2016 (to 1%-2% on-year from 2%-3% previously forecast). The central bank also said: "The board will continue to assess the outlook and adjust policy as needed to foster sustainable growth in demand and inflation outcomes consistent with the inflation target over time." AUD/USD then plunged 1.3% last Friday.

The pair continues its rebound initiated from the low of 106.77 last Friday. Currently it is striking against the upper Bollinger band, suggesting an acceleration to the upside. Support is provided by the 50-period (30-minute chart) moving average. Meanwhile, the 20-period moving average has just crossed above the 50-period one, and the intraday relative strength index has broken above the overbought level of 70, indicating a continuation of the bullish bias. The immediate resistance at 108.25 is in sight. Above that level, the next resistance would be found at 108.70.

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 108.25 and the second one, at 108.70. In the alternative scenario, short positions are recommended with the first target at 106.50 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 106.10. The pivot point is at 107.00.

Resistance levels: 108.25, 108.70, 109.25

Support levels: 106.50, 106.10, 105.50

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

Technical analysis of USD/CHF for May 09, 2016

USDCHFM30.png

USD/CHF is expected to continue its further upside movement. The pair stands firmly above its key horizontal support at 0.9655 and is challenging its nearest resistance at 0.9765 at first. The relative strength index stays above its neutrality area at 50, and both rising 20-period and 50-period moving averages play support roles. Therefore, as long as 0.9655 is not broken, look for further upsides to 0.9765 and 0.9795 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 0.9765 and the second one, at 0.9795. In the alternative scenario, short positions are recommended with the first target at 0.9620 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 0.9570. The pivot point is at 0.9655.

Resistance levels: 0.9765, 0.9795, 0.9845

Support levels: 0.9620, 0.9570, 0.9530

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

Technical analysis of USD/CAD for May 9, 2016

General overview for 09/05/2016:

The choppy wave progression to the upside does not look like an impulsive wave, but more like an end of some sort of an ending diagonal. The main count still indicated a top for the wave b green might be in place and one more wave downside towards the technical support at the level of 1.2758 is anticipated. Moreover, in case of an extension upwards, the intraday resistance at the level of 1.2988 should put a lid on any rally, and the price is expected to reverse from this level anyway.

Support/Resistance:

1.2988 - Intraday Resistance

1.2897 - Intraday Support

1.2818 - Weekly Pivot

1.2758 - Technical Support

1.2675 - WS1

Trading recommendations:

Day traders should consider opening sell orders from the level of 1.2988 with a tight SL (10-15 pips) and TP open for now (might extend to around 1.2758).

analytics57303b0f0c3d8.jpg

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

Technical analysis of NZD/USD for May 09, 2016

1462778488_NZDUSDM30.png

NZD/USD is under pressure. The pair has been capped by the descending 50-period moving average and remains under pressure. At the same time, the relative strength index is around 50 and lacks upward momentum. Hence, as long as 0.6890 holds on the downside, look for a new pullback to 0.6805 and 0.6760 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 0.6805. A break of this target will move the pair further downwards to 0.6760. The pivot point stands at 0.6890. 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 0.6920 and the second target at 0.6945.

Resistance levels: 0.6920, 0.6945, 0.6980

Support levels: 0.6805, 0.6760, 0.6715

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

Technical analysis of GBP/JPY for May 09, 2016

GBPJPYM30.png

GBP/JPY is expected to trade with a bearish bias. The pair is posting a rebound but stays below its resistance at 156. Meanwhile, the 20-period moving average still stays below the 50-period one. The first target to the downside is set at the horizontal support and overlap at 154.35. A break below this level would open the way to further weakness toward 153.60.

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 154.35. A break of this target will move the pair further downwards to 153.60. The pivot point stands at 156.00. 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 156.70 and the second target at 157.50.

Resistance levels: 156.70, 157.50, 158.40

Support levels: 154.35, 153.60, 152.75

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

Technical analysis of USDX for May 9, 2016

The dollar index remains strong despite the worse-than-expected Non-Farm Payrolls numbers announced last Friday. The dollar got sold off right after the announcement, but sellers were driven back by buyers who pushed the index to new short-term highs.

analytics573035c468525.jpg

On the 4 hour chart, the price is breaking above the Kumo. The stochastic is overbought and signals that bulls need to be very cautious. The

dollar index made an intraday correction on Friday that pushed the index towards 93.30 after the announcement of the NFP numbers. Buyers stepped in quickly and supported the index that then made a new high.

analytics5730361334ad7.jpg

On a weekly basis, the chart is very bullish. The stochastic is oversold and diverging. Last week's candle is a bullish reversal hammer pattern. The price has re-entered the Kumo. The price has also reached the 38% long-term Fibonacci support and bounced strongly. I believe we should expect more upside to come over the coming weeks.

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

Technical analysis of Gold for May 9, 2016

Gold has pushed towards $1,300 as we expected in our latest analysis, and the price is pulling back lower towards the $1,270 support. This is a critical level for bulls as a break below $1,270 will cancel any bullish chances for a move above $1,300.

analytics573034820f7a9.jpg

Gold is at the 61.8% Fibonacci retracement of the rise from $1,270 to the recent high at $1,295. The $1,280-75 area is an important short-term support, and any bounce should come from this area. If a bounce does not come, the rejection at $1,300 will become even more important and, combined with a break below $1,270, will open the way for a push lower towards $1,200.

analytics573034e29235d.jpg

Blue lines - bullish channel

Gold is trading above the Kumo and is making higher highs and higher lows. Oscillators are diverging and are turning lower from overbought levels. Despite the bad NFP numbers announced on Friday, support on the dollar has not helped gold prices rally and make a convincing break above $1,300. Daily support is at $1,270-60. A daily close below those levels will push the price towards the lower channel boundary at $1,240 with increased chances of breaking it.

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

Technical analysis of Silver for May 09, 2016

Technical outlook and chart setups:

Silver has been trading sideways for 2 consecutive trading sessions between $17.25 and $17.45 levels respectively. The metal had reversed from $18.00 levels earlier and is trading at $17.40 levels for now. The structure indicates that bulls might be determined to push prices higher towards $18.40/50 levels, which is a major resistance (not seen here). On the flip side, a drop towards $16.80 levels would confirm that a meaningful top is in place. It is recommended to remain long for now with risk at $16.70 levels. Immediate support is seen at $16.70/80 levels, while resistance is found at $18.00 levels respectively.

Trading recommendations:

Remain long, stop at $16.70/80, target is $18.40.

Good luck!

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

Technical analysis of Gold for May 09, 2016

Technical outlook and chart setups:

Gold has dropped lower today and is trading at $1,280.00/81.00 levels for now. The metal might be supported at these levels and push higher one last time through $1,307.00/10.00 levels before reversing lower. Please note that it is quite possible that the metal may continue dropping from current levels as well and a break below the support trendline here would confirm the same. It is recommended to remain short with risk at $1,308.00 levels or prepare to go short at higher levels. Immediate support is seen at $1,270.00 levels, while resistance is seen through $1,303.00 levels respectively. Bulls would want to push prices through $1,307.00 levels till gold remains around $1,270.00 levels respectively.

Trading recommendations:

Remain short with stop at $1,310.00 or prepare to go short at higher levels.

Good luck!

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

Technical analysis of EUR/JPY for May 09, 2016

Technical outlook and chart setups:

The EUR/JPY pair has bounced back after testing 121.40/50 levels today during early hours. It seems to be a double bottom in the making. The pair is trading at 122.66 levels for now, looking to continue higher. The pair needs to push at least above 123.40 levels to confirm that a meaningful bottom is in place at 121.40/50 levels and a rally could unfold going forward. It is hence recommended to remain long for now, with risk at 121.40 levels. Immediate support is seen at 121.40 levels, while resistance is at 123.40 levels respectively. Bulls are poised to regain control till prices remain above 121.40 levels from here on.

Trading recommendations:

Remain long for now, stop at 121.40, target at least above 123.40.

Good luck!

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

Technical analysis of GBP/CHF for May 09, 2016

Technical outlook and chart setups:

The GBP/CHF pair is seen to be stalling at 1.4020/50 levels and might be looking to reverse lower. The pair is trading at 1.4010 levels at this moment, and bears may want to push prices lower towards 1.3700 levels at least, before turning bullish. The wave structure indicates that a bullish gartley might be formed at 1.3650/1.3700 levels. Please note that the drop would be corrective in nature and should not be mistaken for a resumption of the downtrend until prices break below 1.3550 levels. It is recommended to book profits on long positions taken earlier and remain flat for now. Immediate resistance is at 1.4220/30 levels, while support is seen at 1.3700 levels respectively.

Trading recommendations:

Book profit on long position taken earlier and remain flat for now.

Good luck!

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

Elliott wave analysis of EUR/NZD for May 9 - 2016

analytics573003f91cae3.png

Wave summary:

After a slightly deeper correction to 1.6479 a new rally quickly broke back above resistance at 1.6745, indicating that a low is now in place at 1.6479 and more upside should be expected in the coming days/weeks ahead. We are still hungering for upside acceleration that could take us past 1.6874 and releasing the energy for a quick move to 1.7273 and higher.

Trading recommendation:

We are long in EUR from 1.6315 with stop placed at 1.6475. If you are not long in EUR yet, then buy 1.6600 or upon a break above 1.6770 and use the same stop at 1.6475.

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

Elliott wave analysis of EUR/JPY for May 9 - 2016

analytics573002c2752fc.png

Wave summary:

The price spiked lower on Friday to a low of 121.46 but was immediately rejected. This could be what we have been waiting for to secure the bottom for a new long-term rally back to 141.06 and higher.

In the short term, we would like to see minor support at 121.87 protect the downside for a break above minor resistance at 122.55 and, more importantly, a break above resistance at 123.53 confirming the bottom for a rally back to 126.47 and higher.

Trading recommendation:

Buy a break above 122.55 and place your stop at 121.40.

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

Technical analysis of EUR/USD for May 09, 2016

1_EURUSD.jpg

When the European market opens, some economic news will be released such as the Sentix Investor Confidence and German Factory Orders m/m. The US will release economic data too such as the Labor Market Conditions Index m/m and Mortgage Delinquencies. So amid the reports, EUR/USD will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Breakout BUY Level: 1.1440.

Strong Resistance: 1.1433.

Original Resistance: 1.1422.

Inner Sell Area: 1.1411.

Target Inner Area: 1.1384.

Inner Buy Area: 1.1357.

Original Support: 1.1346.

Strong Support: 1.1335.

Breakout SELL Level: 1.1328.

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 May 09, 2016

2_USDJPY.jpg

In Asia, Japan will release the Consumer Confidence, Average Cash Earnings y/y, Monetary Policy Meeting Minutes, and the US will release some economic data such as the Labor Market Conditions Index m/m, and Mortgage Delinquencies. So there is a probability the USD/JPY will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Resistance. 3: 108.01.

Resistance. 2: 107.80.

Resistance. 1: 107.59.

Support. 1: 107.32.

Support. 2: 107.11.

Support. 3: 106.90.

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 May 9, 2016

EUR/USD: This pair moved upwards on Monday and Tuesday, tested the resistance line at 1.1600, and then started a bearish movement. From the resistance line at 1.1600, the price dipped by 200 pips, to close at 1.1403 on Friday (May 6, 2016). The bears would target the support lines at 1.1350 and 1.1300 this week, because some weakness is expected in the EUR.

1.png

USD/CHF: The USD/CHF went down on Monday and Tuesday, dipping into the support level at 0.9450. From that support level, further downward movement was rejected as the price started a smooth rally, which took it above the support level at 0.9700. This has resulted in a bullish signal: the price is expected to rally further this week. The outlook on the USD is now bright.

2.png

GBP/USD: After testing the distribution territory at 1.4750, the GBP/USD dropped by 320 pips, closing below the distribution territory at 1.4450. This kind of southward reversal has already resulted in a bearish outlook on the market. The GBP should be seen strengthening versus some currencies, though it might be facing some difficulties regarding a rally against the USD, because the USD would be strong this week.

3.png

USD/JPY: The USD/JPY only moved sideways last week, in the context of a downtrend. The bearish bias on the market is still valid, and further downward movement is possible. The only exception is that a possible rally in the USD might make it somewhat challenging for the bears to push the price further downwards this week.

4.png

EUR/JPY: This currency trading instrument also consolidated throughout last week, with very short-term upward and downward swings in the market. The bears are still willing to push the price lower since the outlook on JPY pairs is bearish right now. It is possible that the price would test the demand zones at 121.50, 121.00, and 120.50 this week.

5.png

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

Technical analysis of GBP/USD for May 9, 2016

1462745586_GBPUSDH1.png

Overview:

  • The GBP/USD pair is trading around the area of 1.4414. Today, the level of 1.4414 represents a daily pivot point on the H1 time frame. The pair has already formed minor resistance at 1.1498, and strong resistance is seen at the level of 1.4537 because it represents weekly resistance 1. So, major resistance is seen at 1.4537, while immediate support is found at 1.4400. If the pair closes below the level of 1.4400, then the GBP/USD pair may resume it movement to 1.4306 to test weekly support 1. From this point, we expect the GBP/USD pair to move between the levels of 1.4456 and 1.4306. Equally important, the RSI is still calling for a strong bearish market as well as the current price is also below the moving average 100. As a result, sell below the price of 1.4456 with targets at 1.4360 and 1.4306 in order to form a double bottom. On the other hand, stop loss should always be taken into account, accordingly, it will be beneficial to set the stop loss above the last bullish wave at the level of 1.4550.

Comment:

  • Volatility of last week: 623.84
  • As a rule, the market is highly volatile if the last day had a huge volatility.
  • Also it should be noted that the price will move between 1.4456-1.4500 and1.4300 in coming two days.
The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of EUR/USD for May 9, 2016

1462745489_EURUSDH1.png

Overview:

  • The EUR/USD pair has broken support at the level of 1.1468 which acts as a resistance this week. According to the previous events, the EUR/USD pair is still moving between the levels of 1.1468 and 1.1320. Therefore, we expect a range of 148 pips in coming two days. The trend is still below the 100 EMA, for that the bearish outlook remains the same as long as the 100 EMA is headed to the downside. For this reason, the price spot of 1.1468 remains a significant resistance zone. Consequently, there is a possibility that the EUR/USD pair will move downside. The structure of a fall does not look corrective. In order to take a bearish opportunity below 1.1468, sell below 1.1468 with the first target at 1.1355. Besides, the weekly support 1 is seen at the level of 1.1320. However, traders should watch for any sign of a bullish rejection that occurs around 1.1473. The level of 1.1473 coincides with 38.2% of Fibonacci, which is expected to act as a major resistance today. Since the trend is below the 38.2% Fibonacci level, the market is still in a downtrend. Overall, we still prefer the bearish scenario.

Intraday technical levels:

  • R3: 1.1780
  • R2: 1.1698
  • R1: 1.1550
  • PP: 1.1468
  • S1: 1.1320
  • S2: 1.1238
  • S3: 1.1090
The material has been provided by InstaForex Company - www.instaforex.com

Daily analysis of USDX for May 09, 2016

USDX did a rebound above the 200 SMA on the H1 chart, and probably we could be riding the bullish bias on a short-term basis, during this week at least. A breakout above the 94.06 level will open the doors to test new monthly highs around the 94.56 level, where the sellers could probably be waiting to resume the overall bearish structure.

USDXH1.png

H1 chart's resistance levels: 94.06 / 94.56

H1 chart's support levels: 93.80 / 93.52

Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the USD Index breaks with a bullish candlestick; the resistance level is at 93.52, take profit is at 93.26, and stop loss is at 93.79.

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

Daily analysis of GBP/USD for May 09, 2016

GBP/USD still trades into a weak structure favored by the bears as it could decline toward the support zone of 1.4315. The H1 chart is showing a resistance placed by the 200 SMA in a dynamic tone, and possibly we can expect more downside during the week, but a breakout above the 1.4549 level will invalidate that scenario.

GBPUSDH1.png

H1 chart's resistance levels: 1.4430 / 1.4549

H1 chart's support levels: 1.4316 / 1.4229

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 1.4316, take profit is at 1.4229 and stop loss is at 1.4402.

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