NZD/USD intraday technical levels and trading recommendations for May 10, 2016

analytics5731ef4790d53.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) was mandatory to maintain enough bullish momentum in the market.

However, a daily closure below the 0.6850 level (Friday) enhanced a quick bearish movement towards 0.6750 where a valid BUY entry can be offered. S/L can be set as a daily closure below 0.6750.

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

USD/CAD intraday technical levels and trading recommendations for May 10, 2016

analytics5731ea6802a94.pnganalytics5731ea70bfb7a.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

Intraday technical levels and trading recommendations for GBP/USD for May 10, 2016

analytics5731e6fd4d00b.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 and a bearish weekly candlestick were executed 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 1.3845.

analytics5731e707ad5cb.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 1.4600 should not be excluded.

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

Intraday technical levels and trading recommendations for EUR/USD for May 10, 2016

analytics5731e673c8917.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.

analytics5731e67dba24f.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.

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

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

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

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

Technical analysis of EUR/USD for May 10, 2016

EUR/USD found the resistance near 1.1480 area and had a clean bounce off 261.8% Fibs applied to the first corrective wave after the 1.1060 resistance breakout. The clean rejection of this resistance level could result in a further decline to test one the support levels.

The nearest support is at S1 (1.1320), although the price has formed far more important support levels lower, at S2 (1.1220/1.1260) and S3 (1.1060) areas.

Consider selling EUR/USD on small pullbacks up today to target either S2 or S3 support. The stop loss should be just above the R1 (1.1480)

Support: 1.1320, 1.1220, 1.1060

Resistance: 1.1480

EURUSD_INSTA.png

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

Technical analysis of EUR/CAD for May 10, 2016

After the descending channel breakout, EUR/CAD reached the 100% Fibs applied to the channel breakout point. This was the final upside target and daily close was below R1 (1.4785) that suggests that resistance was rejected.

At the same time, the price formed a bearish divergence on the RSI oscillator adding additional confirmation to the potential corrective wave down.

Consider selling EUR/CAD on small pullbacks near R1 to target one the support levels, ether S1 (1.4555), S2 (1.4480) or S3 (1.4410). Stop loss should be well above the 1.4800 psychological resistance level.

Support: 1.4555, 1.4480, 1.4410

Resistance: 1.4785

EURCAD_INSTA.png

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

EUR/NZD analysis for May 10, 2016

analytics5731c809e3316.png

analytics5731c8971b885.png

Recently, EUR/NZD has been moving upwards. As I expected, the price tested the level of 1.6900. According to the 30M time frame, I found a trading range between the price of 1.6835 (support) and the price of 1.6900 (resistance). Watch for a successful breakout of the trading range to confirm further direction. The trend is upward, but if the price cannot break the level of 1.6900, we may see a downward movement. An upward target is set at the price of 1.7050 and a downward target is set at the price of 1.6650. According to the 1M time frame, I found that strength came in and later on I found successful testing of supply in a low volume. I would like to see a breakout of 1.6900 to confirm further upward side.

Fibonacci Pivot Points:

Resistance levels:

R1: 1.6845

R2: 1.6900

R3: 1.6975

Support levels:

S1: 1.6685

S2: 1.6635

S3: 1.6555

Trading recommendation for today: Watch for a breakout of the trading range to confirm further direction.

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

Gold analysis for May 10 , 2016

analytics5731c59955131.png

analytics5731c5a5e05cf.png

Since our previous analysis, gold has been moving downwards. As I expected, the price tested the level of $1,259.26 in a high volume. According to the 4H time frame, I found that strength came in near the level of $1,260.00. My take profit level, Fibonacci expansion 100% at the price of $1,260.50, has been reached. If the price breaks the level of $1,260.00 in a high volume, we may see potential testing of Fibonacci expansion 161.8% at the price of $1,240.00. According to the 1M time frame, I found a volume spike (selling climax) at the price of $1,263.00. A wide spread of the bar is in an ultra-high volume. Professional money bought into public selling. Be careful when selling and watch for buying opportunities on dips. Take profit level is set at the price of $1,267.00.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,280.20

R2: 1,285.90

R3: 1,295.00

Support levels:

S1: 1,261.00

S2: 1,256.00

S3: 1,246.30

Trading recommendations for today: Be careful when selling gold at this stage and watch for potential buying opportunities on dips.

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

Technical analysis of NZD/USD for May 10, 2016

NZDUSDH4.png

Overview:

  • The NZD/USD pair continues to move downwards from the level of 0.6816. Yesterday, the pair dropped from the level of 0.6780 (this level of 0.6780 coincides with the double top) to the bottom around 0.6740. Today, the first resistance level is seen at 0.6780 followed by 0.6816, while daily support 1 is found at 0.6740. Besides, the level of 0.6740 represents a daily pivot point for that it is acting as minor support today. Amid the previous events, the pair is still in a downtrend, because the NZD/USD pair is trading in a bearish trend from the new resistance line of 0.6816 towards the first support level at 0.6740 in order to test it. If the pair succeeds to pass through the level of 0.6740, the market will indicate a bearish opportunity below the level of 0.6740. In other words, sell orders are recommended above the spot of 0.6740 with the first target at the level of 0.6687; and continue towards 0.6632. However, it would also be logical to consider where to place stop loss; this should be set above the first resistance of 0.6815.
The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of USD/CHF for May 10, 2016

USDCHFH1.png

Overview:

  • The USD/CHF pair is showing signs of strength following a breakout of the highest level of 0.9700. On the H1 chart, the level of 0.9660 coincides with 61.8% of Fibonacci, which is expected to act as major support today. Since the trend is above the 50% Fibonacci level, the market is still in an uptrend. But, minor support is seen at the level of 0.9700. Furthermore, the trend is still showing strength above the moving average (100). Hence, the market is indicating a bullish opportunity above the above-mentioned support levels, for that a bullish outlook remains the same as long as the 100 EMA is headed to the upside. Therefore, strong support will be found at the level of 0.9660 providing a clear signal to buy with a target seen at 0.9753. If the trend breaks the minor resistance at 0.9753, the pair will move upwards continuing a bullish trend development to the level 0.9795 in order to test the double top. Overall, we are still looking for a bullish market today. However, stop loss should be placed below the support of 0.9660
The material has been provided by InstaForex Company - www.instaforex.com

Daily analysis of major pairs for May 10, 2016

EUR/USD: The perpetual bearish movement here – though slow and steady – has resulted in a "sell" signal in the market. The price is under the resistance line at 1.1400 and it would go further south from there, targeting the support lines at 1.1300 and 1.1250 within today or tomorrow.

1.png

USD/CHF: There is a clean bullish bias on the USD/CHF pair: the price is above the support level at 0.9700, going further towards the resistance levels at 0.9800 and 0.9850. There might be occasional dips along the way, but bulls are supposed to be winners this week. The outlook on the USD is now bright.

2.png

GBP/USD: The GBP/USD pair continued its consolidation to the downside on Monday, leading to a bearish signal in the market. There is now a Bearish Confirmation Pattern in the market and it is possible that the price would continue going south, owing to expected strength in the USD. However, there are exceptions to the rules: the GBP would continue strengthening against other currencies.

3.png

USD/JPY: On this currency trading instrument, there was a serious rally yesterday, which took the price upwards from demand level at 106.50, to the supply level at 108.50. That was a movement of 200 pips, and the EMA 11 is almost crossing the EMA 56 to the upside on the 4-hour chart (as the RSI period 14 is clearly above the level 50). The bias on the market has turned bullish.

4.png

EUR/JPY: This cross also went upwards on May 9, 2016; just like the USD/JPY pair has done. The price is now above the EMA 56 (effectively above the demand zone at 123.00). Further movement of about 150 pips would result in a "buy" signal in the market.

5.png

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

Global macro overview for 10/05/2016

Global macro overview for 10/05/2016:

The Halifax House Price Index data, which monitors the prices of the British houses were released yesterday and they disappointed investors. After the introduction of a new tax on the purchase of rental properties, the prices declined -0.8% m/m (9.2% 3m/y), whereas they were expected to drop to 0.1% m/m (9.6% 3m/y) in March from 2.2% m/m (10.1% 3m/y) in February. The new tax rules are as follows: finance minister George Osborne announced in November 2015 that landlords acquiring buy-to-let properties, as well as people buying second homes, would pay a new 3% surcharge from April 1st 2016, in an attempt to support first-time buyers, who have struggled to cope with the precipitous pace of house price growth. This of course resulted in a record numbers of houses bought in March 2015 in order to avoid paying the new tax. In conclusion, the price of the UK properties might start to fall lower and even speed up if Britons vote to leave the European Union in a referendum on June 23.

Let's now take a look at the GBP/USD technical picture in 4h time frame. Bears have managed to retrace to 50%Fibo from the swing high at the level of 1.4770 and they stopped at this level for now. Nevertheless, the 61%Fibo and next important technical support are now at the very same level of 1.4300 and it seems this might be the next target for bears if the drop gets extended. On the other hand, bulls will fight tough at the technical resistance at the level of 1.3415 and 1.4545 if they want to regain control.

analytics573191f167aab.jpg

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

Global macro overview for 10/05/2016

Global macro overview for 10/05/2016:

Very good data from Germany regarding factory orders were released yesterday. Market participants expected a marginal gain from last month -0.8% to 0.7%, but it turned out the figures beat the expectations as they rose to the level of 1.9%. According to the Federal Statistical Office, the biggest gains in factory orders were made by orders outside the euro zone (6.2%), while EU countries demand has edged 1.1%.The domestic orders slipped by 1.2%, but for the whole first quarter, industrial orders climbed 0.5%, with bookings from abroad increasing by 2.0%. In conclusion,this good data might suggest that after a solid start to the year, Europe's number one economy may extend well into the second quarter.

Let's now take a look at the German Dax30 futures technical picture in the daily time frame. We can see the consecutive series of lower lows and lower highs which might be the first indication that bears are to be in control over this market. Moreover, the price is trading below 200, but above 100 and 50 periods moving average, which paints a confusing picture here. Nevertheless, the key level to the upside seems to be the technical resistance at the level of 10485, just below the long-term golden trend line. On the other hand, bears will need to violate the technical support at the level of 9481 and 9326 before the golden trend line is broken if they want to confirm their control over this market.

analytics57318da8db2f6.jpg

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

Technical analysis of Silver for May 10, 2016

Technical outlook and chart setups:

Silver had dropped through $16.88 levels yesterday, before pulling back. The metal is seen to be trading at $17.10 levels at this moment, looking to rally further towards $18.00 and $18.40/50 levels. Please note that $16.80 is fibonacci 0.382 support level of the rally between $14.70 and $18.00 levels respectively, and the metal can drop towards $16.80 levels before rally further. It is hence recommended to initiate 50% long positions now and remain at $16.80 levels, if prices reach there, with risk at $16.50 levels respectively. Immediate support is seen at $16.80 levels, while resistance is at $17.60 levels respectively.

Trading recommendations:

Remain long now, add further at $16.80 levels, stop at $16.50, a target is open.

Good luck!

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

Technical analysis of USD/JPY for May 10, 2016

USDJPYM30.png

USD/JPY is expected to post further gains. Overnight U.S. stock indexes ended mixed, with the Dow Jones Industrial Average dropping 0.2% to 17705, the S&P 500 adding 0.1% to 2058, and the Nasdaq Composite rising 0.3% to 4750. Energy and materials shares were pressured by weakening commodity prices, while health-care and biotech shares performed the best.

Nymex crude oil posted a volatile session by surging 2.9% to $45.94 a barrel before settling 2.7% lower at $43.44. Gold fell 1.9% to $1263 an ounce, and silver plunged 2.6% to $17.00 an ounce. Meanwhile the benchmark 10-year Treasury yield eased to 1.759% from 1.779% in the previous session.

On the forex front, the U.S. dollar kept strengthening against other major currencies. While Japanese Finance Minister Taro Aso said in the parliament that he is prepared to undertake intervention in view of the Japanese yen's recent sharp appreciation, USD/JPY surged 1.1% to 108.31.

Declining commodity prices were also translated into the weakness of commodity-linked currencies. USD/CAD gained another 0.4% to 1.2961 (day-high at 1.3014), AUD/USD slid 0.7% to 0.7314, and NZD/USD plunged 1.0% to 0.6766 crossing below the 200-day moving average.

The pair is striking against the first upside target at 108.70. It has just broken above the upper Bollinger band, calling for an acceleration to the upside. Technical indicators also suggest a continuation of the intraday bullish bias, with the 20-period moving average stands well above the 50-period one, and the intraday relative strength index being well directed above the neutrality level of 50. Upon recovering the level of 108.70, the pair should proceed further toward 109.25 (last seen on the pair's plunge on April 28).

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 109.25 and the second one, at 109.90. In the alternative scenario, short positions are recommended with the first target at 107.40 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 107. The pivot point is at 107.95.

Resistance levels: 109.25, 109.90, 110.45

Support levels: 107.40, 107, 106.55

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

Technical analysis of USD/CHF for May 10, 2016

USDCHFM30.png

USD/CHF is expected to move further upside. The pair remains on the upside and is expected to post a further rebound. Meanwhile, the 20-period moving average is about to cross above the 50-period one, calling for a further upside. In addition, the relative strength index stays above its neutrality area at 50 and lacks downward momentum. Further upside is therefore expected with the next horizontal resistance and overlap set at 0.9735 at first. A break above this level would call for a further advance toward 0.9765.

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 0.9765. 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: 0.9735, 0.9765, 0.9795

Support levels: 0.9620, 0.9570, 0.9530

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

Technical analysis of NZD/USD for May 10, 2016

NZDUSDM30.png

NZD/USD is under pressure and moving downward target at 0.6705. The pair has been capped by the descending 50-period moving average and is accelerating on the downside. Meanwhile, the relative strength index is badly directed, calling for a further decline. Hence, as long as 0.6810 holds as the key resistance, look for further decline to 0.6705 and 0.6665 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 0.6705. A break of this target will move the pair further downwards to 0.6650. The pivot point stands at 0.6810. 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 0.6860 and the second target at 0.6890.

Resistance levels: 0.6860, 0.6890, 0.6920

Support levels: 0.6705, 0.6650, 0.66

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

Technical analysis of Gold for May 10, 2016

Technical outlook and chart setups:

Gold had hit $1,259.00 levels yesterday before pulling back. The metal seems to be trading at $1,266.00/67.00 levels at this moment and maybe looking to rally towards new highs or at least $1,280.00/85.00 levels, in case of a retracement. Please note that the metal may still be considered in a corrective mode, and find support around $1,256.00 levels which is fibonacci 0.618 support of the rally between $1,227.00 and $1,303.00 levels respectively. It is recommended to book profits on short positions taken earlier and remain flat for now waiting to see a reaction at $1,256.00 levels. Immediate support is seen at $1,256.00 levels, while resistance is at $1,295.00 levels respectively.

Trading recommendations:

Remain flat for now. Watching for a reaction at $1,256.00 levels.

Good luck!

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

Technical analysis of GBP/JPY for May 10, 2016

GBPJPYM30.png

GBP/JPY is expected to trade in a higher range as the bias remains bullish. The pair stays above the horizontal support at 155.35 and is continuing its rebound. Meanwhile, the relative strength index still stays above 50. As long as 155.35 is not broken down, further upside is expected with the next horizontal resistance and overlap set at 157.40 at first. A break above this level would call for further advance toward 158.45 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 157.40 and the second one, at 158.40. In the alternative scenario, short positions are recommended with the first target at 154.35 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 153.60. The pivot point is at 155.35.

Resistance levels:157.40, 158.45, 159.30

Support levels: 154.35, 153.60, 152.75

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

Technical analysis of EUR/JPY for May 10, 2016

General overview for 10/05/2016:

The wave (b) of the internal corrective cycle is getting a little more complex than previously though. Currently it looks like an incomplete irregular corrective pattern with three possible targets for the wave c of wave (c): minimal, typical and maximal. Nevertheless, when the corrective cycle is complete, there is still one more wave to the downside to be made in order to complete the corrective structure of the higher degree.

Support/Resistance:

120.33 - WS2

121.20 - WS1

122.36 - Weekly Pivot

123.23 - WR1

123.53 - Intraday Support

124.37 - WR2

124.66 - Intraday Resistance

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). Please use a tight SL because there are three different targets for the wave (b) to complete and at this stage of progression it is impossible to tell on which one the wave ends.

analytics5731855fa33d6.jpg

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

Technical analysis of EUR/JPY for May 10, 2016

Technical outlook and chart setups:

The EUR/JPY pair rallies through 124.00 levels today as expected and discussed yesterday. The pair might have formed a meaningful bottom at 121.40 levels and is now looking to target at least 124.50 levels if not further. Please also note that 124.50 is fibonacci 0.618 resistance levels of the drop between 126.40 and 121.40 respectively. A bearish reaction there should bring bears back into control again and push the pair lower. On the flip side, a rally through 126.40 levels would confirm that a double bottom is in place at 121.40. It is recommended to remain long for now, with risk at break even levels. Immediate support is at 123.20 levels, while resistance is seen at 124.50 respectively.

Trading recommendations:

Remain long for now, move stop from 121.40 to break even levels, a target is open.

Good luck!

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

Technical analysis of USDX for May 10, 2016

I believe the Dollar index will make at least a short-term pullback today. Price has moved to new short-term highs confirming reversal and as several indicators show overbought signs, bulls should be very cautious of a pullback today.

analytics5731825ab9a1b.jpg

The Dollar index has broken out of the 4-hour Kumo in a clear bullish reversal pattern. Stochastic is overbought and diverging. A pullback at least towards the Ichimoku cloud is expected. So a pullback towards 93.50 should follow in the coming few days.

analytics573182d593af3.jpg

The weekly chart shows the bullish reversal candle of last week and this week's candle is inside the Kumo. Weekly resistance is at 94.50. The upper cloud boundary is at 96.45 and this is my medium-term target if we break above 94.50. Last week's low is very important support and should be used as a stop for Dollar bulls.The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of USD/CAD for May 10, 2016

General overview for 10/05/2016:

The top for the old wave b green had been violated again and this is why the count has been modified to incorporate the latest developments. Currently it looks more like an ending diagonal wave five and this is why the top for this wave progression is at the level of 1.3015 for now. Nevertheless, I still expect a corrective cycle to the downside with projected target at the level of 1.27.58.

Support/Resistance:

1.3015 - 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 current price levels with SL above the level of 1.3015 and TP open for now (might extend to around 1.2758).

analytics573181c807c2f.jpg

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

Technical analysis of GBP/CHF for May 10, 2016

Technical outlook and chart setups:

The GBP/CHF pair is seen to be stalling at 1.4000 levels at this moment. As depicted in the wave structure on the daily chart here, please note that the pair had reversed lower from fibonacci 0.382 resistance at 1.4200/10 levels earlier. Hence it is quite possible that the pair could continue drifting lower from current levels or from 1.4100 levels going forward. It is hence recommended to initiate short positions now, with risk at 1.4250 levels. Immediate resistance is seen at 1.4210/20 levels, while support is seen at 1.3800 levels (intermediary). Bears could possibly gain control if prices remain below 1.4200/20 levels from here on.

Trading recommendations:

Remain short now, stop at 1.4250/60, a target is open.

Good luck!

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

Technical analysis of Gold for May 10, 2016

Gold price fell sharply yesterday below $1,270 and reached the lower short-term support boundary at $1,260. A short-term bounce towards $1,270 is justified now or even towards $1,280. So taking profits from short positions is justified in order to re-sell higher.

analytics57317feec5e22.jpg

I believe the short-term downward move is complete and a bounce should bring Gold price towards at least the 38% Fibonacci retracement. Gold price could bounce even towards $1,280 and under the Ichimoku cloud. Short-term trend is bearish as long as price is below $1,295. Breaking above it will open the way for $1,400.

analytics5731803cae599.jpg

Blue lines - bullish channel

Gold remains above the Daily Kumo and inside the bullish channel. Support is important here at $1,260. Gold bulls will need to hold above this level and try and break above $1,285 which will increase the chances of a new higher high near $1,325. However the current pull back suggests that if we see a new high, it can push prices even towards $1,400.

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

Elliott wave analysis of EUR/NZD for May 10, 2016

analytics5731595135ef6.png

Wave summary:

Our patience is finally paying off. We have finally seen the expected break above 1.6874 calling for more upside pressure towards 1.7273 and above.

We have been calling for upside acceleration for a while now and this should now be more evident with the break above 1.6874 adding confidence in the long-term bullish view.

Short-term support is seen at 1.6769 and again near 1.6725.

Trading recommendation:

We are long EUR from 1.6315 and will move our stop higher to 1.6600 securing a nice profit. If you are not long EUR yet, then buy near 1.6769 and use the same stop at 1.6600.

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

Elliott wave analysis of EUR/JPY for May 10, 2016

analytics573157684e21a.png

Wave summary:

With the break above resistance at 123.53 we have seen another strong indication that a firm bottom is in place with the 121.46 low. In the short term, we will now be looking for support near 123.21 for the next rally higher towards 124.66 and the April high at 126.47. A break above the later will finally confirm that the long-term correction from 149.55 has come to an end and a new impulsive rally that ultimately will break back above the 149.55 high will be seen.

Trading recommendation:

We are long EUR from 122.55 and will place our stop at break-even. If you are not long EUR yet, then buy near 123.21 and use the same stop at 122.55.

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

Technical analysis of EUR/USD for May 10, 2016

1_EURUSD.jpg

When the European market opens, some economic news will be released such as Italian Industrial Production m/m, French Industrial Production m/m, French Gov Budget Balance, German Trade Balance, and German Industrial Production m/m. The US will publish the economic data too such as Wholesale Inventories m/m, JOLTS Job Openings, and NFIB Small Business Index. So amid the reports, EUR/USD will move with low to medium volatility during this session.

TODAY'S TECHNICAL LEVEL:

Breakout BUY Level: 1.1439.

Strong Resistance:1.1432.

Original Resistance: 1.1421.

Inner Sell Area: 1.1410.

Target Inner Area: 1.1383.

Inner Buy Area: 1.1356.

Original Support: 1.1345.

Strong Support: 1.1334.

Breakout SELL Level: 1.1327.

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 10, 2016

2_USDJPY.jpg

In Asia, Japan will release the 10-y Bond Auction. The US will release some economic data such as Wholesale Inventories m/m, JOLTS Job Openings, and NFIB Small Business Index. So there is a probability the USD/JPY pair will move with low to medium volatility during this session.

TODAY'S TECHNICAL LEVEL:

Resistance. 3: 109.08.

Resistance. 2: 108.87.

Resistance. 1: 108.66.

Support. 1: 108.39.

Support. 2: 108.18.

Support. 3: 107.97.

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 May 10, 2016

The greenback is still trading with a bullish bias held since the May 3rd session. Now it's breaking the resistance level of 94.06 to the upside in order to extend gains toward the 94.56 level. If the index consolidates successfully above the 200 SMA on H1 chart with another higher high pattern, then it can rally toward the 94.84 level in coming days.

USDXH1.png

H1 chart's resistance levels: 94.56 / 94.84

H1 chart's support levels: 94.06 / 93.80

Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the USD Index breaks with a bullish candlestick; the resistance level is at 94.56, take profit is at 94.84, and stop loss is at 94.26.

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

Daily analysis of GBP/USD for May 10, 2016

On H1 chart, GBP/USD is doing a bearish consolidation below the resistance level of 1.4430, waiting for further declines towards the 1.4316 level. We're seeing that the 200 SMA in this time frame is still above the current price zone as it continues to strengthen the bearish bias in a short-term view. Yesterday's lows should be broken in order to accelerate the decline.

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

Daily analysis of gold for May 9, 2016

GOLDH4.png

Overview

Gold price has been showing bearish bias since morning to test the bullish trend line, that appears on the chart. The line is met by the EMA50 to add more strength to it. Importantly, stochastic's got rid of its negativity gradually in attempt to support the chances of resuming the bullish trend in the upcoming period. Therefore, our bullish overview will remain valid and active on the intraday and short term basis unless the price breaks the 1268.70 level and holds below it. Our first positive targets lies at the 1300.00 barrier the break of which will open the way towards 1344.85.

The expected trading range for today is between 1268.70 support and 1310.00 resistance.

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

Daily analysis of silver for May 09, 2016

SILVERH4.png

Overview

The silver price has tested the bullish channel's resistance again without managing to breach it, so silver continues fluctuating around the EMA50. The price may show more sideways fluctuations until stochastic manages to get rid of its negative momentum and gather enough positive momentum to let the price to resume the positive attempts. In general, we still suggest the bullish trend in the upcoming period unless the price breaks the 16.99 level and holds below it. Let us remind that our main target lies at 18.00 and the next one is at 18.60.

The expected trading range for today is between 17.00 support and 18.00 resistance.

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