Daily analysis of USD/CAD for May 12, 2016

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Overview

The USD/JPY pair shows some slight bearish bias to fluctuate near 108.50, where the price is affected by stochastic negativity seen in the daily time frame. The bullish scenario remains valid and active on the intraday and short-term basis by holding above 106.63 level, waiting for visiting 110.35 level mainly. Note that breaching the expected level will extend the bullish wave to test the most important resistance in the medium term at 113.97. Besides, breaking 106.63 represents a negative factor that will push the price to extend the bearish correctional wave and visit 100.69 level as the next main target.

The expected trading range for today is between 107.80 support and 110.00 resistance.

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Daily analysis of GBP/JPY for May 12, 2016

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Overview

The GBPJ/PY price closed yesterday providing new positive close above the moving average 55. Thus, the pair could move away from the extension of the support to 154.80, which confirm the domination of the bullish bias in the upcoming period. This makes us wait for forming new bullish attempt to surpass the 158.00 level, and to target the 159.25 level as the first main station for the bullish bias. Stochastic end of the negative attempts and it attempt to settle above the 50 level will increase the positive pressure on the price providing the positive momentum to confirm the attempt to record the suggested targets.

The expected trading range for today is between 154.40 and 159.25

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Daily analysis of Gold for May 12, 2016

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Overview

Gold price found a good resistance for the minor bearish channel that its lines appears in the above chart. It begins to provide bearish bouncing signals now, supported by stochastic negativity that appears in the four-hour time frame. Therefore, the bearish bias will be preferred in the upcoming sessions, and the target is testing 1257.00 level initially, which extends to test 23.6% Fibonacci correction level for the rise from 1047.61 to 1303.58, which is located at 1243.17.

The expected trading range for today is between 1250.00 support and 1290.00 resistance.

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Daily analysis of Silver for May 12, 2016

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Overview

Silver is trading with a downward bias now heading for the critical support level at 16.90, as we mentioned this morning. This level represents the neckline of the head-and-shoulders pattern that appears in the image. Therefore, breaking it will confirm the extension of the bearish wave on the short- term basis to reach 15.65 levels. So, our bearish trend expectations will remain valid for today provided that the metal holds below 17.70 and the most important 18.00. Breaching these levels represents the key of regaining the bullish trend, so its next target located at 18.60.

The expected trading range for today is between 16.70 support and 17.70 resistance.

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Daily analysis of major pairs for May 12, 2016

EUR/USD: This market has consolidated so far this week. A breakout is expected soon, most probably to the downside. The Williams' % Range period 20 is around the oversold area while the EMA 11 is below the EMA 56. A further southward movement is a probability.

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USD/CHF: This currency trading instrument is still experiencing a bearish correction. However, the bearish correction has not jeopardized the ongoing bullish bias, though the Williams' % Range period 20 is almost in the oversold territory. This could mean a good opportunity to seek potential long trades.

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GBP/USD: This currency trading instrument has consolidated so far this week – in the context of a downtrend. The EMA 11 is below the EMA 56 and the RSI period 14 is below the level 50. When a breakout does occur in the market, it would probably take the price below the accumulation territories at 1.4350 and 1.4300. This means that the breakout might favor bears.

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USD/JPY: There is an unambiguous "buy" signal on the USD/JPY 4-hour chart, with a clean Bullish Confirmation Pattern in the market. Bulls have won so far this week, and they are likely to keep on pushing the price higher, targeting the supply levels at 110.00 and 110.50.

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EUR/JPY: There is a clean "buy" signal on the EUR/JPY 4-hour chart, with a clean Bullish Confirmation Pattern in the market. The EMA 11 is above the EMA 56, and the RSI period 14 is above the level 50. Bulls have won so far this week, and it is expected that they would keep on pushing the price higher, targeting the supply levels at 125.00 and 125.50.

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EUR/NZD analysis for May 12, 2016

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Recently, EUR/NZD has been moving sideways at the price of 1.6700. According to the 30M time frame, I found a trading range between the prices of 1.6666 (support) and 1.6800 (resistance). Watch for a breakout of the trading range to confirm further direction. The upside target is set at the level of 1.6920. In case the price breaks support, the downside target is set at the mark of 1.6540. According to the daily time frame, I found a bearish bar with close in the middle (sign of strength).

Fibonacci Pivot Points:

Resistance levels:

R1: 1.6800

R2: 1.6845

R3: 1.6900

Support levels:

S1: 1.6675

S2: 1.6635

S3: 1.6570

Trading recommendation for today: watch for breakout of trading range to confirm further direction.

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USD/CAD intraday technical levels and trading recommendations for May 12, 2016

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

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

On December 7, a bullish breakout above 1.3450 (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 below 1.2970, signs of bullish recovery were expressed around 1.2460.

Conservative traders were advised to consider the recent pullback towards 1.2970 (61.8% Fibonacci level) as a valid signal to sell the USD/CAD pair.

This position is already running in profits. Target levels should be located at 1.2700 and 1.2550 while S/L should be placed above 1.3050.

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

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On January 28, the depicted support at 0.6400 acted as a prominent key level offering a valid buy entry.

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, obvious bullish breakouts above 0.6750 and 0.6860 were executed. Hence, the price level of 0.6750 constituted a significant support level where a bullish hammer daily candlestick was expressed on Tuesday.

The previous daily closure below the 0.6850 level (On Friday) enhanced a quick bearish movement towards 0.6750 where a valid BUY entry was offered on Tuesday.

T/P levels to be located at 0.6850 and 0.6920. S/L can be set as a daily closure below 0.6750.

This week, bullish persistence above 0.6850 is mandatory to maintain enough bullish momentum in the market. Otherwise, sideways consolidations should be expected between the price levels of 0.6750 and 0.6850.

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

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

However, 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.

On the other hand, 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.

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In 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 1.4670 is unlikely to be excluded.

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

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

In March 2015, the EUR/USD bears challenged the monthly demand level of 1.0570 which had been previously reached in August 1997.

Later in April 2015, a strong bullish recovery was observed around the mentioned demand level.

April's monthly candlestick came as a bullish engulfing one. However, next monthly candlesticks (September, October, and November) reflected a strong bearish rejection around the area of 1.1400-1.1500.

In February, the depicted price levels around 1.1400-1.1500 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.

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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 where the shooting-star daily candlestick appeared, indicating significant bearish rejection.

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 decline towards 1.1000 (depicted uptrend line and previous consolidation range) should be considered as a valid BUY entry.

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Technical analysis of NZD/USD for May 12, 2016

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Overview:

  • The NZD/USD pair has faced strong support at 0.6794 as the resistance turned into support. Thus, the strong support is seen at 0.6794, and the pair is likely to approach it in order to test it again. Additionally, the level of 0.6794 represents a daily pivot point as it is acting as major support now. Furthermore, the NZD/USD pair is continuing to trade in a bullish trend from the new support level at 0.6794. Currently, the price is in a bullish channel. According to the previous events, we expect the NZD/USD pair to move between 0.6794 and 0.6882. Additionally, the RSI is still signaling that the trend is upward as it remains far above the moving average (100). This suggests the pair will probably go up in coming hours. Therefore, the market is likely to show signs of a bullish trend. In other words, buy orders are recommended above 0.6794 with the first target at 0.6843. If the trend is able to break the double top at 0.6843, then the market will continue rising towards the weekly resistance 1 at 0.6882.
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Technical analysis of USD/CHF for May 12, 2016

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Overview:

  • The USD/CHF pair has faced strong resistance at the 0.9735 level as support turned into resistance on April 27, 2016. Thus, the strong resistance has been already formed at 0.9735, and the pair is likely to approach it in order to test it again. However, if the pair fails to pass through the level of 0.9735, the market will indicate a bearish opportunity below the new strong resistance level at 0.9735 (the level of 0.9760 coincides with the double top. Moreover, the RSI starts signaling a downward trend, as the trend is still showing strength below the moving average (100). The market is indicating a bearish opportunity below 0.9735, so it will be good to sell at 0.9730 with the first target at 0.9651. It will also call for a downtrend in order to continue towards 0.9571. The daily strong support is seen at 0.9571. However, never forget about the stop loss: it should be set at 0.9766.
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Analysis of gold for May 12, 2016

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Since our previous analysis, gold has been moving downwards. The price tested the level of $1,266.32 in a high volume. On the 30M time frame chart, I found that strength came in at the $1,266.35 level. Bearish bar is in a high volume but it closed near the top (sign of strength). If there is strong selling pressure, the bar shouldn't close near the top. The next bar is bullish, which is another sign that selling looks very risky. Watch for buying opportunities on the dips. Take profit levels are set at $1,270.00 and $1,272.00 levels.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,280.30

R2: 1,283.40

R3: 1,288.50

Support levels:

S1: 1,270.30

S2: 1,267.50

S3: 1,263.25

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

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Technical analysis of GBP/CHF for May 12, 2016

Technical outlook and chart setups:

The GBP/CHF pair is trading lower at 1.4000 levels for now, and it seems to have finally carved out a lower top at 1.4100 levels yesterday. The pair is likely to push lower towards 1.3570 levels from the current levels. Importantly, 1.4100 levels was Fibonacci 0.618 resistance of the drop between 1.4220 and 1.3825 levels as well. The wave structure indicates that bears are likely to remain in control going forward. Hence, it is recommended to remain short with risk above 1.4230 levels. Immediate resistance is seen at 1.4100 levels, while support lies at 1.3800 levels (interim).

Trading recommendations:

Remain short for now, stop above 1.4230, target is open.

Good luck!

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Technical analysis of USDX for May 12, 2016

The Dollar index is pulling back lower as we expected in our previous analysis. The Dollar index has made a short-term top and is pulling back. For now the pullback is shallow as price is still supported and we haven't even retraced 38% of the entire rise. So more downside for the short-term is justified.

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The Dollar index has made a bearish reversal as we expected. On the 4-hour chart price remains above the 38% Fibonacci retracement. This is also where the Kumo support is found. I expect a minimum pullback towards the 38% Fibonacci retracement but first we could see a double top rejection.

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Red line - resistance

The Dollar index got rejected at the red trend line resistance but holds above the kijun-sen (yellow line indicator). A break above the red trend line will open the way for a push towards the Kumo near 95.50. A break below the kijun-sen will open the way for a deeper correction towards 93.10.

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Technical analysis of USD/JPY for May 12, 2016

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USD/JPY is expected to trade with a bullish bias.Overnight U.S. stock indexes closed broadly lower, weighed by retail and consumer shares. Office Depot (ODP) slumped 40.4% and Staples (SPLS) dropped 18.3% after announcing the termination of their merger agreement. Macy's (M) fell 15.2% as it lowered its full-year guidance. The Dow Jones Industrial Average declined 1.2% to 17711, the S&P 500 lost 1.0% to 2064, and the Nasdaq Composite was also down 1.0% to 4760.

Boosted by the U.S. report of an unexpected fall in crude inventories, Nymex crude oil surged 3.5% to $46.23 a barrel. Gold rose 0.9% to $1,277 an ounce, silver jumped 1.7% to $17.40 an ounce, while the benchmark 10-year Treasury yield eased to 1.735% from 1.760% in the previous session.

On forex trading, the U.S. dollar reversed its course and gave up some gains made in the prior six sessions rallying. EUR/USD rebounded 0.5% to 1.1425, USD/JPY dropped 0.8% to 108.41, GBP/USD added another 6 pips to 1.4446, and USD/CHF was down 0.5%.

Meanwhile, commodities-linked currencies continued to rebound against the greenback. USD/CAD lost another 0.5% to 1.2848, AUD/USD rose 0.2% to 0.7375, while NZD/USD was up 0.9% to 0.6817. The pair continues on its consolidation while being capped by the 20-period (30-minute chart) moving average. Meanwhile the level at 108.20 is holding as the key support. At the same time, the intraday relative strength index is under the neutrality level of 50, showing a lack of upward momentum for the pair. If 108.20 holds as the key support, the pair stands a chance of returning to the first upside target at 109.40.

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 109.40 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 108.20.

Resistance levels: 109.40, 109.90, 110.45

Support levels: 107.40, 107, 106.55

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Technical analysis of Gold for May 12, 2016

Gold price has reached our targets of $1,270-80 for the bounce we expected. Now Gold price is already 10$ lower than its latest high and got rejected at the 50% retracement of the decline. There are increased chances that a high is in and that a push below $1,260 is coming.

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With stochastic oscillator in overbought levels this could be another top at $1,280 and a new downward move has already started. Yes we can see price reach the 61.8% Fibonacci retracement but this is not a necessary condition. If price exits below the 4 hour Kumo then we can say that the next downward move has started. If price remains inside the Kumo we could see a minor new higher high near $1,285.

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In the Daily chart price is trapped between the kijun- and tenkan-sen. Daily cloud support is at $1,262 and then at $1,235. Resistance is at $1,285. As long as price is below $1,285 I'm bearish or neutral.The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of USD/CHF for May 12, 2016

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USD/CHF is expected to trade with a bullish bias as the key support stands at 0.9680. The pair stands firmly above its horizontal level at 0.9680, and is likely to post further advance to 0.9765 at first. Although a continuation of the consolidation cannot be ruled out, its extent should be limited by 0.9680. The relative strength index lacks downward momentum .

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 0.9655 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: 0.9765, 0.9795, 0.9850

Support levels: 0.9655, 0.9620, 0.9570

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Technical analysis of EUR/JPY for May 12, 2016

General overview for 12/05/2016:

The price reaction from the grey rectangular typical zone was promising and even the first impulsive wave might be labeled after the drop, but the market was to weak to break out below the important support at the level of 123.50. To confirm the reversal is true, the price must drop below the intraday support at the level of 123.50 and then below 123.23 technical support. Extension to the upside is possible only if the price breaks out above the local high at 124.40 in an impulsive fashion. Otherwise, lower prices are expected in this market, but the simple corrective structure might evolve into more complex and time-consuming cycle.

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.

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Technical analysis of USD/CAD for May 12, 2016

General overview for 12/05/2016:

The downward wave progression is developing as anticipated, but the corrective pattern evolves towards z triple zig-zag. The projected tag for the wave c termination is still at the level of 1.2758, right at the technical support. Please notice that the price is starting to diverge from the momentum oscillator, so the market is close to complete the overall corrective structure.

Support/Resistance:

1.3015 - Intraday Resistance

1.2830 - Intraday Support

1.2818 - Weekly Pivot

1.2785 - Intraday Support

1.2758 - Technical Support

1.2675 - WS1

Trading recommendations:

Sell orders from the beginning of the week should now move their SL to the level of 1.2870, but TP is still open for now (might extend to around 1.2758).

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Technical analysis of NZD/USD for May 12, 2016

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NZD/USD is expected to trade with a bullish bias above 0.6790. The pair remains on the upside, backed by its rising 50-period moving average, which now acts as a support role, and should maintain a positive bias. Even though a continuation of the consolidation cannot be ruled out at the current stage, its extent should be limited. Hence, as long as 0.6790 is not broken, look for further upsides to 0.6860 and 0.6890 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 0.6860 and the second one, at 0.6890. In the alternative scenario, short positions are recommended with the first target at 0.6765 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 0.6740. The pivot point is at 0.6790.

Resistance levels: 0.6860, 0.6890, 0.6920

Support levels: 0.6765, 0.6740, 0.67

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Technical analysis of GBP/JPY for May 12, 2016

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GBP/JPY is expected to trade with a bullish bias above 123.20. The pair is moving sideways around its 20-period and 50-period moving averages and stands above its support at 156.35. Even though a continuation of the consolidation cannot be ruled out, its extent should be limited. Further upside is expected with the next horizontal resistance and overlap set at 158 (May 10 high) 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 158 and the second one, at 158.45. In the alternative scenario, short positions are recommended with the first target at 155.90 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 155.90. The pivot point is at 156.45.

Resistance levels: 158, 158.45, 159.50

Support levels: 155.90, 155.35, 154.35

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

Global macro overview for 12/05/2016

Global macro overview for 12/05/2016:

The Westpac-Melbourne Institute Consumer Sentiment Index jumped 8.5% in May to a January-2014 high of 103.2, after sliding to a seven-month low of 95.1 in April. This largest single increase since June 2010 was caused by the earlier rate cut by RBA , which improved the overall confidence of Australian citizens. As we remember, the central bank cut the official cash rate by 25 basis points to 1.75%, after keeping rates on hold for a year. In conclusion, the majority of consumers are positive about the outlook for the economy and their personal finances.

Let's now take a look at the AUD/USD technical picture in the daily time frame. The resistance zone between the levels of 0.7412-0.7382 has put a lid on the bullish bounce and now the market is heading lower towards the next important support at 0.7259 that corresponds to 200 DMA as well. After the brown ascending trend line breaks out, bears are still in control over this market and only a sustained violation of the level of 0.7490 would bring bulls back to the game.

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Global macro overview for 12/05/2016

Global macro overview for 12/05/2016:

The main event of the week is the Bank of England interest rate decision and monetary policy summary, which is scheduled for release at 11:00am GMT today. Market participants expect no change in the key interest rate as it should stay at the level of 0.50%, together with the asset purchase facility at 375bln pounds. There might be however some surprise in the bank rate votes. Currently, the 0-0-9 structure is still expected, but Bank of England is set to update its take on how the Brexit is affecting the economy as there are only six weeks to the June referendum. In conclusion, very interesting BoE meeting is ahead as the risk of a vote to leave the EU has helped push up investor bets for a rate cut before the end of the year.

Let's now take a look at the GBP/USD technical picture in 4h time frame. The market has stuck in the congestion zone between two important levels: technical resistance at the level of 1.4473 and technician support at the level of 1.4374. The higher time frames remain bearish and in case of a rate cut or no change the selling pressure in this pair might be strong.

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

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Wave summary:

It's not yet clear whether a direct rally towards 1.7052 and higher to 1.7273 is developing or a more complex structure is developing before the rally higher can take place.

A break below support at 1.6592 will confirm the more complex structure calling for a series of waves. But ultimately more upside pressure is expected in both scenarios, it's just a question of how and when.

Trading recommendations:

We are long on the EUR from 1.6315 with stop placed at 1.6600. If you are not long on the EUR yet, then buy a break above 1.6904 and place your stop at 1.6700

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

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

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Wave summary:

The correction in red wave [iv] turned into a triangle consolidation and should ultimately thrust higher towards 124.73 and maybe even slightly higher to 125.09 before terminating wave i and setting the stage for a correction back towards the 123.58 - 124.00 area.

In short term, the triangle still needs a few more squiggles to finish. Once red wave [e] is done, a break above minor resistance at 124.29 will confirm that red wave [v] is developing.

Trading recommendations:

We are long from 122.55 and will move our stop higher to 123.55 and place stop profit at 124.65

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

Technical analysis of EUR/USD for May 12, 2016

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When the European market opens, some economic news will be released such as Industrial Production m/m, French Final CPI m/m, and German WPI m/m.The US will publish the economic data too, including 30-y Bond Auction, Natural Gas Storage, Import Prices m/m, Unemployment Claims. So amid the reports, EUR/USD will move low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Breakout BUY Level: 1.1478.

Strong Resistance:1.1471.

Original Resistance: 1.1460.

Inner Sell Area: 1.1449.

Target Inner Area: 1.1422.

Inner Buy Area: 1.1395.

Original Support: 1.1384.

Strong Support: 1.1373.

Breakout SELL Level: 1.1366.

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 12, 2016

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In Asia, Japan will release information on the Economy Watchers Sentiment indicator, 30-y Bond Auction, Bank Lending y/y, the BOJ's Summary of Opinions, and Current Account. The US will release some economic data such as 30-y Bond Auction, Natural Gas Storage, Import Prices m/m, and Unemployment Claims. So there is a probability that the USD/JPY pair will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Resistance. 3: 109.02.

Resistance. 2: 108.81.

Resistance. 1: 108.60.

Support. 1: 108.33.

Support. 2: 108.12.

Support. 3: 107.61.

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 12, 2016

On the H1 chart, the USDX found dynamic support at the 93.80 level, where we could expect a rebound towards the 94.06 level, if the 200 SMA holds in coming days. However, the overall bullish bias is still solid and maybe the coming corrections could be catalysts for further bullish strength. The MACD indicator is showing a market oversold, so the Index may perform a larger rebound.

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H1 chart's resistance levels: 94.06 / 94.35

H1 chart's support levels: 93.80 / 93.57

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 94.06, take profit is at 94.35, and stop loss is at 93.78.

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

Daily analysis of GBP/USD for May 12, 2016

GBP/USD continues trading slow in a sideways range, but still trapped below the 200 SMA and dominated by the bearish bias. If pair does another rebound at the current levels and spikes towards the resistance zone of 1.4549, it could break that level for further advance to the 1.4635 level. The 200 SMA remains flat and the MACD indicator is at the negative territory.

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H1 chart's resistance levels: 1.4549 / 1.4635

H1 chart's support levels: 1.4430 / 1.4316

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 1.4430, take profit is at 1.4316, and stop loss is at 1.4542.

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