Daily analysis of USD/JPY for May 13, 2016

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Overview

The USD/JPY pair bounced bullishly to resume its bullish track on the short-term basis, as it is trying to hold above the 109.00 barrier, which supports the continuation of the bullish trend scenario. If the pair surpasses the 110.30 level, it will reach 113.97. Therefore, our positive overview will remain valid for the upcoming period unless the 106.63 level is broken. The expected trading range for today is between the 108.00 support and the 110.30 resistance.

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Daily analysis of GOLD for May 13, 2016

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Overview

The gold price showed positive trading this morning starting new test of the bearish channel's minor resistance. This urges caution from the upcoming trading as a confirmed breach of the level of $1,273.00 will stop the current negative pressure and lead the price to attempts to regain the main bullish trend. Therefore, the bearish bias is expected for the rest of the day unless breaching $1,273.00 and holding above it. Our negative targets begin at $1,258.50 and extend to $1,227.40.

The expected trading range for today is between the $1,240.00 support and the $1,290.00 resistance.

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Daily analysis of Silver for May 13, 2016

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Overview

Silver price continued its negative trading yesterday to show initial test of the neckline of the head and shoulders pattern that appeared on chart. It is located at 16.90. As we mentioned yesterday, breaking this level will push the price to suffer more intraday and short-term losses. Its main targets are 16.05 and 15.65. Therefore, our bearish overview will remain valid for today as long as the price is below 17.70, reminding you that breaking of the 16.90 level will confirm opening of the way to target of 16.05 followed by 15.65 levels. The expected trading range for today is between 16.40 support and 17.50 resistance.

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USD/CAD intraday technical levels and trading recommendations for May 13, 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 13, 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 13, 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 can be excluded.

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Intraday technical levels and trading recommendations for EUR/USD for May 13, 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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Analysis of EUR/NZD for May 13, 2016

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Recently, EUR/NZD has been moving sideways at the 1.6680 level. Previous analysis is still valid. According to the 30M time frame chart, there is a trading range between the 1.6666 (support) and 1.6800 (resistance) levels. Watch for a breakout of the trading range to define further direction. The upside target is set at 1.6920. In case the price breaks support, the downside target should be places at 1.6540.

Fibonacci Pivot Points:

Resistance levels:

R1: 1.6745

R2: 1.6775

R3: 1.6820

Support levels:

S1: 1.6650

S2: 1.6625

S3: 1.6580

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

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Analysis of gold for May 13, 2016

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Since our previous analysis, gold has been moving upwards. The price tested the $1,276.12 level in a high volume. On the 15M time frame chart, I found upward trend channel. The price is testing lower diagonal of channel, and there has been selling power for breakout so far, which means that we may see potential upward continuation. Watch for buying opportunities. Buy positions are recommended at $1,273.00. Take profit levels are set at $1,276.00 and $1,280.00.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,277.60

R2: 1,281.70

R3: 1,288.50

Support levels:

S1: 1,264.40

S2: 1,260.50

S3: 1,253.25

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 silver for May 13, 2016

Technical outlook and chart setups:

Silver is seen to be trading at $17.10 for now, after testing $16.88 level yesterday. The wave structure indicates that the metal is likely to push lower below $16.80 from the current levels. The metal is facing strong resistance at $17.60, and only a break above it would indicate that the price is heading towards $18.00/40 levels. On the other hand, downside risk will remain high till the price stays below $17.60 level, and bears are expected to remain in control. It is recommended to keep short positions now, with risk above $17.60 levels. Please note that the downside potential remains through $16.00 levels at least, and it may be not lower.

Trading recommendations:

Remain short with stop at $17.85 levels, target is open.

Good luck!

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Technical analysis of Gold for May 13, 2016

Technical outlook and chart setups:

Gold is seen to be trading at $1,275.00 levels at this moment, looking for a certain direction for the next move. The metal needs to either break above $1,280.00 levels or below $1,256.00 levels to determine its next move. Please note that the metal had bounced off the Fibonacci 0.618 support of the rally between $1,237.00 and $1,303.00 levels. But since then it has been confined between a range and needs to break out. A push above $1,280.00 levels could indicate that the metal is heading north towards $1,303.00/05.00 levels while a break below $1,237.00 levels would indicate that the metal is heading south towards $1,200.00 levels. It is recommended to remain flat and watch for a breakout from here on.

Trading recommendations:

Remain flat for now and look to sell at higher levels.

Good luck!

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Technical analysis of EUR/JPY for May 13, 2016

Technical outlook and chart setups:

The EUR/JPY pair reversed exactly from 124.5/600 levels as had been expected and discussed earlier. Please note that a significant engulfing bearish candlestick pattern is appearing to confirm a bearish reversal ahead.The pair backed off lower and is seen to be trading at 123.38 levels for now. Please note that all intraday rallies should remain well capped below 124.60 levels. It is recommended to remain short now, with risk above 124.60 levels. Immediate resistance is seen at 124.60 levels, while support is at 122.50 levels respectively. On the flip side, a push above 124.60 and the trend line resistance would change the existing bearish view.

Trading recommendations:

Remain short now, stop is at 124.60 levels, target is open.

Good luck!

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Technical analysis of GBP/CHF for May 13, 2016

Technical outlook and chart setups:

The GBP/CHF pair is now starting to accelerate lower, and is trading at 1.3988 levels at this moment. The pair was drifting sideways after printing 1.4074 highs yesterday. It seems to remain in control of bears till prices stay below 1.4100 levels. Please also note that it has already broken below the counter trend line support (not shown here) and the downside is expected to accelerate towards 1.3570 levels. It is hence recommended to remain short with risk at 1.4100 levels from here on. Immediate resistance is seen at 1.4100 levels, while support is seen at 1.3930 levels. Look lower from here.

Trading recommendations:

Remain short, stop is at 1.4100, target is 1.3570.

Good luck!

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Global macro overview for 13/05/2016

Global macro overview for 13/05/2016:

Yesterday, the Bank of England left the interest rate unchanged at the level of 0,50%, and the asset facility purchases was kept at the level of 375 bln pounds. Moreover, both vote grids for interest rates and asset purchase facility were unchanged in their structure, so the pattern of 0-0-9 with no dissidents remains valid. Nevertheless, the interesting comments from BoE Governor Mark Carney are worth to notice. He clearly warned that if British people vote to leave the EU, Britain's economy would slow sharply and could even slide into recession. Moreover, the pound could decline sharply, unemployment would probably climb up, consumers would delay spending, and investors would postpone their decisions to invest. In conclusion, the grim picture has been drawn for the Britons in case of Brexit, but the recent pools reveal that there is almost equal number of supporters and opponents whereas there are plenty of people who haven't decided yet. All in all, the 23rd of June will be definitely one of the most important days in Britain's modern history.

Let's now take a look at the GBP/USD technical picture in the 4H time frame after the Thursday data publication. The important technician support at the level of 1.4374 is still not violated, but any rally is very short-lived and reversed. No higher highs are made so far and it looks like bulls are growing stronger over the time. The next support is seen at the level of 1.4298.

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Technical analysis of NZD/USD for May 13, 2016

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Overview:

  • The trend of the NZD/USD pair movement was controversial as it took place in a narrow sideways channel. Amid the previous events, the price is still trading between the levels of 0.6844 and 0.6746. Also, the daily resistance and support are seen at the levels of 0.6746 and 0.6715 respectively. Therefore, it is recommended to be cautious while placing orders in this area. So, we need to wait until the sideways channel is completed.
  • This week, the market moved from its bottom at 0.6715 and continued rising towards the top of 0.6844.
  • Today, on the one-hour chart, the current rise will remain within a framework of correction.
  • However, if the pair fails to pass through the level of 0.6899, the market will indicate a bearish opportunity below the strong resistance level of 0.6899 (the level of 0.6884 coincides with the ratio of 50% Fibonacci). Since there is nothing new in this market, it is not bullish yet.
  • Sell deals are recommended below the level of 0.6899 - 0.6844 with the first target at 0.6715. If the trend breaks the support level of 0.6715, the pair is likely to move downwards continuing the development of a bearish trend to the level 0.6652 in order to test the daily support 2.
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Technical analysis of USD/CHF for May 13, 2016

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Overview:

  • The USD/CHF pair will continue rising from the level of 0.9694 in the long term. It should be noted that support is established at the level of 0.9633, which represents the 61.8% Fibonacci retracement level on the H1 chart. The price is likely to form a double bottom in the same time frame. Accordingly, the USD/CHF pair is showing signs of strength following a breakout of the highest level of 0.9694. So, buy above the level of 0.9694 with the first target at 0.9821 in order to test the daily resistance 1 and go further to 0.9917. Also, it might be noted that the level of 0.9917 is a good place to take profit. On the other hand, in case a reversal takes place and the USD/CHF pair breaks through the support level of 0.9633, a further decline to 0.9537 can occur. This would indicate a bearish market.

Intraday technical levels:

  • Major resistance:0.9917
  • Minor resistance:0.9821
  • Intraday pivot point: 0.9633
  • Minor support:0.9537
  • Major support:0.9444
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Global macro overview for 13/05/2016

Global macro overview for 13/05/2016:

The US job market data on unemployment claims widely disappointed market participants as the number of Americans filing for unemployment benefits increased to a more than one-year high last week. Investors had expected unemployment claims to rise just a little from 274, 000 to 277,000. Instead, the Labor Department reported that unemployment claims surged 20,000 to 294,000 in the week ended May 7 (highest level since February 2015). Some of the analyst argued that striking telecommunication workers could be the main driver of a rise. In conclusion, this kind of data did not suggest deterioration in the overall labor market, but it is worth to mention, that it is the third week in a row when US claims are higher than expected.

Let's now take a look at the EUR/USD technical picture in the 4H time frame. After making a swing high at the level of 1.1615, the market is dropping towards the lower support levels, but still the most important technical support at the level of 1.1215 has not been violated. Only if this level is clearly violated, bears will be in control over this market.

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Daily analysis of major pairs for May 13, 2016

EUR/USD: This pair is consolidating with fleeting upswings and downswings. Today or next week we could see a serious breakout from the current equilibrium phase, which would most probably favor the bears. The price is expected to go below the support levels of 1.1350 and 1.1300.

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USD/CHF: This currency trading instrument is still experiencing a bearish correction. However, the bearish correction has not jeopardized the existing bullish bias, though the Williams' % Range period 20 is now in the oversold territory. This could mean a good opportunity to seek potential long trades, unless the price goes below the support level at 0.9600, which would lead to a bearish signal.

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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 the bears.

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USD/JPY: There is an unambiguous "buy" signal on the USD/JPY 4-hour chart, with a clear Bullish Confirmation Pattern in the market. The 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 110.00 and 110.50.

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EUR/JPY: The movement on the EUR/JPY is quite similar to the movement of the USD/JPY pair. There is bullish bias on the market, owing to the position of the indicators on the 4-hour chart. When further northwards movement occurs, it would most probably be in favor of the bulls.

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Technical analysis of USD/CAD for May 13, 2016

General overview for 13/05/2016:

The downward wave progression labeled as a triple zig-zag correction was completed. Now the market is ready to develop another wave upward. The golden descending trend line was violated as well, and now the next target for the bulls is at the level of 1.2916. Please notice, the corrective structure in wave (ii) green might however evolve into a more complex and time consuming cycle.

Support/Resistance:

1.3015 - Intraday Resistance

1.29.16 - Intraday Resistance

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 be closed with profit, and day traders should consider buying this market from the current price levels with SL below the level of 1.2758 and TP open for now.

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Technical analysis of EUR/JPY for May 13, 2016

General overview for 13/05/2016:

The count was slightly modified to incorporate latest developments and the top of the wave (b) blue was reached exactly at the typical retracement area at the level of 124.64. After reaching the top, the market reversed and now the impulsive wave downside is in progress. The intraday resistance at the level of 123.60 should put a lid on any rally.

Support/Resistance:

120.33 - WS2

121.20 - WS1

122.36 - Weekly Pivot

123.23 - WR1

123.60 - Intraday Resistance

124.37 - WR2

124.64 - Wave (b) Top

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).

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Technical analysis of USDX for May 13, 2016

The Dollar index is testing recent highs and has only made a shallow retracement relative to the rise from below 92. Could this be it? The weekly chart remains very bullish confirming the bullish reversal, so yes, it is very possible that the pullback is already complete.

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On the 4-hour chart as shown above, the price remains above the Cloud and the kijun-sen is crossing above the tenkan-sen which provides a new bullish signal. The price is testing the previous high, and a break above it could spur more upside towards 95. Support is at 94.

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Red line - resistance

With the weekly stochastic oversold and diverging and the price back inside the Kumo after a bullish hammer reversal pattern, there are many bullish signs to ignore the upside potential in the Dollar index. I remain bullish.

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Technical analysis of Gold for May 13, 2016

Gold had a very volatile day yesterday. The price remains pressured and poised to move lower as long as bulls cannot break above $1,290. Breaking above that area will open the way for $1,350. Until then, we remain bearish or neutral.

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Black line - trend line resistance

Yellow area - overbought stochastic and previous tops

Gold is trading inside the Kumo on the 4-hour chart. The price has retraced 50% of the decline from $1,295 to $1,260. Initially, the price broke below the Kumo only to come back upwards and make a new short-term higher high closer to the 61.8% Fibonacci retracement. I expect more downside. $1,260 is critical support.

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The weekly chart remains bullish as the price remains above the tenkan-sen (red line indicator). The stochastic and RSI are both diverging and that is why I prefer to be neutral or bearish as long as the price is below $1,290. I would be even more bearish if we break below $1,260. I continue to expect the price to back-test the weekly upper cloud boundary support.The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of USD/JPY for May 13, 2016

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USD/JPY is expected to trade with a bullish Bias. Overnight, US stock indices, following oil prices' choppy trading path, ended narrowly mixed. The Dow Jones Industrial Average added 9 points to 17720, the S&P 500 was broadly flat at 2064, and the Nasdaq Composite dropped 23 points or 0.5% to 4737. Telecoms and consumer staples shares performed the best, while shares in technology, health-care and retail sectors were under pressure.

Nymex crude oil settled 1.0% higher at $46.70 a barrel after a volatile session (day-high at $47.02, day-low at $45.61). Precious metals also experienced a choppy day, with gold ending 1.1% lower at $1,263 an ounce (day-high at $1281), and silver 2.5% lower at $16.96 (day-high at $17.45). The benchmark 10-year Treasury yield climbed to 1.758% from 1.737% in the previous session.

Volatile trading was also found in the forex market. After all, the US dollar managed to regain strength against other major currencies after its decline in the prior session. The Japanese yen weakened against the greenback again as the Bank of Japan's Governor Haruhiko Kuroda mentioned the availability of more monetary easing. USD/JPY rebounded 0.6% to 109.01.

Although GBP/USD surged to a session-high of 1.4529 after policymakers of the Bank of England voted unanimously to hold interest rates unchanged, the pair settled broadly flat at 1.4445. The pair completed its consolidation at levels above the key support at 108.20 yesterday before posting a rebound, which brought it up to a day-high of 109.43. While the pair is currently off that high, it has managed to trade above the key support at 108.20. As intraday technical indicators (20-, 50-period moving averages, relative strength index on a 30-minute chart) are not showing a change in the bullish intraday outlook, re-testing of the first upside target at 109.40 is still expected.

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 USD/CHF for May 13, 2016

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USD/CHF is expected to trade with a bullish bias above 0.9680. The pair is pulling back now after yesterday's rallies. A strong support base around 1.4430 has formed and should limit any downward attempts. Meanwhile, the 20-period moving average stays above the 50-period one. The relative strength index lacks strong downward momentum. Hence, as long as 0.9680 is not broken, look for a new rise to 0.9735 and 0.9765 in extension.

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 0.9655 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: 0.9735, 0.9765, 0.9795

Support levels: 0.9655, 0.9620, 0.9570

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Technical analysis of NZD/USD for May 13, 2016

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NZD/USD is expected to trade in a higher range as the bias remains bullish. The pair stands firmly above its nearest support at 0.6775 and is likely to post a new bounce. The relative strength index is above its neutrality area at 50 and is also turning up. Further upside is therefore expected with the next horizontal resistance and overlap set at 0.6850 at first. A break above this level would call for further advance toward 0.6890.

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 0.6850 and the second one, at 0.6890. In the alternative scenario, short positions are recommended with the first target at 0.6740 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 0.6710. The pivot point is at 0.6775.

Resistance levels: 0.6850, 0.6890, 0.6920

Support levels: 0.6740, 0.6710, 0.6665

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

Technical analysis of GBP/JPY for May 13, 2016

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GBP/JPY is expected to trade in a higher range. The pair stands above its support at 156.45 and is moving sideways around its 20-period and 50-period moving averages. 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 yesterday's high at 157.75 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 157.75 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: 157.75, 158.45, 159.50

Support levels: 155.90, 155.35, 154.35

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

Elliott wave analysis of EUR/NZD for May 13 - 2016

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Wave summary:

We continue to see higher highs and higher lows indicating that an uptrend is building (no surprise in that), but we lack upside acceleration, which we think is because a series of wave one's and two's is building and if this is the case, then a series of wave three's will be like a firework when it finally takes off in a real manner.

In the short term, we are looking for support at 1.6610 to keep protecting the downside for a break above minor resistance at 1.6761 opening up the upside for a possible acceleration towards 1.7273 and higher.

Trading recommendation:

We are long in EUR from 1.6315 with stop placed at 1.6600. If you are not long in EUR yet, then buy a break above 1.6761 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 13 - 2016

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Wave summary:

With a high seen at 124.65, the first impulsive rally of the 121.46 low topped out just below our ideal target at 124.73.

We are now looking for a correction in wave [ii] into the 122.68 - 123.05 area as a low for wave [ii] and setting the stage for a new strong rally in wave [iii] higher to 128.22 as the next upside target.

Short-term minor resistance is seen at 124.20 that ideally will protect the upside for a continuation lower to 123.05 and maybe even lower to 122.68 before moving higher again.

Trading recommendation:

Our take profit at 124.65 was hit exactly for a nice profit. We will re-buy EUR at 123.10.

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

Technical analysis of EUR/USD for May 13, 2016

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When the European market opens, some economic news will be released such as the Flash GDP q/q, Italian Prelim GDP q/q, French Prelim Non-Farm Payrolls q/q, German Final CPI m/m, and German Prelim GDP q/q. The US will release economic data too such as the Revised UoM Inflation Expectations, Business Inventories m/m, Prelim UoM Consumer Sentiment, Core PPI m/m, Retail Sales m/m, PPI m/m, and Core Retail Sales m/m. So amid the reports, EUR/USD will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Breakout BUY Level: 1.1428.

Strong Resistance: 1.1421.

Original Resistance: 1.1410.

Inner Sell Area: 1.1399.

Target Inner Area: 1.1372.

Inner Buy Area: 1.1345.

Original Support: 1.1334.

Strong Support: 1.1323.

Breakout SELL Level: 1.1316.

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 13, 2016

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In Asia, Japan will release the Tertiary Industry Activity m/m and M2 Money Stock y/y. The US will release some economic data such as the Revised UoM Inflation Expectations, Business Inventories m/m, Prelim UoM Consumer Sentiment, Core PPI m/m, Retail Sales m/m, PPI m/m, and Core Retail Sales m/m. So there is a probability the USD/JPY will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Resistance. 3: 109.40.

Resistance. 2: 109.19.

Resistance. 1: 108.97.

Support. 1: 108.71.

Support. 2: 108.50.

Support. 3: 108.28.

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 13, 2016

USDX is currently doing a rebound above the 200 SMA on the H1 chart, and we can see another rally toward the 94.35 level on a short-term basis. However, this bullish trend could get invalidated when the Index does a breakout of the May 11th lows, which should push the price lower below the 200 SMA. The MACD indicator is reaching overbought territory.

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H1 chart's resistance levels: 94.35 / 94.61

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 94.34, take profit is at 94.61, and stop loss is at 94.09.

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

Daily analysis of GBP/USD for May 13, 2016

On the H1 chart, GBP/USD is still trapped in a range between the 1.4549 and 1.4430 levels, waiting to break some of those levels to reinforce the near-term trend. The overall structure is still calling for downside, but the yesterday session's price action told us that a possible bullish move could go toward the 1.4549 level.

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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