Daily analysis of GOLD for May 16, 2016

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Overview

The gold price failed to break the bullish trend line (shown on the above chart) to trade positively and breach the minor bearish channel's resistance. The latter forms bullish flag continuation pattern that we expect to lead the price to achieve more gains in the upcoming period, especially given that the EMA50 supports the price from below. Therefore, we expect more bullish bias on the intraday and short-term basis to resume the main bullish track, which targets begin by breaching the previously recorded top at $1,303.58 heading towards $1,344.85 as the next main station, noting that breaking the $1,263.70 level will stop the positive overview and push the price to test $1,243.17 levels before any new attempt to rise.

The expected trading range for today is between the $1,260.00 support and the $1,300.00 resistance.

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Daily analysis of Silver for May 16, 2016

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Overview

Silver price attempted to break the neckline of the head and shoulders pattern that appeared on chart without managing to break it. It also made an attempt to visit the bullish channel resistance located at 17.75, supported by breaching of the EMA 50. Besides, stochastic is heading upwards in the four-hour time frame. Therefore, the bullish bias will be suggested for today unless breaking the 16.90 level and holding below it. This could activate the negative effect of the above mentioned pattern followed by pushing the price to the target of 16.37 followed by 16.10 levels.

The expected trading range for today is between the 16.90 support and the 17.75 resistance.

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Gold analysis for May 16 , 2016

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Since our previous analysis, gold has been moving upwards. The price tested the $1,283.64 level in a high volume. On the 5M time frame chart, I found an upward trend line and successful rejection in a low volume. The price is testing an upward diagonal and there has been no selling power for breakout so far, which means that we may see potential upward continuation. Watch for buying opportunities on the dips. Buy positions are recommended at $1,280.00. The take profit level is set at the price of $1,295.00.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,276.30

R2: 1,277.00

R3: 1,279.00

Support levels:

S1: 1,272.50

S2: 1,272.00

S3: 1,270.00

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

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Elliott wave analysis of EUR/NZD for May 16, 2016

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Wave summary:

Nothing comes as a surprise anymore as long as it concerns EUR/NZD. The slightly deeper correction to 1.6604 is neither a surprise, but we do believe that the downside should be in place or very limited from here and a new rally to above 1.6931 should be seen anytime now confirming that wave iii higher to 1.7254 is developing.

A break below 1.6604 will extend the downside, but only a break below support at 1.6479 will be of concern.

Trading recommendation:

We are long EUR from 1.6315 with a stop placed at 1.6600. If you are not long EUR yet, then buy a break above 1.691.

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EUR/NZD analysis for May 16, 2016

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Recently, EUR/NZD has been moving sideways at the 1.6650 level. Previous analysis is still valid. According to the 30M time frame chart, there is a trading range between the 1.6640 (support) and 1.6800 (resistance) levels.The level of 1.6640 is on the test. Watch for a breakout of the trading range in a high volume to define further direction. The upside target is set at 1.6920. In case the price breaks support, the downside target should be placed at 1.6540.

Fibonacci Pivot Points:

Resistance levels:

R1: 1.6725

R2: 1.6745

R3: 1.6780

Support levels:

S1: 1.6650

S2: 1.6630

S3: 1.6600

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

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Elliott wave analysis of EUR/JPY for May 16 - 2016

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Wave summary:

The correction that we looking for in wave [ii] extended lower to the 61.8% corrective target at 122.68 before turning higher in wave [iii]. We will now be looking for a break above 123.81 to confirm that wave [ii] indeed terminated at 122.61 and wave [iii] is moving higher towards at least 125.78.

Now support is seen at 122.91, which ideally will protect the downside for the break above 123.81.

Trading recommendation:

We bought the EUR at 123.10 and placed our stop at 122.60. If you are not long on the EUR yet, then buy above 123.81 and place your stop at 122.90.

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USD/CAD intraday technical levels and trading recommendations for May 16, 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 current pullback towards 1.2970 (61.8% Fibonacci level) as a valid signal to sell the USD/CAD pair.

Target levels should be located at 1.2700 and 1.2550 while S/L should be placed above 1.3050.

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Technical analysis of GBP/USD for May 16, 2016

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Overview:

  • The GBP/USD pair broke support which turned into strong resistance at the level of 1.4257 last week. The level of 1.4414 is expected to act as major resistance today. From this point, we expect the GBP/USD pair to continue moving in a bearish trend from the resistance levels of 1.4257 and 1.4390. Currently, the price is moving in a bearish channel. This is confirmed by the RSI indicator signaling that we are still in the bullish trending market. So, the market is likely to show signs of a bearish trend around the spot of 1.4257 - 1.4390. In other words, sell orders are recommended below the spot of 1.4257 or 1.4390 with the first target at the level of 1.4297. This would suggest a bearish market because the moving average (100) is still in a positive area and is not showing any trend-reversal signs at the moment. Moreover, if the GBP/USD pair succeeds to break through the support level of 1.4297, the market will decline further to 1.4223. The pair is expected to drop lower towards at least 1.4223 with a view to test the major support this week. However, if a breakout happens at the resistance level of 1.4414, then this scenario may be invalidated.
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NZD/USD Intraday technical levels and trading recommendations for May 16, 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 is being offered. T/P levels to be located at 0.6850 and 0.6920 while 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 16, 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.

Two weeks ago, the depicted long-term downtrend line came to meet the GBP/USD pair around the same price zone.

Hence, significant bearish rejection and bearish weekly candlesticks were executed around the upper limit of it (1.4670 level).

The next bearish destinations for the GBP/USD pair would be located at 1.4300, 1.4220, 1.4050, 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.

Last week, daily persistence below 1.4470 was needed to enhance further bearish decline initially towards 1.4350.

On Friday, a bearish engulfing daily candlestick was expressed by the end of the day (the weekly closure as well).

As long as the GBP/USD pair keeps trading below 1.4470, bearish decline in the direction of the price levels of 1.4300, 1.4220, and 1.4050 should be expected.

Price action should be watched carefully around 1.4050 for a possible bullish rejection and a valid BUY entry.

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Intraday technical levels and trading recommendations for EUR/USD for May 16, 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.

On May 5, 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.

Last week, daily persistence below the 1.1400 level was needed to ensure further bearish momentum towards 1.1330, 1.1210, and 1.1150 levels. A strong bearish daily candlestick was achieved on Friday.

Please note that 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 EUR/USD for May 16, 2016

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Overview:

  • The EUR/USD pair faced strong support at the levels of 1.1282 and 1.1239. So, the strong support is seen at the level of 1.1239, and the pair is likely to try to approach it in order to test it again. However, if the pair fails to pass through the level of 1.1282, the market will indicate a bullish opportunity above the new strong support level of 1.1282 (the level of 1.1282 coincides with the daily support 1). Moreover, the RSI starts signaling an upward trend, as the trend is still showing strength above the moving average (100). Thus, the market is indicating a bullish opportunity above 1.1239 so it will be good to buy at 1.1239 with the first target of 1.1354. It will also call for an uptrend in order to continue towards 1.1425. The daily strong resistance is seen at the levels of 1.1425 and 1.1446. However, the stop loss should always be taken into account, hence it will be reasonable to set your stop loss at the level of 1.1200.

Intraday technical levels:

  • R3: 1.1611
  • R2: 1.1540
  • R1: 1.1425
  • PP: 1.1354
  • S1: 1.1239
  • S2: 1.1168
  • S3: 1.1053
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Technical analysis of GBP/CAD for May 16, 2016

After finding the top near 1.8700, GBP/CAD started to range forming support around 1.8650. Eventually the support was broken and pair started to produce lower lows and lower highs.

The Fibonacci applied to the first corrective wave up after the 1.8650 support breakout shows that the S1 (1.8500) support was broken and the way to another extension up could be open. Today, the price rejected the R1 (1.8560) support and broke below the upward trend line.

Consider selling GBP/CAD at the current rate (1.8530) targeting either the S2 (1.8415) or S3 (1.8325) support areas. The stop loss should be just above the 1.8600 psychological resistance level.

Support: 1.8500, 1.8415, 1.8325

Resistance: 1.8560, 1.8650

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Technical analysis of GBP/JPY for May 16, 2016

GBP/JPY broke below the upward trend line suggesting a continuation of a downtrend. After the breakout, price corrected sharply and formed support around the 156.60 area, which was broken last week.

Fibonacci applied to the first corrective wave after the breakout suggest 3 potential downside targets, S2, S3, and S4. The RSI oscillator formed a bearish divergence adding extra confirmation to the potential downtrend continuation.

Consider selling GBP/JPY while the rate is near R1 (156.60), targeting either S2, S3, or S4 (153.30) as a final target. The stop loss should be just below the R2 (157.40)

Support: 155.70, 155.10, 154.20, 153.30

Resistance: 156.60, 157.40

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Global macro overview for 16/05/2016

Global macro overview for 16/05/2016:

The Friday's data on the US retail sales beat the market expectations. The market participants had expected a negative reading of -0.3%, just like a month before. Nevertheless, retail sales advanced 1.3% last month, the largest increase since March 2015. Moreover, data on Core Retail Sales ( retail sales without automobiles, gasoline, building materials, and food services) advanced 0.9% last month as well. It was better than market expectations of a 0.6% increase and better than a 0.4% rise months before. In conclusion, if consumers can keep up stronger sales in order to increase economic growth in the coming months, that could influence the Fed's decision concerning the date of its benchmark interest rate hike. For today, according to the Fed Fund futures prices, the probability of a hike at June meeting is less than 4%.

Let's now take a look at the EUR/USD technical picture in the 4H time frame. Currently, the market is trading just above the important technical support at the level of 1.1271, but the most important one, at the level of 1.1215, hasn't been tested ( or violated) yet. Bulls are still in control over this market in the medium-term, but they need to break out higher above the level of 1.1357 and 1.1478 to prove their dominance in this market.

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Global macro overview for 16/05/2016

Global macro overview for 16/05/2016:

The bank holiday's across the Europe will means the light trading conditions today, but going forward there are very interesting fundamental data releases later on. The most important one will be the FOMC meeting minutes due on Wednesday at 06:00pm GMT, so traders and investors will have a chance to confront the April meeting remarks and get more insight into the where exactly the Federal Reserve lies on the interest rates tightening process. The next important ones will be a series of data from UK: Consumer Price Index on Tuesday at 08:30am GMT, Claimant Count Change on Wednesday at 08:30am GMT and Retail Sales on Thursday, again at 08:30am GMT. Moreover, the debate of a possible Brexit is now getting more and more important, so were going to see a lot more fight from the anti-E.U. camp in the coming weeks. In conclusion, despite the slow start it looks like interesting week ahead on financial markets.

Let's now take a look at the GBP/USD technical picture in the 4H time frame. The 50% Fibo level has been violated and bears have manages to push the prices below the important support at the level of 1.4374. Currently, this level is being tested from below and in case of a failure to break out higher, the next important support at the level of 1.4298 will be eyed.

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Technical analysis of EUR/JPY for May 16, 2016

General overview for 16/05/2016:

The downward wave progression looks promising as the first five waves in the form of a Leading Diagonal Triangle has been made. The invalidation of this structure is at the level of 124.65, so as long as the internal corrective cycle in a potential wave (ii) green is developing below this level, the chances for downward trend continuation are high. On the other hand, in case of the level of 124.65 violation, the market might evolve to more complex and time consuming structure in wave (b) blue.

Support/Resistance:

121.47 - Swing Low

121.56 - WS1

122.67 - Intraday Support

123.11 - Weekly Pivot

123.79 - Intraday Resistance

124.08 - WR1

124.55 - Wave (b) High

125.61 - WR2

Trading recommendations:

Day traders should consider to sell the rally in this market with SL above the level of 125.65 and TP open for now, because we expect an impulsive wave progression to the downside to continue in the near term.

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Technical analysis of USD/CAD for May 16, 2016

General overview for 16/05/2016:

The pair is still trading inside the neutral zone, but the recent breakout above the descending golden trend line looks promising for bulls. Nevertheless, it is worth mentioning, that the current corrective structure might evolve into more complex pattern. The impulsive break out above the intraday resistance at the level of 1.3014 is needed to confirm the bulls strength.

Support/Resistance:

1.3160 - WR2

1.3065 - WR1

1.3014 - Intraday Resistance

1.2918 - Weekly Pivot

1.2881 - Intraday Support

1.2821 - WS1

1.2757 - Technical Support

Trading recommendations:

Day traders should consider to buy at the dips in this market with SL below the level of 1.2757 and TP open for now, because we expect an impulsive wave progression to the upside to continue in the near term.

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Daily analysis of major pairs for May 16, 2016

EUR/USD: The EUR/USD went downwards last week – a movement that has generated a bearish signal on the 4-hour chart. As it was mentioned last week, the outlook on this pair is bearish and further southward movement is expected this week, which could make the price go towards the support lines at 1.1250 and 1.1200.

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USD/CHF: The near-term bias on this pair is bullish, since it went in the opposite direction to the EUR/USD. This week, further movement to the upside is anticipated because the outlook on USD is bright for the week. Therefore, we could see pairs like the AUD/USD, the NZD/USD, etc. getting affected (of course, the USD/CHF would go up).

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GBP/USD: The Cable simply moved sideways most of last week, save the slight dip that was witnessed on Friday. A closer look at the market reveals that the bears have some form of dominance over the bulls. The EMA 11 is below the EMA 56 and the RSI period 14 is below the level 50. In the face of the expected stamina in the USD, the Cable might test the accumulation territories at 1.4300, 1.4250, and 1.4200 this week.

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USD/JPY: The bias on the USD/JPY is bullish, though this is something precarious. Unless the price goes above the supply level at 110.00, the bullish bias would remain weak. On the other hand, a movement below the demand level at 107.50 would mean a new lease of bearish outlook. This week would determine what would happen next.

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EUR/JPY: Here, the bullish gains that were realized in the first few days of last week were forfeited in the last few days of the same week. There is currently no dominant bias on the market, and the indicators are even giving mixed signals. It is better to wait for a directional movement before taking a position. Conditions surrounding the Yen would dictate the events on this cross during the week (as well as on other JPY pairs).

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Technical analysis of USD/JPY for May 16, 2016

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USD/JPY is expected to trade with a bullish bias. Last Friday, US stock indices posted another losing session despite encouraging retail sales data (+1.3% month-on-month in April vs +0.8% expected and -0.3% in March). Retail shares continued to weaken, with Nordstrom Inc (JWN) slumping 13.4% and J.C. Penney (JCP) declining 2.8%. And falling oil prices further weighed on stocks. The Dow Jones Industrial Average lost 1.1% to 17535, the S&P 500 dropped 0.9% to 2046, and the Nasdaq Composite was down 0.4% to 4717.

Nymex crude oil settled 1.1% lower at $46.21 a barrel, gold gained 0.8% to $1,273 an ounce and the benchmark 10-year Treasury yield dropped to 1.705% from 1.758% in the previous session.

On the forex front, the US dollar kept rallying against other major currencies as better-than-expected economic data helped to boost expectations of further interest rate increases by the Federal Reserve. EUR/USD dropped 0.6% to a 2-week low of 1.1305 (day-low at 1.1281), GBP/USD declined 0.6% further to 1.4361. On the other hand, USD/JPY slid 0.4% to 108.60 (day-high at 109.48).

Meanwhile, commodities-linked currencies broadly weakened against the greenback, with USD/CAD rising 0.7% to 1.2940 and AUD/USD falling another 0.9% to 0.7263. NZD/USD shed 0.7% to close at 0.6763, again below its 200-day moving average. The pair re-tested the first upside target at 109.40 again last Friday before entering a consolidation. Currently, the level of 108.20 holds as the key support, and the pair is rebounding and breaking above both the 20- and 50-period (30-minute chart) moving averages. At the same time, the intraday relative strength index has returned to the neutrality level of 50 from the downside and is turning up, calling for further upward momentum for the pair. If the pair eventually succeeds in taking out the level of 109.40 (which it tried on each day of May 10-13), it is expected to proceed further toward 109.90 (a key resistance seen in April 20-21).

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 16, 2016

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USD/CHF is expected to post some further gains. The pair bounced off its key support at 0.9700 and is likely to challenge its nearest resistance at 0.9795. The 50-period moving average acts well as support and should continue to push the prices higher. Last but not least, the relative strength index stands firmly above its neutrality area at 50 and calls for a new rise. To sum up, above 0.9700, further advance is expected to 0.9795 and 0.9850 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 0.9795 and the second one, at 0.9850. In the alternative scenario, short positions are recommended with the first target at 0.9660 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 0.9625. The pivot point is at 0.97.

Resistance levels: 0.9795, 0.9850, 0.9905

Support levels: 0.9660, 0.9625, 0.9570

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Technical analysis of NZD/USD for May 16, 2016

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NZD/USD is expected to trade in a lower range and is currently under pressure. The pair remains on the downside, capped by its falling 20-period and 50-period moving averages. The relative strength index is bearish below its declining trendline. Last but not least, the key resistance at 0.6740 maintains strong selling pressure. Hence, below 0.6805, look for further downsides to 0.6740 and 0.6710 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 0.6740. A break of this target will move the pair further downwards to 0.6710. The pivot point stands at 0.6805. 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 0.6830 and the second target at 0.6850.

Resistance levels: 0.6830, 0.6850, 0.6890

Support levels: 0.6740, 0.6710, 0.6665

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Technical analysis of USDX for May 16, 2016

The Dollar index continued its upward move on Friday to new short-term highs but at the end it showed some weakness signs. The trend remains short-term bullish. The weekly reversal signal is very strong.

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Black line - trend line support

Price is trading above the Kumo and the trend line support. There are two bullish signs. Price is also above the kijun- and tenkan-sen indicators so this supports the bullish short-term trend. Support is at 94.30. Breaking below it could push price towards 93.60 where the 4 hour Kumo is found.

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Red line - resistance (broken)

In the daily chart price has made a short-term reversal by breaking above the red trend line resistance. Important resistance is now the Kumo at 95.50. Bulls need to break out and above the daily Kumo in order for the longer-term bullish reversal scenario to be viable.

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Technical analysis of GBP/JPY for May 16, 2016

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GBP/JPY is under pressure. The pair is accelerating on the downside after breaking below 157.15, which should now play a key resistance role. Meanwhile both 20-period and 50-period moving averages are descending and maintain a bearish bias. A first target to the downside is set at the horizontal support and overlap at 122.35. A break below this level would open the way to further weakness toward 155.35.

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 155.35. A break of this target will move the pair further downwards to 154.65. The pivot point stands at 157.15. 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 157.75 and the second target at 158.45.

Resistance levels: 157.75, 158.45, 159.50

Support levels: 155.35,154.65, 153.85

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Technical analysis of Gold for May 16, 2016

Gold remains supported and mainly moves sideways in a neutral range between $1,290 and $1,250. A breakout above or below this range will push the price towards $1,350 or $1,190 respectively.

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Black line - resistance trend line

Gold is trading again above the Kumo on the 4-hour chart but below the black trendline and with the stochastic oscillator diverging. $1,262 is an important short-term support. If broken, we will test $1,250. On the other hand, a 4-hour candle close above $1,285 will improve the chances of a continuation of the bullish trend.

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The weekly chart remains fragile as the stochastic and the RSI are diverging. The price holds above $1,250 (tenkan-sen red line indicator). I expect Gold to move towards the Ichimoku cloud near the $1,190-70 area. This is also where the weekly kijun-sen (yellow line indicator) is found.The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of Silver for May 15, 2016

Technical outlook and chart setups:

Silver dropped lower to $16.80 levels on Friday before pulling back. The metal is trading higher at $17.30 levels at this moment, expected to face resistance at $17.50 levels. Please note that $17.50 is also the fibonacci 0.618 resistance of the drop between $18.00 and $16.60 levels respectively. The metal is expected to produce a meaningful correction towards $16.00 levels going forward, as depicted on the 4H chart view. It is hence recommended to sell on rallies, with stop at $18.50 levels for now. Immediate support is seen at $16.60/80 levels, while resistance is at $17.60 levels respectively.

Trading recommendations:

Look to sell rallies through $17.50/60 levels, stop above $18.00 levels, target is open.

Good luck!

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Technical analysis of Gold for May 16, 2016

Technical outlook and chart setups:

Gold is seen to be trading higher for the day at $1,278.00 levels at this moment and is soon approaching a resistance zone around $1,280.00/82.00 levels. A push above $1,282.00 levels would open doors for a test of $1,295.00 levels at least. Please note that probability still remains for a test/push above $1,303.00 levels before turning lower again. On the flip side, a clear break below the trendline support would indicate that a meaningful top is in place and that the yellow metal is set for a deeper correction. It is hence recommended to remain short from here, with risk above $1,295.00 levels. Immediate resistance is seen at $1,295.00 levels, while support is seen through $1,256.00 levels respectively.

Trading recommendations:

Remain short for now, stop at $1,297.00, target is open.

Good luck!

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

Technical analysis of EUR/JPY for May 16, 2016

Technical outlook and chart setups:

The EUR/JPY pair is seen to be trading lower at 122.95 levels at this moment and should be looking to continue drifting lower below 121.40/50 levels going forward. Please note that the pair had reversed from fibonacci 0.618 resistance levels at 121.50/55 earlier (as shown here) and should continue its downtrend. Intraday pullback rallies are possible, but they should remain well capped below 124.50 levels from here on. It is hence recommended to remain short and look to add further on intraday rallies carving out lower tops ahead of 124.50 levels. Immediate resistance is seen at 124.50 levels (interim), while support is at 124.40 levels respectively.

Trading recommendations:

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

Good luck!

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

Technical analysis of GBP/CHF for May 16, 2016

Technical outlook and chart setups:

The GBP/CHF pair is seen to be trading at 1.4020/25 levels at this moment and should remain well capped below 1.4225 levels going forward. The pair is expected to face stiff resistance around 1.4050 levels, and a turn lower could be expected from there. However, a break above 1.4100 levels would rally further and test 1.4200 levels. The structure indicates that a high probability remains for a push lower till prices stay below 1.4225 levels. It is hence recommended to remain short with risk at 1.4230/50 levels. Immediate resistance is seen at 1.4100 levels, while support is at 1.3800 levels respectively.

Trading recommendations:

Remain short, stop above 1.4220, target is open.

Good luck!

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

Technical analysis of EUR/USD for May 16, 2016

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When the European market opens, no economic news will be released from the eurozone, but the US will release some economic data such as the TIC Long-Term Purchases, NAHB Housing Market Index, and Empire State Manufacturing Index. So amid the reports, EUR/USD will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Breakout BUY Level: 1.1372.

Strong Resistance: 1.1365.

Original Resistance: 1.1354.

Inner Sell Area: 1.1343.

Target Inner Area: 1.1316.

Inner Buy Area: 1.1289.

Original Support: 1.1278.

Strong Support: 1.1267.

Breakout SELL Level: 1.1260.

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 16, 2016

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In Asia, Japan will release the Prelim Machine Tool Orders y/y and PPI y/y. The US will release some economic data such as the TIC Long-Term Purchases, NAHB Housing Market Index, and Empire State Manufacturing Index. So there is a probability the USD/JPY will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Resistance. 3: 109.33.

Resistance. 2: 109.12.

Resistance. 1: 108.90.

Support. 1: 108.65.

Support. 2: 108.44.

Support. 3: 108.22.

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 16, 2016

On the H1 chart, USDX has been riding a strong bullish bias since a rebound was performed from the 200 SMA (May 11th). Currently, new highs could be reached as soon as the Index does a breakout above the psychological zone of 95.00, but the current structure could be telling us about a possible corrective move which could re-test the 94.35 level.

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H1 chart's resistance levels: 94.61 / 94.81

H1 chart's support levels: 94.35 / 94.06

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 94.61, take profit is at 94.81, and stop loss is at 94.41.

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Daily analysis of GBP/USD for May 16, 2016

GBP/USD broke the bullish trend line projected from the May 9th lows, and now we can expect a decline toward the support zone of 1.4316. Also, we should note that the Cable has been trapped in a sideways structure, and Friday's move told us about a possible bearish continuation to reach new lows during this week. The MACD indicator is at oversold conditions.

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H1 chart's resistance levels: 1.4430 / 1.4549

H1 chart's support levels: 1.4316 / 1.4222

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 1.4222 and stop loss is at 1.4408.

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