NZD/USD intraday technical levels and trading recommendations for May 18, 2016

1463575013_nzddaily.png

On January 28, the depicted support at 0.6400 acted as a prominent key level offering a valid buy entry. The 0.6550 level was broken a few weeks ago.

Bullish persistence above 0.6550 (depicted recent support) was necessary to keep the price moving towards higher bullish targets.

During February's consolidations, the price zone of 0.6750-0.6840 constituted a significant resistance zone where signs of a bearish rejection were seen (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 May 10.

Recently on May 6, a daily candlestick closure below the 0.6850 level enhanced a quick bearish movement towards 0.6750 where a valid BUY entry is 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 will continue between the price levels of 0.6750 and 0.6850.

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

USD/CAD intraday technical levels and trading recommendations for May 18, 2016

cadweekly.pngcaddaily.png

A bullish breakout above the previous consolidation zone between 1.2400 and 1.2800 was performed on July 15 (shown on the weekly chart).
A significant bearish rejection was observed around 1.3450. Hence another consolidation range was established from 1.3450 down to 1.2800.
On December 7, a bullish breakout above 1.3450 (upper limit of the recent consolidation range) enhanced the bullish side of the market. Hence a bullish visit to the resistance at 1.4120 (Fibonacci Expansion 100%) occurred.
Bullish persistence above 1.4150 enhanced the bullish side of the market towards 1.4650 (141.4% Fibonacci expansion) where an evident bearish rejection was expected (bearish engulfing weekly candlestick).
The 1.4120 level (Fibonacci Expansion 100%) stood as a significant resistance level where a significant bearish rejection was applied.
Although the area of 1.3050-1.3250 was expected to offer bullish support for the USD/CAD pair, the same price zone was broken below as depicted on the daily chart.
Shortly after, the 1.3300 level stood as a significant resistance as it corresponds to the 50% Fibonacci level and the backside of the broken weekly uptrend where a valid sell entry was suggested on March 24.

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

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

Intraday technical levels and trading recommendations for GBP/USD for May 18, 2016

gbpusdweekly.png

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.

gbpusddaily.png

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. Otherwise, the pair may become trapped between the price levels of 1.4480 and 1.4670 until breakout takes place.
On the other hand, If bearish decline occurs, price action should be watched carefully around 1.4050 for a possible bullish rejection and a valid BUY entry.

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

Intraday technical levels and trading recommendations for EUR/USD for May 18, 2016

1463571944_eurusdmonth.png

In January 2015, the EUR/USD pair moved below the major demand levels near 1.2100 and 1.2000 where historical bottoms had been previously set in July 2012 and June 2010.
Hence, a long-term bearish target is projected towards 0.9450.
In March 2015, the EUR/USD bears challenged the monthly demand level of 1.0570 which had been previously reached in August 1997.
Later in April 2015, a strong bullish recovery was observed around the mentioned demand level.
April's monthly candlestick came as a bullish engulfing one. However, next monthly candlesticks (September, October, and November) reflected a strong bearish rejection around 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.

eurusddaily.png

In December 2015, a consolidation range between 1.1000 and 1.0800 was established on the daily chart.

On February 3, a bullish breakout was executed above this consolidation range.
Bullish fixation above 1.1000 was mandatory to allow bullish movement to continue.
Similar to what happened in October 2015, the supply zone of 1.1410-1.1550 should constitute a significant resistance zone for the EUR/USD pair.
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 level. A strong bearish daily candlestick was achieved on Friday. Hence, a quick bearish decline towards 1.1210 and 1.1100 levels should be expected as long as the EUR/USD pair keeps trading below 1.1400.
Please note that any bearish pullback towards the level of 1.1000 (depicted uptrend line and previous consolidation range) should be considered for a valid BUY entry.

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

Gold analysis for May 18 , 2016

analytics573c525031663.png

Since our previous analysis, gold has been moving sideways at the price of $1,273.00. According to the daily time frame, I found weakness in the background. Bullish bar closed in the middle. Anyway, according to the 4h time frame, I found a downward channel. There are two options in my opinion. The breakout of level $1,268.00 should confirm downward continuation and potential testing of $1,256.00. The breakout of $1,288.60 should confirm upward movement and potential testing of $1,302.80.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,282.70

R2: 1,285.50

R3: 1,290.00

Support levels:

S1: 1,273.55

S2: 1,270.70

S3: 1,266.00

Trading recommendations for today: Watch for successful breakout in a high volume to confirm further direction.

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

Technical analysis of NZD/USD for May 18, 2016

NZDUSDH4.png

Overview:

  • The trend of NZD/USD pair movement has been controversial as it took place in a narrow sideways channel, the market has shown signs of instability.
  • Therefore, the price is still moving between the levels of 0.6842 and 0.6715.
  • The daily resistance and support are seen at the 0.6842 and 0.6715 levels respectively.
  • Consequently, it is recommended to be cautious while placing orders in this area (0.6842 - 0.6715). We need to wait until the sideways channel is completed.
  • Yesterday, the market moved from its bottom at 0.6754 and continued to rise towards the top of 0.6842.
  • Today, the current rise will remain within a framework of correction, which can be seen on the four-hour chart. However, if the pair fails to pass through 0.6842, the market will indicate a bearish opportunity below the strong resistance at 0.6842.
  • Sell deals are recommended below 0.6842 with the first target at 0.6715. If the trend breaks the support at 0.6715, the pair is likely to move downwards continuing the development of a bearish trend to the level 0.6687 in order to test the daily support 2.
  • The stop loss is better to be set above the first resistance at 0.6860.
The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of USD/CHF for May 18, 2016

USDCHFH4.png

Overview:

  • The USD/CHF pair has broken resistance at the level of 0.9795 which acts as support now. Thus, the pair has already formed minor support at 0.9815. The strong support is seen at the level of 0.9795 because it represents the daily support 1. Equally important, the RSI and the moving average (100) are still calling for an uptrend. Therefore, the market indicates a bullish opportunity at the level of 0.9815 - 0.9795 on the H4 chart. So, we are looking for a strong bullish market as long as the trend is still above the level of 0.9795. Consequently, buy above the minor support of 0.9796 with the first target at 0.9877 and continue towards 0.9907. On the other hand, if the price closes below the major support (0.9795), then the best location for the stop loss order is seen below 0.9760. Hence, the price will fall into the bearish market in order to go further towards the strong support at 0.9735 to test it again. Furthermore, the level of 0.9651 will form a double bottom.
The material has been provided by InstaForex Company - www.instaforex.com

Global macro overview for 18/05/2016

Global macro overview for 18/05/2016:

The crude oil Inventories data is scheduled for the release today at 02:30pm GMT. The market participants expect another draw down in stockpiles (-3,500k vs. -3,410k prior) and the price of crude remains at a 6-month high ($48.11 at the time of writing). The main factor that influenced the recent boost in crude oil prices is the Canadian oil production disruption, as a massive wildfire in northern Alberta forced the evacuation of 90,000 people. Nevertheless, oil companies restarted oil production in the region of the wildfire, but on the limited basis. That is why oil inventories are being used harder than before.

Let's now take a look at the technical picture of Crude Oil in the H4 time frame and see how high the current rally can go. We can clearly see the recent breakout higher from the congestion area with a series of higher highs and higher lows. Moreover, the price is still trading above the 21,50 and 100 moving average, so this is a clear bull trend ongoing. The next resistance for bulls is at the level of 51.00, where the daily supply zone might put a lid on the rally.

analytics573c31f983762.jpg

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

Global macro overview for 18/05/2016

Global macro overview for 18/05/2016:

The most important event of the week has arrived as the market participants will have a chance to get an insight into the latest FOMC meeting minutes today at 06:00pm GMT. After the meeting on April 27, the Fed released a statement that downgraded some overseas risks, but admitted to a slowdown in the US economy. The strong employment and retail sales data show that the first quarter slowdown could be temporary. Putting the June FOMC back on the table is still premature but positive inflation growth may make the case for a summer interest rate hike more compelling. In conclusion, the current Fed Funds Futures probability of a June rate hike is lower than 4%, but any hawkish statements in the minutes might change this situation in a blink of an eye.

Let's now take a look at US dollar technical picture on daily time frame. The consecutive sequence of lower lows and lower high from the top at 100.50 might be terminated today if the dollar bulls break above the supply zone at the 94.90 - 95.21 levels. Otherwise, the bear camp will push the prices lower, affirming their control overt this market.

analytics573c2f12192ab.jpg

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

Technical analysis of EUR/JPY for May 18, 2016

General overview for 18/05/2016:

The corrective structure in wave (ii) green in form of the abc zig-zag pattern looks completed with a top at the level of 124.17. Currently, we should see the downward acceleration and intraday support level breakout. Nevertheless, please remember that 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, chances for a downward trend continuation are high.

Support/Resistance:

121.47 - Swing Low

121.56 - WS1

122.67 - Intraday Support

123.11 - Weekly Pivot

124.17 - Intraday Resistance

124.08 - WR1

124.55 - Wave (b) High

125.61 - WR2

Trading recommendations:

Day traders should consider selling 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.

analytics573c2c5b429dc.jpg

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

Technical analysis of USD/CAD for May 18, 2016

General overview for 18/05/2016:

The wave (ii) green might have been completed as a three-wave running flat structure, and now the market is developing an impulsive upward structure. If this assumption is correct, the next wave progression we should see would be an impulsive five-wave rally in sub-wave iii of the overall impulsive pattern. Any break out below the intraday support at the level of 1.2874 would invalidate this scenario and make wave (ii) green even more complex and time consuming.

Support/Resistance:

1.3160 - WR2

1.3065 - WR1

1.3014 - Technical Resistance

1.2918 - Weekly Pivot

1.2872 - Intraday Resistance

1.2821 - WS1

1.2757 - Technical Support

Trading recommendations:

Day traders should consider buying 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.

analytics573c2b1e71147.jpg

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

Technical analysis of Silver for May 18, 2016

Technical outlook and chart setups:

Silver is seen to be trading at $17.03 levels. It can produce intraday rallies but remain in control of bears till prices remain below $18.00 levels. The metal dropped lower towards $16.80 levels before pulling back towards $17.40 levels as seen here. Please note that the metal might extend its corrective rally towards $17.60 levels before reversing lower towards $16.00 levels at least. It is recommended to remain short and also look to add further at $17.60 levels, with risk above $18.00 levels. Immediate resistance is seen at $17.60 levels, while support is at $16.80 levels respectively.

Trading recommendations:

Remain short with stop above $18.00 levels, target is open.

Good luck!

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

Technical analysis of Gold for May 18, 2016

Technical outlook and chart setups:

Gold is seen to be setting up for a continued drop towards $1,237.00 and lower levels. The yellow metal is trading at $1,272.00 levels at the moment, and might test $1,282.00 levels again before finally reversing lower. Please note that Gold remains a candidate to sell on rallies till prices stay below $1,303.00 levels. It is hence recommended to remain short and also look to add further around $1,281.00 levels with risk at $1,295.00. Immediate resistance is seen at $1,295.00 levels, while support is at $1,256.00 levels respectively. Please note that a break below the support trend line would accelerate further downside.

Trading recommendations:

Remain short with stop at $1,295.00 levels.

Good luck!

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

Daily analysis of major pairs for May 18, 2016

EUR/USD: This pair moved sideways on Tuesday - an insignificant thing in the context of a downtrend. As it was mentioned last week, the outlook on this pair is bearish and further southward movement is expected this week. It could make the price go towards the support lines at 1.1250 and 1.1200.

1.png

USD/CHF: The USD/CHF pair was able to go further upward yesterday, though it was not significant. The price tested the resistance level at 0.9800, being above the support level at 0.9750. This resistance level should be overcome today as the price continues its gradual bullish movement.

2.png

GBP/USD: The Cable moved upwards yesterday, but that was not serious enough to result in a "buy" signal. In fact, it is better to stay away from this market right now because it is currently unattractive. It is expected that the price would either go above the distribution territory at 1.4550 or below the accumulation territory at 1.4350. This would happen today or tomorrow.

3.png

USD/JPY: The USD/JPY pair remains bullish, but in a precarious situation. 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 release of bearish outlook. Today or tomorrow the market actions will be determined.

4.png

EUR/JPY: This currency trading instrument is quite choppy and rough right now. It is better to stay away from the market until there is a strong movement in one direction. This week, a strong movement in one direction can be expected any moment.

5.png

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

Technical analysis of USD/JPY for May 18, 2016

USDJPYM30.png

USD/JPY is expected to trade in a higher range as the bias remains bullish.Overnight US stocks gave back the prior session's gains, with the Dow Jones Industrial Average falling 1.0% to 17529, the S&P 500 losing 0.9% to 2047, and the Nasdaq Composite down 1.3% to 4715. Investors were discouraged by stronger-than-expected CPI growth in the US (+0.4% month-on-month in April, the biggest gain since February 2013, vs +0.3% expected and +0.1% in March), which boosted expectations for the Federal Reserve to keep raising interest rates.

Consumer staples and utilities performed the worst. Home Depot (HD) dropped 2.5% despite the fact that the company raised its sales and profit guidance for the year after better-than-expected Q1 earnings.

Nymex crude oil rose another 1.2% to $48.31 a barrel, gold gained 0.5% to $1,280 an ounce, and the benchmark 10-year Treasury yield edged up to 1.759% from 1.752% in the previous session.

Upon the release of the US inflation data, the US dollar stabilized after weakening against other major currencies earlier in the session. EUR/USD edged down 5 pips to 1.1311, while GBP/USD rose 0.5% to 1.4462 (day-high at 1.4524). USD/CHF gained another 0.3% to 0.9801. Meanwhile, USD/JPY climbed 0.1% to 109.12 (day-high at 109.64).

The Australian and New Zealand dollars pared some gains they had made against the greenback at the session's beginning, with AUD/USD rising 0.5% to 0.7322 (day-high at 0.7366) and NZD/USD increasing 0.3% to 0.6805 (day-high at 0.6842).

The pair rose to 109.64 yesterday before entering a consolidation. Although it is currently trading below both the 20- and 50-period moving averages and the intraday relative strength index has broken below the neutrality level of 50, indicating the possibility of a continued consolidation, the level at 108.65 still holds as the key support. In case the pair emerges on the upside upon completing the consolidation and leaves the key support intact, it should return to the immediate resistance at 109.65 and in extension re-test 110.50.

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 109.65 and the second one, at 110.50. In the alternative scenario, short positions are recommended with the first target at 108.20 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 107.40. The pivot point is at 108.65.

Resistance levels: 109.65, 110.50, 110.95

Support levels: 108.20, 107.40, 107

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

Technical analysis of USDX for May 18, 2016

The Dollar index continues to stay supported as only shallow pullbacks are seen when the bullish trend pauses. There is no deep correction yet, and this is another strength signal for the Dollar.

analytics573c0c4db65c5.jpg

Black line - support

The Dollar index is holding above the kijun-sen which for now is the most important short-term support indicator. The price is also above the black trend line support and above the Kumo on the 4 hour chart. We continue to see higher highs and higher lows confirming the bullish trend.

analytics573c0c8cbea82.jpg

Support is at 94.30 and next at 93.60. Resistance is at 95.20 and next at 96.30. The weekly reversal pattern we noted 2 weeks ago remains valid and supported. The potential remains quite big for the upside in the Dollar index according to the stochastic oscillator. The upper cloud boundary at 96.50 is the minimum target.The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of Gold for May 18, 2016

Gold is trading inside a triangle pattern while now it is testing the lower boundary. If support fails to hold, then we should expect the price to test the important short-term $1,260 support. If this support fails, my target is $1,237 and the next one, below $1,200. Bulls need to retake $1,290 in order to have a chance at $1,325-50.

analytics573c0b6296a34.jpg

Black line - resistance

Green line - support

Yellow area - reversal tops

Gold is exiting the Kumo on the 4-hour chart after being rejected at the black trend line resistance. The oscillator has already topped and given bearish divergence signs. I expect to see more selling in Gold and a push towards at least $1,237.

analytics573c0bbc927a6.jpg

On the Daily chart, gold is trading below the tenkan-sen but still above the kijun-sen and the Kumo. This sideways consolidation is expected to break lower. $1.237 is the daily Kumo support. Only a break above $1,290 will cancel this bearish view.The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of USD/CHF for May 18, 2016

USDCHFM30.png

USD/CHF is expected to trade in a higher range and post some new gains. The pair stands firmly above its key horizontal support at 0.9770, which has been tested for at least 3 times. Both the 20-period and 50-period moving averages are turning up, confirming a positive outlook. Last but not least, the relative strength index is bullish above its neutrality area at 50. In these perspectives, as long as 0.9770 holds on the downside, further advance seems to be in the cards to 0.9890 and 0.9945 in extension.

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 0.9890 and the second one, at 0.9945. In the alternative scenario, short positions are recommended with the first target at 0.9745 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 0.970. The pivot point is at 0.9770.

Resistance levels: 0.9890, 0.9945, 0.9985

Support levels: 0.9745, 0.97, 0.9660

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

Technical analysis of NZD/USD for May 18, 2016

NZDUSDM30.png

NZD/USD is expected to consolidate and then rise. The pair failed to break above its nearest resistance at 0.6845 yesterday and is now posting some consolidations. Even though a continuation of the consolidation cannot be ruled out at the current stage, its extent should be limited by 0.6760, which acts as a strong support and is expected to limit any downside room. In this case, above 0.6760, look for a new rise to 0.6815 and 0.6840 after a pause.

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 0.6815 and the second one, at 0.6840. In the alternative scenario, short positions are recommended with the first target at 0.6730 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 0.6700. The pivot point is at 0.6760.

Resistance levels: 0.6815, 0.6850, 0.6890

Support levels: 0.6730, 0.6700, 0.6665

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

Technical analysis of GBP/JPY for May 18, 2016

GBPJPYM30.png

GBP/JPY is expected to trade in a lower range as the bias remains bearish. Currently trading at 157.70, the pair has posted a pullback but remains below its resistance at 158.35. Even though a continuation of the consolidation cannot be ruled out, its extent should be limited. The bias remains bearish, and a new down leg is expected with the next target set at 156.70. However, if the pair continues its consolidation and breaks below the horizontal support at 156.70, it would open the way to further weakness toward 156.30.

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 156.70. A break of this target will move the pair further downwards to 156.30. The pivot point stands at 158.35. 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 159.10 and the second target at 159.50.

Resistance levels: 159.10, 159.50, 160.35

Support levels: 156.70, 156.30, 155.35

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

Elliott wave analysis of EUR/NZD for May 18 - 2016

analytics573bfbfe43ae3.png

Wave summary:

With a low at 1.6538, we are now looking for a break above the minor resistance line near 1.6675 to confirm that the correction from 1.6931 is over and a new impulsive rally towards 1.7254 is developing.

In the short term, we expect that minor support at 1.6586 and, more importantly, support at 1.6538 will protect the downside for a break above 1.6675.

Trading recommendation:

We are long in EUR from 1.6550 with stop placed at 1.6475. If you are not long in EUR yet, then buy a break above 1.6675 and use the same stop at 1.6475.

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

Elliott wave analysis of EUR/JPY for May 18 - 2016

analytics573bfababeb52.png

Wave summary:

With a low at 122.93 or exactly the 78.6% correction of red wave [i], we expect red wave [ii] will be in place for the next impulsive rally above minor resistance at 123.55 and, more importantly, above resistance at 124.18 confirming a continuation higher towards 125.78 and above.

The low at 122.93 should ideally protect the downside, but at no point can a break below 122.60 be allowed as that would force a recount of the correction in wave [ii].

Trading recommendation:

Stay long with stop placed at 122.90. If you are not long in EUR yet, then buy a break above 123.55 and use the same stop at 122.90.

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

Technical analysis of EUR/USD for May 18, 2016

1_EURUSD.jpg

When the European market opens, some economic news will be released such as the German 10-y Bond Auction, Final Core CPI y/y, and Final CPI y/y. The US will release economic data too such as Crude Oil Inventories. So amid the reports, EUR/USD will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Breakout BUY Level: 1.1369.

Strong Resistance: 1.1362.

Original Resistance: 1.1351.

Inner Sell Area: 1.1340.

Target Inner Area: 1.1312.

Inner Buy Area: 1.1284.

Original Support: 1.1273.

Strong Support: 1.1262.

Breakout SELL Level: 1.1255.

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 18, 2016

2_USDJPY.jpg

In Asia, Japan will release the Prelim GDP Price Index y/y and Prelim GDP q/q. The US will release some economic data such as Crude Oil Inventories. So there is a probability the USD/JPY will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Resistance. 3: 109.47.

Resistance. 2: 109.26.

Resistance. 1: 109.04.

Support. 1: 108.78.

Support. 2: 108.57.

Support. 3: 108.35.

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 18, 2016

USDX moved into a sideways tone on the H1 chart, trapped in the range established between the 94.61 and 94.35 levels. We should expect an advance toward the 94.81 level if bulls continue to reinforce the overall structure of this Index. Another scenario is still calling for a lower breakout at the 94.06 level. The MACD indicator is entering positive territory.

USDXH1.png

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.

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

Daily analysis of GBP/USD for May 18, 2016

The pair had a bullish session yesterday, as we can see a gain's consolidation above the 200 SMA on the H1 chart, which hovers around the support zone of 1.4430. A resistance can be found at the 1.4549 level, and if the Cable succeeds in breaking it to the upside, then we should see the bulls' force pushing it toward the 1.4622 level. However, the MACD indicator is still supporting a bearish outlook.

GBPUSDH1.png

H1 chart's resistance levels: 1.4549 / 1.4622

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 1.4545.

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