EUR/NZD analysis for May 19, 2016

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Recently, EUR/NZD has been moving downwards. According to the 1H time frame, I found a downward channel. The price broke the upward diagonal and I am expecting a downward continuation. I placed Fibonacci expansion to find a potential target level. I got Fibonacci expansion 161.8% at the price of 1.6380. My advice is to watch for selling opportunities on rallies. Take profit level is set at the price of 1.6380. The level of 1.6590 seems like a good level for selling positions.

Fibonacci Pivot Points:

Resistance levels:

R1: 1.6688

R2: 1.6720

R3: 1.6765

Support levels:

S1: 1.6590

S2: 1.6560

S3: 1.6510

Trading recommendation for today: Watch for selling opportunities on rallies.

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Technical analysis of NZD/USD for May 19, 2016

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Overview:

  • The NZD/USD pair continues to move downwards from the spot of 0.6814 and 0.6754. Yesterday, the pair dropped from the level of 0.6814 to the bottom around 0.6720. But the pair has rebounded from the bottom of 0.6720 to close at 0.6754. Today, the first support level is seen at the levels of 0.6754 and 0.6720, the price is moving in a bearish channel now. Furthermore, the price has been set below the strong resistance at the level of 0.6754, which coincides with the 38.2% Fibonacci retracement level. This resistance has been rejected several times confirming the veracity of a downtrend. Additionally, the RSI starts signaling a downward trend. As a result, if the NZD/USD pair is able to break out the first support at 0.6754, the market will decline further to 0.6715 in order to test the support. Consequently, the market is likely to show signs of a bearish trend. So, it will be good to sell below the level of 0.6754 with the first target at 0.6715 and further to 0.6687. On the other hand, stop loss is to be placed above the level of 0.6842.

Daily key levels:

  • Major resistance: 0.6842
  • Minor resistance: 0.6794
  • Intraday pivot point: 0.6754
  • Minor support: 0.6715
  • Major support: 0.6687
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Gold analysis for May 19 , 2016

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Since our previous analysis, gold has been downwards. As I expected, the price tested the level of $1,252.27 in a high volume. My downward target at the price of $1,256.00 has been met. A lower diagonal of the channel is on the test. We may see potential bullish correction but due to strong downward pressure at the moment, buying looks risky. The second downward target level is set at the price of $1,238.00.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,272.35

R2: 1,277.00

R3: 1,284.50

Support levels:

S1: 1,257.40

S2: 1,252.75

S3: 1,245.30

Trading recommendations for today: Downward pressure on the market. Watch for selling opportunities on pullbacks.

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Technical analysis of USD/CHF for May 19, 2016

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Overview:

  • The USD/CHF pair broke the resistance which turned into strong support at the level of 0.9771 yesterday. The level of 0.9771 coincides with the ratio of 50% Fibonacci. It is expected to act as a major support on the daily chart today. Consequently, The daily strong support is seen at 0.9771 and 0.9846. Moreover, the RSI starts signaling an upward trend, and the trend is still showing strength above the moving average (100). Hence, the market is indicating a bullish opportunity above the area of 0.9846. So, the market is likely to show signs of a bullish trend around 0.9771 and 0.9846. In other words, buy orders are recommended above the ratio of 50% Fibonacci (0.9771) or 0.9846 with the first target at the level of 0.9952 in order to test a double top in the same time frame. If the pair succeeds to pass through the level of 0.9952, the market will probably continue towards the next objective at 1.0018.
  • However, it should be notcied that the support is seen at 0.9771. Thus, if a breakout happens at the support level of 0.9771, then this scenario may be invalidated.
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USD/CAD intraday technical levels and trading recommendations for May 19, 2016

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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 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 1.3300 until a bearish breakout took place on April 11.

Shortly after the quick bearish decline took place below 1.3000, signs of bullish recovery were expressed around 1.2460.

The current bullish pullback towards 1.3000 (61.8% Fibonacci level) may offer a valid signal to sell the USD/CAD pair if enough bearish rejection is expressed.

On the other hand, bullish persistence above 1.3000 (61.8% Fibonacci level) opens the way towards 1.3300 (50% Fibonacci level) where price action should be watched.

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Technical analysis of EUR/NZD for May 19, 2016

EUR/NZD is clearly trending upwards producing higher highs and higher lows. The pair managed to break above the 200 Moving Average and remains above it.

While moving higher, EUR/NZD broke above the ascending channel. Fibonacci applied to the channel breakout point shows that the pair broke above R2 (1.6820), but failed to test the next resistance level of 1.6965 (R3). Currently the price remains just above the 1.6590 support level (S1) after multiple failed attempts to break below it.

Consider buying EUR/NZD while it is near S1, targeting R3 resistance. The stop loss should be just below S2 (1.6450).

Support: 1.6590, 1.6450

Resistance: 1.6710, 1.6820, 1.6965

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Technical analysis of NZD/CHF for May 19, 2016

NZD/CHF found a top near 1.6800 after which it started to move lower and lower. The price broke first below 0.6730 and then below the 0.6670 support levels.

Fibonacci applied to the first corrective wave after the 0.6730 support shows that the pair broke below the S2 (0.6575) but failed to test next resistance level at S3 (0.6520). Currently the pair trades right at the 0.6670 resistance (R1) which is still holding after several attempts to break above.

Consider selling NZD/CHF while it trades near R1, targeting S3 (0.6520). The stop loss should be just above R1 (0.6730).

Support:0.6630, 0.6575, 0.6520

Resistance: 0.6670, 0.6730

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NZD/USD intraday technical levels and trading recommendations for May 19, 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 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 bullish rejection was expected to be applied.

This week, bullish persistence above 0.6750 and 0.6850 is mandatory to maintain enough bullish momentum in the market.

On the other hand, a bearish engulfing daily candlestick was expressed by the end of yesterday. Hence, a quick bearish decline initially towards 0.6670 could be expected.

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Intraday technical levels and trading recommendations for GBP/USD for May 19, 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.

On May 3, 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).

As long as the GBP/USD pair keeps trading below 1.4680, the next bearish destinations for the pair will be located at 1.4300, 1.4220 and 1.4050.

On the other hand, a weekly closure above 1.4680 allows a quick bullish movement to occur towards 1.4950 initially.

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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, 1.4220 and 1.4050.

However, On May 16, lack of enough bearish momentum below 1.4330-1.4350 resulted in the current bullish breakthrough above 1.4470.

Please note that the price zone of 1.4700-1.4750 corresponds to 61.8% Fibonacci level and the depicted downtrend line. Hence, significant bearish rejection and a valid SELL entry can be offered around these price levels.

That is why, the GBP/USD pair may become trapped between the price levels of 1.4480 and 1.4700 (61.8% Fibonacci level) until a breakout occurs.

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Intraday technical levels and trading recommendations for EUR/USD for May 19, 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 was 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 constituted 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. S/L should be placed below 1.0950.

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Global macro overview for 19/05/2015

Global macro overview for 19/05/2016:

The employment data from Australia has been released overnight, and, according to the Australian Bureau of Statistics, the unemployment rate remained unchanged at the level of 5.7% (lower than the 5.8% expected figure). Moreover, a net 10,800 jobs were added to the economy last month, missing the expectations of a 12,000 net increase and compared with a revised 25,700 in March. Other negative news is that the participation rate has slightly decreased to 64.8% from 64.9% a month ago. In conclusion, employment continues to increase, albeit at a somehow slower-than-anticipated pace. This is not the biggest problem for the RBA, the biggest problem is very low inflation that keeps around 1.5%. This is why the next interest rate cut might be just around the corner.

Let's now take a look at the AUD/USD technical picture on the daily time frame. The market is trading at 61% Fibo at the level of 0.7212, below the support at 0.7259. This is the line in sand for the bulls to take back the control over the market, otherwise the bears would push the price lower towards the level of 0.7110.

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Technical analysis of USDX for May 19, 2016

The Dollar index has reached my 95.20 target and resistance and has paused its rise. After the FOMC minutes announced yesterday, hopes for a June hike in US rates have pushed the Dollar higher.

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The price is above the Kumo and with a recent cross of the kijun-sen (yellow indicator) by the tenkan-sen (red line indicator), we have a confirmation of this bullish signal as the prices continue to make higher highs and higher lows. Support is at 94.90-94.75. If broken, the cloud will be tested.

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The weekly bullish reversal pattern was so strong that the price is heading directly to the upper cloud boundary with no significant pullback. The trend is bullish for the short term, but for the longer term the price remains trapped inside the sideways range. The stochastic oscillator implies that a new upward move has started, capable to push the index to new highs.The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of Gold for May 19, 2016

Gold broke below support and out of the triangle pattern yesterday as we expected. The bearish signals were there. Gold is in a bearish trend and could see the $1,237 support being tested. Important resistance is the $1,275-80 area now, and as long as the price is below it, the trend will remain bearish.

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Black line - resistance

Green line - support

Gold has broken below the green trendline support and below the Kumo (cloud). The trend is bearish. I expect the price to pause the decline for a few hours and trade sideways before resuming the move downwards toward $1,237-40.

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On the daily chart, Gold has closed even below the kijun-sen (yellow line indicator). This implies that the upper cloud boundary at the $1,240 area will be tested shortly. I remain bearish.The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of USD/JPY for May 19, 2016

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USD/JPY is expected to trade with a bullish bias. Overnight US stock indices pared gains to end little changed after the latest minutes of the US Federal Reserve's monetary policy meeting indicated that interest rates could still be raised in June. The Dow Jones Industrial Average and the S&P 500 were broadly flat at 17526 and 2047 respectively, while the Nasdaq Composite was up 0.5% to 4739. Financial shares were the best performers, while utilities came under pressure.

Nymex crude oil declined 0.3% to $48.19 a barrel. Gold dropped 1.7% to $1,258 an ounce, and silver plunged 2.2% to $16.85 an ounce.

US government bonds were sold off after the release of the hawkish Fed minutes, with the benchmark 10-year Treasury yield rising to 1.882% from 1.759% in the previous session. At the same time, the US dollar charged higher, with the Wall Street Journal Dollar Index gaining 0.7% to 87.44.

EUR/USD fell 0.9% to 1.1215, USD/CHF rose 0.8% to a two-month high of 0.9876, while USD/JPY surged 1.0% to 110.18.

Commodities-linked currencies weakened further, with USD/CAD increasing 1.0% to 1.3032, AUD/USD sinking 1.3% to 0.7228, and NZD/USD losing 1.0% to 0.6738.

On the other hand, the British pound was boosted by steady March jobs data in the UK (the jobless rate unchanged at 5.1%) and a poll (Ipsos-Mori) that showed a strong lead by the "In" camp over the "Out" one on Britain's referendum on the European Union's membership. GBP/USD managed to gain 0.9% to 1.4595.

The pair did emerge on the upside upon completing a consolidation yesterday. Having broken above both resistances at 109.20 and 109.65, it reached a high of 110.25 while forming a bullish trading channel. Currently, it is supported by the ascending 20-period (30-minute chart) moving average, which stands above the 50-period one. The immediate resistance at 110.50 is in sight, and the next one would be found at 111.00 (a key support seen on April 27).

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 110.50 and the second one, at 111. In the alternative scenario, short positions are recommended with the first target at 108.65 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 108.20. The pivot point is at 108.65.

Resistance levels: 110.50, 111, 11.45

Support levels: 108.65, 108.20, 107.40

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Global macro overview for 19/05/2016

Global macro overview for 19/05/2016:

The FOMC meeting minutes from last month were released yesterday afternoon. The overall tone of the minutes was more hawkish than many market participants had expected, and the June rate hike is back on the table if economic growth data continues to progress as predicted. The improvement in the employment market and inflation are the key elements that grab the policymakers' attention as a precursor to a potential rate hike. During the April meeting, the main concerns were slow US economic growth and a potential UK exit from the eurozone. Nevertheless, these risks were counterbalanced by the improving US job market and a positive attitude towards the inflation targets this year. There is a noticeable change in the CME FedWatch Tool before and after the minutes' release. Just before the release, the Fed Fund Futures were pricing in a 19% chance of a possible rate hike at the June meeting, which was way more than the usual 4% level that lasted for weeks. Just after the minutes' release, the probability increased to 33% and currently stays there. In conclusion, the possible Fed interest rate hike to 0.75% is back on the table.

The market's reaction to the hawkish Fed minutes resulted in an immediate surge for the US Dollar, so let's take a look at the US Dollar index technical picture on the daily time frame. We can see that the important supply zone between the levels of 94.90 - 95.21 has been violated and now the market is trading above this zone. This means the bulls are on a good way to make a potential higher high, which will be the first indication of a bullish trend resumption.

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Elliott wave analysis of EUR/NZD for May 19 - 2016

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Wave summary:

With the break above minor resistance at 1.5582, the first minor signal of a bottom being in place at 1.6538 has been given. We will now be looking for a clear break above minor resistance at 1.6704 as the next trigger for a rally to 1.6931 and higher to 1.7254 as the next upside targets. However, in the longer term, we continue to expect much higher levels.

Short-term support is seen at 1.6581 with back-up support at 1.6538.

Trading recommendation:

We are long in EUR from 1.6550 with stop placed at 1.6535. If you are not long in EUR yet, then buy a break above 1.6704 and use the same stop at 1.6535.

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Technical analysis of USD/CHF for May 19, 2016

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USD/CHF is expected to trade in a higher range as the pair stands firmly above its horizontal support at 0.9805 and is expected to challenge its nearest resistance at 0.9890 in sight. Besides, the price is above its 20-period and 50-period moving averages, which act as support. Meanwhile, the relative strength index is bullish above its neutrality area at 50, and calls for further upside. In this case, if the price moves above 0.9805, an advance to 0.9920 and 0.9945 is likely 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 0.9920 and the second one, at 0.9945. In the alternative scenario, short positions are recommended with the first target at 0.9775 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 0.9750. The pivot point is at 0.9805.

Resistance levels: 0.9920, 0.9945, 0.9985

Support levels: 0.9775, 0.9750, 0.97

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Elliott wave analysis of EUR/JPY for May 19 - 2016

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Wave summary:

It should be just a matter of time before a new strong rally to 124.65 and higher towards 126.47 is seen. We still need a break above the important resistance at 126.47 to confirm that a long-term corrective bottom is in place at 121.46, but once this resistance is cleared, and we do believe it will be, then a rally back to 141.06 will be the first major upside target.

Short-term support is seen at 123.26 with back-up support seen at 122.93.

Trading recommendation:

We are long in EUR from 123.10. We will move our stop to break-even. If you are not long in EUR yet, then buy EUR upon a break above 123.91 and use the same stop at 123.10.

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Technical analysis of NZD/USD for May 19, 2016

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NZD/USD is under pressure. The pair has struck against its key resistance at 0.6775 and is turning down now. Both the 20-period and 50-period moving averages are heading downward, which should call for a new pullback. Besides, the relative strength index lacks upward momentum. Hence, as long as 0.6775 holds on the upside, look for a return to 0.6700 and 0.6680 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 0.67. A break of this target will move the pair further downwards to 0.6680. The pivot point stands at 0.6775. 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 0.6815 and the second target at 0.6840.

Resistance levels: 0.6815, 0.6840, 0.6890

Support levels: 0.6700, 0.6680, 0.6625

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Technical analysis of GBP/JPY for May 19, 2016

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GBP/JPY is expected to trade in a higher range as the bias remains bullish. Currently trading at 160.65, the pair stands above its support at 159, while the 20-period moving average stays above the 50-period one. Even though a continuation of the consolidation cannot be ruled out, its extent should be limited. The bias remains bullish, and a further bounce is expected with the next targets set at 161.65 and 162.70.

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 161.65 and the second one, at 162.70. In the alternative scenario, short positions are recommended with the first target at 158.30 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 157.25. The pivot point is at 159.

Resistance levels: 161.65, 162.70, 163.50

Support levels: 158.30, 157.25, 156.70

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Technical analysis of USD/CAD for May 19, 2016

General overview for 19/05/2016:

The wave (iii) impulsive progression is developing as anticipated as the wave (i) top has been violated and now it will act as support for the price. The price is trading inside of a bullish zone, and the next target is at the level of 1.3160.

Support/Resistance:

1.3161 - WR2

1.3065 - WR1

1.3014 - Intraday Support

1.2918 - Weekly Pivot

1.2821 - WS1

1.2757 - Technical Support

Trading recommendations:

Day traders should consider buying at 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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Technical analysis of EUR/JPY for May 19, 2016

General overview for 19/05/2016:

The first two sub-waves in the developing wave (iii) are now completed, and if the count is correct, we should see a downward acceleration and an 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, the 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.

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Technical analysis of EUR/JPY for May 19, 2016

Technical outlook and chart setups:

The EUR/JPY pair is seen to be trading at 123.45 levels at this moment, after reversing from 123.90 levels yesterday. The pair should remain in control of bears till prices stay below 124.60 levels going forward. On the flip side though, a push above 124.50 would open doors for a test of 126.50/60 levels. Please note that the pair has bounced off fibonacci 0.618 resistance as depicted here, and hence a high probability remains for a drop lower below 121.40, going forward. It is recommended to remain short now, with risk above 124.50 levels. Immediate resistance is seen at 124.50/60 levels, while support is seen through 122.00 levels respectively.

Trading recommendations:

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

Good luck!

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Technical analysis of Silver for May 19, 2016

Technical outlook and chart setups:

Silver dropped lower towards $16.70 levels yesterday before pulling back higher. The metal is seen to be trading at $16.81 levels at the moment, looking to rally further at least towards $17.60 levels before reversing lower. Please note that the probability still remains that the metal hits fresh highs at $18.40 levels, if prices stay above $16.60/70 levels. If not a new high, at least a countertrend rally is expected towards $17.60 levels going forward. It is hence recommended to remain cautiously bullish or remain flat for now looking to sell at higher levels. Immediate support is seen through $16.60 levels, while resistance is at $17.60 levels respectively.

Technical recommendations:

Remain flat for now or cautiously bullish with stop at $16.50 levels.

Good luck!

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Technical analysis of Gold for May 19, 2016

Technical outlook and chart setups:

Gold has dropped lower and is seen to be trading at $1,258.00 levels, looking to pull back higher for now before turning bearish again. Please note that the yellow metal has again found support around fibonacci 0.618 levels of the rally between $1,227.00 and $1,303.00 levels respectively. Moreover, the metal is seen to be above the trendline support and past resistance turned support area around $1,255.00 levels. A bullish reversal here would warrant a rally that might take us above $1,303.00 levels. It is recommended to book profits on short positions taken earlier and remain flat for now. Immediate support is seen at $1,256.00 levels while resistance is at $1,280.00 levels respectively. Only a break below the trend line would be encouraging to bears.

Trading recommendations:

Remain flat for now.

Good luck!

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Technical analysis of EUR/USD for May 19, 2016

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When the European market opens, some economic news will be released such as the ECB Monetary Policy Meeting Accounts, Spanish 10-y Bond Auction, French 10-y Bond Auction, and Current Account. The US will release economic data too such as the Natural Gas Storage, CB Leading Index m/m, Unemployment Claims, and Philly Fed Manufacturing Index. So amid the reports, EUR/USD will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Breakout BUY Level: 1.1274.

Strong Resistance: 1.1268.

Original Resistance: 1.1257.

Inner Sell Area: 1.1246.

Target Inner Area: 1.1220.

Inner Buy Area: 1.1194.

Original Support: 1.1183.

Strong Support: 1.1172.

Breakout SELL Level: 1.1166.

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 19, 2016

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In Asia, Japan will release the All Industries Activity m/m and Core Machinery Orders m/m, and the US will release some economic data such as the Natural Gas Storage, CB Leading Index m/m, Unemployment Claims, and Philly Fed 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: 110.72.

Resistance. 2: 110.50.

Resistance. 1: 110.29.

Support. 1: 110.02.

Support. 2: 109.81.

Support. 3: 109.59.

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 19, 2016

On the H1 chart, USDX has been trading into a bullish bias, after it received with a good shape the news from the FOMC minutes, which showed that a rate hike in June of this year is highly possible. The nearest resistance is located at the 95.22 level, where a breakout should happen to extend the rally toward the 95.68 level.

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H1 chart's resistance levels: 95.22 / 95.68

H1 chart's support levels: 94.89 / 94.61

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 95.22, take profit is at 95.68, and stop loss is at 94.76.

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

Daily analysis of GBP/USD for May 19, 2016

GBP/USD had a strong bullish momentum during yesterday's session, as the pair reacted in a positive way to the good indicators released in the UK. Currently, it's facing off the resistance level of 1.4622, where a pullback can happen towards the 1.4549 level, and a more deeper decline can happen to retest Wednesday's lows, but the bullish bias stays intact.

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H1 chart's resistance levels: 1.4622 / 1.4686

H1 chart's support levels: 1.4549 / 1.4430

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 1.4549, take profit is at 1.4430 and stop loss is at 1.4670.

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

Daily analysis of major pairs for May 19, 2016

EUR/USD: This currency trading instrument went downwards on Wednesday – just in the opposite direction to the USD/CHF. The EMA 11 is below the EMA 56, while the RSI is below the level 50. Further bearish movement is expected as the price targets the support lines at 1.1200 and 1.1150.

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USD/CHF: As it was forecasted at the beginning of this week, the USD/CHF was able to move upwards. The price has gone up by 120 pips; now above the support level at 0.9850, targeting the resistance level at 0.9900. Since there is a Bullish Confirmation Pattern on the chart, it is logical to conclude that the bullish effort would hold out throughout this week.

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GBP/USD: The Cable broke upwards seriously on Wednesday, and this is significant enough to result in a "buy" signal in the market. The EMA 11 is now above the EMA 56. The RSI period 14 is above the level 50. This Bullish Confirmation Pattern might enable the Cable to trade higher and higher. Some fundamental figures are expected today and they would have an impact on the market.

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USD/JPY: Here, there has been a movement to the upside. The price has gone above the demand level at 110.00, which is a condition required for a bullish signal. This new bullish signal offers an opportunity to ride the bullish wave further north, since the bulls have dominated over the bears.

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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 is expected any moment on the EUR/JPY, which could be today or tomorrow.

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Daily analysis of GOLD for May 18, 2016

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Overview

The gold price approached from testing the main bullish trend line located at $1,267.70. The price needs to settle above this level for the expected bullish trend continuation for today. A breach of the mentioned resistance will extend the bullish wave to $1,344.85 directly. A break of the $1,267.70 level will push the price to test the $1,243.17 level that represents the 23.6% Fibonacci for the bullish wave shown on the chart. Thus the break of this level will stop the positive overview and put the price under the correctional bearish pressure again.

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 18, 2016

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Overview

The silver price trades negatively turning back to test the critical support at 17.00. A break of this level is followed by a breach of 16.90, which is a negative factor that will complete the head and shoulders pattern formation shown on the above chart. Then the price could return to decline targeting 16.37 and 15.75 levels. Until now, we expect the bullish trend for the rest of the day unless witnessing a clear break of mentioned support levels. The main awaited target is located at 17.75.

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

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EUR/NZD analysis for May 18, 2016

Recently, EUR/NZD has been moving sideways at the price of 1.6655. According to the 4H time frame, I found that strength came in at the price of 1.6548. A bearish bar is in an ultra-high volume, but closed in the middle. That is a sign of strength. Watch for buying opportunities on dips. Upward targets are set at the prices of 1.6750 and 1.6920. Anyway, if the price breaks the level of 1.6548, we may see downward movements.

Fibonacci Pivot Points:

Resistance levels:

R1: 1.6675

R2: 1.6710

R3: 1.6765

Support levels:

S1: 1.6560

S2: 1.6525

S3: 1.6470

Trading recommendation for today: Watch for buying opportunities on dips.

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