USD/CAD intraday technical levels and trading recommendations for May 24, 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) was expected to offer a valid signal to sell the USD/CAD pair. However, lack of significant bearish rejection was manifested during last week's consolidations.

Bullish persistence above 1.3000 (61.8% Fibonacci level) opens the way towards 1.3300 (50% Fibonacci level) where price action should be watched for a better SELL position.

On the other hand, bearish persistence below 1.3000-1.2970 (61.8% Fibonacci level) will be needed to maintain enough bearish momentum in the market.

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Intraday technical levels and trading recommendations for GBP/USD for May 24, 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.

Bearish persistence below 1.4475 is needed to maintain enough bearish momentum.

On the other hand, a weekly candlestick 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.

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.

Please note that 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 (most likely a bearish one).

Daily persistence below 1.4470 is needed to enhance further bearish decline towards 1.4350 and 1.4220.

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Intraday technical levels and trading recommendations for EUR/USD for May 24, 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.

Daily persistence below the 1.1400 level was needed to ensure enough bearish momentum towards the 1.1200 level.

A quick bearish decline towards 1.1100 and 1.1000 levels should be expected as long as the EUR/USD pair keeps trading below 1.1400 and 1.1180 (recently broken demand level).

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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EUR/NZD analysis for May 24, 2016

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Recently, EUR/NZD has been moving upwards. As I expected, the pair tested the level of 1.6709 in a high volume. Anyway, I found supply in a high volume today and it seems like that sellers are in control. Be careful when buying and watch for selling opportunities. I placed Fibonacci retracement and got Fibonacci retracement 61.8% at the price of 1.6560 (first downward target). The intraday trend is neutral.

Fibonacci Pivot Points:

Resistance levels:

R1: 1.6600

R2: 1.6631

R3: 1.6675

Support levels:

S1: 1.6505

S2: 1.6475

S3: 1.6430

Trading recommendation for today: Be careful when buying and watch for selling opportunities.

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Technical analysis of NZD/USD for May 24, 2016

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Overview:

  • The NZD/USD pair continues to move around the spot of 0.6711. Today, the first support level is currently seen at 0.6711. The NZD/USD pair movement was debatable as it took place in a narrow sideways channel for a while. Furthermore, the price has been set above the strong support at the level of 0.6711, which coincides with the 11.8% Fibonacci retracement level. This support has been rejected three times confirming the veracity of an uptrend. According to the previous events, we expect the NZD/USD pair to trade between 0.6711 and 0.6817. So, the support stands at 0.6711, while daily resistance is found at 0.6817. Therefore, the market is likely to show signs of a bullish trend around the spot of 0.6711. In other words, buy orders are recommended above the spot of 0.6711 with the first target at the level of 0.6759; and continue towards 0.6817. However, if the NZD/USD pair fails to break through the resistance level of 0.6817 today, the market will decline further to 0.6711 in order to retest it again.

Observations:

  • We expect a range between the levels of 0.6817 and 0.6817 today.
  • Pivot point is seen at 0.6759.
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Gold analysis for May 24 , 2016

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Since our previous analysis, gold has been trading downward. The price tested the level of $1,240.87 in a high volume. According to the 15M time frame, I found strong downward momentum and I found no demand bars. Buying Gold at this stage looks very risky. The support at the price of $1,243.00 has been taken out and I expect downward continuation. Targets are set at the price of $1,237.50 and $1,231.60.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,251.25

R2: 1,252.20

R3: 1,253.80

Support levels:

S1: 1,248.10

S2: 1,247.00

S3: 1,245.60

Trading recommendations for today: Strong downward momentum on the market. Be careful when buying and watch for selling opportunities on the pullbacks.

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Technical analysis of USD/CHF for May 24, 2016

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Overview:

  • As expected the USD/CHF pair continues to move upwards from the level of 0.9866. Yesterday, the pair rose from the level of 0.9866 to the top around 0.9922. Today, the first resistance level is seen at 0.9967 followed by 1.0014, while daily support 1 is seen at 0.9866. Currently, the price is in a bullish channel. This is confirmed by the RSI indicator signaling that we are still in a bullish trending market. As the price is still above the moving average (100), immediate support is seen at 0.9866. Consequently, the first support is set at the level of 0.9866. So, the market is likely to show signs of a bullish trend around the spot of 0.9866. In other words, buy orders are recommended above the 0.9866 level with the first target at the level of 0.9967. Furthermore, if the trend is able to breakout through the first resistance level of 0.9967. We should see the pair climbing towards the double top (1.0014) to test it. Also, it should be noted that the price spot of 0.9967 - 1.0014 remains a significant resistance zone. However, it would also be wise to consider where to place a stop loss; this should be set below the second support of 0.9796.
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Global macro overview for 24/05/2015

Global macro overview for 24/05/2016:

Bank of England Governor Mark Carney recent speech regarding the Brexit scenario turned out to be positive for the pound in the short term. As Carney said, all MPCs and FPCs share the view on potential impact of Brexit and it is still the largest domestic risk for the British economy. This is why, the campaign to keep Britain in the European Union is gaining strength as the latest poll revealed that older voters are now switching sides. Nevertheless, the national referendum is due on 23rd of June and all investors are looking forward for the outcome as uncertainty is growing.

Let's now take a look at the GBP/USD technical picture in 4H time frame. The recent rally has been capped almost at the 78% Fibo at the level of 1.4674 and from now on this level is labeled as a lower high. Bulls and bears are still not sure what direction should this pair move, so the current technical picture is a classic range-bound market. The most important resistance is at the level of 1.4770 and the most important support at the level of 1.4330.

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Technical analysis of USDX for May 24, 2016

The Dollar index is showing signs of a short-term top but sellers are yet not strong enough to push price below 95. Only then we will have a reversal confirmation.

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Blue lines -bullish channel

Price has broken out of the bullish channel and a pull back is now expected. Price is above the Kumo (cloud) and this implies that trend remains bullish for the medium-term despite any short-term weakness. Next support is at 94.30. Resistance is at 95.50 and if broken we should expect the index to move towards 96-96.20.

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The weekly chart remains bullish as long as price is above 92 and the 38% Fibonacci retracement. We might see a short-term weakness pullback towards 94.30 where the lower boundary of the Kumo (cloud) is found. Concluding, short-term we are neutral to bearish while in the medium- and long-term bulls are favored as price has made an impressive reversal off the 38% Fibonacci retracement implying new highs.The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of Gold for May 24, 2016

Gold price continues to trade in a bearish trend and is expected to move towards $1,230 before a bigger bounce. Overall I believe a big correction has started that will bring price towards $1,170-90.

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Black line - resistance trend line

Blue lines - bearish channel

Gold price is trading below the Kumo (cloud) and inside the bearish channel. I believe we are close to completing the downward move from $1,290 but only a corrective bounce is expected to follow. Trend is bearish and price is heading towards $1,190-70 as long as price is below $1,290.

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Weekly chart remains bearish as price is below the tenkan-sen (red line indicator). Stochastic oscillator is turning lower from overbought levels and this implies that the downward move has just started and we should expect price to at least reach $1,190.The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of Silver for May 24, 2016

Technical outlook and chart setups:

Silver is also seen to be trading lower at $16.28 level at this moment, and it is expected to find support at $16.00 level. Please note that fibonacci 0.618 support is also at $16.00 level and a bullish turn from there remains high probability. It is hence recommended to initiate long positions around $16.00 level and also add further, with risk at $15.50 level. Immediate support is at $15.80 level, while resistance is seen at $16.70 level respectively. Bulls are expected to remain in control from $16.00 levels, going forward. Only a break below $14.80 level would be a concern for short-term bull run.

Trading recommendations:

Remain long from $16.00 level, stop at $15.50, a target is open.

Good luck!

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

Global macro overview for 24/05/2016

Global macro overview for 24/05/2016:

In his recent speech, the Reserve Bank of Australia's outgoing Governor Glenn Stevens, has been defending the RBA inflation target projections despite the overwhelmingly low inflation levels around the globe. As he said, the inflation can not be controlled in the very short term as the results are getting more visible as the time goes by. Nevertheless, Australia's inflation remains below the 2% RBA target since the mid-2014 and it is still stubbornly low. Stevens still has confidence the inflation will return to the level of 2% or even 3% in the medium term. In conclusion, the after the RBA had cut the rates to record low 1.75% level, despite prior concerns over the potential to further stimulate the housing market, the inflation is still lower than expected. Some economist are calling to cut the rates again in order to stimulate the Australian economy even more.

Let's now take a look at the AUD/USD technical picture in daily time frame. Bears have managed to push the prices towards the support at 61%Fibo at the level of 0.7212 and the price is currently testing this level. Moreover, the market is still trading below the 50, 100 and 200 moving average, so bears are in full control over this market. The next support is seen at the level of 0.7110.

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Technical analysis of Gold for May 24, 2016

Technical outlook and chart setups:

Gold is seen to be trading lower at $1,245.00/46.00 levels for now, just below the trend line support as depicted here. Please note that the metal is still holding fibonacci 0.618 support zone and hence high probability still remains for a bullish turn around from here. The metal could probably push towards $1,280.00/90 levels or test $1,303.00 highs before reversing lower again. Bulls should remain poised to take control from here provided prices stay above $1,237.00 level. It is hence recommended to remain long from here and also look to add further on dips ahead of $1,237.00 levels. Immediate support is seen at $1,237.00 level, while resistance is at $1,260.00 level respectively.

Trading recommendations:

Remain long now, stop at $1,235.00, a target is open for now.

Good luck!

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

Technical analysis of USD/JPY for May 24, 2016

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USD/JPY is expected to continue its downside movement. Overnight U.S. indexes dipped in light trading volume, dragged by utilities shares. The Dow Jones Industrial Average edged down 8 points to 17492, the S&P 500 declined 4 points to 2048, and the Nasdaq Composite lost 3 points to 4765.

U.S. Federal Reserve officials continued to offer hawkish comments on interest rates on Monday -- this time by San Francisco Federal Reserve President John Williams and St. Louis Federal Reserve President James Bullard. Investors will surely be listening closely a speech to be made by Federal Reserve Chairwoman Janet Yellen on Friday.

Nymex crude oil dropped 0.7% to $48.08 a barrel, gold fell a further 0.3% to $1248 an ounce, and the benchmark 10-year U.S. treasury yield dipped to 1.840% from 1.849% in the previous session.

On the forex front, the U.S. dollar failed to show further upward momentum. The Japanese yen strengthened against the greenback as Japan reported a bigger-than-expected trade surplus in April. Traders also took notes from the U.S. warning Japan against intervening to devaluate the yen at the weekend before G7 meeting of central bankers and finance ministers. USD/JPY slid 0.8% to 109.22.

Meanwhile EUR/USD edged down 6 pips to 1.1216, and GBP/USD declined 0.1% to 1.4482.

On the other hand, the Australian dollar and the New Zealand dollar posted a choppy session, with AUD/USD being broadly flat at 0.7220 (day-high at 0.7259, day-low at 0.7192), and NZD/USD giving up 5 pips to 0.6757 after touching as high as 0.6806. The pair has remained on the downside after breaking below the key support at 109.65 yesterday. It touched a day-low of 109.07 before posting a rebound. Currently the rebound is losing momentum while the pair is trading around the 20-period (30-minute chart) moving average, which stands below the 50-period one. At the same time the relative strength index stays below the neutrality level of 50 lacking upward momentum. The intraday outlook continues to be bearish and the pair should return to the first downside target at 108.65. Below that, the next support would be found at 108.20.

Recommendation : 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 108.65. A break of this target will move the pair further downwards to 108.20. The pivot point stands at 109.65. 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 109.95 and the second target at 110.25.

Resistance levels: 109.95, 110.25, 111

Support levels: 108.65, 108.20. 117.90

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Technical analysis of EUR/JPY for May 24, 2016

General overview for 24/05/2016:

The impulsive down move is unfolding as expected and there is still at least one more wave to the downside needed. The most important level is now the intraday support at the level of 122.63, because any break out lower will confirm the current structure and put the level of 121.47 for test. Please notice that the projected target at the level of 121.47 might be extended lower towards the levels of 121.00 and 120.50.

Support/Resistance:

121.47 - Projected Target Level

121.92 - WS2

122.63 - Intraday Support

122.77 - WS1

122.91 - Intraday Resistance

123.14 - Black Impulsive Count Invalidation Level

123.46 - Weekly Pivot

124.34 - WR1

Trading recommendations:

All sell orders from last week should be still kept open as the target hasn't been hit yet. More sell orders might be added after the level of 122.63 is violated.

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

Technical analysis of USD/CAD for May 24, 2016

General overview for 24/05/2016:

As anticipated yesterday the wave iv corrective cycle is currently unfolding just above the weekly pivot at the level of 1.3056. One more higher high is still being expected as well, because wave v is still not completed. The projected target for wave v is at the level of 1.3218, but it might get extended to the level of 1.3276. Please notice, that the growing bearish divergence supports the view.

Support/Resistance:

1.3276 - WR1

1.3218 - Projected target for wave v

1.3162 - Intraday Resistance

1.3056 - Weekly Pivot

1.3014 - Intraday Support

1.2951 - WS1

1.2771 - Technical Support

Trading recommendations:

All buy orders from last week should be still kept open as the target hasn't been hit yet. The projected TP is still at the level of 1.3218.

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Technical analysis of USD/CHF for May 24, 2016

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USD/CHF is expected to trade with a bullish bias. The pair failed to break its nearest resistance at 0.9925 yesterday and is currently posting some consolidations. Even though a continuation of the consolidation in the current stage cannot be ruled out, its extent should be limited. As long as 0.9860 is not broken, look for further advance to 0.9945 and 0.9995 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 0.9945 and the second one at 0.9995. In the alternative scenario, short positions are recommended with the first target at 0.9805 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 0.9775. The pivot point is at 0.9860.

Resistance levels: 0.9945, 0.9980, 1.0125

Support levels: 0.9805, 0.9775, 0.9750

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Technical analysis of NZD/USD for May 24, 2016

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NZD/USD is expected to trade in a lower range as a bias remain bullish. The pair has struck against its key resistance at 0.6670 yesterday, and is turning down. At the same time, the relative strength index is below its neutrality area at 50 and is calling for caution. In conclusion, as long as 0.6670 is not surpassed, a new pullback seems to be on the cards to 0.6675 and 0.6650 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 0.6675. A break of this target will move the pair further downwards to 0.6650. The pivot point stands at 0.6770. 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 0.6805 and the second target at 0.6840.

Resistance levels: 0.6805, 0.6840, 0.6890

Support levels: 0.6675, 0.6650, 0.6600

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

Technical analysis of EUR/JPY for May 24, 2016

Technical outlook and chart setups:

The EUR/JPY pair is trading at intraday lows at 122.50 level at this moment, and should be setting up for a continued drop lower below 121.40 level going forward. The pair had reversed from fibonacci 0.618 levels earlier at 124.50/60 levels as depicted here, and is expected to remain in control of bears till prices stay below the same. It is hence recommended to remain short and also look to add further during intraday rallies ahead of 124.00 level, with risk at 124.75 for now. Immediate support is now seen at 121.40 level, while resistance is at 124.00 level respectively. Only a break above 124.60 levels and subsequently above the trend line would change the structure.

Trade recommendations:

Remain short for now, stop at 124.75, a target is below 121.40 levels at least.

Good luck!

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

Technical analysis of GBP/JPY for May 24, 2016

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GBP/JPY is under pressure. Currently trading at 159.55, the pair has been capped by its descending 20-period moving average and remains under pressure. And the declining 50-period moving average also maintains a bearish bias. As long as 159.55 is not broken above, the pair is expected to test 157.45 in the coming days.

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 157.45. A break of this target will move the pair further downwards to 156.95. The pivot point stands at 159.55. 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 160.25 and the second target at 161.

Resistance levels: 160.25, 161.00, 161.65

Support levels: 157.45, 156.95, 156

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

Technical analysis of GBP/CHF for May 24, 2016

Technical outlook and chart setups:

The GBP/CHF pair is seen to be trading at 1.4350/55 levels at this moment, looking to push higher towards 1.4700/10 levels. Please note that 1.4700/10 level is also the fibonacci 0.618 resistance level of the entire drop from 1.5570 through 1.3400 respectively. A bearish reaction should be expected at those levels, which would bring back bears in control and resume its downtrend. It is hence recommended to remain long for now, with risk at 1.4200 levels. Immediate resistance is seen through 1.4500 levels, while support is at 1.4300 levels respectively.

Trading recommendations:

Remain long for now, stop at 1.4200, a target is 1.4700.

Good luck!

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

Elliott wave analysis of EUR/NZD for May 24 - 2016

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Wave summary:

With a low seen at 1.6434 followed by a strong rally above the resistance-line near 1.6590 red wave [ii] clearly is over and red wave [iii] higher towards 1.6988 and likely even higher to 1.7273 is expected.

Short term, support is now seen at 1.6640 with back-up support seen at 1.6603, but we doubt we will see the later tested again.

Trading recommendation:

We missed our buying target at 1.6420 and will instead buy here at 1.6680 with stop placed at 1.6430.

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

Elliott wave analysis of EUR/JPY for May 24, 2016

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Wave summary:

We have seen the expected decline towards the ideal 122.12 target for wave [ii] from where a new strong rally higher to above 124.05 and more importantly above resistance at 124.65 should be seen confirming a strong test of important resistance at 126.47, which is the pivot point between the bearish or the bullish outlook.

Short term, one more minor decline closer to 122.12 is expected before the next impulsive rally sets in.

At no point can a break below 121.46 be allowed as that will revive the "old" 119.07 target.

Trading recommendation:

Our stop at 123.10 was hit for a small loss. We will buy EUR again at 122.15 or upon a break above 122.79 with stop placed at 121.45.

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

Technical analysis of EUR/USD for May 24, 2016

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When the European market opens, some economic news will be released such as ECB Financial Stability Review, Eurogroup Meetings, ZEW Economic Sentiment, German ZEW Economic Sentimen, and German Final GDP q/q. The US will release some reports too such as Richmond Manufacturing Index and New Home Sales. So amid the reports, EUR/USD will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Breakout BUY Level: 1.1269.

Strong Resistance:1.1262.

Original Resistance: 1.1251.

Inner Sell Area: 1.1240.

Target Inner Area: 1.1213.

Inner Buy Area: 1.1186.

Original Support: 1.1175.

Strong Support: 1.1164.

Breakout SELL Level: 1.1157.

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.

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Technical analysis of USD/JPY for May 24, 2016

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In Asia, today Japan will not release any economic data. However, the US will release some economic reports such as Richmond Manufacturing Index and New Home Sales. So there is a probability the USD/JPY pair will move with low ot medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Resistance. 3: 109.90.

Resistance. 2: 109.68.

Resistance. 1: 109.47.

Support. 1: 109.20.

Support. 2: 108.99.

Support. 3: 108.77.

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 major pairs for May 24, 2016

EUR/USD: On the EUR/USD pair, the support line at 1.1200, including another support line at 1.1150, might be breached this week. Nevertheless, it is possible that the EUR would rally – an event that could hamper the persistent bullishness in the market.

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USD/CHF: The USD/CHF pair is still in a bullish mode, though the price simply went flat on Monday. The next target should be the resistance level at 1.0000, which means a parity area for the USD versus the CHF. However, there is one challenge bulls might face this week, and that is the anticipated rally in the CHF, which would make it difficult for bulls to push price far higher.

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GBP/USD: The Cable did not make any significant movement on May 23, 2016, and the market remains on a neutral territory. There is a certain degree of ambiguity surrounding the Cable right now. Further southwards movement of 150 pips would result in a bearish signal. Further bullish movement of 150 pips would result in a bullish signal.

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USD/JPY: Yesterday, this market got corrected by 120 pips. There are mixed signals on the chart: The EMA 11 is still above the EMA 56, while the RSI period 14 is below the level 50. It is better to stay out of the market until there would be a confirmed bias. A movement below the demand level at 108.50 would result in a bearish signal; whereas a movement above the supply level at 111.00 would reinforce the recent bullish outlook.

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EUR/JPY: The EUR/JPY pair moved lower on Monday, out of the current equilibrium phase in the market. For this not appear like a false breakout, the price would need to go below the demand zone at 122.50. Otherwise, any rally from the current price location on the 4-hour chart would force the market back into the equilibrium phase.

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Daily analysis of USDX for May 24, 2016

USDX is trading below the resistance zone of 95.68, but the intraday structure remains sideways. However, an acceleration below the 95.22 level will open the doors for a decline toward the 94.89 level, where a rebound is expected, as the 200 SMA on H1 chart can act as a dynamic support. MACD indicator is supporting further weakness on an intraday basis.

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H1 chart's resistance levels: 95.68 / 96.14

H1 chart's support levels: 95.22 / 94.89

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 95.68, take profit is at 96.14, and stop loss is at 95.20.

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Daily analysis of GBP/USD for May 24, 2016

The pair had a very volatile session yesterday, as it has been hovering below the resistance level of 1.4549, where a fractal was formed. The nearest support is located around the 1.4430 level and if the cable is capable of breaking it, then we can expect another decline toward the 1.4335 level. However, a breakout above the 1.4549 level will push GBP/USD higher to the 1.4622 level.

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H1 chart's resistance levels: 1.4549 / 1.4622

H1 chart's support levels: 1.4430 / 1.4335

Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the GBP/USD pair breaks a bullish candlestick; the resistance level is at 1.4549, take profit is at 1.4622 and stop loss is at 1.4477.

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Daily analysis of USD/JPY for May 23, 2016

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Overview

The USD/JPY pair continues its attempts to surpass the EMA50 that forms a strong resistance at 110.20. The price needs to breach this level to confirm the extension of the current bullish wave to 113.97. Stochastic's current negativity explains the reasons for the last sideways fluctuation. In general, we still project the bullish trend in the upcoming period unless there is a break of the 106.63 level, which will put the price under the bearish correctional pressure again to extend the bearish wave to 100.70.

The expected trading range for today is between the 109.00 support and the 111.50 resistance.

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Daily analysis of EUR/JPY for MaY 23, 2016

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Overview

The EUR/JPY price did not provide any signals until the recent repeated confinement between 123.00 levels as an initial support and the stability of 124.60 against the last bullish attempts. Therefore, we expect the price to fluctuate in a sideways range in the near period until breaching 124.60 levels and then resuming gains and achieving the next target at 126.50. While the price declines below 123.00 levels, it will form bearish waves attempting to test the critical support again by reaching 121.30.

The expected trading range for today is between 122.60 and 124.60.

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Daily analysis of GOLD for May 23, 2016

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Overview

The gold price has not shown any strong moves since morning, still steadily fluctuating within a tight track above the $1,243.17 level. Therefore, there is no change in the bullish trend scenario that is supported by stochastic reaching the thresholds of the oversold areas. The price is likely to breach $1,274.70 levels to open the way to extend the bullish wave towards $1,303.58 followed by $1,344.85. Therefore, the bullish trend will remain suggested on the intraday and short-term basis. A breach of the last level will extend the gold price's gains to $1,344.85; while a break of the $1,243.17 level will push the price to extend its bearish correction to $1,205.80 as the next main station.

The expected trading range for today is between the $1,240.00 support and the $1,280.00 resistance.

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Daily analysis of Silver for May 23, 2016

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Overview

The silver price continues fluctuating steadily within a sideways track above 16.37 and 16.20 levels shown on the chart. This keeps the bullish trend scenario valid and active for the upcoming period. The price is likely to test 17.00 levels initially; a breach of this level will push the price towards 18.00 directly. Note that the break of the mentioned support levels will stop the positive scenario and push the price to continue the bearish correction, the next targets of which are located at 15.87 and then 15.37. The expected trading range for today is between the 16.20 support and the 17.00 resistance.

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