NZD/USD Intraday technical levels and trading recommendations for May 25, 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 0.6760-0.6840 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 0.6760 and 0.6860 was initiated.

In March, obvious bullish breakouts above 0.6760 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 0.6760 where bullish rejection was expected to be applied.

That is why, bullish persistence above 0.6760 and 0.6850 is mandatory to maintain enough bullish momentum in the market.

On the other hand, bearish persistence below 0.6760 allows a quick bearish decline towards 0.6670.

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Daily analysis of major pairs for May 25, 2016

EUR/USD: The EUR/USD pair traded further downwards on Tuesday partly owing to the ongoing stamina in USD. The price has gone below the resistance line at 1.1150, targeting the support line at 1.1100. Since there is a bearish confirmation pattern in the market, it is rational to think that the price could go below that support line.

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USD/CHF: The USD/CHF pair is still in a bullish mode, though the price simply went flat on Tuesday (a form of consolidation to the upside). The next target should be the resistance level of 1.0000, which means a parity area for USD versus CHF. Would USD reach parity with CHF? This or next week would show that answer. Any significant pullback, owing to a possible strengthening of CHF, would jeopardize the chances of parity.

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GBP/USD: There has been further bullish movement in GBP/USD, which has resulted in a clean bullish signal in the market. The EMA 11 is above the EMA 56, and the RSI period 14 is above the level 50. The price could target the distribution territories at 1.4600 and 1.4650 today or tomorrow.

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USD/JPY: The movement on this currency trading instrument is best described as a zigzag. There is still some degree of willingness to push the price upwards among bulls , though there is some resistance from bears. Since the EMA 11 is above the EMA 56, and the RSI period 14 is also above the level 50, it is rational to expect an imminent breakout favoring bulls.

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EUR/JPY: This cross has gone slightly downwards this week, but it has been unable to stay below the demand zone at 122.50. The price should go below the demand zone so as to support the current bearish signal in the market; otherwise, a possible rally would trump up the current bearish signal.

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USD/CAD intraday technical levels and trading recommendations for May 25, 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, a 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 another SELL position with a lower risk/reward ratio.

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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EUR/NZD analysis for May 25, 2016

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Recently, EUR/NZD has been moving downwards. As I expected, the pair tested the level of 1.6459 in a high volume. My downward target at the price of 1.6560 has been reached. The supply is still strong and the volume is high. According to the 1H time frame, I placed Fibonacci expansion to find potential downward targets and got Fibonacci expansion 61.8% at the price of 1.6435 and Fibonacci expansion 100% at the price of 1.6270.

Fibonacci Pivot Points:

Resistance levels:

R1: 1.6660

R2: 1.6705

R3: 1.6775

Support levels:

S1: 1.6520

S2: 1.6475

S3: 1.6405

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

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Intraday technical levels and trading recommendations for GBP/USD for May 25, 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 remain located at 1.4300, 1.4220 and 1.4050.

That's why, bearish persistence below 1.4475 was needed to maintain enough bearish momentum. However, lack of bearish momentum below 1.4475 resulted in the current bullish pullback towards 1.4670.

Note that a weekly candlestick closure above 1.4670 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.

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

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.

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Gold analysis for May 25, 2016

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Since our previous analysis, gold has been trading downward. As I expected, the price tested the level of $1,220.35 in a high volume. According to the 15M time frame, I found strong downward momentum and a few up-thrust bars (supply overcame demand). I also found resistance cluster at the price of $1,222.60, which was held successfully. Buying gold at this stage looks very risky. Both targets from the previous forecast were met. The next downward target is set at the price of $1,211.00.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,236.00

R2: 1,240.00

R3: 1,246.50

Support levels:

S1: 1,223.10

S2: 1,219.00

S3: 1,212.50

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

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Intraday technical levels and trading recommendations for EUR/USD for May 25, 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 (the depicted uptrend line and a previous consolidation range) should be considered for a valid BUY entry. S/L should be placed below 1.0950.

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Technical analysis of NZD/USD for May 25, 2016

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Overview:

  • The NZD/USD pair continues to move upwards from the level of 0.6711. Today, the first support level is seen at 0.6711; the price is moving in a bullish channel now. Furthermore, the price has been set above the strong support at 0.6711. Accordingly, we expect the NZD/USD pair to trade between 0.6711 and 0.6817. So, the support is found at 0.6711, while daily resistance lies at 0.6817. Therefore, the market is likely to show signs of a bullish trend around the spot of 0.6711 and daily pivot point (0.6759). In other words, buy orders are recommended above 0.6759 with the first target at 0.6817 and the second one at 0.6861. On contrary, if the NZD/USD pair fails to break through the support at 0.6711, the market will decline further to 0.6667 today.

Daily key levels:

  • Major resistance: 0.6861
  • Minor resistance: 0.6817
  • Intraday pivot point: 0.6759
  • Minor support: 0.6711
  • Major support: 0.6667

Comments:

  • The support is seen at 0.6711. This support has been rejected three times confirming the veracity of an uptrend.
  • The trend is still indicating a strong bullish market.
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Technical analysis of USD/CHF for May 25, 2016

Overview:

The USD/CHF pair faces resistance at 0.9967 and 1.0014. Moreover, the double top is found at 0.9940. Thus, the pair is likely to trade in a range between 0.9940 and 1.0014 levels today because it is still moving in uptrend. However, the support is seen at 0.9866. Therefore, it will be quite profitable to buy above this level (0.9866). From this point, buy deals are recommended above 0.9866 with targets at 0.9967 which is the first resistance and 1.0014 (the second resistance).

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  • On the H1 time frame chart, the RSI is still signaling that the trend is upward as it remains strong above the moving average (100). This suggests the pair will probably go up in coming hours. Accordingly, the market is likely to show signs of a bullish trend. In other words, buy orders are recommended above 0.9940 and 0.9866 levels with the first target at 0.9967. If the trend is able to break the first target at 0.9967, then the market will continue rising towards the weekly resistance 2 at 1.0014. On the other hand, if a breakout happens at the resistance level of 0.9866, then this scenario may be invalidated.
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Technical analysis of Silver for May 25, 2016

Technical outlook and chart setups:

Silver is seen to be trading at $16.25 levels at this moment after bouncing off $16.15 levels. Please note that another low could be made around $16.00 levels before pulling back. Please make note that $16.00 levels is the Fibonacci 0.618 support of the rally between $14.80 and $18.00 levels. Also, the drop from $18.00 levels seems to be corrective in nature (3 waves) till now. Indicators (not seen here) are also pointing towards a bullish divergence on 4H chart setups. It is hence recommended to remain long and add further at $16.00 levels with risk at $15.50. Immediate support is seen at $15.80 levels, while resistance is at $16.60/70 levels.

Trading recommendations:

Remain long, add around $16.00, stop at $15.50, target is open.

Good luck!

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Technical analysis of USD/JPY for May 25, 2016

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USD/JPY is expected to trade with bullish bias. Overnight U.S. indexes posted a strong rebound, lifted by technology and financial shares. The Dow Jones Industrial Average rose 1.2% to 17706, the S&P 500 gained 1.4% to 2076, and the Nasdaq Composite was up 2.0% to 4861.

On the economic front, new-home sales in the U.S. jumped 16.6% month-on-month to 619,000 units (vs 523,000 units expected, 531,000 units in March), the fastest pace in 8 years.

Nymex crude oil increased 1.1% to a fresh 2016-high of $48.62 a barrel (day-high at $49.27). Gold plunged 1.8% further to $1227 a troy ounce, and silver lost 1.0% to $16.20 an ounce. The benchmark 10-year U.S. Treasury yield settled at 1.859%, up from 1.840% in the previous session.

Boosted by positive economic data and further hawkish rate-rise comments from Federal Reserve officials, the U.S. dollar regained upward momentum and rose against most major currencies. EUR/USD lost 0.7% to reach 1.1140, below its long-term 200-day moving average, and USD/JPY rebounded 0.7% to 109.98.

The British pound once shot over 1% to as high as 1.4640 against the greenback Tuesday, as another poll on the Brexit referendum showed that the "In" camp was leading the "Out" one, forcing traders to cover their short positions on the pound. GBP/USD was finally up 1.0% to 1.4630.

Meanwhile USD/CAD declined 0.2% to 1.3119 after testing the overhead 200-day moving average at 1.3153. On the other hand, AUD/USD fell 0.5% to 0.7182, and NZD/USD was down 0.3% to 0.6736 (day-low at 0.6703). The pair posted a strong rebound yesterday after touching levels around 109.00 on the downside. It has regained the 110.00 level and is currently supported by the ascending 20-period (30-minute chart) moving average. The intraday relative strength index is well directed above the neutrality level of 50, lacking downward momentum. The immediate resistance at 110.25 (a level of overlapping support and resistance seen on May 20) is in sight, and the next one would be found at 110.60 (around the high of 110.60).

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 110.25 and the second one at 110.60. In the alternative scenario, short positions are recommended with the first target at 109.10 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 108.65. The pivot point is at 109.45.

Resistance levels: 110.25,110.60, 111

Support levels: 109.10, 108.65, 108.20. 117.90

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Technical analysis of USD/CHF for May 25, 2016

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USD/CHF is expected to trade with bullish bias as the movement is supported by a rising trend line. The pair remains bullish, backed by a rising trend line (since May 23), and is looking for a higher top. Furthermore, the 20-period moving average stays above the 50-period one. Last but not least, the relative strength index holds above its neutrality area at 50. Hence, further advance is expected with the next horizontal resistance and overlap set at 0.9950 at first, and then to 0.9980.

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 0.9950 and the second one at 0.9985. In the alternative scenario, short positions are recommended with the first target at 0.9860 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 0.9805. The pivot point is at 0.9885.

Resistance levels: 0.9950, 0.9980, 1.0125

Support levels:0.9860, 0.9805, 0.9775

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Technical analysis of NZD/USD for May 25, 2016

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NZD/USD is expected to trade with bullish bias. The pair failed to break below its horizontal support at 0.67, and is currently posting some consolidations. At the same time, the 50-period moving average is still heading downward, which indicates that the prices may have downside potential to go. Therefore, as long as 0.6730 holds on the downside, the intraday outlook stays bullish with targets at 0.6805 and 0.6840 in extension.

Trading recommendations:

The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. Therefore, long positions are recommended with the first target at 0.6805 and the second one at 0.6840. In the alternative scenario, short positions are recommended with the first target at 0.6675 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 0.6650. The pivot point is at 0.6730.

Resistance levels: 0.6805, 0.6840, 0.6890

Support levels: 0.6675, 0.6650, 0.6600

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Technical analysis of GBP/JPY for May 25, 2016

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GBP/JPY is expected to trade with a bullish bias. Currently trading at 160.87, the pair is moving sideways and remains on upside above its support at 159.80. And the relative strength index also lacks downward momentum. As long as 159.80 is not broken below, the pair is expected to climb toward 161.65 and 162.55 in the coming days.

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 162.55. In the alternative scenario, short positions are recommended with the first target at 159 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 158.05. The pivot point is at 159.80.

Resistance levels: 161.65, 162.55, 163.35

Support levels: 159, 158.05, 157.45

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Technical analysis of Gold for May 25, 2016

Technical outlook and chart setups:

Gold has dropped lower yet again today and is seen to be trading at $1,224.00/25.00 levels at this moment. Please note that the metal is at fibonacci 0.786 support of the rally between $1,207.00 through $1,303.00 level respectively. Moreover, a fibonacci convergence is also seen around $1,227.00/29.00 levels as depicted here. If the metal manages to hold this support and produce a bullish bounce, the next rally could push prices above $1,303.00 level. On the flip side a break towards $1,205.00 level would indicate that a deeper correction is on its way. It is recommended to remain cautiously long with risk below today's lows. Immediate support is seen at $1,220.00 level, while resistance is at $1,260.00 level respectively.

Trading recommendations:

Remain cautiously long, stop below $1,223.00, a target is open.

Good luck!

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Elliott wave analysis of EUR/NZD for May 25, 2016

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Wave summary:

What a scary decline from yesterdays high at 1.6715. This is a classic deep wave two correction, which are allowed to correct 100% of the first impulsive move, but it can never ever break below the starting point at 1.6434.

In the short term, we are looking for a break above minor resistance at 1.6541 as the first good indication that blue wave ii is complete and blue wave iii higher to at least 1.6907 and likely even higher towards 1.7185 is developing.

A break below important support at 1.6434 will invalidate the bullish count and call for a decline to 1.6250 before the next rally higher should be expected.

Trading recommendation:

We are long EUR from 1.6680 with stop placed at 1.6430. If you are not long EUR yet, then buy upon a break above 1.6541 and use the same stop at 1.6430.

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Elliott wave analysis of EUR/JPY for May 25, 2016

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Wave summary:

The sideways consolidation in the 122.30 - 122.80 area has been prolonged, but we still expect one more spike lower to the ideal target near 122.12 before the correction from 124.35 is over and a new impulsive rally towards 126.47 and above should be expected.

In the short term, a break below minor support at 122.48 will confirm the final decline to 122.12 before higher again.

Trading recommendation:

We will buy EUR at 122.20 or upon a break above 122.79 with stop placed at 121.45.

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Technical analysis of EUR/JPY for May 25, 2016

Technical outlook and chart setups:

The EUR/JPY pair again gets into a sideways tight trading range between 122.25 and 122.80 levels for the recent 2 trading sessions. The pair is seen to be trading at 122.70 level at this moment and should be looking to print at least one low below 122.25 levels from here before pulling back. The wave structure indicates that the pair needs to break above 124.00 level to confirm that a meaningful bottom is formed and that the next big move is on the north side. It is recommended to take profits and exit on short positions for now. Immediate support is seen at 121.40 levels, while resistance is seen at 124.00/60 levels respectively.

Trading recommendations:

Take profits on short positions and remain flat for now.

Good luck!

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Technical analysis of USDX for May 25, 2016

The Dollar index remains strong near its highs with no significant pullback or advance yet. I believe a short-term scenario will soon be confirmed and a pullback will be seen towards 94.

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Blue lines - bullish channel

The Dollar index remains inside the bullish channel and above the Ichimoku cloud. Price is testing the lower boundary of the channel. Stochastic is diverging. I believe that this is a good time for Dollar bulls to take profits or raise their stops.

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The weekly chart remains bullish but a short-term pull back is justified. The longer-term picture remains very promising for Dollar bulls after bouncing off the 38% Fibo. A break above the Kumo will increase the scenario of new highs towards 105-110.The material has been provided by InstaForex Company - www.instaforex.com

Global macro overview for 25/05/2016

Global macro overview for 25/05/2016:

The German ZEW Economic Sentiment data released yesterday were significantly worse than expected. Marked participants anticipated slight improvement from the level of 11.2 last month to 12.1, but the actual print of 6.4 leaves not room to doubt, that the Brexit uncertainty is starting to affect other Eurozone countries. This is the first important decline in sentiment among the German businessmen in three months. If there is no improvement in the UK, the mood might get even worse and enter the negative territory soon.

Let's now take a look at the EUR/USD technical picture in 4H time frame. The important level of 1.1215 has been violated and bears have managed to push the price even lower towards the next important support at the level of 1.1141 (testing now). Nevertheless, the signs of a growing bullish divergence might trigger the relief rally, but it is unlikely to break out above the level of 1.1357 anyway.

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Technical analysis of Gold for May 25, 2016

Gold price moved lower to new lows near $1,220 just below our short-term target of $1,230. Price remains in a bearish trend but I prefer to take profits now in order to wait for the bounce to re-sell for the bigger correction target below $1,190.

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Black line - long-term resistance

Blue lines - bearish channel

Gold price remains inside the bearish channel and below the Kumo. The stochastic oscillator is providing our first bullish divergence signals. I could see price move even towards $1,215 but overall I expect a bounce back above $1,230 to be seen soon.

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The weekly chart confirms our bearish view and price looks to be heading towards our target of the upper cloud boundary and the kijun-sen (yellow line indicator). We might see a bounce but trend remains bearish and I believe that only below $1,200 we should think again of the bullish scenarios.The material has been provided by InstaForex Company - www.instaforex.com

Global macro overview for 25/05/2016

Global macro overview for 25/05/2016:

The US house market data has surprised market participants posting better than expected figures. Investors expected lower number of sold houses than a month ago ( 521k vs. 531k prior), but the nice number of 619k leaves no room for doubt, that the house market might be picking up this year. Moreover, last month house sales marked an 8-year high as well. In conclusion, growth in the housing market spurs more consumption, generating demand for goods, services and the employees who provide them. Following the excellent figures release, US GDP is due. The US economic growth might expand in Q1 and the previous GDP report might be revised higher as well.

This strong data is very good for the US dollar and slightly worse for commodities, in particular gold. So let's take a look how the XAU/USD pair responded to the news release in the daily time frame. As we can see, the golden trend line has been violated and now the yellow metal bears should push the price lower towards the level of $1,208 first and then $1,191. We will wait and see how the price will react to one of these levels before drawing any conclusions.

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Technical analysis of GBP/CHF for May 25, 2016

Technical outlook and chart setups:

The GBP/CHF pair is seen to be trading at 1.4485/90 levels at this moment as expected and discussed yesterday. Please note that the pair had made highs at 1.4540 level earlier and might be looking to retrace lower before attempting to push higher towards 1.4700 level. Please note that the wave structure indicates that a minimum drop towards 1.4300 level is still possible before pushing higher. It is hence recommended to book profits on long positions taken earlier and wait for a dip to go long again. Immediate support is seen at 1.4300 level, while resistance is at 1.4700 level respectively.

Trading recommendations:

Book profits on long positions now and remain flat.

Good luck!

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Technical analysis of EUR/JPY for May 25, 2016

General overview for 25/05/2016:

The impulsive down move looks completed with the low at the level of 122.33. Currently the internal corrective move is unfolding, so as long as the level of 124.02 is not violated, the count is correct and valid. Please notice the correction in wave 2 might extend higher than the intraday resistance at the level of 122.92. Nevertheless, in the near-term another wave down is being expected anyway.

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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Technical analysis of USD/CAD for May 25, 2016

General overview for 25/05/2016:

Another marginal higher high had been made, but it looks like the wave iv is still unfolding. The corrective cycle in this wave might get more complex and time-consuming, but we still expect one more wave up to unfold after the correction is completed. The projected target of 1.3218 is still valid as well.

Support/Resistance:

1.3276 - WR1

1.3218 - Projected target for wave v

1.3186 - Intraday Resistance

1.3084 - Intraday Support

1.3056 - Weekly Pivot

1.3014 - Technical 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 EUR/USD for May 25, 2016

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When the European market opens, some economic news will be released such as ECOFIN Meetings, German 30-y Bond Auction, German Ifo Business Climate, and GfK German Consumer Climate. The US will release some economic statistics too such as Crude Oil Inventories, Flash Services PMI, HPI m/m, and Goods Trade Balance. So amid the reports, EUR/USD will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Breakout BUY Level: 1.1188.

Strong Resistance: 1.1182.

Original Resistance: 1.1171.

Inner Sell Area: 1.1160.

Target Inner Area: 1.1134.

Inner Buy Area: 1.1108.

Original Support: 1.1097.

Strong Support: 1.1086.

Breakout SELL Level: 1.1080.

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 25, 2016

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In Asia, today Japan will not release any economic data. However, the US will release some economic data such as Crude Oil Inventories, Flash Services PMI, HPI m/m, and Goods Trade Balance. So there is a probability the USD/JPY pair will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Resistance. 3: 110.68.

Resistance. 2: 110.46.

Resistance. 1: 110.25.

Support. 1: 109.98.

Support. 2: 109.76.

Support. 3: 109.55.

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 25, 2016

The index has been trading sideways, but it is favored by bulls in the short term. The next hurdle for the bullish bias would be the resistance zone of 95.68, where a breakout can push the USDX higher toward the 96.14 level. In another scenario, a pullback at current levels can produce a decline to the 95.22 level. MACD indicator is showing overbought signs, which could indicate a possible correction to take place soon.

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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 25, 2016

The H1 chart is already telling us that the сable is finding strong dynamic support above the 200 SMA, where we expect to see a further upside toward the 1.4700 level, but a pullback cannot be discarded at this stage yet. If it happens, a decline is expected to take place until the support level of 1.4569 in the near term.

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H1 chart's resistance levels: 1.4662 / 1.4692

H1 chart's support levels: 1.4622 / 1.4569

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 1.4662, take profit is at 1.4692 and stop loss is at 1.4550.

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Daily analysis of EUR/JPY for May 24, 2016

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Overview

The EUR/JPY price was forced to form new bearish waves yesterday, affected by the moving average negativity as it is steadily above the last trading. Besides, stochastic reached to the 20 level, forcing the price to settle below 123.00 levels. That is why we expect negativity to dominate in the near period, waiting for a test of the critical support located at 121.10, and then monitoring the price behavior to detect the main trend in the upcoming period.

The expected trading range for today is between 123.20 and 121.10.

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Daily analysis of USD/JPY for May 24, 2016

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Overview

The USD/JPY pair bounced lower after it failed to surpass the EMA50 located now at 110.20, where the price is affected by stochastic negativity shown on the daily time frame. It might push the price to make a temporary bearish correction before resuming the short-term bullish bias. Until now, the bullish trend scenario remains valid as long as the price is above the 106.63 level; the price is likely to breach the 110.20 level to open the way towards targeting the 113.97 level as the next main station. A break of the 108.64 level will extend the intraday bearish wave to reach 107.45 and it might extend to 106.63 before any new attempt to rise.

The expected trading range for today is between the 108.05 support and the 110.60 resistance.

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Daily analysis of GOLD for May 24, 2016

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Overview

The gold price showed a new test to the $1,243.17 level yesterday and kept trading steadily above it, which keeps the bullish trend valid until now. The price needs more positive momentum to resume the bullish bias, the main targets of which begin at $1,276.50 followed by $1,303.58 levels. We should take into consideration that a break of the $1,243.17 level will put the price under the correctional bearish pressure again, opening the way to the 38.2% Fibonacci of the rise measured from $1,047.61 to $1,303.58, located at $1,205.80. The expected trading range for today is between the $1,230.00 support and the $1,276.00 resistance.

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Daily analysis of Silver for May 24, 2016

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Overview

The silver price tests the critical support level at 16.25. This level represents one of the next trend keys besides the 16.37 resistance, where the price needs to breach one of these levels to detect its next targets clearly. Therefore, we will keep our neutrality until we get a clearer signal for the next trend. To recognize the expected targets from the breach, please review our morning report. The expected trading range for today is between the 15.87 support and the 16.75 resistance.

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