USD/CAD intraday technical levels and trading recommendations for May 26, 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 recent 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.

Temporary bullish fixation above 1.3000 (61.8% Fibonacci level) opened the way towards the 1.3180 level where significant bearish pressure was originated.

On the other hand, the current bearish persistence below 1.3000-1.2970 (61.8% Fibonacci level) is needed to enhance bearish momentum in the market. Initial T/P levels should be located at 1.2770 and 1.2650.

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Daily analysis of GOLD for May 26, 2016

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Overview

The gold price shows sideways trading affected by stochastic positivity displayed on the four-hour time frame; it might push the price to some temporary positive attempts before resuming the bearish bias that targets testing of the 38.2% Fibonacci level at $1,205.80. The EMA50 keeps pushing negatively on the intraday trading, so we still predict the bearish trend in the upcoming sessions. A break of the $1,205.80 level will extend the correctional bearish wave to reach $1,175.60 levels. The negative scenario will remain valid unless the price manages to breach $1,243.17 and hold above it. The expected trading range for today is between the $1,205.00 support and the $1,245.00 resistance.

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EUR/NZD analysis for May 26, 2016

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Recently, EUR/NZD has been moving upwards. The pair tested the level of 1.6684 in a high volume. According to the 30M time frame, I found an upward trend and successful testing of supply at the price of 1.6575. Besides, I found successful rejection from SMA 50. Watch for buying opportunities. The level of 1.6600 looks like a good level to establish buying positions. Take profit level is set at the price of 1.6680.

Fibonacci Pivot Points:

Resistance levels:

R1: 1.6575

R2: 1.6600

R3: 1.6650

Support levels:

S1: 1.6485

S2: 1.6475

S3: 1.6410

Trading recommendation for today: The trend is upward. Watch for buying opportunities on dips. Take profit level to be set at the price of 1.6680.

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Intraday technical levels and trading recommendations for GBP/USD for May 26, 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 1.4670-1.4700 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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Daily analysis of Silver for May 26, 2016

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Overview

Silver opens today's session with clear positivity to surpass the previously broken support line of the bullish channel and 16.37 level, but it kept the stability of the daily close below these levels. Stochastic loses its positive momentum clearly to reach the overbought areas, offering a negative factor that we are waiting as it will enable the price to resume the bearish bias, the next targets located at 15.87 and followed by 15.37. Therefore, the bearish trend will remain valid and active supported by the EMA50. We should take into consideration that the stability above 16.37 will stop the expected decline and lead the price to recover again. The expected trading range for today is between 15.87 support and 16.60 resistance.

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Intraday technical levels and trading recommendations for EUR/USD for May 26, 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.

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

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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Gold analysis for May 26 , 2016

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Since our previous analysis, gold has been trading upward. The price tested the level of $1,234.02 in an ultra high volume. According to the 30M time frame, I found a volume spike (buying climax) and a bullish bar with a wide range which closed in the middle. I also found no demand bars and up-thrust bar, that is a sign that sellers took control from buyers today. Watch for selling opportunities on pullbacks. Take profit level is set at the price of $1,218.00.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,229.00

R2: 1,232.00

R3: 1,237.00

Support levels:

S1: 1,219.50

S2: 1,216.45

S3: 1,211.50

Trading recommendations for today: Be careful when buying Gold at this stage and watch for selling opportunities on the pullbacks.

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Global macro overview for 26/05/2016

Global macro overview for 26/05/2016:

The Crude Oil Inventories data from yesterday revealed a drop, posting the biggest weekly decline in seven weeks. Market participants expected stockpiles to decline to the level of -2500k barrels from 1311k barrels a week ago, but the decline was way bigger than expected, down to the level of -4226k barrels. Moreover, a series of outages around the world, such as wildfires in Canada and a spate of violence in Nigeria, the oil-producing region, has helped cut global oil supply by nearly 4 million barrels per day this month. In conclusion, a big down drawn in oil stockpiles might suggest a further price recovery towards $50/barrel and more.

Let's now take a look at the Crude Oil technical picture in the 4h time frame. From the level of $35.23 the market is controlled by bulls and they have managed to push the prices to the level of $50 per barrel. The series of higher highs and higher lows supports the bullish outlook. Moreover, the market is still trading above the 55, 100 and 200 moving average. So far a well done price recovery from 12 years old low.

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Global macro overview for 26/05/2016

Global macro overview for 26/05/2016:

The Bank of Canada has decided to keep the overnight rate unchanged at the level of 0.5%. Moreover, the bank rate remained at 0.75% and the deposit rate at 0.25%. In the BoC statement, the greatest emphasis has been put on the recent wildfire consequences, bringing a lot of disruption and temporarily holding back oil production. According to the Bank of Canada forecast, the economic damage caused by the wildfires will cut around 1.25 % points from the real GDP growth in the second quarter of 2016. Moreover, the recent downward revision to 1% from 2.2% in April makes the strong start of the year to look worse than expected.

Let's now take a look at the GBP/CAD technical picture in the daily time frame. Since the top at the level of 2.0975, bears were in control over the market. The series of lower lows and lower highs supports this view, but the recent high at the level of 1.9305 might be the first higher high in the downtrend. Nevertheless, the market is still trading below the 200 and 100 moving average and it look like the bears might want to put on test the level of 1.8744 before any meaningful rally occurs again.

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Technical analysis of USD/CAD for May 26, 2016

General overview for 26/05/2016:

The five impulsive waves labeled as wave (i) green had completed a little earlier than anticipated with the top at the level of 1.3186. Currently, the market is unfolding the corrective cycle in wave (ii) green. The invalidation line for the impulsive cycle is at the level of 1.2838, so the wave (ii) correction can not overlaps it.

Support/Resistance:

1.3276 - WR1

1.3186 - Local High

1.3056 - Weekly Pivot

1.2972 - Intraday Resistance

1.2951 - WS1

1.2892 - Intraday Support

1,2836 - Green Impulsive Count Invalidation Level

Trading recommendations:

All buy orders should be closed with profit now. More trades will be open when the correction is completed and another trading setup is present.

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Technical analysis of EUR/JPY for May 26, 2016

General overview for 26/05/2016:

The internal corrective move is unfolding, so as long as the level of 124.02 is not violated, the count is correct and valid. Currently, there are almost all three waves completed, but this corrective wave might evolve into more complex cycle. Please notice the correction in wave 2 might extend higher than the intraday resistance at the level of 123.10. Nevertheless, in the near-term another wave down is being expected anyway.

Support/Resistance:

121.47 - Projected Target Level

121.92 - WS2

122.25 - Intraday Support

122.77 - WS1

123.10 - 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 122.25 is violated.

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Technical analysis of NZD/USD for May 26, 2016

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Overview:

  • The NZD/USD pair continues to move upwards from the level of 0.6692. The pair rose from the level of 0.6692 (the level of 0.6692 to a top around 0.6733. Today, the first support level is seen at 0.6692 followed by 0.6667, while daily resistance 1 is seen at 0.6764. According to the previous events, the NZD/USD pair is still moving between the levels of 0.6700 and 0.6764. On the one-hour chart, immediate resistance is seen at 0.6726, which coincides with a ratio of 23.6% Fibonacci retracement. Currently, the price is moving in a bullish channel. This is confirmed by the RSI indicator signaling that we are still in a bullish trending market. But, the price is still below the moving average (100), therefore, if the trend is able to break out through the first resistance level of 0.6764, we should see the pair climbing towards the daily resistance at 0.6802 to test it. It would also be wise to consider where to place stop loss; this should be set below the second support of 0.6667.

Intraday technical levels:

  • R3: 0.6915
  • R2: 0.6802
  • R1: 0.6764
  • PP: 0.6733
  • S1: 0.6692
  • S2: 0.6667
  • S3: 0.6586
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Technical analysis of USD/CHF for May 26, 2016

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Overview:

  • The USD/CHF pair faced resistance at the level of 0.9969, while minor resistance is seen at 0.9937. Support is found at the levels of 0.9858 and 0.9790. Also, it should be noted that a daily pivot point has already seen at the level of 0.9900. Equally important, the USD/CHF pair is still moving around the key level at 0.9900, which represents a daily pivot on the H1 chart at the moment. Yesterday, the USD/CHF pair continued to move upwards from the level of 0.9880. The pair rose from the level of 0.9880 (this level of 0.9800 coincides with the double bottom) to the top around 0.9937. In consequence, the USD/CHF pair couldn't break resistance (0.9337). So, the level of 0.9337 is expected to act as minor resistance today. From this point, we expect the USD/CHF pair to continue moving in the bearish trend from the resistance level of 0.9337 towards the target level of 0.9858. If the pair succeeds in passing through the level of 0.9858, the market will indicate the bearish opportunity below the level of 0.9858 in order to reach the second target at 0.9790.
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Daily analysis of major pairs for May 26, 2016

EUR/USD: The EUR/USD pair moved sideways on Wednesday, following the bearish run it performed on Tuesday, partly owing to the ongoing stamina in the USD. The price has gone below the resistance line at 1.1200, targeting the support line at 1.1150. Since there is a Bearish Confirmation Pattern in the market, it is rational to think that the price could even go below that support line. Some fundamental figures are expected today and they would have impact on the markets.

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USD/CHF: The USD/CHF pair went flat on Wednesday, though the outlook is bullish. The EMA 11 is above the EMA 56; whereas the Williams' % Range period 20 is sloping towards the oversold area. This is a threat to the existing bullish bias, and bulls need to keep the price from falling below the support level at 0.9800; otherwise, things could turn vividly downwards.

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GBP/USD: The Cable has moved upwards by 230 pips this week. The price is now above the accumulation territory at 1.4700. As a result of the Bullish Confirmation Pattern on the chart, the Cable is expected to keep on going upwards, reaching the distribution territories at 1.4750 and 1.4800.

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USD/JPY: The USD/JPY pair has some near-term bullishness in it. There is still some degree of willingness in bulls, to push the price upwards, 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 to favor 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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Technical analysis of USDX for May 26, 2016

The Dollar index has finally shows some short-term reversal signs. The first leg up from 92 is over and a correction has started. Minimum target of this pullback is the 94.25 level.

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Blue lines - bullish channel

The Dollar index has broken below the bullish channel and a corrective phase has started. Price is now testing the Ichimoku cloud but I believe that eventually it will break below it. The first target of the correction is at 94.25 where the 38% Fibonacci retracement is found.

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On the daily chart as shown above price is turning lower after being rejected by the Ichimoku cloud. Short-term support is at 94.95 and next at 93.77-94.25 area. Stochastic oscillator is overbought and turning lower. Breaking below 80 will confirm bearish reversal for the short-term trend.

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Elliott wave analysis of EUR/NZD for May 26, 2016

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Wave summary:

Despite the rally to 1.6715 another decline has been seen to a low of 1.6424 from where a new rally took place. As can be seen from the daily chart below, the correction from 1.6897 has been glued to the former resistance line that now acts as support. Once yesterday's high at 1.6715 is cleared, the upside will be wide open for the next impulsive rally higher to 1.7273 and higher to 1.8420 as the next major target.

Trading recommendation:

Our stop at 1.6430 was hit, but just barely. We will buy EUR again at 1.6545 or upon a break above 1.6715 with stop placed at 1.6425

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Technical analysis of USD/JPY for May 26, 2016

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USD/JPY is expected to trade with a bearish bias. Overnight U.S. indexes rallied further upon the prior session's strong rebound, driven by financial, technology, energy, and commodity shares. The Dow Jones Industrial Average gained 0.8% to 17851, the S&P 500 rose 0.7% to 2090, and the Nasdaq Composite was up 0.7% at 4894.

Nymex crude oil settled 1.9% higher at $49.56 a barrel, its highest level since October. Gold declined 0.2% further to $1,224 an ounce, while the benchmark 10-year U.S. treasury yield ticked higher to 1.870% from 1.859% in the previous session.

On the forex front, the British pound continued to charge higher against the U.S. Dollar as traders re-positioned their bets in view of subsiding fear of "Brexit" from the European Union as suggested by recent polls. GBP/USD rose 0.4% to 1.4694, just a few pips below the overhead 200-day moving average of 1.4701.

The Canadian dollar also strengthened against the greenback overnight as the Canadian central bank decided to maintain its key interest rate at 0.50% and gave a less-dovish-than-expected statement. Firm oil prices also helped drive the currency higher. USD/CAD dropped 0.8% to 1.3018.

Meanwhile, EUR/USD rebounded 0.1% to 1.1153 and AUD/USD was up 0.2% to 0.7196.

USD/JPY gained 0.2% to 110.18 overnight while it had reached a high of 110.45 in the session. However, this morning, the pair reversed course and declined down to 109.40.

NZD/USD was little changed at 0.6738 overnight after a volatile session (day-high at 0.6772, day-low at 0.6721). This morning the pair slid 0.5% down to 0.6703. This morning the pair emerged on the downside after completing a consolidation initiated from overnight's high at 110.45, plunging down to 109.40. Although it is currently off the session's low, intraday technical indicators suggest a swing to a bearish intraday outlook, with the 20-period (30-minute chart) moving average having just crossed below the 50-period one, and the intraday relative strength index having broken below the over-sold level of 30. A break below the immediate support at 109.10 would trigger a further decline toward the next one at 108.65.

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 109.10. A break of this target will move the pair further downwards to 108.65. The pivot point stands at 110.05. 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 110.25 and the second target at 108.65.

Resistance levels: 110.25,110.60, 111

Support levels: 109.10, 108.65, 108.20

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Technical analysis of Gold for May 26, 2016

Gold price bounced towards $1,230 as we expected from our latest analysis where I said that I preferred to take profits as a bounce was imminent. The bounce could extend even towards $1,240-50 where I believe will be the next top before the final leg down towards $1,190-70.

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Black line - long-term resistance

Blue lines - bearish channel

Gold price is testing the upper channel boundary. If bulls manage to break above it then we could see a multi-day bounce that could push price back towards the Ichimoku cloud near $1,250. However a new lower low cannot be ruled out but it has a low worth as the risk is high to short at current levels.

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The weekly chart remains bearish and suggests that any bounce that remains below $1,290 should be sold as price is expected to move lower towards the upper Kumo (cloud) boundary. So a move towards $1,180 is to be expected.The material has been provided by InstaForex Company - www.instaforex.com

Elliott wave analysis of EUR/JPY for May 26, 2016

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Wave summary:

Of course, we needed a false rally followed by the expected decline closer to our ideal target at 122.12 (the low seen till now has been 122.23), with a low at 122.23 our corrective target has been fulfilled and the next impulsive rally can take hold any time now. A break above yesterdays high at 123.12 will be the trigger for the expected rally higher to 124.65 and 126.47 as the next upside target. A break above the latter will confirm that a long-term bottom is in place for much more upside pressure towards 141.06 as the first major upside target.

At no point can a break below support at 121.46 be allowed as that will invalidate the bullish outlook.

Trading recommendation:

We are long EUR from 122.80 with stop placed at 121.45. If you are not long yet, then buy EUR at 122.20 or upon a break above 123.12 and use the same stop at 121.45.

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Technical analysis of USD/CHF for May 26, 2016

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USD/CHF is expected to trade in a lower range. Currently trading at 0.9885, the pair has broken below 0.9940, and is accelerating lower. Both 20-period and 50-period moving averages are dropping and should play resistance roles. Therefore, as long as 0.9940 is not broken above, the pair is expected to decline toward 0.9860 at first. A break below this level would open the way to further weakness toward 0.9805 and 0.9775 in extension.

Trading 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 0.9980. A break of this target will move the pair further downwards to 1.0010. The pivot point stands at 0.9940. 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 0.9860 and the second target at 0.9805.

Resistance levels: 0.9980, 1.0010, 1.0075

Support levels:0.9860, 0.9805, 0.9775

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Technical analysis of NZD/USD for May 26, 2016

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NZD/USD is expected to trade with a bearish bias. The pair has struck against its key resistance at 0.6770, and is now turning down. Meanwhile, the relative strength index is below its neutrality area at 50, and is displaying strong downside momentum. Besides, a bearish cross has been identified between the 20-period and 50-period moving averages. Further downside is therefore expected with the next horizontal support and overlap set at 0.6675 at first, and then 0.6650.

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

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Technical analysis of GBP/JPY for May 26, 2016

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GBP/JPY is expected to post some further upside targets. Currently trading at 160.75, the pair is well supported by its rising 50-period moving average, while the 20-period moving average also stays above the 50-period one. The bias remains bullish and further bounce is expected with the next target set at 162.55 at first.

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 162.55 and the second one at 163.45. In the alternative scenario, short positions are recommended with the first target at 160.10 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 159. The pivot point is at 160.45.

Resistance levels: 162.55, 163.45, 164.25

Support levels:160, 159, 158.05

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Technical analysis of EUR/JPY for May 26, 2016

Technical outlook and chart setups:

The EUR/JPY pair formed a low yesterday at 122.25 level as expected before pulling back sharply. The pair is seen to be trading 122.70 level for now, and seems to have formed a meaningful bottom at 122.25 level. Though the wave structure is still inclined towards a bearish mode, till prices remain below at least 124.00 level, the recent move might be hinting towards a bullish reversal from the current levels as well. It is hence recommended to remain flat for now OR aggressively long, with risk below 121.40. Immediate support is seen at 122.25 level, while resistance is at 124.00 level respectively.

Trading recommendations:

Remain flat or aggressively long, with stop at 121.30.

Good luck!

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Technical analysis of GBP/CHF for May 26, 2016

Technical outlook and chart setups:

The GBP/CHF pair inched higher yesterday hitting 1.4600 level, before dropping lower again. The pair is seen to be trading at 1.4550 level at this moment, and it is setting up for a continued drop lower, at least towards the trend line support as depicted here. Please also note that the pair remains shy of the fibonacci 0.618 resistance level at 1.4700 level (not seen here), of the entire drop from 1.5570 through 1.3400 level respectively. The wave structure reveals that the pair may reverse from here (an A-B-C correction from 1.3400 levels looks to be complete) or from 1.4700 level. It is hence recommended to remain short from here, with risk at 1.4800 level. Immediate resistance is seen at 1.4700 level, while support is at 1.4300 level respectively.

Trading recommendations:

Remain short, stop at 1.4800, a target is open.

Good luck!

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Technical analysis of Silver for May 26, 2016

Technical outlook and chart setups:

Silver remained just shy of $16.00 level yesterday and bounced off $16.15 level. The metal is seen to be trading at $16.40 level at this moment and seems it has formed a meaningful low yesterday. The wave structure reveals that the metal could be underway to push higher through $16.60 and subsequently above $17.40 level going forward. On the flip side, a break below $16.00 level should be encouraging to bears and would open doors for a test of $15.00 levels. It is recommended to remain long for now, with risk at $15.50 level. Immediate support is seen at $16.00 level, while resistance is at $17.40 level.

Trading recommendations:

Remain long for now, stop at $15.50, a target is open.

Good luck!

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

Technical analysis of EUR/USD for May 26, 2016

1_EURUSD.jpg

When the European market opens, some economic news will be released such as Italian 10-y Bond Auction and Italian Retail Sales m/m. The US will release a series of economic reports such as Natural Gas Storage, Pending Home Sales m/m, Durable Goods Orders m/m, Unemployment Claims, and Core Durable Goods Orders m/m. So amid the reports, EUR/USD will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Breakout BUY Level: 1.1209.

Strong Resistance:1.1203.

Original Resistance: 1.1192.

Inner Sell Area: 1.1181.

Target Inner Area: 1.1155.

Inner Buy Area: 1.1129.

Original Support: 1.1118.

Strong Support: 1.1107.

Breakout SELL Level: 1.1101.

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 26, 2016

2_USDJPY.jpg

In Asia, Japan will release the SPPI y/y. The US will release a series of economic data such as Natural Gas Storage, Pending Home Sales m/m, Durable Goods Orders m/m, Unemployment Claims, and Core Durable Goods Orders m/m. So there is a probability the USD/JPY pair will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Resistance. 3: 110.14.

Resistance. 2: 109.92.

Resistance. 1: 109.71.

Support. 1: 109.44.

Support. 2: 109.22.

Support. 3: 109.01.

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 Gold for May 26, 2016

Technical outlook and chart setups:

Gold has rallied from yesterday's lows and is seen to be trading at $1,232.00/33.00 levels at this moment. The yellow metal may be pulling back in a corrective manner to find resistance around $1,235.00/40.00 and reverse or unfold into an impulse wave to confirm that a bottom is in place at $1,227.00 level. It would take at least one more trading session for to confirm the wave probabilities. It is hence recommended to remain flat for now. Immediate support is seen at $1,205.00 level, while resistance is at $1,260.00 level respectively.

Trading recommendations:

Remain flat for now or aggressively long with stop at $1,200.00, a target is at $1,260.00 at least.

Good luck!

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

Daily analysis of USDX for May 26, 2016

On H1 chart, USDX is currently making a pullback to correct the bullish bias held since recent days. The declines could go toward the 200 SMA, where a dynamic support can be found. A breakout above the resistance zone of 95.68 will give more momentum to bulls on a short-term basis toward the 96.14 price level. MACD indicator is still favoring the bearish scenario.

USDXH1.png

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.

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

Daily analysis of GBP/USD for May 26, 2016

GBP/USD had another rally day after it broke the highs from the May 19th session. Currently, we expect a breakout higher of the resistance zone of 1.4723 in order to reach the psychological zone around the 1.4800 level. However, a pullback can happen to correct the current bias, at least toward the 1.4662 level in the first degree.

GBPUSDH1.png

H1 chart's resistance levels: 1.4723 / 1.4759

H1 chart's support levels: 1.4692 / 1.4662

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 1.4723, take profit is at 1.4759 and stop loss is at 1.4689.

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

Daily analysis of USD/JPY for May 25, 2016

USDJPYH4.png

Overview

The USD/JPY pair returns to test the EMA50 that forms the key resistance at 110.15, waiting to surpass this level to reinforce the expectations for bullish trend continuation on the short-term basis. Stochastic attempts to gather the positive momentum gradually on the daily time frame. Therefore, we still expect the bullish trend in the upcoming period as long as the price is above the 106.63 level. Our next main target is located at 113.97. The expected trading range for today is between the 109.00 support and the 111.20 resistance.

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Daily analysis of EUR/JPY for May 25, 2016

EURJPYH4.png

Overview

The EUR/JPY pair has repeated its fluctuations around 122.35 recently, forming a new support base and limiting the price within the bullish level. Besides, holding the key support at 121.10 confirms price bullish attempts in the upcoming period. The price is likely to reach the first target at 124.60, followed by 126.50 levels that form the second target. We notice stochastic getting rid of the negative level and approaching from 80 level, thus supporting attempt to gather the bullish momentum and reach our awaited targets. The expected trading range for today is between 122.30 and 124.60.

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Daily analysis of GOLD for May 25, 2016

GOLDH4.png

Overview

The gold price showed a strong break of the $1,243.17 level and closed the daily candlestick below it. This stops the recently suggested positive scenario and puts the price under the correctional bearish pressure again, opening the way to the 38.2% Fibonacci level located at $1,205.80. Therefore, bearish bias will be suggested for the upcoming sessions supported by the EMA50. A breach of the $1,243.17 level will stop the current negative pressure and lead the price to recovery again.

The expected trading range for today is between the $1,205.00 support and the 1,243.17 resistance.

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Daily analysis of Silver for May 25, 2016

SILVERH4.png

Overview

According to the attached H4 chart, the silver price ended yesterday's trading below the bullish channel's support line shown on the chart. This activates the negative scenario that targets 15.87 followed by 15.37 levels on the near-term basis and extends the negative effect of the previously completed head and shoulders pattern, the signs of which appear on the chart. The EMA50 supports the expected decline, which will remain valid and active unless breaching and holding above 16.37 levels because this breach represents the key to regaining the bullish trend, the positive targets of which begin at 17.00 followed by 18.00.

The expected trading range for today is between the 15.70 support and the 16.37 resistance.

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