Daily analysis of Silver for May 27, 2016

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Overview

The silver price managed to end yesterday's trading below the bullish channel's support shown on the chart after the EMA50 formed a solid resistance barrier. It stopped recent positive price attempts, which supports the continuation of the bearish bias in the upcoming sessions, reinforced by stochastic negativity. Therefore, we still expect the bearish on the intraday and short-term basis with targets reaching 15.87 then 15.37. The continuation of the suggested bearish wave depends on the sustainable daily close below 16.37. The expected trading range for today is between the 15.87 support and the 16.40 resistance.

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Technical analysis of AUD/JPY for May 27, 2016

AUD/JPY is moving down and this tendency is likely to continue. The pair broke below the descending channel and found resistance at the channel breakout point R2 (80.55)

At the same time, the price broke below the 38.2% Fibs support, which now is acting as a resistance and could be a starting point of the downtrend continuation.

Consider selling AUD/JPY at the current rate (79.20) targeting either S1 (77.50) or S2 (74.70) as a final target. The stop loss should be just above R2.

Support:77.50, 74.70

Resistance: 79.20, 80.55, 81.90

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Technical analysis of EUR/JPY for May 27, 2016

According to the daily chart, EUR/JPY is clearly trending down. The pair rejected the 200D Moving Average and broke below the descending channel.

Fibonacci applied to the channel breakout point shows that during this week pair rejected the R1 (124.00) resistance for several times and could now be ready to move lower once again. At the same time, the price broke below the S1 (122.00) support with the daily close below it.

Consider selling EUR/JPY at the current rate (122.65) targeting the S2 (118.80) support level. The stop loss should be just above the R1 (124.00)

Support: 122.00, 118.80

Resistance: 124.00, 125.55, 127.15

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Daily analysis of major pairs for May 27, 2016

EUR/USD: This is a bear market, which would remain bearish as long as the EUR/USD pair is bullish. When momentum returns to the market (the market lacks momentum right now), it would most probably be in favor of bears. Then, the price might reach the support lines at 1.1150 and 1.1100.

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USD/CHF: The USD/CHF pair has gone flat this week, 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 moved upwards by 230 pips this week, but the price was unable to stay above the distribution territory at 1.4700. There was a slight correction, which is not serious enough to override the current bullish outlook. Only a movement below the accumulation territory at 1.4450 would result in a bearish signal – something that requires a strong selling pressure.

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USD/JPY: The bias on this market turned neutral, though a closer look at the price reveals that bulls are still willing to push the price higher, if they would be freed from bears' clutches. There are currently mixed signals in the market, and swing traders might want to stay off until there is a directional movement. However, this is a wonderful opportunity for scalpers.

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EUR/JPY: The EUR/JPY cross has moved sideways so far this week, and thus, hope for a serious breakout today is very weak. However, there may be a strong breakout next week, which would push the price below the demand zone at 122.00 or above the supply zone at 124.00.

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EUR/NZD analysis for May 27, 2016

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Recently, EUR/NZD has been moving sideways at the price of 1.6570. According to the 30M time frame, I found trading range between the price of 1.6550 (support) and the price of 1.6635 (resistance). Watch for successful breakout of trading range to confirm further direction. If the price breaks the level of 1.6636, we may see potential testing of 1.6680, and if the price breaks the level of 1.6550, we may see potential testing of 1.6510.

Fibonacci Pivot Points:

Resistance levels:

R1: 1.6665

R2: 1.6700

R3: 1.6750

Support levels:

S1: 1.6560

S2: 1.6525

S3: 1.6470

Trading recommendation for today: Watch for breakout of the trading range to confirm further direction.

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NZD/USD Intraday technical levels and trading recommendations for May 27, 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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USD/CAD intraday technical levels and trading recommendations for May 27, 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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Gold analysis for May 27 , 2016

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Since our previous analysis, gold has been trading downwards. As I had expected, the price tested the level of $1,211.46 in an ultra high volume. My take profit level at the price of $1,218.00 from yesterday was met. According to the 30M time frame, I found few up-thrust bars today and rejection from the 50 SMA. Watch for selling opportunities on the pullbacks. The level around the price of $1,218.00 looks like a good area to sell. Take profit levels are set at the price of $,1,211.60 and $1,208.35.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,229.75

R2: 1,232.85

R3: 1,237.85

Support levels:

S1: 1,219.50

S2: 1,216.45

S3: 1,211.60

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

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Intraday technical levels and trading recommendations for GBP/USD for May 27, 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 was 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 the 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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Intraday technical levels and trading recommendations for EUR/USD for May 27, 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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Technical analysis of NZD/USD for May 27, 2016

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Overview:

  • The NZD/USD pair continues to move upwards from the level of 0.6699. Yesterday, the pair rose from the level of 0.6699 to the top around 0.6743. So, today the support is seens at 0.6700 (this level of 0.6699 coincides with the double bottom). On the other hand, the first resistance level is seen at 0.6771 followed by 0.6832, while minor support is found at 0.6725. Also, the level of 0.6725 represents a daily pivot point for that it is acting as minor support at the moment. Amid the previous events, the pair is still in a downtrend, because the NZD/USD pair is trading in a bullish trend from the new support line of 0.6725 towards the first support level at 1.9795 in order to test it. If the pair succeeds to pass through the level of 0.6771, the market will indicate a bullish opportunity above the level of 0.6832.

Trading recommendations:

  • Therefore, strong support will be found at the level of 0.6699 providing a clear signal to buy at this spot 0.6669 - 0.6725 with a target seen at 0.6771. If the trend breaks the minor resistance at 0.6771, the pair will move upwards continuing the bullish trend development to the level 0.6832 in order to test the daily resistance.
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Technical analysis of USD/CHF for May 27, 2016

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Overview:

  • The trend of USD/CHF pair movement was controversial as it took place in a narrow sideways channel, the market showed signs of instability. According the previous events, the trend is still trading between the levels of 0.9969 and 0.9858. Besides, the daily resistance and support are seen at the levels of 0.9969 and 0.9858 respectively.
  • Yesterday, the market moved from its bottom at 0.9884 and continued to rise towards the top of 0.9925. Today, in the one-hour chart, the current rise will remain within a framework of correction. However, if the pair fails to pass through the level of 0.9969, the market will indicate a bearish opportunity below the strong resistance level of 0.9969 (the level of 0.9937 coincides with the double top too). Since there is nothing new in this market, it is not bullish yet. Sell deals are recommended below the level of 0.9969 or 0.9937 with the first target at 0.9858. If the trend breaks the support level of 0.9858, the pair is likely to move downwards continuing the development of a bearish trend to the level 0.9790 in order to test the daily support 1.
  • However, it would also be wise to consider where to place a stop loss; this should be set above the second resistance of 1.0037.
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Global macro overview for 27/05/2016

Global macro overview for 27/05/2016:

Japan's Consumer Price Index dropped for a second straight month in April to the level of -0.3% ( -0.4% expected; -0.1% prior). The national core consumer prices, which exclude fresh food, dropped 0.3% in April from a year earlier, equaling the multi-year low hit in March. In conclusion, deflationary pressures may strengthen in the months ahead despite Bank of Japan Governor Haruhiko Kuroda's struggle to tame inflation with record asset purchases and negative interest rates. The lack of price growth will intensify pressure on the Bank of Japan to consider further monetary stimulus.

Let's now take a look at the USD/JPY technical picture in the daily time frame. The golden trend line is working as a charm so far, capping any upside rally above the 110.62 technical resistance level. As long as this trend line is not violated bears are in full control over this market.

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Global macro overview for 27/05/2016

Global macro overview for 27/05/2016:

The Durable Goods Orders data has been revealed recently and they were better than expected. According to the US Commerce Department, the orders for durable goods ( lasting more than three years) increased to 3.4% vs. 0.5% expected and 1.9% prior. Moreover, previously reported durable goods for March posted a 1.3% increase, but it was revised upside to 1.9%. The most important orders came from transportation sector, commercial planes in particular. This orders accounted for 85% of the increase in April bookings. In conclusion, the optimistic approach from buyers might be reflected in the next GDP reading, as such a strong numbers will add more to the next estimated GDP reading or revise the previous one upward.

Let's now take a look at EUR/USD technical picture in 4H time frame. The rising bullish divergence might be the first warning of a possible corrective rally to the upside as the technical support at the level of 1.1142 has so far hold the line. Nevertheless, from the swing high at the level of 1.1615 bears were in control over the market and not much has changed since that. In case of a downside break out the next support is seen at the level of 1.1056.

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Technical analysis of EUR/JPY for May 27, 2016

General overview for 27/05/2016:

The three wave corrective cycle in wave 2 might be completed, but this corrective wave might still evolve into more complex cycle. To confirm the wave 2 top is in pace, bears must push the price lower towards the intraday support at the level of 122.25 and break out below it. 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 USDX for May 27, 2016

The Dollar index is pulling back as we initially expected at least for the short term. Price is holding above the short-term support of 95.20-94.95 area but I continue to believe we might see a deeper pullback towards 93.30 if support at 94.35 fails to hold.

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Blue lines - bullish channel

The Dollar index has broken out of the bullish channel and is testing Kumo (cloud) support. The tenkan-sen (red line indicator) has crossed below the kijun-sen (yellow line indicator) providing us with a short-term reversal signal. My short-term target is the 38% Fibonacci retracement.

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The daily chart is showing reversal signs as price is being rejected by the daily Kumo (cloud). If and when price breaks below the tenkan-sen (red line indicator) at 95, we will have the first confirmed short-term reversal signal. Stochastic is overbought and turning lower. I expect the weakness in the Dollar index to continue. A shallow pullback and a push to new highs will be an extraordinary strength sign for the Dollar that should not be ignored.The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of USD/CAD for May 27, 2016

General overview for 27/05/2016:

The wave c of the wave (ii) green had been terminated just above the intraday support at the level of 1.2892. The corrective structure looks completed now, but the low will be confirmed only if the golden trend line is violated from the downside and the intraday resistance at the level of 1.3036 is broken as well. Otherwise, the corrective structure might evolve to more complex and time-consuming pattern.

Support/Resistance:

1.3276 - WR1

1.3186 - Local High

1.3056 - Weekly Pivot

1.3036 - Intraday Resistance

1.2951 - WS1

1.2892 - Intraday Support

1,2836 - Green Impulsive Count Invalidation Level

Trading recommendations:

Day traders should consider to open the buy orders from current market levels with SL below the level of 1.2892 and TP open for now. The corrective structure in wave (ii) might be completed, so we anticipate a strong impulsive rebound in wave (iii).

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Technical analysis of Gold for May 27, 2016

Gold price made a new low yesterday as price remains inside the bearish channel. Gold is expected to make a bounce soon. The downside has not much more potential at this stage.

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Black line - long-term resistance

Blue lines - bearish channel

Gold price is still below the Kumo and inside the bearish channel. Resistance is at $1,225 for the short-term. Next resistance is at $1,235. Support is at $1,200-$1,190.Stochastic is oversold and diverging.

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The weekly view remains strongly bearish as price is expected to reach the upper Kumo boundary and the kijun-sen (yellow line indicator) near $1,180. Trend is bearish. The decline from $1,295 is the big pull back we have been waiting before the next big bullish move in Gold.The material has been provided by InstaForex Company - www.instaforex.com

Elliott wave analysis of EUR/NZD for May 27, 2016

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Wave summary:

We are still looking for a break above minor resistance at 1.6715 to confirm that a corrective low is in place at 1.6424 and a new impulsive rally to 1.6931 and 1.7223 is developing on the way higher to the 1.8420 target. However, as long as minor resistance at 1.6715 is able to protect the upside, we must allow for more consolidation in the 1.6525 - 1.6715 area before the break finally is seen.

Trading recommendation:

We are long EUR from 1.6545 with stop placed at 1.6420. If you are not long EUR yet, then buy near 1.6525 or upon a break above 1.6715 and use the same stop at 1.6420

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Technical analysis of USD/JPY for May 27, 2016

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USD/JPY is expected to trade with a bullish bias. Overnight U.S. indexes were little changed after rallying 2% over the prior two sessions. The Dow Jones Industrial Average eased 0.1% to 17828, the S&P 500 was broadly flat at 2090, while the Nasdaq Composite was up 0.1% to 4901. Utilities, retail, and technology shares advanced, while materials and bank shares were under pressure.

On the economic data front, initial jobless claims fell to 268,000 in the week ended May 21 (vs 275,000 expected) from 278,000 in the previous week. Durable goods orders increased 3.4% in April (vs +0.5% expected, +1.9% in March).

Nymex crude oil declined 0.2% to $49.48 a barrel, although it had surged up to $50.21 earlier in the session, the first time it had touched the psychological $50 level since October 2015. Gold dropped 0.3% further to $1,220 a troy ounce, marking a seven-session losing streak involving a total decline of 4.7% or $60 an ounce.

Meanwhile, U.S. government bonds strengthened, with the benchmark 10-year U.S. Treasury yield falling to 1.823% from 1.870% in the previous session.

Regarding forex trading, the U.S. dollar continued to consolidate after its recent ascent. EUR/USD rose 0.4% to 1.1192, and USD/JPY dropped 0.4% to 109.75.

On the other hand, having surged 1.5% or 212 pips in the previous two sessions, GBP/USD took a pause yesterday and declined 0.2% to 1.4664, and is yet to break above the overhead 200-day moving average at 1.4701.

The Canadian dollar was driven higher by oil's brief encounter with $50 a barrel. USD/CAD lost another 0.3% to 1.2976 (day-low at 1.2907). At the same time, AUD/USD kept rebounding, gaining 0.4% to 0.7225.

Meanwhile, traders should be listening closely to Federal Reserve Chairwoman Janet Yellen who will speak Friday night at Harvard University's Radcliffe Institute.The pair posted choppy actions yesterday, reaching up to 110.23 and down to 109.38. However, it managed to close off the low. Currently it has surged to the upside, breaking above the upper Bollinger band. At the same time, while riding on a rising trend line, the intraday relative strength index is well directed above the neutrality level of 50. Therefore an acceleration to the upside is expected for the pair, with targets set at 110.25 (around Thursday's high) and 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

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Elliott wave analysis of EUR/JPY for May 27 - 2016

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Wave summary:

We are still looking for a break above the resistance at 123.12 to confirm that a corrective low was seen at 122.23 and a new impulsive rally to 124.65 and above is developing.

Short-term support is seen at 122.57, which ideally will be able to protect the downside for the break above 123.12. The minor support at 122.57 will be broken, that would call for one more decline closer to the ideal corrective target at 122.12, but at no point a break below 121.46 can be allowed.

Trading recommendation:

We are long from 122.80 with the stop placed at 121.45. If you are not long on the EUR yet, then buy at 122.60 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 27, 2016

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USD/CHF is expected to trade with a bearish bias. The pair stays below its key resistance at 0.9925 and looks for choppy price action with a bearish bias. Meanwhile the relative strength index is still below its neutrality area at 50, and is mixed to bearish. Last but not least, the 20-period and 50-period moving averages are heading downward. Hence, the first target to the downside is set at 0.9860. A break below this level would open the way to further weaknesses toward the horizontal support at 0.9830.

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 0.9860. A break of this target will move the pair further downwards to 0.9830. 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 0.9960 and the second target at 0.9980.

Resistance levels: 0.9960, 0.9980, 1.0010

Support levels:0.9860, 0.9805, 0.9775

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Technical analysis of NZD/USD for May 27, 2016

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NZD/USD is expected to trade with a bearish bias as Key resistance at 0.6770. The pair failed to break above its horizontal resistance at 0.6770, and remains weak below the threshold. Even though a continuation of the technical rebound cannot be ruled out at the current stage, its extent should be limited. As long as 0.6770 holds on the upside, the intraday outlook stays negative with targets at 0.6715 and 0.6690 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 0.6715. A break of this target will move the pair further downwards to 0.6690. 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: 0.6715, 0.6690, 0.6650

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Technical analysis of GBP/JPY for May 27, 2016

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GBP/JPY is expected to trade with bearish bias with no long-term direction. The pair is moving around its 20-period and 50-period moving averages within a trading range between 161.90 and 160. The bias remains bearish and further decline is expected with the next target set at 160 at first. If the pair turns down and breaks below the horizontal support at 160, it would open the way to further weakness towards 159.00.

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 160. A break of this target will move the pair further downwards to 159. The pivot point stands at 161.90. 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 162.55 and the second target at 163.45.

Resistance levels: 162.55, 163.45, 164.25

Support levels:160, 159, 158.05

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

Technical analysis of EUR/USD for May 27, 2016

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When the European market opens, no economic news will be released for today. However, the US will publish such economic data as Revised UoM Inflation Expectations, Revised UoM Consumer Sentiment, Prelim GDP Price Index q/q, Prelim GDP q/q. So amid the reports, EUR/USD will move low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Breakout BUY Level: 1.1246.

Strong Resistance:1.1240.

Original Resistance: 1.1229.

Inner Sell Area: 1.1218.

Target Inner Area: 1.1192.

Inner Buy Area: 1.1166.

Original Support: 1.1155.

Strong Support: 1.1144.

Breakout SELL Level: 1.1138.

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 27, 2016

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In Asia, Japan will release the BOJ's Core CPI y/y, National Core CPI y/y, Tokyo Core CPI y/y while the US will publish some economic data, including Revised UoM Inflation Expectations, Revised UoM Consumer Sentiment, Prelim GDP Price Index q/q, and Prelim GDP q/q. So there is a probability that the USD/JPY will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Resistance. 3: 110.44.

Resistance. 2: 110.22.

Resistance. 1: 110.01.

Support. 1: 109.75.

Support. 2: 109.53.

Support. 3: 109.32.

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 27, 2016

The USDX traded in a bearish tone during Thursday's session, but currently we should note that the Index is hovering around the 200 SMA area on the H1 chart. If the USDX does a rebound at the current levels, then it could resume the bullish bias to reach new highs above the 96.00 level after a breakout at the resistance level of 95.68 is done.

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H1 chart's resistance levels: 95.22 / 95.68

H1 chart's support levels: 94.89 / 94.62

Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the USD Index breaks with a bullish candlestick; the resistance level is at 95.22, take profit is at 95.68, and stop loss is at 94.77.

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

Daily analysis of GBP/USD for May 27, 2016

Pair had a corrective session and it's now looking to find support around the 1.4662 level. However, overall bullish bias remains untouched, as the Cable has been trading higher after it performed rebounds above the 200 SMA, which is our path of the current trend. A breakout above the 1.4723 level could push the GBP/USD towards the 1.4800 psychological zone.

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H1 chart's resistance levels: 1.4692 / 1.4723

H1 chart's support levels: 1.4662 / 1.4604

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 1.4692, take profit is at 1.4723, and stop loss is at 1.4661.

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

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

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