NZD/USD Intraday technical levels and trading recommendations for May 30, 2016

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On January 28, the depicted support at 0.6400 acted as a prominent key level offering a valid buy entry. The 0.6550 level was broken a few weeks ago.

Bullish persistence above 0.6550 (depicted recent support) was necessary to keep the price moving towards higher bullish targets.

During February's consolidations, the price zone of 0.6750-0.6840 constituted a significant resistance zone where signs of a bearish rejection were seen (triple-top reversal pattern).

However, on February 9, the NZD/USD pair failed to consolidate below the depicted support level at 0.6550.

In early March, temporary bullish breakouts above 0.6750 and 0.6860 were executed. That's why, these price levels stood as temporary support levels.

On May 6, daily candlestick closure below the 0.6850 level enhanced a quick bearish movement towards 0.6750 where bullish rejection was expected to be applied.

However, obvious bearish closure below 0.6750 was achieved on May 24. This enhances a quick bearish decline towards 0.6670 and 1.6550 shortly afterwards.

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Daily analysis of USD/JPY for May 30, 2016

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Overview

The USD/JPY pair managed to confirm surpassing of the EMA50 after ending last week above it. Today, the pair began with a clear bullish rally towards the 111.00 barrier that supports the continuation of the bullish trend scenario efficiently for the upcoming period. It is also supported by the positive signal offered now by stochastic. It is expected that the bullish bias will continue towards 113.97 as next main station. Therefore, our bullish overview will remain valid on the intraday and short-term basis. Note that breaking of 109.70 might push the price to decline and visit the most important support in the short-term and medium-term trading at 106.63.

The expected trading range for today is between the 110.20 support and the 112.00 resistance.

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Daily analysis of EUR/JPY for May 30, 2016

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Overview

The EUR/JPY pair formed a strong positive rebound after hitting support at 122.20. The initial resistance is currently located at 123.50. The price is attempting to surpass the moving average 55 to put it under new positive effect. It is waiting for surpassing the previous mentioned resistance to begin to target positive levels that might begin from 124.20 and 124.60. In general, the main bias will remain bullish depending on the stability of the mentioned support. The expected trading range for today is between 122.60 and 124.20.

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Daily analysis of GOLD for May 30, 2016

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Overview

Gold price opened this week with a clear decline towards the main target at 1,205.80. It was pushed negatively to surpass the target and settles below it. This opens a way for the extension of the correctional bearish wave on the short-term basis to target 1,175.60 areas as next main station. Therefore, we expect witnessing more negative trading in the upcoming sessions, supported by the negative pressure offered by the EMA50. Note that continuation of the bearish bias depends on the stability below 1,243.17.

The expected trading range for today is between 1,175.60 support and 1,220.00 resistance.

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Daily analysis of Silver for May 30, 2016

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Overview

Silver price resumed its negative trading to reach our first main target at 15.87, which represents the 50% Fibonacci level for the rise measured from 13.74 to 18.00, thus, breaking this level will push the price to head towards 15.37 as a next main target. The EMA50 forms continuous negative pressure on the price, which encourages us to keep our bearish overview for the upcoming period, which will remain valid and active unless the price managed to breach the 16.37 level and hold above it.

The expected trading range for today is between the 15.50 support and the 16.37 resistance.

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EUR/NZD analysis for May 30, 2016

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Recently, EUR/NZD has been moving upwards. The price tested the level of 1.6651 in a high volume. According to the 30M time frame, I found an upward trend and successful testing of supply in a low volume and narrow spread of the bar, which is a good sign of a further upward movement. Be careful when selling EUR/NZD at this stage and watch for buying opportunities. I have placed theFibonacci expansion to find potential upward targets. I found Fibonacci expansion 61.8% at the price of 1.6685 (the first target) and Fibonacci expansion 100% at the price of 1.6770 (the second upward target).

Fibonacci Pivot Points:

Resistance levels:

R1: 1.6618

R2: 1.6635

R3: 1.6665

Support levels:

S1: 1.6560

S2: 1.6545

S3: 1.6515

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

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Technical analysis of USD/JPY for May 30, 2016

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USD/JPY is expected to trade with bullish bias. On Friday, the U.S. indices closed higher lifted by bank and technology shares. The Dow Jones Industrial Average rose 0.3% to 17,873, the S&P 500 climbed 0.4% to 2,099, while the Nasdaq Composite gained 0.7% to 4,933. Trading volume was thin ahead of the long weekend, with the Memorial Day holiday falling on Monday.

Federal Reserve Chairwoman Janet Yellen said Friday that a rate increase in the coming months would be appropriate.

On the economic data front, the U.S. GDP growth in the first quarter was revised up to +0.8% quarter-on-quarter (seasonally adjusted, annualized) from +0.5% previously estimated. And the University of Michigan Consumer Sentiment Index rose to 94.7 in May (vs 95.4 expected, 95.8 in the preliminary reading) from 89.0 in April.

Nymex crude oil declined 0.3% to $49.33 a barrel. Gold marked an eighth straight losing session by falling another 0.6% to $1,212 an ounce, giving up 5.3% or $67 an ounce in the losing streak. The benchmark 10-year U.S. treasury yield rose to 1.851% from 1.823% in the previous session.

Cheered by Yellen's comments on raising interest rates, which echoed those given by her fellow Fed officials earlier, the U.S. dollar strengthened against most other major currencies. EUR/USD fell 0.7% to 1.1114, the lowest level since mid-March, USD/JPY gained 0.4% to 110.22, and USD/CHF rose 0.6% to 0.9945.

Meanwhile, GBP/USD dropped 0.3% to 1.4620, drifting further below its overhead 200-day moving average.

At the same time, commodity-linked currencies turned to be under pressure, with USD/CAD increasing 0.3% to 1.3017, AUD/USD falling 0.6% to 0.7179, the lowest closing level in more than two months, and NZD/USD shedding 0.7% to 0.6691. The pair continues on an uptrend initiated Friday and is trading around the upper Bollinger band, calling for an acceleration to the upside. The 20-period (30-minute chart) moving average is well above the 50-period one, and the intraday relative strength index has also broken above the over-bought level of 70. The intraday outlook is still very bullish. The immediate resistance at 111.45 is in sight, and a break above this level would call for a bounce further towards the next one at 111.90.

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 111.45 and the second one, at 111.90. In the alternative scenario, short positions are recommended with the first target at 110.20 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 109.80. The pivot point is at 110.45.

Resistance levels: 111.45, 111.90, 112.35

Support levels: 110.20, 109.80, 109.10

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Technical analysis of USD/CHF for May 30, 2016

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USD/CHF is expected to trade in a higher range as the bias remains bullish. The pair resumed its bullish trend, backed by the ascending 20-period moving average. A strong support base at 0.9905 was formed. It should limit any downward attempts. In addition, the relative strength index is bullish and calls for further advance. In this case, as long as 0.9905 isn't broken, look for a new upward movement to 0.9955 and 0.9990 in extension.

Trading recommendation:

The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. Therefore, long positions are recommended with the first target at 0.9955 and the second one, at 0.9990. In the alternative scenario, short positions are recommended with the first target at 0.9885 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 0.9870. The pivot point is at 0.9905.

Resistance levels: 0.9955, 0.9990, 1.0010

Support levels: 0.9885, 0.9870, 0.9805

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Gold analysis for May 30, 2016

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Since our previous analysis, gold has been trading sideways at the price of $1,207.00. According to the 30M time frame, I found that supply in a high volume has entered the market. Simple moving average 50 held successful. Be careful when buying and watch for selling opportunities on pullbacks. Take profit level is set at the price of $1,200.20.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,220.90

R2: 1,224.85

R3: 1,231.30

Support levels:

S1: 1,208.00

S2: 1,204.00

S3: 1,197.70

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

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Technical analysis of NZD/USD for May 30, 2016

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NZD/USD is expected to continue its downside movement. The pair remains on the downside, capped by its falling 20-period and 50-period moving averages. The relative strength index is also under pressure below its declining trendline. At the current stage, the pair is pulling back to challenge its nearest horizontal support at 0.6680. The risk is a slide below this key level, which would trigger a bearish acceleration toward 0.6670 and 0.6645 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 0.6670. A break of this target will move the pair further downwards to 0.6645. The pivot point stands at 0.6730. 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 0.6770 and the second target at 0.6805.

Resistance levels: 0.6770, 0.6805, 0.6840

Support levels: 0.6670, 0.6645, 0.66

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Technical analysis of GBP/JPY for May 30, 2016

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GBP/JPY is expected to trade in a higher range. The pair has crossed above both 20-period and 50-period moving average, and is continuing its rebound. The immediate trend is upward and the momentum is strong. The bias remains bullish and further bounce is expected with the next target set at 163.10 and 164.10 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 163.10 and the second one, at 164.10. In the alternative scenario, short positions are recommended with the first target at 160.40 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 160. The pivot point is at 161.35.

Resistance levels: 163.10, 164.10, 165

Support levels:160.70, 160, 159

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USD/CAD intraday technical levels and trading recommendations for May 30, 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 recent 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.

That's why, 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.

Otherwise, sideways movement should be expected between the price levels of 1.2960 and 3290.

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Intraday technical levels and trading recommendations for GBP/USD for May 30, 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 1.4670, the next bearish destinations for the pair will be located at 1.4300, 1.4220 and 1.4050. Bearish persistence below 1.4475 will be needed to maintain enough bearish momentum.

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

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In February 2016, a lower high was achieved around the level of 1.4530. This applied extensive bearish pressure against the price level of 1.4470.

The GBP/USD pair looked oversold when the previous bearish decline extended below 1.4040 (temporary support). That is why, a significant bullish recovery and a profitable long entry were suggested around 1.3845.

On April 7, the market failed to push below the price level of 1.4050. Moreover, a bullish movement was executed again towards the price levels of 1.4750 (slightly above the 61.8% Fibonacci level).

As anticipated, significant bearish rejection was expressed around the price zone of 1.4700-1.4750 (61.8% Fibonacci level) resulting in a strong bearish shooting-star daily candlestick.

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 were suggested around these price levels.

Please note that the GBP/USD pair may become trapped between the price levels of 1.4480 and 1.4700 (61.8% Fibonacci level) until a breakout occurs (most likely a bearish one).

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

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Intraday technical levels and trading recommendations for EUR/USD for May 30, 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.

That's why, another bearish rejection was expected around the current price levels (Note the current monthly candlestick).

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), 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 GBP/USD for May 30, 2016

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Overview:

  • The GBP/USD pair dropped sharply from the level of 1.4738 towards 1.4601. Today, the price is seen at the level of 1.4601 that will act as a daily pivot point. The GBP/USD pair is still moving between 1.4601 and 1.4760. Furthermore, the price is set below the strong resistance at the levels of 1.4738 and 1.4760. Additionally, the price is in a bearish channel now. Amid the previous events, the pair is still in a downtrend from the spots of 1.4738 and 1.4760.
  • From this point, the GBP/USD pair is continuing with a bearish trend from the new resistance of 1.4738.
  • The price spot of 1.4738 and 1.4760 remains a significant resistance zone.
  • Therefore, a possibility that the GBP/USD pair will have downside momentum is rather convincing and the structure of a fall does not look corrective. In order to indicate a bearish opportunity below 1.4738, sell below 1.4738 with the first targets at 1.4535 and 1.4464.
  • However, the stop loss should be located above the level of 1.4760.
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Technical analysis of EUR/USD for May 30, 2016

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Overview:

  • The EUR/USD pair continues moving in a bullish trend from the support levels of 1.1097 and 1.1100 this morning. Currently, the price is in a bullish channel. This is confirmed by the RSI indicator signaling that we are still in a bullish trending market. But the price is still below the moving average (100), immediate resistance is seen at 1.1155, which coincides with the ratio 23.6% of Fibonacci. Consequently, the first resistance is set at the level of 1.1155. So, the market is likely to show signs of a bearish trend below the spot of 1.1155. In other words, sell orders are recommended below the price of 1.1155 with the first target at the level of 1.1100. Furthermore, if the trend is able to break out through the first support level of 1.1097. We should see the pair falling towards the major support at 1.1069 to test it. Also, it should be noticed that support 2 is seen at the level of 1.1023. On the other hand, it would also be wise to consider where to place stop loss; this should be set above the second resistance of 1.1201.
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Daily analysis of major pairs for May 30, 2016

EUR/USD: As it was projected, the EUR/USD pair went south roughly by 110 pips last week, closing at 1.1114 on Friday, May 27, 2016. There is a strong Bearish Confirmation Pattern in the market: It is expected that the market would continue trending lower as long as the USD is stronger than the EUR. Any signs of vulnerability in the USD would cause this pair to skyrocket.

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USD/CHF: The USD/CHF pair managed to go upwards a little on Friday, having consolidated during the first few days of the week. Bulls are still willing to push price northward, and there is a possibility that the resistance levels at 0.9950 and 1.0000 (a parity zone) would be tested. However, it is unlikely that the resistance level at 1.0000 would be broken to the upside, since there also is a threat from the CHF, which might gain some stamina before the end of the week.

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GBP/USD: This pair went upwards by 200 pips last week. Further bullish movement was rejected at the distribution territory at 1.4700, which effected an 80-pip correction. That correction will not put the bullish bias on the market in a precarious position, unless price goes below the accumulation territory at 1.4450 (which requires a great deal of selling pressure). Northward direction is the most likely one for this week.

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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. A breakout is imminent this week. The more the consolidation phase hold outs, the closer the expected breakout occurrence, plus the more predictable the breakout would be when it occurs.

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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 this 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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Global macro overview for 30/05/2016

Global macro overview for 30/05/2016:

The week looks very interesting, so let's see what king of events will drag the most of the attention of the market participants. The first of the most important events of the week is the ECB rate decision and forecast that will be published on Thursday June 2nd at 12:30pm GMT. Also this day, the Organization of the Petroleum Exporting Countries (OPEC) will meet in Vienna to discuss the latest developments in Canada, Venezuela, and Nigeria. Moreover, a bunch of data will come from the overseas this week as the USA will release its employment indicators (ADP data, on Thursday June 2nd at 12:15pm GMT) as well as manufacturing and non-manufacturing PMI that could make or break the possibility of the Fed's interest rate hike in June. Besides, the PMI manufacturing data will be out in China at 01:00am GMT and in Great Britain at 08:30am GMT. In conclusion, it is a very busy week for traders!

Let's now take a look at EUR/USD technical picture in 4H time frame. The market clearly dropped below the long-term golden trend line and now it is testing it from below. Moreover, bears seem to be in control over this market as another lower low was made around the level of 1.1100. Currently, the most important support is at the level of 1.1056. If this level is broken, then the next one is around 250 pips lower, at 1.0821.

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Global macro overview for 30/05/2016

Global macro overview for 30/05/2016:

The second GDP data from the USA was released last Friday and it looks like the US economy slowed down in the second quarter, but less than anticipated. According to the Commerce Department, the estimated GDP was in line with expectations of 0.8% and better than 0.5% in the last quarter. Nevertheless, the indicator has been at its lowest level since the first quarter of 2015 due to strong US dollar and weak global demand. Even surge in spending on home building in the last quarter did not really help to improve GDP. In conclusion, this was a good and promising report, so the next GDP release might get even better figures as data on retail sales, goods export, industrial production, and house sales showed a rise in April.

Let's now take a look at the USD/JPY technical picture in the daily time frame. An important bullish breakout higher above the golden trend line is the first indicator of a bullish strength. The rally might not last long, but so far the next resistance is seen at the levels of 111.99 and 115.97.

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Technical analysis of USD/CAD for May 30, 2016

General overview for 30/05/2016:

The impulsive wave progression to the upside labeled as wave i black might be the first one in the sequence of a bigger cycle wave (iii) green. The invalidation line for this cycle is still at the level of 1.2836, a border of the bearish zone. Currently, the market is in the corrective cycle wave ii black that should terminate around the level of 1.2996 and rebound upward again. The final confirmation of the bullish impulsive wave development comes with a new high above the level of 1.3190.

Support/Resistance:

1.3190 - Wave (i) High

1.3164 - WR1

1.3094 - 1.3081 - Intraday Resistance Zone

1.3035 - Weekly Pivot

1.2997 - Intraday Support

1.2888 - WS1

1.2836 - Green Impulsive Count Invalidation Level

1.2761 - WS2

Trading recommendations

All buy orders should be still kept open as the impulsive structure to the upside might still unfold anytime. Currently, the market is in the corrective cycle, so additional buy limit orders might be set within the buying zone between the levels of 1.3094 - 1.2997. The SL orders should be placed below the level of 1.2836.

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Elliott wave analysis of EUR/NZD for May 30 - 2016

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Wave summary:

The consolidation below the short-term important resistance at 1.6689 was more prolonged than it had been expected. It has not changed our view that a break above this short-term resistance soon will be seen as a continuation towards 1.6931 and 1.7223 on the way to the next major upside target at 1.8420.

In the short term, support is seen near 1.6512 and again at 1.6424, but we doubt the later will be seen as that will prolong the correction for the red wave [ii].

Trading recommendation:

We are long from 1.6545 with stop placed at 1.6420. If you are not long on the EUR yet, then buy near 1.6520 or upon a break above 1.6689 and use the same stop at 1.6420.

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Elliott wave analysis of EUR/JPY for May 30 - 2016

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Wave summary:

With a low seen at 122.19 (just 7 pips from the ideal downside target at 122.12) followed by a clear break above minor resistance at 123.12, wave [ii] was completed and wave [iii] moved higher towards at least 127.34.

Short-term support is now at 123.12 with back-up support formed at 122.75, but we doubt that the 123.12 support level will be broken .

In a long-term prospective we are looking for a return to 141.06. Besides, we expect confirmation of a rally towards 149.56 and development of the next impulsive rally.

Trading recommendation:

We are long on the EUR from 122.80 and will move our stop higher to 122.15. If you are not long on the EUR yet, then buy near 123.12 or upon a break above 124.05 and use the same stop at 122.15.

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Technical analysis of EUR/JPY for May 30, 2016

General overview for 30/05/2016:

The wave b purple structure turned out to be a little more complex than anticipated, but still the count is correct and valid. The invalidation line however is relatively close, at the level of 124.02. Any breakout higher above this level will invalidate the black impulsive count and it will make the wave (b) blue more complex and time-consuming.

Support/Resistance:

124.85 - WR3

124.65 - Wave (b) High

124.23 - WR2

124.02 - Intraday Resistance

123.42 - WR1

123.10 - Intraday Support

122.82 - Weekly Pivot

121.99 - WS1

121.49 - WS2

Trading recommendations

All sell orders should be still kept open as the impulsive structure to the downside might still unfold anytime. The SL is still at the same place, above the level of 124.03.

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Technical analysis of USDX for May 30, 2016

The Dollar index remains very strong in a bullish trend as price made a shallow retracement last week and was pushed to new highs towards 96. Price remains in a bullish channel but there are bearish divergence signals.

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Blue lines - bullish channel

The dollar index made a shallow pullback last week on top of the bullish Kumo (cloud) and held support. Prices moved then higher to new short-term highs near 96. The oscillators provide some bearish divergence signals and that is why the US dollar bulls should be very cautious and protect their longs. Short-term support is found at 95.50 and next is at 95.20. A break below 95 will open the way to a bigger correction.

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The weekly chart shows that price reached the kijun-sen (yellow line indicator) resistance. This is an important price level. A pullback is justified at the current levels. The trend remains bullish as long as price is above 92.

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Technical analysis of Gold for May 30, 2016

Gold price continued moving to new lows last week just below $1,200. Price remains inside the bearish channel. As I said last week the downside movement is now limited and we should wait for a bounce as price reached the 38% Fibonacci retracement of the rise from $1,045.

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Black line - long-term resistance

Blue lines - bearish channel

Price is below the tenkan- and kijun-sen (red and yellow line indicators). Price remains below the Kumo and inside the bearish channel. There is no trend reversal but I believe we are very close. Stochastic is diverging. Resistance is at $1,215. Support at $1,200-$1,190.

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Gold price reached the 38% Fibonacci retracement. This is an important support. Next important support is the Kumo upper boundary and the 50% retracement at $1,177. Price should bounce soon but only as part of a bigger correction that will eventually push price towards $1,150.

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Technical analysis of EUR/USD for May 30, 2016

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When the European market opens, some economic news will be released such as the Italian 10-y Bond Auction, Spanish Flash CPI y/y, French Consumer Spending m/m, German Prelim CPI m/m, and German Import Prices m/m. But today the US will not release any economic data, so amid the reports, EUR/USD will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Breakout BUY Level: 1.1162.

Strong Resistance: 1.1156.

Original Resistance: 1.1145.

Inner Sell Area: 1.1134.

Target Inner Area: 1.1108.

Inner Buy Area: 1.1082.

Original Support: 1.1071.

Strong Support: 1.1060.

Breakout SELL Level: 1.1054.

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 30, 2016

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In Asia, Japan will release the Retail Sales y/y. The US today will not release any economic data. So there is a probability the USD/JPY will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Resistance. 3: 111.36.

Resistance. 2: 111.14.

Resistance. 1: 110.93.

Support. 1: 110.66.

Support. 2: 110.44.

Support. 3: 110.23.

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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Daily analysis of USDX for May 30, 2016

It can be seen on the H1 chart that the US dollar index is strongly trading into a bullish bias above the 200 SMA, and the resistance lies at 95.68. If USDX manages to break it, further advance toward the 96.03 level can be seen, which should also strengthen the bullish trend on a short-term basis at least.

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H1 chart's resistance levels: 95.68 / 96.03

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 96.03, and stop loss is at 95.32.

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Daily analysis of GBP/USD for May 30, 2016

GBP/USD continues to perform corrective moves confirming the overall bullish bias which was pushed by the recent Brexit uncertainty increased amid the polls results. From a technical pont of view, cable can rebound above the 200 SMA, where a dynamic support can be found, and afterwards it is likely to test the 1.4662 level. MACD indicator is still in negative territory, and the price can possibly decline further to the 1.4566 level.

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H1 chart's resistance levels: 1.4662 / 1.4692

H1 chart's support levels: 1.4604 / 1.4566

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 1.4631.

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