USD/CAD intraday technical levels and trading recommendations for May 31, 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 will continue between the price levels of 1.2960 and 3290.

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NZD/USD Intraday technical levels and trading recommendations for May 31, 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 (bearish breakout of the depicted bullish channel).

That's why, a quick bearish decline towards 0.6670 and 1.6550 should be expected as long as the NZD/USD pair keeps trading below 0.6760.

Otherwise, a bullish closure above 0.6760 invalidates the previous bearish scenario allowing a quick bullish movement to occur towards 0.6860.

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Intraday technical levels and trading recommendations for GBP/USD for May 31, 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 31, 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 the price level of 1.1200 (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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EUR/NZD analysis for May 31, 2016

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Recently, EUR/NZD has been moving downwards. The price tested the level of 1.6505 in a high volume. According to the 30M time frame, I found a potential double bottom formation. Be careful when selling and watch for potential buying opportunities. Take profit level is set at the price of 1.6585. if the price breaks the level of 1.6585, we may see potential testing of 1.6640.

Fibonacci Pivot Points:

Resistance levels:

R1: 1.6650

R2: 1.6670

R3: 1.6700

Support levels:

S1: 1.6585

S2: 1.6565

S3: 1.6530

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

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Technical analysis of USD/JPY for May 31, 2016

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USD/JPY is expected to trade with a bullish bias above 110.60. Overnight U.S. stock markets were closed on the occasion of the Memorial Day holiday.In Europe, the European Commission reported that the Eurozone Consumer Confidence Indicator rose to -7 in May (the same as previously estimated) from -9.3 in April. Besides, Germany's CPI grew 0.3% month-on-month in May (as expected, vs -0.4% in April) and was up 0.1% on-year (as expected, vs -0.1% in April). And the French government reported that GDP grew 0.6% quarter-on-quarter in 1Q (vs +0.5% previously estimated, +0.4% in 4Q).

Yesterday gold fell another 0.6% to $1,205 an ounce, chalking up a losing streak of 9 straight days shedding 5.8% or $74 an ounce. Silver plunged 1.5% to $15.97 an ounce, the lowest closing level since April 11.

Meanwhile, the U.S. dollar took a pause yesterday after last Friday's surge, which was triggered by Federal Reserve Chairwoman Janet Yellen's hawkish comments on rate rise. EUR/USD rebounded 0.3% to 1.1144, and GBP was up 0.1% to 1.4638 (day-low at 1.4585).

USD/JPY surged up to 111.43 yesterday before ending the day 0.8% higher at 111.11. This morning, the pair consolidated at levels below 111.00.

Although the pair continues on a consolidation initiated from yesterday's high at 111.43, it keeps trading above the key support at 110.60. Intraday technical indicators (20-, 50-period moving averages, relative strength index) are a bit negative at the moment indicating the possibility of the consolidation. However, as long as the pair does not breach the key support at 110.60, it stands a higher chance of maintaining the bullish bias and retesting the immediate resistance at 111.45 (around yesterday's high).

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 110.60.

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 31, 2016

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USD/CHF is under pressure. The pair stays below its key resistance at 0.9935 and looks for choppy price action with a bearish bias, as both the 20-period and 50-period moving averages are badly directed. Even though a technical rebound cannot be ruled out at the current stage, its extent should be limited. As long as 0.9935 holds on the upside, the intraday outlook stays negative with targets at 0.9870 and 0.9845 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 0.9870. A break of this target will move the pair further downwards to 0.9845. The pivot point stands at 0.9935. 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 0.9955 and the second one at 0.9990.

Resistance levels: 0.9955, 0.9990, 1.0010

Support levels: 0.9870, 0.9845, 0.9805

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Technical analysis of NZD/USD for May 31, 2016

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NZD/USD is expected to trade with bullish bias. The pair managed to break above its previous key resistance at 0.6705, which should confirm a bullish reversal. The 20-period moving average also crossed above the 50-period one. Besides, the relative strength index is heading upward without displaying any reversal signal. To sum up, as long as 1.4620 is not broken, the price is likely advance to 0.6770 and 0.6805 in extension.

Trading recommendations:

The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. Therefore, long positions are recommended with the first target at 0.6770 and the second one at 0.6805. In the alternative scenario, short positions are recommended with the first target at 0.6685 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 0.6670. The pivot point is at 0.6705.

Resistance levels: 0.6770, 0.6805, 0.6840

Support levels: 0.6685, 0.6670, 0.6645

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Technical analysis of GBP/JPY for May 31, 2016

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GBP/JPY is expected to trade in higher range as bias remains bullish. The pair has accelerated on the upside and is currently supported by its rising 50-period moving average. The bias remains bullish, and further advance is expected with a challenge of yesterday's high at 163.90 at first. However, if the pair turns down and breaks below the horizontal support at 161.35, it will open the way to further weakness toward 160.70.

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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Gold analysis for May 31 , 2016

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Since our previous analysis, gold has been trading upwards. The price tested the level of $1,214.08 in an average volume. According to the 30M time frame, I found a potential bearish flag formation. Watch for potential breakout of an upward channel to confirm further downward continuation. If the price breaks the level of $1,209.70, we may see a downward continuation. Take profit level is set at the price of $1.200.00. Anyway, if the price rejects from the upward diagonal, we may see potential testing of $1,215.50.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,213.40

R2: 1,216.00

R3: 1,220.40

Support levels:

S1: 1,204.70

S2: 1,202.00

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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Global macro overview for 31/05/2016

Global macro overview for 31/05/2016:

The German unemployment data were released this morning and they were better than expected. The unemployment rate decreased from the level of 6.2% to the level of 6.1%, which is the lowest level since the reunification of Western and Eastern Germany. Data from the Federal Labor Agency in Nuremberg showed, that the number of people out of work fell by a seasonally adjusted 11,000 to 2.695 million in May. In conclusion, this data shows that the growth momentum in the eurozone's strongest economy remains strong as the GDP had increased much more than economist anticipations for the first quarter of 2016.

Let's now take a look at the EUR/CHF technical picture at the daily time frame. After the swing low at the level of 0.8566 from January last year, bulls managed to push the prices higher in a series of higher highs and higher lows. The recent high at the level of 1.1200 is the most important technical resistance right now, as it must be violated before the golden trend line is broken. Otherwise, bears will take control over this market with the aim to test the technical support at the level of 1.0808.

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Technical analysis of NZD/USD for May 31, 2016

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Overview:

  • The NZD/USD pair was trading around the area of 0.6713 a day ago. Today, the level of 0.6713 represents a daily pivot point in the H1 time frame. The pair has already formed minor resistance at 0.6730 and the strong resistance is seen at the level of 0.3673 because it represents the daily resistance 1. So, major resistance is seen at 0.3673, while immediate support is found at 0.6674. If the pair closes below the daily pivot point of 0.6713, the NZD/USD pair may resume it movement to 0.6674 to test the double bottom. From this point, we expect the NZD/USD pair to move between the levels of 0.6730 and 0.6674 in coming hours. Equally important, the RSI is still calling for a strong bearish market as well as the current price is also below the moving average 100. As a result, sell below the daily pivot point of 0.6713 with targets at 0.6674. If the NZD/USD/CHF pair succeed to break out through the bottom level of 0.6674; the market will decline further to the level of 0.6653(daily support 2). However, stop loss should always be taken into account, accordingly, it will be of beneficial to set the stop loss above the last bullish wave at the level of 0.6773.
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Technical analysis of NZD/USD for May 31, 2016

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Overview:

  • The NZD/USD pair was trading around the area of 0.6713 a day ago. Today, the level of 0.6713 represents a daily pivot point in the H1 time frame. The pair has already formed minor resistance at 0.6730 and the strong resistance is seen at the level of 0.3673 because it represents the daily resistance 1. So, major resistance is seen at 0.3673, while immediate support is found at 0.6674. If the pair closes below the daily pivot point of 0.6713, the NZD/USD pair may resume it movement to 0.6674 to test the double bottom. From this point, we expect the NZD/USD pair to move between the levels of 0.6730 and 0.6674 in coming hours. Equally important, the RSI is still calling for a strong bearish market as well as the current price is also below the moving average 100. As a result, sell below the daily pivot point of 0.6713 with targets at 0.6674. If the NZD/USD/CHF pair succeed to break out through the bottom level of 0.6674; the market will decline further to the level of 0.6653(daily support 2). However, stop loss should always be taken into account, accordingly, it will be of beneficial to set the stop loss above the last bullish wave at the level of 0.6773.
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Global macro overview for 31/05/2016

Global macro overview for 31/05/2016:

The Friday's remarks of FED Chairperson Jannet Yellen are still being digested by financial markets as dollar gains across the board and global indices are edging higher. Yellen's rhetoric regarding the interest rate hike is still positive if "probably in the coming months" the economy and labor market situation gets better. Moreover, Yellen noted, that factors that pushed inflation lower seem to be stabilizing, which is in line with some of the other comments of the FED policymakers. The question is, whether the FED believes the US economy is strong enough to withstand a rate increase at either its June or July meetings. We will soon find out.

Let's now take a look at the US Dollar index technical picture at the daily time frame. The recent rally from 91.92 low had broken above 21 and 50-period moving average and now it was capped just below the 100 days moving average. Moreover, the support at the level of 95.21 had been tested as well, which supports the view, that bulls are gaining more strength and are in control over this market. This possibility will be fully confirmed when bulls will breakout above the 96.41 technical resistance and this might happen anytime soon.

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Technical analysis of USD/CHF for May 31, 2016

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Overview:

  • The USD/CHF pair movement was controversial as it took place in a narrow sideways channel for a while. The market showed signs of instability. Amid the previous events, the price is still moving between the levels of 0.9929 and 0.9895. The daily resistance and support are seen at the levels of 0.9972 and 0.9895 respectively. In consequence, it is recommended to be cautious while placing orders in this area. Thus, we should wait until the sideways channel is completed. Also, it should be noted that the double top is seen at the point of 0.9953. The price spot of 0.9953 - 0.9972 remains a significant resistance zone. Therefore, there is a possibility that the USD/CHF pair will move to the downside and the fall structure does not look corrective. So, sell below the zone of 0.9953 - 0.9972 with the first target at 0.9895 to test the support. In overall, we still prefer the bearish scenario as long as the price is below the level of 0.9895. Furthermore, if the USD/CHF pair is able to break out the bottom at 0.9895, the market will decline further to 0.9845. Overall, we still prefer the bearish scenario today.
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Technical analysis of USD/CAD for May 31, 2016

General overview for 31/05/2016:

The abc corrective cycle in wave ii might have been completed and now the market might try to breakout above the wave i top at the level of 1.3094 to continue to develop wave (iii) green. The invalidation line for this cycle is still at the level of 1.2836, a border of the bearish zone. 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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Technical analysis of EUR/JPY for May 31, 2016

General overview for 31/05/2016:

The black impulsive count was invalidated due to overlaps of wave one and wave two. This is against the Elliott wave rules. Therefore, the new Elliott wave count was prepared to incorporate the latest developments. First, let's take a look at the 4H time frame count, where we can see that one more wave is still needed to complete the wave progression to the downside - wave C of wave Z. Moreover, we can see that the key level zone between the levels of 124.53 - 124.79 was not violated and the market is still trading below the golden trend line as well. So, according to the main count, one more wave down is needed to complete the cycle. But according to the alternative count, there is a possibility that wave C of wave Z had been already formed with the low at the level of 121.48. In that case, this is the invalidation line for the impulsive wave progression to the upside. To sum up, any breakout above the key level invalidates the main count and any violation of the 121.48 level invalidates the alternative count.

Support/Resistance:

124.85 - WR3

124.65 - Wave (b) High

124.23 - WR2

124.12 - Intraday Resistance

123.42 - WR1

123.10 - Intraday Support

122.82 - Weekly Pivot

121.99 - WS1

121.48 - Black Impulsive Count Invalidation Level

121.40 - 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 124.13.

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Technical analysis of USDX for May 31, 2016

The Dollar index remains in a bullish short-term trend as long as price is above 95.40. I expect a pullback towards 94.50 at least over the coming weeks.

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Blue lines -bullish channel

Price is trading inside the bullish channel and above the Kumo (cloud). The trend is bullish. Short-term support is at 95.40 and at 95. Resistance is at the recent high of 95.96. Bulls should be cautious and raise stops to protect their longs.

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The weekly candle has reached the weekly kijun-sen (yellow line indicator) which is important Ichimoku resistance. Price remains inside the cloud, which is a long-term neutral, but a rejection at the kijun-sen will be a short-term bearish reversal signal.The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of Gold for May 31, 2016

Gold price held above $1,200 yesterday and bounced towards our first important short-term resistance of $1,215. Price remains inside the bearish channel and as long as we are inside it we can even see it near $1,190-80. I believe a bigger bounce has already started towards $1,250.

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Black line - long-term resistance

Blue lines - bearish channel

Gold price is now testing the upper channel boundary at $1,215. Breaking above that area prices could bounce towards the Kumo resistance of $1,240-50. There I would expect prices to get rejected and pull back for a lower low near $1,170.

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Gold price has held above the 38% Fibonacci retracement so far. This is an important support. However I believe that the downside correction is far from

the end and we should expect Gold to reach even the 61.8% Fibonacci retracement after a short-term bounce that could last for a week or two.

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Elliott wave analysis of EUR/NZD for May 31 - 2016

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Wave summary:

We continue to look for a rally above minor resistance at 1.6715 to accelerate prices higher towards resistance at 1.6931 and 1.7220 on the way higher to the long-term target at 1.8420.

In the short term, support is seen at 1.6525 with important back-up support at 1.6424.

We must admit that this currency pair is testing our patience in all ways, but then one of the important rules when engaging in trading is "patience".

Trading recommendation:

We are long in EUR from 1.6545 with stop placed at 1.6420. If you are not long in EUR yet, then buy near 1.6525 or upon a break above 1.6656 and use the same stop at 1.6420.

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Daily analysis of major pairs for May 31, 2016

EUR/USD: There is still a Bearish Confirmation Pattern on the 4-hour chart, in spite of the shallow bullish attempt that occurred yesterday in the context of a downtrend. The price might test the support lines at 1.1100 or even go below that. This expectation is logical, unless the USD shows any signs of vulnerability.

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USD/CHF: The USD/CHF consolidated on May 30, 2016. The bulls are still willing to push the 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 is also a threat from CHF, which might gain some stamina before the end of the week.

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GBP/USD: This currency trading instrument went upwards last week and later got corrected. That correction has not put the bullish bias on the market in a precarious position, unless the price goes below the accumulation territory at 1.4450 (which requires a great deal of selling pressure). The most likely direction this week is northward.

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USD/JPY: As it was said earlier, the bulls were willing to push USD/JPY further upwards, and that was what they did on Monday. The price moved upwards by 120 pips, now above the demand level at 111.00. The next targets are the supply levels at 111.50 and 112.00. Since there is a bullish signal in the market, those supply levels would be tested today or tomorrow.

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EUR/JPY: There is a Bullish Confirmation Pattern on the EUR/JPY 4-hour chart. The EMA 11 has crossed the EMA 56 to the upside, while the RSI period 14 is above the level 50. The current bullish breakout is yet nothing significant. It would be significant only after the price goes above the supply level at 124.50.

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Elliott wave analysis of EUR/JPY for May 31 - 2016

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Wave summary:

We continue to look for more upside progress after a minor consolidation between 123.50 and 124.15 with the next minor upside target to look for seen at 124.65, and above here the important short-term resistance at 126.47 will be the target. To confirm that a long-term bottom has been seen, as we expect, at 121.46, a break above resistance at 126.47 will be needed.

Trading recommendation:

We are long from 122.80, and we will move our stop higher to break-even. If you are not long in EUR yet, then buy near 123.50 or upon a break above 124.14 and use the same stop at 122.80.

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

Technical analysis of EUR/USD for May 31, 2016

1_EURUSD.jpg

When the European market opens, some economic news will be released such as the Unemployment Rate, Italian Prelim CPI m/m, Core CPI Flash Estimate y/y, CPI Flash Estimate y/y, Private Loans y/y, Italian Monthly Unemployment Rate, M3 Money Supply y/y, German Unemployment Change, French Prelim CPI m/m, and German Retail Sales m/m. The US will release economic data too such as the CB Consumer Confidence, Chicago PMI, S&P/CS Composite-20 HPI y/y, Personal Income m/m, Personal Spending m/m, and Core PCE Price Index m/m. So amid the reports, EUR/USD will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Breakout BUY Level: 1.1202.

Strong Resistance: 1.1196.

Original Resistance: 1.1185.

Inner Sell Area: 1.1174.

Target Inner Area: 1.1148.

Inner Buy Area: 1.1122.

Original Support: 1.1111.

Strong Support: 1.1100.

Breakout SELL Level: 1.1094.

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 31, 2016

2_USDJPY.jpg

In Asia, Japan will release the Housing Starts y/y, Prelim Industrial Production m/m, Unemployment Rate, Household Spending y/y, and the US will release some economic data such as the CB Consumer Confidence, Chicago PMI, S&P/CS Composite-20 HPI y/y, Personal Income m/m, Personal Spending m/m, and Core PCE Price Index m/m. So there is a probability the USD/JPY will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Resistance. 3: 111.41.

Resistance. 2: 111.18.

Resistance. 1: 110.98.

Support. 1: 110.70.

Support. 2: 110.48.

Support. 3: 110.27.

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 31, 2016

USDX pulled back at the start of the week, looking to correct the recent upside moves, and now we could expect another decline toward the 200 SMA price zone, which is very close to the support level of 95.22. However, a breakout can still happen to re-test the 96.03 level in coming days, and that could possibly open the doors to test the 97.00 psychological level.

USDXH1.png

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.

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

Daily analysis of GBP/USD for May 31, 2016

As we expected, GBP/USD is doing a rebound above the 200 SMA on the H1 chart, in an effort to resume the bullish bias toward new highs on a short-term basis. The next resistance is still placed at the 1.4662 level, where a breakout should happen for further momentum in favor of the upward trend. The MACD indicator is showing weakness in the current movement, but we still stay with the bullish outlook.

1464643519_GBPUSDH1.png

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.

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