USD/CAD intraday technical levels and trading recommendations for July 11, 2016

analytics5783a9be59608.pnganalytics5783a9d0911c0.png

On May 16, a 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.

On May 18, temporary bullish fixation above 1.3000 (61.8% Fibonacci level) opened the way towards the 1.3180 level where significant bearish pressure was originated.

Bearish persistence below 1.3000-1.2970 (61.8% Fibonacci level) was needed to enhance bearish momentum in the market.

However, recent signs of bullish recovery were manifested around the price level of 1.2650 on June 9.

The current bullish pullback towards the price level of 1.3000-1.3070 (61.8% Fibonacci level) should considered for another SELL entry.

S/L should be placed above 1.3150. Initial T/P levels should be located at 1.2820 and 1.2710.

Please note that daily fixation above 1.2980 (61.8% Fibonacci level) allows a quick bullish movement towards 1.3300 (50% Fibonacci Level).

On the other hand, the price zone of 1.2400-1.2500 constitutes a significant support zone to be watched for BUY entries when enough bearish pressure is applied below 1.2650.

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

Intraday technical levels and trading recommendations for GBP/USD for July 11, 2016

analytics5783a12f8971a.pnganalytics5783a13d15895.png

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 and a bullish engulfing weekly candlestick on February 26.

Bullish fixation above 1.4670 allowed further bullish advancement initially towards 1.4950 (Weekly Supply) where significant bearish rejection was expressed.

The price zone between 1.3845 and 1.3550 (Historical bottoms in January 2009) was considered a significant demand zone to be watched for bullish recovery.

However, significant bearish breakdown below 1.3550 is currently being manifested on the depicted charts.

Note that the price zone of 1.3845-1.4040 now constitutes the recent supply zone to be watched for new SELL entries if any bullish pullback extends above 1.3550.

On the other hand, bearish persistence below the demand level at 1.3550 enhances the bearish scenario.

Bearish decline should be expected towards 1.2700 (the nearest bearish projection target) where price action should be watched for a possible short-term BUY entry.

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

Intraday technical levels and trading recommendations for EUR/USD for July 11, 2016

analytics5783a092dea96.png

In January 2015, the EUR/USD pair moved below the major demand levels near 1.2100 where historical bottoms were previously set in July 2012 and June 2010. Hence, a long-term bearish target was projected towards 0.9450.

In March 2015, the EUR/USD bears challenged the next monthly demand level around 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. However, next monthly candlesticks (September, October, and November) reflected a strong bearish rejection around the area of 1.1400-1.1500.

Again In February 2016, the depicted price levels around 1.1400-1.1500 acted as a significant supply zone during the bullish pullback.

That is why, recent bearish rejection was expected around the current price levels (note the monthly candlesticks of May and June).

In the long term, the level of 0.9450 will remain a projected bearish target if the current monthly candlestick comes to close below the depicted monthly demand level of 1.0570.

On the other hand, note that a monthly candlestick closure above 1.1400 invalidates this bearish outlook on an intermediate-term basis (low probability).

analytics5783a09f078e9.png

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.

Later on May 18, daily persistence below the levels of 1.1400 and 1.1200 was needed to ensure enough bearish momentum towards the 1.1100 and 1.1000 levels. However, a lack of bearish pressure was manifested on June 1.

Hence, the recent bullish closure above 1.1200 enhanced further bullish advancement towards 1.1400 where evident signs of bearish rejection and a valid SELL entry were previously suggested. That's why, obvious bearish breakdown of 1.1200 took place on June 16

However, evident bullish rejection around 1.1130 (depicted uptrend line) brought the EUR/USD pair above 1.1200 again.

As anticipated, the recent bullish pullback towards the zone of 1.1400 offered a valid SELL entry. All T/P levels were successfully reached.

The long-term outlook for the EUR/USD pair remains bearish as the monthly chart illustrates. Bearish fixation below 1.1000 is needed to enhance this bearish scenario.

However, the price zone of 1.1000-1.0950 (previous consolidation range) constituted a demand zone to offer a short-term BUY entry. T/P levels to be located at 1.1110, 1.1180, and 1.1220.

Price action should be watched around the price level of 1.1200 for a valid SELL entry if the bullish pullback extends above 1.1100.

On the other hand, bearish fixation below 1.1000 allows a quick bearish decline towards 1.0820 where price action should be considered.

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

EUR/NZD analysis for July 11, 2016

analytics57838f1030d58.png

Recently, EUR/NZD has been moving downwards. The price tested the level of 1.5109 in a high volume. According to the 30M time frame, I found climatic action at the price of 1.5145. I found changing in trend dynamic from bearish to bullish. Be careful when selling EUR/NZD and watch for buying opportunities on the dips. Take profit level is set at the price of 1.5385.

Fibonacci Pivot Points:

Resistance levels:

R1: 1.5270

R2: 1.5325

R3: 1.5410

Support levels:

S1: 1.5100

S2: 1.5050

S3: 1.4960

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

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

Gold analysis for July 11, 2016

analytics578389684180c.png

Since our previous analysis, gold has been trading downwards. The price tested the level of $1,335.21 in an ultra high volume. My take profit level at the price of $1,350.00 has been reached. According to the 30M time frame, I found strong rejection from the level of $1,335.00. Using market profile analysis, I found a higher value area, which means that buyers are still present on the market and that selling looks risky. I found single prints at $1,355.90, which is extacly the same level of yesterday's point of control. Watch for buying opportunities on the dips. The take profit level is set at the price of $1,370.50.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,375.10

R2: 1.377.40

R3: 1,380.60

Support levels:

S1: 1,368.40

S2: 1,366.35

S3: 1,362.50

Trading recommendations for today: Selling gold looks risky, watch for buying opportunities.

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

Technical analysis of GBP/USD for July 11, 2016

GBPUSDH4.png

Overview:

  • The GBP/USD pair faced strong support at the level of 1.2894. On the other hand, there is a strong resistance at the level of 1.3307. The level of 1.3080 represents a weekly pivot point for that it is acting as minor resistance this week and the pair is likely to try to approach it in order to test it again. Furthermore, the GBP/USD pair is continuing to trade in a bullish trend from the new support level of 1.2894. According to the previous events, we expect the GBP/USD pair to move between 1.2894 and 1.3080. Also, it should be noticed that the double top is set at 1.3300. But, the RSI is still signaling that the trend is downward as it remains strong below the moving average (100) because currently, the price is in a bearish channel. This suggests the pair will probably go down from the spot of 1.3080 in coming hours. Accordingly, the market is likely to show signs of a bearish trend. In other words, sell orders are recommended below 1.3080 with the first target at the level of 1.2796. If the trend is able to break the double bottom at the level of 1.2796, then the market will continue rising towards the weekly support 1 at 1.2627.
The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of EUR/USD for July 11, 2016

1468231684_EURUSDH1.png

Overview:

  • The trend of the EUR/USD pair movement was controversial as it took place in a narrow sideways channel, the market showed signs of instability. Amid the previous events, the price is still moving between the levels of 1.1001 and 1.1115. Also, the daily resistance and support are seen at the levels of 1.1071 and 1.1001 respectively. Therefore, it is recommended to be cautious while placing orders in this area. So, we need to wait until the sideways channel is completed on the H1 chart.
  • Last week, the market moved from its bottom at 1.1001 and continued to rise towards the top of 1.1115. Today, the current rise will remain within a framework of correction around the area of 1.1029 . However, if the pair fails to pass through the level of 1.1071, the market will indicate a bearish opportunity below the strong resistance level of 1.1071 (the level of 1.1071 coincides with the ratio of the 38.2% Fibonacci Expansion). Since there is nothing new in this market, it is not bullish yet. Sell deals are recommended below the level of 1.1071 with the first target at 1.1000. If the trend breaks the support level of 1.1000, the pair is likely to move downwards continuing the development of a bearish trend to the level 1.0960 in order to form a new double bottom.
The material has been provided by InstaForex Company - www.instaforex.com

Global macro overview for 11/07/2016

Global macro overview for 11/07/2016:

The crude oil production in the USA decreased to the lowest level since May 2014. The Energy Information Administration report showed, that the US oil production slipped 194K barrels a day to 8.43M in the week ended July 1. Moreover, the output decreased 12% from June 2015, when the prices of crude oil were above $60 a barrel. The US oil production looks weak, but so far a decline in stockpiles was only moderate. Nevertheless, this situation can be changed very fast if drillers keep returning rigs to their fields as the number of active oil rigs in the US increased in five of the past six weeks.

Let's now take a look at the crude oil technical picture in 4H time frame. The price is trading below the 55, 100, and 200 moving average and recently another lower low in the sequence was made as well. Currently, the most important level is the technical resistance at the level of 45.83. If the bull camp is too weak to violate this level, the next support is seen at the level of 43.18.

analytics5783610e07f76.jpg

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

Global macro overview for 11/07/2016

Global macro overview for 11/07/2016:

The NFP Payrolls data was a huge surprise last Friday as it beat the market expectations of 175K with a number of 287K. The unemployment rate rose slightly to the level of 4.9%% from 4.7% a month ago. It was slightly above the market consensus of 4.8%. We can see that many analysts had forecast job growth to rebound. They were also highly waiting to see if the gloomy figures from May were repeated. If they had been repeated, it could have been a hint that the economy might be sinking into a deeper trouble. In conclusion, the overall figures were very good and more and more market analysts are now re-evaluating a possibility of another rate hike this year.

Let's now take a look at the US dollar index after the data was published. After a bounce from the technical support at the level of 95.32 the market is now trying to break out above the technical resistance at the level of 96.72. If the bull camp will manage to do this, then the next resistance is seen at the level of 98.58.

analytics57835c9fa08c7.jpg

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

Technical analysis of EUR/JPY for July 11, 2016

General overview for 11/07/2016:

The new local low is still being expected in this market as long as the intraday resistance at the level of 113.36 is not clearly violated. The next expected wave development is a breakout below the intraday support at the level of 110.83 and continuation towards the wave iii bottoms at the level of 109.55.

Support/Resistance:

108.24 - WS2

109.25 - WS1

109.55 - Wave ii Bottom

110.83 - Intraday Support

111.93 - Weekly Pivot

113.00 - WR1

113.36 - Intraday Resistance

115.55 - WR2

116.65 - WR3

Trading recommendations:

All sell orders from last week should be still kept open as another wave to the downside is being anticipated. New sell orders can be opened if the level of 110.83 is violated.

analytics578359d1addcf.jpg

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

Technical analysis of USD/CAD for July 11, 2016

General overview for 11/07/2016:

The main impulsive count is still developing, according to the current labeling. The first two impulsive waves, labeled as wave (i) and wave i, are just a part of a much bigger upward wave that will eventually be labeled as wave (iii). Currently, the market is still trading inside a golden channel, but a breakout higher above the level of 1.3118 is expected. The first target is seen at the level of 1.3175.

Support/Resistance:

1.3175 - WR1

1.3118 - Wave (i) Top

1.3089 - Intraday Resistance

1.3018 - Intraday Support

1.3002 - Weekly Pivot

1.2918 - WS1

1.2876 - Technical Support

1.2829 - Invalidation Level

Trading recommendations:

All buy orders from the last week should be still kept open as another wave to the upside is being anticipated.

analytics57835775ec47c.jpg

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

Technical analysis of USDX for July 11, 2016

As expected the US dollar index made an upward move above 96 strengthened by the better than expected NFP numbers. The technical view of the index favored the bullish side and that was what the market delivered.

analytics578343ff68fa1.jpg

Black line - resistance Trend line (broken)

The dollar index successfully broke and back tested the black trend line resistance and is now trying to break above the highs of 96.70 in order to continue towards 99-100. The trend is bullish for the short-term and medium-term. The short-term support is at 96. Resistance is at 96.70.

analytics5783446941bb9.jpg

Last week's candle entered the weekly Kumo and closed also above the weekly kijun-sen (yellow line indicator). The trend is bullish and with higher highs and higher lows on a weekly basis we can say that the bullish scenario is being favored for a bigger bullish move to new highs. Critical support for this scenario

will remain valid is the 93 price level.

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

Technical analysis of Gold for July 11, 2016

Gold price made some extreme movements on Friday after the announcement of the NFP numbers. Price held support even in the 4-hour chart and reversed higher but was unable to make a new high. A longer-term trend remains bullish.

analytics57834221f24d6.jpg

Blue lines - bullish channel

Gold price made a spike towards $1,330 on Friday and touched the upper cloud boundary in the 4-hour chart. Price remains within the boundaries of the bullish channel and the trend remains bullish for the medium-term. A double top at $1,375 could be a reversal sign that will be strengthened if the price breaks below $1,350.

analytics578342b9dc046.jpg

Red lines - broadening triangle pattern

The bearish scenario of a broadening triangle pattern is still in play as long as price does not break above the upper triangle boundary. Friday's spike tested the weekly tenkan-sen (red line indicator) and bounced. This is a bullish sign however we should not rule out another deep correction towards $1,300 before Gold breaks above $1,400. I remain longer-term bullish.

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

EURJPY Technical Analysis for July 11, 2016.

Technical outlook and chart setups:

The EURJPY pair is seen to be trading at 112.10/20 levels at this moment, looking to continue rallying from here on. A bigger picture has been depicted here on the weekly chart view, which indicates that the next big move should be on the north side. As seen here, the pair has already completed the 5-3 structure since July 2012. A 5-wave rally was completed from 94.00 through 149.00 levels, and then an A-B-C zigzag correction also looks to be complete at 109.52 levels. Furthermore, the pair is getting support around fibonacci 0.618 levels as depicted here. It is hence recommended to remain long now, with risk below 109.00 levels. Immediate support is seen at 109.50 levels, while resistance is seen at 115.00 levels respectively. Bulls are expected to remain in control till the prices stay above 109.50 levels going forward.

Trading recommendations:

Remain long now, stop below 109.00, target is open.

Good luck!

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

Elliott wave analysis of EUR/NZD for July 11 - 2016

analytics578336c496678.png

Wave summary:

We continue to look for a continuation lower to 1.4490 as the ideal downside target. In the short term, we expect minor resistance near 1.5226 will protect the upside for a break below 1.5102 confirming more downside pressure towards the ideal target.

Trade recommendation:

We are short in EUR from 1.5500 with stop at break-even. If you are not short in EUR yet, then sell near 1.5226 and use the same stop at 1.5500.

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

Elliott wave analysis of EUR/JPY for July 11 - 2016

analytics578335b973d7e.png

Wave summary:

We expect minor resistance at 112.61 will be able to protect the upside for the next decline closer to the ideal downside target at 108.17 before the long-term correction from 149.56 is finally complete.

Even a small break above 112.61 will not change our expectation of one more decline closer to 108.17.

Trade recommendation:

Stay short and keep your stop at 112.65. If you are not short yet, then sell near 112.55 wil stop placed at 112.65.

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

Silver Technical Analysis for July 11, 2016.

Technical outlook and chart setups:

Silver hit fresh highs at $21.20/30 levels in the first week of July 2016 and has been trading lower since then. The metal made lows at $19.20 levels last Friday and is seen to be trading at $20.55 levels at the moment. Please note that potential still remains for a rally through $21.50 levels before producing a meaningful retracement lower. On the flip side, if the prices remain below $21.20/30 levels, bears might stay in control, pulling the metal lower. A break below $19.20 levels would be extremely encouraging to bears going forward. It is hence recommended to remain short now, with risk above $21.50 levels. Immediate support is seen at $19.20 levels (intermediary), while resistance is at $21.20/30 levels respectively. Indicators are beginning to show signs of a bearish divergence (not shown here).

Trading recommendations:

Remain short, stop above $21.50 levels, target is open.

Good luck!

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

Gold Technical Analysis for July 11, 2016.

Technical outlook and chart setups:

Gold has re-tested its highs at $1,375.00 levels today before pulling back lower. The yellow metal is seen to be trading at $1,367.00 levels at the moment, looking to slide lower. Please note that $1,380.00 levels should provide enough resistance to the metal, if it manages to reach there. The wave structure reveals that the metal has either completed or is very close to completing the 5-wave rally from $1,046.00 levels, seen in December 2015. It should retrace the entire rally in 3 corrective waves starting around current levels soon. The metal is already beginning to drop as this is being written and is now trading at $1,365.00 levels. It is hence recommended to remain short now, with risk above $1,380.00 levels. Immediate support is seen at $1,335.00 levels, while resistance is at $1,380.00 levels respectively. A push below $1,335.00 levels would confirm that a meaningful top is in place at $1,375.00 levels.

Trading recommendations:

Remain short now, stop above $1,380.00/82.00, target is open.

Good luck!

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

Technical analysis of USD/JPY for July 11, 2016

USDJPYM30.png

USD/JPY is expected to trade with a bearish bias as the pair remains within a bearish channel. The pair keeps trading within a bearish channel established on June 6. As long as the upper boundary of the bearish channel is not surpassed, the pair is likely to return to the first downside target at 100.20 (around the low of July 6) before declining further to 99.90. At the same time, the key resistance has been lowered to 101.05.

Market Commentary :

On Friday, US stock indexes settled more than 1% higher, cheered by a much-better-than-expected June jobs report. The S&P 500 gained 1.5% to 2129, just a hair below the record high closing level of 2130 marked on May 21, 2015. The Dow Jones Industrial Average rose 1.4% to 18146, and the Nasdaq Composite was up 1.6% to 4956. Technology and consumer discretionary shares were market leaders.

The US Labor Department reported that nonfarm payrolls increased 287,000 in June (vs. +165,000 expected, +11,000 in May). Meanwhile, the jobless rate rose to 4.9% in June (vs. 4.8% expected) from 4.7% in May.

European stocks continued to rally, with the Stoxx Europe 600 gaining 1.6%.

Despite the encouraging June jobs report, which should help boost expectations of the US Federal Reserve raising interest rates soon, the benchmark US 10-year Treasury yield settled at a record low of 1.366%, down from 1.387% Thursday.

Gold gained 0.5% to $1366 an ounce (day-low at $1336), and silver soared 3.1% to $20.26 an ounce (day-low at $19.20). Meanwhile, Nymex crude oil rebounded 0.6% to $45.41.

Regarding forex trading, the US dollar posted a short-lived surge after the June jobs report before coming back to levels where it started (and closed) with. EUR/USD edged down 0.1% to 1.1052 (day-low at 1.0999), GBP/USD rose 0.4% to 1.2954 (day-low at 1.2876), while USD/JPY was down 0.2% to 100.53.

Commodities-linked currencies were mixed. USD/CAD climbed 0.3% higher to 1.3042, while AUD/USD surged 1.2% to 0.7567 and NZD/USD was up 1.1% to 0.7304.

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 100.20. A break below this target will move the pair further downwards to 99.90. The pivot point stands at 101.05. In case the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, long positions are recommended with the first target at 101.45 and the second one, at 101.80.

Resistance levels: 101.45 , 101.80, 102.20

Support levels: 100.20, 99.90, 99.25

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

Technical analysis of USD/CHF for July 11, 2016

USDCHFM30.png

USD/CHF is expected to post some upside gains as the bias remains bullish. The pair has broken above the 50-period moving average and remains on the upside. At the same time, the prices are supported by a bullish trend line since July 7. Besides, the relative strength index is above its neutrality area at 50 and lacks downward momentum. In this case, as long as 0.9795 is not broken, the intraday outlook stays positive with targets at 0.9865 and 0.9895 in extension. Alternatively, below 0.9795, look for further downside with 0.9765 and 0.9735 as targets.

Resistance levels: 0.9865, 0.9895, 0.9945

Support levels: 0.9765 , 0.9735, 0.9710

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

Technical analysis of NZD/USD for July 11, 2016

NZDUSDM30.png

NZD/USD is expected to trade in a higher range as the bias remains bullish. The pair is supported by a rising trend line since July 7 and is likely to challenge the nearest resistance at 0.7330. Meanwhile, the 50-period moving average is heading upward and maintains the upside bias. Besides, the relative strength index is bullish above its neutrality area at 50, calling for further advance. To sum up, as long as 0.7240 holds on the downside, look for further rise to 0.7330 and 0.7360 in extension.

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 0.7330 and the second one, at 0.7360. In the alternative scenario, short positions are recommended with the first target at 0.72 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 0.7170. The pivot point is at 0.7240.

Resistance levels: 0.7330, 0.7360, 0.7400

Support levels: 0.7200 , 0.7170, 0.7135

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

Technical analysis of GBP/JPY for July 11, 2016

GBPJPYM30.png

GBP/JPY is under pressure and is capped by a negative trend line. As long as the trend line is not broken, the price is expected to remain below it. The pair has been capped by a descending trend line and remains on the downside. Meanwhile, the relative strength index lacks upward momentum. As long as 131.95 holds as the key resistance, a drop toward 129.55 is possible.

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 129.55. A break below this target will move the pair further downwards to 128.75. The pivot point stands at 131.95. 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 132.60 and the second one, at 133.40.

Resistance levels: 132.60 , 133.40 , 134.15

Support levels: 129.55, 128.75 , 128.00

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

NZD/USD Weekly Trading View

analytics578305f57d577.png

Trading Recommendations:

Sell now

Stop loss at 0.7400

Take profit at 0.6930

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

AUD/NZD Trading Recommendation for 11th July 2016

analytics5783052a1749b.png

Trading Recommendations:

Sell now and once more at 1.0400

Stop loss at 1.0460

Take profit at 1.0245

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

Technical analysis of EUR/USD for July 11, 2016

!!!_EURUSD.jpg

When the European market opens, Italian Industrial Production m/m data will be released. The US will publish some economic data, too, such as the Labor Market Conditions 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: 1.1096.

Strong Resistance: 1.1090.

Original Resistance: 1.1079.

Inner Sell Area: 1.1068.

Target Inner Area: 1.1042.

Inner Buy Area: 1.1016.

Original Support: 1.1005.

Strong Support: 1.0994.

Breakout SELL Level: 1.0988.

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 July 11, 2016

2_USDJPY.jpg

In Asia, Japan will release the Prelim Machine Tool Orders y/y, M2 Money Stock y/y, Core Machinery Orders m/m, and the results of the Upper House Elections. The US will release some economic data such as the Labor Market Conditions 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: 101.28.

Resistance. 2: 101.08.

Resistance. 1: 100.89.

Support. 1: 100.64.

Support. 2: 100.45.

Support. 3: 100.25.

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 major pairs for July 11, 2016

EUR/USD: This pair moved essentially sideways throughout last week, but the bias remains bearish. There is a need for the price to go above the resistance line at 1.1400, before it can be said that bulls have begun to reign in this market. There could be some serious bullish attempts this week, but they would not be able to push the price beyond the resistance line at 1.1400.

1.png

USD/CHF: This currency trading instrument made a commendable effort to go upwards last week. The price first went above the support level at 0.9800 and then tested the resistance level at 0.9850. Bulls might also be able to target the resistance level at 0.9000. Nonetheless, there are two obstacles along the way, which are the stamina expected in CHF this month, coupled with the possibility that USD could also lose its strength this week or next.

2.png

GBP/USD: GBP/USD dropped 450 pips last week to test the low of 1.2796, before the price consolidated in the last few days of the week. The bias on the 4-hour, daily and weekly charts is bearish, and thus the price should continue its decline. However, this week may be different, for we could see a strong rally in the context of a downtrend. The expected rally would not be strong enough to push the price beyond the high of June 23, 2016.

3.png

USD/JPY: This pair went downwards by at least 250 pips last week. There is a Bearish Confirmation Pattern in the market, and further southward movement could be witnessed this week. The next targets for bears are located at the demand levels of 100.00, 99.50 and 99.00. The demand level at 100.00 would pose a challenge to bears; but once it is breached to the downside, further bearish movement would be seen as the price goes below other demand levels beneath.

4.png

EUR/JPY: The EUR/JPY declined by 330 pips from Monday to Wednesday – only to move sideways on Thursday and Friday. The bias is bearish; just as it is bearish on other JPY pairs. Any rallies in this market ought to be ignored. They might even be taken as opportunities to go short at better prices.

5.png

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

Daily analysis of USDX for July 11, 2016

The index is looking to break above the 96.60 level, as the US NFP's momentum wasn't enough to strengthen the bulls across the board. Above the 96.60 level, we can expect a rally to the 97.74 price zone because the USDX is still supported by the 200 SMA on the H1 timeframe. Another scenario is calling for a breakout below the 95.89 level so that the price could reach the 95.20 level.

USDXH1.png

H1 chart's resistance levels: 96.60 / 97.74

H1 chart's support levels: 95.89 / 95.20

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 96.60, take profit is at 97.74 and stop loss is at 95.47.

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

Daily analysis of GBP/USD for July 11, 2016

The H1 chart is still reflecting a battle between buyers and sellers on the Cable, as the range established around the 1.3000 and 1.2858 levels is helping to develop that bearish sideways structure. With a breakout above the 1.3000 zone, GBP/USD can reach 1.3148, where it will be very close to the 200 SMA, while a consolidation below the 1.2858 level will open the doors for new multi-year lows.

GBPUSDH1.png

H1 chart's resistance levels: 1.3000 / 1.3148

H1 chart's support levels: 1.2858 / 1.2750

Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the GBP/USD pair breaks a bearish candlestick; the support level is at 1.3000, take profit is at 1.2858 and stop loss is at 1.3148.

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