Technical analysis of USD/JPY for July 12, 2016

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USD/JPY is expected to trade in a higher range as bias remains bullish. The pair broke above the upper boundary of a bearish channel and surged up to 103.50 yesterday before entering consolidation. Currently, it is trading around the lower Bollinger band, and the intraday relative strength index (30-minute chart) crossed below the neutrality level of 50, suggesting a continuation of the consolidation. However, as long as the level of 102.85 holds as the key support, the intraday outlook remains bullish and the pair is expected to resume its rise to 104.30.

Market Commentary :

On Monday, the US stock indices rallied further, boosted by financial and technology shares. The S&P 500 rose 0.3% to mark a new record-high close of 2,137. The Dow Jones Industrial Average gained 0.4% to 18,226, and the Nasdaq Composite was up 0.6% to 4,988, the highest closing level year to date.

European stocks kept strengthening, with the Stoxx Europe 600 increasing another 1.6%.

The benchmark U.S. 10-year Treasury yield settled at 1.434%, up from the record low of 1.366% on Friday. Gold gave up 0.9% to $1,355 an ounce, and silver was broadly flat at $20.26 an ounce (day-high at $20.67). And Nymex crude oil declined 1.4% to $44.76.

On the forex front, the US dollar surged against the Japanese yen as Japan's Prime Minister Shinzo Abe promised a fresh round of fiscal stimulus after winning the weekend's upper-house elections. USD/JPY rose 2.3% to 102.79, the biggest one-day gain since October 2014. At the same time the Nikkei 225 Index soared 4.0%.

The British pound swung to gains from the earlier losses after Theresa May was confirmed as the next Conservative Party leader and prime minister of the UK. GBP/USD increased 0.3% to 1.2993 (one-day low at 1.2849).

EUR/USD edged up to 1.1056 from 1.1052 a day earlier. As a result, the ICE US Dollar Index climbed 0.3% to 96.56, the highest closing level in 4 months.

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 104.30 and the second one, at 104.70. In the alternative scenario, short positions are recommended with the first target at 102.25 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 101.85. The pivot point is at 102.85.

Resistance levels: 104.30, 104.70, 105.30

Support levels: 102.25, 101.85, 101.35

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Technical analysis of USD/CHF for July 12, 2016

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USD/CHF is under pressure and the key resistance is at 0.9865. The pair remains under pressure below its key resistance at 0.9865, which should limit the upside potential. Indeed, the pair is drawing a flat consolidation in the 0.9865 - 0.9800 trading range. Besides, the relative strength index lacks upward momentum. To conclude, as long as the resistance at 0.9865 is not surpassed, the pair is likely to return to its key support at 0.9765. A break below this level would open the way to further weakness towards the horizontal support at 0.9735.

Resistance levels: 0.9895, 0.9920, 0.9945

Support levels: 0.9765 , 0.9735, 0.9710

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EUR/NZD analysis for July 12, 2016

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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 downward pressure on the market and a breakout of upward trend line in the background. Supply trend line is held successfully, which is a sign that buying looks risky. Watch for selling opportunities on the pullbacks. The first take profit level is set at the price of 1.5115.

Fibonacci Pivot Points:

Resistance levels:

R1: 1.5330

R2: 1.5375

R3: 1.5450

Support levels:

S1: 1.5170

S2: 1.5125

S3: 1.5050

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

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Technical analysis of NZD/USD for July 12, 2016

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Overview:

  • The NZD/USD pair faced resistance at the level of 0.7316, while support is found at the levels of 0.7242 and 0.7181. Pivot point has already been seen at the level of 0.7242. Equally important, the NZD/USD pair is still moving around the key level at 0.7242 - 0.7305. The price of 0.7242 represents a daily pivot in the H4 time frame. Yesterday, the NZD/USD pair continued moving upwards from the level of 0.7181. The pair rose to the top around 0.7315. The current price is seen at 0.7305. This suggests that the pair will probably go above the daily pivot point (0.7242) in the coming hours. The NZD/USD pair will demonstrate strength following a breakout of the high at 0.7315. Consequently, the market is likely to show signs of a bullish trend. In other words, buy orders are recommended above 0.7315 with the first target at 0.7350. Then, the pair is likely to begin an ascending movement to 0.7415. The level of 0.7415 will act as a new strong resistance, because the NZD/USD pair will form a new double top. On the other hand, the daily strong support is seen at 0.7181. If the NZD/USD pair is able to break out the level of 0.7181, the market will decline further to 0.7100 today.
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Technical analysis of NZD/USD for July 12, 2016

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NZD/USD is expected to trade in a higher range as intraday support lies at 0.7240. The level at 0.7240 (a level of over-lapping support and resistance) is providing the key support to the pair and maintaining the bullish intraday outlook. While the pair was rebounding from 0.7330, the relative strength index landed on the neutrality level of 50 and now it is rising up, calling for further upward momentum for the pair. As long as the bullish bias is maintained, the pair could retest the first upside target at 0.7330.

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

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Technical analysis of GBP/JPY for July 12, 2016

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GBP/JPY is expected to trade at a higher range. Bias remains bullish. The pair broke above the previous declining trend channel, and it is accelerating on the upside. The relative strength index stays above 50. Further bounce is expected with 137.60 and 139.00 as targets.

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 137.60 and the second one, at 139.00. In the alternative scenario, short positions are recommended with the first target at 133.70 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 133.00. The pivot point is at 134.85.

Resistance levels: 137.60 , 139.00 , 139.85

Support levels: 133.70 , 133.00 , 132.15

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Gold analysis for July 12 , 2016

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Since our previous analysis, gold has been trading downwards. The price tested the level of $1,350.21 in an ultra high volume. According to the 30M time frame, I found a bullish engulfing candle pattern in a high volume from the support at the price of $1,350.60. I am expecting higher price. Be careful when selling and watch for buying opportunities. The first take profit level is set at the price of $1,357.50. The second take profit level is set at the price of $1,359.90.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,367.20

R2: 1.371.50

R3: 1,378.90

Support levels:

S1: 1,353.00

S2: 1,348.50

S3: 1,341.30

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

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Technical analysis of USD/CHF for July 12, 2016

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Overview:

  • The USD/CHF pair:
  • Pivot point: 0.9789.
  • The USD/CHF pair broke resistance at the 0.9738 level, which turned into strong support yesterday. This level coincides with 50% of Fibonacci retracement that is expected to act as major support today. Equally important, the RSI is still signaling that the trend is upward, while the moving average (100) is headed to the upside. Accordingly, the bullish outlook remains the same as long as the EMA 100 is pointing to the uptrend.
  • Since the trend is above the 50% Fibonacci level, the market is still in an uptrend. Therefore, the USD/CHF pair is continuing with a bullish trend from the new support of 0.9738. The current price is set around the spot of 0.9789 that acts as a daily pivot point seen at 0.9789. Equally important, the price is in the bullish channel. According to the previous events, we expect the USD/CHF pair to move between 0.9738 and 0.9862. Therefore, strong support will be formed at the level of 0.9789 providing a clear signal to buy with the target seen at 0.9862. If the trend breaks the support at 0.9862 (the first resistance), the pair will move upwards continuing the development of the bullish trend to the level of 0.9902 in order to test the daily resistance 2. In the same time frame, resistance is seen at the levels of 0.9862 and 0.9902. However, the stop loss should always be taken into account for that it will be reasonable to set your stop loss at the level of 0.9738 (below the support 2).
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Elliott wave analysis of EUR/NZD for July 12 - 2016

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Wave summary:

There is minor correction. We were looking for a move higher to 1.5336 before turning lower again.

In the short term, we will be looking for minor resistance at 1.5261 to protect the upside for more downside pressure to 1.5070 and below for a continuation lower towards 1.4490 as the ideal downside target.

Trading recommendation:

We are short on the EUR from 1.5500 and will move our stop lower to 1.5350 securing a profit no matter what happens. If you are not short on the EUR yet, then sell at 1.5260 and use the same stop at 1.5350.

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Elliott wave analysis of EUR/JPY for July 12 - 2016

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Wave summary:

The break above 113.31 indicates that a more complex correction in wave iv is unfolding. The first possible target for wave iv is seen at 115.39, but wave iv could make it all the way to 116.78 before completing and turning lower in wave v of (v) towards the ideal long term corrective target at 106.39.

A short-term break below 113.29 indicates that wave iv is completed and wave v lower is developing.

Trade recommendations:

Our stop at 112.65 was hit for a nice little profit. We will be looking for a new sell opportunity at 116.65 with stop placed at 117.00.

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Global macro overview for 12/07/2016

Global macro analysis for 12/07/2016:

After the NFP Payrolls data revealed on Friday another figures from the US job market were published. The Labor Market Condition Index (LMCI), that is prepared by the Fed, continued to slow in June but at more moderate pace. The index showed a 1.9 point decline in June compared to a revised drop of 3.6 points in the previous month. This decline was the sixth in a row, so the disappointing downtrend is still continuing. In conclusion, despite the very good NFP figures, the US job market does not show a sustained improvement and it will need more good data in the coming months to convince the Fed's policymakers to hike the interest rate again this year.

Let's now take a look at the EUR/USD technical picture in the 4H time frame. After the NFP data the marked decreased a little, but still the bull and bear cams are fighting to take the control over this market. The next support is seen at the level of 1.1000 and the next resistnace is seen at the level of 1.1185.

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Global macro overview for 12/07/2016

Global macro analysis for 12/07/2016:

The UK Retail Sales data published after the Brexit showed that the country is starting to struggle after this historical decision. The British Retail Consortium-KPMG Retail Sales Monitor that provides an overview of the retail industry performance plunged 0.5% in the 12 months through June following a 0.5% expansion the previous month. This kind of data might suggest that British consumers might have started to tighten the belt due to uncertain economic outlook.

Let's now take a look at the GBP/USD technical picture in the 4H time frame. Bulls are trying to rally, but so far they have managed to get to the nearest resistance at the level of 1.3116 and the rally was capped by 55 moving average. The outlook is still bearish, but the corrective occasional rally upward might provide excellent opportunity to open short positions.

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Technical analysis of USDX for July 12, 2016

The US dollar index reached the previous high and resistance at 96.70 and got rejected. Price is pulling back towards the short-term support of 96.10.

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Black line - support trend line

The dollar index is above the 4-hour Kumo (cloud) and is pulling back after being rejected at its previous high. This pullback needs to find support at 96.10 or at least 95.80 otherwise we could see a deeper pullback towards the 61.8% Fibonacci retracement.

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Red line - resistance (broken)

The weekly candle is still inside the weekly Kumo and above the red trend line resistance. Price is now at the lower cloud boundary and bulls need a weekly close above it. A weekly close out and below the Kumo (cloud) will be a bearish sign that would turn me bearish for the short-term on the dollar. Weekly support is at 96.25 and next is at 94.90. Resistance is at 96.70 and next, at 97.65.

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Technical analysis of Gold for July 12, 2016

Gold price pulled back towards the short-term support level of $1,350. As long as the price stays above it we could see another move higher towards $1,400. A deeper correction is not out of the question as the expanding triangle scenario is still valid.

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After the upward move to $1,375 Gold price pulled back and retraced 61.8% of the rise after the NFP announcement and is also approaching the 4-hour cloud support. Support is at $1,350 and if it breaks we could see a deeper correction below $1,335 last Friday's lows.

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The weekly candle is a rejection candle that could at least pull back the price towards $1,280 if the expanding triangle scenario plays out. Even if Gold price retraces back towards $1,200 the longer-term reversal signal will remain valid. So it is a matter of a short-term risk and position management.The material has been provided by InstaForex Company - www.instaforex.com

Silver Technical Analysis for July 12, 2016.

Technical outlook and chart setups:

Silver is seen to be trading at $20.36 levels, a bit lower than yesterday. The metal could be looking to form a base around $19.70/80 levels before rallying further. The wave structure indicates that the metal is probably in its final leg (rally) before turning lower. The final push could print fresh highs around $21.50 levels, before the metal reverses for a meaningful retracement lower. Also note that after $19.20/25 lows formed last week, the price has found support off the fibonacci 0.382 levels as depicted here, and bulls are expected to remain in control at least in the short term. It is hence recommended to exit short positions now and look to initiate long positions at $19.70/80 levels with risk at $19.00 levels. Immediate support is seen at $19.20 levels while resistance is seen at $21.50 levels respectively.

Trading recommendations:

Exit short positions now at $20.30/33. Look to go long at $19.70/80, stop at $19.00, target $21.00.

Good luck!

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

Gold Technical Analysis for July 12, 2016.

Technical outlook and chart setups:

Gold is trading lower for the day at $1,355.00 level at this moment, and should be looking to reverse lower from here or from $1,380.00/85.00 levels as depicted on the chart view. Please note that if the metal slips below $1,358.00 levels from here, it would be confirm that a meaningful top is in place at $1,375.00 levels. On the other hand, a rally from here should meet stiff resistance at $1,380.00/81.00 levels. It is hence recommended to remain short, with risk above $1,385.00 levels for now. Immediate resistance is seen at $1,380.00 levels, while support is at $1.350.00 levels respectively. In either case, please watch for a bearish reversal soon and expect bears to remain in control at least in the medium term.

Trading recommendations:

Remain short, stop above $1,385.00/86.00, target is open.

Good luck!

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

NZD/USD Intraday technical levels and trading recommendations for July 12, 2016

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

In February and March, signs of a bearish rejection (triple-top reversal pattern) were expressed around the price level of 0.6750 until April when a bullish breakout above 0.6750 and 0.6860 was executed.

Later 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, an obvious bearish closure below 0.6750 was achieved on May 24.

On May 30, an obvious bullish rejection was expressed around the price level of 0.6675 (the lower limit of the depicted channel). That's why the recent bullish breakout is taking place above 0.6860.

As long as the NZD/USD pair kept trading above 0.6860, further bullish advance was expected towards the price zone around 0.7200 (the upper limit of the depicted channel).

Price action should be watched around the price zone of 0.7150 - 0.7200 (the upper limit of the depicted channel) for a valid SELL entry (a recent Head and Shoulders reversal pattern is being expressed on the chart).

T/P levels should be located at 0.6970, 0.6900 and 0.6850. S/L should be placed above 0.7260.

On the other hand, the price zone between 0.6760 - 0.6860 constitutes a significant support zone to offer a bullish rejection and a valid BUY entry if any bearish swing persists below 0.7000.

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USD/CAD intraday technical levels and trading recommendations for July 12, 2016

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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 be considered as 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 for 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.

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Intraday technical levels and trading recommendations for GBP/USD for July 12, 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 and a bullish engulfing weekly candlestick on February 26.

Bullish fixation above 1.4670 allowed for further bullish advancement initially towards 1.4950 (Weekly Supply) where a 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 a bullish recovery.

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

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EUR/AUD Weekly View

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Trading recommendations:

Buy above 1.4520

Take profit at 1.5240

Stop loss at 1.4000

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AUD/NZD Trading Recommendation for 12th July 2016

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Trading recommendations:

Sell now or when stochastics breaks 76% support

First take profit at 1.0380

Second take profit at 1.0310

Stop loss at 1.0500

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

Intraday technical levels and trading recommendations for EUR/USD for July 12, 2016

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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, the 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 the 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).

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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 a bearish rejection and a valid SELL entry were previously suggested. That's why an obvious bearish breakdown of 1.1200 took place on June 16.

However, the 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 are 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 for a quick bearish decline towards 1.0820 where price action should be considered.

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Technical analysis of EUR/JPY for July 12, 2016

General overview for 12/07/2016:

There is a possibility that the market has made a truncated fifth wave that terminated at the level of 110.83. This wave has been labeled as wave (a), so wave (b) is now developing to the upside. The (b) wave should reach the level of 114.76 or even extend a little higher to the level of 115.48 before it will resume the downtrend. A breakout below the intraday support at the level of 113.36 will be the first clue that the top for the wave (b) is in place.

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 Support

114.76 - Intraday Resistnace

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 anticipated. New sell orders can be opened if the level of 110.83 is violated.

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Technical analysis of USD/CAD for July 12, 2016

General overview for 12/07/2016:

Another marginal higher high has been made as 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

1.3138 - Intraday Resistance

1.3118 - Wave (i) Top

1.3089 - Intraday Support

1.3002 - Weekly Pivot

1.2918 - WS1

1.2876 - Technical Support

1.2829 - Invalidation Level

Trading recommendations:

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

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Technical analysis of EUR/USD for July 12, 2016

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When the European market opens, some economic news will be released such as the German WPI m/m and German Final CPI m/m. The US will release economic data, too, such as the 10-y Bond Auction, Wholesale Inventories m/m, JOLTS Job Openings, and NFIB Small Business Index. So amid the reports, EUR/USD will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Breakout BUY Level: 1.1111.

Strong Resistance: 1.1105.

Original Resistance: 1.1094.

Inner Sell Area: 1.1083.

Target Inner Area: 1.1057.

Inner Buy Area: 1.1031.

Original Support: 1.1020.

Strong Support: 1.1009.

Breakout SELL Level: 1.1003.

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 12, 2016

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In Asia, Japan will release the Tertiary Industry Activity m/m and 30-y Bond Auction, PPI y/y. The US will release some economic data such as the 10-y Bond Auction, Wholesale Inventories m/m, JOLTS Job Openings, and NFIB Small Business Index. So there is a probability the USD/JPY will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Resistance. 3: 103.58.

Resistance. 2: 103.37.

Resistance. 1: 103.02.

Support. 1: 102.90.

Support. 2: 102.69.

Support. 3: 102.48.

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 major pairs for July 12, 2016

EUR/USD: This pair moved essentially sideways yesterday, 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.

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USD/CHF: This market is yet to go above 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 is the expected stamina in CHF this month, coupled with the possibility that USD could also lose strength this week or next.

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GBP/USD: GBP/USD only moved sideways on Monday – in the context of a dominant bearish outlook. We could see a strong rally in the context of a downtrend this week. The expected rally would not be strong enough to push the price beyond the high of June 23, 2016. The bearish movement appears to have thinned out in the short term.

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USD/JPY: This currency trading instrument went upwards 250 pips on July 11, 2016. With an additional bullish movement of 300 pips, the bias would turn bullish, and there would have been a Bullish Confirmation Pattern in the market by then. However, there is still a possibility of a bearish movement this week.

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EUR/JPY: This cross also went upwards by 250 pips yesterday, but the bias remains bearish. A movement of another 300 pips to the upside would result in a clear bullish signal in the market. However, there is also a possibility of further bearish movement before the end of the week.

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Daily analysis of USDX for July 12, 2016

USDX is still blocked by the barrier around the 96.60 level, where a breakout should be expected to extend the rally towards the 97.74 level, which is the immediate resistance for the Index. However, a pullback could drive it to test the 200 SMA again on the H1 chart, where another rebound can happen, as a sideways range is still trapping the Index.

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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.

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Daily analysis of GBP/USD for July 12, 2016

GBP/USD is facing a strong resistance around the psychological zone of 1.3000, where the bulls lost momentum after being favoured by the recent headlines about Theresa May as the new UK Prime Minister. Currently, a breakout above that level isn't discarded as the Cable remains strongly supported by the 1.2858 level. If that happens, then the next hurdle could be the 200 SMA.

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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.

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