USD/CAD intraday technical levels and trading recommendations for July 18, 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 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.

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NZD/USD Intraday technical levels and trading recommendations for July 18, 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 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, obvious bearish closure below 0.6750 was achieved on May 24.

On May 30, 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 advancement was expected towards the price zone around 0.7200 (the upper limit of the depicted channel).

The price action should have been watched around the price zone of 0.7150 - 0.7200 (the upper limit of the depicted channel) for a valid SELL entry. T/P levels should be located at 0.6970, 0.6900, and 0.6850. S/L should be lowered to 0.7190.

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 the current bearish swing extends below 0.7000.

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Intraday technical levels and trading recommendations for GBP/USD for July 18, 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 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, by the end of June, a significant bearish breakdown below 1.3550 was expressed as depicted on the 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.

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Intraday technical levels and trading recommendations for EUR/USD for July 18, 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, 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).

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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 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.

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EUR/NZD analysis for July 18, 2016

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Recently, EUR/NZD has been moving upwards. The price tested the level of 1.5635 in an ultra high volume due to weaker CPI report in New Zealand. According to the 30M time frame, I found strong reaction from buyers. Anyway, the price managed to do a downward correction and price tested the level of 1.5510 (Fibonacci retracement 61.8%). Selling at this stage looks risky. I have placed the Fibonacci expansion to find potential upward targets. I got the Fibonacci expansion 61.8% at the price of 1.5625, Fibonacci expansion 100% at the price of 1.5695, and Fibonacci expansion 161.8% at the price of 1.5810. Watch for buying opportunities on the dips. Anyway, if the price breaks the level of 1.5510, we may see lower price.

Fibonacci Pivot Points:

Resistance levels:

R1: 1.5555

R2: 1.5586

R3: 1.5640

Support levels:

S1: 1.5440

S2: 1.5405

S3: 1.5350

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

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Gold analysis for July 18 , 2016

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Since our previous analysis, gold has been trading sideways at the price of $1,325.35. According to the 30M time frame, I found weakness and that price is respecting the 21SMA, which is sign that buying looks risky. My advice is to watch for selling opportunities on the pullbacks. The first take profit level is set at the price of $1,320.00 (swing low). Anyway, if the price breaks the level of $1,320.00 in a high volume, we may see potential testing of $1,316.50. The trend is downward. So, I expect a downward continuation.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,336.75

R2: 1.338.60

R3: 1,341.60

Support levels:

S1: 1,330.70

S2: 1,328.85

S3: 1,325.80

Trading recommendations for today: Buying looks risky, watch for selling opportunities.

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Technical analysis of GBP/USD for July 18, 2016

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Overview:

  • The GBP/USD pair is showing signs of strength following a breakout of the highest level of 1.3138. On the H1 chart, the level of 1.3138 coincides with 50% of Fibonacci, which is expected to act as minor support today. Since the trend is above the 50% Fibonacci level, the market is still in an uptrend. Furthermore, the trend is still showing strength above the moving average (100). Hence, major support is seen at the level of 1.3138 today. Thus, the market is indicating a bullish opportunity above the above-mentioned support levels, for that the bullish outlook remains the same as long as the 100 EMA is heading to the upside. Therefore, strong support will be found at the level of 1.3138 providing a clear signal to buy with a target seen at 1.3334. If the trend breaks the minor resistance at 1.3334, the pair will move upwards continuing the bullish trend development to the level of 1.3399 in order to test the daily resistance 2. Another resistance is seen at the price of 1.3480, which coincides with the double top in the same time frame. This week we expect that the GBP/USD pair will move between the levels of 1.3138 and 1.3480 (around 300 - 342 pip). However, it would also be save to consider where to place a stop loss; this should be set below the second support of 1.3057.
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Technical analysis of EUR/USD for July 18, 2016

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Overview:

  • The EUR/USD pair continues moving in a bearish trend from the resistance level of 1.1071. Currently, the price is in a bearish channel in the H1 time frame. This is confirmed by the RSI indicator signaling that we are still in a bearish trending market. As the price is still below the moving average (100), immediate support is seen at 1.1044, which coincides with the ratio 23.6% of Fibonacci retracement. Consequently, the first support is set at the level of 1.1023. So, the market is likely to show signs of a bearish trend around the spot of 1.1044 - 1.1023. In other words, sell orders are recommended below the level of 1.1044 with the first target at the level of 1.1023. Furthermore, if the trend is able to break out through the first support level of 1.1023. We should see the pair falls towards the double bottom (1.1001) to test it. It would also be wise to consider where to place stop loss; this should be set above the first resistance of 1.1093. Also, it should be noted that the pivot point is seen at the price of 1.1071 (horizontal blue line) today.
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Technical analysis of GBP/JPY for July 18, 2016

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GBP/JPY is under pressure as the key resistance is at 138.30. European stocks were broadly lower, with the STOXX Europe 600 falling 0.2%. GBP/USD plunged 1.1% to 1.3191 (a day high at 1.3480) after Bank of England Chief Economist Andrew Haldane pointed out that the central bank should come up with a package of monetary policy easing measures in its rate-setting meeting on August 4. Meanwhile, the UK's FTSE 100 gained 0.2%. The pair broken below the 50-period moving average and remains under pressure below its key resistance at 138.30. Meanwhile, the relative strength index lacks upward momentum. As long as 138.30 holds as the key resistance, a drop towards 136.40 is possible.

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 141.70 and the second one, at 142.45. In the alternative scenario, short positions are recommended with the first target at 136.40 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 142.45. The pivot point is at 138.30.

Resistance levels: 141.70, 142.45, 143.50

Support levels: 136.40, 134.95, 134

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Technical analysis of USD/JPY for July 18, 2016

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USD/JPY is expected to trade with bullish bias. The pair gapped up at today's open, breaking above the key resistance at 105.10 and turning the intraday outlook bullish. Currently, the pair is trading around the 20-period (30-minute chart) moving average. Meanwhile, the intraday relative strength index landed on the neutrality level of 50, showing a lack of downward momentum for the pair. As long as the level at 105.10 (around the low of July 15) holds as the key support, the pair could retest the first upside target at 106.30 (around the high of July 15).

Market Commentary :

On Friday, the Dow Jones Industrial Average added 10 points to another record-high of 18,516, extending a streak of the record closing-levels to 4 straight sessions. On the other hand, the S&P 500 declined 0.1% to 2,161 after marking fresh all-time highs in the prior four sessions. The Nasdaq Composite was also down 0.1% to 5,029. Materials and utilities shares advanced, while consumer discretionary, financial, and technology shares declined.

European stocks were broadly lower, with the STOXX Europe 600 falling 0.2%. Meanwhile, the U.K.'s FTSE 100 gained 0.2%.

On the economic front, in the US, retail sales grew 0.6% month-on-month in June (vs. +0.1% expected), CPI rose 0.2% month-on-month (vs. +0.3% expected) and 1.0% year-on-year (vs. +1.1% expected) in June, industrial production increased 0.6% month-on-month in June (vs. +0.3% expected), the New York Fed's Empire Manufacturing Index posted 0.55 in July (vs. 5.00 expected), and the University of Michigan Consumer Sentiment Index was at 89.5 in July (vs. 93.5 expected).

The benchmark US 10-year Treasury yield rose to 1.597% from 1.529% on Thursday. Nymex crude oil climbed 0.6% to $45.95 a barrel. Gold edged up 0.2% to $1,337 an ounce (one-day low at $1,322), while silver slid 0.5% to $20.20 an ounce (one-day low at $19.96).

On forex trading, the US dollar firmed up against most major currencies. GBP/USD plunged 1.1% to 1.3191 (a day high at 1.3480) after Bank of England Chief Economist Andrew Haldane pointed out that the central bank should come up with a package of monetary policy easing measures in its rate-setting meeting on August 4.

EUR/USD fell 0.8% to 1.1034 (intraday day high at 1.1148), while USD/JPY was down 0.5% to 104.83. As a result ,the ICE Dollar Index gained 0.5% to 96.58.

Commodities-linked currencies were broadly weaker against the greenback. The Canadian dollar halted a 3-day winning streak with USD/CAD rebounding 0.6% to 1.2968. AUD/USD fell 0.7% to 0.7577. NZD/USD plunged 1.2% to 0.7109, losing a total of 2.6% or 186 pips in a 3-day losing streak.

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 106.30 and the second one, at 107.00. In the alternative scenario, short positions are recommended with the first target at 104.60 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 103.90. The pivot point is at 105.10.

Resistance levels: 106.30, 107.00, 107.45

Support levels: 104.60, 103.90, 103

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Technical analysis of USD/CHF for July 18, 2016

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USD/CHF is expected to prevail its upside movement. The pair accelerated on the upside after it broke above a descending trend line and is likely to challenge the nearest resistance at 0.9855. The relative strength index is bullish above its neutrality area at 50 and shows upside momentum. The rising 50-period moving average is playing a support role. On the economic front, in the US, retail sales grew 0.6% month-on-month in June (vs. +0.1% expected), CPI rose 0.2% month-on-month (vs. +0.3% expected), and 1.0% year-on-year (vs. +1.1% expected) in June, industrial production increased 0.6% month-on-month in June (vs. +0.3% expected), the New York Fed's Empire Manufacturing Index posted 0.55 in July (vs. 5.00 expected), and the University of Michigan Consumer Sentiment Index was at 89.5 in July (vs. 93.5 expected).

As long as 0.9780 is support, look for further upside movement towards 0.9875 and even 0.99 in extension.

Resistance levels: 0.9875, 0.9900, 0.9945

Support levels: 0.9760, 0.9735, 0.9700

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

Technical analysis of NZD/USD for July 18, 2016

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NZD/USD is expected to prevail its downside movement. The pair broke below the lower boundary of a bearish channel, which confirms a negative view. In addition, the relative strength index is below its neutrality area at 50 and lacks upward momentum. Besides, both the 20-period and 50-period moving averages are heading downwards and play resistance roles. To sum up, as long as 0.7155 holds as the resistance, the pair is likely to drop to 0.7035 at first, and then even to 0.6965.

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 0.7035. A break below this target will move the pair further downwards to 0.6965. The pivot point stands at 0.7155. 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 0.7190 and the second one, at 0.7215.

Resistance levels: 0.7190, 0.7215, 0.7250

Support levels: 0.7035, 0.6965, 0.6915

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

Technical analysis of USDX for July 18, 2016

The US dollar index continues trading sideways. The price reversed upwards late on Friday night after the attempted coup in Turkey as investors fled to the safety of the dollar. However, price has not managed to break above 96.70 where we have a triple top.

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Blue lines - sideways channel

Red lines - longer-term trading range

The dollar index made a triple top at 96.70 and a rejection here will surely push it towards 95.50 and most probably even lower if the lower boundary is broken. The short-term support is at 96.30. If resistance is broken we should expect a sharp rise towards 97.70.

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Red line - resistance (broken)

The weekly candle of last week tested support by the kijun-sen (yellow line indicator) and reversed higher mainly because of the coup attempt in Turkey last Friday. Price closed inside the weekly Kumo and this week starts with trading right on the lower boundary of the weekly Kumo. Resistance is at 96.70 and support, at 95.80.

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Technical analysis of Gold for July 18, 2016

Gold price remains in a bearish short-term trend but also inside the upward sloping channel since $1,300. Gold price is approaching the medium-term support at $1,320-$1,300. Gold could bounce this week towards $1,350 and as long as it trades above $1,300 here is still hope for a new higher high near $1,400.

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Blue lines -bullish channel

Gold price is below the Ichimoku cloud (Kumo) and it is testing the lower channel boundary. Support is at $1,320 (channel) and at $1,310 (38% Fibonacci retracement). The short-term resistance is at $1,340 and next at $1,360.

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Gold price is showing weekly reversal signals targeting the first weekly tenkan-sen (red line indicator) at $1,280 with most probable pullback targeting the weekly Kumo around $1,180. However, we should keep in mind that the upside might still not be over as long as price is above $1,300.The material has been provided by InstaForex Company - www.instaforex.com

Daily analysis of major pairs for July 18, 2016

EUR/USD: This currency trading instrument went flat throughout last week, without going above the resistance line at 1.1200, nor going below the support line at 1.1000. A breakout is imminent this week, which would most probably be in favor of bulls. This means that the resistance line at 1.1200 could be broken to the upside this week.

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USD/CHF: This pair is still making effort to trend upwards, though it came under a serious challenge on Wednesday and Thursday. Bulls need to prevent the price from moving below the support level at 0.9700 – an event that could cause a "sell" signal to form in the market. There are other two challenges to this pair this week: USD could become weak and CHF could amass some stamina. All these threats could result in a "sell" signal this week.

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GBP/USD: This pair moved upwards by 550 pips last week, just like other GBP pairs (GBP/NZD moved upwards by 1100 pips, while GBP/JPY moved upwards by 1300 pips, all in last week). Further bullish movement is expected this week, which could result in a bullish signal in case the price goes upwards by another 500 pips. However, it would take a long time before the bias on daily and weekly charts become bullish.

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USD/JPY: Contrary to expectations at the beginning of last week, USD/JPY, just like other JPY pairs, moved upwards significantly. USD/JPY moved upwards by 560 pips last week, getting corrected lower on Friday. This week, the price would either move above the supply level at 106.00 or go below the demand level at 103.00.

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EUR/JPY: The EUR/JPY cross went upwards by 700 pips last week, reaching the supply zone at 118.00. The price got corrected by 220 pips on Friday, although that has not violated the Bullish Confirmation Pattern on the 4-hour chart. The price could go upwards from here, but that does not rule out the possibility of bearish threats.

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Global macro overview for 18/07/2016

Global macro overview for 18/07/2016:

On a slow day for economic news, today's monthly update of the US Housing Market Index will draw close attention in the wake of last week's upbeat numbers for the world's biggest economy. According to the National Association of Home Builders, the Housing Market Index increased to 60 points last month, a five-month high. For the last four months, the index remained unchanged at the level of 58, so the sentiment towards the home-building industry is pointing to stable and perhaps modestly stronger growth.

Let's now take a look at the EUR/USD technical picture on the 4H time frame, before the news release. The price is testing the short-term dashed trend line around the level of 1.1060 as the bear camp is trying to break out from the congestion zone and trade lower. The consecutive lower highs and lower lows sequence is supporting the bearish outlook for now. The key resistance is seen at the level of 1.1185 and the key support, at the level of 1.0911.

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Global macro overview for 18/07/2016

Global macro overview for 18/07/2016:

The market reaction to the attempted coup in Turkey was rather predictable. In most of the situations like this, the "fly to safe-heaven" behaviour is taking place all across the market board. It means that the assets like gold, the yen, US dollar and Swiss franc are being bought and risky assets, like the euro and main indices, are being sold. During the weekend, the situation in Turkey has somewhat stabilised and the military attempt to take over power was stopped. Currently, the markets are waiting for President Erdogan to deal with the situation effectively, but due to extremely fragile post-Brexit sentiment, geopolitical events of this nature expose market investors to short-term overreaction effects.

The best example of this overreaction effect is USD/TRY price action after the information of the coup were transmitted by the mass media, so let's take a look at the technical picture of this pair. The big up candle with low at the level of 2.8738 and high at the level of 3.0491 is the coup candle. Since that event is now gone, the price is slowly falling towards the nearest support around the 2.9300 level. Moreover, there is a cluster of moving averages around this zone as well, so it should provide good dynamic support for the market. At the larger time frame charts, weekly and monthly, the trend is still up, so bullish price action is being expected for now. The next important support is seen at the level of 2.7564 and the next important resistance, at the level of 3.0737.

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Technical analysis of EUR/JPY for July 18, 2016

General overview for 18/07/2016:

The market is still trading in a narrow congestion zone between the intraday support at the level of 116/29 and intraday resistance at the level of 118.40. The anticipated wave b is currently unfolding, and a choppy wave development is expected during this cycle. The key level to the downside is a technical support at the level of 114.75.

Support/Resistance:

122.91 - WR2

122.67 - Technical Resistance

120.11 - WR1

118.40 - Intraday Resistance

116.39 - Intraday Support

115.54 - Weekly Pivot

114.75 - Technical Support

112.85 - WS1

110.83 - Technical Support

Trading recommendations:

Due to the unclear outlook, investors should refrain from trading and wait for a better trading setup to occur shortly.

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Elliott wave analysis of EUR/NZD for July 18 - 2016

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Wave summary:

Our warning of a possible low in wave C already in place at 1.5072 if the minor resistance near 1.5455 was broken seems to have been well placed. We have seen this minor resistance line being broken as it wasn't there at all calling for more upside pressure towards 1.5722 to complete wave i and set the stage for a correction in wave ii closer to 1.5335 before moving higher again.

In the short term, we will ideally see minor support at 1.5482 protect the downside for a rally closer to 1.5722. A break below 1.5482 will be the first indication that wave i is in place and wave ii is unfolding.

Trading recommendation:

Our stop+reverse at 1.5475 was hit. We are long in EUR at 1.5475 and will place our stop at break-even and take profit at 1.5700. Then we will wait for the possibility to re-buy EUR near 1.5335.

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

Technical analysis of USD/CAD for July 18, 2016

General overview for 18/07/2016:

The wave progression is evolving towards a more complex and time-consuming pattern that looks choppy, full of whipsaws and false breakouts. It is still quite unclear whether the current downside wave pattern has been completed or not as none of the key levels has been clearly violated. To continue to the upside, the price would have to break out above the golden trend line and weekly pivot around the level of 1.2972. On the other hand, any violation of the intraday support at the level of 1.2860 will result in an immediate test of the next support at the level of 1.2829.

Support/Resistance:

1.2087 - WS1

1.2860 - Intraday Support

1.2972 - Weekly Pivot

1.2987 - Intraday Resistance

1.3085 - WR1

1.3138 - Local High

Trading recommendations:

Due to the unclear outlook, investors should refrain from trading and wait for a better trading setup to occur shortly.

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Elliott wave analysis of EUR/JPY for July 18 - 2016

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Wave summary:

The rally of the 109.48 low does display an impulsive structure, but we are not out of the woods yet. Only a firm break above important resistance at 122.00 will confirm that a long-term corrective low is in place at 109.48 and a new long-term impulsive rally is developing.

In the short term, we expect to see more correction in wave [ii] closer to 114.88 from where a new impulsive rally above 122.00 is likely for a move closer to 126.45.

That said, we cannot exclude the bearish case completely yet, and the risk remains for a break below the support line near 111.85 that will call for a new low below 109.48 closer to 106.50.

Trading recommendation:

Our stop at 115.30 was hit for a small loss. We will re-buy EUR at 115.00 with stop placed at 113.25.

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

Gold Technical Analysis for July 18, 2016.

Technical outlook and chart setups:

Gold is seen to be trading lower at $1,327.00/28.00 levels at this moment, looking to complete an impulse (5 waves) by dropping towards $1,313.00 levels at least. The metal should remain good to be sold on rallies, till prices stay below $1,375.00 levels. The wave structure indicates that the yellow metal seems to have completed its rally from $1,046.00 through $1,375.00 in 5 waves earlier. It is now expected to correct lower in 3 waves, and $1,250.00 should be the first potential downside target. It is hence recommended to remain short now and also look to add further on rallies, till prices remain below $1,375.00 levels. Immediate support is seen at $1,300.00/10.00 levels, while resistance is at $1,375.00 levels respectively.

Trading recommendations:

Remain short now, stop at $1,385.00, target at least $1,250.00 levels.

Good luck!

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

NZD/USD Trading Recommendations 18th June 2016

NZD/USD has reintegrated back into our channel, and we're seeing a strong drop from here to the 0.6720 level. We can see that the stochastic has reacted off the 92% resistance and has also developed a bearish divergence, which adds stronger conviction of our drop from here. Our stop loss is at 0.7400, which is fractal resistance.

analytics578c47394cbe0.png

Trading Recommendations:

Sell now

Stop loss at 0.7400

Take profit at 0.6960 before 0.6720

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

AUD/NZD Trading Recommendation for 18th July 2016

AUD/NZD has triggered a strong bullish movement up towards the top of our channel again. It has crossed a key fibonacci retracement and fractal resistance at 1.0550 signalling a recovery is to come towards 1.1070. Our RSI (34) configuration also shows the RSI crossing above a descending resistance line and horizontal resistance at 44% giving us further conviction of a rise from here.

analytics578c468d4a287.png

Trading Recommendations:

Buy now

Stop loss at 1.0550

Take profit at 1.1070

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

Technical analysis of EUR/USD for July 18, 2016

!!!_EURUSD.jpg

When the European market opens, some economic news will be released such as the German Monthly Report. The US will release economic data too such as TIC Long-Term Purchases and the NAHB Housing Market Index. So amid the reports, EUR/USD will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Breakout BUY Level: 1.1109.

Strong Resistance: 1.1103.

Original Resistance: 1.1092.

Inner Sell Area: 1.1081.

Target Inner Area: 1.1055.

Inner Buy Area: 1.1029.

Original Support: 1.1018.

Strong Support: 1.1007.

Breakout SELL Level: 1.1001.

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 18, 2016

2_USDJPY.jpg

In Asia, today Japan will not release any economic data, but the US will release some economic data such as TIC Long-Term Purchases and the NAHB Housing Market 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: 105.97.

Resistance. 2: 105.76.

Resistance. 1: 105.55.

Support. 1: 105.30.

Support. 2: 105.09.

Support. 3: 104.88.

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 July 18, 2016

USDX is looking to trade higher during this week, as it's attempting to break last week's lows, and the next focus could be on the 97.74 level in a short-term view. If the Index manages to do a pullback at the current stage, then it can decline to the 95.89 level, where a breakout should open the doors to test the 95.20 level. The MACD indicator is reaching overbought conditions and favouring that scenario.

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 18, 2016

The bears are still in control of the Cable's current trend on a short-term basis, as it has been trading below the 1.3200 level, and now we can see that support can be found at the 1.3148 level. However, our bullish outlook remains alive, as GBP/USD is still struggling very close to the 200 SMA on the H1 chart, and one can expect a rebound towards the 1.3300 level.

GBPUSDH1.png

H1 chart's resistance levels: 1.3000 / 1.3406

H1 chart's support levels: 1.3148 / 1.3001

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 1.3300, take profit is at 1.3406 and stop loss is at 1.3193.

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