Gold analysis for July 19 , 2016

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Since our previous analysis, gold has been trading sideways at the price of $1,329.50. According to the 30M time frame, I found buying climax and successful testing of demand in a low volume, which is a sign that buying gold at this stage looks risky. I found trading range between the price of $1,320.00 (support) and $1,338.75. Anyway, sellers are in control at this stage. Watch for selling opportunities on the pullbacks. The first target is set at the price of $1,323.50.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,333.25

R2: 1.335.30

R3: 1,338.65

Support levels:

S1: 1,326.50

S2: 1,324.40

S3: 1,321.00

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

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EUR/NZD analysis for July 19, 2016

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Recently, EUR/NZD has been moving upwards. The price tested the level of 1.5768 in the average volume. My second upward target at the price of 1.5700 has been reached. Anyway, sellers came in to the market and I found a change in the trend behavior from bullish to bearish. Be careful when buying at this stage and watch for selling opportunities. Targets are set at the price of 1.5635 and 1.5545.

Fibonacci Pivot Points:

Resistance levels:

R1: 1.5620

R2: 1.5670

R3: 1.5750

Support levels:

S1: 1.5460

S2: 1.5410

S3: 1.5330

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

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NZD/USD Intraday technical levels and trading recommendations for July 19, 2016

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Bullish persistence above 0.6550 (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 is 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 (upper limit of the depicted channel).

The price action should have been watched around the price zone of 0.7150 - 0.7200 (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 0.7150.

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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USD/CAD intraday technical levels and trading recommendations for July 19, 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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Intraday technical levels and trading recommendations for GBP/USD for July 19, 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.

A bearish decline should be expected towards 1.2700 (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 19, 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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Technical analysis of NZD/USD for July 19, 2016

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Overview:

  • The NZD/USD pair dropped sharply from the level of 0.7076 towards 0.7030. Now, the price is set at 0.7030 to act as a daily pivot point. It should be noted that volatility is very high for that the NZD/USD pair is still moving between 0.7076 and 0.7000 in coming minutes. Furthermore, the price has been set below the strong resistance at the levels of 0.7076 and 0.7185, which coincides with the 61.8% and 78.6% Fibonacci retracement level respectively.
  • Additionally, the price is in a bearish channel now. Amid the previous events, the pair is still in a downtrend. From this point, the NZD/USD pair is continuing in a bearish trend from the new resistance of 0.7076. Thereupon, the price spot of 0.7076 remains a significant resistance zone. Therefore, a possibility that the NZD/USD pair will have downside momentum is rather convincing and the structure of a fall does not look corrective. So, sell below 0.7076 with the first targets at 0.7000 and 0.6923. However, the stop loss should be located above the level of 0.7185.
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Global macro overview for 19/07/2016

Global macro overview for 19/07/2016:

The ZEW Economic Sentiment data for eurozone was released and it was worse than expectations. According to the Center for European Economic Research, the experts evaluated the economy was worse than the last time. The Economic Sentiment index entered a negative territory printing -6.8 points vs. 8.2 points expected and 19.2 points prior. Moreover, the Current Situation index dipped below the fifty mark with only 49.8 points released (vs. 51.8 expected and 54.5 prior). The main reason for this outburst of negative sentiment is, of course, Brexit and special concerns about exports and European banking/financial system. In conclusion, the ZEW data might be the first sign of deterioration in the eurozone economy again.

Let's now take a look at the EUR/GBP technical picture in the daily time frame. The market is still trading above all moving averages and bulls are in control over this market. Moreover, another higher low might just have been made at the level of 0.8249 and this level will now act as a technical support. The nearest resistance is seen at the level of 0.8469.

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Technical analysis of USD/CHF for July 19, 2016

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Overview:

  • The USD/CHF pair movement was controversial as it took place in a narrow sideways channel, the market showed signs of instability. Also, it should be noted that the support and resistance are seen at levels of 0.9733 and 0.9893 respectively. Amid the previous events, the price is still moving between the levels of 0.9733 and 0.9893.
  • Bearish outlook:
  • Thereupon, the price spot of 0.9893 remains a significant resistance zone. Therefore, a possibility that the USD/CHF pair will have downside momentum is rather convincing and the structure of a fall does not look corrective. In order to indicate a bearish opportunity below 0.9893, sell below the price of 0.9893 with the first targets at 0.9788 and 0.9733.
  • However, the stop loss should be located above the level of 0.9900.
  • Bullish outlook:
  • Accordingly, the USD/CHF pair is showing signs of strength following a breakout of the highest level of 0.9733. So, buy above the level of 0.9733 with the first target at 0.9847 in order to test the daily resistance 1 and further to 0.9893. Also, it might be noted that the level of 0.9893 is a good place to take profit because it will form a double top. On the other hand, in case a reversal takes place and the USD/CHF pair breaks through the support level of 0.9733, a further decline to 0.9684 can occur, which would indicate a bearish market.
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Global macro overview for 19/07/2016

Global macro overview for 19/07/2016:

The inflation data from the United Kingdom was released today and it mostly meet the market expectations. The consumer price index was unchanged at the level of 0,2% m/m, just as per market expectations, but on the yearly basis the inflation edged to 0.5% from 0.3% a year ago. Moreover, on the yearly basis, the core CPI increased higher to 1.4% from 1.2% prior. In conclusion, it is not a huge improvement, but enough perhaps to give the BoE some food for thought in their August inflation report.

Let's now take a look at the GBP/USD technical picture in the 4H time frame. The key resistance zone between the levels of 1.3484 - 1.3562 was not violated and the market got back below the 55 and 100 moving average again. Despite the relatively good data, bears are still in full control over this market and any rally is a chance to open more sell orders. The next support is seen at the level of 1.3103.

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Technical analysis of EUR/JPY for July 19, 2016

General overview for 19/07/2016:

The intraday support at the level of 116.41 is providing good support for the market as it trades inside the yellow neutral zone. 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

116.41 - 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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Technical analysis of USD/CAD for July 19, 2016

General overview for 19/07/2016:

The main count has been invalidated due to overlapping of wave one and wave two. So, now the wave progression looks more complex and time-consuming as wave (b) is developing. The target for wave (b) might be the 61%Fibo at the level of 1.3035. When this level is reached, then the market should reverse to the downside in order to continue with wave (c).

Support/Resistance:

1.2087 - WS1

1.2925 - Intraday Support

1.2972 - Weekly Pivot

1.3021 - Intraday Resistance

1.3035 - 615Fibo

1.3085 - WR1

1.3138 - Local High

Trading recommendations:

Day traders should consider opening sell orders from the level of 1.3035 with tight SL and TP open for now. The reason for the trade is wave (c) to the downside anticipation.

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Technical analysis of USDX for July 19, 2016

The Dollar index remains below its important resistance of 96.70 and continues to move mainly sideways. The trend is neutral as the price is trading near its highs. Bulls need to be very cautious as a rejection at current levels will give way to a deep pullback.

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Blue lines - trading range

The Dollar index is trapped inside a trading range between 96.70 and 95.50. Currently trading near the upper boundary of the range, bulls need to be very cautious in case we see a rejection as this could result in a pullback at least towards 95.50.

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The weekly chart shows us clearly the battle between bulls and bears at the edge of the lower cloud boundary. The price is still above the weekly kijun-sen (yellow line indicator), but a weekly close below the Kumo will be a bearish sign. On the other hand, a break above 96.70 will be a bullish sign that could push the index towards 97.70 at least.The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of Gold for July 19, 2016

Gold is consolidating above the $1,325 short-term support area in a triangle pattern. The price remains inside the medium-term bullish channel but a final downward move towards $1,310 cannot be ruled out before a bigger bounce higher towards at least $1,350.

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Red lines - triangle pattern

Gold has been moving sideways for the last few sessions between $1,320 and $1,350. The trading range has become tighter. The upper triangle boundary is at $1,334 and the lower boundary, at $1,324. The price remains below the 4-hour Kumo (cloud), and this increases the chances of a downward break of the triangle.

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Red lines - bullish channel

The upward moving red channel remains intact and the price stays above the daily Kumo (cloud). There are several bearish divergence signs by the oscillators that increase the chances of a bounce but with a lower high and then a deeper correction lower below $1,300. Gold is in a corrective phase. The price could even move below $1,250 over the coming months before resuming its upward trend.

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EUR/AUD Trading Recommendations for 19th July 2016

The price has bounced off our 1.4500 support brilliantly as expected. We now expect a further push up all the way towards 1.5200 which is a fractal resistance level (fibonacci retracement + horizontal resistance + MA resistance). 1.4370 is our stop loss which we're keeping really tight.

We can also see how the RSI displays a bullish divergence vs the price and has crossed above a descending resistance-turned-support line triggering a bullish move.

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Trading Recommendations:

Buy now

Stop loss at 1.4370

Take profit at 1.5200

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GBPCHF Technical Analysis for July 19, 2016.

Technical outlook and chart setups:

GBP/CHF is seen to be trading at 1.3000/10 levels at this moment, looking to push higher towards 1.3200/3300 levels at least before producing a meaningful retracement lower. The wave structure indicates that the pair might be into wave 5 within the impulse wave. If this wave count holds true, we can expect a rally from here and bulls would want to remain in control till prices stay above 1.2880 levels. Please also note that bulls should be poised to take out resistance lined up at 1.3250 levels. It is hence recommended to remain long now, with risk around 1.4800 levels. Immediate support is seen at 1.2880/1.2900 levels, while resistance is seen at 1.3200 respectively. Looking higher at least for now.

Trading recommendations:

Remain long, stop at 1.2800, target 1.3200/1.3300.

Good luck!

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NZD/USD Trading Recommendations 19th July 2016

Our first profit target from yesterday has almost been reached. We now expect an intermediate bounce correction above 0.7000 (big figure + fibonacci support) before a further push down to 0.6830. Our stop loss is the graphical overlap resistance at 0.7230.

We can see how the RSI (34) has broken below its support-turned-resistance line which triggers our bearish move down from here.

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Trading recommendations:

Sell at 0.7100

Stop loss at 0.7230

Take profit at 0.6830

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Elliott wave analysis of EUR/NZD for July 19 - 2016

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Wave summary:

The impulsive rally of the 1.5072 does not look complete yet and might even extend closer to 1.5914 before completing and setting the stage for a more substantial correction towards 1.5400 which marks the bottom of wave [iv].

The first indication that wave i is complete will be a break below minor support at 1.5639.

Trading recommendation:

Our take-profit at 1.5700 was hit for a nice profit. We will wait for signs of a top or a correction before engaging.

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Silver Technical Analysis for July 19, 2016.

Technical outlook and chart setups:

Silver is seen to be trading $19.885 levels at the moment, looking to drop lower towards $18.50 levels going forward. The metal needs to push below $19.25 levels to accelerate lower since it is acting as an intermediary support for now. The structure indicates that Silver might have already formed a lower high at $20.75 levels and that bears should remain in control till prices stay below that. Please also note that the probability remains for a deeper correction lower to retrace the entire rally from $13.60 through $21.00 levels respectively. It is hence recommended to remain short for now, with risk above $21.00 levels. Immediate support is seen at $19.20 levels (intermediary), while resistance is at $20.75 levels respectively.

Trading recommendations:

Remain short now, stop at $21.00 levels, target at least $18.50 and $18.00.

Good luck!

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Elliott wave analysis of EUR/JPY for July 19 - 2016

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Wave summary:

The correction in wave [ii] continues to unfold just as we expected, and we will be looking for a break below minor support at 116.30 confirming the next part of the decline in wave [ii] closer to 114.81 to complete wave [ii] and set the stage for the next impulsive rally in wave [iii] towards 120.47 and 122.75 as the next upside targets on the way towards 126.45.

A break above 122.00 is still needed to confirm that a long-term corrective bottom is in place at 109.48.

Trading recommendation:

We will re-buy EUR at 115.00 with stop placed at 113.25.

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Gold Technical Analysis for July 19, 2016.

Technical outlook and trade signals:

Gold continues to drift sideways for now, seen to be trading at $1,329.00/30.00 levels at the moment. The yellow metal should ideally remain below the previous resistance at $1,347.00 levels from here on. The wave structure indicates that Gold is setting up for another drop towards $1,311.00 at least. Please note that major support is seen at $1,304.00 levels and trend line support is also passing through the same region. It is hence recommended to remain short for now, with risk above $1,350.00 levels. Immediate support is seen at $1,310.00 levels, while resistance is at $1,347.00 levels respectively. Watch out for a potential pullback rally after the price prints lows at $1.310.00 levels at least. The metal remains short on rallies till prices stay below $1,375.00 levels going forward.

Trading recommendations:

Remain short for now, stop above $1,350.00, target $1,310.00 and $1,305.00.

Good luck!

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

Technical analysis of USD/JPY for July 19, 2016

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USD/JPY is expected to trade with a bullish bias. The pair managed to hold the upside and reached 106.33 this morning. While it is currently off that high, it is seeking support from the 50-period (30-minute chart) moving average. In fact, the 20-period moving average remains above the 50-period one, helping to maintain the bullish bias. If the pair succeeds in breaking above the high seen this morning, it could proceed further to the first upside target at 107.00 (a level above that, seen just before the Brexit vote in June).

Market Commentary :

On Monday, US stock indexes ended with modest gains through a session marked by low volumes and tight trading ranges, led by technology and commodities shares. Investors were also encouraged by the Bank of America's better-than-expected quarterly earnings.

Posting its seventh straight day of gains, the Dow Jones Industrial Average settled 16 points higher at 18533, its fifth record closing level in a row. The S&P 500 climbed 0.2% to 2166, another record high, and the Nasdaq Composite was up 0.5% to 5055.

European stocks stabilized, with the STOXX Europe 600 rising 0.2%. Germany's DAX was broadly flat, while the UK's FTSE 100 added another 0.4%.

The benchmark US 10-year Treasury yield declined to 1.581% from 1.597% Friday. Gold lost 0.7% to settle at $1328 an ounce, and silver fell 0.9% to $20.02 an ounce (day-low at $19.69). Meanwhile, Nymex crude oil dropped 1.6% to $45.24 a barrel.

On the forex front, the New Zealand dollar plunged 1.3% to 0.7023 against the US dollar (previous close: 0.7113) this morning after the Reserve Bank of New Zealand announced tightened loan rules to curb speculation in the housing market, which investors viewed as a move to pave the way for another interest rate cut next month.

AUD/USD was down 0.7% to 0.7534 this morning (previous close: 0.7590).

Overnight USD/JPY rebounded 1.3% to 106.15, EUR/USD rebounded 0.3% to 1.1071, and GBP/USD was up 0.5% to 1.3255.

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 105.25.

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 19, 2016

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USD/CHF is expected to trade in a higher range as the bias remains bullish. The pair retains the positive outlook after it has broken the descending trend line since July 13. A support base at 0.9780 has been formed and should limit downside attempts. In addition, the relative strength index is still above its neutrality area at 50 and lacks downward momentum. To conclude, as long as 0.9780 is not broken, we are still positive and expect a new rebound to 0.9875 at first, and then even to 0.99.

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

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Technical analysis of NZD/USD for July 19, 2016

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NZD/USD is expected to extend its downside movement. The pair accelerated on the downside after it broke below its 20-period and 50-period moving averages. The declining 20-period moving average just crossed below the 50-period one and maintains the downside bias. The relative strength index broke below 30. On the forex front, the New Zealand dollar plunged 1.3% to 0.7023 against the US dollar (previous close: 0.7113) this morning after the Reserve Bank of New Zealand announced tightened loan rules to curb speculation in the housing market, which investors viewed as a move to pave the way for another interest rate cut next month.To sum up, as long as 0.7125 holds on the upside, the pair is likely to drop to 0.7000 at first, and then even to 0.6975.

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 0.7000. A break below this target will move the pair further downwards to 0.6975. The pivot point stands at 0.7125. 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 0.7155 and the second one, at 0.7190.

Resistance levels: 0.7190, 0.7215, 0.7250

Support levels: 0.7000, 0.6975, 0.6915

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Technical analysis of GBP/JPY for July 19, 2016

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GBP/JPY is expected to trade in a higher range as the bias remains bullish. The pair stays above its 20-period moving average, which remains above the 50-period one. European stocks stabilized, with the STOXX Europe 600 rising 0.2%. Germany's DAX was broadly flat, while the UK's FTSE 100 added another 0.4%. And the relative strength index is above 50. Further upside is expected with 141.10 and 142.45 as targets.

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 141.10 and the second one, at 142.45. In the alternative scenario, short positions are recommended with the first target at 138.20 if the price moves below its pivot points. A break of this target is likely to push the pair further downwards, and one may expect the second target at 136.40. The pivot point is at 139.20.

Resistance levels: 141.10, 142.45, 143.50

Support levels: 138.05, 136.40, 134.95

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Technical analysis of EUR/USD for July 19, 2016

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When the European market opens, some economic news will be released such as the eurozone's ZEW Economic Sentiment and German ZEW Economic Sentiment. The US will release economic data too such as Housing Starts and Building Permits. So amid the reports, EUR/USD will move with low ot medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Breakout BUY Level: 1.1122.

Strong Resistance: 1.1116.

Original Resistance: 1.1105.

Inner Sell Area: 1.1094.

Target Inner Area: 1.1068.

Inner Buy Area: 1.1042.

Original Support: 1.1031.

Strong Support: 1.1020.

Breakout SELL Level: 1.1014.

Disclaimer: Trading Forex (foreign exchange) on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

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Technical analysis of USD/JPY for July 19, 2016

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In Asia, today Japan will not release any economic data, but the US will release some economic data such as Housing Starts and Building Permits. So there is a probability the USD/JPY will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Resistance. 3: 106.38.

Resistance. 2: 106.17.

Resistance. 1: 105.97.

Support. 1: 105.71.

Support. 2: 105.51.

Support. 3: 105.30.

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 19, 2016

EUR/USD: This currency trading instrument went flat throughout last week and on Monday, 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: The USD/CHF simply consolidated on July 18 – in the context of an uptrend. A movement below the support level at 0.9700 could result in a bearish outlook, and in case bulls are able to push the price upwards, the next targets could be the resistance levels at 0.9850 and 0.9900.

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GBP/USD: This currency trading instrument moved upwards last week; and 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 becomes bullish.

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USD/JPY: This currency trading instrument made some attempt to go further upwards yesterday, now above the demand level at 106.00. Bulls might be able to target the supply levels at 106.50, 107.00, and 107.50. This bullish bias would hold as long as the price does not go below the demand levels at 105.00 and 104.50.

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EUR/JPY: On Monday, the movement of the EUR/JPY was similar to the movement of the USD/JPY. There is a Bullish Confirmation Pattern in the market, and the price could go further upwards. This bullish bias would hold as long as the price does not go below the demand zones at 105.00 and 104.50.

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Daily analysis of GBP/USD for July 19, 2016

On the H1 chart, USDX is trying to do a breakout above the resistance zone of 96.60, in a move that should open the doors to reach the critical level around the 97.74 area. However, the Index is still trapped in a sideways range, and it should not be a surprise to see a pullback towards the 95.89 level in coming days. The MACD indicator is favouring a possible near-term bearish scenario.

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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 19, 2016

GBP/USD is still dealing with the bears around the 200 SMA on the H1 chart, where the pair should remain above to reach the next resistance at the 1.3406 level in the short term. If the Cable wants to strengthen the bullish bias, then we should see a breakout beyond that resistance zone, and that could open the doors to test the 1.3500 psychological level.

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H1 chart's resistance levels: 1.3300 / 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.

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Daily analysis of Gold for July 18, 2016

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Overview

The sideways range still dominates the gold dynamic. The price still trades below the EMA50, which forms intraday negative pressure that we are awaiting to make the price visit 1,303.58 – 1,297.75 levels before turning back to resume the main bullish trend. Therefore, we still predict the temporary bearish trend for the upcoming sessions. A break of the mentioned levels will push the price for bearish correction, which targets extend to 1,249.95. A break of the 1,375.00 levels will make the price resume the main bullish trend and will stop the current negative pressure.

The expected trading range for today is between the 1,303.58 support and the 1,350.00 resistance.

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Daily analysis of Silver for July 18, 2016

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Overview

The silver price shows more sideways movements in tight ranges. A deeper look at the intraday time frames revealed that the recent trades are confined to a Bullish Pennant pattern shown on the minor image. Therefore, a breach of this pattern's resistance at 20.35 will support the continuation of the main bullish trend. Therefore, our bullish overview will remain valid and active until now supported by the EMA50. The price is likely to target 22.00 followed by 22.40 levels mainly. Holding above 19.35 levels represents the key condition for achieving the suggested targets.

The expected trading range for today is between the 19.50 support and the 20.80 resistance.

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