EUR/NZD analysis for July 20, 2016

analytics578f711e1e1a3.png

Recently, EUR/NZD has been moving downwrads. The price tested the level of 1.5564 in the average volume. My downward target at the price of 1.5635 has been reached. Anyway, today, buyers came in to the market and I found a change in the trend behavior from bearish to bullish. Be careful when selling and watch for buying opportunities. The first target is set at the price of 1.5765.

Fibonacci Pivot Points:

Resistance levels:

R1: 1.5735

R2: 1.5785

R3: 1.5870

Support levels:

S1: 1.5560

S2: 1.5505

S3: 1.5420

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

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

Gold analysis for July 20 , 2016

analytics578f6e1ad5a8f.png

Since our previous analysis, gold has been trading downwards. The tested level of $1,316.89 in a high volume. According to the 30M time frame, I found a broken trading range, which is a sign that we may see downward pressure. Watch for selling opportunities on the pullbacks. Critical support today will be at the price of $1,312.20. If the price can't break the level of $1,312.20 in a high volume, we may see rejection. Anyway, if the price breaks the level of $1,312.20, there is chance for larger downward movement.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,332.97

R2: 1.334.60

R3: 1,337.20

Support levels:

S1: 1,327.80

S2: 1,326.20

S3: 1,323.60

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

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

Elliott wave analysis of EUR/NZD for July 20 - 2016

analytics578f6add70fc7.png

Wave summary:

The impulsive rally from the 1.5072 low still needs more upside pressure before completing. In the short term a minor wave [iv] correction is unfolding. Once it is completed, a continuation higher towards 1.5941 should be expected.

As long as minor resistance at 1.5687 is able to protect the upside wave [iv], the price could move a little lower close to 1.5475. But from this point or upon a direct break above 1.5687 the rally to 1.5941 will develop.

Trading recommendation:

We will buy the EUR at 1.5485 or upon a break above 1.5687 with stop placed at 1.5410 and take profit placed at 1.5925.

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

Elliott wave analysis of EUR/JPY for July 20 - 2016

analytics578f69aba7496.png

Wave summary:

Wave [ii] is still unfolding and more downside pressure towards 114.81 is still expected before the next impulsive rally kicks in. The decline from the wave b high at 117.62 has been rather slow, which could indicate that a more complex wave b correction is unfolding, maybe as a small triangle. But at this point it can go both ways.

A break below minor support at 116.30 will indicate wave c goes lower to 114.81.

Trading recommendation:

We are looking for a buying opportunity at 115.00 with stop placed at 113.25.

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

USD/CAD intraday technical levels and trading recommendations for July 20, 2016

analytics578f65837be3d.pnganalytics578f658ceba2d.png

On May 16, a bullish pullback towards 1.3000 (61.8% Fibonacci level) was expected to offer a valid signal to sell the USD/CAD pair. However, a lack of significant bearish rejection was manifested during recent consolidations.

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

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

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

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

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

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

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

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

NZD/USD Intraday technical levels and trading recommendations for July 20, 2016

analytics578f61fee4e54.png

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.

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

Intraday technical levels and trading recommendations for GBP/USD for July 20, 2016

analytics578f5e351fa2e.pnganalytics578f5e54cd715.png

Since January 2016, bullish persistence above 1.4500 was mandatory to maintain enough bullish strength in the market.

However, the previous weekly candlesticks maintained their bearish persistence below the depicted weekly supply zone (below 1.4470), which allowed further bearish decline to occur.

The prominent demand level located at 1.3845 (historical bottom that goes back to March 2009) provided a significant bullish rejection and a bullish engulfing weekly candlestick on February 26.

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

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

However, 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.

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

Intraday technical levels and trading recommendations for EUR/USD for July 20, 2016

analytics578f5c3f0fc64.png

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

In March 2015, the EUR/USD bears challenged the next monthly demand level around 1.0570, which had been previously reached in August 1997.

Later in April 2015, a strong bullish recovery was observed around the mentioned demand level. However, next monthly candlesticks (September, October, and November) reflected a strong bearish rejection around the area of 1.1400-1.1500.

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

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

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

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

analytics578f5c4aa8cad.png

Similar to what happened in October 2015, the supply zone of 1.1410-1.1550 constituted a significant resistance zone for the EUR/USD pair.

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

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

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

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

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

On July 8, recent bullish recovery has been manifested around the price zone of 1.1000-1.0950 (previous consolidation range) until July 15 when significant bearish pressure was applied around 1.1150.

This week, bearish fixation below 1.1000 allows a quick bearish decline towards 1.0820 where price action should be considered.

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

Technical analysis of USD/JPY for July 20, 2016

USDJPYM30.png

USD/JPY is expected to trade with bullish bias above 105.60. The pair ran up to 106.52 before entering a consolidation phase. Currently, the consolidation is still in progress while the pair keeps trading above the key support at 105.60. The 20-period (30-minute chart) is coming down to the 50-period on the downside, while the relative strength index is below the neutrality level of 50, indicating that a continuation of the consolidation phase is possible. However, as long as the key support at 105.60 is not breached, the intraday outlook remains bullish, and the pair has chances

to retest the first upside target at 106.55 (around yesterday's high).

Market Commentary :

On Tuesday, US stock indices were mixed although the Dow Jones Industrial Average managed to extend its record-setting streak for the sixth consecutive sessions. Boosted by Johnson & Johnson's strong quarterly results and raised earnings guidance, the index added another 0.1% to 18,559, posting its eighth straight up day, the longest winning streak since March 2013.

On the other hand, the S&P 500 declined 0.1% to 2,163, and the Nasdaq Composite was down 0.4% to 5,036. Materials, retailing and energy shares were under pressure.

European stocks turned negative, with the STOXX Europe 600 losing 0.4%. Germany's DAX fell 0.8%, while the U.K.'s FTSE 100 was broadly flat.

US government bonds strengthened sending the benchmark 10-year Treasury yield down to 1.558% from 1.585% on Monday. Gold added 0.3% to $1,332 an ounce, and silver slid 0.6% to $19.89 giving a losing streak of four straight sessions. Meanwhile, Nymex crude oil fell 1.3% further to $44.65 a barrel.

On the economic front, the US government reported that June housing starts amounted to 1.19 million units (vs. 1.17 million units expected, 1.14 million units in May) and building permits rose 1.5% to 1.15 million units (as expected, vs. 1.14 million units in May). Germany's ZEW investor confidence index declined to 49.8 in June (vs. 51.8 expected) from 54.5 in May. The UK government reported that June CPI edged up 0.2% month on month (as expected) and increased 0.4% year on year (vs. +0.5% expected).

On forex trading, the US dollar strengthened across the board on the release of strong economic data in the US. The IMF slashed its growth forecast for the UK for 2016 to 1.7% from 1.9% previously, and that for 2017 to 1.3% from 2.2%, citing uncertainty over the country's vote to leave the European Union. The British pound then dropped 1.1% to 1.3110 against the US dollar.

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 106.55 and the second one, at 107.00. In the alternative scenario, short positions are recommended with the first target at 105.25, 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 104.60. The pivot point is at 105.60.

Resistance levels: 106.55, 107.00, 107.45

Support levels: 105.25, 104.60, 103.90

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

EUR/JPY Technical Analysis for July 20, 2016.

Technical outlook and chart setups:

The EUR/JPY pair is seen to be trading around 117.40 levels at this moment, and it is looking to drop lower from here. It is expected to carve a lower high ahead of 117.75 levels and turn bearish from there. It is expected to carve a lower high ahead of 117.75 levels and turn bearish from there. The wave structure also reveals that the pair has unfolded into 5 waves from 109.50 levels and it should produce a meaningful retracement lower towards 113.50 levels, if not further. It is hence recommended to remain short from here, with risk above 118.40 levels. Immediate intermediary support is seen at 115.20 levels, while resistance is at 118.40 levels respectively. Bears are expected to remain in control till prices stay below 118.40/50 levels.

Trading recommendations:

Remain short now; stop is at 118.40, target is 113.50.

Good luck!

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

Technical analysis of NZD/USD for July 20, 2016

NZDUSDH1.png

Overview:

  • The NZD/USD pair continues moving downwards from the level of 0.7083. Yesterday, the pair dropped from the level of 0.7083 to the bottom around 0.7009. Today, the first resistance level is seen at 0.7083 followed by 0.7129 (the weekly pivot point), while daily support 1 is found at 0.6966. Also, the level of 0.7129 represents a weekly pivot point for that it is acting as major resistance/support this week.
  • Amid the previous events, the pair is still in a downtrend, because the NZD/USD pair is trading in a bearish trend from the new resistance line of 0.7083 towards the first support level at 0.7009 in order to test the double bottom. If the pair succeeds to pass through the level of 0.7009, the market will indicate a bearish opportunity below the level of 0.7009. Hence, if the NZD/USD pair is able to break out the bottom at 0.7009, the market will decline further to 0.6966. However, if a breakout happens at the resistance level of 0.7129, then this scenario may be invalidated.

Intraday technical levels:

  • R3: 0.7167
  • R2: 0.7131
  • R1: 0.7083
  • PP: 0.7046
  • S1: 0.7009
  • S2: 0.6966
  • S3: 0.6910
The material has been provided by InstaForex Company - www.instaforex.com

GBPCHF Technical Analysis for July 20, 2016.

Technical outlook and chart setups:

The GBP/CHF pair is trading higher for the day at 1.3015 levels at the moment, looking to push higher above 1.3200 levels. The wave structure indicates that GBP/CHF might be into its 5th wave rally and should terminate above 1.3250 levels at least. Also note that bulls should remain poised to take out major resistance lined up at 1.3250 levels (not seen here). On the flip side, only a break below 1.2875 levels would confirm that a meaningful top is in place at 1.3200 levels and that the pair is heading south. It is hence recommended to remain long from yesterday with risk at 1.2850 levels. Immediate support is seen at 1.2875 levels, while resistance is at 1.3200 levels respectively.

Trading recommendations:

Remain long for now, stop is at 1.2850, target is 1.3250.

Good luck!

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

Silver Technical Analysis for July 20, 2016.

Technical outlook and chart setups:

Silver is seen to be trading at $19.76 levels for now, looking to form an interim bottom soon. The metal can form the bottom between $19.50 and $19.70 levels before rallying higher. Please note that the expected rally could still be corrective in nature and prices should remain below $21.13 levels. The wave structure indicates that a meaningful top might have been already formed at $21.13 levels and that bears should remain in control till prices stay below that. It is recommended to take short-term profit on short positions now and remain flat. We shall look for opportunities to go short again at higher levels (ahead of $21.13). Immediate interim support is seen at $19.20 levels, while resistance is at $21.13 levels respectively.

Trading recommendations:

Book short-term profits on the short positions taken earlier and remain flat.

Good luck!

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

Technical analysis of USD/CHF for July 20, 2016

USDCHFH4.png

Overview:

  • Yesterday, the market moved from its bottom at 0.9815 and continued to rise towards the top of 0.9877. Today, on the one-hour chart, the current rise will remain within a framework of correction.
  • In the H4 time frame, the USD/CHF pair broke resistance, which turned into strong support at the level of 0.9862. The level of 0.9862 coincides with the ratio of 78.6% Fibonacci, which is expected to act as minor support today.
  • Moreover, the strong support is seen at the price of 0.9790.
  • Today, we expect that the USD/CHF pair continues moving in a bullish trend from the support levels of 0.9815 and 0.9862.
  • Currently, the price is in a bullish channel. This is confirmed by the RSI indicator signaling that we are still in a bullish trending market.
  • So, buy above the level of 0.9862 with the first target at 0.9904 in order to test the daily resistance 1. Furthermore, if the trend is able to break out through the first resistance level of 0.9862 we should see the pair climbing towards the double top (0.9955) to test it.
  • On the other hand, it would also be wise to consider where to place stop loss. It should be set below the major support of 0.9790.
The material has been provided by InstaForex Company - www.instaforex.com

Daily analysis of major pairs for July 20, 2016

EUR/USD: There is a bearish signal on EUR/USD, as price has gone downwards a bit this week, The EMA 11 is below the EMA 56, and the Williams' % Range period 20 is in the oversold territory. This means that, while there could be transitory bullish attempts here, price is expected to journey further downwards.

1.png

USD/CHF: Here, there is a Bullish Confirmation Pattern on the 4-hour chart. Price has been able to go above the support level of 0.9850, now it is going towards the resistance level at 0.9900. Price might be able to go above that resistance level, but that is not going to be an easy task, owing to extant threats from bears.

2.png

GBP/USD: Cable has continued to consolidate to the downside this week. Price has eased southwards by 170 pips, emphasizing the overall bearish outlook in the market. There is a possibility that price could continue its journey southwards, reaching the accumulation territories at 1.3050 and 1.3000 today.

3.png

USD/JPY: This currency trading instrument made some attempt to go further upwards on Tuesday, now it is 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 price does not go below the demand levels at 105.00 and 104.50.

4.png

EUR/JPY: Nothing significant has yet happened on EUR/JPY cross. There is a Bullish Confirmation Pattern in the market and price could go further upwards. This bullish bias would hold as long as price does not go below the demand zones at 115.00 and 114.50.

5.png

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

Global macro overview for 20/07/2016

Global macro overview for 20/07/2016:

The number of US housing starts and building permits increased significantly in June, which might be a good indication, that housing market continues to perform strongly. The number of housing starts increased 4.8% a monthly to 1,189K and it was better than the expected number of 1,165K. Moreover, the building permits issued by US Census Bureau beat the market expectations as well. The released number was at the level of 1,153K:, a 1.5% higher than a month ago and better than the forecast of 1,150K . In conclusion, both released figures were better than a month ago and better than market expectations, so an important pillar of the US economy is continuing to perform well and might be an important contributor to the next quarter GDP report.

Let's now take a look at the EUR/USD technical picture in the 4H time frame. Bulls did not manage to break out above the important resistance at the level of 1.1185 and after a dashed trend line violation the market is now trending lower. The next support is seen at the level of 1.0970 and 1.0911.

analytics578f28c034cf7.jpg

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

Global macro overview for 20/07/2016

Global macro overview for 20/07/2016:

The Reserve Bank of Australia Monetary Policy Meeting Minutes referred to both labour market and housing market with some degree of uncertainty. Moreover, the mention that inflation was expected to remain weak for some time resulted in an immediate repricing of the Australian short-term interest rate curve. The probability of the August interest rate cut increased to 62% from 45%. If the next CPI data for the second quarter that is due on July 27 will be still lower than expected, the RBA might cut the rates at its next meeting.

Let's now take a look at the AUD/USD technical picture in the daily time frame. After a false break out above the golden trend line, the market reversed back and now it is testing the support at the level of 0.7503. The dynamic support is being provided by the 100 DMA, but if the bear camp is strong, the price might be pushed lower towards the next support at the level of 0.2785.

analytics578f25c7ea3ea.jpg

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

Technical analysis of USDX for July 20, 2016

The US dollar index broke to the upside. Resistance at 96.70 was broken yesterday and the price is in a short-term bullish trend after exiting the sideways consolidation and trading range.

analytics578f23eba3705.jpg

Blue lines - trading range

Red lines - bullish channel

The dollar index is trading above the 4 hour Kumo confirming a bullish trend. The price broke above the trading range and the triple top at 96.70. The trend is again bullish. The price reached the upper boundary of the long-term bullish channel. Resistance at 97.13 was broken to the upside. For this bullish signal to be strong we need a weekly close above this area.

analytics578f24545d16d.jpg

The weekly candle is trying to reach our first target of 97.70 at the upper cloud boundary. The price remains above the weekly kijun-sen (yellow line indicator) and inside the cloud. A break above the cloud will be a bullish signal that will push the index to new highs. I remain bullish on the index.The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of Gold for July 20, 2016

Gold price is breaking short-term support and triangle pattern to the downside. This implies that $1,300 will be tested. This is most probably that the final downward extension of the decline started at $1,375.

analytics578f2293d6436.jpg

Red lines - triangle pattern

Blue lines - bullish channel

Gold price is trading below the 4 hour Kumo (cloud) and is breaking below the triangle pattern. This will imply a push towards $1,300 to finish the entire decline from $1,375. Resistance is at $1,340 and a move above will confirm a change of the trend to bullish.

analytics578f22dbbe6f5.jpg

Red lines - bullish channel

Gold price is testing the lower channel boundary. Support is at $1,324-25 and next, at $1,310. The price is above daily Kumo (cloud) but a pullback towards the cloud is not out of the question for next few weeks. Daily resistance is at $1,347. A break above will open the way for a re-test of the recent highs. I remain longer-term bullish and a pullback towards $1,250-$1,170 will be a gift for bulls.

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

Technical analysis of USD/CAD for July 20, 2016

General overview for 20/07/2016:

As anticipated yesterday, the 61% Fibo at the level of 1.3032 has been hit and the top for the wave (b) looks to be in place now. Currently, the market should start to develop another wave to the downside and any violation of the level of 1.3011 will be the first clue that the wave (c) is in progress.

Support/Resistance:

1.2087 - WS1

1.2972 - Weekly Pivot

1.3011 - Intraday Support

1.3035 - 61% Fibo

1.3053 - Intraday Resistnace

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.

analytics578f2043766de.jpg

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

Technical analysis of EUR/JPY for July 20, 2016

General overview for 20/07/2016:

As the level of 116.41 is providing good support for the price, it has been tested two times already. Another lower high had been made in this market as well, so now wave c should be 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.

analytics578f1ee3a1025.jpg

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

Gold Technical Analysis for July 20, 2016.

Technical outlook and chart setups:

Gold continues to drift sideways for now, confined within the boundaries of support and resistance. The metal is seen to be trading around $1,330.00/31 levels at this moment, looking to drop lower towards $1,310.00/07.00 levels. Please note that the yellow metal seems to have terminated its last leg within the triangle consolidation at $1,338.00 levels overnight (seen here as a spike). If the above wave count holds to be true, we can see gold prices dropping below $1,320.00 levels very soon and completing an impulse wave (5 waves from $1,375.00 levels). The metal is then expected to produce a countertrend rally, giving opportunities to go short again. It is hence recommended to remain short for now, with risk above $1,347.00 levels. Immediate support is seen at $1,320.00 levels, while resistance is at $1,345.00 levels. The metal has already drifted lower towards $1,329.00 levels now and should drop towards the channel support line.

Trading recommendations:

Remain short for now, stop above $1,347.00, and target $1,310.00/05.00.

Good luck!

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

Technical analysis of USD/CHF for July 20, 2016

USDCHFM30.png

USD/CHF is expected to extend its upside movement and post some further upside targets. The pair broke above its 50-period moving average, which is playing a support role and maintains the upside bias, and is holding on the upside. Additionally, 0.9810 (a low seen on June 15,18 and 19) represents a significant key support level, which should limit the downside potential. Meanwhile, the relative strength index is bullish above its neutrality area at 50 and lacks downward momentum. Hence, as long as 0.9810 holds on the downside, further advance is expected with the next horizontal resistance at 0.9900 and even 0.9920 in extension. Only a break below 0.9810 would turn the outlook to negative with downside targets at 0.9780 and 0.9760.

Resistance levels: 0.9900, 0.9920, 0.9975

Support levels: 0.9780, 0.9760, 0.9735

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

Technical analysis of NZD/USD for July 20, 2016

NZDUSDM30.png

NZD/USD is under pressure. The pair is capped by a bearish trend line since July 14 and remains under pressure below the horizontal resistance at 0.7085, which should limit upward attempts. Both the Australian dollar and the New Zealand dollar were dragged by expectations of central banks cutting interest rates in August. AUD/USD plunged 1.2% to 0.7501 (day-low at 0.7473), and NZD/USD lost 0.9% to settle at 0.7047. Even though a continuation of the technical rebound cannot be ruled out, its extent should be limited. As long as 0.7085 holds as the key resistance, the pair is likely to drop to 0.7000. A break below this level would open the way to further weakness toward the horizontal support at 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 0.7085. 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 0.7125 and the second one, at 0.7155.

Resistance levels: 0.7125, 0.7155, 0.7190

Support levels: 0.7000, 0.6975, 0.6915

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

Technical analysis of GBP/JPY for July 20, 2016

GBPJPYM30.png

GBP/USD is expected to trade with a bearish bias. The pair recorded a succession of lower tops and lower bottoms since July 15, which confirms a negative outlook. The declining 50-period moving average is playing a resistance role and maintains the downside bias. Besides, the relative strength index remains below its neutrality area at 50 and lacks upward momentum. To conclude, as long as 140.30 holds on the upside, look for further drop toward 138.05 and even 13.40 in extension.

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 138.05. A break below this target will move the pair further downwards to 137.40. The pivot point stands at 140.30. 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 141.10 and the second one, at 142.45.

Resistance levels: 141.10, 142.45, 143.50

Support levels: 138.05, 136.40, 134.95

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

USD/JPY Trading Recommendations for 20th July 2016

USD/JPY is seeing strong double channel support along with approaching a strong support area on Stochastics. This allows us to play the rise up to at least 107.00.

105.25 is a fractal resistance level (graphical support and fibonacci retracement), which serves as our stop loss. 107.00 is a fibonacci projection level and channel upper limit, which would be our profit target.

analytics578eef972376a.png

Trading recommendations:

Buy now

Take profit at 107.00

Stop loss at 105.25

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

EUR/USD Trading Recommendations (1 to 3 weeks)

The key view we see here is EUR/USD having broken out of its ascending channel really strongly. The RSI has broken below previous supports as a pre-signal of a drop to come. We turn bearish for a drop to 1.0700, which is the channel lower support.

analytics578eee3bc8ec1.png

Trading Recommendations:

Sell now and add to your positions below 1.1400

Stop loss at 1.1400

Take profit at 1.0700

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

Technical analysis of EUR/USD for July 20, 2016

!!!_EURUSD.jpg

When the European market opens, some economic news will be released such as Consumer Confidence, Current Account, and German PPI m/m. The US will release economic data too such as Crude Oil Inventories. So amid the reports, EUR/USD will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Breakout BUY Level: 1.1064.

Strong Resistance: 1.1058.

Original Resistance: 1.1047.

Inner Sell Area: 1.1036.

Target Inner Area: 1.1010.

Inner Buy Area: 1.0984.

Original Support: 1.0973.

Strong Support: 1.0962.

Breakout SELL Level: 1.0956.

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 20, 2016

!!!__USDJPY.jpg

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

TODAY'S TECHNICAL LEVELS:

Resistance. 3: 106.47.

Resistance. 2: 106.26.

Resistance. 1: 106.04.

Support. 1: 105.79.

Support. 2: 105.59.

Support. 3: 105.38.

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 20, 2016

The US Dollar Index is finding resistance around the 97.10 level, where the Index is doing a bullish consolidation after strong momentum gained during yesterday's session. A pullback could happen towards the 96.60 level, where a rebound can happen to resume the bullish bias. However, the next target to the upside would be the 97.74 level.

USDXH1.png

H1 chart's resistance levels: 97.10 / 97.74

H1 chart's support levels: 96.60 / 95.89

Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the USD Index breaks with a bullish candlestick; the resistance level is at 97.10, take profit is at 97.74 and stop loss is at 96.47.

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

Daily analysis of GBP/USD for July 20, 2016

The pair had a bearish session, and it's consolidating losses below the level of 1.3148. Currently, another decline is expected towards the 1.3000 level, where a psychological barrier is located. GBP/USD is trading below the 200 SMA on the H1 chart, and that's why we would like to see further weakness. However, a breakout above the 1.3148 level will drive the pair to the 1.3300 level.

GBPUSDH1.png

H1 chart's resistance levels: 1.3148 / 1.3300

H1 chart's support levels: 1.3001 / 1.2880

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 1.3148, take profit is at 1.3300 and stop loss is at 1.2994.

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