USD/CAD intraday technical levels and trading recommendations for July 21, 2016

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

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

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

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

The current bullish pullback towards the price level of 1.3000-1.3070 (61.8% Fibonacci level) should be considered 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 21, 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 0.7070.

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 EUR/USD for July 21, 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 shows. 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.

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Intraday technical levels and trading recommendations for GBP/USD for July 21, 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 (nearest bearish projection target) where price action should be watched for a possible short-term BUY entry.

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Gold analysis for July 21 , 2016

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Since our previous analysis, gold has been trading downwards. The tested level of $1,310.65 is in an average volume. The price reached my downward target at $1,312.20. According to the 30M time frame, I found potential changing in the trend dynamic from bearish to bullish. I found fake breakout of yesterday's swing low and successful testing of supply in a low volume. My advice is to watch for potential buying opportunities on the dips. Target is set at the price of $1,332.00 (yesterday point of control).

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,332.35

R2: 1.337.50

R3: 1,345.90

Support levels:

S1: 1,315.50

S2: 1,310.30

S3: 1,301.90

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

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EUR/NZD analysis for July 21, 2016

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Recently, EUR/NZD has been moving upwards. The price tested the level of 1.5984 in the high volume. According to the 30M time frame, I found potential changing in the trend dynamic from bullish to bearish. I found a broken upward trend line and few reversal bars in a high volume from the top. I have placed Fibonacci retracement from most recent downward leg and I got Fibonacci retracement 78.6% at the price of 1.5810. Watch for selling opportunities on the pullbacks. Take profit level is set at the price of 1.5610 (point of control from yesterday)

Fibonacci Pivot Points:

Resistance levels:

R1: 1.5695

R2: 1.5725

R3: 1.5775

Support levels:

S1: 1.5595

S2: 1.5565

S3: 1.5515

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

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EUR/USD Trading Recommendations for 21st July 2016

We see EUR/USD forming a rounding reversal pattern as a reaction to the golden ratio (62%) now. Our goal is to play the rise up to 1.1075 especially after that RSI(34) crossed above its descending resistance-turned-support line as a pre-signal of the bullish rise from here.

1.1075 is a Fibonacci retracement and also a horizontal resistance level. That is why it is our take profit level.

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Trading recommendations :

Buy now

Stop loss is at 1.0980

Take profit is at 1.1075

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Technical analysis of NZD/USD for July 21, 2016

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Overview:

  • The NZD/USD pair is still below the daily resistance (0.7069). Yesterday, it continued to move downwards from the level of 0.7070 to the bottom around 0.6951. Today, the first resistance level is seen at 0.7000 followed by 0.7070, while daily support 1 is seen at 0.6910. Furthermore, the moving average (100) starts signaling a downward trend; therefore, the market is indicating a bearish opportunity below 0.7000. So it will be good to sell at 0.7000 with the first target of 0.6951 to test it again. It will also call for a downtrend in order to continue towards 0.6910. Today, we expect the NZD/USD pair to move between 0.7000 and 0.6910. Therefore, a new support will be formed at the level of 0.6910. The market is still in an uptrend. We still prefer the bullish scenario, as long as the level of 0.7070 is not breached.
  • Bullish outlook:
  • However, if the trend fails to break the level of 0.6910, the pair will move upwards continuing the development of the bullish trend to the level 0.6960. In the same time frame, resistance is seen at the levels of 0.7000 and 0.7070. The stop loss should always be taken into account for that it will be reasonable to set your stop loss at the level of 0.6877.
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Technical analysis of USD/CHF for July 21, 2016

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Overview:

  • The USD/CHF pair broke resistance which turned штto strong support at the level of 0.9789 yesterday. The level of 0.9789 coincides with a golden ratio (61.8% of Fibonacci), which is expected to act as major support on the H4 chart today. Yesterday, the USD/CHF pair continued to move upwards from the level of 0.9789. The pair rose from the level of 0.9789 to the top around 0.9904. Also, it should be noted that the current price is seen at 0.9870. The RSI is still signaling that the trend is upward as it is still strong above the moving average (100). This suggests the pair will probably go up in coming hours. Accordingly, the market is likely to show signs of a bullish trend. In other words, buy orders are recommended above 0.9850 with the first target at the level of 0.9900. From this point, the pair is likely to begin an ascending movement to the point of 0.9925 and further to the level of 0.9955. The level of 0.9955 will act as strong resistance and the double top is already set at the point of 0.9955. On the other hand, if a breakout happens at the support level of 0.9789, then this scenario may become invalidated.
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Elliott wave analysis of EUR/NZD for July 21 - 2016

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Wave summary:

The impulsive rally of the 1.5072 low is unfolding nicely. A little move up closer to 1.5941 is expected in wave [v] to complete wave i and set the stage for a correction in wave [ii] towards at least the 38.2% correction of the rally from 1.5072 to 1.5941. At the same time, a corrective decline closer to the 50% corrective target near 1.5506 is more likely as this is also close to the bottom of wave [iv].

Once the correction in wave ii is completed, a new impulsive rally towards at least 1.6912 is expected.

Trading recommendation:

We missed our buying target at 1.5485 so we are going to wait for another opportunity to buy the EUR at 1.5520 with stop placed at 1.5400.

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Elliott wave analysis of EUR/JPY for July 21 - 2016

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Wave summary:

We are still looking for more sideways consolidation in wave [ii]. The correction in wave [ii] turned into a flat correction. Wave [c] is just below the low of wave [a] at 115.41. Next impulsive rally higher towards at least 120.47 and possibly even higher is still expected.

In the short-term, a break below minor support at 117.49 will indicate that wave [c] of [ii] is developing.

Trading recommendation:

We will buy the EUR at 115.55 with stop placed at 114.85

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Technical analysis of USDX for July 21, 2016

The US dollar index is showing signs of a failed breakout as price cannot produce a follow towards 97.70. Price for now is considered to back testing the break out of the consolidation range at 96.70. So as long as we are above the consolidation range, we continue to remain short-term bullish.

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Blue lines - trading range (broken)

Red lines - long-term bullish channel

The dollar index is trading above the 4 hour Kumo (cloud) and brok out of the trading range. Price reached the upper long-term channel boundary where resistance is found. The short-term support is at 96.70 and then, at 96. Resistance is at 97.32.

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This week's candle is inside the weekly Kumo. We still have no confirmation of the resumption of the longer-term bullish trend. Price needs to break above the weekly cloud for this to happen. Until then bulls need to be cautious as resistance is very important at 97.70. If this week's candle turns red and price closes below the lower Kumo boundary, it will be an ugly bearish reversal signal targeting even below 95.

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Technical analysis of Gold for July 21, 2016

Gold continued moving lower towards its support of $1,310-$1,300 yesterday after breaking below the triangle pattern we noted 2 days back. The trend remains bearish. A short-term reversal signal will come if Gold breaks above $1,320. Confirmation of the short-term trend reversal will come if the price breaks above $1,340.

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Blue lines - bearish channel

Gold price is inside the bearish blue channel and below the Kumo (cloud). The price has also reached the 38% Fibonacci retracement of the rise from $1,200. As long as the price is below the Kumo, the medium-term trend is bearish.

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Gold has found support at the daily kijun-sen (yellow line indicator). A daily close below it will open the way for a move towards the Kumo near $1,270. The scenario where we see even below $1,250 is still open as we could very well have started a big pullback to retrace the entire rise from $1,045. As long as Gold is above $1,045, we assume that we have made a long-term low and a long-term trend reversal at that level.The material has been provided by InstaForex Company - www.instaforex.com

Global macro overview for 21/07/2016

Global macro overview for 21/07/2016:

The main fundamental event of the day is the ECB's interest rate decision, together with the marginal lending facility and deposit facility rate. The event is scheduled for 11:45 am GMT and the market participants expect no change in the ECB rate decision (0.0% vs. 0.0% expected). Despite the recent Brexit vote, the ECB should adopt a wait-and-see approach and not to change the interest rate, as estimating the influence of Brexit on financial markets should take more time, so the September meeting appears as more appropriate for now. In conclusion, the ECB monetary policy is already in high stimulus mode and there is not enough hard data to justify the next interest rate cut for now.

Let's now take a look at the EUR/USD technical picture on the daily time frame. The market has broken below the golden trend line and tested it from below. This might mean that the bear camp is getting ready to push the prices lower and the upcoming macroeconomic event might trigger this move towards the next support at the level of 1.0910 and below.

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Global macro overview for 21/07/2016

Global macro overview for 21/07/2016:

The much-anticipated Reserve Bank of New Zealand statement has indicated a change in the monetary policy and increased the odds for a rate cut by the RBNZ at the next meeting in August. There was one important line in the statement, saying: "The high exchange rate is adding further pressure to the dairy and manufacturing sectors and, together with weak global inflation, is holding down tradable goods inflation." In conclusion, the policy confirms market expectations and all global investors will now keep an eye on the next RBNZ meeting.

Let's now take a look at the NZD/USD technical picture on the daily time frame. The bears have managed to violate the important support at the level of 0.7052 and now the market is testing this level from below. The price still trades above the 55, 100 and 200 DMA, so the outlook is still bullish. Only a sustained break out below the level of 0.6672 would change the bias to more bearish.

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Technical analysis of USD/CAD for July 21, 2016

General overview for 21/07/2016:

The price has made another marginal high at the level of 1.3095, but it looks like the corrective pattern on wave (b) is completed. 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. The growing bearish divergence between the price and momentum oscillator is supporting the view.

Support/Resistance:

1.2087 - WS1

1.2972 - Weekly Pivot

1.3011 - Intraday Support

1.3035 - 61% Fibo

1.3095 - Intraday Resistance

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 EUR/JPY for July 21, 2016

General overview for 21/07/2016:

The intraday resistance at the level of 118.38 is preventing the market from any breakout to the upside. Nevertheless, it looks like the wave b is getting more complex and time-consuming, but despite the bearish divergence between the price and momentum oscillator there is no more evidence for any downside movement.

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/JPY for July 21, 2016

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USD/JPY is expected to trade with a bullish bias. The pair emerged to the upside after completing a consolidation phase before taking out the resistances at 106.45 (around the high of July 19) and 108.00. Being supported by the ascending 20-period (30-minute chart) moving average and having formed a bullish channel, it is currently heading toward the immediate resistance at 107.45. The relative strength index is well directed above the neutrality level at 50, suggesting continued upward momentum for the pair. Above 107.45, look for a further bounce toward 108.00 (around the high of June 7). The key support has been raised to 106.45.

Market Commentary:

On Wednesday, US stocks charged higher sending the Dow Jones Industrial Average and the S&P 500 to fresh record closing levels, thanks to positive corporate earnings. Microsoft (MSFT) surged 5.3% and Morgan Stanley (MS) gained 2.1% after posting better-than-expected quarterly results.

The DJIA added 0.2% to 18595, extending its record-setting streak to the seventh straight session and its winning streak to the ninth, the longest such streak since March 2013. The S&P 500 rose 0.4% to 2173, and the Nasdaq Composite jumped 1.1% to 5089.

European stocks also rallied, with the STOXX Europe 600 increasing 1.0%. Germany's DAX surged 1.6%, while the UK's FTSE 100 was up 0.5%.

US government bonds reversed to the downside lifting the benchmark 10-year Treasury yield to 1.582% from 1.558% in the prior session. Gold pulled back on the strength of the US dollar, losing 1.0% to $1316 an ounce. Silver plunged 2.5% to $19.39 an ounce, tallying a loss of 4.7%, or $0.95, an ounce in a five-session losing streak. Meanwhile, Nymex crude oil rebounded 0.7% to $44.94 a barrel.

On the forex front, the US dollar pushed higher against other major currencies. EUR/USD broke the key psychological level of 1.1000 and ran down to 1.0979 before settling at 1.1013, down 0.1% day on the day. USD/JPY rose 0.7% to 106.82. On the other hand, GBP/USD rebounded 0.8% to 1.3208. As a result, the ICE Dollar Index edged up to 97.20 from 97.05 Tuesday, holding its four-month high.

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 107.45 and the second one, at 108.00. In the alternative scenario, short positions are recommended with the first target at 105.80, 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 105.25. The pivot point is at 106.45.

Resistance levels: 107.45, 108, 108.50

Support levels: 105.80, 105.25, 104.60

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Technical analysis of USD/CHF for July 21, 2016

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USD/CHF is expected to trade in a higher range as the bias remains bullish. The pair stands firmly above its horizontal support at 0.9810 as a support base has formed at this level, which should limit downside attempts. Even though a continuation of the consolidation cannot be ruled out, its extent should be limited. As long as 0.9810 is not broken, further upside is expected with the horizontal resistance at 0.9900. A break above this level would open the way to further advance toward the next resistance at 0.9920. Alternatively, only a break below 0.9810 would look for further downside with 0.9780 and 0.9760 as targets.

Resistance levels: 0.9900, 0.9920, 0.9975

Support levels: 0.9780, 0.9760, 0.9735

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Technical analysis of NZD/USD for July 21, 2016

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NZD/USD is expected to extend its downside movement. The pair accelerated on the downside after a downside breakout of its July 19 low around 0.7005 and is likely to test the next support at 0.6940. The declining 20-period and 50-period moving averages are playing resistance roles, which maintains the downside bias. The relative strength index broke has broken below 30.

Following yesterday's 0.3% fall to 0.7025, NZD/USD slumped over 1% to a six-week low of 0.6949 this morning after Reserve Bank of New Zealand Governor Graeme Wheeler hinted at cutting interest rates next month. He said in a statement, "At this stage it seems likely that further policy easing will be required to ensure that future average inflation settles near the middle of the target range.The high exchange rate is adding further pressure to the dairy and manufacturing sectors and, together with weak global inflation, is holding down tradable goods inflation.

To sum up, as long as 0.7040 holds on the upside, the pair is likely to drop to 0.6940 at first and then even to 0.6920.

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 0.6940. A break below this target will move the pair further downwards to 0.6920. The pivot point stands at 0.7040. 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 0.7065 and the second one, at 0.7085.

Resistance levels: 0.7065, 0.7085, 0.7125

Support levels: 0.6940, 0.6920, 0.6875

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Technical analysis of GBP/JPY for July 21, 2016

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GBP/JPY is expected to trade in a higher range. The pair is holding on the upside after it has broken above a bearish trend line. Meanwhile, the relative strength index is bullish above its neutrality area at 50 and calls for further advance. Both the 20-period and 50-period moving averages are heading upward and act as support. To sum up, as long as 139.90 holds on the downside, look for further rise to 142.45 and even 143.25 in extension.

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 142.45 and the second one, at 43.25. In the alternative scenario, short positions are recommended with the first target at 39.30, 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 138.30. The pivot point is at 139.90.

Resistance levels: 142.45, 143.25, 144.15

Support levels: 139.30, 138.30, 136.40

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EUR/JPY Technical Analysis for July 21, 2016.

Technical outlook and chart setups:

The EUR/JPY pair has pushed higher beyond our projections and is seen to be trading around 118.20 levels at this moment. The pair has re-tested 118.40 levels and should be looking to drop lower from here. Please note that EUR/JPY may be carving out a flat A-B-C structure and could possibly drop lower towards 115.30 levels at least. 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 going forward.

Trading recommendations:

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

Good luck!

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GBP/CHF Technical Analysis for July 21, 2016.

Technical outlook and chart setups:

The GBP/CHF pair pushed higher and made a fresh intermediary top at 1.3100 levels overnight. The pair is seen to be trading at 1.3025 levels at the moment, after pulling back lower. The wave structure still indicates that the pair is expected to push higher through 1.3250 levels, which is major resistance on higher timeframes (4H, not seen here). Please note that the 1.2875 level was the termination of wave 4 within a 5-wave rally that has begun from 1.2500 levels earlier. Bulls are poised to remain in control till prices stay above 1.2875 levels going forward. It is hence recommended to remain long with risk below 1.2850 levels. Immediate resistance is seen at 1.3200 levels, while support is at 1.2875 levels respectively.

Trading recommendations:

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

Good luck!

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Silver Technical Analysis for July 21, 2016.

Technical outlook and chart setups:

Silver is seen to be trading lower at $19.25 levels for now, looking to form a bottom around $18.50/19.10 levels. The metal has dropped beyond our projection, but it looks to be forming a flat, and minimum expectations are below $19.00 levels. Please note that a meaningful top is already in place at $21.13 levels, and bears would remain in control till prices stay below. The wave structure also indicates that a break below the trend line support would be extremely encouraging for bears going forward. It is recommended to remain flat for now and look to go short at higher levels. Immediate interim support is seen at $19.20 levels, while resistance is at $21.13 levels respectively.

Trading recommendations:

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

Good luck!

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EUR/GBP Trading Recommendations for 21st July 2016

EUR/GBP is showing a perfect corrective elliott wave structure after making 5 waves down. We now continue to play the rise up after an initial setback with our profit target at 0.8370 (fibonacci retracement + graphical resistance) and stop loss at 0.8300 (recent swing low + fibonacci projection).

The RSI is displaying a bullish divergence vs the price, which adds conviction to the rise we expect from here.

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Trading Recommendations:

Buy now and on weakness

Take profit at 0.8370

Stop loss at 0.8300

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Gold Technical Analysis for July 21, 2016.

Technical outlook and chart setups:

Gold is seen to be trading around $1,314.00/15.00 levels at this moment, looking to form a meaningful bottom soon. The metal has made overnight lows at $1,310.00 levels as expected and discussed yesterday. It is possible that the metal might have already completed 5 waves down from $1,375.00 levels producing an impulse. Please note that the downside remains limited from here and bears might just want to take out $1,305.00 before pulling back sharply. It is hence recommended to book profits on short positions taken earlier and prepare to initiate long positions to take advantage of a potential countertrend rally. Immediate support is seen at $1,305.00 levels, while resistance is at $1,340.00 levels respectively. The metal should be looking to rally, going forward.

Trading recommendations:

Book profits on short positions taken earlier. Prepare to go long around $1,305.00 levels.

Good luck!

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GBP/USD Trading Recommendations for 21st July 2016

GBP/USD remains in a short-term ascending channel with the price holding well above our 55 SMA at 1.3200, which is also a fibonacci golden ratio (62%), horizontal support + channel support. All of this adds up really well to giving us a bullish view for a bounce above 1.3200.

Stochastics remains in an oversold region, where we soon expect a bounce from with price to follow correspondingly.

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Trading Recommendations:

Buy now and above 1.3200

Take profit at 1.3300 with 1.3275 as the first risk level

Stop loss at 1.3170

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

Technical analysis of EUR/USD for July 21, 2016

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When the European market opens, some economic news will be released such as the ECB Press Conference and Minimum Bid Rate. The US will release economic data too such as the Natural Gas Storage, CB Leading Index m/m, Existing Home Sales, HPI m/m, Unemployment Claims, and Philly Fed Manufacturing Index. So amid the reports, EUR/USD will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Breakout BUY Level: 1.1067.

Strong Resistance: 1.1061.

Original Resistance: 1.1050.

Inner Sell Area: 1.1039.

Target Inner Area: 1.1013.

Inner Buy Area: 1.0987.

Original Support: 1.0976.

Strong Support: 1.0965.

Breakout SELL Level: 1.0959.

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 21, 2016

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In Asia, Japan will release the All Industries Activity m/m, and the US will release some economic data such as the Natural Gas Storage, CB Leading Index m/m, Existing Home Sales, HPI m/m, Unemployment Claims, and Philly Fed Manufacturing 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: 107.90.

Resistance. 2: 107.68.

Resistance. 1: 107.47.

Support. 1: 107.21

Support. 2: 107.00.

Support. 3: 106.79.

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 21, 2016

EUR/USD: There is a bearish signal on the EUR/USD, for the price has gone downwards a bit this week. The EMA 11 is below the EMA 56, and the Williams' % Range period 20 is not far from the oversold territory. This means that while there could be transitory bullish attempts here, the price is expected to journey further downwards.

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USD/CHF: This pair tested the resistance level at 0.9900 and got corrected lower. The indicators on the 4-hour chart point to a possibility of further northward journey. But the resistance level at 0.9900 would pose a formidable challenge to bears. The risk of a bearish movement is present.

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GBP/USD: It is safe to assume that the Cable is engaged in a consolidation phase. Neither bulls nor bears can claim a clear victory this week. However, there could be a strong movement any time, which might favor either bulls or bears. Some fundamental figures are expected today, and they would have impact on the market.

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USD/JPY: The USD/JPY has moved upwards by 180 pips this week. The bias is bullish, and the price is above the demand level of 107.00, going towards the supply level of 107.50. There are also demand levels at 106.00 and 105.50, which should try to halt any possible bearish corrections along the way.

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EUR/JPY: This cross is also making bullish attempts – just like the USD/JPY. The EMA 11 is above the EMA 56, while the RSI period 14 is above the level 50. This supports a Bullish Confirmation Pattern on the chart. The next targets for bulls are located at the supply zones of 118.50, 119.00 and 119.50.

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Daily analysis of USDX for July 21, 2016

USDX is still finding resistance around the 97.27 level, where the bulls are getting weak. However, the upside momentum remains alive on the Index, and we expect further consolidation higher to test the 97.74 level on a short-term basis. However, if the USDX index does a pullback at the current stage, then it can decline towards the 96.60 level.

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H1 chart's resistance levels: 97.27 / 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 97.27, take profit is at 97.74 and stop loss is at 96.81.

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Daily analysis of GBP/USD for July 21, 2016

GBP/USD is looking to consolidate higher above the 200 SMA on the H1 chart. The pair is eyeing the 1.3300 psychological level. The Cable has been seeing some bearish momentum the week, but following the BoE Forbes' words yesterday, it performed a rebound and now looks to trade into a bullish bias once again. If the pair breaks above that resistance, then it can test the 1.3459 level.

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H1 chart's resistance levels: 1.3300 / 1.3459

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 1.3459 and stop loss is at 1.3139.

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