Gold analysis for July 26 , 2016

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Since our previous analysis, gold has been trading sideways at the price of $1,320.00. According to the 30M time frame, I found strength in the background, which is a sign that selling looks risky. There is a successful test bar at $1,319.00 (point of control). The price respected the 21SMA, which is a good sign for further upward price. Upward targets are set at the price of $1,324.25 and $1,329.00 (Fibonacci expansion 161.8%)

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,318.70

R2: 1,319.17

R3: 1,321.35

Support levels:

S1: 1,315.45

S2: 1,314.35

S3: 1,312.75

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

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EUR/NZD analysis for July 26, 2016

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Recently, EUR/NZD has been moving downwards. As I expected, the price tested the level of 1.5564 in a high volume. My downward target from yesterday at the price of 1.5670 was reached. According to the 30M time frame, I found a downward trend and sign of further weakness. There is an up-thrust bar and rejection from the 21SMA, which is a good sign for further lower price. I placed the Fibonacci expansion to find potential downward targets. I got the Fibonacci expansion 100% at the price of 1.5530 and the Fibonacci expansion 161.8% at the price of 1.5400.

Fibonacci Pivot Points:

Resistance levels:

R1: 1.5735

R2: 1.5760

R3: 1.5805

Support levels:

S1: 1.5650

S2: 1.5625

S3: 1.5580

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

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USD/CAD intraday technical levels and trading recommendations for July 26, 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.

Daily fixation above 1.2980 (61.8% Fibonacci level) allows a quick bullish movement towards 1.3300 (50% Fibonacci Level) where price action should be watched for significant bearish rejection and a valid SELL entry.

On the other hand, daily fixation below 1.3000 is needed to allow further bearish decline.

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NZD/USD Intraday technical levels and trading recommendations for July 26, 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).

As anticipated, the price zone of 0.7150 - 0.7200 (upper limit of the depicted channel) offered a profitable SELL entry. T/P levels should be located at 0.6970, 0.6900, and 0.6850. S/L should be lowered to 0.7100.

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

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Intraday technical levels and trading recommendations for GBP/USD for July 26, 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 26, 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 (see the monthly candlesticks of May and June).

In the longer term, the level of 0.9450 will remain a projected bearish target if the current monthly candlestick closes 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 the medium-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 breakout of 1.1200 level 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 according to the monthly chart. Bearish fixation below 1.1000 is needed to enhance this bearish scenario.

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

This week, bearish fixation below 1.1000 allows a quick decline towards 1.0820 (key level 2) where price action should be watched.

On the other hand, if the EUR/USD pair keeps trading above the price zone of 1.1000-1.0950 (previous consolidation range), further advance towards 1.1100 and 1.1170 should be expected.

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Technical analysis of NZD/USD for July 26, 2016

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Overview:

  • The NZD/USD pair is showing signs of strength following a breakout of the highest level of 0.7039. On the H1 chart. the level of 0.7039 coincides with 23.6% of Fibonacci, which is expected to act as minor support today. Since the trend is above the 23.6% Fibonacci level, the market is still in an uptrend. But, major support is seen at the level of 0.7039. Furthermore, the trend is still showing strength above the moving average (100). Thus, the market is indicating a bullish opportunity above the above-mentioned support levels, for that the bullish outlook remains the same as long as the 100 EMA is heading to the upside. Therefore, strong support will be found at the level of 0.7039 providing a clear signal to buy with a target seen at 0.7093. If the trend breaks the minor resistance at 0.7093, the pair will move upwards continuing the bullish trend development to the level 0.7138 in order to test the daily resistance 2. However, if the NZD/USD pair fails to break through the resistance level of 0.71 38 today, the market will decline further to 0.7038 in order to test it again.
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Technical analysis of USD/CHF for July 26, 2016

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Overview:

  • The USD/CHF pair faced strong resistances at the levels of 0.9851 because support turned into resistance. So, the strong resistance has been already formed at the level of 0.9851 and the pair is likely to try to approach it in order to test it again. However, if the pair fails to pass through the level of 0.9851, the market will indicate a bearish opportunity below the new strong resistance level of 0.9851 (the level of 0.9851 coincides with a ratio of 61.8% Fibonacci). Moreover, the RSI starts signaling a downward trend, as the trend is still showing strength below the moving average (100). Thus, the market is indicating a bearish opportunity below 0.9851 so it will be good to sell at 0.9851 with the first target of 0.9965. It will also call for a downtrend in order to continue towards 0.9818. Also, it should be noted that the daily strong support is seen at 0.9780. However, the stop loss should always be taken into account, for that it will be reasonable to set your stop loss at the level of 0.9875.

Intraday technical levels:

  • R3: 0.9906
  • R2: 0.9875
  • R1: 0.9851
  • PP: 0.9834
  • S1: 0.9818
  • S2: 0.9780
  • S3: 0.9763
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Technical analysis of USD/JPY for July 26, 2016

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USD/JPY is expected to trade in a lower range. The pair is capped by a declining trend line (since July 25), which confirms a negative view. The downside momentum is further reinforced by its declining 20-period moving average, which acts as a resistance role and maintains the downside bias. Additionally, the relative strength index is below its neutrality level at 50 and lacks upward momentum. As long as 106.65 holds on the upside, look for a further drop towards 103.70. A break below 103.70 would trigger a drop towards 103.30.

Market Commentary:

On Monday, US stock indices ended lower as energy shares were dragged by falling oil prices. The Dow Jones Industrial Average slid 0.4% to 18,493, the S&P 500 fell 0.3% to 2,168, and the Nasdaq Composite was down less than 0.1% to 5,097. Target (TGT) gained 1.8% helping the consumer discretionary sector become the only winner. Yahoo (YHOO) shed 2.7% after announcing the sale of its core internet business to Verizon Communications (VZ).

European stocks edged higher with the STOXX Europe 600 adding 0.2%. Germany's DAX rose 0.5% while the UK's FTSE 100 was down 0.3%.

Nymex crude oil marked a three-month low of $42.97 a barrel before settling at $43.13, 2.4% lower on day. Gold dropped 0.5% to $1,315 an ounce and silver was broadly flat at $19.47 an ounce. The benchmark 10-year US Treasury yield was 1.571%, compared with 1.568% on Friday.

On the economic front, the US Dallas Federal Manufacturing Activity Index improved to -1.3 in July (vs. -10.0 expected) from -18.3 in June. Germany's IFO business climate index fell to 108.3 in July (vs. 107.5 expected) from 108.7 in June, and the expectations sub-index declined to 102.2 (vs. 101.6 expected) from 103.1.

On the forex front, the US dollar softened against other major currencies as traders focused on decisions to be made by the US Federal Reserve and the Bank of Japan later in the week. EUR/USD rebounded 0.2% to 1.0990 (intraday low at 1.0950). GBP/USD gained 0.3% to 1.3140. USD/JPY was down 0.3% to 105.76. As a result, the ICE Dollar Index edged down 0.2% to 97.25.

The Canadian dollar continued to be weighed down by weaker oil prices with USD/CAD advancing 0.7% to 1.3213. The pair gained 2.1% or 270 pips in a winning streak of five straight sessions.

Recommendations:

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 103.70. A break below this target will move the pair further downwards to 103.30. The pivot point stands at 105.65. 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 103.70 and the second one, at 103.30.

Resistance levels: 106.35, 106.75. 107.15

Support levels: 103.70, 103.30, 102.90

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Technical analysis of USD/CHF for July 26, 2016

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USD/CHF is expected to trade with bullish bias above 0.9835. The pair is consolidating below its 20-period and 50-period moving averages. The relative strength index is below its neutrality area at 50. Nevertheless, a support base is formed at 0.9835; it should limit the downside potential. Even though a continuation of consolidation cannot be ruled out, its extent should be limited. As long as 0.9835 holds on the downside, look for a technical rebound towards 0.9900. A break above 0.9875 would call for further advance towards 0.9900. Only a break below 0.9835 would turn the outlook to negative with down targets at 0.9810 and 0.9780.

Resistance levels: 0.9875, 0.9900, 0.9975

Support levels: 0.9810, 0.9780, 0.9760

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Technical analysis of NZD/USD for July 26, 2016

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NZD/USD Intraday: Further advance. The pair is rebounding and broke above its 20-period and 50-period moving averages. The relative strength index is above its neutrality level at 50%. On the forex front, the US dollar softened against other major currencies as traders focused on decisions to be made by the US Federal Reserve and the Bank of Japan later this week. Further bounce is therefore expected with 0.7065 and 0.7090 as the next targets.

Recommendation:

The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. Therefore, long positions are recommended with the first target at 0.7065 and the second one, at 0.7090. In the alternative scenario, short positions are recommended with the first target at 0.6950 if the price moves below its pivot points. A break of this target is likely to push the pair further downwards, and one may expect the second target at 0.6920. The pivot point is at 0.6970.

Resistance levels: 0.7065, 0.7085, 0.7125

Support levels: 0.6950, 0.6920, 0.6875

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Technical analysis of GBP/JPY for July 26, 2016

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GBP/JPY is expected to trade in a lower range as key resistance is at 138.70. The pair broke down the lower Bollinger band, and it is expected to look for a lower bottom. Meanwhile the relative strength index is badly directed. European stocks edged higher with the STOXX Europe 600 adding 0.2%. Germany's DAX rose 0.5% while the UK's FTSE 100 was down 0.3%. As long as 138.70 holds as the key resistance, a break towards 134.95 is possible.

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 135.75. A break below this target will move the pair further downwards to 134.95. The pivot point stands at 138.70. 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 139.45 and the second one, at 140.15.

Resistance levels: 139.45, 140.15, 141.30

Support levels: 135.75, 134.95, 133.80

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Global macro overview for 26/07/2016

Global macro analysis for 26/07/2016:

The oversupply concerns continue to weight on crude oil market. Despite the fact that the US crude inventories are continuing to point to declines week after week (-2,342K vs. -2,000K expected and -2,567K prior), the price of the crude oil can not rebound due to the oversupplied market. Moreover, the US rig count is increasing (462 vs. 447 expected), so the drilling activity in the US is in the uptrend as well. This situation is rising concerns, because higher production levels in the US increase the supply levels and might push the oil prices even lower.

Let's now take a look at the Crude Oil technical picture in the daily time frame. In late June, the US crude broke above the $50 level (51.60 high). But since then, it has dropped sharply, losing more than 12 percent in that time. Currently, it is trading close to the 38%Fibo at the level of 41.91 and this level seems to be the next target for bears. Please notice the area from 42.99 to 41.86 will act as a strong, important support, because any break out lower will push the prices towards next support at the level of 38.88.

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EUR/AUD Trading Recommendations for 26th July 2016

EUR/AUD bounced up above our 1.4500 support. Now we continue to play the weekly rise to the 1.5200 level. Our stop loss remains at 1.4370, which is long-term horizontal support + Fibonacci support. We can also see how RSI is doing a nice pullback onto descending support. The price is yet to fulfill it's bullish divergence potential.

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Trading Recommendations:

Buy now and on dips

Stop loss is at 1.4370

Take profit is at 1.5200

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AUD/NZD Trading Recommendation for 26th July 2016

AUD/NZD bounced right above our stop loss and remains at a really good entry level to make a rise up to 1.0755. We can see that 1.0655 is fractal support and also corresponds with the ascending support we can see on RSI. We adjust our take profit to 1.0755, which is the last major swing high.

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Trading Recommendations :

Buy now

Stop loss is tight at 1.0655

Take profit is at 1.0755

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Global macro overview for 26/07/2016

Global macro analysis for 26/07/2016:

Just three days before the Bank Of Japan meeting, the general expectations regarding huge amount of stimulus seems to be fading away. Various officials have been out on the financial mass media overnight and the general tone seems to be very cautious towards the amount of the anticipated stimulus. Japan finance minister Aso said, that government has yet to decide on size of stimulus spending and it is still considering appropriate amount. In conclusion, the BoJ meeting might not deliver the highly anticipated huge stimulus, but more appropriate amount.

Let's now take a look at the USD/JPY technical picture in the daily time frame ahead of the BoJ meeting. The bear camp has managed to push the price lower towards the 50%Fibo at the level of 103.73. Moreover, the price is trading below 55,100, and 200 DMA, which clearly indicated a bull market.

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Technical analysis of USDX for July 26, 2016

The Dollar index got rejected at the weekly resistance we mentioned in our previous posts, and this is a bearish sign. The Dollar index rejection combined with several other indicators implies more downside for the Dollar ahead.

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Blue lines - bullish channel

Red lines - trading range

The Dollar index has broken below the short-term bullish channel. Was the breakout a false one? The price is currently re-testing the breakout level of 96.70 which was the triple top high. With oscillators diverging, it seems that the index will pull back deeper even below the cloud support at 96.60, maybe towards 95. For this scenario to be canceled, the Dollar index needs to break above 97.60.

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The upper cloud boundary resistance remains intact. The price got rejected at that area, and this will put the lower boundary of the cloud to the test. The next support is the weekly kijun-sen at 95.80. If this week's candle closes with a rejection at the upper cloud boundary, we should expect a pullback towards 95.

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Technical analysis of Gold for July 26, 2016

Gold had not much action yesterday as has mainly been trading sideways for the last couple of sessions between $1,310 and $1,330. The short-term trend remains bearish as the price is making lower highs and lower lows. Important medium-term support is at $1,280-$1,300.

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Red line - resistance trend line

Gold is below the trendline resistance and below the 4-hour Kumo. No sign of a bullish reversal yet. Short-term resistance is at $1,325 while support is at $1,312. Breaking above $1,325 could push Gold even towards $1,340-45. A break above $1,350 will increase the chances of a new high. If support fails to hold, we should expect Gold to dip below $1,300.

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Blue lines - bullish channel

Gold has most probably completed the entire rise from $1,045 and has now started a multi-week corrective pullback that should bring the price at least towards $1,250 if not $1,170. I remain longer-term bullish in Gold as long as the price is above $1,045 targeting above $1,500.

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Technical analysis of EUR/JPY for July 26, 2016

General overview for 26/07/2016:

As anticipated yesterday, the wave c of the overall downside corrective cycle has hit 50% Fibo at the level of 114.57. This level is an important technical support as well, so the low for the wave b green might be in place. Nevertheless, as long as the intraday resistance at the level of 115.48 is not violated, the bears might extend the drop towards 61% Fibo at the level of 113.73.

Support/Resistance:

119.22 - WR2

118.38 - Wave b Top

117.63 - WR1

116.88 - Weekly Pivot

115.48 - Intraday Resistance

115.34 - WS1

114.81 - Technical Support

114.57 - WS2

113.73 - 61% Fibo

113.01 - WS3

Trading recommendations:

All sell orders from last week should now be closed as the TP at the level of 115.48 has been hit. Please note that the next TP for the sell orders is at the level of 113.73.

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Technical analysis of USD/CAD for July 26, 2016

General overview for 26/07/2016:

The current count has been slightly adjusted, and now the bottom for the wave X brown has been established at the level of 1.2861. This means the current upward wave development is the wave Y brown in progression. It looks like one more marginal high is needed before the top for this wave is in place. Nevertheless, as long as the golden trend line is now clearly violated and the intraday support at the level of 1.3056 is still providing support for bulls, the market might still be making marginal highs.

Support/Resistance:

1.3255 - WR1

1.3243 - Intraday Resistance

1.3090 - Weekly Pivot

1.3185 - Intraday Support

1.2998 - WS1

1.2835 - WS2

Trading recommendations:

Traders should refrain from opening new positions until a better trading setup occurs. The general bias, however, is bearish as the wave Y is about to complete.

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Elliott wave analysis of EUR/NZD for July 26 - 2016

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Wave summary:

The corrective decline in wave ii does not look complete yet, and more downside pressure towards the 50% corrective target at 1.5506 and maybe even lower to the 61.8% corrective target at 1.5404 cannot be ruled out as long as the minor resistance line near 1.5731 is able to protect the upside.

Only from 1.5506 or upon a direct break above 1.5731 should a new impulsive rally be expected.

Trading recommendation:

If you went long from 1.5545, then move your stop to the breakeven and take profit at 1.5720. Waiting for a new buying opportunity near 1.5506.

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Elliott wave analysis of EUR/JPY for July 26 - 2016

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Wave summary:

The expected corrective decline in wave [ii] picked up speed and broke below support at 114.80 calling for a deeper correction closer to 113.70 (61.8% of wave [i]) and maybe even lower to 112.42 (78.6% of wave [i]).

Short term, resistance is now seen at 115.44, which likely will hold for a decline closer to 113.70.

Trading recommendation:

Look for a buying opportunity near 113.70.

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GBPCHF Technical Analysis for July 26, 2016.

Technical outlook and chart setups:

The GBP/CHF pair continues to drift sideways in a triangle structure with decreasing resistance and constant support. The support region seems to be around 1.2875/80 levels while resistance has been dropping since 1.3200 levels. The pair is seen to be trading at 1.2930 levels at the moment and should be looking to break higher but needs to push above 1.3050 levels to confirm. 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 also note that 1.2875 levels were the termination of wave 4 within the 5 waves rally that begun from 1.2500 levels earlier. Bulls should remain poised to stay in control till prices trade above 1.2875 levels going forward. It is hence recommended to remain long with a 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, and target 1.3250.

Good luck!

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EURJPY Technical Analysis for July 26, 2016.

Technical outlook and chart setups:

The EUR/JPY pair has finally produced a sharp reversal after hitting highs at 118.47/50 levels. The pair has dropped below 115.30 levels as discussed earlier and is seen to be trading at 114.60/70 levels at this moment, within just 3 trading sessions. Please note that EUR/JPY has carved out an expanded flat A-B-C structure and could possibly terminate around 113.50 levels at the most. The wave structure also reveals that the pair has unfolded into 5 waves from 109.50 levels (not seen here) and should produce a meaningful retracement lower towards 113.50 levels, if not further. It is hence recommended to book at least partial profits on short positions taken earlier, also move risk to breakeven levels on the remaining positions. Immediate intermediary support is seen at 114.50 levels, while resistance is at 116.70 levels respectively. Bears are expected to remain in control till prices hit 113.50 levels.

Trading recommendations:

Book partial/full profits on short positions taken earlier.

Good luck!

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Silver Technical Analysis for July 26, 2016.

Technical outlook and chart setups:

Silver is seen to be trading at $19.60 levels for now, after having bottomed out around $19.30 levels yesterday. Please note that Silver produced a huge bullish engulfing candlestick pattern right after hitting lows at $19.30 levels, indicating a potential reversal ahead. The metal looks poised to rally from here towards at least $20.40/50 levels as depicted on the hourly chart here. Bulls are expected to remain in control in the short term, before the metal carves out a lower top ahead of $21.13 levels. Please also note that a meaningful top is already in place at $21.13 levels and that prices should remain well capped below the same level. The wave structure also indicates that a flat trend is underway and the metal is expected to turn lower from around $20.50/80 levels. It is recommended to remain flat for now and look to go short at higher levels; aggressive traders may remain long with risk below $19.25 levels. Immediate interim support is seen at $19.20 levels, while resistance is at $21.13 levels respectively.

Trading recommendations:

No change. Aggressive traders may remain long, stop below $19.25. Conservative traders look to go short at $20.50/80 levels.

Good luck!

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Gold Technical Analysis for July 26, 2016.

Technical outlook and chart setups:

Gold is seen to be trading at $1,316.00/17.00 levels at this moment, after having hit lows at $1,312.00 yesterday. Please note that the metal is trading/drifting sideways in a tight range between $1,315.00 and $1.323.00 levels. The yellow metal might still unfold a countertrend rally towards $1,350.00/60.00 levels going forward, but needs to at least break above $1,330.00 levels to confirm. The wave structure also indicates that the drop from $1,375.00 through $1,310.00 levels is an impulse (5 waves), and hence a countertrend rally is most probable to unfold. Bulls would want to remain in control till prices stay above $1,310.00 levels. Please also note that the metal might drop to $1,305.00/07.00 levels before reversing. It is hence recommended to remain long (aggressive trade setup) for now with risk below $1,310.00 levels. Immediate support is seen at $1,310.00 levels, while resistance is at $1,334.00 levels respectively.

Trading recommendations:

Remain long, stop below $1,310.00, targeting $1,350.00.

Good luck!

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Technical analysis of EUR/USD for July 26, 2016

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When the European market opens, some economic data will be released such as Belgian NBB Business Climate. The US will release economic data too such as the Richmond Manufacturing Index, New Home Sales, CB Consumer Confidence, Flash Services PMI, and S&P/CS Composite-20 HPI y/y. So amid the reports, EUR/USD will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Breakout BUY Level: 1.1038.

Strong Resistance: 1.1032.

Original Resistance: 1.1021.

Inner Sell Area: 1.1010.

Target Inner Area: 1.0985.

Inner Buy Area: 1.0960.

Original Support: 1.0949.

Strong Support: 1.0938.

Breakout SELL Level: 1.0932.

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 26, 2016

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In Asia, Japan will release the SPPI y/y, and the US will release some economic data such as the Richmond Manufacturing Index, New Home Sales, CB Consumer Confidence, Flash Services PMI, and S&P/CS Composite-20 HPI y/y. So there is a probability the USD/JPY will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Resistance. 3: 105.44.

Resistance. 2: 105.24.

Resistance. 1: 105.03.

Support. 1: 104.78

Support. 2: 104.57.

Support. 3: 104.36.

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 26, 2016

EUR/USD: This pair made a faint effort to go upwards yesterday, but nothing has really changed. There is a "sell" signal on the 4-hour chart, and there is a high probability that the price would go further downwards this week, especially in the face of expected stamina in USD, which would aid bears.

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USD/CHF: The USD/CHF has been able to maintain its bullishness. There is a Bullish Confirmation Pattern on the chart, and further upwards movement is possible. The price has gone above the support level at 0.9850, testing the resistance level at 0.9900. Despite several bullish attacks, the resistance level is yet to be broken to the upside. However, that objective could be realized this week.

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GBP/USD: The Cable traded sideways last week, not going above the distribution territory at 1.3400, nor going below the accumulation territory at 1.2950. This stance has not changed this week. This has caused the bias to become neutral in the near term. But there could be a breakout this week or next, which would push the price above or below the aforementioned accumulation and distribution territories.

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USD/JPY: This currency trading instrument is showing a sign of weakness – something that could jeopardize the existing bullish bias – especially in the face of the expected weakness in JPY pairs this week. Further downwards movement is a possibility, and this can eventually lead to a Bearish Confirmation Pattern on the chart.

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EUR/JPY: There are mixed signal on this cross. It consolidated to the downside yesterday, but things have not gone completely bearish. That expectation could come to fruition this week; owing to a possible weakness in JPY pairs. Thus, bears might be able to target the demand zones at 116.00, 115.50, and 115.00 this week.

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Daily analysis of USDX for July 26, 2016

USDX is trying to extend the decline below the 97.27 level, and it targets to test the 96.60 level, which is below the 200 SMA on the H1 chart. Bulls are still leading the road on the index, but as long as the USDX succeeds in breaking the latest lows, it could try to resume the bearish bias. On the other hand, a consolidation above the 97.74 level can open the doors to test the 98.23 price zone.

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H1 chart's resistance levels: 97.74 / 98.23

H1 chart's support levels: 97.27 / 96.60

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 97.24.

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Daily analysis of GBP/USD for July 26, 2016

The pair is trading below the barrier of 1.3148, where it's currently capped. The bears are still struggling to drive the Cable toward new lows, as the support zone of 1.3076 remains solid. A breakout below will open the doors to test the 1.2976 level, where a rebound is expected. However, the MACD indicator is entering the positive territory, and it could favour the bulls.

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H1 chart's resistance levels: 1.3148 / 1.3266

H1 chart's support levels: 1.3076 / 1.2976

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 1.3266 and stop loss is at 1.3026.

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

Daily analysis of EUR/JPY for July 25, 2016

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Overview

The EURJPY pair was affected by the strength of the 118.50 barrier last Friday. There was a quick rebound towards 116.80, which might push the price to lose the domination of the bullish correction and start expectations for a decline towards 115.05 followed by 112.90. The decline of SMA 55 below the bearish channel's resistance and stochastic reaching the oversold areas increase the negative pressure on the current trades, thus also increasing the chances of reaching our awaited negative target. The expected trading range for today is between 118.10 and 115.05.

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Daily analysis of GBP/JPY for July 25, 2016

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Overview

The GBPJPY pair provided a new positive close above the main support line extension at 136.20 besides the additional barrier formed by 23.6% Fibonacci level around 137.00 against the bullish attempts. A breach of the 142.30 level will confirm the attempt to resume the bullish attack and begin recording the awaited targets that start at 144.00 followed by 146.15. The lack of the bullish momentum – especially given stochastic approach from 20 levels - supports the sideways domination for the near term until succeeding to gather new bullish momentum to increase the chances of breaching the mentioned barrier. The expected trading range for today is between 137.00 and 142.00.

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Daily analysis of Gold for July 25, 2016

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Overview

The gold price is testing the intraday bullish trend line shown on the chart. Stochastic reaches oversold areas, creating a positive factor that we are awaiting to make the price resume the main bullish bias that depends on the stability above 1,297.75. Therefore, we are waiting for positive trades in the upcoming sessions. The targets begin at 1,375.00 and extend to 1,400.00, taking into consideration that a break of 1,311.00 followed by 1,297.75 will confirm completing of negative formation that has the ability to push the price to visit 1,249.95 before any new attempt to rise. The expected trading range for today is between the 1,300.00 support and the 1,350.00 resistance.

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Daily analysis of Silver for July 25, 2016

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Overview

Silver price is trading at the key support 19.35, which represents the 23.6% Fibonacci level for the rise measured from 13.75 to 21.08. Thus, holding above this level represents the key condition to the continuation of the recently suggested positive scenario and guarantees not extending of the correctional bearish wave on the short term basis. Stochastic provides clear positive signals in the four-hour time frame to reinforce the continuation of our bullish trend expectations in the upcoming period as the positive targets are at 21.08 and then, at 22.00. The expected trading range for today is between the 19.00 support and the 20.10 resistance.

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