Daily analysis of EUR/JPY for July 27, 2016

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Overview

The EURJPY pair made a positive intraday rebound yesterday by reaching 117.10. The negativity continuation is due to steady trading within the main bearish channel, supported by holding the initial resistance at 118.50, besides the bearish channel's resistance decline towards 120.25. Therefore, we are awaiting negative momentum once again in order to push the price to decline below 115.10 levels and increase the chances of reaching the main target at 113.00. Closing above 117.00 could postpone the negative overview and lead to mixed trading.

The expected trading range for today is between 117.00 and 113.00.

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Daily analysis of GBP/JPY for July 27, 2016

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Overview

The GBP/JPY pair declined yesterday to test the main support at 136.00. The bullish bias domination is confirmed by a formation of the strong bullish rebound towards 138.75. It proves the continuation of the bullish bias. Thus, we can expect the price to reach the first target at 140.00 followed by renewing the pressure on the 143.10 barrier. Stochastic begins to support the bullish attempts by forming positive wave to allow the price to gather the required momentum in order to achieve the waited targets. The expected trading range for today is between 137.00 and 140.00

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Daily analysis of Gold for July 27, 2016

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Overview

The gold price keeps trading above the intraday bullish trend line, while facing resistance formed by the EMA50 at 1,325.00. The price needs to breach this level continue the bullish trend on the intraday and short-term bases. In general, the bullish trend scenario will be still valid and active for the upcoming sessions as long as the price is above 1,312.00 and 1,297.75 levels. The main awaited targets begin at 1,375.00 and extend to 1,400.00.

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 27, 2016

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Overview

Silver price is fluctuating around the EMA50. The price finds it difficult to surpass this barrier that gets support by stochastic negativity. This might cause some sideways fluctuation before turning back to resume the bullish bias. Therefore, we will continue to suggest the bullish trend on the intraday and short-term basis as long as the price is above 19.35 level. It is expected that the price will surpass the 20.10 level to ease the mission of heading towards the recently recorded top at 21.12. This will remind you that breaking of the 19.35 level can put the price under the correctional bearish pressure that targets 18.30 level before any new attempt to rise. The expected trading range for today is between the 19.00 support and the 20.10 resistance.

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USD/CAD intraday technical levels and trading recommendations for July 27, 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 27, 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 trade. 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 27, 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 27, 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 (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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EUR/NZD analysis for July 27, 2016

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Recently, EUR/NZD has been moving downwards. As I expected, the price tested the level of 1.5526 in a high volume. According to the 4H time frame, I found weakness in the background and broken upward channel, which is a sign that buying looks risky. I also found a supply trendline, which held successfully (a strong pin bar). My advice is to watch for selling opportunities. I placed Fibonacci to find potential downward targets. I got Fibonacci retracement 50% at the price of 1.5475 and Fibonacci retracement 61.8% at the price of 1.5390.

Fibonacci Pivot Points:

Resistance levels:

R1: 1.5685

R2: 1.5730

R3: 1.5805

Support levels:

S1: 1.5535

S2: 1.5485

S3: 1.5410

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

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Gold analysis for July 27, 2016

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Since our previous analysis, gold has been trading sideways at the price of $1,320.00. According to the 4H time frame, I found strength in the background. I found bullish engulfing pattern, a double bar low with a higher close with ultra high volume demand and the morning star formation. All of these formations happened near the strong support at the price of $1,312.00. I have placed Fibonacci expansion to find potential upward targets. I got Fibonacci expansion 61.8% at the price of $1,326.00 and Fibonacci expansion 100% at the price of $1,335.00.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,320.70

R2: 1,321.90

R3: 1,323.85

Support levels:

S1: 1,316.80

S2: 1,315.60

S3: 1,313.65

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

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Technical analysis of NZD/USD for July 27, 2016

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Overview:

  • The NZD/USD pair was trading around the area of 0.7090-0.7050 two days ago. Today, the level of 0.7093 represents a weekly pivot point in the H1 time frame. The pair has already formed minor resistance at 0.7093 and the strong resistance is seen at the level of 0.7182 because it represents a golden ratio (61.8% of Fibonacci). So, major resistance is seen at 0.7182, while immediate resistance is found at 0.7093.
  • If the pair closes below the weekly pivot point of 0.7093, the NZD/USD pair may resume its movement to 0.6995. From this point, we expect the NZD/USD pair to move between the levels of 0.7093 and 0.6995. Equally important, the RSI is still calling for a strong bearish market. But also it should be noted that the current price is also above the moving average 100, for that it is recommended to be careful while placing orders in this zone. As a result, sell below the weekly pivot point of 0.7093 with targets at 0.6995 and 0.6951 in order to form a double bottom. On the other hand, stop loss should always be taken into account, accordingly, it will be of beneficial to set the stop loss above the last bullish wave at the level of 0.7200. If the NZD/USD pair succeeds to break through the weekly pivot point level of 0.7093 today, the market will move upwards continuing the development of the bullish trend to the level 0.7183.
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Technical analysis of USD/CHF for July 27, 2016

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Overview:

  • The USD/CHF pair broken support at the level of 0.9862, which acts as a support now. According to the previous events, the USD/CHF pair is still moving between the levels of 0.9862 and 1.0000. Therefore, we expect a range of 138 pips in coming hours. The trend is still above the 100 EMA for that the bullish outlook remains the same as long as the 100 EMA is headed to the upside. Hence, the price spot of 0.9862 remains a significant support zone. Consequently, there is a possibility that the USD/CHF pair will move upside. The structure of climbing does not look corrective. In order to indicate a bullish opportunity above 0.9862, buy above 0.9862 with the first target at 0.9955. Besides, the weekly resistance 1 is seen at the level of 0.9955. However, traders should watch for any sign of a bullish rejection that occurs around 0.9955. The level of 0.9955 coincides with the double top. If the pair is able to break the price of 0.9955, then the market will continue moving towards the next objective at 1.0000. Moreover, since the trend is above the level of 0.9862, the market is still in an uptrend. Overall, we still prefer the bullish scenario today.
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Daily analysis of major pairs for July 27, 2016

EUR/USD: On this market, 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 the expected stamina in the USD, which would aid bears.

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USD/CHF: This pair was able to go further upwards, especially after what happened on July 26, 2016. The support level at 0.9900 was finally breached as a result of the price action, which upheld bulls' decision to push the market upwards. The next target is the resistance level at 0.9950.

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GBP/USD: The Cable is still trading sideways this week without going above the distribution territory at 1.3400 and below the accumulation territory at 1.2950. 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 price above or below the aforementioned accumulation and distribution territories.

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USD/JPY: The USD/JPY has gone downwards by 200 pips this week, followed by a shallow bullish effort. The downward movement resulted in a bearish signal. Further downward trend is expected. It would enable the price to reach the demand levels at 104.00 and 103.50. The demand level at 104.00 was previously tested and it would be tested again.

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EUR/JPY: Just like the USD/JPY, this cross has also gone downwards by 200 pips this week, testing the demand zone at 114.50. The EMA 11 crossed the EMA 56 to the downside and the RSI period 14 went below the level 50. This has resulted in a Bullish Confirmation Pattern on the chart. The demand zone at 114.50 was tested and it would be tested again: It would even be breached to the downside.

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Technical analysis of USD/JPY for July 27, 2016

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USD/JPY is expected to trade with bullish bias. The pair posted a rebound this morning turning the intraday outlook to bullish. Currently, it has broken above the upper Bollinger band as those bands are widening, calling for an acceleration to the upside. At the same time, the 20-period (30-minute chart) crossed above the 50-period one while the intraday relative index is approaching the overbought level of 70, indicating upward momentum for the pair. The newly-developed bullish bias is expected to bring the pair up to the first upside target at 106.35. The key support is located at 104.95.

Market Commentary:

On Tuesday, US stocks ended mixed after trimming losses seen earlier in the session, as the US Federal Reserve started a two-day meeting to discuss interest rates. The Dow Jones Industrial Average edged down 19 points or 0.1% to 18,473, the S&P 500 added less than 1 point to 2,169, and the Nasdaq Composite was up 12 points to 5,110.

European stocks were positive with the STOXX Europe 600 gaining 0.1%. Germany's DAX increased 0.5% while the UK's FTSE 100 was up 0.2%.

Nymex crude oil continued on its downtrend falling 0.5% to $42.92 a barrel. Gold rebounded 0.4% to $1,319 an ounce and silver climbed 0.5% to $19.62 an ounce. The benchmark 10-year US treasury yield declined to 1.561% from 1.571% on Monday.

On the US economic data front, the Markit Services PMI dropped to 50.9 in July, according to preliminary estimates, (vs. 52 expected) from 51.4 in June, while the Composite PMI edged up to 51.5 in July from 51.2. The Consumer Confidence Index remained relatively stable at 97.3 in July (vs. 96 expected). The Richmond Federal Manufacturing Index jumped to 10 in July (vs. -5 expected) from -10 in June. Separately, new home sales increased to 592,000 units in June (vs. 560,000 units expected) from 572,000 units in May.

Regarding forex trading, the Japanese yen strengthened against other major currencies yesterday as expectations for the Japanese authorities to launch immediate and huge stimulus measures faded. USD/JPY plunged over 1.6% down to 103.98 before closing at 104.64, down 1.1% on day. EUR/JPY fell 1.2% to 114.88 and GBP/JPY was down 1.1% to 137.41.

The British pound was under pressure yesterday as Martin Weale, a member of Bank of England's monetary policy committee, said in a Financial Times interview that the latest UK purchasing managers' data was a lot worse than he thought and would be very material for the central bank's next policy meeting. GBP/USD touched 1.3055 on the downside before closing at 1.3127, down 0.1% on day.

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 106.35 and the second one, at 106.75. In the alternative scenario, short positions are recommended with the first target at 104.50 if the price moves below its pivot points. A break of this target is likely to push the pair further downwards, and one may expect the second target at 103.95. The pivot point is at 104.95.

Resistance levels: 106.35, 106.75. 107.15

Support levels: 104.50, 103.95, 103.30

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Technical analysis of USD/CHF for July 27, 2016

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USD/CHF is expected to prevail its upside movement. The pair broke above a declining trend line, which emerged on July 25, and accelerated on the upside. The rising 50-period moving average is playing a support role and maintains the upside bias. The relative strength index stands firmly above its neutrality level at 50 and lacks downward momentum. On the US economic data front, the Markit Services PMI dropped to 50.9 in a preliminary estimate in July (vs. 52 expected) from 51.4 in June, while the Composite PMI edged up to 51.5 in July from 51.2. The Consumer Confidence Index remained relatively stable at 97.3 in July (vs. 96 expected). The Richmond Federal Manufacturing Index jumped to 10 in July (vs. -5 expected) from -10 in June. Separately, new home sales increased to 592,000 units in June (vs. 560,000 units expected) from 572,000 units in May.

Additionally, a support base is formed around 0.9875, which should limit the downside potential. As long as this key level is not broken, look for further upside movement towards 0.9955 and 0.9975 in extension.

Resistance levels: 0.9955, 0.9975, 1.0045

Support levels: 0.9840, 0.9815, 0.9780

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Technical analysis of NZD/USD for July 27, 2016

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NZD/USD is expected to prevail its upside movement. The technical picture of NZD/USD is positive above its key support at 0.6995, which should limit the downside potential. The upside momentum is further reinforced by its rising 50-period moving average, which is playing a support role and maintains the upside bias. The relative strength index stands firmly above its neutrality level at 50 and lacks downward momentum. As long as 0.6995 holds on the downside, look for further upside movement towards 0.7065 and 0.7095 in extension.

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 0.6970 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 0.6950. The pivot point is at 0.6995.

Resistance levels: 0.7065, 0.7085, 0.7125

Support levels: 0.6970, 0.6950, 0.6920

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Technical analysis of GBP/JPY for July 27, 2016

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GBP/JPY is expected to trade with bullish bias above 137.20. The pair remains in a consolidation phase, which was initiated after an intraday high. Currently, it is trading above the key support at 137.20 though intraday technical indicators are a bit negative. As long as 137.20 holds as the key support, the pair is expected to retest the first upside target at 140.15.

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 140.15 and the second one, at 141.10. In the alternative scenario, short positions are recommended with the first target at 136.60 if the price moves below its pivot points. A break of this target is likely to push the pair further downwards, and one may expect the second target at 135.90. The pivot point is at 137.20.

Resistance levels: 140.15, 141.25, 142.40

Support levels: 136.60, 135.90, 134.95

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Technical analysis of USDX for July 27, 2016

The US dollar index is holding above the triple top and breakout area of 96.70 despite the pullback we saw yesterday. The dollar index is showing divergence signs, which imply that the dollar bulls should be very cautious.

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Blue line - triple top break out level

Red lines - long-term trading range

The dollar index is above the 4 hour Kumo and above the breakout level of 96.70. As long as we are above it, bulls are still alive but more strength and a break above 97.60 is needed. If yesterday's lows are broken we should expect more downside for the dollar index as we will have confirmation of the false breakout.

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The weekly candle is testing the upper cloud boundary. A breakout above the weekly cloud will be a bullish sign. The weekly stochastic is about to make a bearish cross and bulls should be very cautious as we are in overbought levels and near resistance levels.The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of Gold for July 27, 2016

Gold price continues trading sideways and remains below short-term resistance levels. Once the trading range of $1,310-$1,325 is broken we will see either a move towards $1,280 or $1,350.

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Red line - resistance trend line

Gold price is below the red trend line resistance and below the 4 hour Kumo. The trend will change only if price breaks above $1,350. The short-term trend will change to neutral only if price breaks above $1,325. Support is at $1,310. Breaking below that level will open a move towards $1,280.

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Blue lines - bullish channel

Gold price has started the correction of the entire rise from $1,045. A pullback towards $1,200-$1,180 is very possible. However, for this scenario to come true we first need to see a weekly close below $1,250. My longer-term view remains bullish and any pullback towards $1,200-$1,170 will be a gift for bulls.

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GBPCHF Technical Analysis for July 27, 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 at 1.2875/80 levels, while resistance has been dropping since 1.3200 levels. The pair is seen to be trading at 1.3020 levels at the moment and should be looking to break higher above the resistance line as depicted on the chart view here. 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 wave 4 seems to have been terminated around 1.2866 levels yesterday, and the pair has bounced back sharply higher. Bulls should remain poised to stay in control till prices trade above 1.2855 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!

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

Elliott wave analysis of EUR/NZD for July 27 - 2016

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Wave summary:

As we said yesterday, the corrective decline from 1.5839 did not look complete and one more decline to 1.5506 should be expected. We then laid out a path that might account for the move towards 1.5506. We did not see a rally to 1.5730 before the decline to 1.5506 (the low has been seen at 1.5497), but otherwise the outlined path did a pretty good job. The odds now favor a low being in place with the test of 1.5497, and a break above the minor resistance line near 1.5688 will be the first strong indication of a new impulsive rally higher to at least 1.6738.

Trading recommendation:

We bought EUR again at 1.5510 and have placed our stop at 1.5490. If you are not long in EUR yet, then buy a break above 1.5688 and use the same stop at 1.5490 to start with.

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

Global macro overview for 27/07/2016

Global macro analysis for 27/07/2016:

The New Zealand Trade Balance data revealed that the trade surplus shrank more than expected in June. Statistics New Zealand said in a report that the trade surplus hit $127M, almost in line with the market expectations of $128M, and it was a sixth consecutive trade surplus. On a yearly basis, New Zealand had a deficit of -$3.3 billion, while in May the year-over-year deficit was -$3.6 billion. In conclusion, this data indicates the New Zealand economy is expanding at a steady pace, but it is facing deflationary pressures: inflation remains low and the RBNZ has made several rate cuts already. To improve the situation, another rate cut is being expected by the end of the year.

Let's now take a look at the GBP/NZD technical picture on the intraday time frame. After an impressive rally from the 1.7700 level up to the 1.904 level, the market entered a corrective cycle and managed to retrace 38% of this rally. Currently, the price is moving inside of the channel (dashed line), but it is below the golden trend line already. The key level for bulls is 50% Fibo at the level of 1.8374, and this level must hold if any new high is made any time soon.

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EURJPY Technical Analysis for July 27, 2016.

Technical outlook and chart setups:

The EUR/JPY pair is seen to be trading at 116.09 levels at this moment, after having reversed from 114.50 levels yesterday. Please note that the expanded flat structure seems to have terminated at 114.50 levels, and the pair is now expected to rally towards fresh highs above 118.50 levels going forward. The wave structure also reveals that the pair had unfolded into 5 waves from 109.50 levels (not seen here) and has now unfolded as a flat retracement towards fibonacci 0.50 levels at 114.50. It is hence recommended to turn bullish from these levels and also on dips towards 115.00 levels, with risk below 114.50. Immediate intermediary support is seen at 114.50 levels, while resistance is at 117.50 levels respectively. Bulls are expected to remain in control till prices stay above 114.50 levels.

Trading recommendations:

Go long now, stop below 114.50, target is open.

Good luck!

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

Elliott wave analysis of EUR/JPY for July 27 - 2016

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Wave summary:

The correction in wave [ii], completed with the test of 114.42 and wave [iii] towards at least 120.03, is now developing. Short term, we will likely see support near 115.42 protect the downside for the next rally through minor resistance at 117.15 for the next rally towards 120.03 and possibly even higher.

Trading recommendation:

We missed our 113.70 buying target. We will buy EUR at 115.55 or upon a break above resistance at 117.15 with stop placed at 114.40.

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

Global macro overview for 27/07/2016

Global macro analysis for 27/07/2016:

The Federal Reserve's interest rate decision is the main event of the day, scheduled for release at 06:00 pm GMT. Market participants are not expecting any change in interest rates, so they should stay at the level of 0.50%. The CME Group FedWatch tool implied probability of a rate hike to 0.75% is at the level of 2.4% only (at the time of writing), so no change is being expected here as well. However, this week's FOMC meeting is facing increased importance due the uptick in US economic data since June's Non-Farm Payroll announcement. Due to this upbeat NFP figures, the Fed has some scope for being hawkish and might signal another rate hike later this year.

Let's now take a look at the US Dollar index technical picture on the daily time frame. The bulls have managed to retrace 61% of the previous swing down, and now the market is at the key level. Any breakout above 97.57 will open the road towards the next target at the level of 98.59. Please notice that this scenario is being supported by the fact that the price trades above the 55-,100-, and 200-DMA.

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Silver Technical Analysis for July 27, 2016.

Technical outlook and chart setups:

There is no structural change since yesterday. Silver is seen to be trading at $19.57 levels for now, after having bottomed out around $19.30 levels earlier. Please make note that Silver produced a huge bullish engulfing candlestick pattern right after hitting lows at $19.30 levels, indicating a potential reversal ahead. Since then, the metal has been trading higher but needs to break above $19.75 levels to confirm further upside. Bulls are expected to remain in control for the short term, before the metal carves out a lower top ahead of $21.13 levels. The wave structure also indicates that a flat 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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Technical analysis of EUR/JPY for July 27, 2016

General overview for 27/07/2016:

The wave c of the corrective cycle in the wave b green looks completed now, and a new, upward structure might be currently in progress. To confirm this scenario, the market must break out above the highs at the level of 118.38 in an impulsive fashion. Otherwise the correction in the wave b green might evolve into more complex and time-consuming.

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 27, 2016

General overview for 27/07/2016:

The marginal high has been made at the level of 1.3243, and it has been labeled as the wave Y top. The whole corrective structure labeled as WXY might be now completed. 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

1.3186 - Intraday Resistance

1.3123 - Intraday Support

1.3090 - Weekly Pivot

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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Gold Technical Analysis for July 27, 2016.

Technical outlook and chart setups:

Gold is seen to be trading at $1,318.00/19.00 levels at the moment, after having hit lows at $1,311.500 yesterday. Please note that the metal continues trading/drifting sideways in a tight range between $1,315.00 and $1.323.00 levels respectively. 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 going forward. Please also note that the metal might drop to $1,305.00/07.00 levels, at the backdrop of the Fed event lined up today, before reversing. It is hence recommended to remain long (aggressive trade setup) for now with risk below $1,300.00 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 $1,300.00, targeting $1,350.00.

Good luck!

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NZD/USD Trading Recommendations 27th July 2016

Turn bullish on NZD/USD above fractal support at 0.7015 for a rise to 0.7140 which is the 50% retracement of our entire move and also a fibonacci projection level. Our stop loss remains at 0.6920.

We can see that the RSI is on support, and this helps our bullish view for a bounce above 0.7015.

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Trading Recommendations:

Buy now and above 0.7015

Stop loss at 0.6920

Take profit at 0.7140

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USD/CAD Trading Recommendations for 27th July 2016

USD/CAD has formed a double top reversal, which just got confirmed. This triggers a bearish move down to 1.3140 which is fractal support (fibonacci retracement + horizontal support). Our entry is at the 50% retracement of 1.3200 with our stop loss at 1.3245.

We can see that the RSI has also broken below its ascending support-turned-resistance line signalling a bearish move from here.

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Trading Recommendations:

Sell now and at 1.3200

Stop loss at 1.3245

Take profit at 1.3140

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Technical analysis of EUR/USD for July 27, 2016

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When the European market opens, some economic data will be released such as the German 30-y Bond Auction, Private Loans y/y, M3 Money Supply y/y, GfK German Consumer Climate, and German Import Prices m/m. The US will release economic data too such as Crude Oil Inventories, Pending Home Sales m/m, Durable Goods Orders m/m, and Core Durable Goods Orders m/m. 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.

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Technical analysis of USD/JPY for July 27, 2016

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

TODAY'S TECHNICAL LEVELS:

Resistance. 3: 105.67.

Resistance. 2: 105.45.

Resistance. 1: 105.26.

Support. 1: 105.00

Support. 2: 104..9

Support. 3: 104.58.

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 27, 2016

The index is still looking to find a catalyst that allows a rebound to resume the overall bullish bias, as the 200 SMA on the H1 chart is still offering dynamic support. That's why we would like to see the US Dollar bullish as long as it makes a breakout above the 97.27 level, with a near-term target around the 97.74 level. The MACD indicator is supporting that idea as it's in positive territory.

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H1 chart's resistance levels: 97.27 / 97.74

H1 chart's support levels: 96.92 / 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 27, 2016

The support zone of 1.3076 remains untouched, and the Cable's bears are still struggling to extend the decline below that level. However, the 200 SMA on the H1 chart is still weighing on the pair, and that's why we have been seeing some sideways moves ahead of the Fed's interest rate decision due today in the American session's afternoon. A breakout above the 1.3148 level will expose the 1.32266 price zone.

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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.

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Daily analysis of Gold for July 26, 2016

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Overview

The gold price shows bullish rebound signals now in attempt to move away from the intraday bullish trend line shown on the chart. Stochastic positivity on the four-hour time frame supports our bullish trend expectations today. A breach of the 1,329.00 level will help the price continue with its upside track for the rest of the day. Our first main target is located at 1,375.00, and its breach will extend the bullish wave to 1,400.00 levels. The bullish trend will remain valid and active unless breaking and holding below 1,312.00 and then 1,297.75 levels. The expected trading range for today is between the 1,300.00 support and the 1,340.00 resistance.

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Daily analysis of Silver for July 26, 2016

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Overview

The silver price kept its stability above 19.35 levels after several tests of this level, accompanied by the bullish trend signals provided by stochastic on the four-hour time frame. The price is likely to resume the bullish trend that was stopped temporarily for some bearish correction after hitting the recent top at 21.12. A breach of 20.10 will help the price head towards our main awaited target at 22.00; remember that holding above 19.35 represents the main condition for achieving the suggested targets. The expected trading range for today is between the 19.00 support and the 20.10 resistance.

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