Technical analysis of USD/JPY for August 01, 2016

USDJPYM30.png

USD/JPY is expected to trade with bearish bias. The pair hit the daily low of 101.94 on Friday before rebounding to levels above 102.00. Currently, the pair is trading around the 20-period (30-minute chart) moving average, which stands below the 50-period one. Meanwhile, the intraday relative strength index remains below the neutrality level of 50, suggesting a lack of upward momentum for the pair. Therefore the intraday outlook continues to be bearish. A break below the immediate support at 102.00 would trigger a further decline to 101.50.

Market Commentary:

On Friday, U.S. stocks again failed to make decisive moves in either direction. The Dow Jones Industrial Average edged down 0.1% to 18,432, while the S&P 500 gained 3 points to 2,173 and the Nasdaq Composite was up 7 points to 5,162. In fact, by the end of July, the DJIA has risen for six straight months in a row; and the S&P 500, for five.

European stocks rebounded with the STOXX Europe 600 rising 0.7%. Germany's DAX gained 0.6%, while the U.K.'s FTSE 100 was up less than 0.1%.

On the economic front, the U.S. Commerce Department reported that GDP grew at an annualized rate of 1.2% quarter on quarter in 2Q, well below the 2.6% advance economists surveyed by The Wall Street Journal had forecast. The soft GDP report dampened expectations that the U.S. Federal Reserve would raise interest rates soon. As a result, U.S. government bonds strengthened, the U.S. dollar tumbled, and prices for precious metals increased.

The benchmark 10-year U.S. Treasury yield fell to 1.458% from 1.511% Thursday. Gold gained 1.1% to $1,350 an ounce and silver was up 0.8% to $20.31 an ounce. Nymex crude oil rebounded 1.1% to $41.60 a barrel.

During Asian trading hours on Friday, the Japanese yen surged to 102.85 against the U.S. dollar (previous close at 105.24) after investors were not satisfied with the Bank of Japan's new monetary easing -- nearly doubling its annual purchase of exchange-traded funds to 6T yen while keeping unchanged its purchase of Japanese government bonds at 80T yen and its deposit rate at -0.1%. The U.S. GDP report then added fuel to the yen's gains pressing USD/JPY down to 101.94. The pair ended the session at 102.05, down 3.0% on day.

At the same time, EUR/USD rose 0.9% to 1.1170 (day-high at 1.1197) regaining its 200-day moving average. GBP/USD was up 0.5% to 1.3226 (daily high at 1.3300). As a result, the ICE U.S. Dollar Index plunged 1.3% to 95.53, the lowest closing level in a month.

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 102.40. A break below this target will move the pair further downwards to 102. The pivot point stands at 103.10. If 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 103.95 and the second one at 104.60.

Resistance levels: 103.95, 104.60, 105.50

Support levels: 102.00, 101.50, 101

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

Technical analysis of USD/CHF for August 01, 2016

USDCHFM30.png

USD/CHF is under pressure. The pair recorded a succession of lower tops and lower bottoms since July 27, which confirms the negative view. The declining 50-period moving average is playing a resistance role and maintains the downside bias. The relative strength index is below its neutrality level at 50 and lacks upward momentum. The U.S. Commerce Department reported that GDP grew at an annualized rate of 1.2% quarter on quarter in Q2, well below the 2.6% advance economists surveyed by The Wall Street Journal had forecast. The soft GDP report dampened expectations that the U.S. Federal Reserve would raise interest rates soon. As a result, U.S. government bonds strengthened, the U.S. dollar tumbled, and prices for precious metals increased.

As long as 0.9765 holds on the upside, look for further drop toward 0.9635. A break below this level would call for further decline toward 0.9590. Only a break above 0.9765 would make the outlook positive with up targets at 0.9825 and 0.9870 in extension.

Resistance levels: 0.9825, 0.9875, 0.9920

Support levels: 0.9635, 0.9590, 0.9535

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

Technical analysis of NZD/USD for August 01, 2016

NZDUSDM30.png

Upside movements are expected to dominate the NZD/USD dynamic. The technical picture of NZD/USD remains positive above a bullish trend line, which emerged on July 27. The pair broke below its 20-period moving average, but is still trading above the 50-period one, which plays a support role and maintains the upside bias. Additionally, a support base has formed around 0.7125, which should limit the downside potential. As long as the 0.7125 support is held, look for further advance towards 0.7230 and 0.7260 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 0.7230 and the second one at 0.7260. In the alternative scenario, short positions are recommended with the first target at 0.7075 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 0.7055. The pivot point is at 0.7125.

Resistance levels: 0.7230, 0.7260, 0.7300

Support levels: 0.7075, 0.7055, 0.7010

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

Technical analysis of GBP/JPY for August 01, 2016

GBPJPYM30.png

Downside movements are expected to dominate the GBP/JPY pair dynamic. The pair has been capped by its descending 50-period moving average and remains under pressure. Meanwhile, the relative strength index lacks strong upward momentum. As long as 137.210 holds as the key resistance, a break below 133.85 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 133.85. A break below this target will move the pair further downwards to 133. The pivot point stands at 137.10. If 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 137.95 and the second one at 138.75.

Resistance levels: 137.95, 138.75, 139.50

Support levels: 133.85, 133, 132

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

Analysis of gold for August 1, 2016

analytics579f44c4be152.png

Since our previous analysis, gold has been trading upwards. As I expected, the price tested the $1,354.82 level in a high volume. According to the 1H time frame, I have found solid support at $1,346.20. There is a weak supply at this support, which is indication that sellers don't have enough power for larger correction. I have placed Fibonacci expansion to find potential end of downward correction and I got Fibonacci expansion at $1,346.15. Watch for buying opportunities. Take profit level is set at $1,354.80.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,357.60

R2: 1,358.30

R3: 1,359.50

Support levels:

S1: 1,355.40

S2: 1,354.80

S3: 1,353.70

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

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

EUR/NZD analysis for August 01, 2016

analytics579f3dcbba5d7.png

Recently, EUR/NZD has been moving sideways at the price of 1.5447. According to the 15M time frame, I found successful test of supply in a low volume at the price of 1.5450 and I found fake breakout of swing low. Be careful when selling and watch for buying opportunities. The price respects the 21SMA, which is a good sign of strength. The intraday trend is upward and the first upward target is set at the price of 1.5650. Point of control from Friday is set at the price of 1.5620.

Fibonacci Pivot Points:

Resistance levels:

R1: 1.5610

R2: 1.5655

R3: 1.5730

Support levels:

S1: 1.5460

S2: 1.5415

S3: 1.5340

Trading recommendations for today: Watch for buying opportunities on the dips.

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

USD/CAD intraday technical levels and trading recommendations for August 1, 2016

analytics579f2b42d42fe.pnganalytics579f2b4c2a60a.png

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

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

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

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

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 will allow further bearish decline to occur towards 1.2820 and 1.2700.

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

Intraday technical levels and trading recommendations for GBP/USD for August 1, 2016

analytics579f298c9e49d.pnganalytics579f2995bc9e9.png

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

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

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

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

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

However, by the end of June, a significant bearish breakdown below 1.3550 was expressed as depicted on the charts.

Note that the price zone of 1.3845-1.4040 now constitutes the recent supply zone to be watched for new SELL entries if any bullish pullback extends above 1.3550.

On the other hand, bearish persistence below the demand level at 1.3550 enhances the bearish scenario.

Bearish decline should be expected towards 1.2700 (nearest bearish projection target) where price action should be watched for a possible short-term BUY entry.

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

Intraday technical levels and trading recommendations for EUR/USD for August 1, 2016

analytics579f28e645286.png

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

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

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

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

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

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

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

analytics579f28f0299af.png

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

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

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

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

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

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

On July 8, recent bullish recovery 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 will be needed to allow bearish 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 bullish advance towards 1.1170 and 1.1220 should be expected.

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

Technical analysis of EUR/USD for August 01, 2016

1470040982_EURUSDH1.png

Overview:

  • The EUR/USD pair broke resistance which turned to strong support at the level of 1.1105 last week. The level of 1.1105 is expected to act as major support this week. The first support level is seen at 1.1160 followed by 1.1105, while daily resistance is seen at 1.1261. Amid the previous events, the pair is still in a uptrend in ths short time, because the EUR/USD pair is trading in a bullish trend from the new support line of 1.1160 towards the first resistance level at 1.1261 in order to test it. The price spot of 1.1261 remains a significant resistance zone. Thus, the trend will probably be rebounded again from the new double top as long as the level of 1.1261 is not breached. In other words, sell orders are recommended below the spot of 1.1261 with the first target at the level of 1.1105 If the pair succeeds to pass through the level of 1.1105, the market will indicate a bearish opportunity below the level of 1.1105. Consequently, the market is likely to show signs of a bearish trend. So, it will be good to sell below the level of 1.1105 with the second target at 1.1015 and further to 1.0949 so as to retest the double bottom in the H1 time frame. However, if a breakout happens at the resistance level of 1.1261, then this scenario may be invalidated.
The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of GBP/USD for August 01, 2016

GBPUSDH1.png

Overview:

  • The GBP/USD pair is showing signs of strength following a breakout of the highest level at 1.3156. On the H1 chart, the level of 1.3156 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. However, major support is seen at 1.3056. Furthermore, the trend is still showing strength above the moving average (100). Thus, the market is indicating a bullish opportunity above the mentioned support levels, for that the bullish outlook remains the same as long as the 100 EMA is headed to the upside. This is confirmed by the RSI indicator signaling that we are still in the bullish trending market. Now, the pair is likely to begin an ascending movement to the point of 1.3175 and further to the level of 1.3218. Therefore, strong support will be found at 1.3156 providing a clear signal to buy with a target seen at 1.3268. If the trend breaks the minor resistance at 1.3268, the pair will move upwards continuing the bullish trend development to the 1.3318 level in order to test the daily resistance 2. Besides, don't forget about setting a stop loss: the best location for it is below the second major support at 1.3056.
The material has been provided by InstaForex Company - www.instaforex.com

Global macro overview for 01/08/2016

Global macro overview for 01/08/2016:

A set of manufacturing PMI's from almost all over the world were released today, so let's take a look at the European PMIs now. The British PMI was quite weak, released at the level of 48.2 vs. 49.1 expected and 49.1 prior. The French PMI was unchanged at the level of 48.6. The best PMI came from Germany, but it wasn't anything spectacular: the number revealed was at the level of 53.8 vs. 53.7 and 53.7 prior. The worst PMI from all eurozone countries came from Italy, and it dropped quite significantly to the level of 51.2 from 53.5 a month ago, vs. 52.5 expected. In conclusion, we can still see the leading role of the German economy in the whole eurozone and the lagging tail of Italian and Spanish economies. So far, the difference hasn't been that big to worry too much about it, but once the German power engine refuses to continue providing the good results, the whole eurozone may face a big trouble.

Now let's take a look at the EUR/USD technical picture on the 4H time frame. The bulls have managed to retrace 50% of the previous swing and the price stalled at 1.1194. Nevertheless, the market is still trading inside of the congestion zone and none of the key levels has been tested or broken yet. Sideways market has been kept valid so far with the next support seen at 1.1118.

analytics579f15577a902.jpg

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

Global macro overview for 01/08/2016

Global macro overview for 01/08/2016:

Two of the Fed members had been actively commenting the recent US economic situation in the mass media during this weekend, so let's see what is their current point of view on this matter. The Dallas Fed President Kaplan said in Bloomberg Tv, that rate hike "is very much on the table" if data supports the economic outlook. Moreover, he mentioned that 2016 GDP would be just under 2%, and Brexit would have a marginal negative impact on US economic growth. Another FOMC member, Mr Dudley, has a little more pessimistic point of view. He believes the Fed should be cautious in raising rates, so the flatter path is more appropriate now. Moreover, the policymaker added that the US economy would grow steadily as it was close to the full employment levels. In conclusion, we have two different points of view regarding the interest rate hike, with Kaplan more hawkish and Dudley more dovish. Both of them are data dependant just as all Fed policy members currently are, so the economic figures release will be the key event that will shape the further Fed stance towards the interest rate change.

Now, let's take a look at the US Dollar index technical picture on the daily time frame. Since the low at the level of 91.92 has been reached, the market is still trying to make the sequence of higher highs and higher lows, so the longer term trend can change to bullish. Currently, the key level for bulls is at 92.03, and any violation of this level will invalidate this scenario. The next support is seen at 95.32 and the next resistance lies at 96.31.

analytics579f113981b1a.jpg

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

Technical analysis of EUR/JPY for August 1, 2016

General overview for 01/08/2016:

The bottom for the wave c green seem to be in place, but this corrective counter-trend wave progression might evolve into more complex and time consuming pattern. If there is no clear break out above the level of 117.12, then this scenario is very likely.

Support/Resistance:

118.45 - Technical Resistance

118.15 - WR2

117.12 - Intraday Resistance

115.85 - WR1

114.86 - Weekly Pivot

113.91 - Intraday Support

112.62 - WS1

111.61 - WS1

Trading recommendations:

Traders should refrain from trading as there is no clear trading setup yet. The corrective cycle might still be unfolding as any of the key levels hasn't been violated yet.

analytics579f0cf753dc9.jpg

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

Technical analysis of USD/CAD for August 1, 2016

General overview for 01/08/2016:

As anticipated last week, an impulsive wave progression to the downside is currently unfolding after the top for the wave Y brown had been established at the level 1.3251. Currently, the market is trading in counter-trend corrective cycle that is looking like a wave iv of the cycle, so one more wave to the downside is needed to complete the structure.

Support/Resistance:

1.3251 - Wave Y Top

1.3160 - WR1

1.3081 - Weekly Pivot

1.3073 - Intraday Resistance

1.3000 - Intraday Support

1.2910 - WS1

Trading recommendations:

All sell orders from the last week should now place the SL just above the level of 1.3071 and adjust it accordingly to the price move.

analytics579f0b284f756.jpg

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

Elliott wave analysis of EUR/NZD for August 1, 2016

analytics579ef90f09361.png

Wave summary:

The correction in wave ii took a long way and declined to 1.5411 (just above the 61.8% corrective target at 1.5365). The decline to 1.5411 could be enough, but then a break above minor resistance at 1.5538 and more importantly above 1.5640 will be needed to confirm the corrective low is in place for the next impulsive rally higher towards 1.6652.

That said, we should allow for a little more downside pressure closer to the ideal corrective target at 1.5365 as long as minor resistance at 1.5538 holds firm.

Trading recommendation:

Our stop at 1.5570 was hit. We are looking for a new buying opportunity at 1.5370 or upon a break above 1.5538 with stop placed at 1.5325.

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

Elliott wave analysis of EUR/JPY for August 1, 2016

analytics579ef69b2b3ec.png

Wave summary:

We have seen the expected decline closer to the 61.8% corrective target at 113.70 (the low has been seen at 113.85), so a little more downside closer to the ideal 113.70 target can not be excluded before the next impulsive rally.

In the short term, a break above minor resistance at 115.32 will be the first strong indication that wave [ii] is complete and wave [iii] higher towards at least 122.00, and breaking above it will confirm continuation higher to 126.01. A break above resistance at 116.92 will confirm the rally towards 122.00.

Trading recommendation:

We bought EUR at 113.85 and has placed our stop at 113.20. If you are not long EUR yet, then buy at 113.70 or upon a break above 116.92 and use the same stop at 113.20

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

Technical analysis of USDX for August 1, 2016

The Dollar index continued towards our targets we gave last week as the downward reversal we saw last week was expected to be deep after the false breakout. The trend remains bearish but with increased chances of reversal this week.

analytics579ef332160b2.jpg

The pullback has reached the 50% retracement at 95.30. A break below that level will open the way for a push towards the 61.8% Fibonacci retracement at 94.77. I believe a short-term bounce will be seen today and followed by a new low to complete the correction.

analytics579ef384e78ce.jpg

As expected from last week, price has reached the weekly kijun- and tenkan-sen support levels. The rejection at the upper cloud boundary gave us that signal and the confirmation came once price broke below the cloud. The Dollar index might be making a higher low relative to the June low and is expected to be followed by a new high and uptrend.The material has been provided by InstaForex Company - www.instaforex.com

Wave analysis of Gold for August 1, 2016

Gold price pushed above $1,350 on Friday after the weak GDP numbers announced for the US economy. With Dollar weakening, Gold price spiked above short-term resistance and reached $1,356. Despite being technically bullish, Gold price has completed a 3-wave upward correction that reached the 61.8% Fibonacci retracement of the entire decline.

analytics579ef23d4cc94.jpg

Red line -trend line support

According to my wave analysis, Gold price has completed wave C up on Friday's high and a 5-wave sequence from wave B low. Price is now expected to reverse aggressively to the downside. The uptrend stopped at the 61.8% Fibonacci retracement.

analytics579ef2866d2e6.jpg

Blue lines -bullish weekly channel

The weekly chart remains fully bullish as price remains inside the blue channel and above both the tenkan- and kijun-sen indicators. Weekly support is between $1,300 and $1,270 and I believe we are going to test it.

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

Silver Technical Analysis for August 01, 2016.

Technical outlook and chart setups:

Silver is seen to be trading at $20.55 levels for now, after having made highs at $20.65 levels earlier as expected. Please make note that Silver is soon approaching resistance at $20.80/90 levels and it is quite possible that the metal rallies through those levels before finally reversing lower. There might be one last leg rally left before reversing sharply lower for the remaining of August series. If Silver fails to break above $21.13 levels, it should drop lower towards $18.00 levels going forward. The wave structure also indicates that a flat is underway and the metal is expected to turn lower from around $20.80 levels. It is recommended to turn short now, with risk above $21.13 levels. Immediate interim support is seen at $19.20 levels, while resistance is at $21.13 levels respectively.

Trading recommendations:

Remain short from $20.50 levels, stop above $21.13, target is lower.

Good luck!

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

Gold Technical Analysis forAugust 01, 2016.

Technical outlook and chart setups:

Gold had completed rally through $1,350.00/55.00 levels as expected and discussed on Friday .The yellow metal had made highs at $1,356.00 levels before pulling back lower again. Please note that the metal is trading around $1,349.00/50.00 levels at this moment, looking to drop lower from here. It is still possible that Gold prints yet another high around $1,360.00 levels before resuming lower again. Please note that the metal is testing fibonacci 0.618 resistance of the drop between $1,375.00 and $1,310.00 levels respectively. The wave structure also indicates that the drop from $1,375.00 through $1,310.00 levels is impulse (5 waves) and a 3 wave counter trend rally has also followed through. Bears are expected to remain in control from current levels going forward. It is hence recommended to exit long for now and turn short. Immediate support is seen at $1,333.00 levels, while resistance is at $1,360.00 levels respectively.

Trading recommendations:

Remain short now, stop above $1,375.00, target is open.

Good luck!

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

USD/JPY Trading Recommendations for 1st August 2016

We are bullish on USDJPY. Price has bounced off our channel support really well. 101.80 is a key Fibonacci retracement level which is in line with our channel support. 104.00 is our take profit level because it's the 50% Fibonacci retracement and graphical pullback resistance.

RSI displays bullish divergence vs price signalling a bullish recovery.

Stochastics is bouncing above our 5% support signalling a bullish recovery in price.

analytics579eb0ccdd7c7.png

Trading Recommendations :

Buy now and above 101.80

Take profit at 104.00

Stop loss at 100.55

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

EUR/USD Trading Recommendations for 8th August 2016

1.1235 is the golden ratio Fibonacci retracement from the high of 24th June, 2016. It is also a 1.0 Fibonacci projection as seen by the brown arrows. This is a key resistance level for us to sell off.

1.1075 is our first profit target because it is a graphical support + 50% Fibonacci retracement level.

RSI has reacted off the 76% resistance level triggering a bearish move.

Stochastics has reacted off our 82% to 92% resistance level triggering a bearish move.

analytics579eb0722f612.png

Trading Recommendations :

Sell now and once more at 1.1235

Stop loss at 1.1305

Take profit at 1.1075

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

Technical analysis of EUR/USD for Aug 01, 2016

!!!_EURUSD.jpg

When the European market opens, some Economic Data will be released such as Final Manufacturing PMI, German Final Manufacturing PMI, French Final Manufacturing PMI, Italian Manufacturing PMI, Spanish Manufacturing PMI.The US will release the economic data too such as Loan Officer Survey, ISM Manufacturing Prices, Construction Spending m/m, ISM Manufacturing PMI, Final Manufacturing PMI, so amid the reports, EUR/USD will move low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Breakout BUY Level: 1.1219.

Strong Resistance:1.1213.

Original Resistance: 1.1202.

Inner Sell Area: 1.1191.

Target Inner Area: 1.1165.

Inner Buy Area: 1.1139.

Original Support: 1.1128.

Strong Support: 1.1117.

Breakout SELL Level: 1.1111.

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 Aug 01, 2016

!!!__USDJPY.jpg

In Asia, Japan will release the Final Manufacturing PMI and the US will publish some Economic Data such as Loan Officer Survey, ISM Manufacturing Prices, Construction Spending m/m, ISM Manufacturing PMI, Final Manufacturing PMI.So there is a probability the USD/JPY will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Resistance. 3: 102.86.

Resistance. 2: 102.66.

Resistance. 1: 102.46.

Support. 1: 102.21.

Support. 2: 102.00.

Support. 3: 101.80.

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 August 1, 2016

EUR/USD: This pair trended upward strongly last week, making that week see greater volatility on major pairs; unlike what happened between July 18 to 21. Price has gone upwards by 230 pips, closing above the support line at 1.1150. There is a Bullish Confirmation Pattern in the market and price is supposed to continue moving upwards, unless USD experiences a considerable amount of strength.

1.png

USD/CHF: The USD/CHF went upwards at the beginning of last week, and almost reached the resistance level at 0.9950. From that point, price declined 300 pips, to close at 0.9635 on Friday and below the resistance level at 0.9700. Price is expected to reach the support levels at 0.9650, 0.9600 and 0.9550 this week. The only threat to this expectation is a possible stamina in USD.

2.png

GBP/USD: This currency trading instrument simply moved sideways last week – in an equilibrium movement which started two weeks ago. The equilibrium phase would end this week or next, providing that price goes upwards or downwards 500 pips. This month, GBP might plummet versus JPY and USD, while going upwards versus AUD and NZD.

3.png

USD/JPY: As it was prognosticated at the beginning of last week, the USD/JPY plummeted by almost 450 pips. Selling pressure is also visible on other JPY pairs. USD/JPY is supposed to continue going downwards this week, reaching the demand levels at 101.50, 101.00 and 100.50 this week or next. The outlook on JPY pairs is also bearish for the month of August 2016.

4.png

EUR/JPY: In this market, bears are the overall winners last week. Price plummeted by 250 pips on Friday, leading to a vivid bearish signal in the market. Further southwards movement is possible: Price could reach the demand zones at 113.50, 113.00 and 112.50 this week or next.

5.png

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

Daily analysis of USDX for August 01, 2016

At H1 chart, USDX is still weak and it's doing a bearish consolidation below the 200 SMA. Currently, the Index is being supported by the 95.51 level, where a rebound can happen to reduce the oversold levels that are showing the oscillators, especially the MACD indicator. If USDX does a breakout below that support, then it can decline towards the 95.02 level.

USDXH1.png

H1 chart's resistance levels: 95.93 / 96.36

H1 chart's support levels: 95.51 / 95.02

Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the USD Index breaks with a bearish candlestick; the support level is at 95.51, take profit is at 95.02 and stop loss is at 96.01.

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

Daily analysis of GBP/USD for August 01, 2016

The resistance zone of 1.3266 is still there and trying to push lower the pair to re-test the 200 SMA at H1 chart. However, we're still favouring the bullish bias on a short-term basis, because of the US dollar's weakness and eventually, GBP/USD can do a breakout above the 1.3266 level in order to test the 1.3375 level.

GBPUSDH1.png

H1 chart's resistance levels: 1.3266 / 1.3375

H1 chart's support levels: 1.3148 / 1.3076

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 1.3266, take profit is at 1.3375 and stop loss is at 1.3155.

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