EUR/NZD analysis for August 02, 2016

analytics57a0a6ad2bea5.png

Recently, EUR/NZD has been moving sideways at the price of 1.5470. According to the 1H time frame, I found strong support cluster at the price of 1.5445. I also found selling climax at the support (wide spread bar with ultra high volume), which is a sign that selling looks very risky at this stage. My advice is to watch for potential buying opportunities. Only if the price breaks the level of 1.5445, we may see downward continuation.

Fibonacci Pivot Points:

Resistance levels:

R1: 1.5575

R2: 1.5610

R3: 1.5655

Support levels:

S1: 1.5480

S2: 1.5450

S3: 1.5400

Trading recommendations for today: Watch for buying opportunities due to a strong support cluster and selling climax.

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

Gold analysis for August 02, 2016

analytics57a09e0418418.png

Since our previous analysis, gold has been trading upwards. As I expected, the price tested the $1,363.90 level in a high volume. According to the 1H time frame, I have found that price broke consolidation trading range and did successful test of support after the breakout, which is a sign that Gold may continue higher. 21 SMA is supporting the price very well and my advice is to watch for buying opportunities on the dips. The first take profit level is set at the price of $1,374.50.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,353.20

R2: 1,355.30

R3: 1,358.00

Support levels:

S1: 1,347.00

S2: 1,345.20

S3: 1,342.50

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

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

USD/CAD intraday technical levels and trading recommendations for August 2, 2016

analytics57a082e4ca06c.pnganalytics57a082f0406da.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

GBP/CHF Technical Analysis for August 02, 2016.

Technical outlook and chart setups:

The GBPCHF pair has dropped to fresh lows at 1.2720/30 levels today. The pair has bounced back higher again and is seen to be trading at 1.2790 level at this moment. Please note that the pair has finally found support at fibonacci 0.618 retracement of the rally between 1.2500 through 1.3200 level earlier. Furthermore, also note that the pair is producing a bullish morning star candlestick pattern on 4H time frame, indicating a potential reversal from here. It is hence recommended to remain long for now, with risk below 1.2650 level. Immediate support is seen at 1.2700 level, while resistance is at 1.2860 level respectively. Books are looking to be poised to remain in control going forward.

Trading recommendations:

Remain long for now, stop at 1.2650, and a target is open.

Good luck!

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

Intraday technical levels and trading recommendations for GBP/USD for August 2, 2016

analytics57a07d1b85117.png

analytics57a07d2ea042d.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 2, 2016

analytics57a07c67b1859.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).

analytics57a07c7233a9b.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.

Price action should be watched around the price zone of 1.1220-1.1250 for significant bearish rejection and a valid SELL entry.

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

EUR/JPY Technical Analysis for August 02, 2016.

Technical outlook and chart setups:

The EUR/JPY cross has re-tested the lows today at 113.50/60 levels, before pulling back higher again. The pair is seen to be trading at 113.90 level at this moment, looking to rally and target first resistance at 114.70/80 levels. Please note that the pair has bounced off from fibonacci 0.618 support of the entire rally between 110.80/90 through 118.40/50 levels as depicted here. Furthermore the pair seems to have completed the drop from 118.40/50 levels in 3 waves which is corrective till now. It is hence recommended to remain long now, with risk at 113.00 level. Immediate support is seen at 113.30/40 levels, while resistance is seen through 114.75 level. Bulls should remain in control till prices stay above 113.30/40 levels broadly.

Trading recommendations:

Initiate fresh long now, stop below 113.40, a target is open.

Good luck!

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

Silver Technical Analysis for August 02, 2016.

Technical outlook and chart setups:

Silver has finally inched higher today as expected and hit fresh intraday highs at $20.80 level. The metal is trading a bit lower at $20.65 level at this moment and looks to have completed its counter trend rally that began from sub $19.00 level earlier. If the above wave count holds true and Silver fails to break above $21.13 level, it should drop lower towards $18.00 level going forward. The wave structure also indicates that a flat is now complete and the metal is expected to turn lower from current price action. It is recommended to remain short now, with risk above $21.13 levels. Immediate interim support is seen at $19.20 level, while resistance is at $21.13 level respectively.

Trading recommendations:

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

Good luck!

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

Gold Technical Analysis for August 02, 2016.

Technical outlook and chart setups:

Gold has hit yet another intraday high at $1,360.00/61.00 levels today and it should be looking to pullback/reverse from here on. Please note that the metal is trading around $1,359.00/50.00 levels at this moment, having carved out a lower high at $1,360.00. Please note that the metal has now tested the fibonacci 0.786 levels of the drop between $1,375.00 through $1,310.00 levels earlier. 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 now completed. 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 $1,363.00 levels respectively.

Trading recommendations:

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

Good luck!

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

Technical analysis of NZD/USD for August 02, 2016

NZDUSDH4.png

Overview:

  • The NZD/USD pair continues to rise from the level of 0.7138 in the long term. It should be noted that the support is established at the level of 0.7138 which represents the 50% Fibonacci retracement level on the H4 chart. The price is likely to form a major support in the same time frame. Accordingly, the NZD/USD pair is showing signs of strength following a breakout of the highest level of 0.7138. Since the trend is above the 50% Fibonacci level, the market is still in an uptrend. Overall, we still prefer the bullish scenario. So, buy above the level of 0.7138 with the first target at 0.7242 in order to test the daily resistance 1 and further to 0.7324. Also, it might be noted that the level of 0.7324 is a good place to take profit because it will form a double top. On the other hand, in case a reversal takes place and the NZD/USD pair breaks through the support level of 0.7138, a further decline to 0.7039 can occur which would indicate a bearish market.
The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of USD/CHF for August 02, 2016

1470127249_USDCHFH4.png

Overview:

  • Yesterday, the USD/CHF pair dropped from the level of 0.9734 (this level of 0.9734 coincides with the ratio of 50% Fibonacci Expansion) to the bottom around 0.9635. Also, it should be noted that the USD/CHF pair continues to move downwards from the level of 0.9734 on the H4 chart. Therefore, the first resistance level is seen at 0.9734 followed by 0.9786, while daily support 1 is seen at 0.9622 today. According to the previous events, the USD/CHF pair is still moving between the levels of 0.9734 and 0.9622. If the USD/CHF pair fails to break through the resistance level of 0.9734, the market will decline further to 0.9622. This would suggest a bearish market because the RSI indicator is still in a positive area and does not show any trend-reversal signs. The pair is expected to drop lower towards at least 0.9572 in order to test the daily pivot point. On the other hand, it would also be wise to consider where to place a stop loss; this should be set below the second resistance of 0.9786.
The material has been provided by InstaForex Company - www.instaforex.com

Daily analysis of major pairs for August 2, 2016

EUR/USD: This pair moved sideways yesterday, and may trend strongly today or tomorrow. The bias is bullish, and therefore, it is expected that price might go further upwards today, reaching for the resistance lines at 1.1200 and 1.1250. The only threat to this assumption is a possible stamina in USD, which may happen any time.

1.png

USD/CHF: The USD/CHF pair still shows willingness to go further south, while the major bias remains bearish. In the market, transient rallies might be viewed as opportunities to go short at slightly higher prices. Unless USD gains strength, bears would push price south, reaching the support levels at 0.9650 and 0.9600.

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: The USD/JPY pair went flat on Monday. There is a Bearish Confirmation Pattern in the market, and further bearish movement is possible, especially in the face of a bearish expectation on JPY pairs. There are interesting demand levels at 101.50 and 100.50, which could be tested this week.

4.png

EUR/JPY: This is also a bear market in the short term – which should trend further downward this week in spite of bullish effort that may be witnessed along the way. 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

Technical analysis of USDX for August 2, 2016

The Dollar index bounced yesterday as we expected but remains in a bearish short-term trend with many chances of making a new lower low towards 95 in order to complete the corrective pull back from 97.30.

analytics57a046303f053.jpg

Blue lines - bearish channel

The Dollar index is trading between the 38% and the 50% retracement levels inside the bearish channel. Price bounced yesterday and I expect a new lower low towards the 61.8% Fibonacci retracement to be seen over the coming sessions.

analytics57a0468330e2c.jpg

Resistance is at 95.90-96 and only a daily close above this area could signal a bullish reversal in the short-term trend. In the weekly chart price is testing the kijun- and tenkan-sen support at 95.30. I believe a move towards 95 will complete the pull back and the up trend will resume. Important low at 93 should not break for bulls to keep their hopes alive.The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of Gold for August 2, 2016

Gold price is consolidating near its recent highs around $1,350. Short-term support is held and the trend is bullish as long as price is above $1,345. A new high is not ruled out as long as price is holding above $1,345-50. However I believe it is more probable to see a bearish reversal.

analytics57a044408a93e.jpg

Blue line -resistance

Red line - support

Gold price is trading above the Kumo (cloud) and above the red trend line support. Short-term resistance is at $1,355 and if broken we should expect the $1,375 high to be challenged. On the other hand if price breaks below short-term support at $1,345 my bearish scenario will be valid.

analytics57a044bca4a42.jpg

Blue lines - bullish channel

The daily chart shows price remains above the Kumo (cloud) and above both the tenkan- and kijun-sen indicators. Daily support is at $1,330 and a daily close below it will open the way for a test of the cloud at $1,300 and the bullish channel.

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

Elliott wave analysis of EUR/NZD for August 2 - 2016

analytics57a0375f8da8e.png

Wave summary:

With the clear break above 1.5538 we have seen the first strong indication that the corrective decline in wave ii completed at 1.5411 and wave iii higher towards 1.6652 is developing. To confirm that wave iii indeed is well underway, we still need to see a break of the resistance at 1.5660 to trigger the buy setup, but we expect it will only be a matter of time before this resistance is taken out and wave iii can accelerate higher.

Trading recommendation:

We are long EUR from 1.5540 with stop placed at 1.5400. If you are not long EUR yet, then buy at 1.5465 or upon a break above 1.5660 and use the same stop at 1.5400.

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

Elliott wave analysis of EUR/JPY for August 2 - 2016

analytics57a0344533ba6.png

Wave summary:

Our preferred count shows that the corrective low of wave [ii] was seen at 113.85 and a new strong impulsive rally higher towards 126.00 is about to take off. Short term a break above minor resistance at 115.31 will be the first strong indication that wave [ii] is complete and wave [iii] is developing, while a break above 116.92 will confirm the rally higher towards 126.00 in wave [iii].

As long as minor resistance at 115.31 is able to protect the upside, we need to allow for a move slightly lower in wave [ii], but do not expect more that 113.70.

Trading recommendation:

We are long EUR from 113.85 with stop placed at 113.20. If you are not long EUR yet, then buy near 113.70 or upon a break above 115.31 and use the same stop at 113.20

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

USD/CHF Trading Recommendations for 2nd August 2016

0.9625 is a major Fibonacci golden ratio retracement support. We can also see a bullish candlestick reversal right above this level meaning there are a lot of buyers on this level. Our take profit is at 0.9795 which is a horizontal support level + 50% Fibonacci retracement level.

Stochastics has bounced above our support zone of 6% to 14% showing signs of a bullish reversal from here.

analytics57a0326f5a1b6.png

Trading Recommendations :

Buy now and once more if price drops to 0.9625.

Take profit at 0.9795.

Stop loss at 0.9570.

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

USD/CAD Trading Recommendations for 2nd August 2016

Price has made a push up and reached our take profit target perfectly from yesterday. We turn bearish now because 1.3130 is a key Fibonacci retracement level + graphical resistance level + Bollinger band resistance. Our 1st take profit is the golden ratio Fibonacci retracement + graphical support and our 2nd take profit is the latest swing low and a very important Fibonacci projection level.

Stochastics is also reacting off our 93% resistance.

analytics57a0321ebeae2.png

Trading Recommendations :

Sell now below 1.3130.

Stop loss at 1.3175.

1st take profit at 1.3070.

2nd take profit at 1.3025.

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

Technical analysis of USD/JPY for August 02, 2016

USDJPYM30.png

USD/JPY is expected to trade with bearish bias .The pair remains under pressure below its nearest resistance at 103.10. Even though a continuation of the consolidation cannot be ruled out at the current stage, its extent should be limited. Furthermore, the relative strength index lacks upward momentum. To conclude, a new pullback is more likely to occur to 102.00 and 101.50 in extension, as long as 103.10 holds on the upside.

Market Commentary:

On Monday U.S. stock indexes were modestly lower as slumping oil prices weighed down energy shares. Technology and bio-tech shares posted gains. The Dow Jones Industrial Average slid 27 points to 18404 and the S&P 500 edged down 2 points to 2170, while the Nasdaq Composite advanced 22 points or 0.4% to 5184.

European stocks lacked upward momentum with the STOXX Europe 600 falling 0.6%. Germany's DAX edged down less than 0.1%, the U.K.'s FTSE 100 dropped 0.5%, while France' CAC was down 0.7%.

Nymex crude oil plunged 3.7% to $40.06 a barrel having dipped below $40 for the first time in three months after Saudi Arabia announced a price cut. Gold added 0.2% to $1352 an ounce and silver was up 0.4% to $20.40 an ounce. Meanwhile, the benchmark 10-year U.S. Treasury yield rose to 1.499% from 1.458% on Friday.

On the forex front, the U.S. dollar stabilized after Friday's plunge with the ICE U.S. Dollar Index rebounding 0.2% to 95.71. USD/JPY rose 0.3% to 102.38. GBP/USD retreated 0.4% to 1.3173. EUR/USD dipped 0.1% to 1.1159.

Commodities-linked currencies weakened along with oil and commodities prices. The Canadian dollar fell against the greenback lifting USD/CAD by 0.7% to 1.3121, back above the pair's 200-day moving average. NZD/USD declined 0.4% to 0.7170. At the same time, AUD/USD shed 0.8% to settle at 0.7534.

Expect volatility in the trading of Australian dollar later today when the Reserve Bank of Australia will set interest rates. It is widely expected that the central bank would lower its cash rate target to 1.50% from the current 1.75%.

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 02, 2016

USDCHFM30.png

USD/CHF is expected to trade on the upside as the bias remains bearish. The pair is consolidating on the downside below its key resistance at 0.9765, which should limit the upside potential. The 20-period and 50-period moving averages are flat.On the forex front, the U.S. dollar stabilized after Friday's plunge with the ICE. U.S. Dollar Index rebounding 0.2% to 95.71. Even though some technical rebound cannot be ruled out, its extent should be limited.

As long as 0.9765 holds on the upside, the pair is likely to return to its previous low at 0.9635. A break below this level would call for a further decline toward 0.9590.

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 02, 2016

NZDUSDM30.png

NZD/USD is expected to trade in a higher range as the bias remains bullish. The pair is consolidating and broke below its 20-period and 50-period moving averages. The relative strength index is below its neutrality level at 50. Nevertheless, a support base has formed around 0.7125, which should limit the downside potential. Additionally, the pair is supported by a rising trend line, which emerged on July 27. As long as this ascending trend line and the key support at 0.7125 is not broken, look for a technical rebound towards 0.7230 and even 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

Global macro overview for 02/08/2016

Global macro analysis for 02/08/2016:

Another post-Brexit important economic indicator will be released later on today in the United Kingdom and this time, it is a Construction PMI. Yesterday's data from the UK regarding Manufacturing PMI has turned out to be worse than expected and worse than a month ago. Today's Construction PMI is being expected to be worse than a month ago as well (46.0 prior; 44.2 expected). If the number will be in level with expectations or worse than expectations, this might mean, the UK economy is slowing down more than expected after the Brexit as any reading below fifty points signals a contraction in the economy. In conclusion, this is quite important data for the UK which will clarify whether last month reading of 46 was a one-off coincidence or a decreasing six-month long trend will continue.

Let's now take a look at the GBP/USD technical picture at the 4H time frame.The market trades inside of the congestion zone between the levels of 1.3316 and 1.3058. So both sides of the market, bulls and bears, are struggling to get more control over this market, but on the higher time frames the bears are clearly winning. Moreover, there is a high possibility that the market is waiting for fundamental news to trigger another downside break out.

analytics57a02dffbb974.jpg

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

Technical analysis of GBP/JPY for August 02, 2016

GBPJPYM30.png

GBP/JPY is under pressure. The pair is consolidating on the downside below its key resistance at 136.30, which should limit the upside potential. The relative strength index is below its neutrality level at 50 and lacks upward momentum. As long as 115.30 is resistance, the pair is likely to decline to 134.50. A break below this level would call for further drop toward 133.85.

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 134.50. A break below this target will move the pair further downwards to 133.85. The pivot point stands at 136.30. 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 137.10 and the second one at 137.95.

Resistance levels: 137.10, 137.95, 138.75

Support levels: 134.50, 133.85, 133

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

Technical analysis of EUR/JPY for August 2, 2016

General overview for 02/08/2016:

The market is trading in a horizontal range between the weekly pivot at the level of 114.86 and intraday support at the level of 113.91.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.

analytics57a029f51d575.jpg

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

Technical analysis of USD/CAD for August 2, 2016

General overview for 02/08/2016:

The three wave decline towards the level of 1.3000 had been labeled as wave a green, which means more sideways price action in wave b is being expected.Currently, the market tests the dashed blue trend line from above and if the temporary top for the wave b is in place, then the price should head lower towards the intraday support at the level of 1.03075.

Support/Resistance:

1.3251 - Wave Y Top

1.3190 - Intraday Resistnace

1.3160 - WR1

1.3081 - Weekly Pivot

1.3075 - Intraday Support

1.3000 - Intraday Support

1.2910 - WS1

Trading recommendations:

All sell orders from last week had been closed with profit. Currently the traders should refrain from trading and wait for a better trading setup to occur shortly. Sideways market is being expected for some time.

analytics57a0292d2d507.jpg

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

Global macro overview for 02/08/2016

Global macro overview for 02/07/2016:

The Reserve Bank of Australia had decided to cut the interest rate by 25pb to the level of 1.5%, just as expected. In the monetary policy statement, the RBA said, that the prospects for CPI returning to the targets will be improved by cut and it will not likely to worsen housing market risks. Nevertheless, the job market indicators are still mixed and global economy growing at a pace below average, especially Chinese pace of growth appears to be moderate. In conclusion, the RBA behaved as anticipated by cutting the rates and trying to stimulate the slowing economy once again.

Let's now take a look at the AUD/USD technical picture at the daily time frame. After the false break out above the resistance at the level of 0.7647, the market returned to the congestion zone, but still traded above the 55 DMA. Currently, the bearish engulfing pattern suggests more downside risk for this market. The next support is seen at the level of 0.7419.

analytics57a026e26a586.jpg

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

Technical analysis of EUR/USD for Aug 02, 2016

!!!_EURUSD.jpg

When the European market opens, some Economic Data will be released such as PPI m/, Spanish Unemployment Change.The US will release the economic data too such as Total Vehicle Sales, Personal Income m/m, Personal Spending m/m, Core PCE Price Index m/m, 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 02, 2016

!!!__USDJPY.jpg

In Asia, Japan will release the Consumer Confidence, 10-y Bond Auction, Monetary Base y/y and the US will release some Economic Data such as Total Vehicle Sales, Personal Income m/m, Personal Spending m/m, Core PCE Price Index m/m.So there is a probability the USD/JPY will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Resistance. 3: 103.33.

Resistance. 2: 102.83.

Resistance. 1: 102.63.

Support. 1: 102.39.

Support. 2: 102.18.

Support. 3: 101.98.

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 August 02, 2016

USDX is doing a rebound above the support level of 95.51 and it could test the resistance zone of 95.93 in coming hours. The overall structure is still bearish, as the index is trading below the 200 SMA at H1 chart and next bearish target after a lower breakout could be the 95.02 level. However, if the index breaks the 95.93 level, then it can rally towards the 96.36 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 02, 2016

The pair moved into a bearish bias during Monday and now it's finding dynamic support around the 200 SMA price zone. A rebound can drive it to the resistance level of 1.3266, where also a breakout can happen to reach the 1.3375 level. It seems that the Cable is poised to be trapped into a range before the BoE event this week.

1470086551_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