NZD/USD intraday technical levels and trading recommendations for August 4, 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, a 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 (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 advance 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 placed at 0.7250.

Note the Head and Shoulders reversal pattern on the daily chart. Confirmation requires a DAILY candlestick closure below 0.6970 (neckline). Projection targets extend down to 0.6760 and 0.6690 levels.

On the other hand, the price zone between 0.6760 and 0.6700 constitutes a support zone to be watched for a possible BUY entry if the current bearish swing extends below 0.7000.

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Global macro overview for 04/08/2016

Global macro analysis for 04/08/2016:

Ahead of tomorrow's NFP Friday the ADP report published yesterday had revealed that the private sector added 179,000 jobs, slightly up from the previous month's upwardly revised reading of 176,000. Business services contributed 59,000 new jobs in July, whereas financial services firm added 11,000 new jobs in the same month. In conclusion, good figures from US job market might be a first good indicator of a better than expected NFP report tomorrow.

Let's now take a look at the EUR/USD technical picture at the 4H time frame. The price reversed at the level of 61%Fibo, just as indicated earlier in the week and now is heading towards the first important support at the level of 1.1118. The level of 1.2030 is now a lower high, which means the bears are in control over this market now.

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Global macro overview for 04/08/2016

Global macro analysis for 04/08/2016:

The Bank of England has cut the interest rate to the record low level of 0.25% this morning and it was first rate cut since 2009. Moreover, BoE has expanded the stimulus to 170bln pounds funded by newly printed money: 60bln pounds more quantitative easing in form of buying government debts, 10bln pounds for corporate bond purchases and up to 100bln pounds towards new term funding scheme for banks. The majority of MPC says the BoE might cut the rates further lo lower the bound (just above zero). The forecast regarding the UK economy is not optimistic, but so far the UK narrowly avoids recession. The GDP has been slashed to 0.8% in 2017.

Let's now take a look at the GBP/USD technical picture at the daily time frame after the BoE rate cut. The market trades below all of the moving averages and slides towards the next support at the level of 1.3058. Nevertheless, the price still trades inside of the congestion zone and no clear break out has been done yet.

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USD/CAD intraday technical levels and trading recommendations for August 4, 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 will allow further bearish decline to 1.2820 and 1.2700.

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Technical analysis of USD/CAD for August 4, 2016

General overview for 04/08/2016:

The market tested the resistance at the level of 1.3141 and currently it is reversing towards the support at the level of 1.3000. No clear violation of any key level has been made yet and market is still trading sideways.

Support/Resistance:

1.3251 - Wave Y Top

1.3190 - Intraday Resistance

1.3160 - WR1

1.3141 - Intraday Resistance

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.

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Technical analysis of EUR/JPY for August 4 2016

General overview for 04/08/2016:

The count has evolved into an abc-x-abc-x-abc triple three complex corrective cycle and currently the market is trading just at the lower channel line. The current low at the level of 113.01 might be the bottom for wave b green, but confirmation comes with the level of 113.93 break out. Please notice the bullish divergence between the price and momentum oscillator supports the bullish outlook.

Support/Resistance:

118.45 - Technical Resistance

118.15 - WR2

115.85 - WR1

114.86 - Weekly Pivot

113.93 - Intraday Resistance

113.01 - Intraday Resistance

112.50 - 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.

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Intraday technical levels and trading recommendations for GBP/USD for August 4, 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 the current bullish pullback extends above 1.3550.

On the other hand, bearish persistence below the demand level at 1.3550 enhances the bearish scenario towards 1.2700 (the 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 August 4, 2016

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

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

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

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

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

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

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

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

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

Hence, the recent bullish closure above 1.1200 enhanced further bullish advancement towards 1.1400 where evident signs of bearish rejection and a valid SELL entry were previously suggested. That 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, the EUR/USD pair managed to keep trading above the price zone of 1.1000-1.0950 (previous consolidation range). Hence, further bullish advance towards 1.1170 and 1.1220 took place as expected in previous articles.

Price action should have been watched around the price zone of 1.1220-1.1250 for significant bearish rejection and a valid SELL entry. S/L should be placed above 1.1300. T/P levels to be located at 1.1115, 1.1060 and 1.1020.

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EUR/NZD analysis for August 04, 2016

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Recently, EUR/NZD has been moving downwards. The price tested the level of 1.5445 in a ultra volume. According to the 30M time frame, I found testing of support cluster on the ultra high volume, which is a sign that selling looks risky at this stage. Notice the spread (range) of the bar, it is wide spread of the bar, which is another sign that buyers may react to climatic action. Upward target is set at the price of 1.5520 and 1.5570.

Fibonacci Pivot Points:

Resistance levels:

R1: 1.5615

R2: 1.5650

R3: 1.5700

Support levels:

S1: 1.5500

S2: 1.5465

S3: 1.5410

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

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Gold analysis for August 04, 2016

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Since our previous analysis, gold has been trading downwards. The price tested the $1,348.97 level in a high volume. According to the 1H time frame, I have found that Gold refused to break supply trendline and that is the reason for downward reaction. Gold is in an intraday downward trend and buying looks very risky. Watch for selling opportunities on pullbacks. The first take profit level is set at the price of $1,346.70.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,362.40

R2: 1,365.08

R3: 1,369.45

Support levels:

S1: 1,353.70

S2: 1,351.00

S3: 1,346.65

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

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Technical analysis of NZD/USD for August 04, 2016

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Overview:

  • As expected the NZD/USD pair continues to move upwards from the area of 0.7139 . Yesterday, the pair rose from the level of 0.7139 to 0.7191, which coincides with a ratio of 78.6% Fibonacci on the H1 chart. Today, resistance is seen at the levels of 0.7191 and 0.7220. So, we expect the price to set above the strong support levels of 0.7139 and 0.7104; because the price is in a bullish channel now. Equally important, the RSI is still calling for a strong bullish market as well as the current price is seen above the support levels since yesterday. Amid the previous events, the price is still moving between the levels of 0.7139 and 0.7220. In overall, we still prefer the bullish scenario as long as the price is above the level of 0.7139. Furthermore, if the NZD/USD pair is able to break out the first resistance at 0.7139, the market will rise further to 0.7220. Also it should be noted that the double top is set at the point of 0.7256. On the other hand, if the price closes below the strong support levels of 0.7139 - 0.7104, the best location for a stop loss order is seen below 0.7068; because the level of 0.7068 will form a double bottom. Hence, the price will fall into a bearish trend in order to go further towards the double bottom at 0.6951.
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Technical analysis of USD/CHF for August 04, 2016

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Overview:

  • Yesterday, the USD/CHF pair moved from its bottom at 0.9630 and continued to rise to the top of 0.9745. Today, on the one-hour chart, the current rise will remain within a framework of correction. In the H4 time frame, if the pair fails to pass through the level of 0.9786, the market will indicate a bearish opportunity below the strong resistance level of 0.9786 (level of 0.9786 coincides with the 61.8% of Fibonacci), which is expected to act as a major support today. Additionally, the RSI is still signaling that the trend is downward as it is still strong below the moving average (100). Since there is nothing new in this market, it is not bullish yet. Sell deals are recommended below the level of 0.9786 with the first target at 0.9684. If the trend breaks the support level of 0.9684, the pair is likely to move downwards continuing the development of a bearish trend to the level 0.9622 in order to test the daily support 2 (horizontal green line). On the other hand, if a breakout happens at the resistance level of 0.9786, then this scenario may become invalidated. But in overall, we still prefer the bearish scenario today.
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Daily analysis of major pairs for August 4, 2016

EUR/USD: The EUR/USD pair assumed a dip yesterday, which, however, is yet to override the existing bullish bias. Price moved downwards by 80 pips in the context of an uptrend; and would need to go below the support line at 1.1000, before the bias can turn bearish, which requires a huge selling pressure. In case this fails to happen, price would be corrected upwards.

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USD/CHF: The USD/CHF pair assumed a rally yesterday, which, however, is yet to override the existing bearish bias. Price moved upwards by 90 pips in the context of a downtrend. Price would need to go above the resistance level at 0.9850, which requires a huge buying pressure. In case this fails to happen, price would be corrected downwards.

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GBP/USD: Though this currency trading instrument got corrected on August 3, 2016, the bias on the market remains bullish. Further northward movement is possible, provided bears do not force price back below the accumulation territory of 1.3150. Some fundamental figures are expected today and they could have some impact on the market.

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USD/JPY: This is a bear market. The EMA 11 is below the EMA 56 and the RSI period 14 is below the level 50. Price is now below the supply level at 101.50; the next target for bears are located at the demand levels at 100.00, 99.50 and 99.00.

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EUR/JPY: This cross is also in a bearish mode, made conspicuous by the Bearish Confirmation Pattern in the market. Price is now below the supply level at 113.00, going towards the demand zones at 112.50 and 112.00. Since the bias on the market is bearish, further bearish journey is anticipated today or tomorrow.

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Technical analysis of GBP/USD for August 4, 2016

With the BOE rate announcement just hours away, GBP/USD is in a short-term bullish trend and inside a long-term triangle pattern. Soon we will have either a breakout or a rejection.

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Blue lines - bullish short-term channel

GBP/USD is trading inside a bullish short-term channel. Support is at 1,3170 and then at 1.3050. The second one is the most important one. A break below 1.3050 will open the way for 1.25. On the other hand a break above 1.3450 will open the way for 1.36 or even 1.40.

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GBP/USD is trading inside a long-term triangle pattern. Volatility is expected to rise and we will soon have a clear trading signal from the price action. Currently price is closer to resistance and a short is more favorable.The material has been provided by InstaForex Company - www.instaforex.com

AUD/NZD Trading Recommendations for 4th August, 2016

AUD/NZD remains bearish below major resistance.

1.0625 is a major resistance (graphical resistance + Fibonacci resistance + Bollinger band resistance) which we sell from.

Stochastics (21,5,3) is also turning down signalling a bearish move.

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Trading Recommendations:

Sell at 1.0625.

Stop loss raised to 1.0665.

Take profit at 1.0545 and 1.0400.

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EUR/USD Trading Recommendations for 4th August, 2016

EUR/USD has dropped perfectly from our selling area yesterday and is close to our profit target. We look to take profit and go bullish from here because the elements have changed.

1.1125 is a strong Fibonacci retracement level + graphical overlap support + Bollinger Band support. This tells us that we should be closing out our short position and to go long from here.

Stochastics (21,5,3) is also turning up from support level.RSI (21) is also turning up from 33% support.

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Trading Recommendations :

Buy above 1.1125.

Stop loss at 1.1055.

Take profit at 1.1225.

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Technical analysis of USD.CAD for August 4, 2016

The USD/CAD is trapped in a trading range despite giving a breakout signal above the long-term triangle pattern. 1.30 is crucial for the short-term future of this pair. On the other hand, only a break above 1.3150 could bring in some more bulls.

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Blue lines - triangle pattern

The USD/CAD is trading above the daily Kumo. Bulls and bears are giving a big fight at the upper triangle boundary. As long as price is above the lower triangle boundary at 1.30-1.2950, bulls are still hoping for a breakout towards 1.33 to 1.36.

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USDCAD is trying to break above the short-term Kumo resistance after bouncing twice from the 61.8% Fibonacci retracement of the rise from 1.2870. Short-term resistance is at 1.3150. Support at 1.3035. I'm bullish as long as we are above the 1.2950 level.The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of USDX for August 4, 2016

The Dollar index has broken out of the bearish short-term channel. I warned bears that the Dollar was about to reverse higher any time soon and this is what happened. The 95-support level provided a good bounce and bulls now need to see a follow-through in order for the uptrend to pick up pace.

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The Dollar index reversed from the area between the 50% and 61.8% retracement levels and is testing short-term resistance by the kijun-sen indicator at 95.80. The most important short-term resistance is at 97 where the Kumo is found. Support is at 95.

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The weekly candle is holding as expected around the kijun- and tenkan-sen indicators. With NFP coming out tomorrow we could expect some big moves that could ignite the next leg up towards 100. A bad report tomorrow could push the Dollar index towards 94.50 but any move lower than 94 will increase the chances of a bigger correction below 90.

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Technical analysis of Gold for August 4, 2016

Gold price got rejected at the previous high and resistance at $1,375 and is pulling back. The rise from $1,310 looks impulsive, so we will treat this pullback as a corrective one before the next leg up. A break below $1,310 will open the way for a push towards $1,250.

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Red line - short-term support

Gold price has broken below the short-term support trend line and is moving lower. Price remains above the Kumo and has not reached yet the 38% Fibonacci retracement. Most probable target is the 61.8% Fibonacci retracement. A move below the cloud and the 61.8% Fibonacci retracement will increase the chances of a break below $1,310 and a final downward move towards $1,250.

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Red horizontal line - resistance of previous highs

Blue lines - bullish medium-term channel

Gold price is reversing from its highs and a test of the daily kijun- and tenkan-sen (yellow and red line indicators) is very possible. Medium-term support is at $1,280 where we find the Kumo and the lower channel boundary. A break above $1,369 will open the way for $1,425.

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GBP/CHF Technical Analysis for August 04, 2016.

Technical outlook and chart setups:

The GBP/CHF pair has followed through well after printing fresh lows earlier (1.2720 level). The pair has rallied 5 waves from 1.2720 level now and should probably correct lower in 3 waves from here. The pair is seen to be trading at 1.2945/50 levels at this moment, looking to retrace lower towards 1.2820 levels, which is fibonacci 0.618 support of the entire rally from 1.2720 through 1.2980 levels respectively. It is hence recommended to remain long for now, with risk below 1.2650 levels. Immediate support is seen at 1.2700 levels, while resistance is at 1.3100 levels respectively. Bulls are looking poised to remain in control till prices stay above 1.2700 levels.

Trading recommendations:

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

Good luck!

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Elliott wave analysis of EUR/NZD for August 4, 2016

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Wave summary:

EUR/NZD once again failed to break above the resistance line from 1.5839 triggering the buy set-up that has been building. We still think that a break above this resistance line near 1.5594 will be broken soon, but we also have to acknowledge that it keeps the risk of one more corrective leg lower towards 1.5365 alive. If a break below 1.5418 is seen, this corrective target should be expected.

Trading recommendation:

We remain long from 1.5540 with stop placed at 1.5400. If you are not long EUR yet, then buy a break above the resistance-line near 1.5594 and use the same stop at 1.5400 expecting to move it higher soon.

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Elliott wave analysis of EUR/JPY for August 4, 2016

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Wave summary:

The corrective decline from 118.40 continues to push lower, but we are now seeing a clear loss of downside momentum. At the same time, wave [ii] now has corrected 78.6% of wave [i] and the potential downside from here seems very limited. That said, a break above minor resistance at 113.51 will be needed to indicate that the correction in wave [ii] is finally complete, while a break above resistance at 115.31 will be needed to confirm that wave [iii] has taken over for the next impulsive rally above 118.40 for a continuation higher to 122.00 and beyond.

At no point can a break below 110.80 be allowed under this bullish count.

Trading recommendation:

We will buy a break above 113.51 and place stop 5 pips below the most recent low (likely 112.44).

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EUR/JPY Technical Analysis for August 04, 2016.

Technical outlook and chart setups:

The EUR/JPY had dropped to fresh lows at 112.50/60 levels today during early hours of trade, before pulling back higher again. The pair is seen to be trading close to 113.00 levels at this moment, looking to rally and target first resistance at 114.70/80 levels as discussed yesterday. Please note that the pair is still within the range of fibonacci 0.618/0.786 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 below 112.00 levels. Immediate support is seen at 112.00 levels, while resistance is seen through 114.75 levels respectively. Bulls should remain in control till prices stay above 112.00 levels going forward.

Trading recommendations:

Initiate fresh long now, stop below 112.40, a target is open.

Good luck!

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Silver Technical Analysis for August 04, 2016.

Technical outlook and chart setups:

Silver has hit fresh lows at $20.00/05 levels as expected and discussed earlier. The metal is trading at $20.15 level at this moment and looks to be setting up for a retracement/counter trend towards $20.40 level before reversing. If the above wave count holds true and Silver fails to break above $21.13 level, it should drop lower towards at least $19.00 level going forward. The wave structure also indicates that a flat is now complete and minimum expectations are towards $19.00 level. It is recommended to remain short now, with risk above $21.13 level. Immediate interim support is seen at $19.96 level, while resistance is at $21.13 level respectively. Bears should be poised to remain in control till prices stay below $21.13 level.

Trading recommendations:

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

Good luck!

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Gold Technical Analysis for August 04, 2016.

Technical outlook and chart setups:

Gold finally reversed as expected and broke lower below $1,360.00 level, hitting $1,349.00/50.00 levels right now. The metal is now expected to retrace higher towards $1,360.00/63.00 levels again before reversing again. It looks like the metal has carved out a meaningful top at $1,367.00 level and should be setting up for a deeper correction. Besides, note that it has reversed from the fibonacci 0.786 level of the drop between $1,375.00 through $1,310.00 level earlier. The wave structure also indicates that the drop from $1,375.00 through $1,310.00 level is impulse (5 waves), and a 3-wave counter trend rally is also complete. Bears are expected to remain in control from the current levels going forward and only a break above $1,375.00 levels would delay matters. It is hence recommended to remain short for now. Immediate support is seen at $1,347.00 level, while resistance is at $1,375.00 level respectively.

Trading recommendations:

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

Good luck!

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Technical analysis of USD/JPY for August 04, 2016

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USD/JPY is expected to trade with bearish bias. The pair keeps trading below the key resistance at 102.00 (a key support seen in July 29--August 2). It tested, but did not cross below, the first downside target at 100.65 (the low of August 2) yesterday. Currently, the pair is around the 20-period (30-minute chart) moving average, which stands slightly above the 50-period one. Meanwhile, the intraday relative strength index is above 50, showing a lack of downward momentum for the pair. Range trading between 102.00 and 100.65 is, therefore, expected.

On the economic front, the ADP National Employment Report showed that U.S. private employers added 179,000 jobs in July, better than +170,000 jobs expected. Besides, the Markit U.S. Services PMI posted a final reading of 51.4 in July (vs. 50.9 in a preliminary estimate and 51.4 in June), and the Composite PMI was at 51.8 (vs. 51.5 in a preliminary estimate and 51.2 in June).

Amid the U.S. dollar's strengthening and investors' profit-taking, gold retreated 0.4% to $1357 an ounce and silver shed 1.2% to $20.36 an ounce. The benchmark 10-year U.S. Treasury yield edged up to 1.542% from 1.537% Tuesday.

A break below 100.65 would call for a further decline toward the psychological level of 100.00.

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 100.65. A break below this target will move the pair further downwards to 100.00. The pivot point stands at 102.00. 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 102.85 and the second one at 103.95.

Resistance levels: 102.85, 103.95, 104.60

Support levels: 100.65, 100.00, 99.55

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Technical analysis of USD/CHF for August 04, 2016

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USD/CHF is expected to prevail its upside movement. The pair recorded a succession of higher tops and higher bottoms since Aug 2, and is holding on the upside. The rising 20-period and 50-period moving averages are playing support roles and maintain the upside bias. The relative strength index stands firmly above its neutrality level at 50 and lacks downward momentum. he ADP National Employment Report showed that U.S. private employers added 179,000 jobs in July, better than +170,000 jobs expected. Besides, the Markit U.S. Services PMI posted a final reading of 51.4 in July (vs. 50.9 in a preliminary estimate and 51.4 in June), and the Composite PMI was at 51.8 (vs. 51.5 in a preliminary estimate and 51.2 in June).

As long as 0.9670 is support, look for further upside toward 0.9765 and 0.9825 in extension. Below 0.9670, look for further downside with 0.9630 and 0.9590 as targets.

Resistance levels: 0.9765, 0.9825, 0.9875

Support levels: 0.9630, 0.9590, 0.9535

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

Technical analysis of NZD/USD for August 04, 2016

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NZD/USD is under pressure. The pair recorded a succession of lower tops and lower bottoms since Aug 2 and is consolidating on the downside. The declining 20-period and 50-period moving averages maintain the downside bias. The relative strength index is below its neutrality level at 50. As long as 0.7220 holds on the upside, look for further drop toward 0.7135 and even 0.7100 in extension.

The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 0.7125. A break below this target will move the pair further downwards to 0.7075. The pivot point stands at 0.7220. 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 0.7260 and the second one at 0.7295.

Resistance levels: 0.7260, 0.7295, 0.7345

Support levels: 0.7125, 0.7075, 0.7055

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

Technical analysis of GBP/JPY for August 04, 2016

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EUR/JPY is expected to trade with a bearish bias as key resistance is set at 135.60. The pair has been capped by its descending 50-period moving average, and remains on the downside. Meanwhile, the relative strength index stays below 50. European stocks were mixed with the STOXX Europe 600 remaining broadly flat. Germany's DAX gained 0.3%, while both the U.K.'s FTSE and France's CAC were down 0.2%.

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 133.00. The pivot point stands at 135.60. 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 136.30 and the second one at 137.10.

Resistance levels: 136.30, 137.10, 137.95

Support levels: 133.85, 133.00, 132.00

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

Technical analysis of EUR/USD for Aug 04, 2016

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When the European market opens, some economic data will be released such as French 10-y Bond Auction, Retail PMI, and ECB Economic Bulletin. The US will release the economic data too such as Natural Gas Storage, Factory Orders m/m, Unemployment Claims, and Challenger Job Cuts y/y. So amid the reports, EUR/USD will move with low to medium volatility this session.

TODAY'S TECHNICAL LEVELS:

Breakout BUY Level: 1.1200.

Strong Resistance:1.1194.

Original Resistance: 1.1183.

Inner Sell Area: 1.1172.

Target Inner Area: 1.1146.

Inner Buy Area: 1.1120.

Original Support: 1.1109.

Strong Support: 1.1098.

Breakout SELL Level: 1.1092.

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 04, 2016

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In Asia, today Japan will not release any economic data. However, the US will release a series of economic reports such as Natural Gas Storage, Factory Orders m/m, Unemployment Claims, and Challenger Job Cuts y/y. So there is a probability the USD/JPY pair will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Resistance. 3: 101.59.

Resistance. 2: 101.39.

Resistance. 1: 101.19.

Support. 1: 100.95.

Support. 2: 100.75.

Support. 3: 100.55.

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 04, 2016

The index recovered during yesterday's session, as it's approaching the resistance zone of 95.51. Remind that a breakout above it can open the doors to test the 95.93 level, where the 200 SMA is located. However, our view is still bearish and a pullback at this stage is possible and can lead the USDX to reach once again the support level of 95.02.

1470266029_USDXH1.png

H1 chart's resistance levels: 95.51 / 95.93

H1 chart's support levels: 95.02 / 94.73

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 95.02, take profit is at 94.72 and stop loss is at 95.32.

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

Daily analysis of GBP/USD for August 04, 2016

GBP/USD is consolidating below the resistance level of 1.3375, ahead of the BoE's interest rate decision due today, and the markets are expecting a rate cut from the central bank. Currently, from the technical view our scenario remains bullish. A breakout above that resistance should expose the 1.3467 level. MACD indicator, however, is favouring the bearish scenario.

GBPUSDH1.png

H1 chart's resistance levels: 1.3375 / 1.3467

H1 chart's support levels: 1.3266 / 1.3148

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 1.3375, take profit is at 1.3467 and stop loss is at 1.3285.

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

Daily analysis of Gold for August 03, 2016

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Overview

The gold price has continued its calm positive trading and is gradually moving towards the previously recorded top at 1,375.00. The bullish wave slowness is explained by stochastic, which might force the price to show some temporary sideways trading until it manages to get enough positive momentum to push the price to resume the bullish trend. Therefore, we still expect the bullish bias in the upcoming sessions supported by the EMA50. A breach of 1,375.00 levels will extend the gold price gains to 1,400.00 followed by 1,440.00. The positive scenario 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 1,345.00 support and the 1,390.00 resistance.

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

Daily analysis of Silver for August 03, 2016

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Overview

The silver price shows slight bullish bias and approaches gradually from our first awaited target at 21.12. The price is supported by the EMA50, which increases the chances of breaching the mentioned level and opening the way to 22.00 followed by 22.40 levels on the short-term basis. Therefore, the bullish trend will remain valid and active in the upcoming sessions conditioned by the price stability above 19.38 levels. The expected trading range for today is between the 20.15 support and the 21.30 resistance.

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

USD/CAD intraday technical levels and trading recommendations for August 3, 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 will allow further bearish decline to 1.2820 and 1.2700.

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