EUR/NZD analysis for August 05, 2016

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Recently, EUR/NZD has been moving sideways at the price of 1.5475. According to the 15M time frame, I found fake breakout of upward trend line and a selling climax. Be careful when selling EUR/NZD at this stage since we may expect upward price. The first upward target is set at the price of 1.5530.

Fibonacci Pivot Points:

Resistance levels:

R1: 1.5570

R2: 1.5600

R3: 1.5600

Support levels:

S1: 1.5460

S2: 1.5425

S3: 1.5370

Trading recommendations for today: Watch for buying opportunities due to a selling climax and a fake breakout of the upward trendline.

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Gold analysis for August 05, 2016

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Since our previous analysis, gold has been trading downwards. The price tested the $1,343.53 level in an ultra high volume. According to the 15M time frame, I found selling climax and ultra wide spread of the bar, which is a sign that selling looks extremely risky at this stage. I found potential end of ABC corrective phase, where is the C leg equal to A leg. The bar on the 15M time frame closed well of the low, which suggesting that buyers entered the market to react on strong drop. There is also a fake breakout of the swing low in the background, which indicates strong buying pressure. Watch for buying opportunities. Take profit level is set at the price of $1,364.00.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,361.40

R2: 1,364.80

R3: 1,370.40

Support levels:

S1: 1,350.20

S2: 1,346.70

S3: 1,341.20

Trading recommendations for today: Selling looks very risky. Watch for buying opportunities.

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NZD/USD intraday technical levels and trading recommendations for August 5, 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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USD/CAD intraday technical levels and trading recommendations for August 5, 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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Intraday technical levels and trading recommendations for GBP/USD for August 5, 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 5, 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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Elliott wave analysis of EUR/NZD for August 5, 2016

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Wave summary:

Unfortunately, our fear that the corrective decline in wave ii from 1.5839 needed more downside room closer to 1.5330 proved correct. We still see this correction as a nice buy set-up, but we need to let it have more time to complete. From support at 1.5330 or upon a break above 1.5627 the next strong rally higher towards 1.7281 and above will be expected.

Trading recommendation:

Our stop at 1.5400 was hit. We will buy EUR at 1.5345 with stop placed at 1.5065 or upon a break above 1.5627.

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Technical analysis of USD/JPY for August 05, 2016

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USD/JPY is expected to trade with a bearish bias as key resistance remains at 102.00. The pair remains range-bound between the key resistance at 102.00 (a key support seen in July 29--August 2) and the first downside target at 100.65 (the low of August 2). Currently, the pair is around both the 20-period (30-minute chart) and 50-period moving averages, while the intraday relative strength index is still above 50 showing a lack of downward momentum. However, as long as 102.00 is not surpassed, the pair stands a chance of retesting 100.65 and the psychological level of 100.00.

Trading Recommendation:

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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Elliott wave analysis of EUR/JPY for August 5, 2016

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Wave summary:

The most recent price action is of concern to our long-term bullish outlook, but as long as important support at 110.79 is able to protect the downside, we will keep the bullish outlook as out preferred count. Under this count, we need a break above minor resistance at 113.27 to strongly indicate the completion of wave [ii] and the on-set of wave [iii] higher towards 124.55 and likely above.

If however the important support at 110.79 is broken, that will leave us with a three wave rally of the 109.48 low and call for a new test of this low and continuation lower to 106.03 before the long term corrective decline from 149.56 finally comes to an end.

Trading recommendation:

We will only buy upon a break above 113.27. If done stops will be placed just below the most recent low.

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Technical analysis of USD/CHF for August 05, 2016

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USD/CHF is expected to trade with a bullish bias. The pair is trading above its 20-period and 50-period moving averages, which are playing support roles. The relative strength index is above its neutrality level at 50. on Thursday, U.S. stock indexes ended broadly flat as investors were waiting for the July U.S. jobs report due Friday, which is expected to provide clues on when the Federal Reserve will raise interest rates again. Additionally, 0.9695 (August 1 top) is playing a key support role, which should limit the downside potential. As long as this key level holds on the downside, look for further upside toward 0.9765. A break above this level would call for further advance toward 0.9825. Below 0.9695, look for further downside with 0.9670 and 0.9630 as targets.

Resistance levels: 0.9765, 0.9825, 0.9875

Support levels: 0.9670, 0.9630, 0.9590

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Technical analysis of NZD/USD for August 05, 2016

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NZD/USD is expected to trade in a wider range as the bias remains bullish. The pair broke below its 20-period and 50-period moving averages, while the relative strength index is below its neutrality level at 50. Nevertheless, a support base has formed around 0.7135 (August 3 low), which should limit the downside potential. Even though a continuation of the consolidation cannot be ruled out, its extent should be limited. As long as the key support at 0.7135 holds on the downside, look for further upside toward 0.7245 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 0.7245 and the second one, at 0.7260. In the alternative scenario, short positions are recommended with the first target at 0.7100, 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 0.7075. The pivot point is at 0.7135.

Resistance levels: 0.7245, 0.7260, 0.7295

Support levels: 0.7100, 0.7075, 0.7055

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Technical analysis of GBP/JPY for August 05, 2016

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GBP/JPY is under pressure. 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.As widely expected, the Bank of England cut its key interest rate by 25 basis points to a record low of 0.25%. However, the first rate cut since 2009 came with an unexpected quantitative easing package as the central bank said it would buy 60 billion pounds of government bonds and 10 billion pounds of corporate bonds, and launch a scheme to ensure banks pass on the rate cut to borrowers. The central bank also said it expects the U.K. economy to stagnate for remainder of 2016 and even weaken in 2017. As long as 134.40 holds as the key resistance, a drop toward 131.10 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 132.15. A break below this target will move the pair further downwards to 131.10. The pivot point stands at 132.40. 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: 132.15, 131.10, 130.25

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Technical analysis of USD.CAD for August 5, 2016

With the Canadian Dollar strengthening against the US Dollar as Oil prices rise above 41$, I expect some more weakness for the USDCAD pair over the coming days and a possible pull back even towards 1.29. However, my longer-term view for a push towards 1.33-1.36 is still in play.

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Blue lines - long-term triangle pattern

With a possible fake breakout above 1.3150 USDCAD is making lower lows and lower highs. Price is most probably heading towards daily cloud support at 1.29 where I will look to open long positions. I continue to believe that the correction of the entire decline is still not over and that this pair should at least make a strong bounce towards 1.33 if not 1.36.

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Green line - short-term support

USDCAD has broken below the 4 hour Kumo (cloud) support and the short-term triangle pattern targeting the green trend line support at 1.2970. With NFP announcement today we should expect some wild movements in all dollar pairs. My longer-term view remains bullish so I continue to expect a large scale reversal, either from current levels or from 1.29.

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Technical analysis of GBP/USD for August 5, 2016

After the rate cut by the BOE yesterday, GBP/USD has started a new downward trend that has broken out and below the long-term triangle pattern. Traders should be very patient and wait for a bounce before shorting this pair as the ultimate target remains 1.25.

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Blue lines - triangle pattern

Red line - horizontal support 1.3050

GBP/USD has broken below 1.3170 support we mentioned yesterday and is trading just above 1.31. Next short-term support is at 1.3050 while resistance is at 1.32. Trend is bearish. However traders that have no open positions should wait for a bounce to back test the broken triangle boundary.

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What I expect is a test or a move close to 1.3050 and then an upward reversal towards the 4 hour Kumo and the lower triangle boundary. Also the 61.8% Fibonacci retracement of the decline from the recent highs is also a possible target. The 38% level around 1.3170 is the most probable target. These targets are subject to change relative to the low the pair will have made. Overall I remain patient and wait for a bounce to sell it.The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of USDX for August 5, 2016

The Dollar index is rising after reversing from the 95 level and has crossed above short-term resistance levels. However price has still more obstacles ahead in order to confirm an important low is in.

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The Dollar index remains below the Kumo on the 4-hour chart but is trading above the tenkan- and kijun-sen indicators. Resistance is at 96.30. Support is at 95. Bulls are in danger of seeing price get rejected at the Kumo and reversing. Bulls want to see a follow through of this bounce and a break above the 4-hour cloud.

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On a weekly basis I have pointed out several times that the weekly kijun- and tenkan-sen indicators are very important support levels. Currently the weekly candle is shaping up to be a nice bullish reversal signal. This will imply more strength over the coming weeks with new highs above 97.30 a certainty. However a weekly close below 95 will be a bearish sign that will put 93 in danger.The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of Gold for August 5, 2016

Gold price is challenging its recent highs at $1,367 and its yearly highs at $1,375. With the announcement of the US Non-Farm Payrolls today we expect volatility to rise and to see wide price movements. Gold price usually starts to fluctuate before the NFP numbers are announced, so be careful of stop hunters.

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Blue line - resistance

Gold price is trading just below the short-term resistance of the recent high and above the kijun- and tenkan-sen indicators in the 4 hour chart above. A rejection here will push price towards the cloud support and the 38% Fibonacci retracement near $1,345. Today I believe Gold price will reverse lower towards $1,345 and even lower.

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Green line - short-term support

Blue lines - bullish channel

In the daily chart Gold price is shown near its yearly highs. A break above $1,375 on a daily close will open the way for a push higher towards $1,425-$1,475. A break below the green trend line will open the way for a push towards the yellow rectangle and the Kumo area of $1,300-$1,290. A double top is very possible today. If news are bad for Gold, expect a big sell off towards $1,300 or even lower.

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Global macro overview for 05/08/2016

Global macro analysis for 05/08/2016:

The Reserve Bank of Australia quarterly statement on monetary policy was released overnight and it reveals some interesting conclusions. First, RBA projects the underlying inflation to remain under 2 pct for much of forecast period, reach 2 pct by end 2018. The policy easing (the latest rate cut) stimulates economic growth but offers no forward guidance. The outlook for the economy is still positive and the low inflation might allow even stronger growth. The AUD remains a significant source of uncertainty for inflation and growth forecasts, but some RBA projections indicate underlying inflation at 1.5 pct by the end of 2016, 1.5-2.5 pct by the end of 2017, and 1.5-2.5 pct by the end of 2018. Moreover, GDP growth is forecasted at 2.5-3.5 pct by the end of 2016, 2.5-3.5 pct by the end of 2017,and 3-4 pct by the end of 2018. At the end of the statement the RBA remarked that Brexit will have a limited effect on Australia's major trading partners.

Let's now take a look at the AUD/USD technical picture in the daily time frame. The bull camp is trying to push the prices higher above the golden trend line and technical resistance at the level of 0.7672. The market already trades above the 50, 100, and 200 daily moving averages, so if bulls manage to push the prices higher, then the next resistance is seen at the level of 0.773 and 07835.

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Global macro overview for 05/08/2016

Global macro analysis for 05/08/2016:

The most anticipated fundamental event of the week, the NFP Payrolls data, will be released today at 12:30 pm GMT. The market participants are expecting another good number for the month of July. The anticipated figure is at the level of 180k, a lower number than last month impressive release of 298k. Earlier this week the ADP number were in line with expectations, so any data that will be better than expected will easily spark yet another wave of speculation regarding a possible interest rate hike at the FED's September meeting. According to the FedWatch tool by CME Group, the current number of investors that expect a rate hike in September is 9%, but it might be changed if data beats expectations.

Let's now take a look at the US Dollar index technical picture at the daily time frame. The bulls have managed to move the prices higher towards the 21 days moving average after it bounced from support at the level of 95.00. The sequence of higher highs and higher lows is still valid, so this might be the beginning of a new uptrend. Any break out above the golden trend line confirms that bulls are in full control over this market.

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Technical analysis of EUR/JPY for August 5, 2016

General overview for 05/08/2016:

The market trades in very narrow range as the Elliott wave count has evolved into an abc-x-abc-x-abc triple three complex corrective cycle.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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Technical analysis of USD/CAD for August 5, 2106

General overview for 05/08/2016:

For the second time the market has tested the intraday support at the level of 1.3000 and still this support is not clearly violated. However, the market is still trading below the weekly pivot at the level of 1.3081 and below the dashed intraday trend line as well. This indicates, that another wave down is being developed just as per Elliott wave count. The projected target for this wave is at the level of 1.2900.

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 NZD/USD for August 05, 2016

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Overview:

  • The NZD/USD pair couldn't break the support level of 0.7141. Thus, the pair has already formed minor support at 0.7141.The strong support is seen at the level of 0.7106 because it represents the weekly support 1. Equally important, the RSI and the moving average (100) are still calling for an uptrend. Therefore, the market indicates a bullish opportunity at the level of 0.7141 in the H1 chart. Also, if the trend is buoyant, then the currency pair strength will be defined as following: NZD is in an uptrend and USD is in a downtrend. Buy above the minor support of 0.7141 with the first target at 0.7220 (this price is coinciding with the ratio of 88.2% Fibonacci), and continue towards 0.7255 (the double top). Also, note that the price is still above the support levels of 0.7141 and 0.7106. Immediate support is seen at 0.7141, which coincides with a golden ratio (61.8% of Fibonacci). On the other hand, if the price closes below the first support, the best location for the stop loss order is seen below 0.7100; hence, the price will fall into the bearish market in order to go further towards the strong support at 0.6957 to test it. Furthermore, the level of 0.6957 will form a double bottom. But in overall, we still prefer the bullish scenario, because downward trend is still strong for that we expect that the pair will probably go up today.
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Technical analysis of USD/CHF for August 05, 2016

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Overview

  • The USD/CHF didn't make significant movement yesterday. There are no changes in my technical outlook. The bias remains bearish in nearest term testing 0.9622 or lower. Immediate support is seen around 0.9622. A clear break below that area could lead price to neutral zone in nearest term testing 0.9572. In the last few days, 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. 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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Overview:

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Technical analysis of EUR/USD for Aug 05, 2016

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When the European market opens, some economic data will be released such as Italian Industrial Production m/m, French Trade Balance, German Factory Orders m/m.The US will release the economic data too such as Consumer Credit m/m, Trade Balance, Unemployment Rate, Non-Farm Employment Change, Average Hourly Earnings m/m, so amid the reports, EUR/USD will move in a medium to high volatility during this day.

TODAY'S TECHNICAL LEVEL:

Breakout BUY Level: 1.1185.

Strong Resistance:1.1179.

Original Resistance: 1.1168.

Inner Sell Area: 1.1157.

Target Inner Area: 1.1131.

Inner Buy Area: 1.1105.

Original Support: 1.1094.

Strong Support: 1.1083.

Breakout SELL Level: 1.1077.

Disclaimer: Trading Forex (foreign exchange) on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

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Technical analysis of USD/JPY for Aug 05, 2016

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In Asia, Japan will release the Leading Indicators, Average Cash Earnings y/y and the US will release some Economic Data such as Consumer Credit m/m, Trade Balance, Unemployment Rate, Non-Farm Employment Change, Average Hourly Earnings m/m.So there is a probability the USD/JPY will move with medium to high volatility during this day.

TODAY'S TECHNICAL LEVEL:

Resistance. 3: 101.74.

Resistance. 2: 101.54.

Resistance. 1: 101.34.

Support. 1: 101.09.

Support. 2: 100.89.

Support. 3: 100.69.

Disclaimer: Trading Forex (foreign exchange) on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

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Daily analysis of major pairs for August 5, 2016

EUR/USD: A bearish reversal has started on this pair since Wednesday, but the bias is yet to turn bearish. A condition for a bearish signal in the 4-hour chart is the situation in which price goes below the accumulation territory at 1.1000, which would require a strong bearish pressure. Without the condition above being met, price might even go further upwards from here.

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USD/CHF: The USD/CHF assumed a rally August 3, 2016, which, however, is yet to override the existing bearish bias. Price moved upwards by 100 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: The bearish movement that started on Thursday has led to a bearish signal on the GBP/USD, especially in the short-term. There is now a Bearish Confirmation Pattern in the market, which may enable price to go below the distribution territories at 1.3100 and 1.3050; though price may turn at the accumulation territory at 1.3000.

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USD/JPY: This is a bear market, and there is a Bearish Confirmation Pattern in the 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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Daily analysis of USDX for August 05, 2016

USDX is about to reach the 200 SMA in the H1 chart, where a pullback can happen to resume the overall bearish structure. Ahead of US NFP release that will take place today, the US Dollar is poised to extend the corrective phase where it is trading currently. However, a breakout below the 95.51 level can open the doors to reach the 95.02 level.

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H1 chart's resistance levels: 95.93 / 96.32

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 96.00.

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Daily analysis of GBP/USD for August 05, 2016

The pair plummeted from weekly highs after the BoE interest rate decision as the central bank finally decided to cut rates by 25 bps. Now, GBP/USD is trading below the 200 SMA and is very close to the key support zone of 1.3085, where there is an active demand zone. A lower breakout could deliver more bearish bias toward the 1.3000 psychological level.

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H1 chart's resistance levels: 1.3148 / 1.3266

H1 chart's support levels: 1.3085 / 1.3000

Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the GBP/USD pair breaks a bullish candlestick; the resistance level is at 1.3148, take profit is at 1.3266 and stop loss is at 1.3028.

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