USD/CAD intraday technical levels and trading recommendations for August 8, 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 occur towards 1.2820 and 1.2700.

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NZD/USD Intraday technical levels and trading recommendations for August 8, 2016

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Bullish persistence above 0.6550 (the depicted support) was necessary to keep the price moving towards higher bullish targets.

In February and March, signs of bearish rejection (triple-top reversal pattern) were expressed around the price level of 0.6750 until April when a bullish breakout above 0.6750 and 0.6860 was executed.

Later on May 6, daily candlestick closure below the 0.6850 level enhanced a quick bearish movement towards 0.6750 where bullish rejection was expected to be applied. However, obvious bearish closure below 0.6750 was achieved on May 24.

On May 30, obvious bullish rejection was expressed around the price level of 0.6675 (the lower limit of the depicted channel). That's 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 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 0.6760-0.6700 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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Intraday technical levels and trading recommendations for GBP/USD for August 8, 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 (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 8, 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, an 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 shows. 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 to 1.0820 (key level 2) where price actions should be watched for a possible short-term BUY entry.

On the other hand, the EUR/USD pair kept 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 the previous articles.

Price actions 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 will be located at 1.1115, 1.1060, and 1.1020.

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Technical analysis of USD/JPY for August 08, 2016

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USD/JPY is expected to trade with bullish bias.The pair broke above the key resistance at 102.00 last Friday and kept pushing higher. Currently, the pair has located support above the 20-period (30-minute chart) moving average, which stands above the 50-period one. The intraday relative strength index is well directed above 50, lacking downward momentum. The U.S. Labor Department reported that nonfarm payrolls gained 255,000 in July (vs. +179,000 expected, upwardly revised +292,000 in June). The jobless rate remained unchanged at 4.9% (vs. 4.8% expected), and the average hourly earnings increased 0.3% on month and +2.6% on year.

U.S. government bond prices fell across the board with the benchmark 10-year U.S. Treasury yield shooting up to 1.583% from 1.503% Thursday. Gold dropped 1.9% to $1335 an ounce, the biggest fall in nearly three months, and silver plunged 3.1% to $19.66 an ounce, the largest loss in over four months.The intraday outlook is very bullish and the pair is expected to rise further toward 102.85 (a level of over-lapping support and resistance seen on July 29 -- August 2).

Trading Recommendation:

The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. Therefore, long positions are recommended with the first target at 102.85 and the second one, at 103.90. In the alternative scenario, short positions are recommended with the first target at 100.95, 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 100.65. The pivot point is at 101.30.

Resistance levels: 102.85, 103.90, 104.60

Support levels: 100.95, 100.65, 100.00,

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Technical analysis of USD/CHF for August 08, 2016

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USD/CHF is expected to trade with bullish bias. The pair broke above 50-period moving average, which acts as a support now, and is holding on the upside. The relative strength index is bullish above its neutrality area at 50 and lacks downward momentum. The U.S. Labor Department reported that non-farm payrolls gained 255,000 in July (vs. +179,000 expected, upwardly revised +292,000 in June). The jobless rate remained unchanged at 4.9% (vs. 4.8% expected), and the average hourly earnings increased 0.3% on month and 2.6% on year.

U.S. government bond prices fell across the board with the benchmark 10-year U.S. Treasury yield shooting up to 1.583% from 1.503% Thursday. Gold dropped 1.9% to $1,335 an ounce, the biggest fall in nearly three months, and silver plunged 3.1% to $19.66 an ounce, the largest loss in over four months.

Additionally, 0.9720 (August 4 bottom) represents a significant support level, which should limit the downside potential. As long as this key level is not broken, look for further upside toward 0.9875. A break above this level would open the way to further upside toward the next resistance at 0.99055.

Resistance levels: 0.9875, 0.9905, 0.9985

Support levels: 0.9720, 0.9670, 0.9630

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Technical analysis of NZD/USD for August 08, 2016

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NZD/USD is under pressure and is expected to trade with bearish bias. The pair broke below a rising trend line since August 3 and remains capped by the descending 20-period and 50-period moving averages. Meanwhile, the relative strength index has broken down its 30 level. As long as 0.7165 is not broken above, the pair is expected to drop toward 0.7085 and even 0.7060 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 0.7085. A break below this target will move the pair further downwards to 0.7060. The pivot point stands at 0.7165. 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 0.7195 and the second one at 0.7220.

Resistance levels: 0.7195, 0.7220, 0.7260

Support levels: 0.7085, 0.7060, 0.7015

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Technical analysis of GBP/JPY for August 08, 2016

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GBP/JPY is expected to trade with bearish bias as the key resistance stands at 134.60. The pair eventually broke below the support level at 134.60. Since then it has posted a rebound and is currently trading around the 20-period moving average, which stands below the 50-period one. Meanwhile, the intraday relative strength index remains below 50, suggesting a lack of momentum for the rebound. As long as 134.60 holds as the key resistance, the pair is expected to return to the first downside target at 132.15.

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 134.60. 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 135.60 and the second one at 136.30.

Resistance levels: 135.60, 136.30, 137.10

Support levels: 132.15, 131.10, 130.25

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Gold analysis for August 08, 2016

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Since our previous analysis, gold has been trading downwards. The price tested the level of $1,329.79 in an average volume. According to the H1 time frame, I found a lack of supply at the level of $1,330.00. It is very risky to sell at this stage. There is strong bullish divergence on the RSI oscillator and a lack of selling pressure according to the volume analysis. I placed Fibonacci retracement to find potential resistance levels and got Fibonacci retracement 38.2% at the price of $1,338.00. There is also a swing high at the price of $1,338.00. Be careful when selling and watch for potential buying opportunities.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,341.30

R2: 1,342.40

R3: 1,344.15

Support levels:

S1: 1,337.80

S2: 1,336.70

S3: 1,334.90

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

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EUR/NZD analysis for August 08, 2016

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Recently, EUR/NZD has been moving upwards. As I expected, the price tested the level of 1.5642. According to the 1H time frame, I found the strong reaction from buyers in the background, which is a sign that selling looks risky. Today, I found a successful test of supply in an average volume. So, watch for potential buying opportunities on the dips. The first take profit level is set at the price of 1.5640. I have placed Fibonacci retracement to find potential support levels. I got Fibonacci retracement 50% at the price of 1.5535 and Fibonacci retracement 61.8% at the price of 1.5513.

Fibonacci Pivot Points:

Resistance levels:

R1: 1.5545

R2: 1.5570

R3: 1.5610

Support levels:

S1: 1.5460

S2: 1.5425

S3: 1.5380

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

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Global macro overview for 08/08/2016

Global macro overview for 08/08/2016:

The Industrial production data from Germany had been published this morning and they were worse than expected. The previous month saw a decline to -0.9% m/m, so for this month the market participants have expected a better number, just at the level of 0.9%/m/m. Nevertheless, the data were released at the level of 0.8%, which wasn't that bad, but still worse than expected. In conclusion, the Eurozone power engine is not stopping and works quite well with an unemployment at a record low, but still it not always up to economists expectations.

Let's now take a look at the EUR/USD technical picture at 4H time frame. The market plunged after the Friday's NFP data from USA, and now it is trading around the middle of the trading zone. The high at the level of 1.1230 might be considered as a lower high, in which case the bears should take the control over this market and push the price towards the next support at the level of 1.1028.

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Global macro overview for 08/08/2016

Global macro overview for 08/08/2016:

The NFP Payrolls data were published last Friday and the results positively surprised the market participants. The US non-farm sector created more jobs than expected last month (255k vs. 180k expected) and the unemployment rate remained unchanged at the level of 4.8%. Moreover, the preceding month's figure was revised up to 292,000 from the originally reported reading of 287,000. In conclusion, very good data from US job market might again increase the speculation about a possible interest rate hike in September meeting.

Let's now take a look at the US Dollar index technical picture at the daily time frame. The bulls have managed to bounce from the level of 95.00 and now the market is trading around the middle of the trading range. The next resistance is seen at the level of 96.52 and the next support is seen at the level of 95.32.

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Technical analysis of USD/CAD for August 8, 2016

General overview for 08/08/2016:

The top for the wave b green might be in place now at the level of 1.3190 and the market should start to develop wave c green to the downside. Nevertheless, any breakout above the high at the level of 1.3251 will invalidate the count and then higher prices might be expected.

Support/Resistance:

1.3282 - WR1

1.3251 - Wave Y Top

1.3190 - Intraday Resistance

1.3146 - Intraday Support

1.3135 - Weekly Pivot

1.3080 - WS1

1.3000 - Technical Support

1.2935 - WS1

Trading recommendations:

Day traders should consider to open buy orders only if the level of 1.3251 is clearly violated. Otherwise the bias outlook remains.

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Technical analysis of GBP/USD for August 08, 2016

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Overview:

  • The GBP/USD pair continues to move downwards from the level of 1.3138. Also, it should be noted that the pair dropped from the level of 1.3138 (this level of 1.3138 coincides with the ratio of 50% Fibonacci Expansion) to the bottom around the spot of 1.3035. Today, the first resistance level is seen at 1.3138 followed by 1.3219, while daily support 1 is found at 1.2957. Also, the level of 1.3138 represents a weekly pivot point for that it is acting as major resistance this week. Since the trend is below the 50% Fibonacci level, the market is still in a downtrend. Overall, we still prefer the bearish scenario. Equally important, the RSI is still calling for a strong bearish market as well as the current price is also below the moving average 100. Amid the previous events, the pair is still in a downtrend, because the GBP/USD pair is trading in a bearish trend from the new resistance line of 1.3138 towards the first support level at 1.2957 in order to test it. If the pair succeeds to pass through the level of 1.2957, the market will indicate a bearish opportunity below the level of 1.2827 in coming days. However, if a breakout happens at the resistance level of 1.3219, then this scenario may be invalidated.
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Technical analysis of EUR/JPY for August 8, 2016

General overview for 08/08/2016:

The bottom for the wave b might be in place at the level of 112.31, but to confirm this scenario the price must impulsively break out above the 113.92 level and head higher. And violation of the intraday support at the level of 112.31 will invalidate this scenario.

Support/Resistance:

112.31 - Intraday Support

113.26 - Weekly Pivot

113.92 - Intraday Resistance

114.22 - WR1

115.76 - WR2

116.72 - WR3

Trading recommendations:

Day traders should consider opening buy orders from current price levels and place the SL just below the level of 112.30. TP is open for now.

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Technical analysis of EUR/USD for August 08, 2016

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Overview:

  • The EUR/USD pair dropped sharply from the level of towards 1.1160. Now, the price is set at 1.1095 to act as a daily pivot point. It should be noted that volatility is very high for that; EUR/USD is still moving between 1.1127 and 1.1062 in coming hours. Furthermore, the price has been set below the strong resistance at the levels of 1.1160 and 1.1127, which coincides with the major resistance and 61.8% Fibonacci retracement level respectively. Additionally, the price is in a bearish channel now. Amid the previous events, the pair is still in a downtrend. From this point, the EUR/USD pair is continuing in a bearish trend from the new resistance of 1.1127. Thereupon, the price spot of 1.1160 - 1.1127 remains a significant resistance zone. Therefore, a possibility that the EUR/USD pair will have downside momentum is rather convincing and the structure of a fall does not look corrective. In order to indicate a bearish opportunity below 1.1127, sell below 1.1127 with the first targets at 1.1062 and 1.1022. If the EUR/USD pair fails to break through the support level of 1.1022 this week, the market will decline further to 1.0958. The pair is expected to drop lower towards at least 1.0958 (the double bottom is seen at 1.0958). However, the stop loss should be located above the level of 1.1199.
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Daily analysis of major pairs for August 8, 2016

EUR/USD: This pair moved north on Monday and Tuesday, and then began to trend downwards from Wednesday till the end of the week. Only a movement above the resistance line at 1.1300 would lead to a "buy" signal, otherwise, this pair would remain in a bearish market.

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USD/CHF: The USD/CHF pair went downwards on August 1 and 2, and then began a bullish journey that lasted till August 5. This happened in the context of a downtrend and it has not invalidated the downtrend, which would hold for some time. When price goes beyond the resistance level at 0.9950, a clean bullish signal would form, though that is unlikely to happen.

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GBP/USD: On the Cable, the bias is bearish on the 4-hour and the daily chart, with clean Bearish Confirmation Patterns on both time horizons. The outlook for this week remains bearish, though price would eventually meet some recalcitrant accumulation territories at 1.3000 and 1.2950, which would pose some challenges to bears.

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USD/JPY: This currency trading instrument moved sideways last week, then went further south, and consolidated again till Friday. The outlook on the instrument, as well as other JPY pairs, remains strongly bearish. So it would be interesting to watch the demand levels at 101.00, 100.50, and 100.00, which should be breached after much selling pressure.

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EUR/JPY: This cross moved south last week – by at least around 200 pips. This slow and steady movement (or fast movement) is expected to continue this week, as bears push price towards the demand zones at 112.50, 112.00, and 111.50. Since there is a Bearish Confirmation Pattern in the market, the demand zones would be likely reached, though there may be a show of strength by bulls along the way.

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NZD/USD Trading Recommendations for 8th August 2016

Price has reached our profit target perfectly from Friday. We remain bearish looking to sell on strength at 0.7150 for a further drop to 0.7070.

Stop loss is wider today because of the market fluctuations we expect post Non-Farm Payroll and is at our recent swing high at 0.7220.

RSI (21) is below our 50% level signalling a bearish move is still in progress.

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Trading Recommendations :

Sell entry 0.7150.

Stop loss at 0.7220.

Take profit at 0.7070.

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EUR/JPY Trading Recommendations for 8th August 2016

Price bounced above our channel support as expected. We remain bullish above 113.00 for a further rise to 114.75.

We can see price crossing above the thin descending green line signalling a bullish recovery is approaching.

Stochastics (21,5,3) has made a bullish exit from its long descending resistance-turned-support line. It also displays bullish divergence vs price signalling a bullish move from here.

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Trading Recommendations :

Buy above 113.00.

Stop loss 112.20.

Take profit 114.75.

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USD/JPY Trading Recommendations for 8th August 2016

Price has bounced up really nicely as expected since Friday. We are half way towards our profit target. We look to buy on weakness at 101.70 to add to our position for a further rise to 103.00

101.70 is a strong support level (Fibonacci retracement + graphical overlap support)

RSI (21) has also made a really nice bullish exit triggering a further rise from here.

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Trading Recommendations :

Buy above 101.70.

Stop loss at 100.55.

Take profit at 103.00

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USD/CAD Trading Recommendations for 8th August 2016

We have reached our profit target on Friday after USD/CAD made the bounce we expected perfectly. We look to sell on strength below 1.3240 which is a strong graphical resistance line and the Bollinger band resistance on the 4H chart. Stochastics is approaching the 92% resistance soon but still has some potential to rise before it turns down.

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Trading Recommendations :

Sell below 1.3240.

Stop loss at 1.3385.

Take profit at 1.3090.

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Elliott wave analysis of EUR/NZD for August 8, 2016

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Wave summary:

We saw a new low 1.5397, before the next rally higher and the break above the channel resistance line at 1.5551 is the first good indication that the correction in wave ii finally has come to an end and a new impulsive rally is developing. A clear break above minor resistance at 1.5627 is still needed to confirm a rally, in particular the start of a new impulsive rally higher to 1.6178 and above.

Short-term support is seen at 1.5518 and at 1.5397.

Trading recommendation:

We are long EUR from 1.5627 with stop placed at 1.5390. If you are not long EUR yet, then buy near 1.5518 or upon a break above 1.5615 and start by using the same stop at 1.5397.

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Elliott wave analysis of EUR/JPY for August 8, 2016

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Wave summary:

Important short-term resistance at 113.27 is currently being tested. A clear break above this resistance has not yet been seen, but it is expected to be seen soon. A confirmed break above 113.27 will be the first strong indication of a corrective low being in place at 112.31 for a rally back to the 118.47 high on the way higher to 122.00 and 124.55 as the next major upside targets.

Support at 112.31 is now expected to be able to protect the downside for the next impulsive rally, but even if this support is broken, the downside is expected to limited and at no point should the invalidation point at 110.79 be broken.

Trading recommendation:

We are long EUR from 113.27 and will place out stop at 112.27. If you are not long yet, then buy during a break above minor resistance at 113.40 and use the same stop at 112.27.

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Technical analysis of EUR/USD for Aug 08, 2016

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When the European market opens, some economic data will be released such as Sentix Investor Confidence, German Industrial Production m/m.The US will release the economic data too such as Labor Market Conditions Index m/m, Mortgage Delinquencies, so amid the reports, EUR/USD will move in a low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Breakout BUY Level: 1.1137.

Strong Resistance:1.1131.

Original Resistance: 1.1120.

Inner Sell Area: 1.1109.

Target Inner Area: 1.1083.

Inner Buy Area: 1.1057.

Original Support: 1.1046.

Strong Support: 1.1035.

Breakout SELL Level: 1.1029.

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 08, 2016

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In Asia, Japan will release the Economy Watchers Sentiment and the US will release some Economic Data such as Labor Market Conditions Index m/m, Mortgage Delinquencies, .So there is a probability the USD/JPY will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Resistance. 3: 102.54.

Resistance. 2: 102.34.

Resistance. 1: 102.14.

Support. 1: 101.89.

Support. 2: 101.69.

Support. 3: 101.49.

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 USDX for August 8, 2016

The Dollar index rallied last Friday after the strong and higher than expected NFP numbers. Since the mid of last week I warned Dollar bears that it was about time for the Dollar index to reverse once it reached the 50% retracement level.

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In the 4 hour chart price has hit Kumo resistance at 96.30-96.50. A reversal and rejection at this area is possible as this is important short-term resistance. A break out above will open the way for a re-test of the 97.30 area and even higher levels.

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Last week's candle held support and made an impressive bullish body implying that the up trend may very well be resuming. The first important resistance is the weekly Kumo at 96.50. A weekly close above will open the way for a push above 97.30. However, with stochastics overbought and turning lower we should be cautious in case we see a rejection at 96.50. Last week's high is very important for the short-term trend.

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Technical analysis of Gold for August 8, 2016

Gold price got rejected at resistance last Friday and made a sharp pull back towards $1.330 after the announcement of the US NFP numbers. Medium-term bullish trend remains intact only as long as price is above $1,300. Bulls need to see a reversal to the upside from current levels but not a break of the $1,300 support.

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Gold price has reached below the 50% retracement of the latest rise and the 4 hour Kumo support. A reversal could occur from the 61.8% Fibonacci retracement which is important short-term support. After Friday's reversal, the importance of the resistance at $1,370-75 becomes bigger as a break above it will sure push Gold price above $1,400.

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Blue lines - bullish channel

Last week's candle is a reversal candle after a rejection at a weekly resistance with oscillators turning lower from overbought levels and price support below $1,280. If the $1,300 level is broken we will surely expect Gold price to move towards $1,250 or even lower. Bullish medium-term trend is challenged.

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Daily analysis of USDX for August 08, 2016

At H1 chart, USDX is consolidating higher and the resistance zone of 96.32 is being challenged. Above that zone, we can expect another advance towards the 96.75 level, where the sellers could be waiting for. However, a pullback can drive the Index to re-test the support zone of 95.51. MACD indicator is showing overbought conditions.

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H1 chart's resistance levels: 96.32 / 96.75

H1 chart's support levels: 95.93 / 95.51

Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the USD Index breaks with a bullish candlestick; the resistance level is at 96.32, take profit is at 96.75 and stop loss is at 95.90.

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Daily analysis of GBP/USD for August 08, 2016

GBP/USD is riding into a very bearish trend below the 200 SMA at H1 chart and it's now looking to consolidate lower in order to reach new post-Brexit lows. Currently, a bearish pattern formation can be seen and it could deliver more pressure to the downside. A breakout below the 1.3000 mark would expose the 1.2894 level.

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H1 chart's resistance levels: 1.3085 / 1.3148

H1 chart's support levels: 1.3000 / 1.2894

Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the GBP/USD pair breaks a bearish candlestick; the support level is at 1.3000, take profit is at 1.2894 and stop loss is at 1.3106.

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