NZD/USD intraday technical levels and trading recommendations for August 12, 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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USD/CAD intraday technical levels and trading recommendations for August 12, 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, conservative traders should be waiting for a daily fixation below 1.3000 to have a valid SELL entry. Initial T/P levels should be located at 1.2820 and 1.2700.

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Intraday technical levels and trading recommendations for GBP/USD for August 12, 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 a 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 12, 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 a 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 should be expected again.

Price actions should be 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 1.1250. 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 12, 2016

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USD/JPY is expected to extend its upside movement. The pair is holding on the upside and broke above its 20-period and 50-period moving averages which acts as support and maintains the upside bias. The relative index is bullish above its neutrality area at 50 and is calling for further upside. On Thursday, U.S. stocks rebounded sending all three major indexes to record-high closing levels on the same day, the first time since 1999. The U.S. dollar stabilized after experiencing broad-based selling for the prior two sessions. As long as 101.50 holds on the downside, look for further rise toward 102.30. A break above this level would open the way to further upside toward the next resistance at 102.50.

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 102.30 and the second one, at 102.50. In the alternative scenario, short positions are recommended with the first target at 101.15, 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 100.95. The pivot point is at 101.50.

Resistance levels: 102.30 , 102.50, 102.85

Support levels: 101.15, 100.95, 100.65

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Technical analysis of USD/CHF for August 12, 2016

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USD/CHF is expected to trade with a bullish bias as key resistance is set at 0.9785. The pair is trading above its 20-period and 50-period moving averages and the relative strength index is above its neutrality area at 50. On Thursday, U.S. stocks rebounded sending all three major indexes to record-high closing levels on the same day, the first time since 1999. The benchmark 10-year U.S. Treasury yield climbed to 1.572% from 1.509% in the prior session. Seeing safe-haven buying subside as U.S. dollar and stocks received bids, gold declined 0.6% to $1,338 an ounce. Silver dropped 0.7% to $19.93 an ounce.

Nevertheless, 0.9785 represents a significant key resistance level, which should limit the upside potential. As long as this key level is not broken, the pair is likely to return to 0.9710. A break below this level would open the way to further weakness toward the next support at 0.9690.

Resistance levels: 0.9805, 0.9845, 0.9905

Support levels: 0.9710, 0.9690, 0.9670

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Technical analysis of NZD/USD for August 12, 2016

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NZD/USD is expected to trade with a bullish bias. The pair broke below its 20-period and 50-period moving averages and is posting some consolidation. The relative strength index is mixed and calling for caution. Nevertheless, a support base at 0.7145 has formed and should limit the downside attempts.The New Zealand dollar failed to follow through after surging to a one-year high of 0.7341 against the U.S. dollar upon the Reserve Bank of New Zealand's expected 25-basis-point rate cut. NZD/USD closed at 0.7202, just 9 pips higher on day. As long as this key support is not broken, we keep our positive view unchanged with up target at 0.7260. A break above this level would open the way to further upside toward the next resistance at 0.7310.

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 0.7260 and the second one, at 0.7310. In the alternative scenario, short positions are recommended with the first target at 0.7105, 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 0.7145.

Resistance levels: 0.7260, 0.7310, 0.7380

Support levels: 0.7105, 0.7075, 0.7030

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Technical analysis of GBP/JPY for August 12, 2016

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GBP/JPY is expected to trade with a bullish bias. The pair is rebounding on its horizontal support at 131.55, while the 20-period moving average has just crossed above the 50-period one.European stocks turned positive with the STOXX Europe 600 rebounding 0.8%. Germany's DAX rose 0.9%, the U.K.'s FTSE increased 0.7%, and France's CAC gained 1.2%. Further bounce is therefore expected with 132.70 and 133.20 as targets.

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 132.70 and the second one, at 133.20. In the alternative scenario, short positions are recommended with the first target at 130.90, 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 130.50. The pivot point is at 131.55.

Resistance levels: 132.70, 133.20 , 134.60

Support levels: 130.90 , 130.50, 129.75

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Global macro overview for 12/08/2016

Global macro overview for 12/08/2016:

The Statistics New Zealand agency released the retail sales data for the second quarter and it surprised market participants. Through the March - June quarter the volume of retail sales rose a seasonally adjusted 2.3%. Market participants expected an increase of only 1.0%, just as per prior three months, but the number released was far ahead of their expectations.The biggest gain in the retail sector of New Zealand economy is recorded in hardware, building and garden supplies (5%), motor vehicle and spare parts (2%), pharmaceutical and other store-based retailers (5%) and food and beverages (3.3%). In conclusion, the pre-summer months in New Zealand were very good in terms of sales, so market participants can't wait for the summer period release, especially after the recent interest rate cut by RBNZ. Will the recent RBNZ actions help to devaluate New Zealand Dollar? It remains the most important question for now.

Let's now take a look at the NZD/USD technical picture in the daily time frame. Clear Doji candle can be seen after the market failed to break out higher above the 0.7323 resistance and it clearly suggests some weakness coming to this market. The price is still trading above the 100 and 200 daily moving average, but in case of any further downside acceleration, the next support can be seen at the level of 0.7054.

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Gold analysis for August 12, 2016

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Since our previous analysis, gold has been trading downwards. The price tested the level of $1,334.64. According to the 30M time frame, I found that strength came in at the bottom. There is a hidden test of supply in a low volume. Anyway, key resistance level today is set at the price of $1,341.08. If the price breaks this level and create a successful test, I expect potential testing of $1.351.08.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,348.50

R2: 1,352.00

R3: 1,358.10

Support levels:

S1: 1,336.00

S2: 1,332.20

S3: 1,327.00

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

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Global macro overview for 12/08/2016

Global macro overview for 12/08/2016:

According to the Labour Department, the weekly number of people filing for unemployment benefits went down to the level of 266k, a 6k less than the expected number, but still in line with the previous week. This data indicate, that initial claims have been below 300k in 75 weeks in a row now and so far the steady downtrend is still present. Moreover, this is the longest streak since 1970 and so far there is no indication of any change in the near future. In conclusion, the weekly initial claims are supporting the good conditions in US labour market. The data-depended FED must be closely monitoring this releases and the chances for another rate hike are steadily rising.

Let's now take a look at the EUR/USD technical picture in the 4H time frame. The golden trend line still provides the dynamic resistance for any bullish rally and as a result of this the market trades in the middle of the trading range in a horizontal trend. The next support is seen at the level of 1.1002 and the next resistance is seen at the level of 1.1189.

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EUR/NZD analysis for August 12, 2016

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Recently, EUR/NZD has been moving upwards. As I expected, the price tested the level of 1.5509 in a high volume. My upward target at the price of 1.5485 has been reached. EUR/NZD is in a strong upward trend today and since we got a selling climax in the background, this may be absorption volume. Watch for buying opportunities. Next upward target is set at the price of 1.5545.

Fibonacci Pivot Points:

Resistance levels:

R1: 1.5500

R2: 1.5575

R3: 1.5695

Support levels:

S1: 1.5270

S2: 1.5200

S3: 1.5080

Trading recommendations for today: Watch for buying opportunities.

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Technical analysis of EUR/JPY for August 12, 2016

General overview for 12/08/2016:

The market is currently trading just below the upper channel line and bulls are trying to break out above the intraday resistance at the level of 113.92.The bottom for the wave b (or ii) had been established at the level of 112.31, so now the wave iii might be developing. To confirm this scenario the market should explode to the upside, targeting the level of 115.76. Otherwise, the current wave progression will be labeled as another corrective structure withing the down trend.

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 USD/CAD for August 12, 2016

General overview for 12/08/2016:

As anticipated yesterday, wave c green is unfolding to the downside and it is quite possible that one more sub-wave will develop before the market bounces higher. The projected target for wave c green is at the level of 1.2935. Please notice that the growing bullish divergence supports the view that reversal is near.

Support/Resistance:

1.3282 - WR1

1.3251 - Wave Y Top

1.3146 - Intraday Resistance

1.3135 - Weekly Pivot

1.3080 - WS1

1.3000 - Intraday Resistance

1.2955 - Intraday Support

1.2935 - WS1

Trading recommendations

The bearish wave progression migth be terminated any time now, so day traders should consider to buy the dips in this market with tight, floating SL. TP is currently open.

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Technical analysis of NZD/USD for August 12, 2016

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Overview:

  • The NZD/USD pair dropped sharply from the level of 0.7324 towards 0.7187. Now, the price is set at 0.7195. On the H4 chart, the resistance is seen at the levels of 0.7244 and 0.7280. Volatility is very high for that the NZD/USD pair is still expected to be moving between 0.7200 and 0.7138 in coming hours. In the short term, we expect the NZD/USD pair to continue to trade in a bearish trend from the new resistance level of 0.7200 to form a bearish channel. Also, it should be noted that major resistance levels are seen at 0.7244 and 0.7280, while immediate support is found at 0.7182. According to the previous events, the pair is likely to move from 0.7182 towards 0.7138. Moreover, the daily strong support is seen at 0.7138. If the NZD/USD pair is able to break out the level of 0.7138, the market will decline further to 0.7039. So, a breakout of that target (0.7138) will move the pair further downwards to 0.7039. Overall, we still prefer the bearish scenario which suggests that the pair will stay below the zone of 0.7200 - 0.7180 today. On the contrary, in case a reversal takes place and the NZD/USD pair breaks through the resistance level of 0.7280, then a stop loss should be placed at 0.7330.
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Technical analysis of USD/CHF for August 12, 2016

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Overview:

  • The USD/CHF pair was trading around the area of 0.9684 - 0.9740 two days ago. Today, the level of 0.9734 represents a daily pivot point in the H4 time frame. The pair has already formed minor support at 0.9684 and the strong support is seen at the level of 0.9621 because it represents the weekly support 1. So, major support is seen at 0.9621, while immediate resistance is found at 0.9785. If the pair is not able to break below the level of 0.9734, the USD/CHF pair may resume it movement to 0.9734to test the first resistance at the price of 0.9785. From this point, we expect the USD/CHF pair to move between the levels of 0.9734 and 0.9734 in coming hours. Equally important, the RSI is still calling for a strong bullish market as the current price is also still above the support levels of 0.9734 and 0.9684. We expect the USD/CHF pair to continue moving in the bullish trend from the support level of 0.9734 towards the target level of 0.9785. If the pair succeeds in passing through the level of 0.9785, the market will indicate the bullish opportunity above the level of 0.9785 in order to reach the second target at 0.9857. Another resistance level is seen at 0.9898. On the other hand, stop loss should always be taken into account, accordingly, it will be of beneficial to set the stop loss below the last bearish wave at the level of 0.9600.
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AUD/NZD profit target reached, remain bullish

Price reached our profit target perfectly yesterday. Today we look to buy on dips at 1.0600 support (Fibonacci retracement + Elliott Wave structure) for a bounce up to 1.0745 major resistance again.

RSI (34) has bounced above our support as expected yesterday and has made a bullish exit of its descending resistance-turned-support line signaling a rise is in progress.

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Buy above 1.0600. Stop loss at 1.0550. Take profit at 1.0745.

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NZD/USD profit target reached. Remain bearish.

Our profit target was reached yesterday. We look to sell on strength below 0.7250 resistance (Fibonacci retracement + graphical resistance) for a drop to 0.7100 support (Fibonacci retracement + graphical swing low).

RSI (34) has reacted beautifully off our resistance as expected signaling a bearish move is in progress.

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Sell below 0.7250. Stop loss at 0.7325. Take profit at 0.7100.

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Silver Technical Analysis for August 12, 2016.

Technical outlook and chart setups:

Silver is seen to be trading at $19.95/20.00 levels for now, after having tested $19.80 levels yesterday. The metal also looks to be consolidating (triangle) and seems to be in its last leg drop as shown here. If the above wave count holds true and silver breaks above the resistance line of consolidation at $20.40/50 levels, the metal would push further towards $21.13 levels going forward. It is recommended to book profits on short positions taken earlier and turn bullish with risk below $19.40 levels. Immediate interim support is seen at $19.45 levels, while resistance is at $20.50 levels respectively. Bulls should be poised to remain in control, till prices stay above $19.45 levels going forward.

Trading recommendations:

Book profits on short positions taken earlier. Turn bullish now, stop at $19.40, target is open.

Good luck!

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Gold Technical Analysis for August 12, 2016.

Technical Outlook and chart setups:

Gold had dropped lower towards $1,335.00 levels yesterday as expected and discussed earlier. The metal looks to be in a triangle consolidation structure as depicted on the 4H chart view here. Looking into the structure here, the metal should turn into bullish territory above $1,355.00 levels provided $1,330.00 levels hold well. The structure might be in its last leg down and looking to turn bullish again. The metal might produce a rally towards $1,350.00 levels from here and a push above $1,355.00 would confirm that bulls are back in control. It is hence recommended to book profits on short positions taken earlier and turn bullish now with risk below $1,330.00 levels. Immediate support is seen at $1,330.00 levels, while resistance is at $1,367.00 levels respectively.

Trading recommendations:

Book profits on short positions and turn bullish now, stop below $1,330.00, target is open.

Good luck!

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Elliott wave analysis of EUR/NZD for August 12 - 2016

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Wave summary:

The move higher from the 1.5187 does look constructive, but we still need a firm break above the resistance-line near 1.5550 to add confidence that wave ii is complete and wave iii higher towards at least 1.6428 is developing.

Short term, we will ideally see minor support at 1.5390 protect the downside for the break above 1.5550 to give the final GO! for the rally higher.

Trading recommendation:

We will buy EUR at 1.5410 or upon a break above 1.5550 with stop placed at 1.5175.

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Elliott wave analysis of EUR/JPY for August 12 - 2016

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Wave summary:

The rally from the 112.67 low does look constructive and call for more upside pressure after a minor correction to 113.32. Once this minor correction is complete a strong rally past minor resistance at 114.17 is expected for a continuation higher to at least 115.02 and possibly even higher towards 116.50.

At this point we will be concerned if the ongoing rally failed to break above 114.17 as that will indicate that the rally of the 112.58 low only is corrective in nature and will call for a new decline to below 112.58.

Trading recommendation:

We remain long from 113.27 and will move our stop higher to 112.60. If you are not long EUR yet, then buy near 113.32 or upon a break above 113.80 and use the same stop at 112.60.

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Technical analysis of EUR/USD for Aug 12, 2016

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When the European market opens, some economic data will be released such as Industrial Production m/m, Flash GDP q/q, Italian Prelim GDP q/q, French Prelim Non-Farm Payrolls q/q, German WPI m/m, German Final CPI m/m, German Prelim GDP q/q. The US will release the economic data too such as Prelim UoM Inflation Expectations, Business Inventories m/m, Prelim UoM Consumer Sentiment, Core PPI m/m, Retail Sales m/m, PPI m/m, Core Retail Sales m/m, so amid the reports, EUR/USD will move in a low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Breakout BUY Level: 1.1190.

Strong Resistance:1.1184.

Original Resistance: 1.1173.

Inner Sell Area: 1.1162.

Target Inner Area: 1.1136.

Inner Buy Area: 1.1110.

Original Support: 1.1099.

Strong Support: 1.1088.

Breakout SELL Level: 1.1082.

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 12, 2016

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In Asia, today Japan will not release any economic data but the US will release some economic data such as Prelim UoM Inflation Expectations, Business Inventories m/m, Prelim UoM Consumer Sentiment, Core PPI m/m, Retail Sales m/m, PPI m/m, Core Retail Sales m/m.So there is a probability the USD/JPY will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Resistance. 3: 102.63.

Resistance. 2: 102.43.

Resistance. 1: 102.23.

Support. 1: 101.98.

Support. 2: 101.78.

Support. 3: 101.58.

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 12, 2016

USDX is still hovering around the 200 SMA and now it's looking to re-test the support level of 95.51. If the Index achieves in break it, then we can expect a bearish continuation towards the 95.19 level on a short-term basis. By the way, the index could attempt a breakout above the 95.93 level, in a move that could open the doors to test the 96.32 level.

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H1 chart's resistance levels: 95.93 / 96.32

H1 chart's support levels: 95.51 / 95.19

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 95.19 and stop loss is at 95.83.

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Daily analysis of GBP/USD for August 12, 2016

The pair is looking to extend the decline towards the 1.2894 price zone, as the weakness is still alive and keep pushing lower the Cable below the 200 SMA at H1 chart. A consolidation below the 1.3000 level will mean a bearish trend that could last for a mid-term basis. In another scenario, a retracement at current stage could send the GBP/USD pair to test the 1.3085 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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Daily analysis of major pairs for August 12, 2016

EUR/USD: The EUR/USD is now in a bullish mode, at least, in the short-term. There is a Bullish Confirmation Pattern in the 4-hour chart and price is expected to go upwards further, reaching the resistance lines at 1.1200 and 1.1250. The support lines at 1.1150 and 1.1100 should check any possible pullbacks along the way.

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USD/CHF: As it was mentioned yesterday, USD/CHF has gone further south and that has led to a bearish signal in the market. Price is below the resistance level at 0.9800, going towards the support level at 0.9700. Some fundamental figures are expected today and they could have impact on the market.

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GBP/USD: This market went further downwards on August 11, 2016, while the Bearish Confirmation Pattern in the 4-hour chart is becoming clearer and clearer. The bearish outlook on the market is also supported by the daily chart, and thus, the next targets for bears are located at the accumulation territories at 1.2900 and 1.2850.

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USD/JPY: Bulls are now making some effort to push price upwards – in the context of a downtrend. However, this kind of effort is another opportunity to sell short at cheaper prices, and this expectation would be rational as long as the price does not go above the supply levels at 103.00 and 103.50.

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EUR/JPY: The outlook and movement on this cross is quite similar to that of the USD/JPY. Any rallies that occur here should be seen as opportunities to sell short, for price might eventually reach the demand zones at 112.50, 112.00 and 111.50. The bearish trend should be respected until there is a clear change in the market (until it is clear that bulls are in control).

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Technical analysis of USDX for August 11, 2016

The Dollar index has reversed lower as we expected from the 96.30-96.50 area. Price however holds above short-term support at 95.60 as short-term trend is neutral with no clear direction. 96.50 and 95.50 are the key levels to watch out for.

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Blue line - trend line resistance

The Dollar index is trading inside the Kumo (cloud) and below the trend line resistance. Short-term resistance is at 96.30-96.50. A break above this level will open the way for a move towards 97.50 at least if not higher. Support is at 95.50 and a break below it will open the way for a move towards 95 and most probably lower.

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The weekly candle remains below the weekly Kumo but a slight long lower tail suggests that there are still buyers supporting price. The weekly tenkan- and kijun-sen indicators remain below price suggesting that the bullish short-term trend is supported. Bears need to break below 95.30 on a weekly close in order for the downside to accelerate.The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of Gold for August 11, 2016

Gold price has bounced as we expected but the bounce is not strong enough yet for a clear break above $1,350. This is needed for a new high to be achieved otherwise bulls will be in danger of losing even the critical support of $1,300.

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Blue line - resistance

Gold price bounced off the 61.8% Fibonacci retracement as I anticipated but price has found the $1,350 resistance too strong to make a clear break above it and close for a day. Price has broken back below the 4 hour cloud putting bulls in danger. Short-term support is at $1,330. Resistance at $1,350-55.

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Blue lines - medium -term bullish channel

The weekly candle is forming a long upper tail which is a sign of increased pressure from sellers and the inability of buyers to push higher. However price remains above the weekly tenkan-sen (red line indicator) and as long as we are above that level we should expect more upside. A weekly close below $1,310 we should expect a move at least towards the lower channel boundary near $1,280.

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