USD/CAD intraday technical levels and trading recommendations for August 19, 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 a 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) opens the way towards the price level of 1.3300 (50% Fibonacci level) where price action should be watched for bearish rejection.

However, significant bearish rejection was expressed around 1.3190 before further bullish advance towards 1.3300 could take place. This was followed by a daily breakdown of 1.3000.

That's why, conservative traders should consider the current daily fixation below 1.3000 as a valid SELL entry. Initial T/P levels should be located at 1.2800 and 1.2700.

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NZD/USD Intraday technical levels and trading recommendations for August 19, 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 set as a daily candlestick closure above 0.7300.

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 19, 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 seen on the depicted charts.

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.

On the other hand, the price zone of 1.3845-1.4040 now constitutes a recent supply zone to be watched for new SELL entries if any bullish pullback extends above 1.3550.

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Intraday technical levels and trading recommendations for EUR/USD for August 19, 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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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 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 was executed as expected.

Price action should be watched around the price zone of 1.1250 (Supply Level 1) for a valid SELL entry if enough bearish rejection is expressed. However, temporary bullish breakout is being expressed above 1.1250.

Note that bullish persistence above 1.1250 allows further bullish advance towards 1.1400 (Supply Level 2) where a better SELL entry can be offered.

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Gold analysis for August 19, 2016

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Since our previous analysis, gold has been trading downwards. The price tested the level of $1,344.48 in an ultra high volume. According to the 1H time frame, I found that Gold is in a bearish corrective phase. I have placed Fibonacci expansion levels to find a potential end of the bearish corrective phase. I got Fibonacci expansion 100% at the price of $1.343.00 and Fibonacci expansion 161.8% at the price of $1,336.75. There is a potential stopping volume according to the 1H time frame. So, be careful when selling Gold at this stage and wait until the bearish corrective phase is complete and then try to build buying positions. The first upward target is set at the price of $1,353.00.

Hourly Fibonacci pivot points:

Resistance levels:

R1: 1,351.10

R2: 1,351.60

R3: 1,352.30

Support levels:

S1: 1,349.60

S2: 1,349.15

S3: 1,348.40

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

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EUR/NZD analysis for August 19, 2016

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Recently, EUR/NZD has been moving downwards. The price tested the level of 1.5565 in a high volume. According to the 1H time frame, I found that EUR/NZD is in a bearish corrective phase. I have placed Fibonacci expansion to find potential end of ABC corrective phase. I got Fibonacci expansion 61/8% at the price of 1.5558 and Fibonacci expansion 100% at the price of 1.5522. Observing the market profile, I found the point of control from yesterday's profile at the price of 1.5550. Selling positions are preferable since EUR/NZD is in a bearish corrective phase.

Fibonacci Pivot Points:

Resistance levels:

R1: 1.5590

R2: 1.5615

R3: 1.5650

Support levels:

S1: 1.5510

S2: 1.5485

S3: 1.5445

Trading recommendations for today: Watch for selling opportunities.

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Global macro overview for 19/08/2016

Global macro overview for 19/08/2016:

About a month ago, Unemployment Claims in the US hit the 43-year low of 248,000 Americans filing for unemployment benefits in mid-April. Since then, figures from the US jobs market have been slowly increasing. According to the Department of Labor, claims have dropped last week to the level of 262,000 (which was the lower number than market expectations of 269,000 and lower than the last week number of 266, 000). In conclusion, last week was a 76th consecutive week when unemployment claims were recorded below the 300,000 level. This is rather good news for the US jobs market. Besides, as we know the recent NFP and ADP indicators posted very good figures as well. The question remains, whether the FED policy makers will act towards rising the interest rate hike in September or not.

Let's now take a look at the US Dollar index technical picture in the daily time frame. The higher highs and higher lows sequence since the bottom at the level of 91.93 is still in play and only a sustained break out below the level of 93.02 would change the outlook from bullish to bearish. So far bears have managed to push the price lower towards the 100% Fibo extension at the level of 93.87, but a rebound and trend continuation is expected after this level is hit.

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Global macro overview for 19/08/2016

Global macro overview for 19/08/2016:

According to UK Office for National Statistics, the retail sales data for July were better than the market expectations. The volume of sales increased 1.4% on a monthly seasonally adjusted basis in July, whereas market participants had expected only a 0.1% rise after -0.9% decline in June. Moreover, on a yearly basis, retail sales jumped 5.9% in the same month, following June's 4.3% rise and surpassing the 4.1% market forecast. The data covered four-week period from July 3 to 30 after the United Kingdom voted to leave the European Union. In conclusion, the UK released the solid data after the Brexit vote, but did they really appear due to enormous economic improvement after Brexit or are they a simple result of a dramatic weakening of the pound? The answer seems to be obvious here.

Let's now take a look at the EUR/GBP technical picture in the daily time frame. The consecutive series of higher highs and higher lows is still in place, but the recent bearish divergence between the price and the momentum oscillator indicates a corrective move to the downside. The next support is seen at the level of 0.8341.

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Technical analysis of USD/CAD for August 19, 2016

General overview for 19/08/2016:

The new low had been made at the level of 1.2763 and this could be a final bottom for the wave v of wave c green. Moreover, if the count is correct and this would be the low of the bigger time frame cycle labeled as wave XX brown, then more upside pressure should be visible on the chart. The key to the upside is still the golden trend line dynamic resistance at the level of 1.2900, so only a clear, impulsive break out above it would confirm that bulls are regaining the control over this market.

Support/Resistant:

1.2763 - Intraday Support

1.2822 - WS1

1.2894 - Intraday Resistance

1.3006 - Weekly Pivot

1.3091 - WR1

Trading recommendations:

Currently day traders should refrain from trading and wait for the last cycle down to complete before entering any transaction.

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Technical analysis of EUR/JPY for August 19, 2016

General overview for 19/08/2016:

The pair is still trading around a weekly pivot at the level of 113.17. Neither bulls nor bears have managed to break out above the intraday resistance at the level of 114.01. Only a sustained break out above this level would mark the bottom of the wave ii at the level of 112.35 and make the impulsive rally in wave iii possible. The invalidation level for this scenario is still at the intraday support at the level of 112.31, nevertheless the bullish divergence between the price and momentum oscillator indicates a possible upside rebound.

Support/Resistant:

112.31 - Intraday Support

112.42 - WS1

113.17 - Weekly Pivot

113.65 - WR1

114.02 - Intraday Resistance

114.48 - WR2

114.96 - WR3

Trading recommendations:

Day traders should consider opening buy orders from current price levels with SL below the level of 112.30 and TP at the level of 114.00.

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Technical analysis of NZD/USD for August 19, 2016

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Overview:

  • The NZD/USD pair faces resistance at 0.7288, while strong resistance is seen at 0.7313. Support is found at 0.7245 and 0.7214 levels. The NZD/USD pair will continue rising from the level of 0.7245 in the long term. It should be noted that the support is established at the level of 0.7245 which represents the daily pivot point on the H1 chart. The price is likely to form a double bottom in the same time frame. Accordingly, the NZD/USD pair is showing signs of strength following a breakout of the highest level of 0.7245. So, buy above the level of 0.7245 with the first target at 0.7288 in order to test the daily resistance 1. The pair will probably go up because the uptrend is still strong. Consequently, the market is likely to show signs of a bullish trend. So, it will be good to buy above the level of 0.7288 with the second target at 0.7313. At the same time, the breakdown of 0.7313 will allow the pair to go further up to the levels of 0.7342. The level of 0.7342 is a good place to take profits. Moreover, the RSI is still signaling that the trend is upward as it remains strong above the moving average (100). On the other hand, in case a reversal takes place and the NZD/USD pair breaks through the support level of 0.7245, a further decline to 0.7184 can occur. It would indicate a bearish market.
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Technical analysis of USD/CHF for August 19, 2016

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Overview:

  • The USD/CHF pair was trading below the area of 0.9609 and 0.9654 this week. The pair has already formed the minor resistance at 0.9609 and the strong resistance is seen at the level of 0.9654 as it represents the weekly resistance 1. So, the major resistance is seen at 0.9654, while immediate support is found at 0.9537. Today, the level of 0.9537 represents a daily support in the H1 time frame. If the pair breaks below the first support of 0.9537, the USD/CHF pair may resume its movement to 0.9500 to test the weekly support 1. From this point, we expect the USD/CHF pair to move between the levels of 0.9609 and 0.9500. Equally important, the RSI is still calling for a strong bearish market and the current price is below the moving average 100. As a result, sell below the level of 0.9605 with targets at 0.9537 in order to form a double bottom. The market will move downwards continuing the development of the bearish trend to the levels of 0.9500 and 0.9466. However, stop loss should always be taken into account; accordingly, it will be beneficial to set the stop loss above the last bullish wave at the level of 0.9654.
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Technical analysis of GBP/JPY for August 19, 2016

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GBP/JPY is expected to trade with the upside movement. The pair is trading above the rising 50-period moving average which is playing a support role and maintains the positive outlook. The relative strength index is supported by a rising trend line since August 17 and is above its neutrality area at 50. A support base at 130.90 has been formed and should limit the downside potential. As long as 130.90 holds on the downside, look for a further rise toward 132.55 and 133.20 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 132.55 and the second one, at 133.20. In the alternative scenario, short positions are recommended with the first target at 130.00 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 129.20. The pivot point is at 130.90.

Resistance levels: 132.55, 133.20 , 134.60

Support levels: 130.00, 129.20, 128.60

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Technical analysis of USD/JPY for August 19, 2016

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USD/JPY is under pressure. The pair broke above its 20-period and 50-period moving averages and is posting some rebound. The relative strength index is around its neutrality area at 50. Nevertheless, 100.70 is acting as a key resistance level, which should limit the upside potential. Even though a continuation of a technical rebound cannot be ruled out, its extent should be limited. On Thursday, U.S. stocks posted modest gains for the second consecutive day. Dow Jones Industrial Average increased 23 points (0.1%) to 18597, S&P 500 added 4 points (0.2%) to 2187, and Nasdaq Composite was up 11 points (0.2%) to 5240. U.S. government bonds prices rose as the benchmark 10-year U.S. Treasury yield eased further to 1.536% from 1.558% Wednesday. Gold stepped 0.3% higher to $1,351 an ounce extending its winning streak to a fourth session, and silver gained 0.4% to $19.73 an ounce. As long as 100.70 is resistance, the pair is likely to return to 99.50. A break below this level would open the way to further weakness toward the next support at 98.95.

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 99.50. A break below this target will move the pair further downwards to 98.95. The pivot point stands at 100.70. 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 101.20 and the second one at 101.75.

Resistance levels: 101.20, 101.75, 102.30

Support levels: 99.50, 98.95, 98.25

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Technical analysis of USD/CHF for August 19, 2016

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USD/CHF is expected to trade mainly with a downward bias. The pair recorded a succession of lower tops and lower bottoms since August 17, which confirms a bearish outlook. Both the descending 20-period and 50-period moving averages are playing resistance roles, which should limit the upside attempts. The relative strength index is below its neutrality area at 50. U.S. government bonds prices rose as the benchmark 10-year U.S. Treasury yield eased further to 1.536% from 1.558% Wednesday. Gold stepped 0.3% higher to $1,351 an ounce extending its winning streak to a fourth session, and silver gained 0.4% to $19.73 an ounce.

On the forex front, the U.S. dollar's downfall accelerated as the outlook for further interest rate increases remains uncertain.

Until 0.9595 is not surpassed, the pair is likely to drop toward 0.9530 and even 0.9500 in extension.

Resistance levels: 0.9645, 0.9680, 0.9705

Support levels: 0.9535, 0.9500, 0.9475

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Technical analysis of NZD/USD for August 19, 2016

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NZD/USD is expected to trade in a higher range as the bias remains bullish. The pair broke below 20-period and 50-period moving averages and the relative strength index is below its neutrality area at 50. Nevertheless, a support base at 0.7230 has been formed and should limit the downside attempts. Even though a continuation of the consolidation cannot be ruled out, its extent should be limited. As long as 0.7230 is not broken, we are still positive with an upside target at 0.7310 (Aug 17 & 18 top). A break above this level would open the way to a further upside move toward the next resistance at 0.7340.

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 0.7300 and the second one, at 0.7340. In the alternative scenario, short positions are recommended with the first target at 0.7200 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 0.7170. The pivot point is at 0.7230.

Resistance levels: 0.7300, 0.7340, 0.7352

Support levels: 0.7200, 0.7170, 0.7145

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Elliott wave analysis of EUR/NZD for August 19 - 2016

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Wave summary:

The minor resistance-line from 1.5839 and the resistance-line from 1.6931 has clearly been broken as expected. We are looking for upside acceleration towards 1.6075 and 1.6428 as the first upside targets, but longer term, we expect this new impulsive rally to take us all the way to 1.7273 and above here.

Support is now seen at 1.5448 which ideally will protect the downside for the expected upside acceleration, but if this support is broken back-up support is seen at 1.5366, which needs to protect the downside.

Trading recommendation:

We are long EUR from 1.5410 and will move our stop higher to 1.5440. If you are not long EUR yet, then buy 1.5535 or upon a break above 1.5649 and use the same stop at 1.5440.

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Elliott wave analysis of EUR/JPY for August 19 - 2016

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Wave summary:

The resistance-line from 118.47 has clearly been broken, but as no upside acceleration has been seen, we stay only cautious bullish and wait for a clear break above resistance at 114.03 that should release the energy for upside acceleration towards 118.47 and 122.00 as the next important upside targets.

That said, we have to be aware of the possibility of renewed downside pressure towards 112.28 and maybe even closer to 110.79, but not below here, as long as resistance at 114.03 holds firm.

Trading recommendation:

We will only buy in case of a break above 114.03 with stop placed at 112.20.

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EURJPY Technical Analysis for August 19, 2016.

Technical outlook and chart setups:

The EUR/JPY pair is seen to be trading at $113.75 levels at this moment, might be looking to push higher towards 114.00/50 levels, before reversing lower again. The wave structure indicates that EUR/JPY has formed major top at 121.90 levels earlier, and has also carved out a lower high at 118.50 levels as seen here. Furthermore, the pair has reversed lower from fibonacci 0.618 resistance levels of the drop between 122.90/122.00 through 109.00 levels respectively. At this moment the pair looks to be consolidating into wave 4, within its 3rd wave drop from 118.50 levels. It is hence recommended to remain flat for now and look to sell at higher levels around 114.00/50 levels. Immediate resistance is seen at 115.00 levels, while support is at 110.50 levels respectively.

Trading recommendations:

Remain flat for now. Look to sell around 114.00/50 levels, stop at 116.00, target below 112.00

Good luck!

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Silver Technical Analysis for August 19, 2016.

Technical outlook and chart setups:

Silver is seen to be trading at $19.63 levels at this moment, looking to continue pushing higher towards $20.50/80 levels at least. The wave structure reveals that Silver has been consolidating in an expended triangle structure, as seen on chart view here. Furthermore, please also note that the metal looks to have completed 5 waves within the triangle, indicating that it is complete. If this holds true, the metal should resume its last leg rally (wave 5) towards $20.80/21.00 levels going forward. The metal is expected to remain in control of bulls, till prices stay above $19.20/30 levels. It is hence recommended to remain long now, with stop below $19.25. Immediate resistance is seen at $20.50/80 levels, while support is at $19.25 levels respectively.

Trading recommendations:

Remain short for now, stop below $19.25; target is $20.50/80.

Good luck!

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Gold Technical Analysis for August 19, 2016.

Technical outlook and chart setups:

Gold is seen to be trading at $1,347.00 levels at the moment, looking to stage a rally from here towards $1,368.00 levels at least. Looking into the wave structure, the metal seems to have terminated its wave 4 triangle consolidation at $1,336.00 levels earlier. The metal should remain in control of bulls till prices stay above $1,336.00 and broadly above $1,330.00 levels respectively. It is hence recommended to remain long now, with risk below $1,330.00 levels. Immediate resistance is seen at $1,3555.00/56.00 levels, while support is seen at $1,330.00 levels. Please note that the metal looks to be into its last leg (wave 5) rally and it is expected to reverse lower from close to $1,380.00/90.00 levels going forward.

Trading recommendations:

Remain long now, stop below $1,330.00, target $1,368.00 and $1,390.00

Good luck!

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Technical analysis of EUR/USD for Aug 19, 2016

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When the European market opens, German PPI m/m will be released. The US will not release any economic data. So amid this data report, EUR/USD will move in a low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Breakout BUY Level: 1.1400.

Strong Resistance:1.1393.

Original Resistance: 1.1382.

Inner Sell Area: 1.1371.

Target Inner Area: 1.1344.

Inner Buy Area: 1.1317.

Original Support: 1.1306.

Strong Support: 1.1295.

Breakout SELL Level: 1.1288.

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 19, 2016

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In Asia, Japan will release the All Industries Activity m/m but today the US will not release any economic data.So there is a probability the USD/JPY will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Resistance. 3: 100.83.

Resistance. 2: 100.63.

Resistance. 1: 100.43.

Support. 1: 100.19.

Support. 2: 100.00.

Support. 3: 99.80.

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 19, 2016

USDX keeps weakening across the board and now it's finding support at the 94.07 level, where a rebound should happen. The main scenario is calling for a corrective move, as the decline has been showing very mature and lower time frames are showing some signs of an oversold market. MACD indicator is still in the negative territory.

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H1 chart's resistance levels: 94.32 / 94.65

H1 chart's support levels: 94.07 / 93.49

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 94.07, take profit is at 93.49 and stop loss is at 94.65.

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

Daily analysis of GBP/USD for August 19, 2016

The pair is performing a consolidation above the 200 SMA at H1 chart. Currently, a resistance can be found at the 1.3170 level, where the bulls are attempting to break higher towards the 1.3277 level. However, a pullback should happen to correct the overall trend. MACD indicator is into the negative territory.

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H1 chart's resistance levels: 1.3175 / 1.3277

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 1.3175, take profit is at 1.3277 and stop loss is at 1.3064.

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Daily analysis of major pairs for August 19, 2016

EUR/USD: This pair has moved upwards by 200 pips this week, with a clean Bullish Confirmation Pattern in the chart. The EMA 11 is above the EMA 56, and the Williams' % Range period 20 often hovers around the overbought region. There is a strong bullish signal in the market and price is supposed to continue its journey upwards.

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USD/CHF: This pair has moved downwards by 210 pips this week, with a clean Bearish Confirmation Pattern in the chart. The EMA 11 is below the EMA 56, and the Williams' % Range period 20 often hovers around the oversold region. There is a strong bearish signal in the market and price is supposed to continue its journey downwards.

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GBP/USD: There is now a bullish signal on the GBP/USD, for price has moved upwards 290 pips since Tuesday. The market is now above the accumulation territory at 1.3150, going towards the distribution territories at 1.3200, 1.3250 and 1.3300. These distribution territories would be reached today or next week.

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USD/JPY: This is a bear market in the short term. The EMA 11 is below the EMA 56 and the RSI period 14 is below the level 50. All bulls' effort in the market is expected to be scuttled. Then bears might be able to push price towards the demand levels at 99.50 and 99.00; though that would require strong selling pressure.

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EUR/JPY: This cross consolidated last week, and it has consolidated so far this week. Further consolidation for a few more days would force the current bearish bias into a neutral territory. Today, or most probably, next week, would determine the next direction of the cross.

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Technical analysis of GBP/USD for August 19, 2016

I warned the GBP/USD bears that a bounce towards 1.32 was imminent after a breakout of the bullish wedge formation that started on August 3rd. The price has broken out and above the wedge and has reached the 61.8% Fibonacci retracement of the decline.

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The blue lines - bullish wedge

The price has reached the 61.8% Fibonacci retracement of the decline which is an important juncture point. A bearish reversal may start from this area. Next resistance is the 78.6% Fibonacci retracement. Support is at 1.3070.

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A break above 1.3260-1.3350 could push the price towards 1.35-1.36 and the weekly cloud resistance area. This is a sell area, and bears are not going to give up easily. I believe the US dollar will strengthen against the pound again, and we will see another round of selling that will eventually push the pair towards 1.25.The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of USD/CAD for August 19, 2016

As I noted in my last analysis of USD/CAD, there was a real danger that another false breakout above 1.31 had happened and a strong bearish reversal was at hand. With the price below 1.29 and below the long-term triangle, things do not look good for this pair.

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The red line - resistance

The black line - support

USD/CAD has broken below the lower triangle boundary and below the Ichimoku cloud on a daily basis. This is a bearish sign as the price could have formed a bearish flag that is now broken. The long-term implications for this pair are bearish targeting below 1.20.

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On a weekly basis, the price has made a weekly rejection at the cloud resistance and has broken through a bearish pennant formation. The 100% extension of the decline relative to the first leg of the decline targets 1.11. More moderate target is at 1.19 and 1.14.

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Technical analysis of USDX for August 19, 2016

As I mentioned in my last analysis, the Dollar index was in danger of a deeper correction towards 95 and lower, and this is what finally happened after the resistance level of 96.50 had been rejected.

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The green line - resistance

The blue line - support

The Dollar index is testing very important trend support at 94.15. The price is also challenging cloud support. Short-term resistance is at 95.10. A bounce towards 96.50 will be possible if the price forms a triangle pattern.

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The black line - broken resistance

The Dollar index is approaching closely the broken black trend line resistance. Is this a back test of the broken trend line? The cloud rejection at 96.50 was an important bearish signal, and the same was the break below the weekly tenkan- and kijun-sen indicators. Bulls will either step in now and save the index, or an even deeper correction targeting levels below 92 should be expected.

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Technical analysis of Gold for August 19, 2016

Gold price is trapped inside a long-term triangle pattern that will either give the price a push higher towards $1,430 or a decline towards $1,280. Trend is neutral, and traders should be patient and sell near resistance or buy near support.

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Short-term resistance is at $1,360 and support at $1,340. Traders are recommended to buy above the support when the price gets near to it, or sell when it nears the resistance. Stop reverse orders should also be used in case we finally see a breakout.

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The black lines - triangle pattern

The blue lines - price projection

As I mentioned above, the gold price is consolidating inside a triangle pattern. Price will soon give a buy or sell signal according to the direction of a breakout. Safest strategy is to wait for a break and then open a position targeting either $1,430 or $1,280.

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