Gold analysis for August 23, 2016

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Since our previous analysis, Gold has been trading sideways at the price of $1,342.00. According to the 4H time frame, I found trading range between the price of $1,330.00 (support) and the price of $1,357.60 (resistance). The price action suggesting that buyers protected the support (pin bars from the support). So, I am expecting testing of resistance at the price of $1,357.00. Be careful when selling and watch for potential buying opportunities.

Hourly Fibonacci pivot points:

Resistance levels:

R1: 1,348.00

R2: 1,348.70

R3: 1,349.90

Support levels:

S1: 1,345.80

S2: 1,345.00

S3: 1,344.00

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

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USD/CAD intraday technical levels and trading recommendations for August 23, 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 1.2830 on August 18.

Conservative traders should consider the current bullish pullback towards 1.2970-1.3000 (61.8% Fibonacci level) as a valid SELL entry. S/L should be set as a daily candlestick closure above 1.3000.

On the other hand, note that 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 a better SELL entry with a lower risk/reward ratio.

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EUR/NZD analysis for August 23, 2016

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Recently, EUR/NZD has been moving downwards. As I expected, the price tested the level of 1.5438 in a high volume. My first downward target at the price of 1.5490 has been reached. According to the 4H time frame I am expecting further downward continuation due to strong weakness in the background. Next downward station is set at the price of 1.5400. If the price breaks the level of 1.5400 in a high volume, we may see potential testing of 1.5235. Be careful when buying and watch for selling opportunities on the pullbacks.

Fibonacci Pivot Points:

Resistance levels

R1: 1.5625

R2: 1.5650

R3: 1.5695

Support levels:

S1: 1.5535

S2: 1.5510

S3: 1.5465

Trading recommendations for today: Watch for selling opportunities.

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NZD/USD Intraday technical levels and trading recommendations for August 23, 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.

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 23, 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 the 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 23, 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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Technical analysis of USD/JPY for August 23, 2016

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USD/JPY is under pressure. The technical picture of USD/JPY is bearish. The pair is trading below its 50-period moving average, which should limit the upside momentum. The declining 20-period moving average maintains the downside bias. The relative strength index is below its neutrality area at 50 and lacks upward momentum. On Monday, U.S. stocks were little changed at close as losses in energy shares caused by lower oil prices were offset by gains in health-care firms. The Dow Jones Industrial Average declined 23 points (0.1%) to 18529, the S&P 500 stepped down 1 point to 2180, while the Nasdaq Composite gained 6 points (0.1%) to 5236. The U.S. dollar was largely stable as Federal Reserve Vice Chairman Stanley Fischer had earlier commented that the Fed was close to achieving its employment and inflation targets. However, traders should be holding their bets on currencies as they await Fed Chairwoman Janet Yellen's Friday speech at the monetary-policy symposium in Jackson Hole, Wyoming. U.S. government bonds rebounded as investors moved in to buy on Friday's price dip. The benchmark 10-year U.S. Treasury yield dropped to 1.541% from 1.580% in the previous session. Meanwhile, precious metals came under pressure amid a stronger U.S. dollar.

As long as 100.65 holds on the upside, the pair is likely to return to 99.990. A break below this level would open the way to further weakness toward the next support at 99.60.

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 99.90. A break below this target will move the pair further downwards to 99.60. The pivot point stands at 100.65. 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 100.90 and the second one at 101.20.

Resistance levels: 100.90, 101.20, 101.75

Support levels: 99.90, 99.60, 98.95

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Technical analysis of NZD/USD for August 23, 2016

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Overview:

  • The NZD/USD pair faces resistance at 0.7342, while strong resistance is seen at 0.7400. Support is found at 0.7288 and 0.7245 levels. Today, the NZD/USD pair continues to move downwards from 0.7342 level. The pair could fall from 0.7342 level to the first support around 0.7288. In consequence, if the NZD/USD pair will break support at 0.7288, this level will turn into resistance today. In the H1 time frame, the 0.7288 level is expected to act as minor resistance. Hence, we expect the NZD/USD pair to continue moving in the bearish trend from 0.7288 level towards the target at 0.7342. In the long term, if the pair succeeds in passing through 0.7342 level , the market will indicate the bearish opportunity below 0.7342 level in order to reach the second target at 0.7245. However, the 0.7342-0.7400 mark remains a significant support zone. Thus, the trend will probably rebound again from 0.7400 level as long as this level is not breached. in overall, we still prefer the bullish scenario below the area of 0.7400.
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Technical analysis of USD/CHF for August 23, 2016

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Overview:

  • The USD/CHF pair faced resistance at the level of 0.9684, while minor resistance is seen at 0.9622. Support is found at the levels of 0.9574 and 0.9521. Pivot point has already been set at the level of 0.9622. Equally important, the USD/CHF pair is still moving around the key level at 0.6750, which represents a daily pivot in the H1 time frame at the moment. Yesterday, the USD/CHF pair continued moving upwards from the level of 0.9574. The pair rose to the top around 0.9574 from the level of 0.9622 (coincides with the ratio of 23.6% Fibonacci retracement). In consequence, the USD/CHF pair broke resistance, which turned into strong support at the level of 0.9574. The level of 0.9574 is expected to act as the major support today. We expect the USD/CHF pair to continue moving in the bullish trend towards the target levels of 0.9684 and 0.9735. On the downtrend: If the pair fails to pass through the level of 0.9735, the market will indicate a bearish opportunity below the level of 0.9735. So, the market will decline further to 0.9622 and 0.9574 to return to the daily support. Moreover, a breakout of that target will move the pair further downwards to 0.9521 in order to form the double bottom. On the other hand, if a breakout happens at the support level of 0.9521, then this scenario may be invalidated.
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Technical analysis of USD/CHF for August 23, 2016

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USD/CHF is expected to trade with a bullish bias above 0.9590. The pair is consolidating after it failed to break above the resistance at 0.9650. Nevertheless, the pair stands firmly above its horizontal support at 0.9590 which should limit the downside attempts. In addition, the relative strength index is above its neutrality area at 50 and lacks downward momentum. The U.S. dollar was largely stable as Federal Reserve Vice Chairman Stanley Fischer had earlier commented that the Fed was close to achieving its employment and inflation targets. However, traders should be holding their bets on currencies as they are anticipating Fed Chair Janet Yellen's Friday speech at the monetary-policy symposium in Jackson Hole, Wyoming.

U.S. government bonds rebounded as investors rushed to buy on Friday's price dip. The benchmark 10-year U.S. Treasury yield dropped to 1.541% from 1.580% earlier.

As long as 0.9590 holds as support, look for a technical rebound toward 0.9650. A break above this level would open the way to further upside toward the next resistance at 0.9680.

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: 0.9650, 0.9680, 0.9705

Support levels: 0.9565, 0.9535, 0.9500

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Technical analysis of NZD/USD for August 23, 2016

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NZD/USD is expected to trade in a higher range. The pair recorded a succession of higher tops and higher bottoms since August 22, which confirms a bullish view. The rising 50-period moving average is playing a support role, which should limit the downside potential. The relative strength index is bullish above its neutrality area at 50 and lacks downward momentum. As long as 0.7255 holds on the downside, look for further rise to 0.7355 and 0.7380 in extension.

The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. Therefore, long positions are recommended with the first target at 0.7355 and the second one, at 0.7380. In the alternative scenario, short positions are recommended with the first target at 0.7235 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 0.7205. The pivot point is at 0.7255.

Resistance levels: 0.7355, 0.7380, 0.7352

Support levels: 0.7235, 0.7205, 0.7170

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Technical analysis of GBP/JPY for August 23, 2016

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GBP/JPY is expected to extend further gains. The pair broke above its 50-period moving average and is holding on the upside. The rising 20-period and 50-period moving averages maintain the upside bias. A strong support base has formed at 131.25 and the downward potential should be limited by this level. The relative strength index is above its neutrality area at 50. As long as 131.25 is holding as support, call for further advance to 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 130.90 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 130.25. The pivot point is at 131.25.

Resistance levels: 132.55, 133.20 , 134.60

Support levels: 130.90, 130.25, 129.20

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Global macro overview for 23/08/2016

Global macro overview for 23/08/2016:

The set of flash PMI Services and Manufacturing data from the eurozone was released this morning and it was a mixed bag of data. In Germany, the main powerhorse of the eurozone, the PMI Services data was worse than expected (53.5 vs. 54.4 and 54.4 previously), together with PMI Manufacturing data (53.6 vs. 53.7 and 53.8 previously) and overall PMI Composite (54.4 vs. 55.1 and 55.2 previously). Since the March 2016, the German PMI Composite index had been steadily rising, but the recent reading is signaling a weaker pace of expansion. According to the Markit report, the main reason for the drop was attributed to the service sector, where activity rose to the smallest degree in 15 months. In conclusion, the overall scores of flash PMI data for the whole Eurozone were slightly better than expected (but nothing extraordinary anyway), there is still a chance, that lower than expected figures form Germany is the seasonal correction towards the average during the summer months and not the beginning of something worse.

Let's now take a look at the EUR/USD technical picture in the 4H time frame after the data was published. The 100% Fibo extension of the previous leg up was violated, but the market did not make another higher high and instead of that is still trading below the intraday resistance at the level of 1.1363. The growing bearish divergence suggests more downward strength and any violation of the level of 1.1266 will be the first confirmation of increasing bearish pressure.

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Global macro overview for 23/08/2016

Global macro overview for 23/08/2016:

Interesting remarks from former Bank of Japan board member Sayuri Shirai hit the mass media and the financial news companies. The remarks relate to the recent BoJ stimulus, that is heading in the right direction, according to Shirai. She argues, that due to stagnant income Japanese households are expected to spend less, but the reason for this is the inflationary mindset, but not negative rates. Moreover, she said she is not sure how much stimulus will help, but BoJ should keep 2% target as a long-term goal, and try to achieve 1% in the short term. In conclusion, a quite hawkish point of view regarding recent BoJ stimulus increase from the former BoJ board member is worthy of consideration.

Let's now take a look at the GBP/JPY technical picture in the daily time frame. Bears recently managed to test the recent low in this market at the level of 128.75, but since then no real impulsive trend reversal can be seen. Instead of that the market is still trading below all moving averages and below the recent technical resistance at the level of 133.22. The outlook remains bearish to horizontal.

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Technical analysis of EUR/JPY for August 23, 2016

General overview for 23/08/2016:

Not much has changed since yesterday as the market is still trading in low volatility mode during the late August. The horizontal corrective cycle is still in progress, but there is a possibility that the bottom for the wave ii has been established at the level of 112.40. The wave progression looks choppy and full of whipsaws and the most important resistance at the level of 114.02 still hasn't been violated yet. Nevertheless, the market is still trading above all intraday moving averages, above the weekly pivot and above the golden trend line, so the break out to the upside might happen any time soon.

Support/Resistance:

112.31 - Intraday Support

112.97 - WS1

113.44 - Weekly Pivot

114.02 - Intraday Resistance

114.52 - WR1

115.02 - WR2

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 USD/CAD for August 23, 2016

General overview for 23/08/2016:

Another sub-wave up has been made that almost hit the 50% Fibo at the level of 1.2982. The clear, intraday bearish divergence has made then the price to move lower towards the weekly pivot at the level of 1.2976, but bulls managed to defend this level. Currently the pair is trading just above the weekly pivot in the middle of the range. Nevertheless, if the intraday support at the level of 1.2890 is violated, then the corrective wave b purple might get more complicated and time-consuming.

Support/Resistance:

1.2655 - Count Invalidation Level

1.2664 - WS2

1.2890 - Intraday Support

1.2778 - WS1

1.2976 - Weekly Pivot

1.2963 - Intraday Resistance

1.2930 - 38%Fibo

1.2982 - 50% Fibo

1.2988 - WR1

1.3088 - WR2

Trading recommendations:

Day traders should consider opening buy orders on the dips during the corrective cycle, ideally around the weekly pivot zone. The SL should be placed below the level of 1.2764 and TP should be placed at the level of 1.2982.

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USD/CAD approaching major resistance, look to sell soon

The price is approaching a key resistance level at 1.2985 (Fibonacci retracement, Fibonacci projection, horizontal pullback resistance) where we expect a reaction from and a drop to at least 1.2765.

RSI (21) is approaching 61% resistance level where we expect the price to drop from.

Stochastics (21,5,3) is also facing resistance at a key 89% level.

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Sell below 1.2985. Stop loss is at 1.3100. Take profit is at 1.2765.

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NZD/USD profit target reached, turn bearish again below major resistance

NZD/USD reached our profit target of 0.7225 perfectly and bounced up as expected. We consider selling again at 0.7325 major resistance (horizontal resistance, Fibonacci retracement, Fibonacci projection, bearish candlestick reversal) for another drop to 0.7225.

Stochastics (21,5,3) is approaching 93% resistance

RSI Indicator (21) is also facing downside pressure from the descending resistance line

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Sell below 0.7325. Stop loss is at 0.7350. Take profit could be placed at 0.7225.

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Technical analysis of USD/CAD for August 23, 2016

The USDCAD is showing signs of reversal and rejection at the 38% Fibonacci retracement and cloud resistance as we noted yesterday. Price is expected to move lower to new lows. Important resistance is the area between 1.2950-1.3050.

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With the stochastic oscillator turning lower from overbought levels in the 4 hour chart, combined with a double rejection at the 38% Fibonacci retracement and cloud resistance, USDCAD is expected to move lower at least towards short-term support of 1.2860. The most probable scenario will be a decline towards 1.27.

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On a weekly basis the stochastic shows that more downside should be expected while the weekly kijun-sen is about to cross the weekly tenkan-sen. Being below the weekly cloud and seeing such a cross will be a very bearish signal for the longer-term. As long as we are below 1.32 trend will remain bearish targeting 1.20 and lower.The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of EUR/USD for August 23, 2016

EUR/USD remains inside the bullish short-term channel as I expected from my latest analysis targeting 1.1380 at least. Yesterday I said that the most probable outcome will be one more new high at least and this is what we are seeing now. Price is testing the previous high but bulls need to be cautious. I expect a reversal.

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Blue lines -bullish channel

Being patient is part of the trading process and as I said yesterday, EURUSD bears should wait for a new high. Price is trending higher above the Kumo and inside the bullish channel. The trend is clearly bullish with no sign of reversal. Support is at 1.1270 and resistance at 1.1363. I believe this up trend will continue and we could even see above 1.14. Only a break below 1.1270 will signal a confirmed reversal.

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On a daily basis price is above the Kumo and approaching the upper trading range level that we are in for the last year. 1.16 is huge resistance. Can we reach it? Yes but only if we pull back towards 1.12 and hold above the daily cloud support. So even if in the longer-term we are heading towards 1.16 we should first see a pull back. In the short-term I expect a bearish reversal and I will be looking to find reversal signal to sell this pair.The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of USDX for August 23, 2016

The Dollar index is pulling back towards the medium-term upward sloping trend line support that was held when the index made its latest low and reversal. There are some divergence signals that Dollar bears should not ignore, however trend remains bearish.

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Red line - resistance

Blue line - support

The Dollar index is testing the blue trend line support, while it remains below the 4 hour cloud and the red trend line resistance. Trend is bearish and if the blue trend line is broken we should expect at least one more new low below 94. Resistance is at 94.97 and support at 94.20.

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Green line - trend line support

On a weekly basis price is about to break an important support trend line. Price is below the tenkan- and kijun-sen indicators implying more downside could be expected. The weekly view is not optimistic for the Dollar. A weekly break below the trend line will put 93 and 92 to the test.

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Technical analysis of Gold for August 23, 2016

Gold price bounced off the 61.8% Fibonacci retracement and is back testing the broken triangle area at $1,340-50. I believe this is a backtest and price will reverse downwards towards $1,300 over the coming days.

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Blue lines - triangle pattern

Red line-long-term support

Gold price held support at $1,330 where the 61.8% Fibonacci retracement is found. Price is below the 4-hour Kumo and is back testing the lower triangle boundary. I expect to see a rejection around $1,345-50. A move back above $1,350 will make us re-shape the triangle pattern and cancel the downward break signal.

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Blue lines - bullish channel

The weekly candle is testing the weekly tenkan-sen (red line indicator). A weekly close below it will open the way for a push lower towards the weekly kijun-sen (yellow line indicator). Price remains above the weekly cloud and inside the blue upward sloping channel. I remain longer-term bullish Gold but there are a lot of chances of making a deep correction below $1,280.

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Elliott wave analysis of EUR/NZD for August 23, 2016

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Wave summary:

It is disappointing that this cross has failed to rally impulsively after the break above the resistance line from 1.6904. That said, we do remain cautiously positive for more upside pressure towards 1.5837 and above here will confirm a return to 1.6904 and above.

Short term, we need to accept the possibility of a dip just below 1.5366 before a break above 1.5649 calls for the rally to 1.5837 and ideally above.

Trading recommendation:

Our stop was hit for a small profit. We are looking for a new buying opportunity near 1.5370 or upon a break above 1.5649. Stop will be placed at 1.5180.

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Elliott wave analysis of EUR/JPY for August 23, 2016

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Wave summary:

We remain locked inside the 112.28 - 114.03 range. The pair is currently trading within an even more narrow range. We remain slightly bullish as long as support at 112.28 is able to protect the downside, for a break above 114.03 that will call for much more upside.

That said, we do accept the possibility of more downside pressure as long as resistance at 114.03 stays untouched, but we do think that the downside potential remains limited from here.

Trading recommendation:

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

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Technical analysis of EUR/USD for Aug 23, 2016

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When the European market opens, some economic data will be released such as Consumer Confidence, Flash Services PMI, Flash Manufacturing PMI, German Flash Services PMI, German Flash Manufacturing PMI, French Flash Services PMI, and French Flash Manufacturing PMI. The US will release the economic data too such as Richmond Manufacturing Index, New Home Sales, and Flash Manufacturing PMI. So amid the reports, EUR/USD will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Breakout BUY Level: 1.1369.

Strong Resistance:1.1351.

Original Resistance: 1.1340.

Inner Sell Area: 1.1322.

Target Inner Area: 1.1313.

Inner Buy Area: 1.1286.

Original Support: 1.1275.

Strong Support: 1.1264.

Breakout SELL Level: 1.1257.

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 23, 2016

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In Asia, Japan will release Flash Manufacturing PMI. Besides, Bank of Japan Governor Kuroda will deliver his speech. The US will post some economic data such as Richmond Manufacturing Index, New Home Sales, and Flash Manufacturing PMI. So there is a probability the USD/JPY pair will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Resistance. 3: 100.71.

Resistance. 2: 100.51.

Resistance. 1: 100.32.

Support. 1: 100.07.

Support. 2: 99.88.

Support. 3: 99.68.

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 major pairs for August 23, 2016

EUR/USD: This currency trading instrument made a further bullish effort yesterday, leading to a clearer bullish signal in the market. Price is currently above the support line at 1.1300; going towards the resistance line at 1.1350, which was tested yesterday and also last week, and would be tested again (and get breached to the upside).

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USD/CHF: The USD/CHF pair did not make any significant movement on August 22, 2016. There is a Bearish Confirmation Pattern on the chart, and a further plunge could happen this week. However, a possible weakness in CHF, coupled with a possible weakness in the EUR/USD, might trigger a significant rally in USD/CHF.

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GBP/USD: This pair went upwards 100 pips on Monday, testing the distribution territory at 1.3150. That distribution territory was also tested last week, and it would be breached to the upside this week, because there is a Bullish Confirmation Pattern on the chart. There is a need for at least, 300 pips movement to the upside this week, before there can be any threat to the dominant bearish outlook.

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USD/JPY: Since the middle of last week till now, the USD/JPY pair has moved sideways. A further sideways movement for more several trading days would eventually lead to a neutral bias in the near-term. However, there is going to be a breakout this week or next, which would most possibly favor bears.

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EUR/JPY: The EUR/JPY cross consolidated throughout last week, which was something it also did in the previous week. This has caused the bias to become neutral. The neutral bias would come to an end this week or next, when a breakout occurs, which would most probably favor bears.

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Daily analysis of USDX for August 23, 2016

USDX hasn't reached the 200 SMA on the H1 chart, and currently it is declining towards the support zone of 94.32 which can be tested soon. Below that zone, further weakness will push the index towards the 94.07 level. However, if USDX does a rebound at the current stage, then it can test the 95.00 psychological level.

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H1 chart's resistance levels: 94.65 / 95.00

H1 chart's support levels: 94.32 / 94.07

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 94.32, take profit is at 94.07 and stop loss is at 94.57.

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Daily analysis of GBP/USD for August 23, 2016

The cable had a very bullish day yesterday, consolidating gains above the 200 SMA on the H1 chart. Currently, a resistance can be found at the 1.3170 level where a breakout should happen to rally towards the 1.3258 level. Overall, our view is still on the bulls' side, as GBP/USD rebounded above the moving average.

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H1 chart's resistance levels: 1.3170 / 1.3258

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 lies at 1.3170, take profit is at 1.3258 and stop loss is at 1.3081.

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Daily analysis of GBP/JPY for August 22, 2016

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Overview

The GBPJPY pair showed more mixed trading on Friday approaching from the minor bearish channel resistance at 131.90. We remind you that until the current resistance holds, the price is trapped within the bearish channel. The price is likely to start forming negative attacks and attempt to reach the first target at 130.00 levels followed by the 128.60 support. Any attempt to rally above the mentioned resistance will cancel the negative overview and start forming new positive trading that targets the moving average 55 at 133.10. The expected trading range for today is between 131.90 and 130.00.

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Daily analysis of EUR/JPY for August 22, 2016

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Overview

The EURJPY pair traded positively last Friday moving away from the initial support at 112.40, affected by stochastic positivity as it approaches from 80 levels. Therefore, we still expect upward movements and wait the price to reach the first correctional target at 115.10. The expected trading range for today is between 112.40 and 115.10.

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Daily analysis of Gold for August 22, 2016

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Overview

The gold price has begun today's trading with clear negativity and has broken the symmetrical triangle's support shown on the chart, which puts the price under negative pressure that we expect to push trading to visit the key support levels between 1,310.65 and 1,297.75 before any new attempt to resume the main bullish trend. Therefore, the bearish bias is expected today, supported by the negative pressure formed by the EMA50. A breach of 1,345.00 followed by 1,361.00 levels will stop the current negative pressure and lead the price to further gains on the short- and mid-term bases. The expected trading range for today is between the 1,310.65 support and the 1,345.00 resistance.

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Daily analysis of Silver for August 22, 2016

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Overview

The silver price opened today's trading with a bearish gap that made the price break and settle below 19.38 levels it. This pushes the price to target the 38.2% Fibonacci level for the rise from 13.75 to 21.12. This level forms a key support at 18.30 and the price is likely to touch this level to rebound bullishly and resume the main bullish track again. Therefore, we expect the negative trading for today until the price manages to breach and hold above 19.38 and 19.80 levels. A break of 18.30 levels will push the price to extend its bearish correction and target 17.43 levels. The expected trading range for today is between the 18.30 support and the 19.38 resistance.

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