USD/CAD intraday technical levels and trading recommendations for August 24, 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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NZD/USD Intraday technical levels and trading recommendations for August 24, 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 24, 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 24, 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 24, 2016

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Since our previous analysis, Gold has been trading sideways at the price of $1,337.00. 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 suggests that buyers protected the support (pin bars from the support). I also found bullish outside bar formation, which is a sign that selling looks risky. So, I expect 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: 1,343.90

R2: 1,344.75

R3: 1,346.00

Support levels:

S1: 1,341.00

S2: 1,340.00

S3: 1,338.75

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

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EUR/NZD analysis for August 24, 2016

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Recently, EUR/NZD has been moving downwards. As I expected, the price tested the level of 1.5390 in a high volume. My second downward target at the price of 1.5400 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 1.5235. Watch for breakout of 1.5400 to confirm further downward continuation.

Fibonacci Pivot Points:

Resistance levels

R1: 1.5545

R2: 1.5575

R3: 1.5625

Support levels:

S1: 1.5450

S2: 1.5420

S3: 1.5370

Trading recommendations for today: Watch for selling opportunities.

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Technical analysis of NZD/USD for August 24, 2016

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Overview:

  • The NZD/USD pair broke resistance at 0.7288 which turned into strong support. This level coincides with 78.6% of Fibonacci retracement which is expected to act as major support today. Equally important, the RSI is still signaling that the trend is upward, while the moving average (100) is headed for the upside. Accordingly, the bullish outlook remains the same as long as the EMA 100 is pointing to the uptrend. This suggests that the pair will probably go above the daily support (0.7288) in the coming hours. The NZD/USD pair will demonstrate strength following a breakout of the high at 0.7288. Consequently, the market is likely to show signs of a bullish trend. In other words, buy orders are recommended above 0.7288 with the first target at 0.7343 (the double top is already set at 0.7343). Then, the pair is likely to begin an ascending movement to 0.7373 mark and further to 0.7400 levels. The level of 0.7400 will act as strong resistance. On the other hand, the daily strong support is seen at 0.7288. If the NZD/USD pair is able to break out the level of 0.7288, the market will decline further to 0.7245(daily support 2).
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USD/CHF potential inverse head-and-shoulder reversal, wait for buy entry

We can close out our initial short position for some profits as we're seeing the risk of an inverse head-and-shoulder reversal. The idea is not to buy yet but to wait for price to surpass 0.9650 before buying. 0.9650 is a major resistance level (Fibonacci retracement, Fibonacci projection, horizontal resistance), so we would wait for stronger price movement above it to trigger the move.

RSI (21) is seeing support from an ascending support line which is pushing price up to the 0.9650 level.

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Buy at break of 0.9650. Stop loss is at 0.9585. Take profit is at 0.9770.

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USD/CAD reversed perfectly. Look to sell again

Price reacted off our resistance level perfectly as expected. We can take profits on our initial short position. The plan today is to wait until price bounces up to our major 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 (34) is approaching 57% resistance level where we expect price to drop from.

Stochastics (21,5,3) is also seeing 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 perfect reversal. Expecting a bounce before a further drop.

NZD/USD reversed perfectly below our resistance of 0.7325 and 0.7350 yesterday. We can take our profits now. We are waiting for a bounce to around the 0.7320 level to go short again for another drop to the channel support at 0.7230.

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Sell below 0.7320. Stop loss is at 0.7350. Take profit is at 0.7230.

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Technical analysis of USDX for August 24, 2016

The Dollar index held above the critical support level of 94-94.20 I mentioned yesterday and seems to respect this level. Could a bigger bounce come from this area? Yes and confirmation will come with the break above 95.30.

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Blue line - support

Red line - resistance

Short-term support is at 94.20 and resistance at 95.30. A bounce towards the red trend line resistance is very possible over the next couple of days. This will be the crucial test for Dollar bulls. A break out above the red trend line will re-energize the bullish trend and will put 97 to the test. A rejection will most probably bring the index below 94.

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Green line - support

Price is holding above the green trend line support and this implies that a bigger bounce could come very soon if price manages to break above short-term resistance at 95.30. A weekly break below 94.20 will open the way for a deep correction towards 93 at least. Trading below the weekly Kumo is a bearish sign and staying below both the tenkan and kijun-sen indicators is also a bearish sign. Bulls need to act this week otherwise we will see a big sell off in the Dollar index.

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Technical analysis of USD/JPY for August 24, 2016

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USD/JPY is expected to trade with a bearish bias as key resistance is at 100.65. Despite the recent technical rebounds, the pair remains under pressure below its key resistance at 100.65. The relative strength index lacks strong upward momentum, calling for caution. On the economic front, the U.S. Commerce Department reported that new home sales jumped 12.4% on month to a seasonally adjusted annual rate of 654,000 units in July (vs. -2.0% on month to 580,000 units expected).

As long as 100.65 holds on the upside, the pair is likely to pull back to challenge its nearest support at 100.00. A break below this level would open the way to further weaknesses toward 99.70.

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: 100.00, 99.70, 98.95

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Technical analysis of USD/CHF for August 24, 2016

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Overview:

  • The USD/CHF pair rose from the level of 0.9574 to bottom at 0.9643 yesterday. Today, the USD/CHF pair has faced strong resistance at the level of 0.9684 (38.2% Fibonacci retracement levels). So, the strong resistance is already seen at the level of 0.9684 and the pair is likely to try to approach it in order to test it again and form a double top. Hence, the USD/CHF pair is continuing to trade in a bearish trend from the new resistance level of 0.9684 in order to form a bearish channel. According to the previous events, we expect the pair to move between 0.9684 and 0.9574. Also, it should be noted major support is seen at 0.9521, while immediate support is found at 0.9622. Then, we may anticipate potential testing of 0.9622 to take place soon. Moreover, if the pair succeeds in passing through the level of 0.9622 , the market will indicate a bearish opportunity below the level of 0.9572. A breakout of that target will move the pair further downwards to 0.9521.

Trading recommendations:

  • Sell orders are recommended below the area of 0.9684 (major resistance) with the first target at the level of 0.9622; 0.9572 and continue towards 0.9521. On the other hand, stop loss should always be taken into account, accordingly, it will be of beneficial to set the stop loss above the last bullish wave at the level of 0.9684.
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Technical analysis of USD/CHF for August 24, 2016

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USD/CHF is expected to trade with a bullish bias as the pair is moving upside. The pair stands firmly above its horizontal support at 0.9590 (Aug 23 bottom) and the downside potential should be limited by this level. The rising 50-period moving average is acting as support and maintains the bullish bias. The relative strength index is bullish above its neutrality area at 50 and lacks downward momentum. On the economic front, the U.S. Commerce Department reported that new home sales jumped 12.4% on month to a seasonally adjusted annual rate of 654,000 units in July (vs. -2.0% on month to 580,000 units expected). On Tuesday, U.S. stocks were modestly higher at close, lifted by technology and materials shares. The Dow Jones Industrial Average gained 17 points (0.1%) to 18547, the S&P 500 rose 4 points (0.2%) to 2186, while the Nasdaq Composite was up 15 points (0.3%) to 5260. The U.S. dollar was largely unchanged as traders were reluctant to place heavy directional bets on currencies ahead of Federal Reserve chairwoman Janet Yellen's speech at the monetary-policy symposium in Jackson Hole, Wyoming on Friday.

As long as 0.9590 is support, look for further advance to 0.9680 and even to 0.9710 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 Gold for August 24, 2016

Gold price as expected bounced towards the lower triangle boundary and got rejected. This backtest is complete and the downtrend should resume soon. I assume the short-term bearish scenario for Gold targeting $1,280.

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Blue lines - triangle pattern

Red line - long-term support

Price is still below the Ichimoku cloud in the 4 hour chart. Resistance is at $1,350 and support at $1,330 and then at $1,310. I expect price to move lower towards the red trend line support towards $1,280-$1,300.

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Blue lines - bullish channel

Price is still inside the bullish channel and is testing the weekly tenkan-sen support at $1,330-40. Breaking below it will open the way for a push towards $1,280-$1,290. If the channel is broken we should find support at the weekly cloud near $1,200.

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Technical analysis of NZD/USD for August 24, 2016

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NZD/USD is expected to trade with bullish bias. The pair is trading below the 20-period and 50-period moving averages and the relative strength index is below its neutrality area at 50. Nevertheless, a support base at 0.7260 has formed and should limit the downside potential. The intraday technical signals are mixed. Yesterday the New Zealand dollar surged to 0.7344 against the greenback after Reserve Bank of New Zealand Governor Graeme Wheeler pointed out that rapid easings were not necessary. NZD/USD closed 0.3% higher at 0.7290. Therefore, as long as 0.7260 is not broken, we are cautiously positive with targets at 0.7310 and 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 0.7310 and the second one, at 0.7340. 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 0.7260.

Resistance levels: 0.7310, 0.7340, 0.7380

Support levels: 0.7235, 0.7205, 0.7170

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Elliott wave analysis of EUR/NZD for August 24 - 2016

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Wave summary:

We remain slightly bullish for a break above minor resistance at 1.5649 soon, but short term, we must allow for a test of support at 1.5366 first, before the next hopefully strong rally will take us clearly above 1.5649 for a continuation towards 1.5839 and above to 1.6428 and 1.7195.

Only a clear break below 1.5366 will be a concern.

Trading recommendation:

We will buy EUR at 1.5370 or upon a break above 1.5649.

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Technical analysis of GBP/JPY for August 24, 2016

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GBP/JPY is expected to trade with bullish bias as Key support is at 131.55. The technical picture of EUR/JPY remains positive above its key support level at 131.55, which should limit the downside potential. The pair just broke above its 20-period moving average and is going to challenge the 50-period one in sight. Additionally, the relative strength index is rebounding and is likely to cross above its neutrality level at 50. As long as the key support at 131.55 holds on the downside, look for a technical rebound toward 113.65. A break above this level would call for further advance toward 132.55.

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 131.55.

Resistance levels: 132.55, 133.20, 134.60

Support levels: 130.90, 130.25, 129.20

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Elliott wave analysis of EUR/JPY for August 24 - 2016

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Wave summary:

As we have been trading within a 50 pip range over the last week, there is absolutely nothing new to add here. We remains slightly bullish for a break above 114.03, but until a break is confirmed, we must allow for more consolidation with the 112.28 - 114.03 range.

A break above 114.03 will call for a new rally to 118.46 and above.

Trading recommendation:

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

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Global macro overview for 24/08/2016

Global macro overview for 24/08/2016:

There is an increasing level of uncertainty weighing on trader's sentiment just before the Jackson Hole economic conference. The financial mass media were surprised to find out, that majority of regional FED banks voted for discount rate hike according to the latest FED Meeting Minutes. Eight regional banks sought to hike rate as Dallas and Philadelphia joined in others who had previously supported an interest rate increase. This might be the first signal that many regional Federal Reserve banks are ready for another interest rate hike and many of global investors will be on the lookout for possible clues and hints regarding the timing of the next hike from the FED at the incoming meeting. In conclusion, the FED Chairperson Jannet Yellen should give her speech at Friday afternoon and this will be the main economic event of the week.

Let's now take a look at the US Dollar index technical picture at the daily time frame. The market has bounced from the technical support at the level of 94.15, but it wasn't strong enough to break out above the technical resistance at the level of 94.96. This horizontal sideways price action is being expected during the rest of the week as the trades are waiting for the final conclusions of Jackson Hole conference.

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Global macro overview for 24/08/2016

Global macro overview for 24/08/2016:

Suspiring news regarding crude oil market has hit the mass media yesterday when the Iran signaled that they may be willing to support other OPEC member in production freezes. This is very encouraging news, especially if take into account, that Iran has been trying to emerge from economically crippling decade-long global sanctions. Currently, Iran is close to its pre-sanction production run, so they appear more flexible and open to discussion leading up to next months OPEC summit in September.

Let's now take a look at the Crude Oil technical picture at the 4H time frame. The bulls have managed to retrace almost 78% of the previous swing down, but the price seems to be reversing just around the technical resistance at the level of 49.00. The most important intraday support is at the level of 46.55 and any break out below this level will accelerate the sell-off towards the next support at the level of 45.82.

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EURJPY Technical Analysis for August 24, 2016.

Technical outlook and chart setups:

The EURJPY pair is seen to have dropped lower as discussed and expected earlier and is trading at $113.38 levels at this moment. Please note that the pair has reversed lower from 114.00/10 levels as expected. The wave structure indicates that EURJPY 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 have terminated wave 4, within its 3rd wave drop from 118.50 levels. It is hence recommended to remain short now with risk above 115.00 levels. Immediate resistance is seen at 115.00 levels, while support is at 110.50 levels respectively.

Trading recommendations:

Remain short now, stop above 115.00, target is open.

Good luck!

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Technical analysis of USD/CAD for August 24, 2016

General overview for 24/08/2016:

A three wave internal corrective cycle had been made and the low for this cycle is the intraday support at the level of 1.2857. Currently, if the count is correct, the market should impulsively move to the upside, violate the intraday resistance at the level of 1.2963 and rally towards the level of 1.3033. On the other hand, a lack of this kind of wave progression will result in more complex and time-consuming wave 2 progression.

Support/Resistance:

1.2655 - Count Invalidation Level

1.2664 - WS2

1.2857 - 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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Technical analysis of EUR/JPY for August 24, 2016

General overview for 24/08/2016:

The low volatility trading period continues. 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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GBPCHF Technical Analysis for August 24, 2016.

Technical outlook and chart setups:

The GBPCHF pair is seen to be trading at 1.2700 levels at this moment, looking to continue dropping lower from here. The wave structure is indicating that the pair is looking to complete wave 3, within the 5 wave's drop that resumed from 1.3200 levels earlier. A print below 1.2400 levels would be required to confirm intermediary bottom formation. Please also note that the rally from 1.2450 through 1.2700 levels is 3 waves which is corrective in nature. If this wave count holds true, the next move should be lower from here. It is hence recommended to remain short from here, with risk above 1.2900 levels. The pair should remain in control of bears till prices stay below 1.2900 levels going forward. Immediate resistance is seen at 1.2850 levels, while support is at 1.2450 levels respectively.

Trading recommendations:

Remain short now, stop above 1.2900, target is below 1.2400 levels.

Good luck!

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Silver Technical Analysis for August 24, 2016.

Technical outlook and chart setups:

Silver is seen to be trading around $18.93 levels at this moment, after forming lows at $18.70 levels earlier this week. Please note that the metal has produced a regular flat as wave 4 consolidation. It might push lower below $18.70 levels one last time before turning bullish again. Furthermore, the metal has bounced from fibonacci 0.382 levels of the entire rally between $15.70 and $21.13 levels respectively. If this count 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 $18.60/70 levels. It is hence recommended to remain long now, with stop below $18.25 levels. Immediate resistance is seen at $20.50 levels, while support is at $18.25 levels respectively.

Trading recommendations:

Remain long for now, stop below $18.25, target $20.80 and above $21.13.

Good luck!

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Gold Technical Analysis for August 24, 2016.

Technical outlook and chart setups:

Gold is seen to be trading higher at $1,338.00 levels after printing fresh lows at $1,331.00 levels earlier. Please note that the yellow still looks to be constructive for bulls to regain control, till prices stay above $1,330.00 levels. The wave structure continues to indicate that the metal seems to have terminated its wave 4 triangle consolidations at $1,331.00 levels. It is hence recommended to remain long, 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, 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 24, 2016

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When the European market opens, some economic data will be released such as Belgian NBB Business Climate, German Final GDP q/q.The US will release the economic data too such as Crude Oil Inventories, Existing Home Sales, HPI 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: 1.1352.

Strong Resistance:1.1346.

Original Resistance: 1.1335.

Inner Sell Area: 1.1324.

Target Inner Area: 1.1298.

Inner Buy Area: 1.1272.

Original Support: 1.1261.

Strong Support: 1.1250.

Breakout SELL Level: 1.1244.

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 24, 2016

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In Asia, Japan will not release any economic data but the US will release some economic data such as Crude Oil Inventories, Existing Home Sales, HPI 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: 100.84.

Resistance. 2: 100.64.

Resistance. 1: 100.45.

Support. 1: 100.20.

Support. 2: 100.01.

Support. 3: 99.81.

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 24, 2016

EUR/USD: There is a Bullish Confirmation Pattern in the EUR/USD 4-hour chart. The EMA 11 is above the EMA 56 and the William's % Range period 20 is trying to slope downwards, in conjunction with the shallow bearish correction that happened yesterday. This is nothing but another opportunity to go long in this market.

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USD/CHF: There is a Bearish Confirmation Pattern in the USD/CHF 4-hour chart. The EMA 11 is below the EMA 56, and the William's % Range period 20 is trying to slope upwards, in conjunction with the shallow bullish attempt that happened on August 23, 2016. This is nothing but another opportunity to go short in the market.

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GBP/USD: As it was mentioned in the last forecast, this market was able to go above the accumulation territory at 1.3150, testing the distribution territory at 1.3200. It is highly probable that price would go above that distribution territory, going further upwards to confirm the current bullish outlook on the market.

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

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EUR/JPY: This cross consolidated throughout last week, which was something it also did the week before last week. This has caused the bias to become neutral; plus nothing has changed till now. 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 24, 2016

The index performed a rebound during Tuesday's session, following a bearish Monday's session that took the USDX to test the support zone of 94.32. However, the risk to the downside is still high and one could expect a breakout below there eventually in order to reach the 94.07 level. 200 SMA on the H1 chart is slightly bearish.

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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 lies at 94.07 and stop loss is at 94.57.

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Daily analysis of GBP/USD for August 24, 2016

The pair continues to post new highs, as as there remains uncertainty around the US dollar ahead of Yellen's speech. On the H1 chart, GBP/USD has consolidated above the 200 SMA, and the next resistance is located at the 1.3258 level, where a breakout should happen in order to test the 1.3358 price zone. MACD indicator is entering the negative territory.

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H1 chart's resistance levels: 1.3258 / 1.3358

H1 chart's support levels: 1.3170 / 1.3085

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 1.3258, take profit is at 1.3358 and stop loss is at 1.3158.

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