USD/CAD intraday technical levels and trading recommendations for August 25, 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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AUD/NZD right on major support, turn bullish.

Price is right on major support at 1.0400 (2x Fibonacci projection) which gives us confidence to see a rise to at least 1.0475 resistance (overlap resistance, Fibonacci retracement).

RSI (34) is also seeing major support and displays bullish divergence vs recent price movement.

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Buy above 1.0400. Stop loss is at 1.0375. Take profit is at 1.0475

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USD/CHF perfect inverse head-and-shoulder reversal. Look to buy again

Our inverse head-and-shoulders was triggered perfectly as expected. The goal today is to buy on a pullback to neckline support at 0.9650 to play a further push up to 0.9705 before 0.9765RSI (21) is seeing support from an ascending support line which is holding price up.The strategy for the day is to add onto your position at 0.9650 and take 50% profits at 0.9705 and moving stop loss to breakeven. Take remaining profits at 0.9765.

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Buy at pullback of 0.9650. Stop loss at 0.9585. 1st take profit is at 0.9705. 2nd take profit is at 0.9765.

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EUR/NZD analysis for August 25, 2016

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Recently, EUR/NZD has been moving sideways at the price of 1.5440. My second downward target at the price of 1.5400 has been reached. According to the 4H time frame, I found weak demand and testing of previous swing low level at 1.5440, which now became good resistance. My advice is to watch for selling opportunities near the resistance level. Next downward station is set at the price of 1.5240.

Fibonacci Pivot Points:

Resistance levels

R1: 1.5505

R2: 1.5545

R3: 1.5610

Support levels:

S1: 1.5370

S2: 1.5330

S3: 1.265

Trading recommendations for today: Watch for selling opportunities.

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Gold analysis for August 25, 2016

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Since our previous analysis, Gold has been trading downward. The price tested the level of $1,322.45 in an high volume. According to the 4H time frame, I found a broken trading range. The price broke the support at the level of $1,329.50 in a high volume, which is a sign that buying looks risky. My advice is to watch for selling opportunities on the pullbacks. The first downward target is set at the price of $1,311.00.

Hourly Fibonacci pivot points:

Resistance levels:

R1: 1,327.25

R2: 1,327.50

R3: 1,337.85

Support levels:

S1: 1,326.45

S2: 1,326.20

S3: 1,325.85

Trading recommendations for today: Buying looks risky, watch for selling opportunities on the pullbacks.

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GBP/CHF Technical Analysis for August 25, 2016.

Technical outlook and chart setups:

The GBP/CHF pair pushed higher towards 1.2840 levels before reversing lower again as depicted on the chart view here. Please also note that the pair has found resistance at fibonacci 0.618 level of the drop between 1.3000 and 1.2425 respectively. The wave structure remains unchanged and is indicating that the pair is looking to complete wave 3 within the 5 wave's drop that resumed from 1.3200 level earlier. A print below 1.2400 level would be required to confirm an intermediary bottom formation. Besides, note that the rally from 1.2450 through 1.2840 levels is 3 waves which is corrective in nature. If this wave count comes 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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EUR/JPY Technical Analysis for August 25, 2016.

Technical outlook and chart setups:

The EURJPY pair is seen to be consolidating at the moment, looks to be in its wave 4 of the 5 wave's decline that resumed from 118.45 levels earlier. Please note that the pair has reversed lower from 114.00/10 levels as expected yesterday which is also fibonacci 0.382 resistance of wave 3. The wave structure remains unchanged for now and 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 already, 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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Silver Technical Analysis for August 25, 2016.

Technical outlook and chart setups:

Silver has dropped lower today to fresh lows at $18.47 levels as discussed yesterday and is seen to be trading at $18.55/57 levels at this moment. The metal still looks constructive for bulls to stage a rally from here. Please note that the metal has now terminated a regular flat (a-b-c) as wave 4 consolidation. Furthermore, the metal has bounced from fibonacci 0.50 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 $18.25 level. It is hence recommended to remain long now, with stop below $18.25 level. Immediate resistance is seen at $19.00/10 levels, while support is at $18.25 level respectively.

Trading recommendations:

Remain long for now, stop below $18.25, targets are at $20.80 and above $21.13.

Good luck!

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Gold Technical Analysis for August 25, 2016.

Technical outlook and chart setups:

Gold has indeed dropped lower below $1,330.00 level, taking out stops yesterday. Please note that the yellow metal still looks to be constructive for bulls to regain control, till prices stay above $1,310.00 level, which is the wave's low within the triangle structure. The wave structure continues to indicate that the metal seems to have terminated its wave 4 triangle consolidations at $1,323.00/24.00 levels and is seen to be trading around the same levels at this moment. It is hence recommended to remain long, with risk below $1,310.00 levels. Immediate resistance is seen at $1,3555.00/56.00 levels, while support is seen at $1,310.00 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 $1,310.00, targets are at $1,358.00 and $1,390.00

Good luck!

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NZD/USD Intraday technical levels and trading recommendations for August 25, 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 25, 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 25, 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 when 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.

On the other hand, re-closure below 1.1250 (Supply Level 1) is needed to maintain enough bearish pressure.

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Technical analysis of NZD/USD for August 25, 2016

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Overview:

  • The NZD/USD pair faced strong resistances at the levels of 0.7324 because the price of 0.7324 represents the double top in the H4 time frame. So, the strong resistance has been already formed at the level of 0.7324 and the pair is likely to try to approach it in order to test it again. However, if the pair fails to pass through the level of 0.7324, the market will indicate a bearish opportunity below the new strong resistance level of 0.7324. Thus, the market is indicating a bearish opportunity below 0.7330, for that it will be good to sell at 0.7330 with the first target of 0.7280. It will also call for a downtrend in order to continue towards 0.7243. The daily strong support is seen at 0.7243. However, the stop loss should always be taken into account, because the RSI starts signaling an upward trend, as the trend is still showing strength above the moving average (100). So, it will be reasonable to set your stop loss at the level of 0.7370.
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Technical analysis of USD/CHF for August 25, 2016

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Overview:

  • The USD/CHF pair didn't make any significant movements yesterday. There are no changes in our technical outlook. 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. Besides, 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. Therefore, 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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Global macro overview for 25/08/2016

Global macro overview for 25/08/2016:

The Existing Home Sales data from US disappointed global investors. According to the National Association of Realtors, sales of existing properties dropped more than expected last month to the level of 5.39M (-3.2%), while economists anticipated just a slight decrease to the level of 5.52M (-0.1%) from 5.57 (1.1%) a month ago. Nevertheless, economists blame the seasonal factors and still expect the further sales to pick up later this year. In conclusion, the housing sector plays a vital role in the US economy results, but is not being counted to the overall GDP figures mainly due to its sensitivity to business cycle twists.

Let's now take a look at the EUR/USD technical picture in the 4H time frame. Bears have managed to push the price lower towards the important key support at the level of 1.1233, but the market reversed after it hit the dashed blue trend line. Currently, the market is still trading in tight horizontal congestion zone between the levels of 1.1363 - 1.1233 as it is awaiting the Jackson Hole economic summit.

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Global macro overview for 25/08/2016

Global macro overview for 25/08/2016:

The Crude Oil Inventories surprised market participants again as the data were completely different than expected. According to the report, US crude oil stockpiles added 2501k barrels in the week ended August 19, but market participants expected a drop to the level of -850k barrels after last month similar (but larger) drop to the level of -2508k barrels. In conclusion, the recent mass media news about the possible Iran's limit on oil supplies might be quite helpful to tame the global supply glut as inventories are on the rise again. Only a wise decision based on all OPEC members agreement in the next meeting will finally prevent the stockpiles to rise above the line in the sand.

Let's now take a look at the Crude Oil technical picture in the 4H time frame. The technical support at the level of 46.55 is being tested currently. Bulls have managed to lift the price a little higher from that level. The help from 55 periods moving average was the additional factor that helped the bull camp, but so far it does not looks like any rally upward on the table. The bull/bear fight continues as the next resistance is seen at the levels of 48.32 and 48.75.

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Technical analysis of EUR/JPY for August 25, 2016

General overview for 25/08/2016:

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. The low volatility trading period continues, the horizontal corrective cycle is still in progress, but bears have managed to break out slightly below the golden trend line support. Nevertheless, the market is still trading within the daily range, 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 25, 2016

General overview for 25/08/2016:

The market is clearly waiting for the Jackson Hole economic conference outcome, so the intraday volatility is very limited right now. Nevertheless, a three-wave internal corrective cycle has 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 USDX for August 25, 2016

The Dollar index is holding above the trend line support at 94-94.20 but has not showed much strength in order to overcome cloud resistance at 94.90-95.30. A rejection here and a break below 94.20 will bring in more sellers that will eventually push price towards 93.

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Blue line - trend line support

Red line - trend line resistance

Price is below the Ichimoku cloud and trapped between the red and blue trend lines. Support is at 94.30-94.20 while resistance is at 95-95.30. Short-term trend is neutral as price has been moving mainly sideways for the last couple of days.

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Green line - weekly trend line support

Price is holding above the weekly trend line support. A break below 94.18 will be a bearish sign. With stochastics turning lower from overbought levels and price below the weekly cloud, chances favor the bearish scenario and a downward break for the Dollar index. All we need to do is be patient and wait to see if support fails.

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Technical analysis of Gold for August 25, 2016

Gold price has broken through $1,330 yesterday confirming our bearish view after the backtest of the broken triangle. I have been warning bulls since the start of the week that things are not bullish for Gold and a decline towards $1,280 is very possible. However, we need to break below $1,310 first.

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Blue lines - triangle (broken)

Green rectangle - support area

Red line - long-term support trend line

Price is below the 4-hour Kumo and has broken below the triangle pattern. This bearish signal was given from the start of the week and we are now heading towards the nearest important support of $1,310. A break below it will open the way for a push towards $1,280.

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Gold's weekly candle is bearish and shows signs of a continued bearish trend that will eventually bring price towards the weekly kijun-sen near $1,280-$1,290. I believe that traders should now wait for $1,280-90 in order to try any long trade in Gold. Until then trend remains bearish.The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of USD/JPY for August 25, 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 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 100.60 and the second one, at 100.90. In the alternative scenario, short positions are recommended with the first target at 99.90 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 99.70. The pivot point is at 100.10.

Resistance levels: 100.60, 100.90, 101.20

Support levels: 99.90, 99.70, 98.95

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Technical analysis of USD/CHF for August 25, 2016

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USD/CHF is expected to post some further upside gain. The pair is supported by a bullish trend line since August 23 and is likely to challenge the nearest resistance at 0.9685 in sight. The upward momentum is further reinforced by its rising 50-period moving average, which acts as a support role and maintains the upside bias. Wednesday, U.S. stock indexes declined, weighed down by health-care shares. Energy and materials stocks were also lower as oil prices dropped. The Dow Jones Industrial Average fell 65 points (0.4%) to 18481, the S&P 500 shed 11 points (0.5%) to 2175, while the Nasdaq Composite lost 42 points (0.8%) to close at 5217. The U.S. dollar posted a rebound as bears took profits ahead of Yellen's speech at the monetary-policy symposium in Jackson Hole. In conclusion, as long as 0.9620 is support, look for further advance to 0.9685 and 0.9710 in extension. Alternatively, below 0.9620, expect a return to 0.9620 and 0.9590 as targets.

As long as 0.9590 is support, look for further advance to 0.9680 and even to 0.9710 in extension.

Resistance levels: 0.9685, 0.9710, 0.9750

Support levels: 0.9620, 0.9590, 0.9535

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Technical analysis of NZD/USD for August 25, 2016

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NZD/USD Intraday: Bullish bias above 0.7290. The pair broke above its 20-period moving average, and now stands firmly above its key support at 0.7290. The 50-period moving average is turning up and playing a support role. The relative strength index remains positive above its neutrality area at 50. The New Zealand dollar maintained its strength as NZD/USD rose 0.3% to 0.7312. This morning, the pair charged higher to challenge this month's intraday high of 0.7344. In which case, as long as 0.7290 is not broken, look for a new rise to 0.7340 (Aug 23 top) and even to 0.7380 as possible.

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 0.7340 and the second one, at 0.7380. In the alternative scenario, short positions are recommended with the first target at 0.7265 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 0.7235. The pivot point is at 0.7290.

Resistance levels: 0.7340, 0.7380, 0.7425

Support levels: 0.7265, 0.7235, 0.7205

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Technical analysis of GBP/JPY for August 25, 2016

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GBP/JPY is expected to trade in higher range as the bias remains bullish. The pair remains on the upside within a bullish channel, which emerged on August 22. At the same time, the 50-period moving average is heading upward, and acts as a support role. Besides, the relative strength index lacks downward momentum. To sum up, as long as 132.40 holds on the downside, look for further advance to 133.30 and then to 133.70 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 133.70 and the second one, at 133.70. In the alternative scenario, short positions are recommended with the first target at 131.90 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 132.40.

Resistance levels: 133.30, 133.70, 134.60

Support levels: 131.90, 131.55, 130.90

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Elliott wave analysis of EUR/NZD for August 25 - 2016

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Wave summary:

We have seen the expected decline closer to 1.5366 (the low has been seen at 1.5328 as an expanded flat wave [ii] has unfolded. We are now looking for a break above minor resistance at 1.5545 to confirm that the correction in wave [ii] is complete and wave [iii] higher is developing.

When an expanded flat correction is seen as the second wave, it does tell us what we can expect from the third wave. After an expanded flat second wave an extended third should be expected and this mean the minimum target for wave [iii] will be 1.618 x wave [i] = 1.5945, but we suspect that this wave [iii] will extend even more and likely closer to 2.618 times wave [i] calling for a rally to 1.6326.

Trading recommendation:

We are long EUR from 1.5370 with stop placed at 1.5187. If you are not long EUR yet, then buy a break above 1.5545 and use a stop at 1.5320.

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Elliott wave analysis of EUR/JPY for August 25 - 2016

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Wave summary:

This cross remains lock inside a very narrow trading range. We try to stay patient and awaits it to break out from this range. We do slightly favor a break towards the upside above 114.03 for a continuation higher to 118.47 and 122.00.

That said, as long as as the 112.28 - 114.03 range remains intact, we will just have to wait patiently for the market to show us, what way it wants to break.

Trading recommendation:

We will only buy upon a break above 114.03

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Technical analysis of EUR/USD for Aug 25, 2016

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When the European market opens, some economic data will be released such as German Ifo Business Climate, German Import Prices m/m.The US will release the economic data too such as Natural Gas Storage, Flash Services PMI, Durable Goods Orders m/m, Unemployment Claims, Core Durable Goods Orders 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: 1.1311.

Strong Resistance:1.1305.

Original Resistance: 1.1294.

Inner Sell Area: 1.1283.

Target Inner Area: 1.1257.

Inner Buy Area: 1.1231.

Original Support: 1.1220.

Strong Support: 1.1209.

Breakout SELL Level: 1.1203.

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 25, 2016

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In Asia, Japan will release the SPPI y/y and the US will release some economic data such as Natural Gas Storage, Flash Services PMI, Durable Goods Orders m/m, Unemployment Claims, Core Durable Goods Orders 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: 101.02.

Resistance. 2: 100.82.

Resistance. 1: 100.63.

Support. 1: 100.38.

Support. 2: 100.18.

Support. 3: 99.98.

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 25, 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 in the oversold region, which would proffer a bullish signal once the indicator leaves the oversold region and starts trending upwards. A movement below the support line at 1.1200 would invalidate this assumption and lead to a bearish signal.

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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 in the overbought region, which would proffer a bearish signal once the indicator leaves the overbought region and starts trending downwards. A movement above the resistance level at 0.9750 would invalidate this assumption and lead to a bullish signal.

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GBP/USD: The Cable has gone upwards by 200 pips this week, testing the distribution territory at 1.3250. There is now a Bullish Confirmation Pattern in the 4-hour chart, and further upwards movement is anticipated. The next targets for bulls are located at the distribution territories at 1.3300 and 1.3350.

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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, there is going to be a breakout this week or next, which would most possibly favor bears.

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EUR/JPY: This is a flat market and the bias has really turned neutral. It is better to stay out of the market right now (unless one is a scalper). However, a breakout would happen before the end of this week or next, which would most probably favor bears. For a breakout to be valid, price needs to go below the demand zone at 112.00 or above the supply zone at 114.50.

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

Daily analysis of USDX for August 25, 2016

USDX is finding resistance at the 200 SMA price zone in an effort to reach the 95.00 psychological level. This stage is key for the current trend's development, as the index can break that level in order to extend the rally towards the 95.49 level. On the other hand, if USDX pulls back, it can test the 94.32 level again.

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H1 chart's resistance levels: 95.00 / 95.49

H1 chart's support levels: 94.65 / 94.32

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 94.65, take profit lies at 94.32 and stop loss is at 94.99.

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

Daily analysis of GBP/USD for August 25, 2016

GBP/USD posted another day of gains, looking to break the resistance zone of 1.3258, as the bulls remained solid across the board. That movement should open the doors to test the 1.3358 level, as the rally is strengthening. However, if the pair pulls back from that zone, then it can test the 1.3170 level. 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 lies at 1.3358 and stop loss is at 1.3158.

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