USD/CAD intraday technical levels and trading recommendations for August 26, 2016

analytics57c0599ae6c57.pnganalytics57c059a5a3158.png

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.

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

NZD/USD Intraday technical levels and trading recommendations for August 26, 2016

analytics57c0564830fbb.png

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 0.7400 (upper limit of the depicted channel).

The price zone of 0.7350 - 0.7400 (upper limit of the depicted channel) should offer a valid SELL entry. Initial T/P levels should be located at 0.7100, 0.7000, and 0.6900. S/L should be set as a daily candlestick closure above 0.7400.

Confirmation of the depicted Head and Shoulders reversal pattern requires a 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.

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

Intraday technical levels and trading recommendations for GBP/USD for August 26, 2016

analytics57c0527661872.pnganalytics57c0528024cea.png

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.

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

Intraday technical levels and trading recommendations for EUR/USD for August 26, 2016

analytics57c051ffc67c8.png

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).

analytics57c052098516a.png

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 in the market.

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

EUR/NZD analysis for August 26, 2016

analytics57c03cf3e9154.png

Recently, EUR/NZD has been moving sideways at the price of 1.5395. According to the 4H time frame, I found successful rejection from the resistance at the price of 1.5489. Watch for selling opportunities on the pullbacks. The key support level and the take profit level is set at the price of 1.5235.

Fibonacci Pivot Points:

Resistance levels

R1: 1.5485

R2: 1.5520

R3: 1.5565

Support levels:

S1: 1.5390

S2: 1.5360

S3: 1.5310

Trading recommendations for today: Watch for selling opportunities.

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

Gold analysis for August 26, 2016

analytics57c038bace746.png

Since our previous analysis, Gold has been trading upwards. The price tested the level of $1,328.23 in a high volume. According to the 4H time frame, I found a broken trading range. Anyway, there are two options in my opinion on the gold. The first option is that Gold may reject from strong resistance cluster between the price of $1,329.60-$1.333.00 and then continue lower to test $1,317.15-$1,311.10. The second option is the price breaks the key resistance cluster and then confirm again support, which will signal the bullish view. The first option is more likely to happen but the second option is also on the play.

Hourly Fibonacci pivot points:

Resistance levels:

R1: 1,331.30

R2: 1,332.00

R3: 1,333.50

Support levels:

S1: 1,328.50

S2: 1,327.70

S3: 1,326.30

Trading recommendations for today: Watch for successful rejection of a cluster to confirm entry.

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

Technical analysis of USD/JPY for August 26, 2016

USDJPYM30.png

USD/JPY is expected to follow an upside movement. The pair is supported by a rising trend line since August 23, and is currently challenging the next resistance at 100.62, representing a key horizontal level. The upward momentum is further reinforced by its rising 50-period moving average, which acts as a support role and maintains the bullish bias. Besides, the relative strength index is above its neutrality area at 50. On the economic data front, initial jobless claims lowered slightly to 261k in the week ended Aug. 20th (estimated 265k) from 262k in the previous week. Continuing claims decreased to 2.15M in week ended Aug. 13th (forecasted 2.16M) compared with 2.18M in prior week. Separately, durable goods orders jumped by 4.4% in July in a preliminary estimate (estimated 3.4%) from a fall of 4.2% in June (revised from -3.9%). The U.S. dollar was almost flat as traders awaited Yellen's speech at the annual Jackson Hole symposium. As long as 100.25 holds on the downside, look for further advance to 100.62 and even to 100.90 in extension.

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 100.10 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 99.90. The pivot point is at 100.25.

Resistance levels: 100.60, 100.90, 101.20

Support levels: 100.10, 99.90, 99.70

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

Technical analysis of USD/CHF for August 26, 2016

USDCHFM30.png

USD/CHF is expected to trade with a bullish bias above 0.9640. The pair broke above its 50-period moving average and is now challenging the nearest resistance at 0.9687 (Aug 24 & 25 top). The relative strength index stands firmly above its neutrality area at 50. A support base at 0.9640 (Aug 25 bottom) has formed, and the downside room should be limited by this level. The U.S. dollar was almost flat as traders awaited Yellen's speech at the annual Jackson Hole symposium. On the economic data front, initial jobless claims lowered slightly to 261k in the week ended Aug. 20th (estimated 265k) from 262k in the previous week. Continuing claims decreased to 2.15M in week ended Aug. 13th (forecasted 2.16M) compared with 2.18M in prior week. Separately, durable goods orders jumped by 4.4% in July in a preliminary estimate (estimated 3.4%) from a fall of 4.2% in June (revised from -3.9%). As long as 0.9640 is support, look for further advance to 0.9685 and then to 0.9710 in extension. Alternatively, below 0.9640, expect further downside with 0.9620 and 0.9590 as targets.

Resistance levels: 0.9685, 0.9710, 0.9750

Support levels: 0.9620, 0.9590, 0.9535

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

Technical analysis of NZD/USD for August 26, 2016

NZDUSDM30.png

NZD/USD is under pressure. The pair is trading below its 50-period moving average and maintains a bearish bias. 0.7345 represents a key resistance and should limit the upside attempts. Furthermore, the relative strength index is below its neutrality area at 50. Therefore, as long as 0.7345 holds as a key resistance, the pair is likely to pull back to challenge its nearest support at 0.7265. A break below this level would open the path to further weaknesses toward 0.7235.

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 0.7265. A break of this target will move the pair further downwards to 0.7235. The pivot point stands at 0.7345. In case 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 0.7380 and the second one, at 0.7410.

Resistance levels: 0.7380, 0.7410, 0.745

Support levels: 0.7265, 0.7235, 0.7205

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

Technical analysis of NZD/USD for August 26, 2016

NZDUSDH41.png

Overview:

  • The NZD/USD pair faced resistance at the level of 0.7370, while minor resistance is seen at 0.7324. Support is found at the levels of 0.7243 and 0.7180. Also, it should be noted that a daily pivot point has already set at the level of 0.7280. Equally important, the NZD/USD pair is still moving around the key level at 0.7280, which represents a daily pivot in the H4 time frame at the moment. Yesterday, the NZDUSD pair continued to move upwards from the level of 0.7280. The pair rose from the level of 0.7280 to the top around 0.7324. In consequence, the NZD/USD pair broke resistance, which turned strong support at the level of 0.7243. The level of 0.7243is expected to act as major support today. From this point, we expect the NZD/USD pair to continue moving in the bullish trend from the support level of 0.7243 towards the target level of 0.7330. If the pair succeeds in passing through the level of 0.7330, the market will indicate the bullish opportunity above the level of 0.7330 in order to reach the second target at the levels of 0.7370 and 0.7400. However, if a breakout happens at the support level of 0.7240, then this scenario may be invalidated.
The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of USD/CHF for August 26, 2016

USDCHFH1.png

Overview:

  • As expected the USD/CHF pair continues to move upwards from the zone of 0.9625 and 0.9652. Yesterday, the pair rose from the level of 0.9625 to 0.9697 which coincides with a ratio of 38.2% Fibonacci and 61.8% respectively on the daily chart. Today, resistance is seen at the levels of 0.9697 and 0.9717. So, we expect the price to set above the strong support at the level of 0.9625; because the price is in a bullish channel now. The RSI starts signaling an upward trend. Consequently, the market is likely to show signs of a bullish trend. So, it will be good to buy above the level of 0.9650 with the first target at 0.9679 and further to 0.9717 in order to test the daily resistance. If the USD/CHF pair is able to break out the daily resistance at 0.9550, the market will rise further to 0.9717 to approach support 2 today. However, the price spot of 0.9625 and 0.9600 remains a significant support zone. if a breakout happens at the support levels of .9625 and 0.9600 , then this scenario may be invalidated. But in overall, we still prefer the bullish scenario as long as the level of 0.9600 is not breached.
The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of USDX for August 26, 2016

Everyone is waiting for FED Chair Janet Yellen to speak today at Jackson Hole. The FED's strategy regarding interest rates will be the focus on any possible hint regarding a rate increase in September. The Dollar is expected to stay calm and trade sideways until the speech later today.

analytics57bff09c4373b.jpg

Red line - resistance

Blue line - support

Technically we have the same conclusion. The market is indecisive and is waiting for more information about the Fed's strategy and economic outlook in order to clear up a trend. Therefore, we focus on two price levels. 94.20 and 95 are important price levels. If broken, they will produce sell or buy signals respectively.

analytics57bff11d802e2.jpg

Green line - trend line support

On a weekly basis price is holding above trend line support but still below the cloud and both tenkan- and kijun-sen indicators. A weekly close below 94.20 will be a very bearish signal that could bring the index even below 92 over the coming weeks.

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

Global macro overview for 26/08/2016

Global macro overview for 26/08/2016:

The fresh IFO Business Climate data from Germany had been released yesterday morning and investors can clearly see that the sentiment among German businesses was wakening the last month. Market participants expected the IFO index to print the figure at the level of 108.5, a 0.2 points increase from last month release, but the actual print was at the level of 106.2. That was the lowest reading since February and the biggest monthly drop since Spring 2012 and the economists say the reason behind the drop is quite simple: the German economy begins to show signs of post-Brexit pressure. Moreover, the rest of the IFO sub-index also weakened amid the general expectations of a slight increase. In conclusion, the German business sentiment is definitely not good and this might be only the beginning of the post-Brexit situation.

Let's now take a look at the EUR/USD technical picture in the 4H time frame. The dashed blue trend line still provides the support for the bullish camp, but the volatility is now rather limited as market participants expect the Jackson Hole speech from FED Chairperson Jannet Yellen. The main support is seen at the level of 1.1233 and the next important resistance is seen at the level of 1.1363.

analytics57bff0717ec3e.jpg

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

Technical analysis of Gold for August 26, 2016

Gold price is testing the $1,310 support and is in a short-term downtrend. Price is expected to continue lower towards $1,280 but first we could see a bounce towards $1,330-35 where a shorting opportunity will arise.

analytics57bfef42d9132.jpg

Red lines - bearish channel

Green rectangle - support area

Gold price is trading inside the bearish red channel and is below the Ichimoku cloud in the 4 hour chart. Price could bounce towards $1,330-40 area before continuing its downtrend towards $1,280 which is my minimum pull back target.

analytics57bfef88ce9b9.jpg

The weekly candle is below the weekly tenkan-sen (red line indicator) and if the week closes this bad, we should expect more bearish weeks ahead that could push price even towards $1,200. Bulls need to be cautious and any bounce should be seen as opportunity to exit longs. Gold price is in a correction phase and has already started a pull back.The material has been provided by InstaForex Company - www.instaforex.com

Global macro overview for 26/08/2016

Global macro overview for 26/08/2016:

The Durable Goods Orders data surprised market participants yesterday as they printed better than expected figures. Market participants expected a rise of 3.4%, but the report revealed an increase of 4.4%, which was better than expected and better than the previous reading of -4.2%. According to the Department of Commerce this is the highest reading since October 2015. When we look into the details, we can see that the gain in overall durable goods orders was mainly driven by a 10.5% rise in demand for transportation equipment. Despite the fact that Durable Goods Orders are sensitive to economic changes, we can conclude here, that the forecast of US industrial output to come might beat the general consensus as well.

Let's now take a look at the US Dollar index technical picture in the daily time frame. As we know, financial markets expect FED Chairperson Janet Yellen final speech at the annual Jackson Hole economic conference, so the movement is very limited for now. Nevertheless, it is worthy of note, that the next support is seen at the level of 94.15 and the next resistance is seen at the level of 94.96. The immediate trend still remains bullish.

analytics57bfed55ba288.jpg

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

Technical analysis of USD/CAD for August 26, 2016

General overview for 26/08/2016:

A three-wave internal corrective cycle has been made. 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.

analytics57bfeab8eca65.jpg

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

Technical analysis of EUR/JPY for August 26, 2016

General overview for 26/08/2016:

It is almost clear that the current wave development is a form of a complex corrective cycle and as long as the low volatility trading period continues, the horizontal corrective cycle is still in progress. Nevertheless, bears have managed to break out slightly below the golden trend line support, but 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 breakout 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.

analytics57bfe9f080bcf.jpg

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

Technical analysis of GBP/JPY for August 26, 2016

GBPJPYM30.png

GBP/JPY is expected to trade in a lower range as the bias remain bearish. The pair broke below a rising channel, which confirmed a bearish reversal. The descending 50-period moving average is playing a resistance role, and should continue to push the prices lower. Last but not least, the relative strength index broke below its 50% neutrality area, and is calling for a new decline. As long as 133.30 holds on the upside, the pair is likely to drop to 132.35 and even to 131.90 in extension.

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 132.35. A break of this target will move the pair further downwards to 131.90. The pivot point stands at 133.30. In case 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 133.70 and the second one, at 134.10.

Resistance levels: 133.70, 134.10, 135

Support levels: 132.35, 131.90, 131.55

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

EURJPY Technical Analysis for August 26, 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. It is seen to be trading at 113.50 levels at this moment, looking to continue dropping lower from here. Please note that the pair has reversed lower from 114.00/10 levels as expected 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. At this moment the pair looks to have terminated wave 4 already, within its 3rd wave drop from 118.50 levels. Bears are expected to remain in control till prices stay below 115.00 levels going forward. 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!

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

GBPCHF Technical Analysis for August 26, 2016.

Technical outlook and chart setups:

The GBPCHF is stalling at 1.2750/60 levels at this moment, after having reversed lower from 1.2840 levels yesterday. Please note that the pair is still testing the resistance trend line and a push higher from here could open doors for 1.2880 and higher levels. The wave structure reveals that the rally from 1.2450 levels is corrective till now but a push above 1.2840 levels could complete an impulse, indicating a meaningful bottom formation at 1.2450 levels. If this wave count holds true, the next move should be higher from here, till prices stay above 1.2650 levels. It is hence recommended to exit short now and turn long with risk below 1.2650 levels.. The pair should remain in control of bulls till prices stay above 1.2650 levels going forward. Immediate resistance is seen at 1.2850 levels, while support is at 1.2450 levels respectively.

Trading recommendations:

Exit short positions. Long now, stop below 1.2650 levels, target 1.2880 and higher.

Good luck!

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

Elliott wave analysis of EUR/NZD for August 26 - 2016

analytics57bfdafc931b5.png

Wave summary:

We are looking for a break above minor resistance at 1.5545 to confirm the onset of the next impulsive rally higher to 1.5839 and above. Short term we do expected minor support at 1.5385 will be able to protect the downside for the expected break above 1.5545.

Trading recommendation:

We are long EUR from 1.5370 with stop placed at 1.5180. If you are not long EUR yet, then buy a break above 1.5545 and place stop at 1.5320.

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

Elliott wave analysis of EUR/JPY for August 26 - 2016

analytics57bfda2179cc6.png

Wave summary:

There really is not anything new to add here.

We remain lock in a very narrow range between 112.28 and 114.03. We slightly favor a break towards the upside for a rally to 118.70 and 122.00 as the next upside targets. Only time will tell, what way we are going to break.

Trading recommendation:

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

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

Silver Technical Analysis for August 26, 2016.

Technical outlook and chart setups:

Silver seems to have formed intermediary lows at $18.47 levels yesterday and is seen to be trading at $18.65 levels at this moment. Looking at the wave structure, there is no change and the metal still looks constructive for bulls to stage a rally from here. Please note that the metal has terminated a regular flat (a-b-c) as wave 4 consolidation. Furthermore, it 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 levels. It is hence recommended to remain long now, with stop below $18.25 levels. Immediate resistance is seen at $19.00/10 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!

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

Gold Technical Analysis for August 26, 2016.

Technical outlook and chart setups:

Gold looks to have formed intermediary bottom at $1,318.00 levels yesterday and is seen to be trading at $1,324.00 levels at this moment. Please note that the yellow metal still looks to be constructive for bulls to regain control, till prices stay above $1,310.00 levels, which is the wave a low within the triangle structure as depicted here. The wave structure continues to indicate that the metal seems to have terminated its wave c, within its triangle consolidations at $1,318.00 levels and should be looking to push higher. 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, target $1,358.00 and $1,390.00

Good luck!

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

Daily analysis of major pairs for August 26, 2016

EUR/USD: On this currency trading instrument, there are mixed signals. The Williams' % Range period 20 is inot far from the oversold region while the EMA 11 is above the EMA 56. It is most likely that the Williams' % Range would slope upwards to agree with the positions of the EMAs, forming a clean bullish signal as bulls begin to target the resistance lines at 1.1300 and 1.1350. This is the expectation for next week.

1.png

USD/CHF: There is a bullish signal on the USD/CHF, which would also lead to a Bullish Confirmation Pattern in the 4-hour chart as soon as price goes above the resistance level at 0.9750, which is the most probable line of action when momentum returns to the market.

2.png

GBP/USD: Since this market tested the distribution territory is at 1.3250, price has been corrected lower a bit. However, the outlook on the market is still bullish in the near term. Although the Williams' % Range period 20 is sloping downwards in conjunction with the extant shallow bearish correction, the EMA 11 remains above the EMA 56. It is possible that price would go back upwards, even beyond the distribution territory at 1.3250.

3.png

USD/JPY: The bias on the USD/JPY has turned neutral. A further sideways movement for more several trading days would eventually lead to a tighter condition in the market, as shown by the low volatility across the markets. However, there is going to be a breakout next week, which would most possibly favor bears.

4.png

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 next week, 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.

5.png

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

Technical analysis of EUR/USD for Aug 26, 2016

!!!_EURUSD.jpg

When the European market opens, some economic data will be released such as Italian 10-y Bond Auction, Private Loans y/y, M3 Money Supply y/y, GfK German Consumer Climate.The US will release the economic data too such as Revised UoM Inflation Expectations, Revised UoM Consumer Sentiment, Fed Chair Yellen Speaks, Prelim GDP Price Index q/q, Goods Trade Balance, Prelim GDP q/q, so amid the reports, EUR/USD will move in a low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Breakout BUY Level: 1.1337.

Strong Resistance:1.1331.

Original Resistance: 1.1320.

Inner Sell Area: 1.1309.

Target Inner Area: 1.1283.

Inner Buy Area: 1.1257.

Original Support: 1.1246.

Strong Support: 1.1235.

Breakout SELL Level: 1.1229.

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 26, 2016

!_USD_JPY.jpg

In Asia, Japan will release the BOJ Core CPI y/y, National Core CPI y/y, Tokyo Core CPI y/y and the US will release some economic data such as Revised UoM Inflation Expectations, Revised UoM Consumer Sentiment, Fed Chair Yellen Speaks, Prelim GDP Price Index q/q, Goods Trade Balance, Prelim GDP q/q. So there is a probability the USD/JPY will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Resistance. 3: 100.98.

Resistance. 2: 100.78.

Resistance. 1: 100.59.

Support. 1: 100.34.

Support. 2: 100.14.

Support. 3: 99.94.

Disclaimer: Trading Forex (foreign exchange) on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

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

Daily analysis of USDX for August 26, 2016

Thursday's session for USDX was pretty calm in terms of price action, as the index remains below the 200 SMA at H1 chart. A support can be seen around the 94.65 level, where a breakout can deliver a bearish momentum towards the 94.32 level. However, a rebound shall not be discarded and eventually it can attempt a short-term rally to the 95.00 level.

USDXH1.png

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 is 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 26, 2016

The pair found resistance at the 1.3258 level and now it's expected to remain in sideways ahead of Jackson Hole due today. Currently, GBP/USD is supported by the 1.3170 price zone, which is very close to the 200 SMA. Now, we could expect a rally towards the 1.3258 level, where a breakout should happen in order to test the 1.3358 level.

GBPUSDH1.png

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.

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