NZD/USD Intraday technical levels and trading recommendations for September 1, 2016

analytics57c8316267814.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).

As anticipated, the price zone of 0.7350 - 0.7400 (upper limit of the depicted channel) offered 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 0.7300.

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 September 1, 2016

analytics57c82bcf838d8.pnganalytics57c82be2c0e54.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 constitutes the recent supply zone to be watched for new SELL entries if any bullish pullback extends above 1.3550 (Significant Supply level to be watched as well).

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

Intraday technical levels and trading recommendations for EUR/USD for September 1, 2016

analytics57c82b1c7d3da.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, June and August).

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).

analytics57c82b35b3ddb.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 July 27, the EUR/USD pushed above the price zone of 1.1000-1.0950 (previous consolidation range). Hence, further bullish advance towards 1.1250 was executed as expected.

Temporary bullish breakout was expressed above the price zone of 1.1250 (Supply Level 1). However, significant bearish rejection was expressed on Friday.

Re-closure below 1.1250 (Supply Level 1) maintains enough bearish pressure and enhances the bearish side in the market. Initial bearish targets are located at 1.1050 and 1.0990.

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

EUR/NZD analysis for September 01, 2016

analytics57c81045b4110.png

Recently, EUR/NZD has been moving downwards. As I expected, the price tested the level of 1.5311 in a high volume. According to the 1H time frame, I found strong selling pressure and a downward trend. Today according to the 30M time frame, I found two down fractals. The first fractal is set at the price of 1.5317 (already filled) and second one is set at the price of 1.5311. My advice is to place a pending order (sell stop) at the price of 1.5310 with stop loss at 1.5411. The first downward target is set at the price of 1.5225 and the second target is seen at 1.5115.

Fibonacci Pivot Points:

Resistance levels

R1: 1.5425

R2: 1.5450

R3: 1.5490

Support levels:

S1: 1.5350

S2: 1.5325

S3: 1.5285

Trading recommendations for today: Watch for selling opportunities.

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

Gold analysis for September 01, 2016

analytics57c80acc186c1.png

Since our previous analysis, Gold has been trading downwards. As I expected, the price tested the level of $1,303.97 in a ultra high volume. According to the 1H time frame, I found strong selling pressure in the market. So, be careful when buying gold and watch for selling opportunities. I found two down fractals today according to the 1H time frame. The first one is set at the price of $1,305.00 (already filled) and the second fractal is set at the price of $1,304.00. My advice is to place pending order (sell stop) at the price of $1,304.00 with potential stop loss at $1,311.70. Take profit level is set at the price of $1,292.35.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,311.65

R2: 1,316.40

R3: 1,319.00

Support levels:

S1: 1,304.25

S2: 1,301.60

S3: 1,296.85

Trading recommendations for today: Watch for selling opportunities.

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

Technical analysis of NZD/USD for September 01, 2016

NZDUSDH1.png

Overview:

  • The NZD/USD pair movement was controversial as it took place in a narrow sideways channel, the market showed signs of instability. Amid the previous events, the price is still moving between the levels of 0.7203 and 0.7313. Also, the daily resistance and support are seen at the levels of 0.7245 and 0.7203 respectively. Therefore, it is recommended to be cautious while placing orders in this area. So, we need to wait until the sideways channel has completed. This week, the market moved from its bottom at 0.7204 and continued to rise towards the top of 0.7271. Today, in the one-hour chart, the current rise will remain within a framework of correction. However, if the pair fails to pass through the level of 0.7291, the market will indicate a bearish opportunity below the strong resistance level of 0.7291 (the level of 0.7291 coincides with the double top too). Since there is nothing new in this market, it is not bullish yet. Sell deals are recommended below the level of 0.7291 with the first target at 0.7245. If the trend breaks the support level of 0.7245, the pair is likely to move downwards continuing the development of a bearish trend to the level 0.7203 in order to test the double bottom in the H1 time frame.
The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of USD/CHF for September 01, 2016

USDCHFH4.png

Overview:

  • As expected the USD/CHF pair continues to move upwards from the level of 0.9792. Yesterday, the pair rose from the level of 0.9792 (this level of 0.9792 represents the first support)) to the top around 0.9861. Today, the first resistance level is seen at 0.9901 followed by 0.9949, while daily support 1 is seen at 0.9792. According to the previous events, the USD/CHF pair is still moving between the levels of 0.9792 and 0.9949; for that we expect a range of 157 pips (0.9949 - 0.9792). If the USD/CHF pair fails to break through the resistance level of 0.9949, the market will decline further to 0.6546. This would suggest a bearish market because the RSI indicator is still in a positive area and does not show any trend reversal signs. The pair is expected to drop lower towards at least 0.9792 in order to retest the daily support. On the contrary, if a breakout takes place at the resistance level of 0.9949 (the double top), then the trend will call for a strong bullish market in coming hours.
The material has been provided by InstaForex Company - www.instaforex.com

Global macro overview for 01/09/2016

Global macro overview for 01/09/2016:

The CB Consumer Confidence data were published lately and confidence among American shoppers improved unexpectedly in August. According to the Conference Board's monthly survey, the Consumer Confidence Index increased to 101.1 points in August, while the July's reading was at the level of 96.7. The majority of economists anticipated a slighter increase to the level of 97.1, but figures have beaten the expectations. In conclusion, this survey is closely correlated with consumer attitudes towards business conditions, personal finances, jobs and short-term outlook and we can clearly see, that the consumer sentiment still remains positive among Americans as the reading above 90 indicates an economic expansion.

Let's now take a look at the EUR/USD technical picture in 4H time frame. The key support at the level of 1.1122 had been tested twice so far, but the bull camp did not manage to bounce significantly and the pair rallied towards the next resistance at the level of 1.1243. This means the downside pressure is still strong and we should see the test of the next important support at the level of 1.1043 any time soon.

analytics57c7fb1e15708.jpg

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

Global macro overview for 01/09/2016

Global macro overview for 01/09/2016:

The UK Manufacturing PMI was released this morning and the index surprised market participants. The expected score of 49.1 was beaten by much stronger 53.3 and both of them were better than last month figure of 48.2. According to Markit, manufacturing production increased in August at the fastest pace in seven months. The biggest gain was noted in new export orders component, it was the highest since June 2014 at 54.9 vs 51.4 previously. In conclusion, the reading is much stronger, but all in all the manufacturing sector will give a limited contribution to GDP.

Let's take a look at the GBP/USD technical picture in the daily time frame. The data has given the price a lift and the market has almost hit a 55-period moving average, but still is trading below it. Moreover, the important key resistance at the level of 1.3365 hasn't been violated as well, so the bear camp is still in control over this market.

analytics57c7f8b3cecf7.jpg

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

Daily analysis of major pairs for September 1, 2016

EUR/USD: There is now a clean Bearish Confirmation Pattern in this market. Price has gone down almost 200 pips since August 26, 2016, and it is supposed to continue going further downwards, reaching the support lines at 1.1100 and 1.1050 today or tomorrow. Any rallies that are seen here should be taken as opportunity to go short.

1.png

USD/CHF: There is now a clean Bullish Confirmation Pattern in this market. Price has moved upwards by over 240 pips since August 22, 2016; and it is supposed to continue going upwards, reaching the resistance levels at 0.9900 and 0.9950. Price is now above the support level at 0.9850.

2.png

GBP/USD: The Cable has recently gathered some stamina, which has brought about a new bullish signal in the market. It would be remembered that the recent bias on the market is bullish in the short term and bearish in the long term. Price has gone upwards 140 pips today, now above the accumulation territory at 1.3200 and testing the distribution territory at 1.3250. Further northward movement is possible.

3.png

USD/JPY: The USD/JPY cross has continued the bullish journey it started on August 26, 2016. Since then, price has gone upwards 330 pips, now testing the supply level at 103.50. The next target for bulls are located at the supply levels of 104.00 and 104.50. Unless there is a significant stamina in the JPY, those targets would be attained this week or next.

4.png

EUR/JPY: The EUR/JPY cross has continued the bullish journey it started last Friday. Since then, price has gone upwards 220 pips, now above the demand zone at 115.00. The next target for bulls are located at the supply zones at 116.00, 116.50 and 117.00. These targets remain rational until there is a considerable amount of stamina JPY.

5.png

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

Technical analysis of EUR/JPY for September 1, 2016

General overview for 01/09/2016:

The new higher high was made yesterday and it is labeled as the top of the wave iii. Currently, the possibility of a corrective cycle is still high as the market is developing the triangle pattern. Nevertheless, please notice that any break out below the intraday support at the level of 115.01 will decrease the chances for an upside rally.

Support/Resistance:

115.43 - Intraday Resistance

115.10 - WR2

115.01 - Intraday Support

114.73 - WR1

114.03 - Intraday Support

113.76 - Weekly Pivot

113.58 - Invalidation Level

113.37 - WS1

112.41 - WS2

Trading recommendations:

All buy orders recommended last week should now move their SL to the level of 115.01 and leave TP still open. It is a good level to book profits or modify the order to trail the stop loss with a 20-pips range.

analytics57c7f60b05177.jpg

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

Technical analysis of USD/CAD for September 1, 2016

General overview for 01/09/2016:

The clear bearish divergence supports the view, that the top is in place and now a correction should develop. This means the recent rally might be either wave 3 of the bullish progression or wave c purple of a more complex and time-consuming corrective cycle of a higher degree. Any violation of the intraday support at the level of 1.2965 will invalidate the impulsive bullish scenario.

Support/Resistance:

1.2777 - WS2

1.2831 - Wave 2/b Bottom

1.2907 - WS1

1.2958 - Weekly Pivot

1.3032 - 61%Fibo

1.3045 - Intraday Support

1.3088 - WR1

1.3144 - Intraday Resistance

1.3139 - WR2

Trading recommendations:

All buy orders recommended last week should now move their SL to the level of 1.3087 and leave TP still open.

analytics57c7f47ce1d03.jpg

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

NZD/USD reacted off our selling area perfectly, remain bearish.

NZD/USD touched our selling area and dropped perfectly from it once again. 0.7268 is a key resistance level (Fibonacci retracement, Fibonacci projection, multiple horizontal pullback resistance) that we intend to keep selling off for a further drop to 0.7210.

RSI (21) is approaching pullback resistance where we expect another reaction from.

analytics57c7e15e82428.png

Sell below 0.7268 resistance. Stop loss is at 0.7300. Take profit is at 0.7210.

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

AUD/USD close to resistance, look to sell.

AUD/USD is close to strong resistance at 0.7535 (Fibonacci retracement, horizontal overlap resistance) where we expect a quick reaction off for a drop to 0.7480.

Stochastics (21,5,3) is also approaching major resistance at 81%.

analytics57c7e143acab0.png

Sell below 0.7535. Stop loss is at 0.7580. Take profit is at 0.7480.

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

Technical analysis of USDX for September 1, 2016

The Dollar index continues to trade in an uptrend but with oscillators at overbought levels providing divergence signs, Dollar bulls need to be very cautious. NFP figures are to be announced tomorrow and volatility is expected to pick up tomorrow.

analytics57c7dc7d861f3.jpg

Black line - resistance

Blue line - medium-term support

The Dollar index is making higher highs and higher lows. Trend remains bullish for the short-term after the breakout above the 4-hour cloud. Price held nicely above the blue trend line support and is now testing the resistance at 96.50. The most possible scenario for me is to see a price rejection tomorrow and a Dollar pullback.

analytics57c7dd0aa29ce.jpg

Green line - trend line support

The weekly candle is heading towards weekly cloud resistance at 96.50. This will be a great test for the medium-term trend. As long as price is above the green trend line support, bulls will remain in control with the bullish scenario having more chances of success.

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

Technical analysis of Gold for September 1, 2016

Gold price continues lower towards $1,300 and is expected to break below it and reach $1,290-80 support area. The decline in Gold is getting oversold and at least for a short-term bounce there are many good chances.

analytics57c7db83e770c.jpg

Black line -resistance trend line

Red line - support trend line

Green rectangle - support area

Gold price has broken through the green rectangle support area as we expected and is heading towards $1,290-80 support trend line. Oversold oscillators provide a warning for Gold bears. With NFP numbers announced tomorrow I expect the bullish reversal to happen then. Short-term support is at $1,280-90 and resistance at $1,318.

analytics57c7dbe84be8a.jpg

Blue lines - bullish channel

As expected price is heading towards the lower blue boundary and the yellow weekly kijun-sen indicator. This target was given once price broke down below the red tenkan-sen indicator. Short-term trend is bearish. Critical support is around $1,280 area.

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

Elliott wave analysis of EUR/NZD for September 1, 2016

analytics57c7c8bf61d85.png

Wave summary:

Another disappointing performance has been seen. We remain locked between support near 1.5283 and resistance near 1.5416. We continue to favor the upside and a break above minor resistance at 1.5416 for a rally higher towards 1.5649 and 1.5839 on the way higher. That said, we will have to accept that as long as minor resistance at 1.5416 is able to protect the upside, a little more downside pressure could be seen. But at no circumstance should support at 1.5187 be broken.

Trading recommendation:

We are long EUR from 1.5370 with stop placed at 1.5180. If you are not long EUR yet, then only buy a break above 1.5416 and use the same stop at 1.5180.

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

Technical analysis of USD/JPY for September 01, 2016

USDJPYM30.png

USD/JPY is expected to trade with a bullish bias. The pair is holding on the upside above its significant key support at 102.80 which should limit the downside attempts. The 50-period moving average is well directed, and maintains a bullish outlook. Even though a continuation of the consolidation cannot be ruled out, its extent should be limited. On the economic data front, MBA mortgage applications improved by 2.8% in week ended August 26th from a fall of 2.1% in the previous week. On the other hand, ADP employment change fell to 177k in August (estimated 175k) compared to 194k in July (revised from 179k). Separately, the Chicago purchasing manager index decreased in August to 51.5 (forecasted 54) from 55.8 in the previous month. In other news, pending home sales increased by 1.3% MoM in July (estimated 0.7%) from a decline of 0.8% in June (revised from +0.2%).

Until102.80 is not broken, the intraday outlook stays positive with a first up target at 103.65. A break above this level would open the way to further upside toward the next resistance at 103.95.

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 103.65 and the second one at 103.95. In the alternative scenario, short positions are recommended with the first target at 102.40 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 102.10. The pivot point is at 102.80.

Resistance levels: 103.65, 103.95, 104.50

Support levels: 102.40, 102.10, 101.65

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

Elliott wave analysis of EUR/JPY for September 1, 2016

analytics57c7c7069141e.png

Wave summary:

The impulsive rally from 113.11 continues to unfold nicely. The next upside target to look for is seen in the 116.19 - 116.36 area, but longer term, we continue to look for much higher levels.

Short-term resistance is seen at 114.96 and then at 114.62 that should be able to protect the downside for a break above minor resistance at 115.43 for the expected rally towards 116.19.

Trading recommendation:

We are long EUR from 114.05 and will move stops higher to 114.50 securing a profit no matter what happens. If you are not long EUR yet, then buy near 114.96 or upon a break above 115.43 use the same stop at 114.50.

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

Technical analysis of USD/CHF for September 01, 2016

USDCHFM30.png

USD/CHF is expected to keep momentum as the bias remains bullish. The pair is trading above its 20-period and 50-period moving averages. The relative strength index is above its neutrality area at 50 and lacks downward momentum. A support base at 0.9790 has formed and should limit the downward attempts. On the economic data front, MBA mortgage applications improved by 2.8% in week ended August 26th from a fall of 2.1% in the previous week. On the other hand, ADP employment change fell to 177k in August (estimated 175k) compared to 194k in July (revised from 179k). Separately, the Chicago purchasing manager index decreased in August to 51.5 (forecasted 54) from 55.8 in the previous month. In other reports, pending home sales increased by 1.3% MoM in July (estimated 0.7%) from a decline of 0.8% in June (revised from +0.2%).

In conclusion, as long as this level holds on the downside, we are still positive with an up target at 0.9900. A break above this level would open the way to further upside toward the next resistance at 0.9945.

Resistance levels: 0.9900, 0.9945, 0.9975

Support levels: 0.9760, 0.9735, 0.9685

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

Technical analysis of NZD/USD for September 01, 2016

NZDUSDM30.png

NZD/USD is expected to trade with a bearish bias as key resistance is seen at 0.726590. The pair is trading below its 20-period and 50-period moving averages, which are playing resistance roles. The relative strength index is below its neutrality area at 50 and lacks upward momentum. In addition, 0.7290 represents a significant key resistance, and the upside potential should be limited by this level. At this prospect, until 0.7290 is not broken above, the pair is likely to pull back to its next support at 0.7200. A break below this level would open the way to further weaknesses toward the next support at 0.7160.

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 0.7200. A break of this target will move the pair further downwards to 0.7160. The pivot point stands at 0.7290. 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 0.7340 and the second one, at 0.7380.

Resistance levels: 0.7340, 0.7375, 0.7410

Support levels: 0.7200, 0.7160, 0.7120

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

Technical analysis of GBP/JPY for September 01, 2016

GBPJPYM30.png

GBP/JPY is expected to keep momentum. The pair is trading above its rising 50-period moving average, which acts as support and maintains the upside bias. The relative strength index is above its neutrality level at 50. Additionally, a support base has been formed around 134.85, which should limit the downside potential. Above 134.85, look for a further upside toward 115.60 and even 136.30 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 136.30 and the second one at 136.70. In the alternative scenario, short positions are recommended with the first target at 133.90 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 133.90. The pivot point is at 134.85.

Resistance levels: 136.30, 136.70, 137.35

Support levels: 134.40, 133.90, 133.30

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

Technical analysis of EUR/USD for Sept 01, 2016

!!!_EURUSD.jpg

When the European market opens, some economic data will be released such as eurozone Final Manufacturing PMI, German Final Manufacturing PMI, French Final Manufacturing PMI, Italian Manufacturing PMI, and Spanish Manufacturing PMI. The US will a series of macroeconomic reports too such as Total Vehicle Sales, Natural Gas Storage, ISM Manufacturing Prices, Construction Spending m/m, ISM Manufacturing PMI, Final Manufacturing PMI, Revised Unit Labor Costs q/q, Revised Nonfarm Productivity q/q, Unemployment Claims, and Challenger Job Cuts y/y. So amid the reports, EUR/USD will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Breakout BUY Level: 1.1208.

Strong Resistance:1.1202.

Original Resistance: 1.1191.

Inner Sell Area: 1.1180.

Target Inner Area: 1.1154.

Inner Buy Area: 1.1128.

Original Support: 1.1117.

Strong Support: 1.1106.

Breakout SELL Level: 1.1100.

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 Sept 01, 2016

!_USD_JPY.jpg

In Asia, Japan will release the 10-y Bond Auction, Final Manufacturing PMI, and Capital Spending y/y. The US will release a series of macroeconomic reports such as Total Vehicle Sales, Natural Gas Storage, ISM Manufacturing Prices, Construction Spending m/m, ISM Manufacturing PMI, Final Manufacturing PMI, Revised Unit Labor Costs q/q, Revised Nonfarm Productivity q/q, Unemployment Claims, and Challenger Job Cuts y/y. So there is a probability the USD/JPY pair will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Resistance. 3: 103.67.

Resistance. 2: 103.46.

Resistance. 1: 103.26.

Support. 1: 103.00.

Support. 2: 102.80.

Support. 3: 102.60.

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 September 01, 2016

USDX is still capped by the resistance level of 96.14, where the sellers are actively trying to push the index lower towards the 95.79 level. A bullish attempt to break that resistance zone should open the doors to reach the 96.49 level, where the index may start performing a complex correction in the nearest term. MACD indicator supports the idea of corrective phase.

USDXH1.png

H1 chart's resistance levels: 96.14 / 96.49

H1 chart's support levels: 95.79 / 95.49

Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the USD Index breaks with a bullish candlestick; the resistance level is at 96.14, take profit is at 96.49 and stop loss is at 95.79.

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

Daily analysis of GBP/USD for September 01, 2016

GBP/USD is performing a rebound and hovering to consolidate above the 200 SMA on the H1 chart. A strong resistance lies at the 1.3170 level which should open doors towards the 1.3258 level. As long as the pair remains inside this range, we can expect sideways moves to be alive until this Friday's US non-farm payrolls data. Next support is located at the 1.3085 zone.

GBPUSDH1.png

H1 chart's resistance levels: 1.3170 / 1.3258

H1 chart's support levels: 1.3085 / 1.3003

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 1.3170, take profit is at 1.3258 and stop loss is at 1.3085.

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

Technical analysis of USD/JPY for August 31, 2016

USDJPYM30.png

USD/JPY is expected to trade with a bullish bias. The pair recorded a succession of higher tops and higher bottoms since August 30, which confirms a bullish view. The rising 50-period moving average is playing a support role and maintains a positive bias. The relative strength index is still above its neutrality area at 50. A support base at 102.40 has formed and should limit the downside potential. As long as this key level is a support, look for a further rise to 103.65 and 103.95 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 103.65 and the second one, at 103.95. In the alternative scenario, short positions are recommended with the first target at 102.10 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 100.50. The pivot point is at 102.40.

Resistance levels: 103.65, 103.95, 104.50

Support levels: 102.10, 101.65, 101.30

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

Technical analysis of USD/CHF for August 31, 2016

USDCHFM30.png

USD/CHF is expected to trade with a bullish bias. The pair holds on the upside and is now challenging its nearest resistance at 0.9790. Meanwhile, a support base at 0.9790 has been formed, and the downside potential should be limited by this level. The rising 50-period moving average is playing a support role and maintains a bullish bias. In addition, the relative strength index is above its neutrality area at 50. On Tuesday, U.S. indices closed lower weighted down by shares in the Utilities, Consumer Durables & Apparel and Retailing sectors. The Dow Jones Industrial Average dropped 49 points (0.2%) to 18454, the S&P 500 slipped 4 points (0.2%) to 2176, and the Nasdaq Composite dipped 9 points (0.2%) to 5223. U.S. government bonds were relatively flat. The benchmark 10-year U.S. Treasury yield rose to 1.570% from 1.566% in the previous session.

Hence, as long as 0.9790 holds as a support, look for further advance to 0.9900 and even to 0.9945 as likely.

Resistance levels: 0.9900, 0.9945, 0.9975

Support levels: 0.9760, 0.9735, 0.9685

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