EUR/NZD analysis for October 07, 2016

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Recently, EUR/NZD has been moving sideways at the price of 1.5545. On the 30M time frame, I found potential topping formation and successful rejection from the point of control levels in the background, using the market profile analysis, which is sign that buying looks riksy. The level of 1.5600 was held successfully, and the sellers came in from that point. My advice is to watch for selling opportunities. Anyway, I would like to see breakout of support at the price of 1.5525 to confirm downward movement. Downward target is set at the price of 1.5350.

Fibonacci Pivot Points:

Resistance levels

R1: 1.5640

R2: 1.5665

R3: 1.5710

Support levels:

S1: 1.5550

S2: 1.5520

S3: 1.5475

Trading recommendations for today: Watch for selling opportunities on the pullbacks.

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Gold analysis for October 07, 2016

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Since our previous analysis, gold has been trading upwards. The price tested the level of $1,264.67 in a high volume. Using the market profile analysis, I noted the yesterday's point of control at $1,264.70 and the price respected that level, which is sign that buying looks risky. Gold is in downward trend, so watch for selliing opportunities. Targets set at the price of $1,250.60, $1,247.00 and $1,236.50.

Fibonacci pivot points:

Resistance levels:

R1: 1,260.90

R2: 1,264.50

R3: 1,270.40

Support levels:

S1: 1,249.00

S2: 1,245.50

S3: 1,239.60

Trading recommendations for today: Watch for selling opportunties. Take profit level is set at the price of $1,250.60.

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EUR/AUD remains bullish

It is recomended to buy EUR/AUD above 1.4715 support (channel exit) for a push up to 1.4845.

RSI (21) has made a bullish exit as expected and this keeps our bullish view on EUR/AUD.

Buy above 1.4715. Place stop loss at 1.4670 and take profit at 1.4845.

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NZD/USD intraday technical levels and trading recommendations for October 7, 2016

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Bullish persistence above 0.6550 (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 (lower limit of the depicted channel). That is 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 upper limit of the depicted channel around 0.7400.

On July 12, the price zone of 0.7350 - 0.7400 (upper limit of the depicted channel) enhanced a quick bearish decline towards the price levels of 0.6960 where the current bullish swing was initiated.

Recently, the price zone between 0.7470-0.7500 has been corresponding to the upper limit of the depicted movement channel where bearish rejection and a valid SELL entry were expressed a month ago.

S/L should be lowered to 0.7200 to secure some profits. T/P levels should be located at 0.7160 and 0.7060.

On the other hand, the price zone between 0.6960-0.6860 constitutes a significant support zone to be watched for a valid BUY entry when the current bearish swing extends below 0.7100.

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Intraday technical levels and trading recommendations for GBP/USD for October 7, 2016

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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 (Fundamental Reasons).

Bearish persistence below the demand level at 1.3550 enhanced the bearish scenario towards the current price levels around 1.2700 (nearest bearish projection target).

Note that the GBP/USD pair will remain trapped inside the depicted consolidation range between 1.2700 and 1.3550 until breakout occurs in either direction.

Daily persistence below 1.2700 confirms a bearish Flag pattern. Bearish projection target will be located around 1.2020 if enough bearish pressure is maintained below 1.2700.

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EUR/USD profit target reached perfectly, turn bullish

The price dropped perfectly to our profit target yesterday. Today we turn bullish right on the major support at 1.1135 (channel support, Fibonacci projection) for a push up to 1.1190 at least.

Stochastics (21,3,3) is right above 6% major support.

RSI (34) is displaying bullish divergence vs price, signalling a bullish bounce is expected.

Buy above 1.1135. Place stop loss at 1.1100 and take profit at 1.1190.

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Intraday technical levels and trading recommendations for EUR/USD for October 7, 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, 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).

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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 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.

Temporary bullish breakout was expressed above the price zone of 1.1250 (supply level 1). However, significant bearish rejection was seen on August 26.

On September 6, evident bullish recovery and a temporary bullish breakout above 1.1250 were expressed again, but evident bearish pressure was expressed on the EUR/USD pair on September 16.

Bearish closure below 1.1250 (Supply level 1) should be defended to maintain enough bearish pressure and enhance the bearish side in the market again. Initial bearish targets should be located at 1.1050 and 1.0990.

On the other hand, a daily candlestick closure above 1.1250 (Supply level 1) allows bullish advance towards 1.1400 (Supply level 2) where a better SELL entry can be offered (Low Probability).

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AUD/USD has dropped perfectly to buying level

As expected, the price has dropped perfectly to our major support at 0.7575 (Fibonacci projection, Fibonacci retracement, horizontal support) from which we expect a bounce for a push up to 0.7645.

Stochastics (21,3,3) has bounced off 12% support triggering a bullish move.

Buy above 0.7575. Place stop loss at 0.7525 and take profit at 0.7645.

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AUD/NZD dropped to buying level

As expected, the price has dropped to our buying level of 1.0575 acting as the major support (Fibonacci retracement, horizontal overlap support), and we expect a push up from here.

RSI (34) is on pullback support.

Buy above 1.0575. Place stop loss at 1.0555 and take profit at 1.0635.

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EUR/USD Technical Analysis for October 07, 2016.

Technical outlook and chart setups:

The EUR/USD pair has completed a complex corrective wave structure by printing intraday lows at 1.1103 level today. The pair has pulled back sharply since then and is now trading at 1.1140, looking to continue a further rally. Looking at the wave structure, the pair has completed waves A-B-C corrective structure, each consisting of 3 waves. Besides, please note that a morning star bullish candlestick pattern is also underway, indicating a reversal here. A push above 1.1280 level would accelerate further upside towards 1.1400 level. It is hence recommended to remain long, with risk at 1.1040 level. Immediate resistance is seen at 1.1283 level, while support is seen at 1.1045 level respectively.

Trading recommendations:

Remain long, stop at 1.1040, a target is open.

Good luck!

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Silver Technical Analysis for October 07, 2016.

Technical outlook and chart setups:

Silver looks to have formed interim lows at $17.00 level before pulling back higher. The metal is seen to be trading at $17.34 level for now, looking to stage a counter trend rally towards $19.00 level. The wave structure also indicates that the metal is into its wave C correction within the 3-wave A-B-C drop that began from $21.10 level earlier. The metal is expected to form base around $16.50/60 levels which is also the fibonacci 0.618 support of the entire rally between $13.70 and $21.10 levels respectively. It is recommended to book profits on short positions taken earlier and wait for opportunities to sell again. Immediate resistance is seen at $19.60 level, while support is at $17.00 level respectively.

Trading recommendations:

Please take profits on short positions taken earlier and remain flat for now.

Good luck!

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Gold Technical Analysis for October 07, 2016.

Technical outlook and chart setups:

Gold counter trend rally is awaited and should materialize today. The yellow metal has bounced off $1,250.00 level as expected which is fibonacci 0.382 support of the entire rally between $1.046.00 and $1,375.00 levels respectively. The metal seems to have now completed its first leg A within the A-B-C corrective structure. The metal is seen to be trading at $1,257.00 level for now, looking to rally through $1,290.00 levels at least before it could find resistance. The wave structure indicates that the metal is expected hit the past support turned resistance zone at $1,310.00 levels, which is fibonacci 0.50% of the entire drop as depicted here. It is recommended to remain flat now and look to sell around $1,290.00/92.00 levels again. Immediate resistance is now seen at $1,305.00/10.00 levels, while support is at $1,250.00 level respectively.

Trading recommendations:

Remain flat for now. Aggressive traders long now with stop at $1,240.00 level, targeting $1,310.00.

Good luck!

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Technical analysis of AUD/CHF for October 7, 2016

AUD/CHF is trading right at the 50% Fibonacci support level (0.7430) which is the trendline breakout point. On a corrective wave down, price formed a bullish divergence on MACD which could mean that trend up is about to continue.

If AUD/CHF manages now to hold 0.7430 support, consider buying on the breakout of the most recent high - 0.7445, targeting either 23.6% (0.7526) or 0% Fibs (0.7612). The stop loss should be just below 61.8% Fibs (0.7387)

Support: 0.7387, 0.7430

Resistance: 0.7473, 0.7526, 0.7612

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Technical analysis of NZD/CAD for October 7, 2016

NZD/CAD seems to find a resistance near 38.2% Fibs (0.9464) but hasn't tested yet any of the downside targets.

Consider holding NZD/CAD shorts from 0.9500 to target either 23.6% (0.9410) or 0% Fibs (0.9327). The stop loss can be moved lower, just above the 50% Fibs level (0.9506).

Support: 0.9411, 0.9327

Resistance: 0.9464, 0.9506, 0.9548

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Technical analysis of NZD/USD for October 07, 2016

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Overview:

  • The NZD/USD pair opened below the daily pivot point (0.7180).
  • It continued moving downwards from the level of 0.7130 to the bottom around 0.7126.
  • Today, the first resistance level is seen at 0.7180 followed by 0.7238 while daily support 1 is seen at 0.7133.
  • Furthermore, the moving average (100) starts signaling a downward trend; therefore, the market is indicating a bearish opportunity below 0.7133.
  • So it will be good to sell at 0.7133 with the first target of 0.7100. It will also call for a downtrend in order to continue towards 0.7087 to test the double bottom.
  • The strong daily support is seen at the 0.7087 level, which represents the double bottom on the H4 chart.
  • According to the previous events, we expect the NZD/USD pair to trade between 0.7133 and 0.7087 in coming hours.
  • The price area of 0.7180 - 0.7133 remains a significant resistance zone. Thus, the trend is still bearish as long as the level of 0.7180 is not broken.
  • On the contrary, in case a reversal takes place and the NZD/USD pair breaks through the resistance level of 0.7180, then a stop loss should be placed at 0.7250.
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Daily analysis of Gold for October 07, 2017

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Overview

The gold price touched our awaited target at $1,249.94 and showed bullish rebound from there. The price is likely to regain the main bullish trend after the correctional decline that prevailed in the dynamic since touching the recently recorded top at $1,375.00. Stochastic shows clear positive signals on the four-hour time frame. Therefore, the bullish bias are expected in the upcoming sessions unless a break of $1,249.94 levels that will push the price to target $1,211.31 levels mainly. Awaited positive targets begin by a breach of $1,297.74 level to confirm the rise continuation on the short- and mid-term basis. The expected trading range for today is between the $1,240.00 support and $1,285.00 resistance.

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Daily analysis of Silver for October 07, 2017

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Overview

The silver price broke the $17.43 level strongly and closed yesterday's trading below it, which puts the price under more negative pressure, targeting $46.56 areas as the next main station. Therefore, the bearish trend will remain dominant in the upcoming trading supported by the EMA50. A breach of $17.43 levels will stop the current negative pressure and make the price attempt to recover; its main targets begin at $18.30 and extend to $19.38. The expected trading range for today is between the $16.90 support and $17.65 resistance.

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Technical analysis of USD/CHF for October 07, 2016

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Overview:

  • The USD/CHF pair faced strong resistance at the levels of 0.9833 because the level of 0.9833 represents a double top on the H1 time frame. So, the strong resistance has already formed at the level of 0.9833 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 0.9833, the market will indicate a bearish opportunity below the new strong resistance level of 0.9833. But, the RSI starts signaling an upward trend, as the trend is still showing strength above the moving average (100). Thus, the market is indicating a bullish opportunity above 0.9759 so it will be good to buy at 0.9810 with the first target of 0.9866. It will also call for an uptrend in order to continue towards 0.9900. The daily strong support is seen at 0.9759. However, the stop loss should always be taken into account, so set your stop loss at the level of 0.9705. Generally, the level of 0.9759 coincides with the 61.8% of Fibonacci, which is expected to act as a major support today. Since the trend is above the 61.8% Fibonacci level, the market is still in an uptrend.
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Global macro overview for 07/10/2016

Global macro overview for 07/10/2016:

Just like yesterday's comments regarding Brexit from German Chancellor Angela Merkel, today's remarks of French President Francois Hollande were rather harsh for all Brexit supporters. Hollande said Britain would have to pay the price for leaving the EU, calling on member countries to respond with "firmness" in order to save the institution from an existential crisis. Moreover, he added: "The UK has decided to do a Brexit, I believe even a hard Brexit", so those statements are rather bold and leave no doubt about how the eurozone policy-makers will negotiate with the United Kingdom's politicians.

Let us now take a look at the GBP/USD technical picture on the daily time frame. Hollande's comments might be the reason behind the 6% flash crash in the recent Asian trading hours. The low in this pair is now a the level of 1.2028 and the next important resistance is at the level of 1.2791. Good news for bulls is that the growing bullish divergence between the price and the momentum oscillator might suggest that the British pound might have just established a multi-year low.

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Global macro overview for 07/10/2016

Global macro overview for 07/10/2016:

The most anticipated event of the week, the Non-Farm Payrolls Change, is scheduled for release at 12:30pm GMT today. After quite good figures from ADP earlier this week, market participants expect the NFP number at the level of 171k, a mere 20k more than the last month figure.The unemployment rate is expected to stay at the same level as a month ago, at 4.9%. Any figures better than anticipated, especially the NFP number bigger than 200k will be considered bullish for the US Dollar and expectations towards the interest rate hike in December 2016 will increase as well.

Let's now take a look at the EUR/USD technical picture in the 4H time frame. The important technical support at the level of 1.1120 was violated overnight and currently the bear camp is in full control over this market. The next support is seen at the level of 1.1043, but in a case of a better than expected NFP number, it will be violated as well and the price might be pushed lower towards the next important support at the level of 1.0950.

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Technical analysis of USD/CAD for October 7, 2016

General overview for 07/10/2016:

The impulsive count has been invalidated due to the wave one and wave two overlaps. Currently, the market has entered the supply zone between the levels of 1.3261 - 1.3281 and this is the line in the sand for bears.The market is still in a corrective cycle and the overall bias hasn't changed: when this corrective cycle is completed, the wave (3) to the downside should start. The longer-term bias is bearish and one more wave to the downside should be expected in this pair.

Support/Resistance:

1.2910 - WS2

1.3000 - Technical Support

1.3028 - 1.3048 - Demand Zone

1.3066 - Intraday Support

1.3144 - Weekly Pivot

1.3233 - Intraday Suport

1.3241 - WR1

1.3261 - 1.3281 - Supply Zone

Trading recommendations:

Day traders should refrain from trading until a clearer trading setup occurs.

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Technical analysis of EUR/JPY for October 7, 2016

General overview for 07/10/2016:

As anticipated yesterday, the market traded lower in order to develop the corrective structure in wave (iv). The wave a of this corrective structure has been done already. The intraday support at the level of 115.33 is the most important level for day traders for now. Please notice, that the overall impulsive bullish wave progression to the upside hasn't been completed yet and higher price levels are expected when the correction is completed.

Support/Resistance:

112.07 - Technical Support

112.83 - WS1

113.50 - Weekly Pivot

114.78 - WR1

115.33 - Intraday Support

115.54 - WR2

116.36 - Intraday Resistance

Trading recommendations:

Day traders should refrain from trading until a more clearer trading setup occurs.

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Technical analysis of USDX for October 7, 2016

With the British pound collapsing overnight and a widespread Dollar strength, price has broken above important support levels and previous short-term highs. Is this a real breakout or a fake one as a result of a thin overnight market? With the announcement of the NFP today, a very interesting trading day is promised.

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Blue lines - bullish channel

The Dollar index remains in its bullish upward sloping channel. Price is now testing the upper channel boundaries. Trend remains bullish. Support is at 96.25 and if broken we could see a decline towards 95.75. Below 95.50 we will have a confirmation of a fake breakout and a very important bearish reversal signal.

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On a weekly basis we finally see the weekly candle break above the weekly cloud resistance. This is an important bullish signal for the longer-term trend of the Dollar index. A rejection today could only be caused by the NFP numbers announced later in the day. A rejection here will be a very bearish signal. Important support levels are now at this week's lows and at 95.20. Next important resistance is at 97.60 the July high. A break above it will increase the chances of a new bull trend starting targeting new highs above 102-103.The material has been provided by InstaForex Company - www.instaforex.com

Elliott wave analysis of EUR/NZD for October 7, 2016

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Wave summary:

The failure to break above resistance at 1.5658 has caused a slightly deeper correction closer to support near 1.5481. We expect the support near 1.5481 will be able to act as a floor for the next and likely successful attempt to break above resistance at 1.5658 for the rally to 1.5969 and likely even closer to 1.6491 as the rally gathers upside momentum.

Trading recommendation:

We are long EUR from 1.5515 with stop placed at 1.5260 Upon break above 1.5658 we will raise our stop to break-even. If you are not long EUR yet, then buy a break above 1.5658 and use the same stop at 1.5515.

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Elliott wave analysis of EUR/JPY for October 7, 2016

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Wave summary:

We continue to expect support in the 115.00 - 115.25 area to protect the downside for the next rally higher to 117.55 to complete wave i of (iii). After a new correction towards close to 115.00 and if the correction in wave ii extend it could move all the way back to 113.66 before the next impulsive rally higher in wave iii of (iii). This wave higher, we will not like to miss.

Trading recommendation:

We are waiting for wave ii of (iii) to unfold. We will place a EUR buy-order at 113.75 with stop placed at 112.00.

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Technical analysis of gold for October 7, 2016

Gold price remains in a downward trend and has reached important medium-term support at $1,250 and from current levels I expect a bounce. The reason will most probably be the NFP numbers announced later today.

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Blue lines - bearish channel

Gold price is in a bearish trend, has broken below the 61.8% Fibonacci retracement, oscillators are diverging at oversold levels and price is approaching the 78.6% Fibonacci level of the rise from $1,200. As can be seen in the chart below, price is also at the 38% Fibonacci retracement of the bigger rise off the $1,045 lows.

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The 38% Fibonacci retracement is important support and around this price level a bounce towards $1,300 is expected. Bears should better protect their profits with trailing stops as this sharp decline will most probably be followed by a sharp bounce. The bounce is expected to reach $1,300-$1,320. Will the NFP provide the causation?Possibly. My longer-term outlook remains intact. I believe Gold around $1,170-$1,100 will be a gift for bulls.The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of USD/JPY for October 07, 2016

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USD/JPY is expected to trade in a higher range. The pair remains trading on the upside within a rising channel since October 4, and stands firmly above its support level at 103.30. At the same time, the ascending 50-period moving average is playing a support role as well, and the downside potential should be limited by this level. On Thursday, U.S. stocks ended little changed as investors awaited the September jobs report, which is seen as the key to determine whether the Federal Reserve will raise interest rates before the year end. The Dow Jones Industrial Average dipped 12 points to 18,268, the S&P 500 edged up 1 point to 2,160, and the Nasdaq Composite was down 9 points (-0.2%) to 5,306.

Shares of Twitter, which has put itself up for sale through auction, dived 20.1% to $19.87 as technology news website Recode reported that Disney and Alphabet's Google would not bid for the company. On the other hand, Wal-Mart shed 3.2% to $69.36 after the company projected flat earnings for fiscal 2018. Whole Foods Market rallied 4.9% to $29.33 on takeover speculation.

On the economic data front, the U.S. Labor Department said initial jobless claims amounted to 249,000 in the week ended October 1, lower than 256,000 expected and 254,000 in the prior week. In fact, the amount of claims was the smallest since November 1973, showing a sign of economic strength.

U.S. non-farm payrolls, to be released tonight, are expected to increase 172,000 in September (vs. +151,000 in August) with the jobless rate remaining unchanged at 4.9%.

To sum up, as long as 103.30 is not broken, look for a further rise toward 104.30 and even to 104.85 as possible.

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 104.30 and the second one at 104.85. In the alternative scenario, short positions are recommended with the first target at 102.65 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 102.00. The pivot point lies at 103.30.

Resistance levels: 104.30, 104.85, 105.25

Support levels: 102.65, 102.00, 101.60

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Technical analysis of USD/CHF for October 07, 2016

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USD/CHF is expected to extend its upward movement. The pair holds on the upside with a succession of higher tops and higher bottoms since October 6. Meanwhile, the rising 50-period moving average is playing a support role and maintains the bullish bias. In addition, a strong support base at 0.9760 has formed and the downward potential should be limited by this level. Besides, the relative strength index is still above its neutrality area at 50. As strong U.S. economic data bolstered the case for the Federal Reserve to raise interest rates in coming months, selling pressure on U.S. government bonds persisted, pushing the benchmark 10-year Treasury yield to 1.741% from 1.718% Wednesday.

As long as 0.9760 is support, look for further advance to 0.9865 and 0.9885 in extension.

Resistance levels: 0.9865, 0.9885, 0.9945

Support levels: 0.9730, 0.9700, 0.9645

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Technical analysis of NZD/USD for October 07, 2016

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NZD/USD is expected to trade with bearish bias as the key resistance lies at 0.7200. The pair posted some technical rebounds, but is still trading below its key resistance at 0.7200, which maintains the strong selling pressure. Meanwhile, the relative strength index is above its neutrality area at 50, but lacks upward momentum. In conclusion, as long as 0.7200 is not broken up, the pair is likely to drop to 0.7100 at first. If breakout occurs, look for further decline to 0.7060 as possible.

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 0.7100. A break below this target will move the pair further downwards to 0.7060. The pivot point stands at 0.7200. 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 0.7250 and the second one at 0.7300.

Resistance levels: 0.7250, 0.7300, 0.7330

Support levels: 0.7100, 0.7060, 0.7005

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Technical analysis of GBP/JPY for October 07, 2016

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GBP/JPY is expected to prevail its downside movement. The pair accelerated on the downside after the bearish breakout of its horizontal level at 131.00. The previous support now acts as a key resistance and should limit any upside moves. Additionally, the pair broke below the lower boundary of the Bollinger Bands, which could indicate a continuation of the bearish trend. The downward momentum is further reinforced by its descending 20-period and 50-period moving averages, which should continue to push the prices lower. The British pound resumed its slump yesterday as GBP/USD shed 1.1% to a fresh 31-year low of 1.2614. On top of fears of the "hard" UK's exit from the European Union, comments by Prime Minister Theresa May fueled uncertainty for the currency. Ms May highlighted the damaging side-effects of the Bank of England's ultra-low interest rate policy.

Hence, as long as 131.00 holds as a resistance, further decline is expected to the next support at 128.00 and even to 127.00 as possible.

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 128.00. A break below this target will move the pair further downwards to 127.00. The pivot point stands at 131. 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 132.30 and the second one at 133.25.

Resistance levels: 132.30, 133.25, 134.10

Support levels: 128, 127, 126

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Daily analysis of major pairs for October 7, 2016

EUR/USD: After several days of indecision, this currency trading instrument started going downwards. The selling pressure was strong enough to push price below the resistance line at 1.1150 (which was once a resistance line). Price could go further downwards, for there is a now a bearish bias on the market.

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USD/CHF: This pair has become a bull market in the short-term. The EMA 11 is above the EMA 56 and the Williams' % Range period 20 is often in the overbought region. Price went up on Monday, dived on Tuesday, and later went up on Wednesday. This shows that it is better to buy dips in this market, for price would continue going upwards to test the resistance level 0.9850, though they would meet a fierce opposition at the resistance level at 0.9900.

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GBP/USD: The GBP/USD pair has gone bearish this week: The major bias is bearish and further downwards movement is expected. There is a Bearish Confirmation Pattern on the 4-hour chart. The accumulation territories at 1.2600 and 1.2550 would soon be breached to the downside.

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USD/JPY: The USD/JPY pair has gone upwards by 280 pips this week, and price is currently testing the supply level at 104.00, which was our target for yesterday. The supply level is almost breached to the upside, and when price goes further upwards, it would be in favor of bulls, targeting another supply level at 104.50.

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EUR/JPY: The movement on this cross is quite similar to the movement on USD/JPY. Price has rallied significantly and this seems just to be the beginning. The EMA 11 is above the EMA 56 and the RSI period 14 is above the level 50. Bulls have now gone above the demand zones at 115.50 and 116.00 (which were our previous targets). The next targets would be the supply zones at 116.50 and 117.00.

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Technical analysis of EUR/USD for Oct 07, 2016

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When the European market opens, some economic data will be released such as French Trade Balance, French Industrial Production m/m, French Gov Budget Balance, and German Industrial Production m/m.The US will also reveal some economic news such as Consumer Credit m/m, Wholesale Inventories m/m, Unemployment Rate, Non-Farm Employment Change, Average Hourly Earnings m/m. Therefore, amid the reports, EUR/USD will move in a medium to high volatility during this day.

TODAY'S TECHNICAL LEVELS:

Breakout BUY Level: 1.1196.

Strong Resistance:1.1190.

Original Resistance: 1.1179.

Inner Sell Area: 1.1168.

Target Inner Area: 1.1142.

Inner Buy Area: 1.1116.

Original Support: 1.1105.

Strong Support: 1.1094.

Breakout SELL Level: 1.1088.

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 Oct 07, 2016

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In Asia, Japan will release the Leading Indicators, Average Cash Earnings y/y, and the US will publish some economic data such as Consumer Credit m/m, Wholesale Inventories m/m, Unemployment Rate, Non-Farm Employment Change, Average Hourly Earnings m/m. So there is a probability the USD/JPY will move with medium to high volatility during this day.

TODAY'S TECHNICAL LEVELS:

Resistance. 3: 104.30.

Resistance. 2: 104.09.

Resistance. 1: 103.89.

Support. 1: 103.64.

Support. 2: 103.44.

Support. 3: 103.23.

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 October 07, 2016

The index posted a fresh multi-month high, following a bullish momentum gained during yesterday's session. We're now seeing a consolidation below the resistance level of 96.74 where a breakout should happen in order to reach the 97.36 level across the board, while a pullback should be taken as a corrective move towards the support level of 96.27 in a first degree.

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H1 chart's resistance levels: 96.74 / 97.36

H1 chart's support levels: 96.27 / 95.79

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 96.74, take profit lies at 97.36 and stop loss is at 96.15.

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

Daily analysis of GBP/USD for October 07, 2016

The pair posted a new multi-year low during Thursday's session and now we can expect a breakout below the 1.2603 level, as GBP continues to show weakness. If we see a breakout lower below the 1.2603 level, then the pair may decline towards the 1.2552 price zone. MACD indicator still supports the bearish scenario.

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H1 chart's resistance levels: 1.2650 / 1.2717

H1 chart's support levels: 1.2603 / 1.2552

Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the GBP/USD pair breaks a bearish candlestick; the support level is at 1.2603, take profit lies at 1.2552 and stop loss is at 1.2656.

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