Gold analysis for October 12, 2016

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Since our previous analysis, gold has been trading sideways at the price of $1,255.00. On the 30M chart, I found yesterday's point of control at $1,259.10, using the market profile. The price respected that level and sellers came in the market. The short-term trend is downward. Watch for selling opportunities. Take proft level is set at the price of $1,241.00.

Fibonacci pivot points:

Resistance levels:

R1: 1,257.15

R2: 1,258.40

R3: 1,260.00

Support levels:

S1: 1,253.00

S2: 1,252.00

S3: 1,250.15

Trading recommendations for today: Watch for selling opportunties. Take profit level is set at the price of $1,241.00.

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EUR/NZD analysis for October 12, 2016

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Recently, EUR/NZD has been moving sideways at the price of 1.5610. On the 30M time frame, I found that the price went back into a trading range and broke the recent swing highs (support levels), which is a sign that EUR/NZD may go lower. According to 30M time frame, the price is below 50SMA, which is a sign that sellers are in control of the market. My advice is to watch for selling opportunties. Take profit level is set at the price of 1.5520.

Fibonacci Pivot Points:

Resistance levels

R1: 1.5735

R2: 1.5775

R3: 1.5845

Support levels:

S1: 1.5600

S2: 1.5560

S3: 1.5495

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

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USD/CAD intraday technical levels and trading recommendations for October 12, 2016

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On May 16, a bullish pullback towards 1.3000 (61.8% Fibonacci level) was expected to offer a valid signal to sell the USD/CAD pair. However, a lack of a significant bearish rejection was manifested during recent consolidations.

On May 18, temporary bullish fixation above 1.3000 (61.8% Fibonacci level) opened the way towards the 1.3180 level where significant bearish pressure was originated.

Bearish persistence below 1.3000-1.2970 (61.8% Fibonacci level) is needed to enhance bearish momentum in the market.

However, on August 18 signs of bullish recovery were manifested around the price level of 1.2830 which led to the current bullish breakout above 1.3000.

This week, daily persistence below 1.2950 (61.8% Fibonacci level) should be achieved in order to enhance the bearish side of the market. Initial bearish targets are located at 1.2670 and 1.2580.

Otherwise, daily persistence above 1.3000 (61.8% Fibonacci level) opens the way towards the price level of 1.3300 (50% Fibonacci level) where price action should be watched for a better SELL entry with a lower risk/reward ratio.

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NZD/USD Intraday technical levels and trading recommendations for October 12, 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. Remaining T/P levels should be located at 0.7060 and 0.6950.

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 12, 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 was trapped inside the depicted consolidation range above 1.2700 until a bearish breakout took place on October 6.

Daily persistence below 1.2700 confirms the bearish Flag pattern.

A bearish projection target would be located around 1.2020 if enough bearish pressure is maintained below 1.2700.

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Intraday technical levels and trading recommendations for EUR/USD for October 12, 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.

The recent 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.

Price action should be watched around the price level of 1.0990 (Key-Level-1) for a BUY entry if enough bullish rejection is expressed.

On the other hand, a daily candlestick closure below 1.0990 allows a quick bearish decline towards 1.0825 (Key-Level-2) where price action should be considered again.

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Technical analysis of NZD/USD for October 12, 2016

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Pivot : 0.7079

Overview:

  • Bearish outlook: The NZD/USD pair will move downside and the structure of a fall does not look corrective. The trend is still below the 100 EMA for that the bearish outlook remains the same as long as the 100 EMA is headed to the downside. The NZD/USD pair continues to move downwards from the level of 0.7175. This week, the pair dropped from the level of 0.7175 to the bottom around 0.7067. Today, the first support level is seen at 0.6983, the price is moving in a bearish channel now. Furthermore, the price has been set below the strong resistance at the level of 0.7175, which coincides with the 61.8% Fibonacci retracement level. This resistance has been rejected several times confirming the veracity of a downtrend. Additionally, the RSI starts signaling a downward trend. As a result, if the NZD/USD pair is able to break out the first support at 0.6983, the market will decline further to 0.6920 in order to test the weekly support 2. Consequently, the market is likely to show signs of a bearish trend. So, it will be good to sell below the level of 0.7079 with the first target at 0.6983 and further to 0.6920. However, stop loss is to be placed above the level of 0.7105
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Technical analysis of USD/CHF for October 12, 2016

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Overview:

  • The USD/CHF pair is showing signs of strength following a breakout of the highest level of 0.9751.
  • There are no changes in my technical outlook. The bias remains bullish in nearest term testing 0.9950 or higher.
  • On the H4 chart, the level of 0.9751 coincides with 61.8% of Fibonacci, which is expected to act as major support today.
  • Since the trend is above the 61.8% Fibonacci level, the market is still in an uptrend. But, minor support is seen at the level of 0.9810.
  • Furthermore, the trend is still showing strength above the moving average (100).
  • Thus, the market is indicating a bullish opportunity above the mentioned support levels for that the bullish outlook remains the same as long as the 100 EMA heads upwards.
  • Therefore, minor support will be found at the level of 0.9810 providing a clear signal to buy with a target seen at 0.9884 in order to test the double top. If the trend breaks the minor resistance at 0.9884, the pair will move upwards continuing the bullish trend development to the level of 0.9920 in order to test the daily resistance 1.
  • On the other hand, if the price closes below the strong support of 0.9751, the best location for a stop loss order is seen above 0.9710.
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Global macro overview for 12/10/2016

Global macro overview for 12/10/2016:

Interesting remarks from Sir Jon Cunliffe, Bank of England Deputy Governor has hit the mass media while he was appearing at the inquiry by the upper House of Lords into the fallout of Brexit on financial services. Cunliffe said, that BoE needs to make sure that banks continue to focus on non-Brexit risks as there is still a great uncertainty about the extent to which financial firms will leave the Britain. Moreover, he said that BoE continues to prepare contingency planning with other central banks in order to react accordingly. In conclusion, standard risk measures are now being slowly prepared and implemented as the uncertainty at the financial market is growing. The so-called "hard Brexit" might be scheduled as soon as March 2017.

Let's now take a look at the GBP/USD technical picture in the hourly time frame after the notorious flash-crash last week. The price is still range-bounded between the levels of 1.2478 - 1.2028. The visible bullish divergence might be the first sign of an ongoing corrective rally, but the bias remains bearish.

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Global macro overview for 12/10/2016

Global macro overview for 12/10/2016:

The highly anticipated event of the week, the FOMC Meeting Minutes, is scheduled for release at 06:00pm GMT today. The question that global investors around the world are asking now is: will the FOMC Minutes boost chances for a December rate hike? The recent data from US jobs market indicated a healthy, robust job creation process with the unemployment rate around 5.0%. Nevertheless,the weakening outlook for private-sector consumption may push the FOMC to further delay its normalization cycle, and ongoing concerns surrounding the inflation outlook may keep the FED in a wait-and-see mode for some more time.

Let's now take a look at the EUR/USD technical picture in the 4H time frame. The key intraday support at the level of 1.1043 has been violated and now bears are heading towards the next key support at the level of 1.0958. So far no sign of any positive divergence, so bears are in full control over the market.

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Technical analysis of USD/CAD for October 12, 2016

General overview for 12/10/2016:

The top for the wave -b- might be in place at the level of 1.3272, but it is worth to notice that this corrective cycle might evolve into a more complex structure. Currently, the price is still trading below the golden trend line, so any rally attempt should be limited. The most important level is the gray zone labeled as demand zone, as any break out below this zone would indicate the corrective cycle is now completed. Moreover, the growing bearish divergence supports the bearish outlook.

Support/Resistance:

1.3312 - Intraday Resistance

1.3281 - Previous High

1.3229 - Weekly Pivot

1.3139 - Intraday Support

1.3147 - WS1

Trading recommendations:

Day traders should consider opening sell orders from current market levels with tight SL and TP set at the level of 1.3186.

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Technical analysis of GBP/JPY for October 12, 2016

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GBP/JPY is expected to continue its downside movement as the bias remains bearish. The pair broke above its 20-period moving average and is challenging its 50-period one. The relative strength index is bullish above its neutrality level at 50 and is heading upward. Nevertheless, the pair is still capped by a declining trend line (since Oct 10), which maintains the negative view. Additionally, 125.70 is playing a key resistance role, which should limit the upside potential.

The British pound continued to be sold showing difficulties in making a full recovery from last Friday's 10% flash crash. GBP/USD plunged 2.0% on day to 1.2117 (day-low at 1.2086) making up a four-session losing streak that threw away 5.0% or 631 pips, the worst since the Brexit vote in June. Bank of England policymaker Michael Saunders commented, "Given the scale and persistence of the U.K.'s current account deficit, I would not be surprised if sterling falls further, but I am fairly agnostic as to whether any further depreciation is likely."

As long as the declining trend line and key resistance at 127.80 remains intact, we keep our negative view unchanged with down target at 125.70. A break below this level would call for a further decline toward 124.80.

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 125.70. A break below this target will move the pair further downwards to 124.80. The pivot point stands at 127.80. 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 128.70 and the second one at 130.00.

Resistance levels: 128.70, 130.00, 131.00

Support levels: 125.70, 124.80, 123.40

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Technical analysis of USD/JPY for October 12, 2016

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USD/JPY is expected to maintain a downside movement. The pair remains under pressure below its key resistance at 103.80, which should limit the upside attempts. The downward momentum is further reinforced by its descending 50-period moving average, which should push the prices lower. Besides, the relative strength index has clearly reversed down, and is now below its neutrality area at 50.

Federal Reserve of Chicago President Charles Evans commented that the U.S. economy is on a sound footing and raising interest rates in December "could be fine."

Apart from growing expectations of a December rate increase, disappointing corporate results were to blame for the stock market downfall. Alcoa, which kicked off the earnings season, shed 11.4% as the company reported a weaker-than-expected third quarter profit and lowered its full-year 2016 revenue targets. Meanwhile, Illumina dived 24.8% as the company's third-quarter revenue fell short of its guidance.

Shares of commodity producers retreated as the U.S. dollar firmed up. Chipmakers also showed downward momentum.

Hence, as long as 103.80 is not surpassed, the pair is likely to drop to 103.05, if breakout, look for further downsides to 102.80.

Trading Recommendation: The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 103.05. A break below this target will move the pair further downwards to 102.80. The pivot point stands at 103.80. 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 104.00 and the second one at 104.20.

Resistance levels: 104.00, 104.20, 104.50

Support levels: 103.05, 102.80, 102.40

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Technical analysis of EUR/JPY for October 12, 2016

General overview for 12/10/2016:

The top for the wave X brown has been now established at the level of 116.30 and currently the market is developing the next big leg down. From the Elliott Wave perspective, it is not yet clear whether the move down will be in the form of an impulsive progression or more complex corrective progression, mostly because the downward fall has stopped at the 50%Fibo at the level of 114.17 only. We need to wait if the level of 61%Fibo at the level of 113.67 will be hit before drawing any further conclusions. Bias is still to the downside.

Support/Resistance:

116.72 - WR1

115.19 - Weekly Pivot

114.54 - Intraday Resistance

114.05 - WS1

114.00 - Intraday Support

112.50 - WS2

Trading recommendations:

As long as the market is not back inside the golden channel, swing traders and day traders should sell the rallies with SL above the level of 115.90 (wave (b) top).

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Technical analysis of USD/CHF for October 12, 2016

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USD/CHF pair movement is supported by a rising trend line, which emerged on October 10, and is holding on the upside. The rising 50-period moving average is playing a support role and maintains the upside bias. The relative strength index is above its neutrality level at 50. Federal Reserve of Chicago President Charles Evans commented that the U.S. economy is on a sound footing and raising interest rates in December "could be fine."

As long as 0.9840 holds on the downside, look for a further upside toward 0.9925. A break above this level would call for a further advance toward 0.9945.

Resistance levels: 0.9925, 0.9945, 0.9985

Support levels: 0.9810, 0.9790, 0.9765

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Technical analysis of NZD/USD for October 12, 2016

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NZD/USD is expected to trade with a bearish bias as the key resistance is at 0.7120. The pair broke above its 20-period and 50-period moving averages, while the relative strength index is above its neutrality level at 50. Nevertheless, 0.7120 (Oct 7 and 10 bottoms) represents a significant key resistance level, which should limit the upside potential. Even though a continuation of the technical rebound cannot be ruled out, its extent should be limited. As long as 0.7120 holds on the upside, look for a further drop toward 0.7040. A break below this level would call for a further decline toward 0.7000.

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 0.7040. A break below this target will move the pair further downwards to 0.7000. The pivot point stands at 0.7120. 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 0.7145 and the second one at 0.7175.

Resistance levels: 0.7145, 0.7175, 0.7200

Support levels: 0.7040, 0.7000, 0.6950

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Technical analysis of AUD/CHF for October 12, 2016

Based on our previous analysis, AUD/CHF started to move higher and broke above the 0.7473 resistance once again. This time it should act as a level of support providing additional opportunities to go long.

Consider holding long positions from 0.7430, targeting either 23.6% (0.7526) or 0% Fibs (0.7612) resistance levels. The stop loss should be moved to break even at 0.7430.

Support: 0.7473, 0.7430, 0.7387

Resistance: 0.7526, 0.7612

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Technical analysis of EUR/AUD for October 12, 2016

Basen on our previous analysis, EUR/AUD started to move lower and broke below the 50% Fibs (1.4618) support. The pair is trading below both 50- and 200-Moving Average and clearly trending down while none of the downside targets have been reached yet.

Consider holding short positions from 1.4730 traging either 38.2% (1.4505) or 23.6% Fibs (1.4365) support levels. The stop loss should be moved to break even level at 1.4730.

Support: 1.4505, 1.4365,1.4140

Resistance: 1.4618, 1.4730

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Technical analysis of USDX for October 12, 2016

The Dollar index has broken above critical trend line resistance. Price is in a bullish trend and looks ready to challenge the previous highs. 98.60 is the next important hurdle to surpass in order to continue higher. Short-term view justifies a pullback.

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Dark blue lines - bullish channel

Blue line - critical long-term support

The Dollar index is testing the upper channel boundary. With oscillators overbought, I expect price to get rejected at current levels and pull back at least towards the lower channel boundary at 97. Price is above the Ichimoku cloud and this confirms the bullish trend.

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Red line - resistance

Green line - long-term support

Price has broken above both the weekly Ichimoku cloud and the downward sloping red trend line resistance. Next resistance is found at 98.60 where the 78.6% Fibonacci retracement of the decline from 100.50 to 91.90. Only a reversal and a new low below this week's lows will be a bearish reversal signal. All other pullbacks are considered to be buy opportunities.

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Technical analysis of Gold for October 12, 2016

Gold price has been moving sideways since October 5th around the 38% Fibonacci retracement and the important $1,250 support. Is the entire correction over at this level or just its first part? A bounce towards $1,300 is expected. My longer-term view remains bullish.

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Red lines - triangle pattern

Price is trading around $1,250 in a triangle pattern. Soon we will have a breakout towards $1,220 or $1,280. Resistance is at $1,260 and support is at $1,242. The lower this decline pushes price, the better for bulls as I believe that we are in the process of creating a new low as important as $1,045 is.

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Green line - long-term trend line resistance

On a weekly basis price has broken above the Ichimoku cloud and the rise was halted at the downward sloping trend line resistance from its all time highs. Price is now backtesting the Ichimoku cloud support and is now at the 38% Fibonacci retracement. I was warning that a break below $1,300 will push prices towards the cloud support. My longer-term view remains bullish. We can either start a new up trend from current levels or we can bounce to $1,300 and then make the final correction towards $1,200. Time will tell. We need to be patient.

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Daily analysis of major pairs for October 12, 2016

EUR/USD: As it was forecasted, this equilibrium phase on this market has ended as the EUR/USD pair broke downwards, trending downwards and going below the resistance line at 1.1100, this has resulted in a Bearish Confirmation Pattern on the 4-hour chart. While there would be normal rally attempts along the way, bears would be able to target the support line at 1.1000 today or tomorrow.

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USD/CHF: This pair has moved upwards by 110 pips this week. The EMA 11 is above the EMA 56 and the Williams' % Range period 20 is around the overbought region. Now, price is getting to the major resistance level at 0.9900, where bulls would encounter a major opposition. At that resistance level, it would be difficult for price to go further upwards, unless there is a strong buying pressure in the market.

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GBP/USD: The cable trended downwards on Tuesday and got a bit corrected to the upside early today. All this happened within a major downtrend. The accumulation territories at 1.2150 and 1.2100 have been tested and they would be tested again when price resumes its southward journey.

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USD/JPY: This pair is still bullish though price has only become volatile so far this week. The market went upwards on Monday and then consolidated on Tuesday – in the context of a downtrend. Since the outlook on USD/JPY is bullish for this week, it is expected that price would continue going upwards, surmounting the supply level at 104.00.

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EUR/JPY: Owing to the perceived weakness in the EUR, this currency trading instrument went a bit downwards yesterday. This has become a threat to the recent bullish signal, which would be rendered invalid once price goes below the demand zones at 114.00 and 113.50, which would in turn, result in a bearish signal.

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Elliott wave analysis of EUR/NZD for October 12, 2016

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Wave summary:

The failure to accelerate higher is not consistent with our previous count. Therefore, we have a new preferred count. This count shows that a leading diagonal was seen as wave (i) at 1.5668 and an expanding flat in wave (ii) now is unfolding. This allows for wave (ii) to move closer to support in the 1.5245 - 1.5271 area before a strong impulsive rally takes over as wave (iii) towards 1.6396.

Trading recommendation:

Our stop at 1.5550 was hit for a small profit. We will re-buy EUR at 1.5280 or upon and unexpected break above 1.5712.

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Elliott wave analysis of EUR/JPY for October 12 - 2016

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Wave summary:

The correction from 116.28 is deeper than expected and is not really consistent with the previous count, so we have adopted a new and even more bullish count. This scenario sees a series of waves 1 and 2 unfolding. If this count proves to be correct, then a strong upside acceleration will be seen for a break above 114.88, then above 115.79, and finally towards 117.38.

In the short term, we need wait until the red wave ii moves a little lower to 113.76 before completing and setting the stage for red wave iii higher towards 117.38.

Only an unexpected break below 112.56 will invalidate this count and indicate that the long term corrective low has not been found yet and a decline below 109.48 still should be expected.

Trading recommendation:

We will buy EUR at 113.85 or upon a break above 114.55 with stop placed at 112.50.

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Technical analysis of EUR/USD for Oct 12, 2016

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When the European market opens, some economic data will be released such as Industrial Production m/m, French Final CPI m/m, German WPI m/m.The US will also publish some news such as FOMC Meeting Minutes, 10-y Bond Auction, JOLTS Job Openings. Amid the reports EUR/USD will move in a low to medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Breakout BUY Level: 1.1111.

Strong Resistance:1.1105.

Original Resistance: 1.1094.

Inner Sell Area: 1.1083.

Target Inner Area: 1.1057.

Inner Buy Area: 1.1031.

Original Support: 1.1020.

Strong Support: 1.1009.

Breakout SELL Level: 1.1003.

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.

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Technical analysis of USD/JPY for Oct 12, 2016

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In Asia, Japan will release the Prelim Machine Tool Orders y/y, 30-y Bond Auction, Core Machinery Orders m/m. The US will also reveal some economic data such as FOMC Meeting Minutes, 10-y Bond Auction, JOLTS Job Openings. So there is a probability the USD/JPY will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Resistance. 3: 104.06.

Resistance. 2: 103.86.

Resistance. 1: 103.65.

Support. 1: 103.41.

Support. 2: 103.20.

Support. 3: 103.00.

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.

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Daily analysis of USDX for October 12, 2016

USDX posted another bullish session with a strong consolidation above the 97.00 psychological level. Now it's facing the resistance zone at 97.71, where a breakout should deliver more buyers' force towards the 98.48 level. However, if the index manages to do a pullback and breaks the 97.36 level, then it can extend decline to the 96.74 level.

USDXH1.png

H1 chart's resistance levels: 97.71 / 98.48

H1 chart's support levels: 97.36 / 96.74

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 97.71, take profit is at 98.48 and stop loss is at 96.94.

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Daily analysis of GBP/USD for October 12, 2016

GBP/USD had another bearish day on Tuesday, as the pair refreshed it's daily low and now we're seeing a bearish consolidation below the 1.2200 handle. The support zone of 1.2112 should help the pair to recover some ground in coming hours, but a breakout below that area should expose GBP/USD to the next key level at the 1.2033 level.

GBPUSDH1.png

H1 chart's resistance levels: 1.2229 / 1.2312

H1 chart's support levels: 1.2112 / 1.2033

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 1.2112, take profit is at 1.2033 and stop loss is at 1.2189.

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Daily analysis of EUR/JPY for October 11, 2016

EURJPYH4.png

Overview

The EURJPY pair has been moving towards the bearish channel's resistance to settle around 115.80 levels since morning. We remind you that the bearish scenario depends on the stability of this resistance. The price is likely to form a new negative attack and attempt to break the 114.50 initial support followed by movements towards negative targets that start at 113.60 then 112.20. Note that a successful breach of the main resistance will cancel the negative domination and start building new bullish bias, targeting 117.00 as the first positive station, followed by attempts to reach 119.20 in the upcoming period. The expected trading range for today is between 115.80 and 113.60.

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Daily analysis of GBP/JPY for October 11, 2016

GBPJPYH4.png

Overview

The GBP/JPY pair continues providing negative fluctuations due to its stability below 129.60 resistance, consolidating within the main bearish channel. Thus, we still expect that negative attempts will support decline towards targets starting at 125.80 followed by 120.90 in the upcoming period. We should note that attempt to rally above 129.60 level will postpone the negative overview for the near term period and start forming bullish rebound until testing the initial resistance at 135.20, followed by waiting to start forming the expected negative attack. The expected trading range for today is between 129.60 and 125.80.

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Daily analysis of Gold for October 11, 2016

GOLDH4.png

Overview

Gold price holds its positions above the 1,249.94 level. Importantly, stochastic reaches the thresholds of the oversold areas forming positive motive which can push the price to resume the bullish trend with the target at 1,297.74. Therefore, we will keep our bullish overview as long as 1,249.94 level remains intact. The price needs to get rid of the negative pressure formed by the EMA50 to reinforce the expectations of extending the bullish wave towards 1,329.00 followed by 1375.00 areas on the near term basis. Expected trading range for today is between 1,245.00 support and 1,285.00 resistance.

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Daily analysis of Silver for October 11, 2016

SILVERH4.png

Overview

Silver price fluctuates around the 17.65 level. Importantly, stochastic gains the positive momentum gradually reaching the oversold areas, and having a closer look at the chart, we find that the price is drawing an inverted head and shoulders' pattern that appears on the minor image, which means breaching 17.80 level will activate the positive effect of this pattern, followed by pushing the price to achieve more gains in the upcoming period. Therefore, these factors encourage us to keep our bullish overview on the intraday and short term basis, accroding to which the main target begins at 18.30 and extends to 19.38, while its continuation is possible only if the price holds above 17.43. The expected trading range for today is between 17.30 support and 18.30 resistance.

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