USD/CAD intraday technical levels and trading recommendations for October 14, 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 14, 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 14, 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.

On the other hand, any bullish pullback towards 1.2700 should be considered for a valid SELL entry. S/L should be set as daily closure above 1.2700.

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Intraday technical levels and trading recommendations for EUR/USD for October 14, 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 current 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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Gold analysis for October 14, 2016

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Since our previous analysis, gold has been trading downwards. The price tested the level of $1,252.70 in a high volume. On the 30M chart, I found yesterday's point of control zone around the price of $1,258.40, using the market profile. The price is trading below 48 SMA according to the 30M time frame, which is another sign of weakness. The short-term trend is still downward. Watch for selling opportunities. Take profit levels are set at the price of $1,250.20 and $1,241.00.

Fibonacci pivot points:

Resistance levels:

R1: 1,257.85

R2: 1,258.70

R3: 1,260.20

Support levels:

S1: 1,255.00

S2: 1,254.20

S3: 1,252.69

Trading recommendations for today: Watch for selling opportunities. Take profit level is set at the price of $1,250.20.

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Daily analysis of GBP/JPY for October 14, 2016

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Overview

The GBP/JPY pair showed more sideways trading consolidating around 127.25 levels yesterday due to a lack of negative momentum until this moment. The bearish scenario depends on stability of the 129.60 resistance. We expect the price to gather the required negative momentum and start recording targets at 123.15 followed by 120.90. Note that an attempt to breach the mentioned resistance will postpone the negative overview and start building correctional bullish bias to move towards 133.40 as the first positive target followed by touching the 135.50 resistance. The expected trading range for today is between 127.50 and 123.15.

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Daily analysis of silver for October 14, 2016

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Overview

Silver price continues to fluctuate near the key support at 17.43, which represents 50% Fibonacci correction level for the rise measured from 13.75 to 21.12. Breaking this level will extend the correctional bearish wave towards the 16.56 level. Here, traders should be cautious in case the price continued its negative pressure on this level. In general, we still suggest the bullish trend on the intraday and short term basis as long as the 17.43 level remains intact. This scenario is supported by the stochastic that appears on the four hours' time frame. Our main targets begin at 18.30 followed by 19.38. The expected trading range for today is between 17.30 support and 18.00 resistance.

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EUR/NZD analysis for October 14, 2016

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Recently, EUR/NZD has been moving downwards. The price tested the level of 1.5484 in a average volume. My first take profit set yesterday at 1.5520 has been met. Using the market profile analysis, I found the point of control from yeseterday at the price of 1.5600. Anyway, I still expect lower price on EUR/NZD since the price broke trading range, which is a sign of weakness. Watch for selling opportunities on the pullbacks. Take profit level is set at the price of 1.5350.

Fibonacci Pivot Points:

Resistance levels

R1: 1.5635

R2: 1.6660

R3: 1.5700

Support levels:

S1: 1.5560

S2: 1.5535

S3: 1.5500

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

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Technical analysis of EUR/AUD for October 14, 2016

According to our prior analysis, EUR/AUD continues to decline. The pair found the resistance at 50% Fibs level (1.4618) and started to move down once again.

The pair broke below 38.2% Fibs (1.4505) which should open the way to the next downside target at 23.6% Fibs (1.4365).

Consider holding short positions from 1.4730 targeting 23.6% Fibs (1.4365). The stop loss can be moved lower to 1.4625 in order to protect profits.

Support: 1.4365

Resistance: 1.4505, 1.4618

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Technical analysis of CAD/CHF for October 14, 2016

After finding a bottom near 0.7300, CAD/CHF started moving up breaking the descending channel. After the channel breakout, the pair corrected and rejected the uptrend trendline.

This week CAD/CHF broke above both 50 and 200 Moving Averages and within a corrective wave down rejected 200 and then 50 Moving Averages which were acting as support.

Consider buying CAD/CHF at the current level (0.7585), targeting either 161.8% (0.7528) or 261.8% Fibs (0.7594) applied to the last corrective wave down. The suggested stop loss is 0.7430.

Support: 0.7422, 0.7488

Resistance: 0.7528, 0.7594

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Global macro overview for 14/10/2016

Global macro overview for 14/10/2016:

After five weeks of decline, an unexpectedly large surplus in crude oil stockpiles was reported yesterday afternoon. Crude Oil Inventories data showed a gain of 4,850k barrels, beating the estimate of just 286k. This was the highest reading since April 2016. Moreover, oil prices are clearly trending higher after Monday's comments from Russian president Vladimir Putin, when he stated that Russia would join the OPEC agreement to cap production levels. This might be an important step towards reaching a final agreement with the other OPEC members at the next cartel's meeting next month.

Let's now take a look at the Crude Oil technical picture on the 4H time frame. The market is still trending higher above $50 mark and there has been no signs of a trend reversal so far. The next support is seen at the level of 49.13 and the next resistnace can be found at the level of 51.58.

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Technical analysis of NZD/USD for October 14, 2016

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Overview:

  • The NZD/USD pair broke the support level at 0.7175 which acts as a resistance now. Amid the previous events, the NZD/USD pair is likely to move between the levels of 0.7175 and 0.6983 in the coming hours. The trend is still below the 100 EMA so the bearish outlook remains valid as long as the 100 EMA is headed to the downside. Consequently, the price spot of 0.7175 remains a significant resistance zone. Accordingly, there is a possibility that the NZD/USD pair will move downwards. The structure of a fall does not look corrective. In order to indicate a bearish opportunity below 0.7175, sell below 0.7170 with the first target at 0.6983. The level of 0.7175 coincides with 61.8% of Fibonacci, which is expected to act as a major resistance today. Since the trend is below the 61.8% Fibonacci level, the market is still in a downtrend. Overall, we still prefer the bearish scenario. Don't forget to set a stop loss above the last bullish wave at the level of 0.7190.
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Global macro overview for 14/10/2016

Global macro overview for 14/10/2016:

Another good news from the US jobs market was released yesterday. TThe US unemployment claims hit 43-year low as the number of the Americans filings for unemployment benefits remained at 246k, just as a week ago (despite an anticipated slight increase to 252k during the reported period). It was the 84th consecutive week of initial claims remaining below the 300,000 level, the longest streak since 1973. In conclusion, this data is another bit of information that will be used by the Fed policymakers to justify the interest rate increase in December this year.

Let's now take a look at the EUR/USD technical picture on the 4H time frame. As we can see, the bulls weren't strong enough to break above the dashed blue trend line and the price was rejected at the technical resistance at the level of 1.1043. The next important support is seen at the level of 1.0958 and this is where the price should head now.

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Technical analysis of USD/CHF for October 14, 2016

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Overview:

  • USD/CHF continues moving upwards from the areas of 0.9828 and 0.9850. The pair is showing signs of strength following a breakout of the high at 0.9829. The bias remains bullish in the nearest term testing 0.9975 or higher. The pair rose from the level of 0.9828 to 0.9908. Today, resistance is seen at the levels of 0.9910, 0.9940, and 0.9980. On the other hand, the support levels are seen at 0.9828 and 0.9800. So, we expect the price will set above the strong support at the levels of 0.9828 and 0.9800 because it is in a bullish channel now. Amid the previous events, the price is still moving between the levels of 0.9830 and 0.9940. Overall, we still prefer a bullish scenario as long as the price is above the level of 0.9829. Furthermore, if the USD/CHF pair manages to break out the top at 0.9908, the market will climb further to 0.9940 and 0.9980. Alternatively, if the price closes below the double bottom of 0.9910, the best location for a stop loss order is seen above 0.9880. Hence, the price will fall into a bearish trend in order to go further towards the strong support at 0.9829 to test it.
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Technical analysis of USD/CAD for October 14, 2016

General overview for 14/10/2016:

As expected, USD/CAD moved lower yesterday and currently it is trading below the weekly pivot as the wave C unfolds. The whole move to the upside that constitutes the wave B is more corrective than impulsive, so there is still a chance for one more wave down. The most important level is the gray zone labeled as demand zone, as any break below it would indicate the corrective cycle is 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 EUR/JPY for October 14, 2016

General overview for 14/10/2016:

EUR/JPY is still trading inside of a narrow range between the weekly pivot at 115.19 and intraday support at 114.00. Bulls were not strong enough to break above this level and bears pushed the price lower again. 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 fall has stopped at the 50% Fibo at the level of 114.17. We need to wait if the level of 61% Fibo at 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

115.16 - 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 trend line, swing traders and day traders should sell at the rallies with SL above the level of 115.90 (wave (b) top).

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Technical analysis of USDX for October 14, 2016

The Dollar index made a pullback as we expected yesterday but not as deep as I initially expected. Price remains inside the short-term bullish channel, so short-term trend remains bullish. However bulls should be on their toes and on high alert as the chances of a bigger reversal is very possible.

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Dark blue lines - bullish channel

Short-term support is at 97.48 while resistance is at 98.30. Price is above the Ichimoku cloud. I expect soon to see a bigger reversal towards at least the Ichimoku cloud. This could happen next week however.

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Red line - resistance trend line (broken)

Green line - support trend line

The weekly candle remains bullish as the breakout is an important bullish signal. Bulls should be cautious if price breaks this week's low. This will be a very bearish sign. So a break back below the Ichimoku cloud will be a very bearish indication. The Green trend line is also important support. If broken, it will confirm the bearish reversal. Until then trend is bullish and next resistance is at 98.65.

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Technical analysis of Gold for October 14, 2016

Gold showed signs of strength yesterday but not enough to break above short-term resistance at $1,260. Price is moving mostly sideways around the critical support of $1,250. A new low below $1,250 will most probably bring more sellers and push Gold price towards $1,220-30.

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Red lines - trading range

Gold price is moving sideways. Upper trading range boundary is at $1,262 and the lower boundary at $1,250. A break of either level will push price towards $1,280-90 or $1,220-30 respectively.

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On a weekly basis there is no change. Price remains above the important support of the 38% Fibonacci retracement and above the weekly cloud. We might see a bounce towards $1,300 first before re-testing the weekly Ichimoku cloud. I remain long-term bullish.The material has been provided by InstaForex Company - www.instaforex.com

Elliott wave analysis of EUR/JPY for October 14, 2016

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Wave summary:

We still look for a break above minor resistance at 115.15 and more importantly above resistance at 115.79 which will confirm the next impulsive rally higher to 119.99 and above.

Short-term support is found at 114.45 and just below at 113.99, which is expected to protect the downside for the next impulsive rally higher.

Only a clear break below 113.99 will delay the expected rally higher while only an unexpected break below 112.57 will invalidate the bullish set-up.

Trading recommendation:

We are long EUR from 114.56 with stop placed at 113.90. If you are nor long EUR yet, then buy near 114.45 or upon a break above 115.15 and use the same stop at 113.90.

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US Dollar Index Technical Analysis for October 14, 2016.

Technical outlook and chart setups:

The US dollar index finally pulled back as expected yesterday. It had dropped lower towards 97.50 levels forming the first leg for a corrective drop. The index is trading at 97.80 levels for now, looking to drop lower further towards 97.00 levels at least. Additionally, 97.00 is the Fibonacci 0.382 support as depicted here. It seems that the index has completed wave 3 within the 5 wave rally expected from 94.50 levels. The current pullback would be considered as wave 4 which is likely to terminate at 96.95 levels. It is hence recommended to exit long positions and remain flat for now. Aggressive traders can go short now, with stop at 98.50 targeting 97.00 levels. Immediate resistance is at 98.13 levels, while support lies at 96.95 levels.

Trading recommendations:

Remain flat for now. Aggressive traders can remain short, stop at 98.50, target 97.00

Good luck!

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EUR/USD Technical Analysis for October 14, 2016.

Technical outlook and chart setups:

The EUR/USD pair has finally pulled back sharply after printing fresh lows at 1.0985 levels yesterday. This could be the beginning of much awaited counter trend rally. The pair has pulled back since then and is trading at 1.1025 level now, after printing intraday highs at 1.1059 levels. Importantly, the daily chart patterns and oscillators were showing extreme bullish divergence and prices reacted accordingly. Looking at the wave structure, the pair looks to be preparing for yet another run towards 1.1085 and 1.1120 levels. The pair is expected to face resistance around 1.1107/40 levels. It is hence recommended to remain long, with risk at 1.0960 levels. Immediate resistance is seen at 1.1107 levels while support lies at 1.0950 levels.

Trading recommendations:

Remain long, stop at 1.0960, target is open.

Good luck!

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Silver Technical Analysis for October 14, 2016.

Technical outlook and chart setups:

The structure and pricing remains more or less unchanged with silver seen to be taking support from $17.00 level. The metal is seen to be trading at $17.42 level for now, looking to stage a counter trend rally towards $18.50/19.00 levels. Please note that it is quite possible that the metal may resume its rally from here. The wave structure also indicates that the metal is into its wave C drop, within the 3 wave A-B-C that began from $21.10 level earlier. If the metal reverses from $18.50/19.00 levels, then it would 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 level respectively. It is recommended to remain flat for now and look for opportunities to short again on rallies. Immediate resistance is seen at $18.50/19.00 levels, while support is at $17.00 level respectively.

Trading recommendations:

Remain flat for now. Aggressive traders may go long , with stop at $17.00 and targeting $18.50 at least.

Good luck!

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Gold Technical Analysis for October 14, 2016.

Technical outlook and chart setups:

Gold remains unchanged from yesterday with prices stagnant between $1,255.00/60.00. It seems to have formed an interim higher low at $1,250.00/51.00 as expected after bouncing off from fibonacci 0.382 support at $1,240.00 level earlier. The metal is seen to be trading at $1,255.00 level for now, looking to accelerate higher towards $1,300.00/10.00 levels. The wave structure also indicates that the counter trend rally is expected to terminate around the past support turned resistance zone at $1,310.00 levels, which is fibonacci 0.50% of the entire drop between $1,375.00 and $1,240.00 levels as depicted here. Also note that the broken support trend line would act as resistance now around the same levels. It is recommended to remain flat now and look to sell around $1,300.00/10.00 levels again, while aggressive traders should look to go long with risk below $1,240.00. Immediate resistance is now seen at $1,305.00/10.00 levels, while support is at $1,240.00 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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Elliott wave analysis of EUR/NZD for October 14, 2016

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Wave summary:

We have seen the expected corrective move lower towards the ideal target at 1.5245. In the short term we expect resistance near 1.5530 will cap the upside for the next decline closer to 1.5309 and likely closer to 1.5245 before the expanded flat correction in wave (ii) is complete and the next impulsive rally can begin.

Only a direct break above 1.5659 will indicate that the correction has completed prematurely and wave (iii) higher already is unfolding.

Trading recommendation:

We will but EUR at 1.5280 or upon a break above 1.5659.

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Technical analysis of USD/JPY for October 14, 2016

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USD/JPY is under pressure. The pair remains under pressure below its key resistance at 104.45, which should limit the upside room. The downward momentum is further reinforced by the descending 50-period moving average, which should push the prices lower. Besides, the relative strength index is below its neutrality area at 50, and lacks upward momentum. On Thursday, U.S. stock indexes settled lower as weaker-than-expected Chinese trade data revived concerns on global economic growth. Financial shares were under pressure as treasury yields rallied and before JPMorgan Chase, Wells Fargo and Citigroup post their results on Friday. In fact, a late-day rebound in oil prices helped stocks pare some losses.

The Dow Jones Industrial Average closed 45 points (-0.3%) lower at 18,098 having recovered from an intraday low of 17,959. The S&P 500 declined 6 points (-0.3%) to 2,132, and the Nasdaq Composite was down 25 points (-0.5%) to 5,213.

U.S. government bonds rebounded from a recent selloff pressing the benchmark 10-year Treasury yield down to 1.739% from 1.778% Wednesday.

Although the U.S. Energy Information Administration reported that crude stockpiles increased 4.9 million barrels in the week ended October 7, compared with a build of just 700,000 barrels expected, oil prices bounced as traders learned that distillates dropped 3.7 million barrels (vs. -1.6 million barrels expected) and gasoline drew 1.9 million barrels (vs. -1.5 million barrels expected).

To sum up, as long as 104.45 is not surpassed, the pair is expected to pullback to 103.55, if breakout, look for further downsides to 103.15.

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 103.55. A break below this target will move the pair further downwards to 103.15. The pivot point stands at 104.45. 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 104.80 and the second one at 105.10.

Resistance levels: 104.80, 105.10, 105.45

Support levels: 103.55, 103.15, 102.75

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Technical analysis of NZD/USD for October 14, 2016

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NZD/USD is expected to extend its upside movement. The pair is trading above its rising 20-period and 50-period moving averages, which play support roles and maintain the upside bias. The relative strength index is above its neutrality level at 50 and lacks downward momentum. Additionally, 0.7050 is playing a key support role, which should limit the downside potential. As long as this key level is not broken, look for a further upside toward 0.7145 and 0.7175 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 0.7145 and the second one at 0.7175. In the alternative scenario, short positions are recommended with the first target at 0.7030 if the price moves below its pivot points. A break of this target is likely to push the pair further downwards, and one may expect the second target at 0.7000. The pivot point lies at 0.7050.

Resistance levels: 0.7145, 0.7175, 0.7225

Support levels: 0.7030, 0.7000, 0.6970

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Technical analysis of USD/CHF for October 14, 2016

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USD/CHF is under pressure. The technical picture of the pair is negative below a declining trend line, which emerged on Oct 13. The downward momentum is further reinforced by its declining 20-period and 50-period moving averages. The relative strength index is also capped by a bearish trend line. Although the U.S. Energy Information Administration reported that crude stockpiles increased 4.9 million barrels in the week ended October 7, compared with a build of just 700,000 barrels expected, oil prices bounced as traders learned that distillates dropped 3.7 million barrels (vs. -1.6 million barrels expected) and gasoline drew 1.9 million barrels (vs. -1.5 million barrels expected). Nymex crude added 0.5% to $50.44 a barrel.

As long as 0.9900 holds on the upside, look for a further drop toward 0.9840 and 0.9810 in extension.

Resistance levels: 0.9925, 0.9945, 0.9985

Support levels: 0.9840, 0.9810, 0.9790

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Technical analysis of GBP/JPY for October 14, 2016

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GBP/JPY is expected to trade with a bearish bias as the key resistance is at 127.80. The pair posted some rebounds yesterday, and is challenging its horizontal level at 127.80, which plays a key resistance, and should limit the upside attempts. Even though a continuation of the technical rebound cannot be ruled out, its extent should be limited. The British pound marked a session low of 1.2130 before bouncing up to close at 1.2251, up 0.4% on day. In the U.K., the government is facing a legal challenge aimed at forcing it to seek parliamentary approval before initiating the formal Brexit process.

To conclude, as long as 127.80 holds on the upside, the pair is likely to return to 125.90.

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 125.90. 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: 125.90, 124.80, 123.40

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Technical analysis of EUR/USD for Oct 14, 2016

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When the European market opens, some economic data will be released such as eurozone's trade balance. The US will release macroeconomic statistics too such as Prelim UoM Inflation Expectations, Business Inventories m/m, Prelim UoM Consumer Sentiment, Core PPI m/m, Retail Sales m/m, PPI m/m, and Core Retail Sales m/m. So amid the reports, EUR/USD will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Breakout BUY Level: 1.1100.

Strong Resistance: 1.1094.

Original Resistance: 1.1083.

Inner Sell Area: 1.1072.

Target Inner Area: 1.1046.

Inner Buy Area: 1.1020.

Original Support: 1.1009.

Strong Support: 1.0998.

Breakout SELL Level: 1.0992.

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 14, 2016

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In Asia, Japan will release the PPI y/y and M2 Money Stock y/y. The US will also release some economic news such as Prelim UoM Inflation Expectations, Business Inventories m/m, Prelim UoM Consumer Sentiment, Core PPI m/m, Retail Sales m/m, PPI m/m, and Core Retail Sales m/m. 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: 104.33.

Resistance. 2: 104.13.

Resistance. 1: 103.92.

Support. 1: 103.67.

Support. 2: 103.47.

Support. 3: 103.27.

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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EUR/JPY dropped as expected, prepare to sell

Price dropped perfectly as expected yesterday. The key goal today is to sell on resistance at 115.08 (Fibonacci retracement, Fibonacci projection, horizontal overlap resistance) for a further push down to 114.12 once again.

RSI(34) is below horizontal resistance at 57%

Stochastics (21,5,3) is approaching a descending resistance line.

Sell at 115.08. Stop loss at 115.80. Take profit at 114.12.

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USD/JPY dropped as expected, continue to sell

Price has dropped perfectly off our selling area as expected yesterday. We continue to sell on resistance at 103.90 (Fibonacci retracement, Fibonacci projection) for a further drop to 102.86.

RSI (21) has made a bearish exit triggering a bearish move from here.

Stochastics (34,5,3) is approaching pullback resistance.

Sell below 103.90. Stop loss at 104.55. Take profit at 102.86.

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NZD/USD at perfect selling area, time to sell

Price has made a bearish channel exit triggering, so we look to sell below major resistance at 0.7126 (Fibonacci retracement, pullback resistance) for a push down to 0.6956.

RSI (34) is below a long-term descending resistance line.

Stochastics (21,5,3) is below major resistance at 90% too.

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AUD/USD at major resistance, start to sell.

Price reached our profit target perfectly once again from yesterday. We turn bearish below 0.7591 resistance (Fibonacci retracement, Fibonacci projection, descending resistance) for a drop towards 0.7511.

RSI(34) is right below a major descending resistance line.

Stochastics (34,5,3) is also below an 80% resistance line.

Sell below 0.7591. Stop loss at 0.7632. Take profit at 0.7511.

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AUD/NZD dropping perfectly, prepare to buy

Price dropped perfectly towards our profit target yesterday. Prepare to buy above major support at 1.0635 (Fibonacci retracement, Fibonacci projection, horizontal overlap support) for a push up to 1.0730.

RSI (34) is above our ascending support line where we expect a bounce from soon.

Stochastics (34,5,3) is above our 8% support where we expect a bounce from soon.

Buy above 1.0635. Stop loss at 1.0571. Take profit at 1.0730.

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Daily analysis of major pairs for October 14, 2016

EUR/USD: The EUR/USD pair plunged this week (by 190 pips) into the support line at 1.1000. That support line is actually a strong psychological level and bears would not expect to push the market below that line easily; hence the current upwards bounce. The upwards bounce would turn out to be a good opportunity to sell short at slightly higher prices.

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USD/CHF: The USD/CHF pair has not been able to break the formidable resistance level at 0.9900 to the upside. Bulls tried to push price further upwards, but their attempt was rejected as price got corrected lower. The bias is still bullish, and price would go back towards the resistance level again, where another opposition would be encountered.

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GBP/USD: This currency trading instrument remains bearish, both in long-term and short-term outlook. There is a huge Bearish Confirmation Pattern in the market, and any bullish effort should be taken as sell-shorting opportunities.

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USD/JPY: This is a bull market. The EMA 11 is above the EMA 56 and the RSI period 14 is above the level 50. Here, any bearish retracements that are seen should be taken as opportunities to buy long at better prices. Price has come down a bit, after testing the supply level at 104.50. That supply level could still be tested today or earlier next week.

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EUR/JPY: It is better to stay away from this market right now, because there is no directional movement (except one is trading on a very low time frame, going for quick gains). We could wait till price goes above the supply zone at 116.00, showing a bullish signal, or when price drops below the demand zone at 113.50, showing a bearish signal.

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Daily analysis of USDX for October 14, 2016

USDX retreated from multi-month highs. Now it's approaching the support level of 97.36, where a breakout can happen in order to test the 97.10 level, where the 200 SMA is located on H1 chart. However, the index is still bullish across the board, trading above the 200 SMA and it could re-test the 98.00 level once again if further US data comes as positive.

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H1 chart's resistance levels: 97.71 / 98.01

H1 chart's support levels: 97.46 / 97.10

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 98.01 and stop loss is at 97.40.

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Daily analysis of GBP/USD for October 14, 2016

GBP/USD gained bullish momentum in Thursday's session, posting a fresh high around the 1.2255 level. In the overall picture, the Pound is still very bearish and threatening to test the lows made after the "flash crash" which occurred last week. If the pair does a breakout above the 1.2312 level, then it will be able to test the 200 SMA.

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H1 chart's resistance levels: 1.2229 / 1.2312

H1 chart's support levels: 1.2179 / 1.2112

Trading recommendations for today: Based on the H1 chart, sell (short) orders only if the GBP/USD pair breaks a bearish candlestick; the support level is at 1.2179, take profit is at 1.2112 and stop loss is at 1.2239.

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NZD/USD exited the bearish channel, time to sell

The price has exited the bearish channel so we are waiting for selling opportunities below the major resistance at 0.7107 (Fibonacci retracement, pullback resistance) for a push down to 0.6956.

RSI (34) is below long-term descending resistance line.

Stochastics (21,5,3) is below descending resistance line too.

Sell below 0.7107. Place take profit at 0.6956 and stop loss at 0.7209.

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Daily analysis of GBP/JPY for October 13, 2016

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Overview

The pair remains in the negative range that depends on holding below the 129.60 resistance, but we noticed slow negative trading until this moment. In general, we will keep waiting for a strong negative attack expecting the price to touch the awaited target at 123.15 followed by the next target at 120.90. We remind you that the bearish scenario continues due to the price stability within the bearish channel shown on the chart, besides the negative pressure provided by the moving average 55 by settling above the price. The expected trading range for today is between 127.50 and 123.15.

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