USD/CAD intraday technical levels and trading recommendations for October 18, 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 18, 2016

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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 recent bullish swing was initiated.

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

The price zone between 0.6960-0.6860 constitutes a significant support zone to be watched for a valid BUY entry if any bearish pullback extends below 0.7100.

Note that the price zone between 0.6960-0.6860 corresponds to the depicted long-term bullish channel. That is why bullish rejection is anticipated.

On the other hand, the mark of 0.7245 is the key level to determine the next destination for the NZD/USD pair.

Evident bearish rejection would be a valid signal for a possible SELL entry around 0.7250.

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Intraday technical levels and trading recommendations for GBP/USD for October 18, 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 18, 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 were located at 1.1050 and 1.0990.

Price action should be watched around the current price level of 1.0990 (key level 1) for bullish rejection to be expressed.

On the other hand, daily persistence 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 AUD/USD for October 18, 2016

The price has made a perfect push up to our take profit target from yesterday. We turn bearish below major resistance at 0.7667 (Fibonacci projection, Fibonacci retracement) for a push down to 0.7606.

The RSI (34) is right below major resistance.

Sell below 0.7667. Stop loss at 0.7691. Take profit at 0.7606.

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Technical analysis of AUD/NZD for October 18, 2016

The price dropped perfectly to our profit target as expected. We turn bullish above the 1.0655 major support (Fibonacci retracement, Fibonacci projection, channel support, pullback support) for a push up to 1.0766.

The RSI (34) is above ascending support.

Stochastic (21,5,3) is bouncing above the 8% support.

Buy above 1.0655. Stop loss at 1.0569. Take profit at 1.0766.

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Technical analysis of GOLD for October 18, 2016

XAU/USD overall trend remains bearish without any obvious signs of a potential reversal to an upside. Gold broke below 161.8% Fibs support (1274) and found resistance there. Although correctional move up could extend, the probability of a further downtrend from the current level (1262) remains high.

Consider selling Gold while price is near 1260. For the shorter term trades stop loss should be very tight at 1265. For the longer term trades stop should be just above the 1300 psychological resistance. The first downside target is 261.8% (1225) and second one is at 361.8% (1177) Fibonacci retracement.

Support: 1225, 1177

Resistance: 1274, 1303

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Technical analysis of AUD/CHF for October 18, 2016

As projected in our previous analyses, AUD/CHF continued to move higher. The pair broke above the 23.6% Fibs resistance and could potentially move towards the next Fib target at 0% level (0.7666)

Consider fixing some profits and/or holding long positions while moving stop loss to a breakeven level.

Support: 0.7567, 0.7506

Resistance: 0.7666

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Gold analysis for October 18, 2016

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Since our previous analysis, gold has been trading sideways at the price of $1,261.00. On the 4H time frame chart, I found a trading range (potential re-distribtion) between the price of $1,265.50 (resistance) and the price of $1,241.22 (support). The Gold is in downward trend and my advice is to watch for a potential breakout of suppot for bearish position. Watch for breakout of $1,214.22 to confirm further lower price. The downward target is set at the price of $1.201.60.

Fibonacci pivot points:

Resistance levels:

R1: 1,255.00

R2: 1,256.25

R3: 1,258.00

Support levels:

S1: 1,251.15

S2: 1,249.95

S3: 1,248.00

Trading recommendations for today: Watch for selling opportunities. The target is set at the price of $1,201.60.

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EUR/NZD analysis for October 18, 2016

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Recently, EUR/NZD has been moving downwards.As I expected, the price tested the level of 1.5260 in a high volume. My downward target at the price of 1.5310 has been met. Using the market profile analysis, I found today's point of control at the price of 1.5330. Anyway, I still expect lower price on EUR/NZD since the supply is in a high volume and the trend is bearish. Watch for selling opportunities on the pullbacks. Take profit level is set at the price of 1.5180.

Fibonacci Pivot Points:

Resistance levels

R1: 1.5475

R2: 1.6500

R3: 1.5340

Support levels:

S1: 1.5390

S2: 1.5370

S3: 1.5330

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

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Technical analysis of USD/JPY for October 18, 2016

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USD/JPY is expected to trade with bullish bias above 103.30. The pair is consolidating and is trading below its descending 20- and 50-period moving averages. Nevertheless, a support base at 103.30 has formed and the downside attempts should be limited by this level. In addition, the relative strength index lacks downward momentum. Last but not least, even though a continuation of the consolidation cannot be ruled out, its extent should be limited.

On Monday, US stocks drifted lower as weaker oil prices weighed on energy shares, and Amazon and Netflix dragged the consumer discretionary sector. The Dow Jones Industrial Average dropped 51 points (-0.3%) to 18,086, the S&P 500 declined 6 points (-0.3%) to 2,126, and the Nasdaq Composite was down 14 points (-0.3%) to 5,199.

Amazon.com declined 1.2% and Netflix lost 1.6% at close. However, upon releasing its third quarter results and posting stronger-than-expected subscriber growth in the after-market hours, Netflix surged 20%.

On the economic data front, the Federal Reserve reported that industrial production increased 0.1% on month in September (as expected, vs. -0.5% in August). On the other hand, the Federal Reserve Bank of New York said its Empire State headline index fell to a five-month low of -6.8 in October (vs. +1.00 expected) from -2.0 in September.

Meanwhile, Federal Reserve Vice Chairman Stanley Fischer pointed out that the central bank is "very close" to its employment and inflation targets, and reiterated concerns that ultra-low interest rates may leave the US economy vulnerable to shocks. However, he mentioned it was "not that simple" for the Fed to raise rates.

Hence, as long as 103.30 is not broken, expect a new rise to 104.40 at first.

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 104.40 and the second one at 104.65. In the alternative scenario, short positions are recommended with the first target at 103.05 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 102.80. The pivot point lies at 103.30.

Resistance levels: 104.40, 104.65, 105.00

Support levels: 103.05, 102.80, 102.40

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Technical analysis of USD/CHF for October 18, 2016

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USD/CHF is expected to trade with bullish bias above 0.9855. The pair is consolidating and is trading below its 20- and 50-period moving averages. Nevertheless, 0.9855 represents a significant support level, which should limit the downside potential. The relative strength index lacks downward momentum. Even though a continuation of consolidation cannot be ruled out, its extent should be limited.

On the economic data front, the Federal Reserve reported that industrial production increased 0.1% on month in September (as expected, vs. -0.5% in August). On the other hand, the Federal Reserve Bank of New York said its Empire State headline index fell to a five-month low of -6.8 in October (vs. +1.00 expected) from -2.0 in September.

Meanwhile, Federal Reserve Vice Chairman Stanley Fischer pointed out that the central bank is "very close" to its employment and inflation targets, and reiterated concerns that ultra-low interest rates may leave the US economy vulnerable to shocks. However, he mentioned it was "not that simple" for the Fed to raise rates.

As long as 0.9855 holds on the downside look for further upside toward 0.9910 and 0.9925 in extension.

Resistance levels: 0.9910, 0.9925, 0.9945

Support levels: 0.9840, 0.9810, 0.9790

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Technical analysis of NZD/USD for October 18, 2016

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NZD/USD is expected to post some further gains. The pair broke above its upper boundary of the Bollinger Band, which could signal a continuation of bullish trend with strong momentum. The rising 20-period and 50-period moving averages act as support and maintain the upside bias. The relative strength index stands firmly above its neutrality level at 50. As long as 0.7115 holds on the downside, look for further upside toward 0.7225 and 0.7250 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 0.7225 and the second one at 0.7250. In the alternative scenario, short positions are recommended with the first target at 0.7090 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 0.7070. The pivot point lies at 0.7115.

Resistance levels: 0.7225, 0.7250, 0.7300

Support levels: 0.7090, 0.7070, 0.7015

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Technical analysis of GBP/JPY for October 18 , 2016

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GBP/JPY is under pressure. The pair remains under pressure below its horizontal resistance at 127.80, and is trading around the 20- and 50-period moving averages. Meanwhile, the relative strength index stays below 50 and lacks upward momentum. As long as 127.80 holds as the key resistance, the risk of a break below 125.90 remains high.

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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Global macro overview for 18/10/2016

Global macro overview for 18/10/2016:

The Industrial Production data from the US turned out to be a little worse than expected by global investors. The Federal Reserve revealed yesterday that the US industrial output advanced only 0.1% in September, compared to the preceding month's downgraded fall of -0.5%. Market participants anticipated a rebound of 0.3% in the reported period, which might suggest that the economy grew only at a moderate pace in the third quarter. Moreover, the industrial production is considered to be highly sensitive to changes in interest rates and consumer demand, so the current possibility of another interest rate hike by FED might be greatly influenced by the data.

Let's now take a look at the EUR/USD technical picture in the 4H time frame. The pair is clearly bouncing from the support at the level of 1.0958, but still has not tested the technical resistance at the level of 1.1043. The reason for this behavior might be the market positioning for the next big macroeconomic event on Thursday: the ECB interest rate decision and press conference. This is why the pair stays range-bounded.

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Global macro overview for 18/10/2016

Global macro overview for 18/10/2016:

The inflation data from the United Kingdom has been released this morning and it surprised market participants. The Consumer Price Index (CPI) was released at the level of 0.2% (0.2% expected and 0.3% prior) and the Core CPI ticked higher to the level of 1.5% from 1.3% a month ago, beating the estimates of 1.4% for the reporting month. The main drivers for inflation to increase were gas prices, motor fuels, and hotels. In conclusion, a slight improvement in inflation is still way below the BoE 2.0% initial target for the year, so the there is not justification to change the current monetary policy yet.

Let's now take a look at the EUR/GBP technical picture in the daily time frame. The market is still trading above all of the moving averages since the higher high has been established at the level of 0.9268. Bulls are in full control over this market and only a sustained break out below the golden trend line support would change the outlook to bearish.

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Technical analysis of USD/CAD for October 18, 2016

General overview for 18/10/2016:

The top for the wave (b) looks to be completed and now the market is developing another sub-wave to the downside. The overall shape of this progression looks more and more like a complex structure instead of typical three-wave correction. Nevertheless, the near-term outlook is still bearish as there are uncompleted wave structures.

Support/Resistance:

1.3022 - WS1

1.3102 - Intraday Resistance

1.3169 - Weekly Pivot

1.3236 - WR1

1.3028 - 1.3045 - Demand Zone

Trading recommendations:

As long as the intraday resistance is not clearly violated, day traders should consider opening sell orders as close as possible to the intraday resistance at the level of 1.3185. TP level should be set at the intraay support at the level of 1.3102.

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Technical analysis of EUR/JPY for October 18, 2016

General overview for 18/10/2016:

The intraday support has been tested for the fourth time this morning, but the market is still trading inside the horizontal congestion zone between the levels of 115.15 and 114.00. This is the main reason why the current down move does not look too much impulsive anymore: the market has spent too much time inside this zone. Nevertheless, the downward wave progression can still be continued, at least according to the bigger time frame picture. The near-term bias is down as there are still uncompleted wave structures.

Support/Resistance:

116.49 - WR2

115.43 - WR1

115.15 - Intraday Resistance

114.62 - Weekly Pivot

114.00 - Intraday Support

113.46 - WS1

112.74 - WS2

Trading recommendations:

As long as the golden trend line is not clearly violated, day traders should consider opening sell orders as close as possible to the intraday resistance at the level of 115.15. TP level is open for now, but if the level of 114.00 is broken then the next support is seen at the level of 113.67 (61% Fibo).

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Elliott wave analysis of EUR/NZD for October 18, 2016

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Wave summary:

We have just seen the expected test of the 61.8% corrective target and we will now be looking for a break above minor resistance at 1.5438 as the first good indication that a corrective low is in place, while a break above resistance at 1.5549 is needed to confirm that the corrective low in wave (ii) is in place and wave (iii) towards 1.6396 is developing. As long as minor resistance keeps at 1.5438, we need to stay flexible about the downside, as second waves are allowed to correct 100% of the first wave, which in this case means a corrective decline in wave (ii) to 1.4989.

Trading recommendation:

We have bought EUR at 1.5285 and will place our stop at 1.4985. If you are not long EUR yet, then buy near 1.5245 or upon a break above 1.5438 and use the same stop at 1.4985.

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Elliott wave analysis of EUR/JPY for October 18, 2016

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Wave summary:

The outlook remains bullish, suggesting a clear break above minor resistance at 115.05 and more importantly above resistance at 116.28 that confirms a rally towards 122.00 and above. However, as long as minor resistance at 115.05 remains intact, we must allow for more sideways consolidation. Only a break below support at 113.90 will delay the expected rally higher for a decline closer to the support-line near 113.00 before the next rally higher should be expected.

Trading recommendation:

We are long EUR from 114.56 with stop placed at 113.90. If you are not long EUR yet, then buy near 114.35 or a break above 115.05 and use the same stop at 113.90.

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Technical analysis of USDX for October 18, 2016

The Dollar index is pulling back as we expected from our latest analysis. As I said around the 98 price level, I'm bearish expecting a pullback towards 96 at least. Price is about to confirm the bearish reversal by exiting the bullish short-term channel.

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Blue lines - bullish channel

The Dollar index is breaking out and below the bullish channel. Price is expected to move towards the Ichimoku cloud support between 97 and 96 at least. The oscillators have given us the warning and that is why for the last couple of sessions I remain bearish about the index.

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Red lines - trading range

Blue lines -possible price path

The Dollar index is making higher highs and higher lows from the 91.90 low. However the form of the rise does not look impulsive implying that the upward move we are currently in is most probably part of a bigger correction. If this is true, we should pull back below 96. A drop below 96 will increase the chances that the entire rise from 91.90 is corrective and a new low should come.

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Technical analysis of Gold for October 18, 2016

For the last couple of sessions, I have expressed the bullish outlook for Gold expecting at least a bounce towards $1,280-$1,300. However, we should not ignore the possibility that the entire decline is over. Gold is trying to breakout above the short-term trading range.

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Red lines - trading range

Gold price has entered the short-term Ichimoku cloud. This implies that a short-term trend has changed to neutral from bearish. The two fake break downs we noted yesterday support my belief that Gold is about to start an upward move. For the time being, our short-term target is the upper cloud boundary at $1,285.

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On a weekly basis price has stopped the decline at the 38% Fibonacci retracement and a bounce is justified from the current levels. Important long-term resistance remains at $1,340-50 from the downward sloping trend line. Weekly support is at $1,220.

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Technical analysis of NZD/USD for October 18, 2016

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Overview:

  • The NZD/USD pair fell from the level of 0.7140 to the bottom around 0.7034. But the pair has rebounded from the bottom of 0.7034 to climb at 0.7181.
  • Today, the first resistance level is seen at 0.7205, and the price is moving in a bullish channel now.
  • Furthermore, the price has been set above the strong support at the level of 0.7140, which coincides with the 23.6% Fibonacci retracement level.
  • This support has broken easily this morning. Additionally, the RSI starts signaling an upward trend.
  • As a result, if the NZD/USD pair is able to break out the first resistance at 0.7205, the market will rise further to 0.7259 in order to test the weekly resistance 1.
  • In the H4 time frame, the pair will probably go up because the uptrend is still strong after breaking some major resistance this morning.
  • Consequently, the market is likely to show signs of a bullish trend. So, it will be good to buy above the level of 0.7140-0.7080 with the first target at 0.7206 and further to 0.7259 or higher.
  • At the same time, the breakdown of 0.7140 will allow the pair to go further down to the levels of 0.7034 in order to retest the double bottom again.
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Technical analysis of USD/CHF for October 18, 2016

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Overview:

  • The USD/CHF pair movement was controversial as it took place in a narrow sideways channel, but the trend showed signs of stability in the bullish market. Amid the previous events, the price is still moving between the levels of 0.9842 and 0.9909. Besides, the daily resistance and support are seen at the levels of 0.9909 and 0.9842 respectively. Therefore, it is recommended to be cautious while placing orders in this area. So, we need to wait until the sideways channel has completed. The market moved from its bottom at 0.9860 and continued to rise towards the top of 0.9906. But the pair has rebounded from the top of 0.9909 to close at 0.9771. Today, on the one-hour chart, the current rise will remain within a framework of correction. However, if the pair succeeds to pass through the level of 0.9909, the market will indicate a bullish opportunity above the major resistance level of succeeds (the level of 6558 coincides with the double top too). Since there is nothing new in this market, it is not bearish yet. Buy deals are recommended above the level of 0.9909 with the first target at 0.9933. If the trend breaks the first resistance level of 0.9933, the pair is likely to move upwards continuing the development of a bullish trend to the level 0.9960 in order to form a new double top in the same time frame.
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US Dollar Index Technical Analysis for October 18, 2016.

Technical outlook and chart setups:

The US Dollar Index has resumed its corrective drop after hitting 98.17 level earlier. The index is trading at 97.68 level for now, looking to drop lower further towards 97.00 level at least. Please also note that 96.94 is the fibonacci 0.382 support as depicted here. The waves structure indicates that the index has completed a 5-wave rally from 94.50 level. The current pullback would be considered as a retracement which is expected to terminate at 96.95 level. It is hence recommended to exit long positions and remain flat for now. Aggressive traders might want to go short now, with stop at 98.50 targeting 97.00 levels. Immediate resistance is at 98.13 level, while support is seen at 96.95 level respectively.

Trading recommendations:

Remain flat for now. Aggressive traders might want to remain short, stop is at 98.50, a target is at 97.00

Good luck!

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EUR/USD Technical Analysis for October 18, 2016.

Technical outlook and chart setups:

The EUR/USD pair has finally staged its much expected rally and is now trading at 1.1020 levels. Please note that the pair needs to push through 1.1060 levels to confirm that a further upside remains. If EUR/USD reverses from here, the odds are that a lower low will be hit below 1.0963 level. Meanwhile, if the pair rallies and takes out 1.1060 levels, it would confirm that bulls are back and this could be the beginning of a much awaited counter trend rally. Please note that the daily chart patterns and oscillators were showing extreme bullish divergence and prices were expected to reverse any time. 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 1.1120 level. It is hence recommended to remain long, with risk at 1.0945 levels. Immediate resistance is seen at 1.1107 level, while support is seen at 1.0950 level respectively.

Trading recommendations:

Remain long, stop at 1.0945, a target is open.

Good luck!

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Technical analysis of EUR/USD for Oct 18, 2016

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When the European market opens, no economic data will be released, but the speech of ECB President Draghi is expected. The US will publish TIC Long-Term Purchases, NAHB Housing Market Index, Core CPI m/m, CPI m/m. Amid the reports EUR/USD is likely to move in a low to medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Breakout BUY Level: 1.1063.

Strong Resistance:1.1057.

Original Resistance: 1.1046.

Inner Sell Area: 1.1035.

Target Inner Area: 1.1009.

Inner Buy Area: 1.0983.

Original Support: 1.0972.

Strong Support: 1.0961.

Breakout SELL Level: 1.0955.

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 18, 2016

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In Asia, Japan will not release any economic data today while the US will publish TIC Long-Term Purchases, NAHB Housing Market Index, Core CPI m/m, CPI m/m. So there is a probability that USD/JPY will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Resistance. 3: 104.34.

Resistance. 2: 104.14.

Resistance. 1: 103.93.

Support. 1: 103.69.

Support. 2: 103.48.

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.

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

Technical analysis of silver for October 18, 2016.

Technical outlook and chart setups:

Silver had dropped to $17.30 levels on Friday before pulling back. The structure remains unchanged for now. The metal is seen to be trading at $17.57 levels, looking to stage a counter trend rally towards $18.50/19.00 levels. Silver has just resumed pushing higher, a break above $17.70 levels should accelerate the movement. Please note that it is quite possible that the metal may resume its long term rally from here, since it has bounced from a multi-month trend line support. The wave structure also indicates that the metal is expected to produce a counter trend rally towards $18.50 levels at least. If the metal reverses from $18.50/19.00 levels, then it will 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 (not shown here). It is recommended to remain flat for now and look for opportunities to sell again on rallies. Aggressive traders should remain long with risk at $17.00 levels. Immediate resistance is seen at $18.50/19.00 levels, while support lies at $17.00 levels.

Trading recommendations:

Remain flat for now. Aggressive traders hould remain long with stop at $17.00 and targeting $18.50 at least.

Good luck!

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

Gold Technical Analysis for October 18, 2016.

Technical outlook and chart setups:

Gold had dropped lower towards $1,245.00 levels on Friday before pulling back. The metal is seen to be trading at $1,257.00 levels for now and is likely to rally from here. A push above $1,261.00 levels should accelerate the movement towards $1,280.00 and above. The wave structure also indicates that the counter trend rally is expected to terminate around the past support turned resistance zone at $1,304.00/10 levels which is Fibonacci 0.50% of the entire drop between $1,375.00 and $1,240.00 levels not depicted here. Also note that the broken support trend line will act as resistance 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 remain long with risk below $1,240.00. Immediate resistance is now seen at $1,305.00/10.00 levels, while support lies at $1,240.00 levels.

Trading recommendations:

Remain flat for now. Aggressive traders are recommended to keep long positions now with stop at $1,240.00 levels, targeting $1,310.00.

Good luck!

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

Daily analysis of major pairs for October 18, 2016

EUR/USD: The EUR/USD bounced upwards shallowly on Monday. There is a strong Bearish Confirmation Pattern on the 4-hour chart, which means further bearish movement is expected this week, and that could take price towards the support lines at 1.0950 and 1.0000. However, it is unlikely that the great support line at 1.0000 will be breached.

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USD/CHF: On October 17, 2016 this market made further efforts to challenge the important psychological level at 0.9900. It should be noted that bulls have repeatedly failed to go above the resistance level. However, due to the extant buying pressure in the market, the resistance level might be breached to the upside, and price may not go significantly upwards following that.

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GBP/USD: This currency trading instrument remains bearish both in the 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. Price is currently consolidating, but a breakout is imminent this week or next.

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USD/JPY: Although USD/JPY experienced a shallow bearish movement yesterday, there is a Bullish Confirmation Pattern on the chart. As long as price is above the demand level at 101.50, the bullish signal would be valid. Bulls may be able to target the supply levels 105.00 and 105.50 this 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 timeframe, going for quick gains). A close look at the market shows the possibility of price going further south this week due to the weakness of EUR.

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Daily analysis of USDX for October 18, 2016

USDX is looking to consolidate above the 98.00 handle, but it seems that the bearish force is still adding pressure on the index around that area. However, to confirm further advances in the US Dollar Index, one should expect a breakout above the key zone of 98.53 in order to reach the psychological level of 99.00. MACD indicator remains in the negative territory, supporting a possible bearish correction idea.

USDXH1.png

H1 chart's resistance levels: 98.01 / 98.53

H1 chart's support levels: 97.71 / 97.15

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 98.01, take profit is at 98.53 and stop loss is at 97.49.

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

Daily analysis of GBP/USD for October 18, 2016

GBP/USD had a consolidation phase on Monday, as the support level of 1.2112 remained untouched. A bearish trend line from September 30th high is still acting as dynamic resistance and we're focusing on a possible breakout below the 1.2179 level. However, if the cable manages to break the 1.2229 level, then it can test the 1.2312 level.

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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, place 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.

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