USD/CAD intraday technical levels and trading recommendations for October 19, 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, the USD/CAD pair remains trapped between the price levels of 1.3000 (61.8% Fibonacci level) and 1.3300 (50% Fibonacci level) until breakout occurs in either direction (probably to the downside).

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NZD/USD Intraday technical levels and trading recommendations for October 19, 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 19, 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 19, 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 previous 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.

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

The recent bearish closure below 1.1250 (supply level 1) maintained enough bearish pressure and enhanced the bearish side in the market again. Initial bearish targets were reached 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 for a valid BUY entry.

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Daily analysis of USD/JPY for October 19, 2016

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Overview

The USDJPY pair continues to fluctuate near the EMA50, remaining stable above it. This fact supports our positive overview which depends on the stability above 102.65 level. Stochastic returns to the oversold areas to provide positive factor that we are waiting to motivate the price to rebound bullishly and continue the bullish trend on the short term basis. Therefore, we continue to suggest the bullish trend in the upcoming sessions, reminding you that our main waited target is located at 106.63. The expected trading range for today is between 103.00 support and 105.00 resistance

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Daily analysis of EUR/JPY for October 19, 2016

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Overview

The EUR/JPY price provided new negative trading yesterday, having approached the first target at 113.60. The negative suggestion depends on the stability of the bearish channel's resistance located at 115.35 which should increase the negative pressure and push the price towards 112.20 in the medium period. Stochastic decline and its attempt to reach the oversold level will increase the chances for gaining the negative momentum and reinforce the negative suggestion until reaching the suggested targets. The expected trading range for today is between 114.70 and 112.20.

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Daily analysis of gold for October 19, 2016

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Overview

Gold price continues to fluctuate around the EMA50, break of which will open the way to continue the main bullish trend on the intraday and short-term basis. Stochastic provides positive overlapping signal now, motivating the price to trade upwards in the upcoming sessions. Therefore, we will keep our bullish overview for today with the next main target lying at 1,297.74. Importantly, holding above 1,249.94 level represents key condition to continue the suggested rise. The expected trading range for today is between 1,249.94 support and 1,285.00 resistance.

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Daily analysis of silver for October 19, 2017

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Overview

Positive attempts of the silver stopped around 17.70 yesterday as the price lost its positive momentum on the intraday time frames. In connection with that the price fluctuates within sideways and tight track, waiting to get enough positive momentum to continue the main bullish trend. In general, we will keep our bullish overview valid as long as the price is above 17.43 level. Additionally, breaching 17.80 level will ease the mission of achieving our positive targets that start at 18.30 and extend to 19.38. The expected trading range for today is between 17.40 support and 17.90 resistance.

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Technical analysis of USD/JPY for October 19, 2016

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USD/JPY is under pressure. The pair has been capped by a descending trend line since October 14 and is holding on the downside. The 20-period moving average crossed below the 50-period one, which maintains the downside bias. The relative strength index is below its neutrality area at 50, and calls for further decline.

On Tuesday, the US stocks posted gains, lifted by solid corporate earnings. The Dow Jones Industrial Average rose by 75 points (+0.4%) to 18,161, the S&P 500 gained 13 points (+0.6%) to 2,139.6, and the Nasdaq Composite was up 44 points (+0.9%) to 5,243.

Healthcare shares were market leaders. UnitedHealth rose 6.9% after reporting an over 11% increase in third-quarter revenue and raising its full-year earnings forecast. Pfizer gained 0.6% as it announced plans to launch a cheaper biosimilar to Remicade, the top selling product of Johnson & Johnson, which declined 2.6%.

On the economic data front, the U.S. Labor Department reported that Consumer Price Index (CPI) grew 1.5% on year (as expected) in September. Core CPI excluding food and energy costs increased 2.2% on year (vs. +2.3% expected).

To sum up, as long as 104.20 is not surpassed, the pair is expected to pullback to 103.65. In case of a breakout, look for further downside movement towards 103.30.

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 103.30. A break below this target will move the pair further downwards to 103.15. The pivot point stands at 104.20. 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 104.40 and the second one at 104.85.

Resistance levels: 104.40, 104.85, 105.3

Support levels: 103.30, 103.15, 102.80

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EUR/NZD analysis for October 19, 2016

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Recently, EUR/NZD has been moving sideways at the price of 1.5240. My downward target near the price of 1.5285 has been met. Using the market profile analysis, I found today's point of control at the price of 1.5242. 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 1.5190. If the price breaks the level of 1.5190, next downward target will be met at 1.5050.

Fibonacci Pivot Points:

Resistance levels

R1: 1.5375

R2: 1.5420

R3: 1.5495

Support levels:

S1: 1.5230

S2: 1.5190

S3: 1.5115

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

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Technical analysis of USD/CHF for October 19, 2016

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USD/CHF is expected to trade in higher range as the bias remains bullish. The pair is consolidating, having broken below its 20-period moving average, but is still trading above the 50-period one. In addition, 0.9865 represents a significant key support level, which should limit the downside potential. The relative strength index stands firmly above its neutrality level at 50 and lacks downward momentum.

As long as the key support at 0.9865 remains intact, look for a further upside toward 0.9915 and 0.9930 in extension.

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

Resistance levels: 0.9915, 0.9930, 0.9945

Support levels: 0.9850, 0.9825, 0.9790

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Technical analysis of NZD/USD for October 19, 2016

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NZD/USD is expected to trade with a bullish bias. The technical picture of the pair is bullish above its rising 20-period and 50-period moving averages, which act as support and maintain the upside bias. The relative strength index is above its neutrality level at 50 and lacks downward momentum. Additionally, 0.7155 is playing a key support role, which should limit the downside potential. As long as 0.7155 holds on the downside, look for a further upside toward 0.7250 and 0.7280 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 0.7250 and the second one at 0.7280. In the alternative scenario, short positions are recommended with the first target at 0.7155 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 0.7125. The pivot point lies at 0.7175.

Resistance levels: 0.7250, 0.7280, 0.7300

Support levels: 0.7155, 0.7125, 0.7070

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Technical analysis of GBP/JPY for October 19 , 2016

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The GBP/JPY pair is consolidating on the upside but is still trading above its rising 50-period moving average, which plays a support role and maintains the upside bias. The relative strength index is above its neutrality level at 50 and lacks downward momentum. Additionally, 126.80 is playing a key support role, which should limit the downside potential. As long as 126.80 is support, look for a further upside with targets at 128.15 and 128.70 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 128.15 and the second one at 128.70. In the alternative scenario, short positions are recommended with the first target at 126.30 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 125.90. The pivot point lies at 126.80.

Resistance levels: 128.15, 128.70, 130.00

Support levels: 126.30, 125.90, 124.80

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Gold analysis for October 19, 2016

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Since our previous analysis, gold has been upwards. The price tested the level of $1,270.65 in an average volume. 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 a 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. According to 30M time frame and using the market profile analysis, I found a point of control for today at the price of $1,262.60. Sellers may decide to re-test the point of control.

Fibonacci pivot points:

Resistance levels:

R1: 1,261.35

R2: 1,262.00

R3: 1,262.15

Support levels:

S1: 1,260.50

S2: 1,260.30

S3: 1,259.75

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

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Technical analysis of NZD/USD for October 19, 2016

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Overview:

  • The NZD/USD pair continues to move upwards from the level of 0.7140 (resistance becomes support). Today, the first support level is currently seen at 0.7140, 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. Moreover, a minor support is seen at 0.7200. This support has been rejected several times confirming the veracity of an uptrend today. According to the previous events, we expect the NZD/USD pair to trade between 0.7140 and 0.7259. Therefore, the market is likely to show signs of a bullish trend around the spot of 0.7200. In other words, buy orders are recommended above the spot of 0.7200 with the first target at the level of 0.7259; and continue towards 0.7313. So, the support levels are seen at 0.7140 - 0.7200, while daily resistance level are found at 0.7259 - 0.7313. On the other hand, if the NZD/USD pair fails to break through the resistance level of 0.7313. Thus, the trend will probably be rebounded again from the this level as long as the level of 0.7313 is not broke.
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Technical analysis of USD/CHF for October 19, 2016

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Overview:

Key level: 0.9909

  • The USD/CHF pair:
  • The bias remains bullish in nearest term testing 0.9933 or higher. The pair will probably go up because upward trend is still strong.
  • 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.
  • Right now, 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.
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Global macro overview for 19/10/2016

Global macro overview for 19/10/2016:

Interesting comments from Saudi Arabia energy minister Khalid A. Al-Falih has hit the mass media recently. He mainly commented about the oil market and the global economy as a whole. He said, that economic fundamentals are improving and the oil market is clearly balancing. Moreover, he said that the OPEC can impose a continued stabilizing influence if members make joint efforts as the alignment among oil producers is increasing. At the end he added, that some Non-OPEC producers are showing a willingness to freeze or cut production, but more clarity needed on production in Libya, Nigeria, and Venezuela. To sum up, Falih stated a quite optimistic point of view, but in general he reiterated all thorny problems and issues that OPEC members are dealing with.

Let's now take a look at the Crude Oil technical picture in 4H time frame. The market is still trading above all of the moving averages and recently it broke above the dashed trend line. This action might suggest tha tthe bull camp wants to wants to test the recent high at the level of 51.58 again. The key support is still at the level of 49.13.

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Global macro overview for 19/10/2016

Global macro overview for 19/10/2016:

The September UK labor market data were released this morning and they were pretty much in line with market expectations. The Claimant Count Change data were better than expected as market participants anticipated a 3k increase after 2.4k increase a month ago, but the figure revealed was at the level of 0.7k only. Moreover, Average Earnings excluding Bonus data are holding up nicely with 2.3% increase after 2.1% a month ago. In conclusion, the UK jobs market continues to look solid and so far, there are no signs of the post-Brexit catastrophe yet.

Let's now take a look at the GBP/USD technical picture in the intraday time frame. The good news from the UK has made the intraday sentiment more positive, so bulls are trying to break out above the technical resistance at the level of 1.2324. If this level is clearly broken then the next resistance is seen at the level of 1.2478.

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Technical analysis of USD/CAD for October 19, 2016

General overview for 19/10/2016:

The main count has been little changed to incorporate the latest wave development. It looks like the market is evolving towards a more complex structure now. The local low at the level of 1.3054, just above the demand zone, had been labeled as W, so the current upward move might be a part of a X wave. The top for the wave X is projected at the level of 1.3185. Nevertheless, the near-term outlook is still bearish as there are uncompleted wave structures.

Support/Resistance:

1.3022 - WS1

1.3169 - Weekly Pivot

1.3236 - WR1

1.3139 - Intraday Resistance

1.3055 - Intraday Support

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 support at the level of 1.3139. TP level should be set at the intraday support at the level of 1.3054.

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Technical analysis of EUR/JPY for October 19, 2016

General overview for 19/10/2016:

The weekly pivot has been tested and rejected, so the market has moved towards the 61%Fibo at the level of 113.67. This wave development does not look too much impulsive so far as there is too many overlapping sub-waves.This means that the corrective structure on higher time frames might continue to evolve into a more complex and time-consuming pattern. The near-term bias is downward as there are still uncompleted wave structures.

Support/Resistance:

116.49 - WR2

115.43 - WR1

114.62 - Weekly Pivot

114.00 - Intraday Resistance

113.67 - 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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Technical analysis of USDX for October 19, 2016

The Dollar index is moving sideways near its recent highs. Price has broken out of the bullish channel but there is no bearish trend in any time frame. Price is moving sideways in what we could say is a triangle pattern.

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Green lines - bullish channel

Blue lines - triangle pattern

The Dollar index is consolidating near its recent highs. Short-term support is at 97.65 and resistance at 98.15. A breakout above resistance is expected to be short-lived as oscillators are diverging. A break below support will open the way for a push towards 96.

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Red lines - sideways long-term channel

Green line - important medium-term support

Blue lines - projected possible path

I expect the Dollar index to make at least one pullback towards the green trend line support and the Kumo. A bounce will then follow most probably, but for now I focus on the bearish side of the index expecting a pullback from the current levels.

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Technical analysis of EUR/USD for Oct 19, 2016

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When the European market opens, some economic data will be released such as German 30-y Bond Auction. The US will release a series of macroeconomic reports such as Beige Book, Crude Oil Inventories, Housing Starts, and Building Permits. So amid the reports, EUR/USD will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Breakout BUY Level: 1.1026

Strong Resistance:1.1020

Original Resistance: 1.1009

Inner Sell Area: 1.0998

Target Inner Area: 1.0973

Inner Buy Area: 1.0948

Original Support: 1.0937

Strong Support: 1.0926

Breakout SELL Level: 1.0920

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 19, 2016

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In Asia, Japan will release the All Industries Activity index while the US will publish the Fed's Beige Book, Crude Oil Inventories, Housing Starts, Building Permits. So there is a probability the USD/JPY will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Resistance. 3: 104.25.

Resistance. 2: 104.05.

Resistance. 1: 103.84.

Support. 1: 103.60.

Support. 2: 103.39.

Support. 3: 103.18.

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 Gold for October 19, 2016

Gold price continues to trade sideways inside a tight trading range. A breakout above $1,263 will open the way for a push higher towards $1,280-90. I'm bullish at current levels.

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Red lines - trading range

Gold price has entered the 4-hour Ichimoku cloud. A trend is neutral. We could see a push towards the upper cloud boundary. This is my minimum bounce target. Support is at $1,250. Up to now any push below $1,250 has been met by buying strength.

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On the daily chart, Gold price has broken above the daily tenkan-sen (red line indicator). This is a sign of strength that implies a move towards the kijun-sen (yellow line indicator) is very possible. Oscillators are diverging at oversold levels and we have another warning for Gold bears. This is the area to think of buying and not shorting Gold.

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Daily analysis of major pairs for October 19, 2016

EUR/USD: There is a Bearish Confirmation Pattern on the EUR/USD 4-hour chart, and price could continue going further downwards, reaching the support lines at 1.0950 and 1.0900. The further price goes south, the more opposition it encounters from bulls.

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USD/CHF: Since last week, this pair has not been able to go above the resistance level at 0.9900. Bulls would continue to lay siege to that resistance level until they finally breach it to the upside, targeting more resistance levels above. Should bulls fail to go above the resistance level at 0.9900, that could lead to a possibility of a large pullback.

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GBP/USD: The Cable has gone upwards by 150 pips this week, but this is seen as a bullish effort in the context of a downtrend. There is a need for price to go up by at least, 1000 pips, before there can be any threat to the extant long-term bearish outlook in the market. Until that happens, any rallies seen here would turn out to be opportunities to sell short.

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USD/JPY: This currency trading instrument has not gone anywhere significantly this week, but a significant rise in momentum is expected before the end of this week or next, which would take price above the supply levels at 104.50 and 105.00. A breakout to the downside would take price below the supply levels at 103.00 and 102.50.

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EUR/JPY: The EUR/JPY cross is consolidating to the downside. The price is under the supply level at 114.50, and it could go further downwards. The EMA 11 is below the EMA 56, and the RSI period 14 is below the level 50. A gradual bearish signal is forming and that could lead to a clear Bearish Confirmation Pattern in the market.

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USD/JPY time to start buying

We turn from bearish to bullish on USD/JPY as we see major support at 103.69 (Fibonacci retracement, Fibonacci projection) and will play the rise to 104.41.

RSI (34) is above a long-term ascending support which is holding price up.

Buy above 103.69. Stop loss at 103.29. Take profit at 104.41.

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AUD/USD below major resistance, prepare to sell

Price has made a push up to our major descending resistance line resistance at 0.7691. We expect a reaction off this level for a drop to at least 0.7620.

RSI (34) is right below major resistance signalling a reversal is fast approaching.

Stochastic (21,5,3) is also seeing major resistance at 92%.

Sell below 0.7691. Stop loss at 0.7716. Take profit at 0.7620.

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US Dollar Index Technical Analysis for October 19, 2016.

Technical outlook and chart setups:

The US Dollar Index dropped towards 97.60 levels yesterday before pulling back. The index is trading at 97.80 for now, looking to drop lower further towards 97.00/96.95 levels at least. Please also note that 96.94 is the fibonacci 0.382 support of the rally between 95.00 and 98.20 levels, as depicted here. The wave structure indicates that the index has completed 5-wave rally from 95.00 levels. The current pullback would be considered as a retracement which is expected to terminate at 96.95 (wave 4 of a larger degree). 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 levels, while support is seen at 96.95 levels respectively.

Trading recommendations:

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

Good luck!

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

Technical analysis of EUR/USD for October 19, 2016.

Technical outlook and chart setups:

The EUR/USD pair has finally staged its much expected rally and hit 1.1024 levels yesterday before pulling back. It is seen to be trading at 1.0988 levels for now and needs to push through 1.1060 levels to confirm further upside. Please note that probability for a lower low reduced since the pair is holding well above 1.0950 levels. EUR/USD is expected to rally and take out 1.1060 levels to confirm that bulls are here to remain longer. Importantly, 1.1100 levels can provide stiff resistance. Looking at the wave structure, the pair seems to be preparing for yet another run towards 1.1085 and 1.1120 levels. It is hence recommended to remain long, with risk at 1.0945 levels. Immediate resistance is seen at 1.1107 levels while support lies at 1.0950 levels.

Trading recommendations:

Remain long, stop at 1.0945, target is open.

Good luck!

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

Technical analysis of silver for October 19, 2016.

Technical outlook and chart setups:

The silver had dropped to $17.30 levels before pulling back and hit $17.70 levels hinting a break out. The metal is seen to be trading at $17.63 levels for now, looking to stage a counter trend rally towards $18.50/19.00 levels. Currently, it is expected to correct lower and then push above $17.70 levels. Since the silver has bounced off a multi-month support trend line, the trend is likely to continue from here. 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 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 levels respectively(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 are recommended to 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

Elliott wave analysis of EUR/NZD for October 19, 2016

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Wave summary:

The corrective decline from 1.5764 has extended lower to the 78.6% corrective target at 1.5133. A bottom will likely develop shortly for a new impulsive rally to above 1.5764. However, to confirm that the corrective decline is complete, a break above resistance at 1.5462 is needed.

To confirm that the long-term corrective decline from 1.9023 is complete, a break above 1.5764 is needed, but once seen a strong impulsive rally higher to 1.6931 and 1.8021 should be expected.

Trading recommendation:

We are long EUR from 1.5285 with stop placed at 1.4985. If you are not long already, then buy near 1.5133 and use the same stop at 1.4985.

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

Elliott wave analysis of EUR/JPY for October 19, 2016

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Wave summary:

The failure to rally above minor resistance at 115.05 has kept the correction from 116.28 intact, but also risks a deeper corrective decline closer to 113.53 and maybe even lower to 113.00. Only a direct break above minor resistance at 114.68 and more importantly a break above 115.05 will confirm the correction is complete and a new rally to 116.28 and 118.47 is ahead.

Trading recommendation:

Our stop at 113.90 has now been hit. We will re-buy a break above 114.68.

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

Technical analysis of gold for October 19, 2016

Technical outlook and chart setups:

Gold has tested its upper boundary at $1,265.00 levels today and a consistent break higher will confirm that the metal is heading towards $1,305.00 levels. It is seen to be trading at $1,263.00 levels for now and should be looking to correct lower before resuming rally. The wave structure also indicates that the counter trend rally is expected to terminate around the past support turned resistance zone at $1,304.00/10.00 levels, which is Fibonacci 0.50% of the entire drop between $1,375.00 and $1,240.00 levels not shown 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 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 remain long 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 USDX for October 19, 2016

The US dollar index still struggles to consolidate above the psychological level of 98.00. CPI data from the United States was a weak catalyst to deliver more bulls in the short term. The 200 SMA on the H1 chart remains untouched, so the index will attempt another break higher at the 98.00 level. If it succeeds in doing this, then it can cling towards the 98.53 price zone.

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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 19, 2016

The pair had a bullish momentum following the good data released from the UK during Tuesday's session and now, we can see that the resistance level of 1.2312 is being challenged across the board. The 200 SMA is also located at this levels as H1 chart shows. If GBP/USD manages to break it with a bullish candlestick, then it can rally towards the 1.2427 level, while a pullback should deliver bearish force to test the 1.2229 level.

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H1 chart's resistance levels: 1.2312 / 1.2427

H1 chart's support levels: 1.2229 / 1.2155

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 1.2229, take profit is at 1.2155 and stop loss is at 1.2301.

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