USD/CAD intraday technical levels and trading recommendations for October 24, 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) will be needed 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 1.3360 (50% Fibonacci level) until breakout occurs in either direction.

Note that the USD/CAD pair is currently challenging the upper limit of the depicted flag pattern around 1.3360 which constitutes a prominent resistance level.

Bearish rejection should be anticipated around the current price levels (Primary Scenario). However, bullish breakout above 1.3360 will probably liberate a quick bullish movement towards 1.3650 (Low probability scenario).

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NZD/USD Intraday technical levels and trading recommendations for October 24, 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.

On October 20, the mark of 0.7245 was a prominent Key-Level to determine the next destination for the NZD/USD pair.

As Expected, evident bearish rejection around 0.7250 offered a valid SELL signal (already running in profits). Initial T/P levels should be located at 0.7070 and 0.6970.

On the other hand, note that 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.

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Intraday technical levels and trading recommendations for GBP/USD for October 24, 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. Hence, bearish projection target would be located around 1.2020.

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 24, 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 depicted supply levels (note the monthly candlesticks of May, June, and August 2016).

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 momentum towards the price level of 1.0990 (Key-Level 1).

Bullish rejection was expected around the price level of 1.0990 (Key Level-1). However, extensive bearish pressure and significant bearish closure below 1.0900 was expressed.

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 short-term BUY entry.

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Global macro overview for 24/10/2016

Global macro overview for 24/10/2016:

The Fed policy members speeches this afternoon will arouse much interest, coming almost a week before the November meeting. Two of the speakers, James Bullard and William Dudley, may attract particular interest. Both of them are Fed voting members, so their comments may cause an increased volatility on financial markets during NY/London session today. Nevertheless, the overall expectations ahead of Fed meeting in December are still elevated towards the immediate interest rate hike already. The CME Group FedWatch Tool is indicating the 91% probability of 25-50 bps rate hike and 9% probability of 50-75 bps rate hike in December, so currently the market is positioning itself towards even more stronger USD. Only a series of serious comments from Fed policymakers contradicting the current hawkish policy towards the interest rates may change the general consensus.

Let's now take a look at the US Dollar index technical picture on the daily time frame. The market has broken above the golden trend line and currently is trading above all the moving averages, indicating a valid bullish breakout. The bulls are clearly in control over this market and the next resistnace is seen at the level of 99.84, just below the one-year high at the level of 100.50. The immediate support is seen at 97.57.

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Technical analysis of EUR/USD for October 24, 2016

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Overview:

  • The USD/EUR pair fell sharply from the level of 1.0938 towards 1.0856. Now, the price is set at 1.0888. The resistance is seen at the level of 1.0938 and 1.0989. Moreover, the price area of 1.0938 and 1.0989 remains a significant resistance zone. Therefore, there is a possibility that the USD/EUR pair will move downside and the structure of a fall does not look corrective. The trend is still below the 100 EMA for that the bearish outlook remains the same as long as the 100 EMA is headed to the downside. Thus, amid the previous events, the price is still moving between the levels of 1.0938 and 1.0856. If the USD/EUR pair fails to break through the resistance level of 1.0938, the market will decline further to 1.0856 as as the first target. This would suggest a bearish market because the RSI indicator is still in a negative spot and does not show any trend-reversal signs. The pair is expected to drop lower towards at least 1.0822 so as to test the daily support 2. Also, it should notice that the third support is seen at the level of 1.0790. On the contrary, if a breakout takes place at the resistance level of 1.0989, then this scenario may become invalidated.
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EUR/NZD analysis for October 24, 2016

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Recently, EUR/NZD has been moving sideways at the price of 1.5200. On 30M time frame, I found strong resistance cluster at the price of 1.5210-1.5215. Be careful when buying EUR/NZD at this stage and watch for potential selling opportunities. The first downward target is set at the price of 1.5160.

Fibonacci Pivot Points:

Resistance levels

R1: 1.5210

R2: 1.5222

R3: 1.5240

Support levels:

S1: 1.5170

S2: 1.5160

S3: 1.5140

Trading recommendations for today: Watch for potential selling opportunties.

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Technical analysis of NZD/USD for October 24, 2016

NZD/USD found the resistance at 76.4% Fibs applied to the descending channel breakout point. The pair broke below the uptrend trendline and currently it is rejecting the 50 Moving Average. The MA should act as resistance inviting sellers.

Consider selling NZD/USD at the current rate (0.7170) while it is near 50 MA, targeting either 38.2% (0.7120) or 23.6% Fibs. (0.7075). The suggested stop loss should be very tight at 0.7183.

Support: 0.7157, 0.7120, 0.7076

Resistance: 0.7193, 0.7238

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Technical analysis of XAU/USD for October 24, 2016

XAU/USD is still expected to fall lower after breaking 161.8% Fibs applied to the last corrective wave where downtrend trendline was rejected.

After the breakout, gold rejected 161.% Fibs and can move lower. At the same time, further consolidation for a short term is possible.

Consider selling gold while the price is near $1,270, targeting either 261.8% ($1,225) or 361.8% Fibs ($1,177). The stop loss should be just above $1,300 resistance level.

Support: $1,225, 1,177

Resistance: $1,273, 1,303

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Gold analysis for October 24, 2016

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Since our previous analysis, gold has been trading sideways around the price of $1,264.00. According to the 30M time frame and using the market profile analysis, I found the strong point of control area at the price of $1,266.00. The price rejected successfully from the point of control, which is a clear sign of weakness. The price is also trading below the Ichimoku cloud. Watch for potential selling opportunities. The first downward station is set at the price of $1,262.50 and $1,261.00.

Fibonacci pivot points:

Resistance levels:

R1: 1,267.20

R2: 1,267.50

R3: 1,267.95

Support levels:

S1: 1,266.15

S2: 1,265.95

S3: 1,265.45

Trading recommendations for today: Weakness on the Gold. Watch for potential selling opportunties.

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Technical analysis of GBP/USD for October 24, 2016

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Overview:

  • The GBP/USD pair: The market opened below the weekly resistance of 1.2314. It continued to move downwards from the level of 1.2300 to the bottom around the spot of 1.2206 - 1.2240. This week, the first resistance level is seen at 1.2314 followed by 1.2403, while daily support 1 is seen at 1.2206. The GBP/USD pair broke support which turned to strong resistance at 1.2314 since last week. Right now, the pair is trading below this level. It is likely to trade in a lower range as long as it remains below the support (1.2314) which is expected to act as major resistance in coming days. This would suggest a bearish market because the moving average (100) is still in a negative area and does not show any signs of a trend reversal at the moment. Amid the previous events, the GBP/USD pair is still moving between the levels of 1.2314 and 1.2119. Therefore, the major resistance can be found at 1.2314 providing a clear signal to sell with a target seen at 1.2200. If the trend breaks the minor support at 1.2200, the pair will move downwards continuing the bearish trend development to the level of 1.2119 in order to test the daily support 2 in coming days. Overall, we still prefer the bearish scenario which suggests that the pair will stay below the zone of 1.2314 this week.
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Global macro overview for 24/10/2016

Global macro overview for 24/10/2016:

The series of flash manufacturing and services PMI data from the Eurozone were published this morning and they were mostly better than expected. Germany Manufacturing PMI was released at the level of 55.1 vs. 54.3 prior and 54.3 expected, and the Services PMI was at the level of 54.1 vs. 50.9 and 51.9 expected. The French manufacturing PMI has beat expectations as well, printing the result of 51.3 vs. 49.7 prior and 50.2 expected. The only one that did miss the market expectations was the French services PMI that was released at the level of 52.1 vs. 53.3 prior and 54.1 expected. Overall, the composite PMI for the Eurozone is still growing and it is currently at the level of 53.7 points (52.8 expected and 52.6 prior). According to the data, the economy does not look bad in the fourth quarter, enjoying its strongest expansion so far this year with the promise of more to come.

Let's now take a look at the EUR/USD technical picture on the 4H time frame. After the sell-off occured last week, the market is trying to bounce back amid positive reports from the Eurozone. Nevertheless, the bulls look too weak to test the nearest technical resistance at the level of 1.0909 as the bounce is really marginal. The sequence of lower highs and lower lows clearly indicates a down trend and any rally attempt will be considerd only as corrective.

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Technical analysis of USD/CAD for October 24, 2016

General overview for 24/10/2016:

The daily chart of the recent wave development between the levels of 1.2460 - 1.3339 looks clearly corrective, mainly due to the plenty of whipsaws, false breakouts and overlapping sub-waves. The current labeling relates to the complex corrective triple-three structure, labeled as the waves WXYXXZ brown. All of them are a part of a larger time frame correction labeled on the chart as waves A and B (purple). The question remains, whether the current progression to the upside in about to terminate around the 38%Fibo at the level of 1.3311 or the market will push higher towards the next resistance level (and possibly upper channel boundary). The intraday chart might suggest that only two more waves are missing here to terminate the overall corrective pattern in wave B (purple) just around the 38%Fibo level. From the top of the wave a (green) at the level of 1.3358 the intraday wave progression supports a bearish wave development towards the level of 1.3200 before any last rally upwards will happen. The growing negative divergence supports the view as well.

Support/Resistance:

1.3358 - Wave a Top

1.3311 - Intraday Resistance

1.3290 - 1.3311 - Demand Zone

1.3255 - Weekly Pivot

1.3157 - WS1

Trading recommendations:

Day traders might consider opening sell orders only for an intraday trade. The SL should be placed tight (15-20 pips) and TP might be placed at the level of 1.3281 or lower.

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Technical analysis of EUR/JPY for October 24, 2016

General overview for 24/10/2016:

The bottom for the wave c (green) might be in place already as the lower parallel channel line has provided support for the price around the level of 112.50. This would mean the market will now try to develop wave (b) to the upside and the first obstacle is the intraday resistance at the level of 113.10. The projected target for this wave might be at the level of 114.05, where the weekly resistance level one and the 78% Fibo might provide resistance for the price. Moreover, please notice the wave (b) might evolve into a more complex and time-consuming pattern.

Support/Resistance:

111.98 - WS1

112.07 - Intraday Support

113.10 - Intraday Resistance

113.14 - Weekly Pivot

114.05 - WR1

115.39 - WR2

Trading recommendations:

Day traders might consider opening buy orders only if the intraday resistance level is clearly violated. The SL should be placed tight (15-20 pips) and TP might be placed at the level of 114.05.

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Elliott wave analysis of EUR/NZD for October 24, 2016

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EUR/NZD - Daily

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EUR/NZD - 4-Hourly

Wave summary:

Here too the correction from 1.5764 has been very deep (as is the case for EUR/JPY). This of course makes us a bit cautious, but then we know, that second waves are allowed to correct 100% of the first impulsive wave. It means a decline to 1.4989 is allowed, but at no point can a break below 1.4989 be accepted as that will invalidate our bullish count. So we continue to expect important support at 1.4989 will protect the downside for a break above minor resistance at 1.5292 indicating more upside towards 1.5523 and above towards 1.5764 and 1.6396.

A break below 1.4989 will invalidate the bullish outlook, but the downside should remain limited to 1.4891.

Trading recommendation:

We are long EUR from 1.5285 with stop placed at 1.4985. If you are not long EUR yet, then buy a break above 1.5292 and use the same stop at 1.4985.

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Elliott wave analysis of EUR/JPY for October 24, 2016

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EUR/JPY - Daily

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EUR/JPY - 4-Hourly

Wave summary:

The decline from 116.25 has been very deep. However, as long as support holds at 112.56 and more importantly support at 112.05 is able to act as a floor, more upside is expected for this cross. Our preferred count remains that a long-term corrective low was found with the test of 109.48 and a new impulsive rally now is building. However, the base for this new impulsive rally is currently building and picking the lows has proven harder than expected. This obviously makes us a bit cautious, but second waves are allowed to correct 100% of the first wave, so we need to allow for a return to 112.56 and if wave (ii) isn't complete yet a move even lower to 109.48. To confirm the next rally higher, we need a break above minor resistance at 114.52 and more importantly a break above 115.15 for the next rally towards 120.00 and 122.00 on the way higher.

Trading recommendation:

We will by EUR here at 112.95 with stop placed at 112.00.

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Technical analysis of USDX for October 24, 2016

The Dollar index made a new high at 98.84. The trend remains bullish but as I have been saying for the last couple of sessions, bulls need to be very cautious as a trend reversal is very close. I continue to believe that the Dollar index is about to make an important top soon.

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Red line - long-term support trend line

Blue lines - consolidation range

Green lines -bullish channel

The Dollar index has broken out of the consolidation range and made a new high. However the RSI did not make a new high providing another bearish divergence. There is no trend reversal confirmation but only a warning for bulls.

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Green line - long-term support

Red line - long-term resistance

The Dollar index remains in breakout mode heading towards the long-term resistance level of 99. Trend remains bullish. A back test towards cloud support should not be canceled. This could happen after we see a rejection at the 99 resistance area. Overall I believe this is not a good risk/reward level to be buying the Dollar index.

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Technical analysis of gold for October 24, 2016

The gold price has pulled back to test the breakout area of $1,262 again. I believe this week it is ready for another move higher towards $1,280-90 at least. Gold has made an important low at $1,247, and a new up trend has started that will push it back towards $1,300 and maybe above it.

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Red line - resistance (broken) now support

The gold price is above the 4 hour Ichimoku cloud and is bouncing off the trend line support that was once resistance. This pull back is a healthy back test for bulls that will now push it to a higher high after making a higher low. This pattern supports higher prices.

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The weekly candles remain above the tenkan-sen (red line indicator) and are targeting the kijun-sen (yellow line indicator). As long as price is above $1,260 bulls have more chances of success. I remain longer-term bullish.

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Technical analysis of the US dollar index for October 24, 2016

Technical outlook and chart setups:

The US dollar index printed another high at 98.84 levels last week before retracing lower. The index is trading at 98.70 levels for now, looking to drop lower further towards 97.60 and 97.30 levels at least. Please also note that 97.60 is immediate support while 97.30 is the Fibonacci 0.618 support of the rally between 96.40 and 98.85 levels as depicted here. The wave structure indicates that the index has completed 5 waves rally from 95.40 levels. It is now expected to drop lower in a corrective manner (3 waves) towards 97.60 levels at least. It is hence recommended to exit long positions and remain flat for now. Aggressive traders can go short now with stop at 98.90 targeting 97.60 levels. Immediate resistance is at 98.85 levels, while support lies at 97.60 levels.

Trading recommendations:

Remain flat for now. Aggressive traders may want to remain short, stop at 98.90, target 97.60

Good luck!

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EUR/USD Technical Analysis for October 24, 2016.

Technical outlook and chart setups:

The EUR/USD pair prints yet another low at 1.0859 levels last week before pulling back. The pair is seen to be trading at 1.0870 levels for now and needs to push through 1.1040 levels to confirm further upside or to complete retracement. Please note that probability remains for a surprise pullback rally since smaller time frames are showing bullish divergences since last week. The pair is expected to rally and take out 1.1040 levels to confirm that bulls are here to remain longer and extend rally through 1.1100 levels or it would be a 4-wave retracement. Please note that 1.1100 levels would provide stiff resistance if prices manage to reach there since it is fibonacci 0.618 resistance of the entire drop between 1.1234 through 1.0895 levels. Looking at the wave structure, the pair looks to be preparing to push higher towards 1.1040 and 1.1100 levels. It is recommended to remain flat for now and look for further evidence for a bottom formation. Immediate resistance is seen at 1.1040 levels, while support is seen at 1.0850 levels respectively.

Trading recommendations:

Remain flat for now.

Good luck!

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Daily analysis of major pairs for October 24, 2016

EUR/USD: The EUR/USD pair was able to go downwards by more than 100 pips last week. Since October 10, 2016 price has gone down by over 300 pips. The outlook on the market, as well as other EUR pairs, is bearish for this week. Therefore, we may witness a slow and steady bearish movement that would take price towards the support lines at 1.0850 and 1.0800 this week.

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USD/CHF: From October 12 to October 20, bulls made a decisive move to the resistance level at 0.9900. After much persistent bullish pressure, bears gave way as price went upwards, testing the resistance level at 0.9950, and the retracing bit. Because USD is strong and because CHF is expected to drop further this week (allowing other major pairs to go upwards against it). There may be some bullish movement that would push USD/CHF above the resistance level at 0.9950 this week.

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GBP/USD: This currency trading instrument went upwards from Monday till Wednesday, and then consolidated till the end of the week. This is best called a kind of consolidation in the context of a downtrend. The outlook on GBP pairs is bullish for this week, but the bullish movement on GBP/USD might not be significant enough to threaten the ongoing major bullish bias.

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USD/JPY: This market moved sideways throughout last week, but the bullish bias in it is still visible. This week, momentum would rise as price resumes its recent bullish journey, targeting the supply levels at 104.50 and 105.00. The outlook on other JPY pairs is bullish for this week, and USD/JPY is no exception.

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EUR/JPY: One major reason why this cross dropped by 170 pips last week was because EUR is weak. Further weakness in EUR would cause more southward journey, for there is a clean Bearish Confirmation Pattern in the market. However, we may witness some rally in case the Yen becomes weaker than the EUR this week.

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Silver Technical Analysis for October 24, 2016.

Technical outlook and chart setups:

Silver is seen to be trading at $17.54 level for now, looking to push higher towards $18.20 level at least. The metal is lagging slightly behind its counterpart Gold but it should accelerate and push through interim highs from here. The metal has tested the fibonacci 0.786 support of its recent upswing as seen here and hence ideally prices should remain above $17.30 levels from here on. The wave structure also indicates that the metal is expected to produce a counter trend rally this week and terminate around $18.50 level. A turn lower from there would push prices lower towards $16.50 level before resuming rally, which is the fibonacci 0.618 support of earlier rally. It is recommended to remain flat for now and look for opportunities to short again on rallies; aggressive traders please remain long with risk at $17.00 level. Immediate resistance is seen at $18.50/19.00 levels, while support is at $17.00 level respectively.

Trading recommendations:

Aggressive traders may remain long with stop at $17.00 and targeting $18.50 at least. Conservative trade setup would be to go short on rallies towards $18.50 levels.

Good luck!

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EUR/JPY profit target reached, time to buy

Price has dropped perfectly from our resistance level to our profit target on Friday. We turn bullish above 112.65 major support (Fibonacci projection, horizontal support, bullish divergence) for a push up to 113.94.

RSI (34) is seeing major support at 24% and has displayed bullish divergence vs price.

Stochastic (34,5,3) is above major support at 4% and also displaying bullish divergence vs price.

Buy above 112.65. Stop loss at 112.03. Take profit at 113.94.

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AUD/USD profit target reached again, time to buy

Price has dropped perfectly to our profit target on Friday once again. We are ready to buy above 0.7583 major support (Fibonacci retracement, Fibonacci projection, horizontal support) for a push up to 0.7657.

RSI (34) is right above major ascending support.Stochastic (21,5,3) is right above major support at 9.2% where we expect a bounce from.

Buy above 0.7583. Stop loss at 0.7550. Take profit at 0.7657.

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Technical analysis of USD/JPY for October 24, 2016

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USD/JPY is expected to trade with a bearish bias as the key resistance is seen at 104.20. Technically, the pair posted a technical rebound, but is still under pressure below the nearest resistance at 104.20. Even though a continuation of the rebounds cannot be ruled out, its extent should be limited by 104.20. The U.S. dollar continued to strengthen against most major currencies. It gained versus the euro for a fourth straight session, the longest winning streak since March, after European Central Bank President Mario Draghi hinted at no tapering of the central bank's asset purchases.

As long as 104.20 is not surpassed, the pair is likely to decline to 103.50 and 103.15 in extension.

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 103.50. 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 104.50 and the second one at 104.85.

Resistance levels: 104.50, 104.85, 105.35

Support levels: 103.50, 103.15, 102.75

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Technical analysis of USD/CHF for October 24, 2016

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USD/CHF is expected to trade in a higher range as the bias remains bullish. The pair broke below its 20-period and 50-period moving averages. The relative strength index is below its neutrality level at 50. Nevertheless, a support base has formed around 0.9915, which should limit the downside potential. Even though a continuation of consolidation cannot be ruled out, its extent should be limited. The US dollar continued to strengthen against most major currencies. It gained versus the euro for a fourth straight session, the longest winning streak since March, after European Central Bank President Mario Draghi hinted at no tapering of the central bank's asset purchases.

As long as 0.9915 is not broken, look for a further upside toward 0.9970. A break above this level would call for a further advance toward 1.

Resistance levels: 0.9970, 1.0000, 1.0075

Support levels: 0.9895, 0.9870, 0.9850

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Gold Technical Analysis for October 24, 2016.

Technical outlook and chart setups:

Gold seems to have made an interim bottom at $1,261.00 level last week and bulls should be looking to push higher this week. The metal is trading at $1,264.00/65.00 levels for now and should be looking to push higher towards $1,280.00/90.00 levels from here. Please note that the metal is bouncing off from past resistance which turned into support as depicted here. The wave structure also indicates that the counter trend rally that began from $1,241.00 level is expected to terminate around $1,304.00/10.00 levels, which is not shown since a shorter time frame is presented. Please note that prices have bounced off from the fibonacci 0.50% support as discussed earlier. 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 is at $1,260.00 level respectively.

Trading recommendations:

Aggressive traders remain long now with stop at $1,240.00 level, targeting $1,310.00. Conservative trade setup is to go short at higher levels.

Good luck!

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Technical analysis of NZD/USD for October 24, 2016

NZDUSDM30.png

NZD/USD is under pressure. The pair is trading below its 50-peirod moving average, which plays a resistance role and maintains the downside bias. The relative strength index is below its neutrality level at 50 and is turning down. Additionally 0.7185 is playing a key resistance role, which should limit the upside potential. As long as this key level is not broken, look for a further drop toward 0.7125 and 0.7095 in extension.

The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 0.7125. A break below this target will move the pair further downwards to 0.7095. The pivot point stands at 0.7185. In case the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, long positions are recommended with the first target at 0.7205 and the second one at 0.7230.

Resistance levels: 0.7205, 0.7230, 0.7250

Support levels: 0.7125, 0.7095, 0.7070

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

Technical analysis of GBP/JPY for October 24, 2016

GBPJPYM30.png

GBP/JPY is under pressure. The pair is trading within a bearish channel, which confirms a negative view. The declining 50-period moving average suggests that the pair still has potential for a further drop. In addition, the relative strength index is below its neutrality level at 50 and lacks upward momentum. As long as 127.30 holds on the upside, look for a further drop toward 126.10 and 125.85 in extension.

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 126.10. A break below this target will move the pair further downwards to 125.85. The pivot point stands at 127.30. 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 127.60 and the second one at 127.90.

Resistance levels: 127.60, 127.90, 128.70

Support levels: 126.10, 125.85, 125.25

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

Technical analysis of EUR/USD for Oct 24, 2016

!_EUR_USD.jpg

When the European market opens, some reports will be posted in the economic calendar such as Flash Services PMI, Flash Manufacturing PMI, German Flash Services PMI, German Flash Manufacturing PMI, French Flash Services PMI, and French Flash Manufacturing PMI. The macroeconomic report from the US is the Flash Manufacturing PMI. So amid the reports, EUR/USD will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Breakout BUY Level: 1.0931.

Strong Resistance:1.0925.

Original Resistance: 1.0914.

Inner Sell Area: 1.0903.

Target Inner Area: 1.0878.

Inner Buy Area: 1.0853.

Original Support: 1.0842.

Strong Support: 1.0831.

Breakout SELL Level: 1.0825.

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 24, 2016

!_USD_JPY.jpg

In Asia, Japan will release the Flash Manufacturing PMI and Trade Balance. The US will release some economic news such as Flash Manufacturing PMI. 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: 104.44.

Resistance. 2: 104.24.

Resistance. 1: 104.03.

Support. 1: 103.79.

Support. 2: 103.58.

Support. 3: 103.37.

Disclaimer: Trading Forex (foreign exchange) on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

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

Daily analysis of USDX for October 24, 2016

USDX managed to end the week holding the bullish bias across the board, as the index is still trading above the 98.00 psychological level. Currently, the target to the upside remains in place at the 99.19 level, where strong resistance is located. If the index does a breakout over there, then we can expect a rally towards the 99.70 level. However, MACD indicator is entering the negative territory.

USDXH1.png

H1 chart's resistance levels: 99.19 / 99.70

H1 chart's support levels: 98.53 / 98.01

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 99.19, take profit is at 99.70 and stop loss is at 98.68.

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

Daily analysis of GBP/USD for October 24, 2016

GBP/USD finished the last week within a negative tone as the pair managed to consolidate below the 200 SMA on H1 chart. On Friday, we saw an attempt to break below the 1.2229 level, but the Cable is struggling to consolidate below that zone. Currently, our targets remain bearish and next key support is located at the 1.2155 level.

GBPUSDH1.png

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, 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