Intraday technical levels and trading recommendations for GBP/USD for October 26, 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.

Yesterday, recent bullish recovery was manifested around 1.2080. That's why, a bullish pullback may be executed towards 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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USD/CAD intraday technical levels and trading recommendations for October 26, 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 26, 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.

Please take into consideration that the price level around 0.7100 (Lower limit of the depicted channel) constitutes a short-term Support Level.

That's why, temporary bullish recovery is being expressed before further bearish decline can take place.

Note that the price zone between 0.6960-0.6860 remains a significant support zone to be watched for a valid BUY entry if bearish pullback manage to extend below 0.7100.

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Intraday technical levels and trading recommendations for EUR/USD for October 26, 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.

Earlier yesterday, recent bullish recovery was manifested around 1.0850.

On the other hand, any bullish pullback towards 1.0990 (Key Level-1) should be considered for a valid SELL entry.

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Gold analysis for October 26, 2016

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Since our previous analysis, gold has been trading sideways around the price of $1,271.00. According to the 30M time frame and using the market profile analysis, I found rejection of extreme swing high at the price of $1,276.30 from yesterday, which is sign of weakness. Watch for selling opportunities on the pullbacks. First downward target is set at the price of $1,262.00.

Fibonacci pivot points:

Resistance levels:

R1: 1,273.85

R2: 1,276.20

R3: 1,280.00

Support levels:

S1: 1,266.00

S2: 1,263.85

S3: 1,260.00

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

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Elliott wave analysis of EUR/NZD for October 26, 2016

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Wave summary:

We are still looking for a clear break above minor resistance at 1.5292 to confirm that the correction from 1.5764 completed with the test of 1.5066, and that a new impulsive rally to above 1.5764 is developing.

As long as minor resistance at 1.5292 is able to cap the upside, we might see more consolidation within the 1.5066 - 1.5292 area, but a new impulsive rally will ideally be seen soon for the rally to 1.5764 and above towards 1.6396.

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 26, 2016

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Wave summary:

The break above the resistance-line from 116.28 is the first strong indication that the corrective decline in red wave ii completed at 112.57 and red wave iii to above 116.28 now is developing.

A break above resistance at 114.52 will confirm that red wave ii completed at 112.57, and that red wave iii higher to 116.28 and above is developing.

Our preferred long term count continues to support that the corrective decline from 149.56 completed at 109.48 and that a new impulsive rally is developing.

Trading recommendation:

We are long EUR from 112.95 and will move our stop higher to 113.20. If you are not long EUR yet, then buy near 113.84 or upon a break above 114.52, and use the same stop at 113.20

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EUR/NZD analysis for October 26, 2016

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Recently, EUR/NZD has been moving upwards. On 30M time frame and using market profile, I found a strong two days point of control at the price of 1.5190. Momentum is on bullish side. Watch for buying opportunities on the dips. Targets are set at the price of 1.5270 and 1.25840. There is a broken downward channel in the background, which is another sign of strength.

Fibonacci Pivot Points:

Resistance levels

R1: 1.5260

R2: 1.5285

R3: 1.5325

Support levels:

S1: 1.5180

S2: 1.5155

S3: 1.5115

Trading recommendations for today: Watch for potential buying opportunties.

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Technical Analysis of the US Dollar Index for October 26, 2016.

Technical outlook and chart setups:

The US Dollar Index has printed yet another high at 99.11 levels yesterday, taking stops out before pulling back sharply. The index is trading at 98.51 levels for now, looking to drop lower further towards 97.60 levels at least as depicted here. (Since the chart was prepared a few hours back, partial effect is already seen). Please also note that 97.60 is immediate support and also the Fibonacci 0.382 support of the rally between 95.05 and 99.11 levels, as depicted here (wave iii). The wave structure indicates that the index has now completed 5 waves rally of a lesser degree from 95.05 levels. It is now expected to drop lower in a corrective manner (3 waves) towards at least 97.60 levels. Please note that the counter trend extension is also pointing towards 97.70 levels as depicted here. It is hence recommended to remain flat for now. Aggressive traders might want to again go short now, with stop at 99.30 targeting 97.60 levels. Immediate resistance is at 99.10 levels, while support is seen at 97.60 levels respectively.

Trading recommendations:

Remain flat for now. Aggressive traders might want to remain short, stop at 99.30, target 97.60

Good luck!

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EUR/USD Technical Analysis for October 26, 2016.

Technical outlook and chart setups:

The EUR/USD pair had print fresh lows towards 1.0851 levels yesterday, before reversing sharply and breaking above its sideways range. The pair is seen to be trading at 1.0920 levels for now and should be poised to push through 1.0992 levels at least as depicted here (kindly note that the chart was prepared a few hours back and hence the effect is already observed). Please note that probability remains for a continued push higher in a counter trend rally this week. It is expected to rally and take out 1.1040 levels to confirm that bulls are here to remain longer or it would be considered as wave 4 pullbacks. The probability for wave 4 terminations at 1.1040 levels remains high at this moment according to wave counts discussed yesterday. Looking at the wave structure, the pair looks to be in a corrective wave 4 rallies which should ideally terminate around 1.1040 levels. It is recommended to go long now, with risk below 1.0850 levels. Immediate resistance is seen at 1.1040 levels, while support is seen at 1.0850 levels respectively.

Trading recommendations:

Remain long now, stop below 1.0850 levels, target is 1.1040.

Good luck!

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Technical Analysis of Silver for October 26, 2016.

Technical outlook and chart setups:

Silver had also pushed higher towards $17.86 levels yesterday and remained shy by just a couple pips from previous highs. The metal is seen to be trading at $17.68 levels for now, looking to correct lower towards $17.60/65 levels before resuming higher again (please note that the chart was prepared a few hours back and hence the drop has already been realized). The metal seems to have formed interim lows at $17.51 levels, and it should hold well if the bullish structure is to remain intact. As an alternate though, if prices drop below the trend line support as depicted here, the metal could be heading to test $17.30 levels at least. The wave structure indicates that the metal is poised to produce a counter trend rally this week and terminate around $18.50 levels. A turn lower from there would push prices lower towards $16.50 levels before resuming 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 $17.30 levels. Immediate resistance is seen at $18.50/19.00 levels, while support is at $17.30 levels respectively.

Trading recommendations:

Aggressive traders may remain long, with stop at $17.30 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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Gold Technical Analysis for October 26, 2016.

Technical outlook and chart setups:

Gold has rallied and print yet another high at $1,276.00/77.00 levels as seen here. The metal is trading at $1,271.00 levels for now and should be looking to push higher towards $1,280.00/1300.00 levels from here. A corrective drop towards $1,266.00 levels is possible, though before pushing higher. Please note that the metal should push through the past support turned resistance zone around $1,304.00 levels as discussed yesterday. The wave structure also indicates that the counter trend rally that began from $1,241.00 levels is expected to terminate around $1,304.00/10.00 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 $1,260.00. Immediate resistance is now seen at $1,305.00/10.00 levels, while support is at $1,260.00 levels respectively.

Trading recommendations:

Aggressive traders remain long now with stop at $1,260.00 levels, targeting $1,310.00. Conservative trade setup is to go short at higher levels.

Good luck!

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Technical analysis of USDX for October 26, 2016

The Dollar index is reversing confirming the warning signs I've been giving for the last few sessions. Price is about to break the bullish channel but bulls should not worry for the longer-term trend as long as price is above 95. However, a bearish scenario implies that we could be at the start of a bigger than normal reversal that could bring price below 92.

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Green lines - bullish channel

Red line - long-term support

The Dollar index is turning lower as expected. Support is at 98.40-97.80. Only a break below this area will probably bring in more sellers towards 96.50. The 96.50 is the breakout level on a weekly basis and a back test towards that area is very possible.

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Red lines - long-term trading range

Green line - important medium-term support

Price is getting rejected at the upper trading range boundary. The bearish scenario that implies a move below 92 will increase its chances if price breaks below 96.50-95 area. Until then Dollar bulls will still have hopes that this pull back is a buying opportunity. Personally, I believe that price will continue to trade inside the trading range and currently bearish positions are favored.

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Technical analysis of USD/JPY for October 26, 2016

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USD/JPY is expected to trade with bullish bias. From a technical view, the pair pulled back yesterday from its recent top at 104.90, and is now testing the nearest support at 103.75. The 20-period moving average is now turning down, calling for caution. As long as 103.75 holds on the downside, look for a new rebound to 104.45 and 104.90 in extension. On Tuesday, U.S. stocks slipped, dragged by some blue chips' lowered forecasts and weaker-than-expected consumer confidence. The Dow Jones Industrial Average declined 53 points (-0.3%) to 18,169, the S&P 500 dropped 8 points (-0.4%) to 2,143, while the Nasdaq Composite was down 26 points (-0.5%) to 5,283.

The U.S. dollar eased from recent highs against the euro, British pound and Japanese yen overnight after Bank of England Governor Mark Carney signaled that the chances of another interest-rate cut this year are diminishing. The ICE U.S. Dollar Index marked a session-high of 99.119, the highest intraday level since February 1, before settling at 98.719, down from 98.756 Monday.

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 104.45 and the second one at 104.90. In the alternative scenario, short positions are recommended with the first target at 103.50 if the price moves below its pivot point. A break of this target is likely to push the pair further downwards, and one may expect the second target at 103.20. The pivot point lies at 103.75.

Resistance levels: 104.45, 104.90, 105.20

Support levels: 103.50, 103.20, 102.85

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Technical analysis of gold for October 26, 2016

Gold price has broken above the trading range and is making higher highs and higher lows. I remain short-term bullish looking for $1,300 to be reached. My long-term view remains bullish.

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Blue line - resistance

Red line - support

Gold price is above the Ichimoku cloud making higher highs and higher lows. As long as price is above $1,250 I remain short-term bullish looking for $1,300-$1,290. Short-term support is at $1,265 and next at $1,250. Resistance is at $1,290-$1,300.

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The daily chart remains bullish looking for a push at least towards the kijun-sen (yellow line indicator). The tenkan-sen (red line indicator) has held and price is breaking out now towards $1,300. Price could also reach the cloud if we close above the kijun-sen.The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of USD/CHF for October 26, 2016

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USD/CHF is expected to tade with bullish bias above 0.9900. The pair is consolidating and is trading below its 20-period and 50-period moving averages. The relative strength index is below its neutrality level at 50. Nevertheless, 0.9915 (Oct 24 bottom) represents a significant key support level, which should limit the downside potential. Even though a continuation of consolidation cannot be ruled out, its extent should be limited.

As long as 0.9900 is not broken, we keep our positive view unchanged with up target at 0.9970 first. A break above this level would call for a further advance toward 1.0000.

Resistance levels: 0.9970, 1.0000, 1.0075

Support levels: 0.9870, 0.9850, 0.9810

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Technical analysis of NZD/USD for October 26, 2016

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NZD/USD is expected to trade with bearish bias. The pair is trading above its rising 20-period and 50-period moving averages. The relative strength index is above its neutrality level at 50 and lacks downward momentum. The intraday indicators are mixed and call for caution. We are cautiously negative now. As long as the key resistance at 0.7205 is not broken up, we keep our negative view unchanged with down target at 0.7135 first.

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 0.7135. A break below this target will move the pair further downwards to 0.7105. The pivot point stands at 0.7205. 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 0.7230 and the second one at 0.7255.

Resistance levels: 0.7230, 0.7255, 0.7285

Support levels: 0.713, 0.7105, 0.7075

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Technical analysis of GBP/JPY for October 26, 2016

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GBP/JPY is expected to trade with bearish bias as the key resistance at 127.35. The pair shows further downside potential after it failed to break above its key resistance at 127.35. The declining 50-period moving average is also playing a resistance role and suggests that the pair still has potential for a further drop. The relative strength index is below its neutrality level at 50 and lacks upward momentum. The British pound dropped to a low of 1.2081 to the U.S. dollar, the lowest intraday level since the "flash crash" on October 7, before paring some losses following Carney's comments. In his testimony to the House of Lords Economic Committee, Carney pointed out, "The balance of supply and demand in the exchange rate can shift, and we're not a targeter of the exchange rate, we're a targeter of inflation. But we're not indifferent to the exchange rate. As I've tried to make clear, that perception may well be mistaken, what we have to address as a committee, what we have to take into account as a committee is where sterling is and how persistent it likely is to be".

As long as 127.35 is not broken, look for further drop toward 126.55 and even 126.10 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 126.55. A break below this target will move the pair further downwards to 126.10. The pivot point stands at 127.35. 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 127.70 and the second one at 127.95.

Resistance levels: 127.70, 127.95, 128.15

Support levels: 126.55, 126.10, 125.25

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Global macro overview for 26/10/2016

Global macro analysis for 26/10/2016:

Existing home sales in September bounced back after declines in the previous two months, and that might be a sign that today's data release at 02:00 pm GMT on newly built homes is heading for a rebound as well. On the other hand, the market participants expect a slide for the second month in a row with sales edging lower in September to 601,000 units (annualized rate), a three-month low. The demand remains strong, caused by recent solid job gains, accelerating wages and very low mortgage rates, but global investors might take into account, that despite improving activity in September the positive outlook for a gradual increase in home-building will likely drag on Q3 GDP. In conclusion, the near-term prospects for a housing recovery remain elevated, but today's number must beat the expectations to support this view.

Let's now take a look at the EUR/USD technical picture at the 4H time frame before the news are published. The pair has bounced from the support at the level of 1.0855 and broken out above the next technical resistance at the level of 1.0909 (now support). Nevertheless, the rally looks corrective and the bigger time frame view remains bearish. The next resistnace is seen at the level of 1.0963.

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Technical analysis of EUR/USD for Oct 26, 2016

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When the European market opens, some Economic Data will be released, such as Italian Retail Sales m/m, German Import Prices m/m, GfK German Consumer Climate. The US will release the economic data, too, such as Crude Oil Inventories, New Home Sales, Flash Services PMI, Prelim Wholesale Inventories m/m, Goods Trade Balance, so, amid the reports, EUR/USD will move in a low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Breakout BUY Level: 1.0939.

Strong Resistance: 1.0933.

Original Resistance: 1.0922.

Inner Sell Area: 1.0911.

Target Inner Area: 1.0886.

Inner Buy Area: 1.0861.

Original Support: 1.0850.

Strong Support: 1.0839.

Breakout SELL Level: 1.0833.

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 26, 2016

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In Asia, Japan will release the SPPI y/y and the US will release some Economic Data such as Crude Oil Inventories, New Home Sales, Flash Services PMI, Prelim Wholesale Inventories m/m, Goods Trade Balance. So, there is a probability the USD/JPY will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Resistance. 3: 104.81.

Resistance. 2: 104.60.

Resistance. 1: 104.40.

Support. 1: 104.14.

Support. 2: 103.94.

Support. 3: 103.73.

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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Global macro overview for 26/10/2016

Global macro analysis for 26/10/2016:

The Energy Information Administration will release the Crude Oil Inventories data today at 02:30 pm GMT and the global investors anticipate a shortage of 2 000k barrels (last week has a shortage of 5,200k barrels). Moreover, according to the Interfax agency, the Russia's envoy at OPEC, Vladimir Voronkov, said output cuts aren't "an option for us" and so Russia won't join OPEC to curb supply glut. This kind of comments around the production agreement/disagreement has been coming in and out from the financial mass media for the last month and this time might be no different. We all remember Iraq made it clear at the last OPEC meeting that they weren't going to make a cut in production and will allow the market regulate the oil prices in the near-term. OPEC Secretary-General Mohammed Barkindo said the 14-nation group is facing its toughest challenge after meeting Al-Luaibi for talks in Baghdad on Tuesday. In conclusion, the non-OPEC producers are trying to persuade the other members to join the cuts, but so far the talks bring no agreement.

Let's now take a look at the Crude Oil technical picture before the inventories data. After yesterday's comments from Voronkov the prices of oil dropped to the next technical support at the level of 49.13, so now oil is trading below all of the moving averages at this time frame. The bigger time frame trend is still bullish and as long as the gray rectangle zone between the levels of 49.13 - 48.44 (marked on chart) is not clearly violated, the trend remains bullish. The next resistance is seen at the level of 49.58.

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Technical analysis of USD/CHF for October 26, 2016

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Overview:

  • The USD/CHF pair will probably go up because the upward trend is still strong on the daily chart. Today, there are no changes in my technical outlook. The bias remains bullish in nearest term testing 1.0065 or higher. The USD/CHF pair is expected to rise further from the level of 0.9781 in the long term. It should be noted that the support is established at the level of 0.9781 which represents the 38.2% Fibonacci retracement level on the daily chart. The price is likely to form a double bottom on the same time frame. Accordingly, the USD/CHF pair is showing signs of strength, following a breakout of the high at 0.9880. So, buy above the level of 0.9880 with the first target at 0.9989 in order to test the daily resistance 1 and further to 1.0065. Additionally, the level of 1.0065 is a good point to take profit. Overall, we still prefer the bullish scenario. On the other hand, in case a reversal takes place and the USD/CHF pair breaks through the support level of 0.9885, a further decline to 0.9778 can occur which would indicate a bearish market.
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Technical analysis of NZD/USD for October 26, 2016

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Overview:

  • The NZD/USD pair continues to move upwards from the level of 0.7149. Yesterday, the pair rose from the level of 0.7149 which coincides with a ratio of 50% (Fibonacci retracement) to a top around 0.7177. Today, the first support level is seen at 0.7149 followed by 0.7122, while daily resistance 1 is seen at 0.7216. According to the previous events, the NZD/USD pair is still moving between the levels of 0.7149 and 0.7216; for that, we expect a range of 67 pips (0.7216 - 0.7149). On the one-hour chart, immediate resistance is seen at 0.7177, which coincides with a ratio of 61.8% Fibonacci retracement. Currently, the price is moving in a bullish channel. This is confirmed by the RSI indicator, signaling that we are still in a bullish trending market. The price is still above the moving average (100). Therefore, if the trend is able to break out through the first resistance level of 0.7177, we should see the pair climbing towards the daily resistance at 0.7216 to test it. However, it would also be wise to consider where to place stop loss; this should be set below the second support of 0.7110.
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Technical analysis of USD/CAD for October 26, 2016

General overview for 26/10/2016:

The market keeps trading in a very tight congestion zone just below the recent local high at the level of 1.3397, but the lower levels are anticipated, as there are still uncompleted internal sub-waves in the market. The sudden decline towards the demand zone has been labeled as the wave a (black) of the overall corrective structure. There is still wave b (black) and c (black) missing from the overall correction. The projected target for wave c (black) has been raised to the level of 1.3250, just below the weekly pivot at the level of 1.3255.

Support/Resistance:

1.3397 - Wave a Top

1.3290 - 1.3311 - Demand Zone

1.3255 - Weekly Pivot

1.3157 - WS1

Trading recommendations:

Day traders might again consider opening the sell orders with SL just above the recent swing high and TP at the level of 1.3255.

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Technical analysis of EUR/JPY for October 26, 2016

General overview for 26/10/2016:

The market is still trading within the channel zone as the bulls are trying to break out above the level of 113.90. From the Elliott Wave Principle point of view, the current upward wave progression might be an impulsive cycle that can reach the projected target at the level of 114.50. Nevertheless, please, notice the wave (b) might evolve into a more complex and time-consuming pattern if it keeps trading inside of the channel.

Support/Resistance:

111.98 - WS1

113.14 - Weekly Pivot

113.26 - Intraday Support

114.05 - WR1

114.50 - Intraday Resistance

115.39 - WR2

Trading recommendations:

The buy orders from yesterday should be kept open with SL set to BE and TP1 still set at the level of 114.05, and TP2 set at the level of 114.50.

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Technical analysis of USDX for October 26, 2016

The Dollar index is reversing confirming the warning signs I've been giving for the last few sessions. Price is about to break the bullish channel but bulls should not worry for the longer-term trend as long as price is above 95. However a bearish scenario implies that we could be at the start of a bigger than normal reversal that could bring price below 92.

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Green lines - bullish channel

Red line - long-term support

The Dollar index is turning lower as expected. Support is at 98.40-97.80. Only a break below this area will probably bring in more sellers towards 96.50. The 96.50 is the breakout level on a weekly basis and a back test towards that area is very possible.

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Red lines - long-term trading range

Green line - important medium-term support

Price is getting rejected at the upper trading range boundary. The bearish scenario that implies a move below 92 will increase its chances if price breaks below 96.50-95 area. Until then Dollar bulls will still have hopes that this pull back is a buying opportunity. Personally, I believe that price will continue to trade inside the trading range and currently bearish positions are favored.

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Technical analysis of gold for October 26, 2016

Gold price has broken above the trading range and is making higher highs and higher lows. I remain short-term bullish looking for $1,300 to be reached. My long-term view remains bullish.

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Blue line - resistance

Red line - support

Gold price is above the Ichimoku cloud making higher highs and higher lows. As long as price is above $1,250 I remain short-term bullish looking for $1,300-$1,290. Short-term support is at $1,265 and next at $1,250. Resistance is at $1,290-$1,300.

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The daily chart remains bullish looking for a push at least towards the kijun-sen (yellow line indicator). The tenkan-sen (red line indicator) has held and price is breaking out now towards $1,300. Price could also reach the cloud if we close above the kijun-sen.The material has been provided by InstaForex Company - www.instaforex.com

Daily analysis of major pairs for October 26, 2016

EUR/USD: This market has moved sideways so far – in the context of a downtrend. Further downwards movement is expected, for price could reach the support lines at 1.0850 and 1.0800. The support line at 1.0850 was reached and would be reached again. EUR pairs would be going down this week; so the EUR/USD would be no exception.

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USD/CHF: The USD/CHF went briefly above the support level at 0.9950, but bears came into force price back below that level. The bias remains bullish and it is expected that price would continue trudging upwards, but not significantly. An important resistance level is at 1.0000.

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GBP/USD: The bias on the 4-hour and daily charts is bearish (that is the dominant bias), though the market has been in the equilibrium phase since last week. This means that a breakout is imminent, which is supposed to favor bulls. But the bullish movement would not be significant enough to override the dominant bullish bias.

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USD/JPY: The bullish signal on the USD/JPY remains valid, owing to the Bullish Confirmation Pattern in the market. Bulls are still willing to push price further northwards, and so, the supply levels at 105.00 and 105.50 might be tested today or tomorrow.

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EUR/JPY: What is happening on this cross is best termed a bullish attempt in the context of a downtrend. The bullish attempt was not significant enough to threaten the current bearish bias. The EMA 11 is below the EMA 56, and the RSI period 14 is below the level 50. It is possible that price would come down again, especially when EUR exhibits more weakness.

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Daily analysis of USDX for October 26, 2016

USDX did a strong pullback during yesterday's American session, following a journey of gains, but the index remains supported by the 98.53 level across the board. Overall, it's expected to see a rally attempt towards the 99.19 level, where a breakout should open the doors to visit the 99.70 level. MACD indicator is entering the negative territory, calling for another downside extension.

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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.

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Daily analysis of GBP/USD for October 26, 2016

GBP/USD had a very volatile session during Tuesday, as we saw a huge decline before BoE's Carney testimony. However, when the central bank's governor started to speak, the Cable managed to recover some ground above the 1.2100 handle, and now it's consolidating the price action very close to the 1.2200 psychological level. If the pair does a breakout below the 1.2155 zone, then we can expect a bearish continuation towards the 1.2105 level.

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H1 chart's resistance levels: 1.2229 / 1.2310

H1 chart's support levels: 1.2155 / 1.2105

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 1.2155, take profit is at 1.2105 and stop loss is at 1.2208.

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