Intraday technical levels and trading recommendations for USD/CAD for October 27, 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, 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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Intraday technical levels and trading recommendations for NZD/USD for October 27, 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 keeps 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 manages to extend below 0.7100.

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Intraday technical levels and trading recommendations for GBP/USD for October 27, 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.

This week, 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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Intraday technical levels and trading recommendations for EUR/USD for October 27, 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 this week, recent bullish recovery was manifested around 1.0850. Any bullish pullback towards 1.0990 (Key Level-1) should be considered for a valid SELL entry.

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Elliott wave analysis of EUR/NZD for October 27, 2016

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Wave summary:

We have now seen the expected break above short-term important resistance at 1.5292 confirming more upside towards 1.5764 and higher towards 1.6396 longer-term.

The former resistance at 1.5292 should ideally act as a floor for the rally higher to 1.5500 and 1.5764, but even if a break back below 1.5292 is seen, it is expected to be short-lived and stop near 1.5278 for the next rally higher.

Trading recommendation:

We are long EUR from 1.5285 and will move our stop higher to 1.5170. If you are not long EUR yet, then buy near 1.5292 and use the same stop at 1.5170.

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Elliott wave analysis of EUR/JPY for October 27, 2016

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Wave summary:

A break above important short-term resistance at 114.52 seems to be imminent. A clear break above 114.52 will confirm continuation to 116.28 and above towards 118.47 and 122.00.

Short term, support is seen near 114.16 which we expected will act as a floor for the rally higher to 116.28 and above.

Trading recommendation:

We are long EUR from 112.95 and will move our stop higher to 113.60. If you are not long EUR yet, then buy a break above 114.52 and use the same stop at 113.60.

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EUR/NZD analysis for October 27, 2016

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Recently, EUR/NZD has been moving upwards. The price tested the level of 1.5305 in a high volume. Upward target from yesterday at the price of 1.5270 has been met. On 30M time frame and using market profile, I found breakout of upward extremes, which is sign of strength. Momentum is on bullish side. Watch for buying opportunities on the dips. Targets are set at the price of 1.5330 and 1.25390. There is also successful rejection of previous swing high area at 1.5290, which now became a strong support.

Fibonacci Pivot Points:

Resistance levels

R1: 1.5265

R2: 1.5290

R3: 1.5330

Support levels:

S1: 1.5185

S2: 1.5160

S3: 1.5115

Trading recommendations for today: Watch for potential buying opportunities.

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Gold analysis for October 27, 2016

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Since our previous analysis gold has been trading downwards. The price tested the level of $1,264.53. The price reached my downward target from yesterday at the price of $1,268.75. According to the 30M time frame and using the market profile analysis, I found rejection of extreme swing low at the price of $1,265.00, which is sign of strength. Watch for buying opportunities. Upward targets are set at the price of $1,274.15 and $1,276.15.

Fibonacci pivot points:

Resistance levels:

R1: 1,271.15

R2: 1,272.20

R3: 1,273.60

Support levels:

S1: 1,268.00

S2: 1,267.85

S3: 1,265.50

Trading recommendations for today: Strengthen the Gold. Watch for buying opportunities on the dips.

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Technical analysis of USD/CAD for October 27, 2016

General overview for 27/10/2016:

The market has tested the local high at the level of 1.3397, but bulls were not strong enough to break out above the top so far. The sudden decline towards the demand zone has been labeled as the wave -a- (black) of the overall corrective structure. This recent high might be labeled as wave -b- (black). There is still wave 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 27, 2016

General overview for 27/10/2016:

The golden trend line had been tested from the bottom and the market has bounced back again into the supply zone. 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 might be partially closed as the first TP at the level of 114.05 had been hit already. The other part of the trade might be kept open with the TP set at the level of 114.50.

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Daily analysis of major pairs for October 27, 2016

EUR/USD: This market has moved sideways so far – in the context of a downtrend. Further downwards movement is expected as the price could reach the support lines at 1.0850 and 1.0800. The support line at 1.0850 was reached and can be reached again. Rallies here should be taken as opportunities to sell further.

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USD/CHF: There is still a Bullish Confirmation Pattern on the USD/CHF. The EMA 11 is above the EMA 56, and the Williams' % Range period 20, being in the oversold territory, means that price could trend higher. This means that the Williams' % Range period 20 could be seen moving higher in tandem with ongoing bias.

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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. That could happen this week or next.

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USD/JPY: This pair has managed to climb slightly above the demand level at 104.50. Bulls should be able to target the supply levels at 105.00 and 105.50, especially in order to avoid possible pullbacks in the market, which could threaten the current bullish outlook. Some fundamental figures are expected to be released today and they could have impact on the market.

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EUR/JPY: From the beginning of this trading week till now the price has been making attempts to go higher, and this has started posing threat to the recent short-term bearish trend. A movement above the supply zone at 115.00 can result in new bullish signal; while a movement below the demand zone at 113.00 can emphasize the recent bearish trend.

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Technical analysis of USDX for October 27, 2016

The Dollar index has pulled back towards the lower channel boundary and the top of the support range which I mentioned yesterday. The index still looks like it is making a bearish reversal and I would expect more Dollar weakness over the coming weeks.

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Green lines - bullish channel

Red line - medium-term support trend line

Price is testing the lower channel support at 98.40. A break below it will open the way for a push towards the Kumo cloud at 98-97.80 area. The bearish divergence has warned dollar bulls and I believe a major top is possible.

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Red lines - long-term trading range

Green line - medium-term trend line support

The weekly candle is shaping up to be a very bearish one confirming trend reversal. A weekly close below 98.30 will be a bearish signal. Important long-term resistance is found at 99.50, so even if we make a higher high, the upside potential is very limited. Bulls need to be very cautious as I believe we can see a bigger degree reversal here.

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Technical analysis of NZD/USD for October 27, 2016

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Overview:

  • The NZD/USD pair continues moving upwards from the level of 0.7149.
  • The pair rose from the level of 0.7149 which coincides with a ratio of 50% (Fibonacci retracement) to a top around 0.7177.
  • The first support level is seen at 0.7149 followed by 0.7122/0.7089, while daily resistance 1 is seen at 0.7216.
  • The price spots at 0.7122 and 0.7089 remain a significant support zone. Thus, the trend is still bullish as long as the level of 0.7089 is not breached.
  • Amid the previous events, the NZD/USD pair is still moving between the levels of 0.7149 and 0.7216, so we expect a range of 67 pips (0.7216 - 0.7149).
  • On the 1H 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.
  • 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.
  • On the other hand, it would also be wise to consider where to place stop loss; this should be set below the second support of 0.7089.
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Technical analysis of gold for October 27, 2016

Gold price pulled back towards short-term support of $1,262 yesterday but still remains above support and above recent low at $1,260. I expect Gold price to push upwards from the current levels towards $1,280-$1,300.

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Gold price has pulled back towards the Ichimoku cloud on the 4-hour chart. Resistance is found at $1,268-70. Support is at $1,265-60. Gold price is expected to push higher. If support fails then we could see another test at the important $1,250 support.

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Gold price remains above the daily tenkan-sen support (red line indicator) and I expect it to reach the kijun-sen resistance (yellow line indicator). Only a break above the kijun-sen will push it higher towards $1,320-25 where the daily cloud resistance is found. A break below $1,250 will open the way for a push towards $1,220.The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of USD/CHF for October 27, 2016

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Overview:

  • The USD/CHF pair reached a new maximum. Today price may reach one more maximum at level of 0.9943 and then start new correction towards the level of 0.9910 (at least). We expect the USD/CHF pair to continue moving in a bullish trend from the support levels of 0.9910 and 0.9900. Currently, the price is in a bullish channel. This is confirmed by the RSI indicator signaling that we are still in a bullish trending market. Immediate support is seen at 0.9910, which coincides with a ratio of 38.2% Fibonacci. Consequently, the first support is set at the level of 0.9910. So, the market is likely to show signs of a bullish trend around the spot of 0.9910/0.9900. In other words, buy orders are recommended above the 0.9910 price with the first target at the level of 0.9967. Furthermore, if the trend is able to break out through the first resistance level of 0.9967, we should see the pair climbing towards the double top (0.9998) to test it. It would also be wise to consider where to place a stop loss; this should be set below the second support of 0.9889.
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Technical analysis of CAD/JPY for October 27, 2016

It appears CAD/JPY changed the direction from an uptrend to a downtrend after breaking both 200- and 50-Moving averages and at the same time the ascending channel.

Fibonacci applied to the channel breakout point shows that the pair broke below the 23.6% level opening the doors for another wave down towards the next Fibs support.

Consider selling CAD/JPY while price is near 38.2% Fibs resistance (78.22), targeting 0% Fibs (77.33). The suggested stop loss is 78.30.

Support: 77.88, 77.33

Resistance: 78.22, 78.50

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Technical analysis of GBP/CAD for October 27, 2016

After breaking both 200- and 50-Moving Averages, GBP/CAD could now continue rising furhter. After breaking MAs, the pair found the support first on 200MA and then on 50MA.

Consider buying GBP/CAD, while the pair is near the upward trend line (1.6360) targeting 161.8% Fibs (1.6510) applied to the last corrective wave down, where price rejected 200 MA. The suggested stop loss is below 1.6300 psychological support.

Support: 1.6300

Resistance: 1.6510

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Technical analysis of CAD/CHF for October 27, 2016

CAD/CHF found the top at 0.7600 and started to decline sharply. The pair broke below both 200- and 50-Moving Averages, while at the same time breaking below the uptrend trend line.

It this setup a trend appears to become bearish, so price is likely to continue moving lower. Consider selling CAD/CHF while price is near 50% Fibs (0.7432) applied to the trend line breakout point. The first target is 38.2% (0.7390) while the second target is 23.6% Fibs (0.7340). The suggested stop loss is 0.7460.

Support: 0.7360, 0.7340

Resistance: 0.7432, 0.7474

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Technical analysis of EUR/CAD for October 27, 2016

EUR/CAD found the bottom near 1.4300 and sharply started moving higher. The pair broke above both 50- and 200-Moving Averages and on the corrective wave rejected first 200 MA and then 50 MA.

Overall, it looks like the EUR/CAD trend is changing to anuptrend. Consider buying EUR/CAD while price is near the upward trend line 1.4600. Fibonacci applied to the corrective wave, where 200 MA was rejected, shows potential upside targets. The first target is 161.8% (1.4655), second 261.8% (1.4778). Suggested stop loss is 1.4550.

Support: 1.4580, 104455

Resistance: 1.4655, 1.4778, 1.4900

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Technical analysis of EUR/USD for Oct 27, 2016

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When the European market opens, some economic data will be released such as Private Loans y/y, M3 Money Supply y/y, and Spanish Unemployment Rate. The US will release a batch of reports such as Natural Gas Storage, Pending Home Sales m/m, Durable Goods Orders m/m, Unemployment Claims, and Core Durable Goods Orders m/m. So amid the reports, EUR/USD will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Breakout BUY Level: 1.0961.

Strong Resistance:1.0955.

Original Resistance: 1.0944.

Inner Sell Area: 1.0933.

Target Inner Area: 1.0908.

Inner Buy Area: 1.0883.

Original Support: 1.0872.

Strong Support: 1.0861.

Breakout SELL Level: 1.0855.

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 27, 2016

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In Asia, today Japan will not release any economic data. However, a series of economic data is due in the US such as Natural Gas Storage, Pending Home Sales m/m, Durable Goods Orders m/m, Unemployment Claims, and Core Durable Goods Orders m/m. So there is a probability the USD/JPY pair will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Resistance. 3: 105.05.

Resistance. 2: 104.84.

Resistance. 1: 104.64.

Support. 1: 104.39.

Support. 2: 104.19.

Support. 3: 103.98.

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 the US Dollar Index for October 27, 2016.

Technical outlook and chart setups:

The US Dollar Index has finally dropped lower as expected and discussed earlier and begun its counter trend printing interim lows at 98.33 level before pulling back. The index is trading at 98.71 level for now, looking to drop lower further towards 97.60 level at least as depicted here. Besides, the fibonacci extensions are pointing towards 97.70 levels, falling in line with expectations. 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, not seen in this view. The wave structure indicates that the index has now completed a 5-wave rally of a lesser degree from 95.05 level. It is now expected to drop lower in a corrective manner (3 waves) towards at least 97.60 level. It is hence recommended to remain flat for now. Aggressive traders might want remain short now, with stop at 99.30 targeting 97.60 level. Immediate resistance is at 99.10 level, while support is seen at 97.60 level respectively.

Trading recommendations:

Remain flat for now. Aggressive traders please remain short, stop is at 99.30, a target is 97.60

Good luck!

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EUR/USD Technical Analysis for October 27, 2016.

Technical outlook and chart setups:

The EUR/USD pair finally rallied higher unfolding its much awaited counter trend. The pair has made interim highs at 1.0946 level before pulling back lower. It is seen to be trading at 1.0897 level for now and should be poised to push through 1.0992 level at least as depicted here. Please note that probability remains for a continued push higher in a counter trend rally this week. The pair is expected to rally and take out 1.1040 level 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 level remains high at this moment according to wave counts discussed earlier. Looking at the wave structure, the pair looks to be in a corrective wave 4 rally which should ideally terminate around 1.1040 level. It is recommended to remain long now, with risk below 1.0850 levels. Immediate resistance is seen at 1.1040 level, while support is seen at 1.0850 level respectively.

Trading recommendations:

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

Good luck!

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Technical Analysis of Silver for October 27, 2016.

Technical outlook and chart setups:

Silver has dropped a bit lower than expected and seems to have formed interim lows at $17.57 level as depicted here. Please note that the metal might be bouncing off the fibonacci 0.786 support of the recent rally as seen on the chart. The metal is seen to be trading at $17.63 level for now, looking to resume higher again. The metal seems to have formed interim lows at $17.51 level earlier and it should hold well if the bullish structure is to remain intact. As an alternative though, if prices drop below the trend line support, the metal could be heading to test $17.30 level at least. The wave structure indicates that the metal is poised 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. 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 level. Immediate resistance is seen at $18.50/19.00 levels, while support is at $17.30 level 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 level.

Good luck!

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Gold Technical Analysis for October 27, 2016.

Technical outlook and chart setups:

Gold has now retraced towards $1,265.00 level as expected and discussed earlier and should resume the rally. The metal is trading at $1,265.00 level for now and should be looking to push higher towards $1,286.00/1303.00 levels from here. Also note that it is bouncing off the interim trend line support as depicted here. Please note that the metal should push through the past support turned resistance zone around $1,304.00 level as discussed earlier. 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 level. It is recommended to remain flat now and look to sell around $1,303.00/10.00 levels again, while aggressive traders should remain long with risk below $1,260.00. Immediate resistance is now seen at $1,304.00/10.00 levels, while support is at $1,260.00 level respectively.

Trading recommendations:

Aggressive traders remain long now with stop at $1,260.00 level, targeting $1,303.00. Conservative trade setup is to go short at higher levels.

Good luck!

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Daily analysis of USDX for October 27, 2016

The index had a bearish day on Wednesday and it's being supported by the 98.53 level. Around that zone, USDX may gain some momentum in order to rally towards the 99.19 level. If we see a breakout higher there, then a rally to the 99.70 level is highly expected, while a downside continuation can drive the USDX to test the 98.01 level, which is also below the 200 SMA.

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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 27, 2016

The pair managed to recover some of the lost ground during Tuesday and we're seeing that the 200 SMA could act as dynamic resistance across the board. However, if the bullish momentum remains alive, we can expect a rally towards the 1.2310 level, but that scenario is unlikely, as today crucial data from the UK will be released after the Brexit referendum. They aren't expected to be so positive at all. If GBP/USD consolidates below the 1.2230 level, then it will be to test the 1.2155 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, 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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