USD/CAD intraday technical levels and trading recommendations for October 31, 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 1.3360-1.3400 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 31, 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.

On the other hand, 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 31, 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.

Last 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 31, 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.

Last 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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Technical analysis of CAD/CHF for October 31, 2016

Based on our previous analysis, CAD/CHF started to move lower. The pair broke below the 38.2% but hasn't tested next Fibs support level at 23.6% (0.7340).

Consider holding short positions while moving stop loss to break even (around 0.7430). Besides, consider selling while the rate in the supply area (0.7410 - 0.7390).

Support: 0.7340

Resistance: 0.7390, 0.7430

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Technical analysis of USOIL for October 31, 2016

USOIL clearly trending downwards and this tendency is likely to continue. On the 26th of October WTI rejected the 50 Moving Average. Fibonacci applied to that corrective wave shows potential downside targets.

At this point, the downtrend is likely to continue but consolidation can take place before that. Consider selling USOIL on a corrective wave up while the price is near 49, targeting either 261.8% (47) or 361.8% Fibs (45.80). The suggested stop loss is just above 50.

Support: 48.10, 47.00, 45.80

Resistance: 48.8, 50.00

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Global macro overview for 31/10/2016

Global macro overview for 31/10/2016:

The US Personal Income and Personal Spending data are scheduled for release at 12:30pm GMT today and it might be interesting to see whether they will support the recent US GDP increase of 2.9%. Market participants are looking for upbeat data as the consensus forecast sees personal income strengthening to a 0.4% monthly in September against 0.2% previously. A similar increase in reading is expecting from consumer spending: jump to 0.5% after no change in August. In conclusion, the US economic expansion remains somehow resilient to the global headwinds, with the GDP (and possibly the personal income and spending) figures beating the market expectations for the last quarter. This might be the main reason (besides employment and inflation expectations) why the FED is looking to fulfill the promise of raising the interest rates twice this year as soon as in December 2016. According to CME FedWatch Tool, the implied probability of an interest rate hike on December 14th 2016 by 25bps is now 68%.

Let's now take a look at the US Dollar index technical picture at the daily time frame. The series of higher lows and higher highs from the swing low at the level of 91.92 cleary indicates a bullish market in the near-term. The price is trading above all of the moving averages and the bulls are in full control over this market as long as the level of 97.57 is not clearly violated. The next support is seen at the level of 97.57 and the next resistnace is seen at the level of 99.12 and 99.84.

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Technical analysis of USD/JPY for October 31, 2016

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USD/JPY is under pressure. The pair has broken below its key support at 105.05, which should confirm a bearish reversal on an intraday basis. The 20-period moving average is turning down, and acts as a resistance role. The relative strength index is negative below its neutrality area at 50.

On Friday, U.S. stocks swung from gains, which were driven by stronger-than-expected third-quarter GDP growth, to losses, as the FBI said, it is reviewing new evidence in connection with its investigation of Hillary Clinton's email server, casting uncertainty over the market. The U.S. Commerce Department reported that GDP expanded at an inflation- and seasonally-adjusted 2.9% annual rate in the third quarter, the fastest growth in two years and higher than +2.5% expected.

However, stocks pulled back in afternoon trading as FBI director James Comey pointed out, in a letter to Congress, that the FBI had discovered new emails in an unrelated case that "appear to be pertinent to the investigation" into whether Mrs. Clinton or her aides mishandled classified information while she was serving in the State Department. The U.S. presidential election is only less than two weeks away.

Hence, as long as 105.55 is not surpassed, likely decline to 104.35 & 104.00 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 104.35. A break below this target will move the pair further downwards to 104. The pivot point stands at 105.55. 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 105.95 and the second one at 106.30.

Resistance levels: 105.95, 106.30, 106.50

Support levels: 104.35, 104.00, 103.65

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Technical analysis of USD/CHF for October 31, 2016

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USD/CHF is expected to trade with a bearish bias as the key resistance is holding at 0.9915. The pair broke below its 20-period and 50-period moving averages, which play resistance roles now, and accelerated on the downside. Meanwhile, the 20-period moving average crossed below the 50-period one, which is negative. The relative strength index is bearish below its neutrality level at 50 and lacks upward momentum. Additionally, 0.9915 represents a significant key resistance level, which should limit the upside potential. As long as this key level is not broken, look for a further drop toward 0.9840 and 0.9815 in extension.

Resistance levels: 0.9950, 0.9980, 1.0020

Support levels: 0.9840, 0.9815, 0.9775

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Technical analysis of GBP/USD for October 31, 2016

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Overview:

  • The GBP/USD pair:
  • The market opened below the weekly resistance of 1.2314 (horizontal red line). 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 two weeks. 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.
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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.The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of NZD/USD for October 31, 2016

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NZD/USD is expected to trade in higher range. The pair is trading above its rising 20-period and 50-period moving averages, which play support roles and maintain the upside bias. The relative strength index is supported by a rising trend line and is above its neutrality level at 50. Additionally, 0.7120 is playing a key support role, which should limit the downside potential. As long as this key level holds on the downside, look for a further upside toward 0.7185 and even 0.7205 in extension.

The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. Therefore, long positions are recommended with the first target at 0.7185 and the second one at 0.7205. In the alternative scenario, short positions are recommended with the first target at 0.7105 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 0.7075. The pivot point lies at 0.7120.

Resistance levels: 0.7185, 0.7205, 0.7255

Support levels: 0.7105, 0.7075, 0.7045

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Technical analysis of GBP/JPY for October 31, 2016

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GBP/JPY is expected to trade with a bearish bias. The pair broke above its 20-period and 50-period moving averages, while the relative strength index is above its neutrality level at 50. Nevertheless, 128.25 represents a significant key resistance level. We are cautiously negative now.

The British pound weakened to 1.2112 against the greenback after Northern Ireland's High Court ruled that the consent of the regional parliament was not required to trigger Britain's exit from the European Union.

As long as the key level at 128.25 is not broken up, we keep our negative view unchanged with down target at 127.40. A break below this level would call for a further drop toward 127.00.

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: 128.50, 128.85, 129.45

Support levels: 127.40, 127.00, 126.60

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Elliott wave analysis of EUR/NZD for October 31, 2016

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EUR/NZD - Daily

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EUR/NZD - 4 Hourly

Wave summary:

The rally of the 1.5066 is not yet impressive in any way, but as long as support at 1.5122 continues to act as a floor, we will be looking for more upside towards 1.5764 and above towards 1.6396 and above.

Short term, a break above 1.5511 will be the first indication that upside momentum is building, while a break above 1.5764 is needed to confirm that the long term correction from 1.9023 completed with the test of 1.4989.

Trading recommendation:

We are long EUR from 1.5285 with stop placed at 1.5170. If you are not long EUR yet, then buy near 1.5250 or upon a break above 1.5375 and use the same stop at 1.5170.

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Elliott wave analysis of EUR/JPY for October 31, 2016

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EUR/JPY - Daily

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EUR/JPY - 4 Hourly

Wave summary:

Our long term count indicates that a long term corrective low was seen in late June at 109.48 and a new impulsive rally is building. However, the rally of the 109.48 is not yet conclusive and a firm break above resistance at 116.28 and more importantly above resistance at 118.47 is still needed to accelerate prices higher.

Short term, strong support is seen at 113.93, which is expected to act as a floor for the rally above 116.28 and above.

Trading recommendation:

We are long EUR from 112.95 with stop placed at 113.60. If you are not long EUR yet, then buy near 114.50 or upon a break above 115.33 and use the same stop at 113.60.

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

Technical analysis of EUR/USD for October 31, 2016

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Overview:

  • On the 4H chart, the EUR/USD pair continues moving in a bearish trend from the resistance levels of 1.1087 and 1.1031. Currently, the price is in a bearish channel. This is confirmed by the RSI indicator signaling that we are still in a bearish trending market. As the price is still below the moving average (100), immediate resistance is seen at 1.1000, which coincides with a golden ratio (38.2% of Fibonacci). Consequently, the first resistance is set at the level of 1.1031. So, the market is likely to show signs of a bearish trend around the spot of 1.1031/1.1000. In other words, sell orders are recommended below the spot of 1.1031/1.1000 with the first target at the level of 1.0906. Furthermore, if the trend is able to breakout through the first support level of 1.0906. We should see the pair falling towards the double bottom (1.0850) to test it. On the other hand, it would also be wise to consider where to place a stop loss; this should be set above the second resistance of 1.1087.
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Gold analysis for October 31, 2016

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Since our previous analysis, gold has been trading sideways at the price of $1,272.80. According to the 5M time frame and using the market profile analysis, I found intraday distribution in the background, which is a sign that sellers are in control today. Today's point of control is set at the price of $1,276.70. Watch for selling opportunities on the pullbacks. The first downward target is set at the price of $1,267.25. A good level to establish potential selling position is around the point of control at $1,276.70.

Fibonacci pivot points:

Resistance levels:

R1: 1,280.30

R2: 1,281.10

R3: 1,282.35

Support levels:

S1: 1,277.75

S2: 1,276.96

S3: 1,275.65

Trading recommendations for today: Weakness on Gold is expected today. Watch for selling opportunities on the pullbacks.

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

EUR/NZD analysis for October 31, 2016

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Recently, EUR/NZD has been moving sideways at the price of 1.5310. On 15M time frame and using the market profile, I found intraday weakness and potential distibution, which is sign that EUR/NZD may go lower. Today's point of control is set at the price of 1.5333 and the price rejected successfuly. Watch for selling opportunities on the pullbacks. First downward station is set at the price of 1.5260.

Fibonacci Pivot Points:

Resistance levels

R1: 1.5350

R2: 1.5380

R3: 1.5420

Support levels:

S1: 1.5275

S2: 1.5250

S3: 1.5210

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

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

Global macro overview for 31/10/2016

Global macro overview for 31/10/2016:

The official GDP data revealed on Friday by the US Department of Commerce had surprised market participants. According to the data, the US economy has expanded at its fastest pace since 2014 in the Q3 of 2016. It grew 2.9% in the third quarter, which was way better than previous quarter 1.4% growth. Moreover, the numbers have been better than a global market consensus of 2.5%. When we look into the details of the report, we can see that the exports jumped 10% in the third quarter, contributing 0.83% to GDP growth, which was led by soybeans. Inventory accumulation by businesses increased $12.6 billion in the third quarter, contributing 0.61% to GDP growth. The only down figure was business spending on equipment, that declined 2.7%, falling for the fourth consecutive month. In conclusion, the overall data has beat the market expectations, but this data are unlikely to change the FED's view on the possibility of the rate hike, mostly because of the strong US job market and pressures to rise the inflation.

Let's now take a look at the EUR/USD technical picture at the 4H time frame at the beginning of the new week. The bulls have pushed the prices higher towards the supply zone market as the gray rectangle, but wasn't strong enough to break out above the main technical resistance at the level of 1.1040. Currently, the market trades around the intraday support at the level of 1.0946 and the bears are in full control of this market as the larger time frame trend remains bearish.

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Technical analysis of USD/CAD for October 31, 2016

General overview for 31/10/2016:

The market is trading just above the weekly pivot at the level of 1.3379, but the growing bearish divergence between the price and the momentum oscillator strongly suggests the top is in place already, and the price should drop below the golden trend line any time soon. The first target is the demand zone marked as the gray rectangle between the levels of 1.3290 - 1.3312, but the decline might be stronger. In that case, the next support is seen at the level of 1.3225.

Support/Resistance:

1.3433 - Intraday Resistance

1.3379 - Weekly Pivot

1.3352 - Intraday Support

1.3325 - WS1

1.3290 - 13312 - Demand Zone

1.3281 - Wave -a- Low

1.3225 - WS1

Trading recommendations:

If the top for the wave -b- is now in place, the day traders should consider opening sell orders with SL just above the wave -b- top. TP level should be left open for now.

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Technical analysis of EUR/JPY for October 31, 2016

General overview for 31/10/2016:

The anticipated target zone between the levels of 115.37 - 115.48 had been almost hit and it looks like the top of the wave c (purple) is now in place. To confirm this scenario the market would have to go below the wave -iv- low at the level of 114.57 and even clearly break out below the level of 114.53 (weekly pivot). The growing bearish divergence between the price and the momentum oscillator supports the bearish view.

Support/Resistance:

115.37 - 115.48 - Fibonacci Confluence Zone

114.57 - Intraday Support

114.53 - Weekly Pivot

113.74 - WS1

Trading recommendations:

If the top for the wave (b) is now in place, the day traders should consider opening sell orders with SL just above the wave (b) top. TP level should be left open for now.

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Technical analysis of USD/JPY for October 31, 2016

The trend in USD/JPY remains bullish but very choppy. Price is making higher highs and higher lows but I expect a trend reversal here to the downside. There are important divergence signals implying that the uptrend is fragile and could reverse at any time.

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Blue lines - bullish channel

Blue line - divergence signal

USD/JPY is trading above the Ichimoku cloud on the 4-hour chart and inside the blue bullish channel. The RSI is providing us with a bearish divergence signal that is a big warning for bulls. A break below the Ichimoku cloud and the lower channel boundary will be a sell signal and trend change confirmation.

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On a weekly basis the USDJPY is trading very close to important weekly resistance of the kijun-sen (yellow line indicator). This is important resistance area. Support is at 102.80. Short-term support is at 103.80. Resistance is at 105.50.The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of EUR/USD for October 31, 2016

EUR/USD has made an important low last week and has given important reversal signals. Price is making now higher highs and higher lows. Short-term trend has changed to bullish and I expect at least a bounce towards 1.1150 as long as price is trading above 1.0870.

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The oscillators are showing that a bullish trend is at its beginning now and a bounce has started. I expect price to move towards the Ichimoku cloud and the broken dark blue trend line. My short-term target is at 1.1150. Intermediate resistance is at 1.1080.

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EUR/USD has broken above the Ichimoku cloud in the 4 hour chart giving a short-term reversal signal to the upside. Price is making higher highs and higher lows while the form of the rise looks impulsive, implying more upside for this pair is to be expected. Important low is found at 1.0870, so, a break below that level will most probably cancel any bullish view.The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of USDX for October 31, 2016

The Dollar index has reversed from 99 price level as expected. I have been giving warnings for a bearish reversal for the past few sessions while the index was trading between 98.50-9. On a weekly basis, the weekly chart is not good. There are signs of a bigger reversal from current levels.

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Green lines - bullish channel

Red line - long-term support

The Dollar index broke down and out of the bullish channel and as expected has found short-term support at the Ichimoku cloud at 98.30. A break below the Ichimoku cloud and the 98.25 lows should be followed by a deeper pullback towards 96.50.

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Red lines - trading range

Green line - important support trend line

Last week's candle is a bearish reversal sign. Combined with the divergence signs in the stochastic and the fact we saw a rejection near the upper trading range boundary implies a pull back should start. Important support is at 96.50 which was the break out level. So a backtest towards that area is expected. If prices break below 96.50, we should expect a deeper correction even below 92. So 96.50 is for me the key between bulls and bears.

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Technical analysis of gold for October 31, 2016

Gold price remains in an uptrend as price made a higher high and higher low. Price has reached the lower target of $1,280 on Friday. I'm bullish since $1,250 is calling for a strong bounce towards $1,280-$1,300. A major low could still be in but we can't confirm that yet.

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Blue line - support

Price is trading above the Ichimoku cloud on the 4-hour chart. Support is at $1,260. Resistance remains at $1,310-$1,320. Shorter-term resistance is at $1,290.

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Gold price continues to trade above the daily tenkan-sen (red line indicator) support and is heading towards my short-term target at the daily kijun-sen resistance (yellow line indicator). I remain longer-term bullish. A push towards $1,200-$1,170 will be a gift for bulls, however I'm not so sure it can be achieved.The material has been provided by InstaForex Company - www.instaforex.com

Daily analysis of major pairs for October 31, 2016

EUR/USD: This market consolidated last week, and trended upwards on Friday. But the upwards attempt has not been strong enough to invalidate the overall bearish bias. This may then be seen as an opportunity to seek short trades, because the outlook on EUR/USD and most EUR pairs is bearish this week. The only thing that can reverse this bearish situation in the market is a large pullback in the USD/CHF pair.

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USD/CHF: After a series of hesitation, the USD/CHF pair was able to go above the decisive resistance level at 0.9900. However, bears came in to push price below that resistance level. The bias on the market remains bullish and a further upwards movement is expected, though it is unlikely that price would be able to go above the resistance level at 1.0000, which is an important one. CHF itself may exert some form of bullishness before the end of November 2016, though USD is strong in its own right. Serious buying pressure would be needed for the resistance level at 1.0000 to be breached to the upside; otherwise, a large pullback may occur.

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GBP/USD: The Cable has been consolidating for about two weeks. Such developments have resulted in a neutral bias in the short term. The long-term outlook on the market remains bearish and when momentum rises, it would most likely favor bears. Strong volatility would be witnessed on the GBP pairs this week, and some of them would be weaker in most cases.

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USD/JPY: This currency trading instrument moved upwards by 160 pips last week, to test the supply level at 105.50. The outlook on JPY pairs is bullish for this week, and the current shallow pullback is seen as another opportunity to buy long when things are on sale and in the context of an uptrend. The supply levels at 105.50, 106.00, and 106.50 may be tested this week.

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EUR/JPY: The EUR/JPY pair went upwards by 230 pips last week, closing above the demand zone at 115.00 on Friday. There is now a Bullish Confirmation Pattern on the 4-hour chart, and the last candlestick on Friday reveals that bulls are still willing to push price further upwards this week. Therefore, the supply levels at 115.50, 116.00, and 116.50 would be targeted this week. In spite of the weakness in EUR, the market would continue going upwards.

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AUD/JPY profit target reached, turn bullish.

Price dropped perfectly to our profit target previously. We now turn bullish above major support at 79.16 (Fibonacci retracement, Fibonacci projection, horizontal support) for a push up to 80.00.

RSI (21) is above major support at 39%.

Stochastic (21,5,3) is above major support at 40%.

Buy above 79.16. Stop loss at 78.72. Take profit at 80.00.

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AUD/USD bounced off major support as expected, remain bullish

Price dropped perfectly to our major support at 0.7560 (Fibonacci projection, Fibonacci retracement) as expected, where we expect a bounce up from towards 0.7652.

RSI (34) is above long term ascending support.

Buy above 0.7560. Stop loss at 0.7506. Take profit at 0.7650.

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Technical analysis of EUR/USD for Oct 31, 2016

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When the European market opens, some Economic Data will be released such as Italian Prelim CPI m/m, Prelim Flash GDP q/q, Core CPI Flash Estimate y/y, CPI Flash Estimate y/y, German Retail Sales m/m. The US will release the economic data, too, such as Loan Officer Survey, Chicago PMI, Personal Income m/m, Personal Spending m/m, Core PCE Price Index m/m, so, amid the reports, EUR/USD will move in a low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Breakout BUY Level: 1.1034.

Strong Resistance:1.1028.

Original Resistance: 1.1017.

Inner Sell Area: 1.1006.

Target Inner Area: 1.0980.

Inner Buy Area: 1.0954.

Original Support: 1.0943.

Strong Support: 1.0932.

Breakout SELL Level: 1.0926.

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 31, 2016

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In Asia, Japan will release the Housing Starts y/y, Retail Sales y/y, Prelim Industrial Production m/m and the US will release some Economic Data such as Loan Officer Survey, Chicago PMI, Personal Income m/m, Personal Spending m/m, Core PCE Price Index m/m. So, there is a probability the USD/JPY will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Resistance. 3: 105.20.

Resistance. 2: 105.00.

Resistance. 1: 104.80.

Support. 1: 104.55.

Support. 2: 104.35.

Support. 3: 104.14.

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 31, 2016

The index had a huge decline at the end of Friday, as the FBI's investigation into new Clinton emails helped to that move. Currently, USDX is consolidating below the 200 SMA and it can test the support level of 98.01. If it manages to break that bottom, then we can expect a decline towards the 97.62 level. MACD indicator is in negative territory, supporting that scenario.

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H1 chart's resistance levels: 98.53 / 99.19

H1 chart's support levels: 98.01 / 97.62

Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the USD Index breaks with a bullish candlestick; the resistance level is at 98.53, take profit is at 99.19 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 31, 2016

GBP/USD started the week with a bullish tone, as the US dollar continues weakening across the board. Currently, the pair is approaching to the 200 SMA and one consolidation above that zone could push higher to the Cable towards the 1.2310 level, which is a key interest area for sellers. MACD indicator continues to support the bullish bias.

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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.

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