Elliott wave analysis of EUR/NZD for November 2, 2016

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Wave summary:

The rally from 1.5066 stalled already at 1.5454 and the decline from here has already taken out the 61.8% corrective target at 1.5214, which is of concern. That said, it will take a break below support at 1.5066 to invalidate our preferred bullish outlook. On the other side, it will also take a break above minor resistance at 1.5355 to indicate the next rally higher towards 1.5764 and above.

Trading recommendation:

Our stop at 1.5170 was hit. We will re-buy EUR at 1.5145 or upon a break above 1.5355 with a stop placed at 1.5060.

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Elliott wave analysis of EUR/JPY for November 2, 2016

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Wave summary:

The failure to take out resistance at 116.28 is somewhat disappointing, but we will expect support near 113.75 to be able to act as a floor for the next impulsive rally above 116.28 confirming more upside towards 118.47 and 122.00.

Only an unexpected break below important support at 112.05 will invalidate the bullish outlook.

Trading recommendation:

Our stop at 114.67 was hit for a nice profit. We will look for a new buying opportunity near 113.75.

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USD/CAD intraday technical levels and trading recommendations for November 2, 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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Intraday technical levels and trading recommendations for GBP/USD for November 2, 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.

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 November 2, 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 June, August and October 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 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 1.1000 (Key-Level 1).

Bullish rejection was expected around the price level of 1.1000 (Key Level-1). However, extensive bearish pressure and significant bearish closure below 1.0900 was expressed.

Daily persistence below 1.0990 allowed a quick bearish decline towards 1.0825 (Key Level-2) where a short-term BUY entry was suggested.

As anticipated, Bullish recovery was expressed around 1.0850.

Daily candlestick closure above 1.1000 (Key Level-1) enhances further bullish advance towards 1.1250 (Supply Level-1) where price action should be watched for a short-term SELL entry.

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Global macro overview for 02/11/2016

Global macro overview for 02/11/2016:

The PMI Manufacturing data was released yesterday and it was slightly below market expectations. Overall manufacturing activity in the United Kingdom remained strong and according to Markit/CIPS report the Purchasing Managers' Index declined to 54.3 points in October, compared to the preceding month's upwardly revised 55.5 points. Meanwhile, market participants anticipated a slight drop to 54.6 during the reported period. Nevertheless, the British economy has performed better than expected so far despite the country's decision to leave the European Union. The UK economy is showing no signs of a widely expected immediate slowdown, which is why the Bank of England might not cut interest rates at its next meeting on Thursday, 3rd of November.

Let's now take a look at the GBP/USD technical picture at 4H time frame. The bulls have managed to break out above the important resistance at the level of 1.2333, but the market stays still inside the larger time frame trading range between 1.2027 and 1.2478. Only a sustained breakout above the level of 1.2478 and violation of the golden trend line resistance would change the current bearish outlook. Meanwhile, the GBP/USD pair is trading sideways.

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Global macro overview for 02/11/2016

Global macro overview for 02/11/2016:

The main fundamental event for today is FOMC interest rate decision and statement. Global investors do not expect any change in the interest rate today, so the 0.50% level should be left as it is. According to the CME FedWatch Tool, the likelihood of any interest rate hike today is only 7.2%, so again market participants do not foresee any specific moves from FED today, but the regulator remains on track to raise rates at next month's meeting on December 14. Nevertheless, it will be interesting to read through today's statement for clues about next steps.The most important hints might come from any improvements in the FED's assessment of the economy. Any positive comments will be considered as a subtle signal for a hike next month.

Let's now take a look at the US Dollar technical picture at the daily time frame before the FOMC data release. The bears have managed to break out below the important support at the level of 97.57, but the daily candle is not closed yet. Any form of a hammer or any form of a candle with a long tail will be considered as a false downside breakout and the bulls might be able to re-gain the control over this market again. In case of a bullish failure, the next support is seen at the level of 97.19.

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Technical analysis of USD/CAD for November 2, 2016

General overview for 02/11/2016:

The golden trend line has been tested from below and bulls have failed to rally above it. This means the market is ready to drop and 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, 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 November 2, 2016

General overview for 02/11/2016:

The corrective cycle is in progress just as anticipated yesterday. Wave a (purple) of this correction is done, together with wave b (purple). The last wave to the downside is needed to complete the cycle and the projected target level for this wave is 50%Fibo at the level of 114.13 or 61%Fibo at the level of 113.77. Please notice the 61%Fibo matches the weekly pivot support as well.

Support/Resistance:

116.22 - WR1

114.77 - Intraday Resistance

114.53 - Weekly Pivot

114.13 - 50%fibo

113.77 - 61%Fibo

113.74 - WS1

Trading recommendations:

The sell orders from yesterday should be kept open and TP level should be set at 50%Fibo or at 61%Fibo.

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Gold analysis for November 02, 2016

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Since our previous analysis, gold has been trading upwards. As I expected, the price tested the level of $1,297.10 in a high volume. According to the 15M time frame and using the market profile analysis, I found intraday initiative buyers, which is a sign that buyers are in control. The price is trading above the yesterday's value area and the point of control. My advice is to watch for buying opportunities on the dips. I placed Fibonacci expansion to find potential upward targets. I found Fibonacci expansion 161.8% at the price of $1,299.30.

Fibonacci pivot points:

Resistance levels:

R1: 1,289.85

R2: 1,292.60

R3: 1,297.00

Support levels:

S1: 1,280.00

S2: 1,278.70

S3: 1,273.50

Trading recommendations for today: Strength on the Gold is expected today. Watch for buying opportunities on the dips.

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Technical analysis of NZD/USD for November 02, 2016

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Overview:

  • The NZD/USD pair continues moving in a bullish trend from the support levels of 0.7141 and 0.7207. 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. As the price is still above the moving average (100), immediate support is seen at 0.7207, which coincides with a golden ratio (38.2% of Fibonacci). Consequently, the first support is set at the level of 0.7207. So, the market is likely to show signs of a bullish trend around the spot of 0.720. In other words, buy orders are recommended above the golden ratio (0.7207) with the first target at the level of 0.7260. Furthermore, if the trend is able to breakout through the first resistance level of 0.7260. We should see the pair climbing towards the double top (0.7313) to test it. However, it would also be wise to consider where to place a stop loss; this should be set below the second support of 0.7207. Amid the previous events, the pair is still in an uptrend, because the NZD/USD pair is trading in a bullish trend from the new support line of 0.7207 towards the major resistance level at 0.7313.
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EUR/NZD analysis for November 02, 2016

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Recently, EUR/NZD has been moving downwards. The price tested the level of 1.5250 in a high volume. On 15M time frame and using the market profile, I found intraday weakness and potential distibution, which is a sign that EUR/NZD may go lower. I found active sellers and the price is trading below yesterday's low at 1.5278. My advice is to watch for selling opportunties. I placed Fibonacci expansion to find potential downward targets. I got Fibonacci expansion 100% at the price of 1.5210 and Fibonacci expansion 161.8% at the price of 1.5125.

Fibonacci Pivot Points:

Resistance levels

R1: 1.5435

R2: 1.5475

R3: 1.5545

Support levels:

S1: 1.5300

S2: 1.5260

S3: 1.5195

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

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Technical analysis of USD/CHF for November 02, 2016

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Overview:

  • As expected, The USD/CHF pair has dropped from the level of 0.9816 towards 0.9723. It should be noted that volatility is very high for that the USD/CHF pair is still moving between 0.9774 and 0.9682 in coming hours. Furthermore, the price has been set below the strong resistance at the level of 0.9774 and 0.9819, which coincides with the 38.2% and 50% Fibonacci retracement level respectively. Additionally, the price is in a bearish channel now. Amid the previous events, the pair is still in a downtrend. From this point, the USD/CHF pair is continuing in a bearish trend from the new resistance of 0.9774. Thereupon, the price spot of 0.9774 remains a significant resistance zone. Therefore, a possibility that the USD/CHF pair will have downside momentum is rather convincing and the structure of a fall does not look corrective. In order to indicate a bearish opportunity below 0.9774, sell below 0.9774 with the first targets at 0.9682 and 0.9639 in order to test the double bottom. On the other hand, the stop loss should be located above the level of 0.9956.
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USD/JPY drop in progress, remain bearish

Price dropped perfectly as expected from our selling area towards our profit target. We tighten our stop loss to lock in profits. We are ready to sell again as sson as price reaches our 104.64 resistance (Fibonacci retracement, horizontal pullback resistance) where we would expect a further drop towards 103.35 target.RSI (21) has made a bearish exit, signalling a further drop is expected.

Sell below 104.64. Stop loss at 105.22. Take profit at 103.35.

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AUD/USD profit target reached, remain bullish

Price bounced off our buying level perfectly yesterday and has reached our profit target once again. We are ready to buy above 0.7620 support (Fibonacci retracement, horizontal pullback support) until a push up to 0.7700 again.RSI (34) remains above our long-term ascending support line.

Buy above 0.7620. Stop loss at 0.7585. Take profit at 0.7700.

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NZD/USD at major resistance, time to sell

We turn bearish below major resistance at 0.7246 (Fibonacci retracement, Fibonacci projection) and we expect a drop from here towards 0.7175.

RSI (34) is seeing major resistance at 67% where our previous major reversal occurred.

Sell below 0.7246. Stop loss at 0.7266. Take profit at 0.7171

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Technical analysis of USD/JPY for November 02, 2016

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USD/JPY is expected to prevail its downside movement. The pair remains on the downside, capped by its falling 20-period and 50-period moving averages. The nearest key resistance at 104.20 maintains strong selling pressure on the prices. Furthermore, the process of lower highs and lows remains intact.

On Tuesday, U.S. stocks saw a sell-off amid growing uncertainty over the U.S. presidential election. The Dow Jones Industrial Average dropped 105 points (-0.6%) to 18,037, the S&P 500 fell 14 points (-0.7%) to 2,111 and the Nasdaq Composite was down 35 points (-0.7%) to 5,153. Buying of U.S. government bonds gained traction as political uncertainty lingered. The benchmark U.S. 10-year Treasury note yield sank from a session-high of 1.877% to 1.822% at close, down from 1.834% Monday. The U.S. dollar found itself on the defensive side as traders adjusted their positions amid uncertainty over the U.S. presidential election. Polls showed a tightening race between Donald Trump and Hillary Clinton following Friday's announcement that the FBI found new evidence in its investigation of Mrs. Clinton's emails.

Hence, as long as 104.20 is not surpassed, likely decline to 103.20 and 102.80 in extension.

Trading Recommendation: The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 103.20. A break below this target will move the pair further downwards to 102.80. The pivot point stands at 104.20. In case the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, long positions are recommended with the first target at 104.65 and the second one at 105.15.

Resistance levels: 104.65, 105.15, 105.55

Support levels: 103.20, 102.80, 102.45

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Technical analysis of USD/CHF for November 02, 2016

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USD/CHF is expected to prevail its downside prevails. The pair broke below its 20-period and 50-period moving averages and accelerated on the downside. The downward momentum is further reinforced by its declining 20-period and 50-period moving averages, which play resistance roles and maintain the downside bias. The relative strength index is bearish below its 30% level.

The U.S. dollar found itself on the defensive side as traders adjusted their positions amid uncertainty over the U.S. presidential election. Polls showed a tightening race between Donald Trump and Hillary Clinton following Friday's announcement that the FBI found new evidence in its investigation of Mrs. Clinton's emails.

As long as 0.9815 holds on the upside, look for a further drop toward 0.9670 and 0.9630 in extension.

Resistance levels: 0.9840, 0.9870, 0.9910

Support levels: 0.9670, 0.9630, 0.9600

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Technical analysis of NZD/USD for November 02, 2016

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NZD/USD is expected to prevail its upside movement. The pair broke above its 20-period and 50-period moving averages, which play support roles and maintain the upside bias, and accelerated on the upside. The relative strength index stands firmly above its neutrality level at 50 and lacks downward momentum. Additionally, 0.7155 is playing a key support role, which should limit the downside potential. As long as 0.7155 holds on the downside, look for a further upside toward 0.7250 and even 0.7270 in extension.

The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. Therefore, long positions are recommended with the first target at 0.7250 and the second one at 0.7270. In the alternative scenario, short positions are recommended with the first target at 0.7135 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 0.7120. The pivot point lies at 0.7155.

Resistance levels: 0.7250, 0.7270, 0.7295

Support levels: 0.7135, 0.7155, 0.7105

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Technical analysis of GBP/JPY for November 02, 2016

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GBP/JPY is Under pressure. The pair is turning down against its key resistance at 127.5 and remains under pressure. Meanwhile, the 20-period moving average has crossed below the 50-period one, and the relative strength index lacks upward momentum. As long as 127.55 is not broken above, a break below 126.60 is likely.

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 126.60. A break below this target will move the pair further downwards to 126.20. The pivot point stands at 127.55. 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 128.05 and the second one at 128.50.

Resistance levels: 128.05, 128.50, 129.15

Support levels: 126.60, 126.20, 125.70

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Technical analysis of USDX for November 2, 2016

The Dollar index continues its decline as we expected and promptly called for a reversal at 98.50-99. Price has also broken critical short-term support confirming the trend reversal at 99 and is now pulling back to test 96.50 which is a breakout level.

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Green line - bullish channel (broken)

Red line - trend line support

The first bearish signal came with price breaking out of the bullish channel. The second warning came with the bearish divergence in RSI. The third bearish signal came when price broke down of the Ichimoku cloud on the 4-hour chart. Trend is bearish and the downward move has just started.

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Price has broken below the low of the previous two weeks. Last week's candle was a bearish reversal signal. Combined with the fact that price was very close to the upper trading range boundary with bearish divergence in the Stochastic, last week I was warning bulls of a reversal. I remain bearish expecting at least 96.50 to be tested.The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of gold for November 2, 2016

Gold price is moving towards our next targets of $1,300-$1,320. Trend remains bullish since the call I made for an important low at $1,250. Important long-term trend resistance is found at $1,350-60 and I do not expect to see it broken without a pullback first.

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Blue line - trend line support

Gold price has broken through the daily kijun-sen (yellow line indicator) resistance. The next target is the Ichimoku cloud resistance at $1,325. Gold is in a bull trend as we mentioned from $1,250 while most expected the Gold price to crash, I was bullish focusing on a strong bounce. If this bounce is the start of a new uptrend it is still too early to tell.

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Gold price has bounced off the 38% Fibonacci retracement of the rise from $1,045 to $1,375. Price has reached important resistance area where the weekly tenkan- and kijun-sen is found. The long-term green trend line resistance is the most important obstacle for bulls to see $1,400 and above.The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of EUR/USD for Nov 02, 2016

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When the European market opens, some Economic Data will be released such as German 10-y Bond Auction, Final Manufacturing PMI, German Final Manufacturing PMI, German Unemployment Change, French Final Manufacturing PMI, Spanish Manufacturing PMI. The US will release the economic data, too, such as Federal Funds Rate, Crude Oil Inventories, ADP Non-Farm Employment Change, so, amid the reports, EUR/USD will move in a medium to high volatility during this day.

TODAY'S TECHNICAL LEVEL:

Breakout BUY Level: 1.1110.

Strong Resistance:1.1104.

Original Resistance: 1.1093.

Inner Sell Area: 1.1082.

Target Inner Area: 1.1056.

Inner Buy Area: 1.1030.

Original Support: 1.1019.

Strong Support: 1.1008.

Breakout SELL Level: 1.1002.

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 Nov 02, 2016

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In Asia, Japan will release the Consumer Confidence, Monetary Base y/y and the US will release some Economic Data such as Federal Funds Rate, Crude Oil Inventories, ADP Non-Farm Employment Change. So, there is a probability the USD/JPY will move with medium to high volatility during this day.

TODAY'S TECHNICAL LEVEL:

Resistance. 3: 104.50.

Resistance. 2: 104.30.

Resistance. 1: 104.09.

Support. 1: 103.84.

Support. 2: 103.64.

Support. 3: 103.43.

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

EUR/USD Technical Analysis for November 02, 2016.

Technical outlook and chart setups:

The EUR/USD pair seems to have achieved its initial soft target at 1.1030/40 levels and also exceeded the same. The pair has made interim highs at 1.1070 levels right now and is poised to prepare to drop from here. EURO bulls have hit previous wave 4 termination at 1.1030/40 levels and also tested resistance at 1.1070 levels now. Please note that the pair is pretty close to forming a top and reverse lower. The probability for wave 4 terminations at these levels remains high at this moment according to wave counts discussed earlier. Looking at the wave structure, the pair should be facing stiff resistance around 1.1100 levels, if prices reach there, and bears are expected to regain control from there on. It is recommended to book profits on all long positions taken earlier and prepare to go short. Immediate resistance is seen at 1.1075/1.1100 levels, while support is seen at 1.0930 levels respectively.

Trading recommendations:

Please book profits on all long positions taken earlier and prepare to go short around 1.1070/1.1100 levels, stop at 1.1150, targeting lower.

Good luck!

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Technical Analysis of Silver for November 02, 2016.

Technical outlook and chart setups:

Silver has almost hit the expected target at $18.50 levels as discussed earlier. The metal trades at $18.45 levels for now, looking to retrace/resume lower after hitting the past support turned resistance zone as well, as depicted here. The metal seems to have formed a top yesterday at $18.50 levels or a top could be very near before the metal turns lower. The wave structure indicates that the metal is poised to complete its counter trend rally this week and terminate around $18.50/70 levels. A turn lower from here would push prices lower towards $17.00 and $16.50 levels before resuming rally. It is recommended to book profits on all long positions taken earlier and prepare to go short. Immediate resistance is seen at $18.50/19.00 levels, while support is at $17.75 levels respectively.

Trading recommendations:

Please book profits on all long positions taken earlier and prepare to go short around $18.50/70 levels, with stop above $19.50.

Good luck!

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Gold Technical Analysis for November 02, 2016.

Technical outlook and chart setups:

Gold has almost hit our first expected target at $1,295.00 levels yesterday. The metal seems to be coming close to termination of the counter trend rally now. A top maybe in place at $1,292.00 already or it is very near to forming a top at $1,304.00 levels. The metal is trading at $1,289.00 levels for now and should be looking to push higher towards $1,304.00 levels as a final thrust from here. Please note that the metal is expected to push through the past support turned resistance zone around $1,304.00 levels as discussed earlier. 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 levels, as an alternate though it might have already terminated at $1,292.00 levels. It is recommended to book profits on all long positions taken earlier and prepare to go short. Immediate resistance is now seen at $1,304.00/10.00 levels, while support is at $1,272.00 levels respectively.

Trading recommendations:

Please book profits on all long positions taken earlier. Prepare to go short around $1,292.00/1,304.00 levels.

Good luck!

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Daily analysis of major pairs for November 2, 2016

EUR/USD: The pullback in the USD/CHF has helped this market to rally. The rally took place yesterday and this has led to a bullish signal in the market. Further upwards movement is anticipated, which would push price towards the resistance lines at 1.1100 and 1.1150. A very strong buying pressure may even push price above those resistance lines.

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USD/CHF: In the last forecast, it was mentioned that the outlook on the USD/CHF turned bearish since Monday. On Tuesday, price underwent a large pullback, because bulls have been unable to continue pushing price towards the resistance level at 1.0000. The 170-pip pullback that was seen yesterday has resulted in a Bearish Confirmation Pattern in the chart.

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GBP/USD: The Cable has been consolidating for about two weeks – an even that has 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 the bears. Strong volatility would be witnessed on GBP pairs this week, and some of them would be weaker in most cases.

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USD/JPY: The USD/JPY went bearish yesterday, but that bearish movement has not been strong enough to result in a clean bearish signal. For a bearish signal to form, the EMA 11 would need to cross the EMA 56 to the downside. The RSI period 14 is already signaling a possibility of a downwards movement, since it is now below the level 50.

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EUR/JPY: There has been a shallow pullback on this currency trading instrument. In spite of this, there remains a Bullish Confirmation Pattern in the 4-hour chart, which means price is still expected to continue moving upwards. Bulls would target the supply zones at 115.50 and 116.00 (at least).

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Daily analysis of USDX for November 02, 2016

The index had a strong sell-off during yesterday ahead of FOMC interest rate decision, while it's trying to find a support at the 97.62 level. If USDX manages to break lower that zone, then we can expect further weakness towards the 97.12 level, where buyers could appear again. However, the risk remains to the downside and any rebounds may be capped by the 98.00 psychological level.

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H1 chart's resistance levels: 98.01 / 98.53

H1 chart's support levels: 97.62 / 97.12

Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the USD Index breaks with a bullish candlestick; the resistance level is at 98.01, take profit is at 98.53 and stop loss is at 97.50.

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

Daily analysis of GBP/USD for November 02, 2016

GBP/USD remained in sideways during Tuesday's session, as the pair is waiting to get momentum from the FOMC and BoE meeting due this week. At a technical perspective, Cable is still supported by the 1.2229 level, where it converges with the 200 SMA at H1 chart. If the pair manages to break the resistance level of 1.2310, that could unleash more bullish force across the board.

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H1 chart's resistance levels: 1.2310 / 1.2427

H1 chart's support levels: 1.2229 / 1.2155

Trading recommendations for today: Based on the H1 chart, sell (short) orders only if the GBP/USD pair breaks a bearish candlestick; the support level is at 1.2229, take profit is at 1.2155 and stop loss is at 1.2299.

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