Global macro overview for 04/11/2016

Global macro overview for 04/11/2016:

The Non-Farm Employment Change data published today were worse than market expectations. The US job market has created only 142k jobs last month, while market participants had expected an increase to 174k after 191k two months ago. The good news is that average hourly earnings gained 0.4% versus 0.3% expected and 0.2% prior. The unemployment rate remained at the same level of 4.9% (4.9% expected versus 5.0% prior). In conclusion, the readings are little below expectations, but overall it looks like another steady report on wages, which are showing some solid growth now.

Let's now take a look at the EUR/USD technical picture at the 4H time frame. No sign of a bullish breakout yet as the price has stopped at the technical resistance at 1.1103. Moreover, it starts to diverge from the momentum oscillator, so it might be the time for a corrective sell-off. The next support is seen at the level of 1.1040. Only a sustained break out above the recent swing high at the level of 1.1125 would invalidate the view.

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Global macro overview for 04/11/2016

Global macro overview for 04/11/2016:

The decision of the High Court of the United Kingdom makes the process of leaving the UK out of the EU delayed, because Theresa May's cabinet will have to consult the parliament. The High Court of the United Kingdom stated that all the steps of the British government regarding Brexit require parliamentary approval. Today, UK PM Theresa May has met with Angela Merkel and Jean-Claude Juncker of the European Commission and she said she's confident of winning the Brexit case appeal at the Supreme Court. Moreover, she claims the timing for triggering Article 50 remained the same, Spring 2017.

Let's now take a look at the GBP/USD technical picture at the 4H time frame. The bulls have hit the technical resistance at the level of 1.2478 and the market is trading sideways as the golden trend line resistance is making any higher moves a little more difficult. The larger time frame trend is still down and the next support is seen at the level of 1.2333.

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Technical analysis of USD/CAD for November 4, 2016

General overview for 04/11/2016:

The market is trying to break out above the intraday resistance at the level of 1.3433 in order to make another higher high, but the growing bearish divergence between the price and the momentum indicator does not confirm this move. This means the market is about 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 4, 2016

General overview for 04/11/2016:

The price has been trading inside the horizontal zone between the intraday resistance at the level of 114.77 and intraday support at the level of 114.01. It looks like the market might now be trying to develop a more complex ant time-consuming corrective pattern. Otherwise, one more sub-wave to the downside is needed to complete this cycle. Please notice that 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

114.01 - Intraday Support

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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NZD/USD intraday technical levels and trading recommendations for November 4, 2016

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As long as the NZD/USD pair continued trading above 0.6860, further bullish advance was expected towards the upper limit of the depicted channel around 0.7400.

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 where significant bearish rejection was expressed.

Shortly after, the price level around 0.7100 (the lower limit of the depicted channel) stood as a solid support Level where bullish recovery was expressed on October 28.

The depicted chart illustrates a double-bottom pattern. Full projection target is located around 0.7450.

Bullish persistence above 0.7250 (Neckline) is mandatory to allow further bullish advance towards 0.7350.

Note that the depicted price-zone (0.7250-0.7350) corresponds to a previous consolidation range.

That's why, bullish breakout above 0.7350 is needed to reach towards 0.7450 (Full projection of the reversal pattern). Otherwise, the NZD/USD pair remains trapped within the consolidation zone.

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Gold analysis for November 04, 2016\

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Since our previous analysis, gold has been trading sideways at the price of $1,300.00. According to the 30M time frame and using the market profile analysis, I found strong resistance and strong point of control at the price of $1,300.25. Also, there is supply trendline in the background, which is a good sign for further lower price. Watch for selling opportunities. The first downward target is set at the price of $1,294.81 and second target is set at the price of $1,285.65.

Fibonacci pivot points:

Resistance levels:

R1: 1,303.50

R2: 1,307.25

R3: 1,313.30

Support levels:

S1: 1,291.45

S2: 1,287.75

S3: 1,281.70

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

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EUR/NZD analysis for November 04, 2016

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Recently, EUR/NZD has been moving upwards. As I expected, the price tested the level of 1.5188 in a high volume. My analaysis from yesterday is still valid. On 30M time frame and using the market profile, I found potential bottoming. The price found the low at 1.5116 and demand came in on the market. I found a strong point of control at the price of 1.5215. Watch for potential buying opportunities with a target around the price of 1.5215. The short-term trend is downward but we may see potential bullish correction. The breakout of the 1.5115 may confirm a further downward continuation. Today's point of control is set at the price of 1.5160.

Fibonacci Pivot Points:

Resistance levels

R1: 1.5225

R2: 1.5260

R3: 1.5315

Support levels:

S1: 1.5115

S2: 1.5080

S3: 1.5025

Trading recommendations for today: Watch for potential buying opportunities.

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USD/CAD intraday technical levels and trading recommendations for November 4, 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 4, 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 4, 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. This was followed by a daily breakout above 1.1000 on November 1.

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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Technical analysis of USD/JPY for November 04, 2016

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USD/JPY is expected to trade with bearish bias. The pair remains under pressure below its key resistance at 103.50, and is likely to test its nearest support levels at 102.80 and 102.55 in the coming sessions. The intraday trend remains bearish, as the falling 50-period moving average maintains the strong selling pressure on the prices.

On Thursday, U.S. stocks ended another session in negative territory. The S&P 500 dropped 9 points (-0.4%) to 2,088 making up an eight-day losing streak, the longest since 2008. The Dow Jones Industrial Average declined 28 points (-0.2%) to 17,930, and the Nasdaq Composite was down 47 points (-0.9%) to 5,058.

On the economic data front, the U.S. Labor Department reported that initial jobless claims amounted to 265,000 in the week ended October 29, higher than 256,000 expected. The ISM Non-manufacturing PMI declined to 54.8 in October (vs. 56.0 expected) from 57.1 in September, while the Markit US services PMI in October improved to 54.8 from 52.3 in September. Factory orders grew 0.3% on month in September (vs. +0.2% expected, +0.4% in August), while durable goods orders fell 0.3% on month (vs. -0.1% expected, +0.3% in August).

To look for further evidence that the U.S. Federal Reserve would raise interest rates in December, investors are watching closely today's October jobs report, which is expected to post an addition of 173,000 jobs with a lower jobless rate of 4.9%.

To conclude, as long as 103.50 is not surpassed, look for a test of 102.55 as likely.

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 102.55. A break below this target will move the pair further downwards to 102.20. The pivot point stands at 103.50. 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 103.90 and the second one at 104.40.

Resistance levels: 103.90, 104.40, 105.00

Support levels: 102.55, 102.20, 102.00

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Technical analysis of USD/CHF for November 04, 2016

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USD/CHF is expected to trade with bullish bias above 0.9690. The pair is trading around its 20-period and 50-period moving averages, which are flat and do not show clear directions. Nevertheless, the relative strength index is above its neutrality level at 50 and lacks downward momentum. Additionally, 0.9690 (Nov 2 and 3 bottoms) represents a significant key support level, which should limit the downside potential.

On the economic data front, the U.S. Labor Department reported that initial jobless claims amounted to 265,000 in the week ended October 29, higher than 256,000 expected. The ISM Non-manufacturing PMI declined to 54.8 in October (vs. 56.0 expected) from 57.1 in September, while the Markit US services PMI in October improved to 54.8 from 52.3 in September. Factory orders grew 0.3% on month in September (vs. +0.2% expected, +0.4% in August), while durable goods orders fell 0.3% on month (vs. -0.1% expected, +0.3% in August).

As long as this key level is not broken, look for a further upside toward 0.9785 and even 0.9820 in extension.

Resistance levels: 0.9785, 0.9820, 0.9870

Support levels: 0.9660, 0.9630, 0.9600

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Technical analysis of NZD/USD for November 04, 2016

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NZD/USD is expected to prevail its upside movement. The pair is trading above its rising 20-period and 50-period moving averages, which play support roles and maintain the upside bias, and is holding on the upside. The relative strength index is above its neutrality level at 50 and lacks downward momentum. Additionally, 0.7270 is playing a key support role, which should limit the downside potential. As long as this key level is not broken, look for a further advance toward 0.7340 and even 0.7370 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 0.7340 and the second one at 0.7370. In the alternative scenario, short positions are recommended with the first target at 0.7220 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 0.7190. The pivot point lies at 0.7270.

Resistance levels: 0.7340, 0.7370, 0.7405

Support levels: 0.7220, 0.7190, 0.7155

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Technical analysis of GBP/JPY for November 04, 2016

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GBP/USD is expected to trade with bullish bias. The pair recorded a succession of higher tops and higher bottoms and is trading on the upside. The rising 20-period and 50-period moving averages are playing support roles and maintain the upside bias. The relative strength index is above its neutrality area at 50 and lacks downward momentum. Additionally, 127.55 represents a significant key support level, which should limit the downside potential. The British pound was boosted by a ruling by U.K. High Court judges that the prime minister could not trigger the formal Brexit process without Parliament's backing. Further fueled by the Bank of England's hints on ceasing interest rate cuts

As long as 127.55 holds on the downside, look for a further upside toward 129.05 and even 129.60 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 129.05 and the second one at 129.60. In the alternative scenario, short positions are recommended with the first target at 126.80 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 126.45. The pivot point lies at 127.55.

Resistance levels: 129.05, 129.60, 130.50

Support levels: 126.80, 126.20, 125.60

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Technical analysis of NZD/USD for November 04, 2016

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Overview:

  • The NZD/USD pair continued moving upwards from the level of 1.1332. Yesterday, the pair rose from the level of 0.7259 to the top around 0.7340. Today, the first support level is seen at 0.7259 followed by 0.7206, while daily resistance is seen at 0.7388. According to the previous events, the NZD/USD pair is still moving between the levels of 0.7206 and 0.7388; for that we expect a range of 182 pips. This would suggest a bullish market because the RSI indicator is still in a positive area and does not show any trend-reversal signs. Furthermore, if the trend is able to break out through the first resistance level of 0.7313, we should see the pair climbing towards the new double top (0.7388). Currently, the price is in a bullish channel. On the contrary, if a breakout takes place at the support level of 0.7206, then this scenario may become invalidated. Remember to place a stop loss; it should be set below the second support of 0.7206.
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Technical analysis of USD/CHF for November 04, 2016

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Overview:

  • The USD/CHF pair continues to move downwards from the level of 0.9777, which represents the ratio of 38.2 Fibonacci retracement. The current price is set at the level of 0.9740. The pair dropped from the level of 0.9777 to the bottom around 0.9695. Today, the first resistance level is seen at 0.9777 followed by 0.9819, while daily support is seen at the levels of 0.9723, 0.9682 and 0.9640. According to the previous events, the USD/CHF pair is still trapping between the levels of 0.9723 and 0.9640. Hence, we expect a range of 83 pips in coming hours. The first resistance is seen at 0.9777, for that if the USD/CHF pair fails to break through the resistance level of 0.9777, the market will decline further to 0.9681. This would suggest a bearish market because the RSI indicator is still in a negative area and does not show any trend-reversal signs. The pair is expected to drop lower towards at least 0.9639 in order to test the second support which represents a double bottom.

Trading tips:

  • It is recommended to sell during the correction and open short trades below 0.9777 with targets at 0.9681 and 0.9639. Also, it should be noted that the downward trend is still strong. However, if a breakout takes place at the resistance level of 0.9819, then this scenario may become invalidated.
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Daily analysis of major pairs for November 4, 2016

EUR/USD: This trading instrument will be bullish as long as the USD/CHF is bearish. Price has gone upwards significantly, and bulls are still willing to push it further upwards. Therefore, the resistance lines at 1.1150 and 1.1200 may be targeted today or next week.

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USD/CHF: This market is in a bearish mode, regardless the current choppy condition in the short-term. The EMA 11 is below the EMA 56, and the Williams' % Range period 20 remains in the oversold region. After much hesitation, bears may just succeed in pushing price below the support levels at 0.9700, which is currently preventing further bearish movement.

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GBP/USD: The GBP/USD has gone upwards by 300 pips this week, resulting in a strong Bullish Confirmation Pattern on the 4-hour chart. There is a possibility that price would continue going upwards today or next week, reaching the distribution territories at 1.2500, 1.2550 and 1.2600.

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USD/JPY: There is a Bearish Confirmation Pattern in the USD/JPY 4-hour chart. And the bearishness in the market remains valid, despite the current volatility in the market. Further bearish movement is possible and the demand levels at 102.50 and 102.00 could be tested.

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EUR/JPY: Bears have continued to flex their muscles on this cross, which has made price to weaken further. This has become a threat to the extant bullish signal in the market, and a movement below the demand zone at 113.50 would result in a clean bearish outlook.

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Technical analysis of USDX for November 4, 2016

The Dollar index bounced higher but not as strong as I expected. Price remains in a bearish trend which could change today after the US NFP report.

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Black lines - bearish channel

The Dollar index is trying to break above the short-term Tenkan-Sen resistance (red line indicator). The price is inside the bearish channel. Both oscillators are giving bullish divergence signals. This is a warning for Dollar bears. The NFP today could provide a good excuse to break out above the bearish channel.

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The weekly chart remains bearish moving towards our back test target of 96.50. However, if the NFP numbers announced are positive, we should expect a bounce. Overall, I believe the dollar index is facing an important high and a new down trend has started. Bounces should be seen as opportunities to sell.The material has been provided by InstaForex Company - www.instaforex.com

Elliott wave analysis of EUR/NZD for November 4, 2016

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Wave summary:

We continue to expect that support at 1.5066 will act as a floor for a break above minor resistance at 1.5266 that will call for a new rally to and ideally above resistance at 1.5454 for more upside pressure towards 1.5764.

Only an unexpected break below 1.5066 will invalidate the bullish outlook here, but even if the price breaks below 1.5066, the expected potential downside seems very limited here.

Trading recommendation:

We are long EUR from 1.5145 with stop placed at 1.5060. If you are not long EUR yet, then buy upon a break above 1.5266 and use the same stop at 1.5060.

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Technical analysis of gold for November 4, 2016

Gold price pulled back towards support yesterday and bounced back towards its highs around $1,300. Trend remains bullish although there are signs of a short-term pause in the up trend. I expect this up trend to continue at least towards $1,320.

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Red line - resistance

Gold price is trading above the Tenkan-Sen (the red line indicator) which is the first important short-term support. Price pulled back towards the Kijun-Sen (the yellow line indicator) yesterday and bounced strongly creating a bullish candlestick pattern. A break above the red line resistance will open the way towards $1,320.

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Blue line - resistance (previous support)

Gold price is now fighting with the blue trend line resistance that was once support. A weekly close above it could open the way higher towards $1,350 where we can fave the long-term trend line resistance from its all time highs. Support is at $1,288 and bulls want a weekly close above it.

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AUD/JPY inverse head and shoulders, time to buy

Price has formed an inverse head-and-shoulders reversal pattern. We look to buy above major support at 79.00 (Fibonacci retracement, shoulder support) for a push up to 79.80.

RSI (34) is bouncing off our 42% major support.

Buy above 79.00. Stop loss at 78.42. Take profit at 79.80.

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NZD/USD at major resistance, time to start selling

Price made a strong push up and is now at major resistance at 0.7345 (Fibonacci retracement, Fibonacci projection, horizontal resistance) where we expect a strong drop from here towards 0.7190.

RSI (34) is also at major resistance where the previous major reversal occurred.

Sell below 0.7345. Stop loss at 0.7375. Take profit at 0.7190.

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Elliott wave analysis of EUR/JPY for November 4, 2016

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Wave summary:

We would prefer to see one final decline closer to the 61.8% corrective target of the rally from 112.57 to 115.68 at 113.75 to complete red wave [ii] for the next impulsive rally above 115.68 and more importantly above resistance at 116.23 that will call for a continuation higher to 118.60 and 122.00 as the next upside targets.

That said, a direct break above 114.73 will indicate that the correction in red wave [ii] completed early and the next impulsive rally in red wave [iii] towards 118.60 is unfolding.

Trading recommendation:

We will re-buy EUR at 113.85 or upon a break above 114.73 (one order done cancels the other)

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Technical analysis of EUR/USD for Nov 04, 2016

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When the European market opens, some economic data will be released such as Average Hourly Earnings m/m, German Final Services PMI, French Final Services PMI, Italian Services PMI, Spanish Services PMI.The US will also publish some reports such as Trade Balance, Unemployment Rate, Non-Farm Employment Change, Average Hourly Earnings m/m. Therefore, amid the news EUR/USD will move in a medium to high volatility during this day.

TODAY'S TECHNICAL LEVELS:

Breakout BUY Level: 1.1153.

Strong Resistance:1.1147.

Original Resistance: 1.1136.

Inner Sell Area: 1.1125.

Target Inner Area: 1.1099.

Inner Buy Area: 1.1073.

Original Support: 1.1062.

Strong Support: 1.1051.

Breakout SELL Level: 1.1045.

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 Nov 04, 2016

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In Asia, today Japan will not release any economic data. However, the US will release some economic news such as Trade Balance, Unemployment Rate, Non-Farm Employment Change, and Average Hourly Earnings m/m. So there is a probability the USD/JPY pair will move with medium to high volatility during this day.

TODAY'S TECHNICAL LEVELS:

Resistance 3: 103.49.

Resistance 2: 103.29.

Resistance 1: 103.09.

Support 1: 102.84

Support 2: 102.63.

Support 3: 102.43.

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

Daily analysis of USDX for November 04, 2016

The index remains supported by the 97.12 level, ahead of the US NFP due today. Currently, USDX is trying to take a rest, following days of losses across the board, but a rebound above it can happen if the NFP number comes above the expectations. However, if the index manages to break lower, the next hurdle would be the 96.47 level.

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H1 chart's resistance levels: 97.62 / 98.01

H1 chart's support levels: 97.12 / 96.47

Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the USD Index breaks with a bearish candlestick; the support level is at 97.12, take profit is at 96.47 and stop loss is at 97.75.

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

Daily analysis of GBP/USD for November 04, 2016

GBP/USD skyrocketed during Thursday's session after the UK High Court ruled to leave the Brexit's decision to the mercy of the UK Parliament, discarding the idea that Theresa May's government may trigger the Article 50 without their authorization. Besides, BoE's meeting helped to keep the bullish tone alive and the pair is facing the resistance zone of 1.2465. If we see a breakout above it, then we can expect an advance towards the 1.2605 level.

GBPUSDH1.png

H1 chart's resistance levels: 1.2465 / 1.2605

H1 chart's support levels: 1.2413 / 1.2310

Trading recommendations for today: Based on the H1 chart, buy (long) orders only if the GBP/USD pair breaks a bullish candlestick; the resistance level is at 1.2465, take profit is at 1.2605 and stop loss is at 1.2325.

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