NZD/USD Intraday technical levels and trading recommendations for December 9, 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.

During August and September, a consolidation range was established from the price level of 0.7250 up to 0.7350.

Later on October 20, the lower limit of the consolidation range (0.7250) stood as a temporary resistance which initiated a bearish movement towards 0.7100 (lower limit of the depicted channel).

Bullish recovery was expressed around the price level of 0.7100 on October 28. Hence, a double-bottom pattern was expressed on the chart.

Bullish fixation above 0.7250 and 0.7350 was needed to allow further bullish advance towards the projected target of the reversal pattern around 0.7450.

However, significant signs of a bearish reversal were expressed around the upper limit of the price range (0.7350).

The bearish breakdown of 0.7250 (lower limit of the depicted range) enhanced the bearish side of the market towards the price level of 0.7100 (recent bottom of October 28) which was broken as well.

Bearish persistence below 0.7100 allowed a quick bearish decline towards 0.6960 (BUY zone) where bullish rejection and a valid BUY entry were expected. All T/P levels were successfully achieved.

The recent bullish pullback towards 0.7120 was considered for selling the NZD/USD pair. However, the resistance level failed to provide enough bearish pressure.

That's why, bullish pullback was pursued towards the price level of 0.7230 (the backside of the broken uptrend line) where a valid SELL entry can be offered if enough bearish rejection is expressed. S/L should be located above 0.7320.

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Global macro overview for 09/12/2016

Global macro overview for 09/12/2016:

Germany's Bundesbank (BUBA) has issued its semi-annual review of the German economy this morning. It is worth to notice, that BUBA raised German GDP forecasts for 2016 and 2017 to 1.8%, but downgraded inflation forecast to 1.4% from 1.5% for 2018 and increased inflation expectations to 1.7% and even higher to 1.9% for 2019. Moreover, it is mentioned in the report, that government debt ratio could fall to 60% of GDP as Germany's budget is set to generate surpluses for years without new measures. Bundesbank President Jens Weidmann said in the report, that "Germany's economy is continuing to move on a sound upward path. Its main driver is buoyant domestic demand, which is being bolstered by the favorable situation in the labour market and by rising household income". In conclusion, the Bundesbank report revealed a bullish overall tone and positive bullish projections of German economy, nevertheless nothing spectacular.

Let's now take a look at EUR/USD technical picture in the 4H time frame. It looks like another lower high has been made at the level of 1.0872 and now the market has resumed the downtrend. The bear camp is stil in full control over this market, so the test/breakout of 1.0510 is just a matter of time.

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Gold analysis for December 09, 2016

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Recently, gold has been moving downwards. As I expected, the price tested the level of $1,163.20 in a high volume. My targets from yesterday has been met. According to the 30M time frame, I found strong selling presure and watch for selling opportunities. Downward target is set at the price of $1,157.00. Supply cluster I mentoned yesterday was very strong resistance.

Resistance levels:

R1: 1,175.90

R2: 1,177.80

R3: 1,180.90

Support levels:

S1: 1,168.90

S2: 1,166.80

S3: 1,163.20

Trading recommendations for today: Watch for potential selling opportunities.

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Global macro overview for 09/12/2016

Global macro overview for 09/12/2016:

The US Unemployment Claims for November had been released yesterday and they were just in line with expectations. The number of Americans filing for unemployment benefits dropped from five-week highs last week to the level of 258K (268k prior). This means the initial claims remain below 300k level for 92nd straight week and the four-week average has moved to 252,500 level. It looks like the US job market is near full employment as the unemployment rate remains steady at 4.6%. The conditions on the job market seems to be getting better, so this might be another reason for FED to increase the short-term interest rate by 0.25bp to the level of 0.75% at the meeting next week ( December 17th).

Let's now take a look at the US Dollar Index technical picture at the daily time frame. The bulls are still in control over this market and yesterday's bullish reversal candlestick pattern supports the view. Currently, the market should head towards the level of 102.06 in order to test it or break out higher. Please notice, that the price is starting to diverge from the momentum oscillator, which might suggest the larger correction is just around the corner.

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EUR/NZD analysis for December 09, 2016

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Recently, EUR/NZD has been moving downwards. The price tested the level of 1.4726 in a high volume. According to the 30M time frame and using the market profile. I found today's point of control at the price of 1.4790. Sellers are in control on EUR/USD. Watch for selling opportunties. The price broke the yesterday's low, which is sign of weakness. I placed Fibonacci expansion to find potential downward targets. I got Fibonacci epxansion 61.8% at the price of 1.4620 and Fibonacci expansion 100% at the price of 1.4500.

Fibonacci Pivot Points:

Resistance levels

R1: 1.5005

R2: 1.5080

R3: 1.5200

Support levels:

S1: 1.4760

S2: 1.4680

S3: 1.4560

Trading recommendations for today: Consider selling opportunities.

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Technical analysis of USD/CAD for December 9, 2016

General overview for 09/12/2016:

The market is most likely in a reversal zone now, just above the 78% Fibo at the level of 1.3129. The downside might be limited now, but the price must break out above the blue channel and then head towards the weekly pivot at the level of 1.3342. Please pay attention that the bullish divergence between the price and momentum oscillator supports the bullish view.

Support/Resistance:

1.3129 - 78%Fibo

1.3235 - Intraday Resistance

1.3342 - Weekly Pivot

1.3431 - WR1

1.3464 - Wave b High

Trading recommendations:

Day traders should open buy orders only if the level of 1.3235 is clearly violated. Otherwise, the sideways price action does not justify any trade for now.

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Technical analysis of EUR/JPY for December 9, 2016

General overview for 09/12/2016:

The top for the wave (v) of (3) (blue) has been established at the level of 123.35 and now the market is in a corrective decline of a wave (4) (blue). The most important intraday level is the intraday resistance at the level of 121.93. This level should cap any rally attempts as there is an unfinished wave progression to the downside.The first target for wave (4) is technical support at the level of 118.71.

Support/Resistance:

124.00 - WR2

122.71 - WR1

121.93 - Intraday Resistance

120.89 - Intraday Support

120.62 - Weekly Pivot

119.40 - WS1

118.71 - Technical Support

Trading recommendations:

All buy orders should be closed with profit and the sell orders should be now opened as there is anuncompleted wave progression to the downside.

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Technical analysis of USD/CAD for December 9, 2016

USD/CAD has established a downtrend producing lower lows and lower highs. The pair broke the lower trend line of the descending channel after which rejected the 50 Moving Average.

Fibonacci applied to corrective wave up where the MA was rejected shows that today USD/CAD broke below the 161.8% Fibs and should continue moving lower to test next target.

Consider selling USD/CAD on small pullbacks up targeting either 261.8% (1.3115) or 361.8% (1.3040) Fibs. Suggested stop loss is 1.3570.

Support: 1.3115, 1.3040

Resistance: 1.3190, 1.3235

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Technical analysis of GBP/AUD for December 9, 2016

After consolidation between 1.7200 and 1.6970 areas, GBP/AUD broke below the 1.6970 support and at the same time below the 200 Moving Average. A corrective wave up followed the breakout rejecting the 50 Moving Average.

Fibonacci applied to that corrective wave shows potential downside targets. Consider selling GBP/AUD at the current rate (1.6830) targeting one of the Fibonacci levels: 161.8% (1.6750), 261.8% (1.6620), 361.8% (1.6490). Suggested stop loss is 1.6940.

Support: 1.6835, 1.6750, 1.6620, 1.6490

Resistance: 1.6970

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USD/CAD intraday technical levels and trading recommendations for December 9, 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) was needed to enhance bearish momentum in the market.

However, on August 18 signs of a bullish recovery were manifested around the price level of 1.2830, which led to the current bullish breakout above 1.3000.

The USD/CAD pair was trapped between the price levels of 1.3000 (61.8% Fibonacci level) and 1.3360 (50% Fibonacci level) until a bullish breakout took place three weeks ago.

Note that the USD/CAD pair was challenging the upper limit of the depicted flag pattern around 1.3360-1.3400 which failed to apply enough bearish pressure on the pair.

Shortly after, significant bearish engulfing weekly candlestick was expressed by the end of the last week indicating strong resistance around 1.3550.

Bearish persistence below the price level of 1.3300 (50% Fibonacci Level) was achieved. This allows further bearish decline towards 1.3200, 1.3090 and 1.2990 (61.8% Fibonacci Level).

Otherwise, bullish breakout above 1.3360 will probably liberate a quick bullish movement towards 1.3650 (low probability).

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Intraday technical levels and trading recommendations for GBP/USD for December 9, 2016

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The price zone between 1.3845 and 1.3550 (historical bottoms set in January 2009) was considered a significant demand zone to be watched for bullish recovery.

However, by the end of June a significant bearish break 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 confirmed the bearish Flag pattern. That is why, a bearish projection target would be located around 1.2020.

Recently, bullish recovery was manifested around 1.2080. That is why, a bullish pullback is being executed towards 1.2700-1.2750.

The current bullish pullback towards the price zone of 1.2700-1.2750 should be considered for a valid SELL entry. T/P levels should be located at 1.2300 and 1.2100 while S/L should be set as a daily closure above 1.2800.

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Intraday technical levels and trading recommendations for EUR/USD for December 9, 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 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, the recent bearish rejection was expected around the depicted supply levels (note the monthly candlesticks of May, August, and October 2016).

In the longer term, the level of 0.9450 will remain a projected bearish target when 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 persistence below 1.0825 is needed to enhance this bearish scenario.

In September 2016, temporary bullish breakout above 1.1250 was expressed again, but evident bearish pressure was applied on the EUR/USD pair on September 16.

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).

On November 9, obvious bearish breakdown of the 1.1000 price level occurred (Shooting Star daily candlestick). Moreover, further bearish decline below 1.0825 (Fibonacci Expansion 100%) was expressed.

Bearish persistence below 1.0825 allowed further bearish decline to occur to 1.0570 (demand level) where bullish rejection and a valid BUY entry were expected by the end of last week.

The recent bullish recovery is seen on the depicted daily chart.

The price level of 1.0825 (Fibonacci Expansion 100%) constituted a recent supply level which offered a valid SELL entry. Stop Loss should be lowered to 1.0720 to secure some profits.

On the other hand, an obvious bearish closure below the depicted demand level around 1.0570 is needed to allow further bearish decline. The first bearish target would be located around 1.0220.

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NZD/USD profit target reached again, prepare to turn bearish again

Price dropped perfectly to our profit target yesterday. We now remain bearish looking to sell on strength below major resistance at 0.7193 (Fibonacci projection, Fibonacci retracement, horizontal pullback resistance) for a drop to 0.7141.

RSI (34) has made a bearish exit of its long-term ascending support-turned-resistance line signalling a reversal is approaching.

Sell below 0.7190. Stop loss at 0.7223. Take profit at 0.7141.

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USD/CHF at major resistance, prepare to sell

Price is now at major resistance 1.0177 (Fibonacci retracement, horizontal swing high resistance) where we expect a reaction from for a drop to at least 1.0115 support (Fibonacci retracement, horizontal pullback support).

Stochastic (21,5,3) is seeing major resistance below the 90% level.

Sell below 1.0177. Stop loss at 1.0215. Take profit at 1.0115.

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GBP/USD approaching major support, prepare to turn bullish

Price dropped perfectly from our selling area towards our profit target yesterday. We prepare to turn bullish above 1.2508 support (Fibonacci retracement, Fibonacci projection, horizontal pullback support) to play the rise to at least 1.2684 (Fibonacci retracement, Fibonacci projection, previous swing high resistance).

RSI (34) is seeing major support at the 39% level.

Buy above 1.2508. Stop loss at 1.2375. Take profit at 1.2684.

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AUD/USD dropped perfectly from our selling area, remain bearish

Price has once again dropped perfectly below our major resistance at 0.7500 (Fibonacci projection, horizontal resistance, Fibonacci retracement) and we expect a drop to at least 0.7370 (Fibonacci retracement, Fibonacci projection, horizontal swing low support).

Stochastic (21,5,3) is seeing major resistance at the 87% level and also displays bearish divergence vs price.

Sell below 0.7500. Stop loss at 0.7557. Take profit at 0.7370.

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Technical analysis of USDX for December 9, 2016

The US dollar index bounced strongly yesterday, as we expected, towards the cloud resistance near 101.50-101.30. This is important resistance area as rejection here will put the uptrend in danger and will push the index back below 100.

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The US dollar index is testing the 4-hour cloud resistance at 101.20-101.50. This is also the area between the 61.8% and 78.6% Fibonacci retracement of the entire decline from its highs to 99.44 levels hit after Draghi's conference yesterday. However, the reversal on the 4-hour chart looks very similar to the reversal from 96-96.50 from the post election reversal.

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Green line - support trend line

The US dollar index is making a reversal back towards the important long-term resistance of the 61.8% Fibonacci retracement of the decline from 2001. As long as the price is above yesterday's lows we should expect the USD index to make new highs above 102.50. A break below the yesterday lows should be a bearish and very important reversal sign for the US dollar index.

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Technical analysis of NZD/USD for December 09, 2016

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Overview:

  • The NZD/USD pair continued moving upwards from the level of 0.7126.
  • Current price is set at 0.7174. The pair rose from the level of 0.7126 (daily support) to the top around 0.7222.
  • Today, the first support level is seen at 0.7150 followed by 0.7126, while daily resistance is seen at 0.7280.
  • According to the previous events, the NZD/USD pair is still moving between the levels of 0.7126 and 0.7280 in coming hours.
  • This would suggest a bullish market because the RSI indicator is still in a positive area and does not show any trend-reversal signs.
  • The NZD/USD pair faces resistance at 0.7223, while strong resistance is seen at 0.7280.
  • Furthermore, if the trend is able to break out through the first resistance level of 0.7223, we should see the pair climbing towards the new double top (0.7280).
  • On the other hand, if a breakout takes place at the support level of 0.7126, then this scenario may become invalidated. So, it should be set below the second support of 0.7066.
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Technical analysis of gold for December 9, 2016

Gold price although it has broken above the bearish short-term channel, the follow through was not as strong as expected. Price remains below important resistance and no reversal is confirmed yet.

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Black lines - bearish channel

Gold price is trading below the Ichimoku cloud resistance. Resistance is at $1,180-$1,200. A break above this area will confirm a trend change. This trend change is anticipated for some time now as we are close to important long-term support levels.

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Red lines - bullish wedge

On the daily chart, we can see oscillators diverging at oversold levels and a wedge pattern that implies a strong upward move will follow once we break above $1,180. Target of this bounce should be beginning of the wedge pattern around $1,270-$1,300. Support is at $1,150 and next at $1,120.

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Daily analysis of major pairs for December 9, 2016

EUR/USD: The EUR/USD pair made a bearish attempt yesterday, leading to another bearish signal on the 4-hour chart. Price has been choppy so far this week, but it may eventually target the support lines at 1.0600 and 1.0550. There could be some bullish attempts along the way, but they would be capped by the resistance lines of 1.0800 and 1.0850.

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USD/CHF: The USD/CHF pair made a bullish attempt yesterday, leading to another bullish signal on the 4-hour chart. Price has been choppy so far this week, but it may eventually target the resistance levels at 1.0200 and 1.0250. There could be some bearish attempts along the way, but they would be contained at the support levels of 1.0100 and 1.0050.

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GBP/USD: The GBP/USD pair has pulled back this week; and the pullback is getting serious enough to threaten the recent bullish signal in the market. The RSI period 14 has already crossed the level 50 to the downside. As soon as the EMA 11 crosses the EMA 56 to the downside, a bearish signal would form.

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USD/JPY: This market is still consolidating – and that is something that started last week. In spite of this, the Bullish Confirmation Pattern in the market remains intact and when momentum comes back to the market, it might end up favoring bulls. As long as the demand level at 112.50 is not breached to the downside, the bullish bias on the market would be valid.

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EUR/JPY: It is better to stay away from this market right now, until there is a prolonged directional movement on it. The EMAs and the RSI are giving conflicting signals because sustained trending movement is few and far between. A strong movement is expected next week.

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Technical analysis of USD/CHF for December 09, 2016

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Overview:

  • According to the previous events, the USD/CHF pair is still trading between the levels of 1.0064 and 1.0204. Besides, the weekly resistance and support are seen at the levels of 1.0062 and 1.0204 respectively. Also, it should be noted that history usually repeats itself at certain level. Therefore, it is recommended to be cautious while placing orders in this area. So, we need to wait until the sideways channel has completed, the market moved from its bottom at 1.0062 and continued to rise towards the top of 1.0100. Today, on the one-hour chart, the current rise will remain within a framework of correction. However, if the pair fails to pass through the level of 0.6558, the market will indicate a bearish opportunity below the strong resistance level of 1.0150. Since there is nothing new in this market, it is not bullish yet. Sell deals are recommended below the level of 1.0150 with the first target at 1.0062. If the trend breaks the support level of 1.0062, the pair is likely to move downwards continuing the development of a bearish trend to the level 0.9953 in order to test the daily support 2. We still prefer a bearish market as the trend will not be able to break the last major resistance of 1.0204. So, the major resistance has already set at the point of 1.0204 for that you should place your stop loss above the last top.

Comment:

  • History usually repeats itself at certain level.
  • The doubel top is seen at the point of 1.0204
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Elliott wave analysis of EUR/NZD for December 9 - 2016

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Wave summary:

The announcement of the ECB tapering also caused a decline in this cross. The break below the former low at 1.4737 has revived the downtrend within the ending diagonal and a possible continuation lower toward max.1.4590. From closer to 1.4590 or upon a direct break above 1.5092 a rally toward 1.5837 will be expected.

Trading recommendation:

Our break-even stop was hit. We will buy EUR at 1.4610 or upon a break above 1.5092 with stop placed at 1.4585.

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Elliott wave analysis of EUR/JPY for December 9 - 2016

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Wave summary:

EUR/JPY spiked higher to 123.35 after the ECB announced a tapering plan starting from April 2017, where they will cut the amount to EUR 60 Billion pr. month. The knee jerk reaction pushed EUR/JPY to 123.35 a few minutes and then turned lower. We continue to look for a decline into the 118.00 - 118.38 area from where the next impulsive rally toward 124.49 will be expected.

Short-term, we will be looking for resistance in the 122.11 - 122.40 area for the next decline toward 118.38.

Trading recommendation:

Our stop at 123.00 was hit. We are looking for a new selling opportunity at 122.10. Stop will be placed at 123.40 and take profit at 118.50.

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Technical Analysis of the US Dollar Index for December 09, 2016.

Technical outlook and chart setups:

The US Dollar Index finally picks support off the 99.40/50 levels yesterday and staged an impressive rally through 101.30 levels till now. Please note that this rally might not just be the end of the corrective drops that has begun from 102.05 levels earlier. Instead, the index might just be carving out a lower high and continue lower toward 99.00 and 98.50 levels. On the other hand, if we assume that a low has been carved out at 99.40 levels, the index needs to at least pullback lower toward 100.00/50 levels before turning bullish again. It is hence recommended to initiate short positions again with risk above 101.50 levels. Immediate resistance is seen at 101.50 levels, while support is at 99.40 levels respectively.

Trading recommendations:

Remain short again, stop at 101.60, target 100.00 at least and 98.50 levels.

Good luck!

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EUR/USD Technical Analysis for December 09, 2016.

Technical outlook and chart setups:

The EUR/USD pair had continued to rally yesterday till around 07:55 am EST before hitting 1.0872 levels and reversing sharply lower. As depicted here, please note that the rally from 1.0500 through 1.0872 levels now looks to be 5 waves (not labelled though). The drop from 1.0872 through 1.0580 still looks to be corrective and another push higher can be expected from here, to complete the counter trend rally that has begun from 1.0500 levels earlier. On the flip side, even if the corrective rally is complete at 1.0872 levels, the pair needs to rally at least through 1.0800 levels before dropping lower again. Immediate support is seen at 1.0500 levels, while short term resistance is seen at 1.0872 levels respectively.

Trading recommendations:

Remain long now, stop around 1.0500 levels and target is 1.0800 minimum and 1.0900 plus levels.

Good luck!

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Technical analysis of USD/JPY for December 09, 2016

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USD/JPY is expected to trade in higher range as the bias remains bullish. The pair is trading above its 50-period moving average and is holding on the upside. Besides, the outlook is positive as the 20-period moving average crossed above the 50-period one. Meanwhile, the relative strength index is above 50 and is positively oriented.

On Thursday, U.S. indices closed higher elevated by shares in the banks, diversified financials, and materials sectors. The Dow Jones Industrial Average rose 65 points (+0.3%) to 19,615, the S&P 500 added 5 points (+0.2%) to 2,246, and the Nasdaq Composite was up 21 points (+0.4%) to 5,417.

On the economic data front, initial jobless claims decreased to 258k in week ended Dec. 3 (estimated 255k) from 268k in the previous week. Continuing claims diminished to 2.01M in week ended Nov. 26 (forecasted 2.05M) compared with 2.08M in the prior week.

To sum up, as long as 114.10 is not broken down, further bounce is preferred with 115.00 and 115.30 as targets.

Trading Recommendation: The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. Therefore, long positions are recommended with the first target at 115 and the second one at 115.30. In the alternative scenario, short positions are recommended with the first target at 113.80 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 113.65. The pivot point lies at 114.10.

Resistance levels: 115.00, 115.30, 115.80

Support levels: 113.80, 113.65, 113.20

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Technical analysis of USD/CHF for December 09, 2016

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USD/CHF is expected to further advance. The pair remains on the upside, backed by its ascending 20-period and 50-period moving averages. The relative strength index stands firmly above its neutrality level at 50.

On the economic data front, initial jobless claims decreased to 258k in week ended Dec. 3 (estimated 255k) from 268k in the previous week. Continuing claims diminished to 2.01M in week ended Nov. 26 (forecasted 2.05M) compared with 2.08M in the prior week.

Therefore, as long as the key level at 1.0130 is not broken, look for a further upside toward 1.0185 and even 1.0205 in extension.

Resistance levels: 1.0185, 1.0205, 1.0240

Support levels: 1.0100, 1.0080, 1.0060

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Technical analysis of NZD/USD for December 09, 2016

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NZD/USD is expected to prevail its downside movement. The pair broke below its 50-period moving average and consolidated on the downside. Technically, double tops are identified on December 8 which posts a negative outlook to the pair. The relative strength index is below its neutrality level at 50 and lacks upward momentum. Thus, as long as 0.7190 holds on the upside, look for a further drop toward 0.7150. A break below this level would call for a further drop toward 0.7130, below 0.7130 look for further downside target at 0.7100.

The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 0.7130. A break below this target will move the pair further downwards to 0.7100. The pivot point stands at 0.7190. In case the price moves in the opposite direction and bounces back from the support level, it will go above its pivot point. It is likely to move further to the upside. According to that scenario, long positions are recommended with the first target at 0.7210 and the second one at 0.7225.

Resistance levels: 0.7210, 0.7225, 0.7260

Support levels: 0.7130, 0.7100, 0.7065

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

Technical analysis of GBP/JPY for December 09, 2016

GBPJPYM30.png

GBP/JPY is Under pressure. The pair is trading below its resistance at 144.75, which should limit the upside attempts. The downward momentum is further reinforced by its descending 50-period moving average, which maintains a downside bias. Besides, the relative strength index is below its neutrality area at 50, and lacks upward momentum. To sum up, as long as 144.75 is not surpassed, the pair is likely to drop to 143.30 and then to 142.70.

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 143.30. A break below this target will move the pair further downwards to 142.70. The pivot point stands at 144.75. In case the price moves in the opposite direction and bounces back from the support level, it will go 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 145.15 and the second one at 145.70.

Resistance levels: 145.15, 145.70, 146.35

Support levels: 143.30, 142.70, 141.50

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

Technical analysis of EUR/USD for Dec 09, 2016

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When the European market opens, some Economic Data will be released, such as French Industrial Production m/m, French Gov Budget Balance, and German Trade Balance. The US will release the economic data, too, such as Prelim UoM Inflation Expectations, Final Wholesale Inventories m/m, and Prelim UoM Consumer Sentiment. So, amid the reports, EUR/USD will move in a low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Breakout BUY Level: 1.0667.

Strong Resistance:1.0660.

Original Resistance: 1.0650.

Inner Sell Area: 1.0640.

Target Inner Area: 1.0615.

Inner Buy Area: 1.0590.

Original Support: 1.0580.

Strong Support: 1.0570.

Breakout SELL Level: 1.0563.

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 Dec 09, 2016

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In Asia, Japan will release the Prelim Machine Tool Orders y/y, M2 Money Stock y/y, BSI Manufacturing Index and the US will release some Economic Data, such as Prelim UoM Inflation Expectations, Final Wholesale Inventories m/m, and Prelim UoM Consumer Sentiment. So, there is a probability the USD/JPY will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Resistance. 3: 115.05.

Resistance. 2: 114.82.

Resistance. 1: 114.60.

Support. 1: 114.32.

Support. 2: 114.09.

Support. 3: 113.87.

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 December 09, 2016

USDX is consolidating gains above the 200 SMA, following a very bullish session it had during Thursday. We should note that the index managed to break above the resistance level of 100.93 and it's expected to extend its current bias toward the 101.56 level. If USDX does a breakout above that bullish target, we can expect further gains until the psychological zone of 102.00.

USDXH1.png

H1 chart's resistance levels: 101.56 / 101.93

H1 chart's support levels: 100.93 / 100.43

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 101.56, take profit is at 101.93 and stop loss is at 101.18.

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

Daily analysis of GBP/USD for December 09, 2016

GBP/USD is still finding a demand zone around 1.2551, while it still hovers below the 200 SMA at H1 chart. The pair can attempt a rebound to resume the overall bullish structure, but if that support mentioned above gives up, we can expect a downside continuation toward the 1.2430 level. MACD indicator is oversold and it could favor further rebounds.

GBPUSDH1.png

H1 chart's resistance levels: 1.2653 / 1.2763

H1 chart's support levels: 1.2551 / 1.2430

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 1.2653, take profit is at 1.2763and stop loss is at 1.2543.

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