Technical analysis of GOLD for December 14, 2016

Gold clearly established a downtrend that does not seem to be over, at least there are no clear signs of a trend reversal. The gold price rejected 50 Moving Average several times and then made a new lower low.

Fibonacci applied to the corrective wave up where 50 Moving Average was rejected shows potential downside targets. Consider selling gold at the current price (1162) targeting 161.8% (1144), 261.8% (1116) or 361.8% (1090) Fibonacci retracement level. Suggested stop loss is 1195.

Support: 1144, 1116, 1089

Resistance: 1160, 1187

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Technical analysis of AUD/CHF for December 14, 2016

AUD/CHF formed a double top near 0.7620 and started to move lower breaking below the 50 Moving Average. Today the pair rejected the 50 Moving Average and could be ready to move lower.

Fibonacci applied to the corrective wave where 50MA was rejected shows potential downside targets. Consider selling AUD/CHF at the current rate (0.7588) targeting 161.8% (0.7550), 261.8% (0.7520) or 361.8% (0.7495) Fibonacci retracement level. Suggested stop loss is 0.7616.

Support: 0.7566, 0.7550, 0.7521, 0.7494

Resistance: 0.7594, 0.7620

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Global macro overview for 14/12/2016

Global macro overview for 14/12/2016:

The most anticipated event of the month, the Federal Reserve interest rate decision, economic forecasts (07:00pm GMT) and press conference (07:30pm GMT) will be in the focus of all global investors today. The Interest rate hike from 0.50% to 0.75% is widely expected (almost certain), so now the most important question is how will today's revised economic forecasts stack up in the central bank's first official outlook since Donald Trump's election victory? The stock market response to Trump election is very bullish, mainly due to the expectations that Trump's administration will deliver a pro-growth policy mix via tax cuts, milder regulation, and infrastructure spending. Moreover, most of market participants assume that US economic growth will slow down from the 3.2% gain in Q3. The question is whether the FED has a different view? We will find out today at 07:00pm GMT.

Let's now take a look at the EUR/USD technical picture in the 4H time frame. The market is trading in a tight horizontal range between the level of 1.0602 and 1.0666 as it awaits the FED decision and economic projections. The outlook still remains bearish and there is still a chance that the parity level of 1.0000 will be hit before any meaningful larger time frame correction will take place.

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Global macro overview for 14/12/2016

Global macro overview for 14/12/2016:

According to the Office for National Statistics, the Consumer Price Index in the UK increased 1.2% in November, while analysts expected the climb to 1.1% after a 0.9% increase in October. This reading is the highest figure since 2014. The biggest factor behind this result is higher price of clothes, up by 1.6% in November. Other main contributors were motor fuels and a 'variety of recreational and cultural goods and services', including hotel and restaurant charges. The last contribution comes from falling price of the pound sterling since Brexit. In conclusion, the inflation is clearly accelerating in the UK and this situation is welcomed by BoE as they expect consumer inflation to reach 1.7% in 2017.

Let's now take a look at the GBP/USD technical picture in 4H time frame. The market keeps trading in a tight sideways range between the levels of 1.2546 and 1.2772. The 50% Fibo rejection is a clear indicator of bears trying to take back the control over this market. Only a clear break out above the technical resistance at the level of 1.2772 would invalidate the bearish bias.

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Technical analysis of USD/CAD for December 14, 2016

General overview for 14/12/2016:

The new impulsive count has been presented in an hourly time frame due to the lack of any progress to the upside (as indicated by the old labeling). Currently, the market is developing the corrective cycle in wave 4 (blue) and one more low is being expected. After the wave 5 (blue) is completed, the market should move to the upside in a corrective manner. To do this, the bulls must break out above the dashed blue channel resistance around the level of 1.3263. A failure there might indicate a further decline.

Support/Resistance:

1.3061 - WS1

1.3101 - Intraday Support

1.3169 - Intraday Resistance

1.3208 - Weekly Pivot

1.3263 - WR1

1.3412 - WR2

Trading recommendations:

Day traders should consider opening only buy orders with tight SL. Any violation of the level of 1.3169 would indicate a further rally towards 1.3208 first and 1.3263 then.

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Technical analysis of EUR/JPY for December 14, 2016

General overview for 14/12/2016:

The sideways price action continues with top for the wave b (green) in place. Currently, the market is trading just below the gray supply zone and it looks like it awaits the Fed interest rate decision later in the day. It means the pair might still attack the recent high at the level of 123.34 any time now. Please notice, that this is wave four in progress, so the correction might evolve to a more complex and time-consuming pattern like a triangle. Sideways price action between the level of 123.34 and 120.89 is expected for now until the correction is completed.

Support/Resistance:

123.34 - Intraday Resistance

121.93 - Intraday Support

121.38 - Weekly Pivot

120.89 - Intraday Support

119.40 - WS1

118,71 - Technical Support

Trading recommendations:

Day traders should consider opening only sell orders with SL just above the level of 123.34. TP should be set at the bottom of the range.

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EUR/NZD analysis for December 14, 2016

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Recently, EUR/NZD has been moving sideways around the price of 1.4735. According to the 30M time frame and market profile, I found yesterday's peak at 1.4765 and the price breached that level successfully. The price is trading below 21SMA and I found a supply cluster from the top, which is a sign of weakness. My advice is to watch for selling opportunities. I have placed Fibonacci expansion to find potential downward targets. I got Fibonacci expansion 61.8% at the price of 1.4695, Fibonacci expansion 100% at the price of 1.4655 and Fibonacci expansion 161.8% at the price of 1.4580.

Fibonacci Pivot Points:

Resistance levels

R1: 1.4795

R2: 1.4820

R3: 1.4870

Support levels:

S1: 1.4705

S2: 1.4675

S3: 1.4630

Trading recommendations for today: Watch for selling opportunities.

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Gold analysis for December 14, 2016

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Recently, gold has been moving sideways at the price of $1,163.44. According to the 30M time frame, the price is trading above 21 SMA, which is a sign of strength. According to market profile analysis, yesterday's point of control is set at the price of $1,158.50. Today, buyers are in control and I placed Fibonacci expansion to find potential upward targets. I got Fibonacci expansion 100% at the price of $1,168.00 and Fibonacci expansion 161.8% at the price of $1,177.50. Besides, there is a swing high is at the price of $1,165.40 (first upward target).

Resistance levels:

R1: 1,162.00

R2: 1,164.00

R3: 1,167.50

Support levels:

S1: 1,155.40

S2: 1,153.40

S3: 1,150.20

Trading recommendations for today: Buyers are in control today. Watch for buying opportunities on dips.

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Technical analysis of USD/CHF for December 14, 2016

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Overview:

  • The USD/CHF pair is still moving between the levels of 1.0064 and 1.0204 on the 14th of December 2016. The USD/CHF pair didn't make any significant movements yesterday. There are no changes in our technical outlook. The bias remains a narrow sideways channel. Besides, the weekly resistance and support are seen at the levels of 1.0062 and 1.0204 respectively. Besides, 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 1.0130. 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. This is confirmed by the RSI indicator signaling that we are still in a bearish trending market. 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.
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Technical analysis of NZD/USD for December 14, 2016

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Overview:

  • The NZD/USD pair has faced strong resistances at the levels of 0.7232. So, the strong resistance has been already formed at the level of 0.7232 and the pair is likely to try to approach it in order to test it again. However, if the pair fails to pass through the level of 0.7232, the market will indicate a bearish opportunity below the new strong resistance level of 0.7232 (the level of 0.7232 coincides with the double top). Moreover, the RSI starts signaling a downward trend, but also it should be noted that the trend is still showing strength above the moving average (100). Thus, the market is indicating a bearish opportunity below 0.7232, so, it will be good to sell at 0.7232 with the first target of 0.7191. It will also call for a downtrend in order to continue toward 0.7159. The daily strong support is seen at 0.7159. However, the stop loss should always be taken into account, for that it will be reasonable to set your stop loss at the level of 0.7260.
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Daily analysis of major pairs for December 14, 2016

EUR/USD: The EUR/USD pair tried to go upward earlier this week. The upwards movement could be taken as another short-selling opportunity, unless the resistance line at 1.0800 is overcome (which would require a serious buying pressure). Price may still target the support lines at 1.0600 and 1.0550.

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USD/CHF: This pair has been coming down gradually since the beginning of this week, and this has become a threat to the current bullish bias. A movement below the support level at 1.0000 would completely override the bullish bias, but that would never be an easy job for bears to do. As long as price is above the support level at 1.0000, the bullish bias would remain.

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GBP/USD: There is still a Bullish Confirmation Pattern on the GBP/USD 4-hour chart. The price has not moved significantly this week, but there would soon be a rise in momentum, which would most probably favor bulls. The bullishness in the market would remain valid as long as price does not go below the accumulation territory at 1.2550.

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USD/JPY: Price has continued to move sideways so far this week. There is a Bullish Confirmation Pattern on the 4-hour chart, and since the outlook on JPY pairs remains bullish for this week, the USD/JPY pair would also normally trend further upwards. The targets for this week are located at the supply levels of 115.50, 116.00, and 116.50.

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EUR/JPY: The EUR/JPY cross has been in a bull market till now in spite of the ongoing sideways movement in the short-term. The EMA 11 is above the EMA 56 and the RSI period 14 is above the level 50. When a strong movement returns to the market, it would most probably be in favor of bulls.

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Technical analysis of USDX for December 14, 2016

The Dollar index is showing bearish reversal signs. Not as strong as the previous days, we could see a deeper pull back towards 99.80 first before a move for new highs near 103.50-104. However the bigger picture that could be formed is of a bearish wedge.

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Black lines - channel

Much will be decided after the FOMC meeting tonight. A break below 99.44 will be a very bearish signal implying a false breakout to new highs. This could signal the start of a reversal toward 96. Short-term support is at 99.80 while resistance is at 102.30.

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The Dollar index is at very important long-term Fibonacci resistance level. A rejection here could be a very bearish sign that could put the index in a multi-week bearish trend back toward 92. Important long-term support is at 96-96.50. Breaking below it will open the way for a push below 92. However, until we have confirmation of such trend reversal, targets remain above 104 as trend remains bullish. Bulls need to be warned though, as oscillators are overbought and diverging.The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of gold for December 14, 2016

Gold continues to trade around $1,160 just below the 61.8% Fibonacci retracement. With the FED rate announcement tonight we could see big swings in prices. Today could be the day we see the much anticipated reversal in Gold or a sell off towards next support of $1,120.

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Red rectangle - resistance area

Blue lines - bullish divergence signs

In the Daily chart we observe bullish divergence signs. Trend change will be confirmed on a break above $1,180 with $1,240-70 as the first target area. Support is at $1,150 and if broken we should expect a move towards $1,120.

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Red lines - bullish wedge

The bullish wedge pattern will give a bullish signal on a break above $1,180. Price is below weekly Ichimoku cloud and the longer it stays below it, the worse for the longer-term bullish view I have. $1,120 is the 78.6% Fibonacci retracement and last support that should hold for bulls. A move below it will diminish the chances of a bullish reversal.

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Elliott wave analysis of EUR/NZD for December 14, 2016

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Wave summary:

We have seen a decline to 1.4654, which could be enough to hit the 1.4590 target. That said, we will have to allow for one more stab towards the downside and closer to the ideal 1.4590 target as long as resistance at 1.4823 is able to cap the upside. From 1.4590 or upon a break above 1.4823 more upside towards at least 1.5837 will be expected.

Trading recommendation:

We have placed EUR-buy orders at 1.4610 or upon a break above 1.4823.

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Elliott wave analysis of EUR/JPY for December 14, 2016

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Wave summary:

We continue to look for a decline into the 118.00 - 118.38 support area to complete wave (iv) from where wave (v) 126.59 will be expected to complete wave (v) and 3.

Short term, any break below minor support at 122.03 will indicate the expected decline in wave (iv) is unfolding, while a break below support at 121.16 will confirm the decline towards the 118.00 - 118.38 area before higher again.

Trading recommendation:

We are short EUR from 122.10 with stop placed at 123.45 and take profit at 118.50. If you are not short EUR yet, then sell a break below 122.03 and use the same stop at 123.45.

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Technical analysis of USD/JPY for December 14, 2016

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USD/JPY is expected to trade with a bearish bias as the key resistance at 115.50. The pair is consolidating and remains under pressure below its horizontal resistance at 115.60. The relative strength index is bearish below its neutrality level at 50.

U.S. government bonds remained under pressure as the benchmark 10-year Treasury yield settled at 2.484%, up from 2.478% Monday. As the U.S. Federal Reserve will soon announce its decision on interest rates, the benchmark 2-year Treasury yield climbed to a six-year high of 1.169%. The U.S. dollar was little changed after its retreat on Monday. The ICE U.S. Dollar Index managed to hold onto the 101.00 level. Traders were waiting for the highly-expected 25-basis-point interest-rate rise to be confirmed by the Federal Reserve, and watching closely if the central bank would indicate the pace of higher rates.

Thus, as long as 115.50 is not broken up, look for a further drop to 114.80 and 114.60 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 114.80. A break below this target will move the pair further downwards to 114.60. The pivot point stands at 115.50. 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 115.85 and the second one at 116.15.

Resistance levels: 115.85, 116.15, 116.50

Support levels: 114.80, 114.60, 114.30

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Technical analysis of USD/CHF for December 14, 2016

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USD/CHF is expected to trade with a bearish bias. The pair remains on the downside, backed by its declining 50-period moving average. The relative strength index is bearish below its neutrality area at 50. In addition, the process of lower highs and lows remains intact, which should confirm a negative outlook.

The U.S. dollar was little changed after its retreat on Monday. The ICE U.S. Dollar Index managed to hold onto the 101.00 level. Traders were waiting for the highly-expected 25-basis-point interest-rate rise to be confirmed by the Federal Reserve, and watching closely if the central bank would indicate the pace of higher rates.

Hence, as long as 1.0145 is not surpassed, likely decline to 1.0080 and 1.0035 in extension.

Resistance levels: 1.0170, 1.0195, 1.0215

Support levels: 1.0080, 1.0060, 1.0035

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Technical analysis of NZD/USD for December 14, 2016

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NZD/USD is expected to trade with bullish bias above 0.7190. The pair is staying above its horizontal support at 0.7190, and lacks downward momentum. Even though a continuation of the consolidation cannot be ruled out, its extent should be limited. The relative strength index is bouncing off its neutrality area at 50. To sum up, as long as 0.7190 is not broken, a further bounce is expected with 0.7245 and 0.7265 as the next targets.

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 0.7245 and the second one at 0.7265. In the alternative scenario, short positions are recommended with the first target at 0.7175 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 0.7155. The pivot point lies at 0.7190.

Resistance levels: 0.7245, 0.7265, 0.7210

Support levels: 0.7175, 0.7155, 0.7140

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Technical analysis of GBP/JPY for December 14, 2016

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GBP/JPY is expected to trade with a bullish bias above 145.40. The pair is posting a consolidation and remains above its horizontal support at 145.40. And the relative strength index lacks downward momentum. Even though a continuation of the consolidation cannot be ruled out, its extent should be limited. As long as 145.40 is not broken down, further bounce is preferred with 146.30 and 146.65 as targets.

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 146.30 and the second one at 146.65. In the alternative scenario, short positions are recommended with the first target at 145.05 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 144.65. The pivot point lies at 145.40.

Resistance levels: 146.30, 146.65, 147.25

Support levels: 145.05, 144.65, 144.15

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Technical analysis of EUR/USD for Dec 14, 2016

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When the European market opens, some economic data will be released such as Industrial Production m/m and French Final CPI m/m. The US will post a series of economic news such as Federal Funds Rate, FOMC Statement, Crude Oil Inventories, Business Inventories m/m, Industrial Production m/m, Capacity Utilization Rate, Core PPI m/m, Retail Sales m/m, PPI m/m, and Core Retail Sales m/m. So amid the reports, EUR/USD will move with medium to high volatility during this day.

TODAY'S TECHNICAL LEVELS:

Breakout BUY Level: 1.0684.

Strong Resistance:1.0677.

Original Resistance: 1.0667.

Inner Sell Area: 1.0657.

Target Inner Area: 1.0632.

Inner Buy Area: 1.0607.

Original Support: 1.0597.

Strong Support: 1.0587.

Breakout SELL Level: 1.0580.

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 Dec 14, 2016

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In Asia, Japan will release the Revised Industrial Production m/m, Tankan Non-Manufacturing Index, and Tankan Manufacturing Index. The US will post a series of economic news such as Federal Funds Rate, FOMC Statement, Crude Oil Inventories, Business Inventories m/m, Industrial Production m/m, Capacity Utilization Rate, Core PPI m/m, Retail Sales m/m, PPI m/m, and Core Retail Sales 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: 115.78.

Resistance 2: 115.55.

Resistance 1: 115.33.

Support 1: 115.06.

Support 2: 114.83.

Support 3: 114.60.

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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NZD/USD Intraday technical levels and trading recommendations for December 14, 2016

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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 decline towards 0.6960 (BUY zone) where bullish rejection and a valid BUY entry were expected. All T/P levels were successfully achieved.

Bearish persistence below the price level of 0.7100 is needed to pursue towards lower target levels around 0.7060 and 0.6990.

On the other hand, the price level of 0.7250 remains a significant SELL entry if the current bullish pullback persists above 0.7200.

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USD/CAD intraday technical levels and trading recommendations for December 14, 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 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 one month 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 during the first attempt.

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

Bearish persistence below the price level of 1.3300 (50% Fibonacci Level) was achieved. This allows a further decline towards 1.3200, 1.3090, and 1.2990 (61.8% Fibonacci Level) where bullish rejection should be expected.

On the other hand, 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 14, 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.

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

This SELL entry should be managed cautiously as the ascending bottoms around the price levels of 1.2120 and 1.2320 will probably apply significant bullish pressure over the Supply zone of 1.2700-1.2750 thus threatening the suggested trade.

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Daily analysis of USDX for December 14, 2016

The index managed to consolidate above the 200 SMA on H1 chart despite the bearish tone during Tuesday's session ahead of Fed's meeting. Markets are highly expecting a rate hike by the central bank, but that move has been already priced. However, to the upside, we can target the levels of 101.56 and 101.93 across the board. MACD indicator is turning flat.

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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.

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Daily analysis of GBP/USD for December 14, 2016

GBP/USD pulled back from the resistance level of 1.2700, ahead of FOMC meeting. Currently, it's still hovering above the 200 SMA, strengthening the bullish bias in the short term and that's why we're still favoring further gains. However, if the pair manages to break below the 1.2613 level, then it can test the 1.2551 level.

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H1 chart's resistance levels: 1.2700 / 1.2763

H1 chart's support levels: 1.2613 / 1.2551

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 1.2700, take profit is at 1.2763 and stop loss is at 1.2637.

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Intraday technical levels and trading recommendations for EUR/USD for December 14, 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, 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 decline below 1.0825 (Fibonacci Expansion 100%) was expressed.

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

Recent bullish recovery was 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 1.0700 to secure some profits

On the other hand, bearish persistence 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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AUD/NZD dropping perfectly towards our profit target

Price has reacted off our selling area perfectly yesterday and is dropping towards our profit target. We remain bearish below 1.424 resistance (Fibonacci retracement, horizontal swing high resistance, descending resistance) for a further drop towards long-term profit target at 1.0367 (Fibonacci projection).RSI (55) is also seeing major resistance from our long-term descending resistance line.

Sell below 1.0424. Stop loss at 1.0460. Take profit at 1.0367.

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EUR/JPY below major resistance, remain bearish

Price has reacted off our major resistance at 122.93 (Fibonacci projection, horizontal swing high resistance) where we expect a drop to at least 120.86 (Fibonacci retracement, horizontal swing low support).

Stochastic (21,5,3) is seeing major resistance below the 92% level where price has reacted off multiple times.

Sell below 122.93. Stop loss at 123.45. Take profit at 120.86.

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NZD/USD drop in progress, remain bearish

Price rose perfectly to our selling area as expected and saw a strong reaction from our major resistance at 0.7223 (Fibonacci projection, horizontal resistance) where we expect a drop to at least 0.7168.

Stochastic (21,5,3) is seeing major resistance at the 94% level where we expect another bearish reaction from.

Sell below 0.7223. Stop loss at 0.7257. Take profit at 0.7168.

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EUR/USD approaching major resistance, prepare to sell

The pair was trading sideways yesterday and we expect it to rise further to our major resistance at 1.0690 (Fibonacci retracement, horizontal pullback resistance) for a drop to at least 1.0585 (Fibonacci retracement, horizontal support).Stochastic (21,5,3) is seeing major resistance at the 95% level where we expect a reaction from.

Sell below 1.0690. Stop loss at 1.0754. Take profit at 1.0585.

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USD/CHF above key support, turn bullish

We remain bullish above our 1.0118 support (Fibonacci retracement, Fibonacci projection, horizontal swing high support) where we expect a bounce towards at least 1.0177.

Stochastic (21,5,3) is seeing major support above the 6.5% level.

Buy above 1.0118. Stop loss at 1.0087. Take profit at 1.0177.

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AUD/USD right at selling level, remain bearish

AUD/USD rose as expected to our selling area of 0.7525 yesterday which is a major resistance level (Fibonacci retracement, Fibonacci projection, horizontal resistance). We expect a drop to at least 0.7370 (Fibonacci retracement, Fibonacci projection, horizontal swing low support).

Stochastic (34,5,3) is seeing major resistance at the 93% level and is also displaying bearish divergence vs price.

Sell below 0.7525. Stop loss at 0.7582. Take profit at 0.7370.

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Daily analysis of Gold for December 13, 2016

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Overview

The gold price shows slight bearish bias approaching from 1,154.75 levels again. Stochastic begins to overlap negatively on the four-hour time frame, thus providing negative momentum that we were awaiting to push the price to break the mentioned level and resume the bearish trend on the intraday and short-term basis, targeting 1,124.88 levels mainly. Therefore, our bearish overview will remain valid and active for today unless breaching and holding above 1,172.68 and 1,182.00 levels. The EMA50 keeps supporting the suggested bearish wave by placing the price under negative pressure. The expected trading range for today is between the 1,140.00 support and the 1,172.68 resistance.

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Daily analysis of Silver for December 14, 2016

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Overview

The silver price traded upwards after leaning on the EMA50 yesterday and headed towards our first main awaited target at 17.43. As long as the price is above 16.56, our bullish overview will remain valid and active for the upcoming period. The price is likely to breach the targeted level to move to 18.30 directly. Note that a break of 16.56 levels will stop the expected rise and push the price to 15.49 levels before any new attempt to rise. The expected trading range for today is between the 16.90 support and the 17.43 resistance.

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