Intraday technical levels and trading recommendations for NZD/USD for December 22, 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 toward 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 seen on the chart.

Bullish fixation above 0.7250 and 0.7350 was needed to allow further advance toward 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 toward 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 toward 0.6960 (BUY zone) where bullish rejection and a valid BUY entry were expected. All T/P levels were successfully achieved.

Once again, bearish persistence below the price level of 0.7100 was needed to head toward lower target levels around 0.7060 and 0.6990 (upper limit of the depicted BUY zone).

This week, the price level of 0.6990 failed to apply enough bullish pressure. Instead, bearish continuation was achieved toward the lower limit of the depicted BUY zone (0.6860).

The NZD/USD pair remains trapped within the depicted price range (0.6860-0.6990) until a breakout occurs in either direction.

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Intraday technical levels and trading recommendations for USD/CAD for December 22, 2016

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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 challenged the upper limit of the depicted channel around 1.3360-1.3400, which succeeded to apply enough bearish pressure on the pair.

Shortly after, a 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 allowed a further decline toward 1.3200 and 1.3080 (lower limit of the depicted channel) where bullish rejection was expressed as anticipated.

The current bullish breakout above 1.3360 (50% Fibonacci level) will probably lead to a quick bullish movement toward 1.3700-1.3750 (upper limit of the depicted channel) where bearish rejection should be expected.

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Intraday technical levels and trading recommendations for GBP/USD for December 22, 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 price levels around 1.2700 (bearish projection target).

Since then, the GBP/USD pair has been 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 was executed towards 1.2700-1.2750.

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

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

On the other hand, price action should be watched around the current price levels (1.2300-1.2320) where a prominent bottom was recently established on November 21. Another ascending bottom may be established around these levels.

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Intraday technical levels and trading recommendations for EUR/USD for December 22, 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, 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 remains a projected target if the current monthly candlestick maintains its bearish closure 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 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.

Closure below 1.1250 (supply level 1) maintained enough bearish pressure and enhanced the downside momentum towards the price level of 1.1000 (key level 1).

On November 9, an obvious bearish break 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 fall to occur at 1.0570 (demand level) where bullish rejection and a valid BUY entry were expressed on November 24.

The price level of 1.0825 (Fibonacci Expansion 100%) constituted a recent supply level which offered a valid SELL entry on December 8. Stop Loss should be lowered to 1.0600 to secure some profits.

Bearish persistence below the depicted demand level around 1.0570 allows further bearish decline. The first bearish target would be located around 1.0220.

On the other hand, the price level of 1.0570 constitutes a recent supply level to be watched for SELL entries if a bullish pullback occurs above 1.0500.

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EUR/NZD analysis for December 22, 2016

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Recently, EUR/NZD has been moving upwards. As I expected, the price tested the level of 1.5170 in a high volume. Using the market profile, I found today's point of control at 1.5100 on the 30M time frame. The price is trading above the 21SMA and there is a successful test of supply, which is a sign of strength. My advice is to watch for buying opportunities on dips. I placed Fibonacci expansion to find potential upward targets. I got Fibonacci expansion 100% at the price of 1.5200 and Fibonacci expansion 161.8% at the price of 1.5290.

Fibonacci Pivot Points:

Resistance levels

R1: 1.5050

R2: 1.5070

R3: 1.5100

Support levels:

S1: 1.4999

S2: 1.4975

S3: 1.4945

Trading recommendations for today: watch for buying opportunities.

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Global macro overview for 22/12/2016

Global macro overview for 22/12/2016:

The US Durable Goods Orders data are scheduled for release today at 01:30 pm GMT. The market participants are looking for a quite substantial decrease of -4.9% on monthly basis after 4.8% increase last month. This would be the first monthly setback since June 2016. The main reason for such a sharp decline in expectations is the last week's hard data on industrial production. The manufacturing sector in the US is trying to rebound quite successfully so far, as the Markit's PMI ticked up to a 21-month high in this month's flash estimate. Will that expectations met the hard core data, we will find out just in a couple of hours.

Let's now take a look at the EUR/USD technical picture at the 4H time frame. A marginal lower low at the level of 1.0351 was made yesterday (another confirmation of an ongoing bearish trend), but the market bounced toward the immediate technical resistance at the level of 1.505. Nevertheless, the bulls were too weak to even break out above the weekly pivot at the level of 1.0481 and the market is still trading sideways just before the data release.

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Gold analysis for December 22, 2016

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Recently, the gold has been downwards. As I expected, the price tested the level of $1,128.14. Using the market profile, I found today's point of control at the price of $1,130.90 on the 30M time frame. According to the 30M time frame, I found that price is trading below the 21SMA and that there is sluggish demand in the background, which is a sign of weakness. Watch for selling opportunities on the pullbacks. Downward targets are set at the levels of $1,128.20 (yesterday's low) and $1,125.85.

Resistance levels:

R1: 1,134.75

R2: 1,136.00

R3: 1,138.50

Support levels:

S1: 1,130.00

S2: 1,128.60

S3: 1,126.50

Trading recommendations for today: watch for selling opportunities on the pullbacks.

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Global macro overview for 22/12/2016

Global macro overview for 22/12/2016:

The Energy Information Administration (EIA) announced on Wednesday a 2.3 million barrel increase in US crude oil inventories during the week ending December 16. The market participants anticipated a decline of 2.4 million barrels, following the preceding week's 2.6 million barrel slip, so, the data release has surprised them a lot. This is the first data release since OPEC and non-OPEC countries had agreed on supply cut last month at the Vienna meeting.

Let's now take a look at the Crude Oil technical picture at the 4H time frame. The price is still trading above all moving averages and the series of the consecutive higher highs is supporting the fact that the bulls are in full control over this market. The next resistance is seen at the level of 54.57 and the next support is seen at the level of 51.65.

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AUD/NZD remain bearish below major resistance

We remain bearish looking to sell on strength below 1.0494 resistance (horizontal swing high resistance, Fibonacci projection) for a push down to 1.0418 (Fibonacci retracement, horizontal overlap support).

RSI (34) is seeing major resistance below the 56% level and is displaying bearish divergence vs price.

Sell below 1.0494. Stop loss at 1.0520. Take profit at 1.0418.

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GBP/USD above major support, time to buy

We prepare to buy above 1.2382 support (Fibonacci retracement, horizontal overlap support) for a push up to 1.2554 resistance (Fibonacci retracement, horizontal pullback resistance).

Stochastic (21,5,3) is seeing bullish divergence vs price and has also bounced above our support line.

Buy above 1.2382. Stop loss at 1.2290. Take profit at 1.2554.

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USD/CHF dropping nicely toward the profit target, remain bearish

Price has been dropping nicely toward our profit target. We remain bearish below 1.0268 resistance (Fibonacci retracement, horizontal overlap resistance) for a further push down to 1.0200 resistance (Fibonacci projection, Fibonacci retracement, horizontal overlap support).

Stochastic (21,5,3) is seeing descending resistance pushing price down.

Sell below 1.0268. Stop loss at 1.0296. Take profit at 1.0200.

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Technical analysis of EUR/JPY for December 22, 2016

General overview for 22/12/2016:

Bulls have managed to retrace over 61% of the downswing and it looks like the market is evolving to a more complex and time-consuming corrective pattern like the triangle. The next targets for wave c (purple) of the wave (d) (green) are at the levels of 123.20 or 123.60. Any breakout below the intraday support at the level of 122,79 will lead to the immediate test of the wave a low at the level of 122.20.

Support/Resistance:

124.43 - WR1

124.07 - Technical Resistance

123.20 - Intraday Resistance

123.01 - Weekly Pivot

122.79 - Intraday Support

121.93 - WS1

120.52 - WS2

Trading recommendations:

Daytraders should consider opening sell orders only if the intraday support at the level of 122.79 is clearly violated. TP should be set at the level of 122.20.

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EUR/USD turn bullish

Price has surpassed our descending resistance-turn-support line triggering a bullish move from here. We are bullish above 1.0418 support (Fibonacci retracement, horizontal overlap support) for a push up to at least 1.0510 (Fibonacci retracement, horizontal overlap support).

RSI (34) has made a bullish exit signalling a change in the momentum.

Buy above 1.0418. Stop loss at 1.0347. Take profit at 1.0510.

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USD/CAD at major resistance, time to sell

Price is seeing major resistance at 1.3430 (Fibonacci retracement, descending resistance) and we expect to see a reaction from this level for a drop to at least 1.3100 (Fibonacci retracement, swing low support).

Stochastic (34,5,3) is seeing a reversal from the 96% resistance level.

Sell below 1.0430. Stop loss at 1.3540. Take profit at 1.3100.

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USD/JPY dropping toward the profit target, remain bearish

Price is dropping nicely toward our profit target. We remain bearish below resistance at 118.16 (Fibonacci retracement, Fibonacci projection) for a drop to at least 116.14 support (Fibonacci projection, Fibonacci retracement, horizontal pullback support).

Stochastic (34,5,3) remains bearish below 94% resistance.

Sell below 118.26. Stop loss at 118.71. Take profit at 116.14.

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Technical analysis of USD/CAD for December 22, 2016

General overview for 22/12/2016:

The market broke out of the trading range and now is trying to test 78% Fibo at the level of 1.3479. The level of 1.3433 will act as an intraday support now as a market approaches the resistance level. Please notice, the growing bearish divergence between the price and momentum oscillator.

Support/Resistance:

1.3503 - WR1

1.3479 - 78%Fibo

1.3433 - Intraday Support

1.3322 - Intraday Support

1.3292 - Weekly Pivot

1.3269 - Intraday Support

1.3167 - WS1

Trading recommendations:

The buy orders should be still kept open. TP should be set at the level of 1.3479.

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Daily analysis of major pairs for December 22, 2016

EUR/USD: There is a Bearish Confirmation Pattern in the EUR/USD 4-hour chart, and the bias is bearish. However, price has been trying to make some bullish effort this week, which translates into a rally in the context of a downtrend. This is a kind of scenario that enables bears to go short again at better prices.

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USD/CHF: The USD/CHF is still in a bullish mode. Price is supposed to continue going upwards this week, reaching the resistance levels at 1.0300 and 1.0350. There is a Bullish Confirmation Pattern in the 4-hour chart. The bullish outlook would be valid as long as price does not go below the support levels at 1.0050 and 1.0000.

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GBP/USD: The Cable is currently a bear market in the short and long-term. The EMA 11 is below the EMA 56 and the RSI period 14 is below the level 50. In the last few days, price has been moving sideways, but further bearish movement is expected before the end of this month.

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USD/JPY: This market has not done much this week. The general outlook on the market is bullish, and there are possibilities that the supply levels at 118.00, 118.50 and 119.00 would be tested before the end of this year. Bearish corrections in this market should be taken as opportunities to go long.

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EUR/JPY: The EUR/JPY cross is a trendless market in the near time. Price has consolidated so far this week, but a rise in momentum will happen before the end of the year, which would be a surprise. A closer look at the market reveals some bullish attempts. The expected direction in the market is bullish when momentum does arise.

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Technical analysis of USD/CHF for December 22, 2016

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Overview:

  • The USD/CHF pair continued to move upwards from the level of 1.0219. The pair has risen from the level of 1.0219 (the level of 1.0219 coincides with the ratio of 61.8% Fibonacci Expansion) to the top around 1.0259. In consequence, the USD/CHF pair broke resistance at 1.0219, which turned into strong support at the level of 1.0219. In the H4 time frame, the level of 1.0219 is expected to act as major support today. Currently, the price is moving in a bullish channel. This is confirmed by the RSI indicator signaling that we are still in a bullish market. The price is still above the moving average (100). From this point, we expect the USD/CHF pair to continue moving in the bullish trend from the support level of 1.0219-1.0250 toward the target level of 1.0274. If the pair succeeds in passing through the level of 1.0274, the market will indicate the bullish opportunity above the level of 1.0274 so as to reach the second target at 1.0305. Also, it should be noted that the double top will set at the point of 1.0343. On the other hand, if the USD/CHF pair is able to break out the level of 1.0219, the market will decline further to 1.0181 (daily support 2).
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Technical analysis of NZD/USD for December 22, 2016

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Overview:

  • The NZD/USD pair fell sharply from the level of 0.6966 toward 0.6882. Now, the price is set at 0.6911. The resistance is seen at the levels of 0.6966 and 0.7018. Moreover, the price area of 0.6966-0.7018 remains a significant resistance zone. Therefore, there is a possibility that the NZD/USD pair will move downside and the structure of a fall does not look corrective. The trend is still below the 100 EMA for that the bearish outlook remains the same as long as the 100 EMA is headed to the downside. Hence, amid the previous events, the price is still moving between the levels of 0.6966 and 0.6882. If the NZD/USD pair fails to break through the resistance level of 0.6966, the market will decline further to 0.6882 as the first target. This would suggest a bearish market because the RSI indicator is still in a negative spot and does not show any trend-reversal signs. The pair is expected to drop lower toward at least 0.6838 so as to test the daily support 2. On the contrary, if a breakout takes place at the resistance level of 0.7018, then this scenario may become invalidated.
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Elliott wave analysis of EUR/NZD for December 22, 2016

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Wave summary:

We have finally seen the expected break above resistance at 1.5092 adding confidence in a long-term low being in place with the test of 1.4654. WE are now looking for a break above 1.5162 to confirm that a long-term low is in place and a new long-term impulsive rally has begun. This new impulsive rally should ultimately break above 1.9023.

The first impulsive rally from 1.4654 is in its final stages and we should soon see a correction towards at least 1.1.4956 and likely even into the 1.4840 - 1.4898 area before the next impulsive rally accelerates much higher.

Short-term We will ideally see minor support at 1.5039 protect the downside for the break above 1.5162 and from just above 1.5162 a correction will be expected.

Trading recommendation:

We are long EUR from 1.4830 and we will move our stop higher to 1.5025 and place take profit at 1.5165.

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Technical analysis of GBP/USD for December 22, 2016

The GBPUSD is trading sideways on an intraday level. The price needs to break above 1.2385-1.24 in order to give us a short-term bullish signal with the 1.25 first target. On the other hand rejection at 1.2385 and a break below 1.23 will open the way for a push towards 1.22.

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Blue line - resistance

The price needs to break above the blue trend line resistance. The price is moving sideways. A break below 1.2330 will be the first sign of weakness. A break above 1.2385 will be the first sign of strength.

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Red lines - trading range

On a daily basis, the trend remains bearish setting to test support at the lower trading range boundary at 1.2305. If this level is broken we should expect the price to push lower towards the green trend line support at 1.2110.

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Technical analysis of USD/JPY for December 22, 2016

The USDJPY is forming a triangle pattern between 118 and 117.25. A break of either level will push the price towards 119 or 116 respectively. The trend is neutral as the price is moving sideways. I prefer to be shorting near resistance.

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Red line - resistance

Blue line - support

Green line - diverging RSI

The short-term support is at 117.25. Resistance is at 117.95. I prefer to sell bounces and buy dips near 117.25 or at least close half. I believe that eventually the price will break the triangle pattern to the downside and give us a push lower towards 116-115.

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The long-term trend remains bullish as long as the price is above 115. Oscillators are diverging at overbought levels. Bulls need to be very cautious as the parabolic rise in USDJPY when and if it reverses will be very sharp.The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of USDX for December 22, 2016

The US dollar index pulled back yesterday and is testing short-term support. The trend remains bullish in the short term despite the pullback towards 102.80.

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Red lines - bullish channel

Blue line - short-term support

The US dollar index is holding above the blue horizontal short-term support at 102.50 while the price is trading inside the bullish red channel and above the Ichimoku cloud in the 4-hour chart.

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Red lines - bullish channel

Green line - long-term support trend line

Oscillators are diverging at overbought levels. The price is above the weekly Ichimoku cloud and above the very important green trend-line support. A weekly trend reversal will be confirmed on a break below the green trend line.

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Technical analysis of gold for December 22, 2016

The gold price remains in a bearish trend and is mainly moving sideways for the last few sessions between $1,120-$1,140. The medium-term trend remains bearish targeting $1,100.

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Red lines - bearish channel

Blue line - short-term resistance

Green line - short-term support

The gold price is still inside the short-term bearish channel. The short-term trend will change to bullish on a break above $1,150-60. Intraday resistance is at $1,135 while intraday support is at $1,127.

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Red lines - downward sloping wedge

Gold is trading inside the downward sloping wedge just above the 78.6% Fibonacci retracement. The trend remains bearish. No reversal sign yet. Oscillators are oversold and diverging. I remain long-term bullish on gold expecting a big upside move in 2017.

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Elliott wave analysis of EUR/JPY for December 22 - 2016

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Wave summary:

Liquidity has dried up and activity is quite sluggish. As long as minor resistance at 123.01 caps the upside, we continue to look for one more decline closer to 119.70 before the correction in wave (iv) is complete and the final rally in wave 3 closer to 126.54 is expected.

An unexpected break above 123.01 will weaken the case for one more decline towards 119.70, but only a break above 123.64 will confirm that wave (iv) ended early and wave (v) of 3 higher towards 126.54 is already unfolding.

Trading recommendation:

We are short EUR from 123.50 with stop placed at 123.05 and take profit set at 120.25.

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Technical analysis of USD/JPY for December 22, 2016

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USD/JPY is expected to trade with bullish bias above 117.30. The pair holds above its horizontal support at 117.30 and lacks downward momentum. The positive outlook is reinforced as the relative strength index broke above a declining trend line on December 20. US government bonds rebounded as the yield on the 10-year Treasury dropped to 2.535% (vs 2.566% on Tuesday). On the economic data front, MBA mortgage applications rose 2.5% in the week ended December 16th comparing to a decline of 4% in the previous week. In other news, existing home sales increased to 5.61M units in November (estimated 5.50M) from 5.57M in the previous month (revised from 5.60M).

Thus, as long as support at 117.30 is not broken, look for a further upside toward 117.80 and even 118.00 in extension.

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 117.80 and the second one at 118.00. In the alternative scenario, short positions are recommended with the first target at 117.10 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 116.90. The pivot point lies at 117.30.

Resistance levels: 117.80, 118.00, 118.40

Support levels: 117.10, 116.90, 116.50

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Technical analysis of USD/CHF for December 22, 2016

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USD/CHF is expected to trade with bearish bias as consolidation is in place. The pair remains under pressure below its key resistance at 1.0280. The 50-period moving average is turning down and calls for a new pullback. Besides, the relative strength index lacks upward momentum.

On the economic data front, MBA mortgage applications rose 2.5% in the week ended December 16th comparing to a decline of 4% in the previous week. In other news, existing home sales increased to 5.61M units in November (estimated 5.50M) from 5.57M in the previous month (revised from 5.60M).

To sum up, as long as 1.0280 is not surpassed, the pair is likely decline to 1.0235 and 1.0210 in extension.

Resistance levels: 1.0300, 1.0320, 1.0345

Support levels: 1.0235, 1.0210, 1.0180

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Technical analysis of NZD/USD for December 22, 2016

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NZD/USD is under pressure as the price has been capped by a negative trend line since December 16, holding below 0.6925.

Meanwhile the 20-period moving average stays below the 50-period one. This morning, New Zealand's Statistics Office reported that the GDP volume was up by 1.1% QoQ in the third quater (vs +0.8% expected, +0.7% in 2Q).

To sum up, as long as 0.6925 is not broken above, a break below 0.6850 is likely.

The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 0.6850. A break below this target will move the pair further downwards to 0.6825. The pivot point stands at 0.6925. 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 0.6945 and the second one at 0.6965.

Resistance levels: 0.6945, 0.6965, 0.7015

Support levels: 0.6850, 0.6825, 0.6775

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Technical analysis of GBP/JPY for December 22, 2016

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GBP/JPY is expected to post some limited gains. The pair has been supported by a bullish trend line since December 20. The relative strength index has been backed by an ascending trend line since December 19 and is heading upward without any reversal signal. Therefore, as long as 144.90 is not broken below, the pair is expected to post further rebound to challenge 145.70 at first and then 146.05.

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 145.70 and the second one at 146.05. In the alternative scenario, short positions are recommended with the first target at 144.50 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 144.15. The pivot point lies at 144.90.

Resistance levels: 145.70, 146.05, 147.00

Support levels: 144.50, 144.15, 143.55

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Technical analysis of EUR/USD for Dec 22, 2016

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When the European market opens, some economic data will be released such as Italian Retail Sales m/m, ECB Economic Bulletin, and German Import Prices m/m. The US will also publish some reports such as Natural Gas Storage, Personal Income m/m, CB Leading Index m/m, and Personal Spending m/m. Besides, the reports on Core PCE Price Index m/m, HPI m/m, Final GDP Price Index q/q, Durable Goods Orders m/m, Unemployment Claims, Final GDP q/q, and Core Durable Goods Orders m/m will see the light. So amid the reports, EUR/USD will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Breakout BUY Level: 1.0487.

Strong Resistance:1.0480.

Original Resistance: 1.0470.

Inner Sell Area: 1.0460.

Target Inner Area: 1.0435.

Inner Buy Area: 1.0410.

Original Support: 1.0400.

Strong Support: 1.0390.

Breakout SELL Level: 1.0383.

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 22, 2016

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In Asia, Japan will not release any economic data today but the US will reveal such reports as Natural Gas Storage, Personal Income m/m, CB Leading Index m/m, Personal Spending m/m, Core PCE Price Index m/m, HPI m/m, Final GDP Price Index q/q, Durable Goods Orders m/m, Unemployment Claims, Final GDP q/q, Core Durable Goods Orders m/m .So there is a probability the USD/JPY will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Resistance. 3: 118.15.

Resistance. 2: 117.92.

Resistance. 1: 117.69.

Support. 1: 117.41.

Support. 2: 117.18.

Support. 3: 116.95.

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 22, 2016

USDX is trapped in a sideways range on the H1 chart, holding a support around 102.56. We're still projecting an upside target at the 103.98 level where a breakout should help to push the price towards the 104.69 level. The index could test the 200 SMA once again, and if it manages to consolidate below that area, a support level will be followed around 101.40.

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H1 chart's resistance levels: 103.98 / 104.69

H1 chart's support levels: 102.56 / 101.40

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 103.98, take profit is at 104.69 and stop loss is at 103.26.

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

Daily analysis of GBP/USD for December 22, 2016

GBP/USD is still supported by the 1.2327 level, where a demand area is placed across the board. Currently, the cable is poised to continue moving in the downside bias, but corrective moves are still expected, at least towards 1.2462, where a 200 SMA on the H1 chart is placed. However, if the pair manages to break below the 1.2327 level, then it can test the 1.2249 zone.

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H1 chart's resistance levels: 1.2397 / 1.2462

H1 chart's support levels: 1.2327 / 1.2249

Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the GBP/USD pair breaks a bearish candlestick; the support level is at 1.2327, take profit is at 1.2249 and stop loss is at 1.2407.

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

Daily analysis of major pairs for December 21, 2016

EUR/USD: There is a Bearish Confirmation Pattern on the EUR/USD 4-hour chart, and the bias is bearish. The EMA 11 is below the EMA 546, while the Williams' % Range period 20 is not far from the oversold region. The market could go further downwards by at least 100 pips before the end of this week.

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USD/CHF: The USD/CHF is still in a bullish mode. The price is supposed to continue going upwards this week, reaching the resistance levels at 1.0300 and 1.0350. There is a Bullish Confirmation Pattern on the 4-hour chart. The bullish outlook would be valid as long as the price does not go below the support levels at 1.0050 and 1.0000.

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GBP/USD: The GBP/USD is in a bearish mode. The price has gone down 160 pips this week, now it is below the distribution territory 1.2350. The next targets are the accumulation territories at 1.2300 and 1.2250, which could be hit later in the day or before the end of the week.

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USD/JPY: The USD/JPY remains in a bullish mode, though the price is yet to rise significantly this week. The EMA 11 is above the EMA 56, and the RSI period 14 is above the level 50. A directional movement is bound to happen this week or next, which would most probably favor bulls. At least, the supply levels at 118.00 and 118.50 can be tested again.

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EUR/JPY: This currency cross is not attractive at the moment. There is no directional bias so far, and it would be OK to wait until there is a directional bias. A rise in momentum is expected this week or next week, which would be a surprise.

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