NZD/USD intraday technical levels and trading recommendations for December 26, 2016

analytics586109292c2ec.png

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 pursue 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 breakout occurs in either directions.

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

USD/CAD intraday technical levels and trading recommendations for December 26, 2016

analytics586106d2206fd.png

analytics586106ec845dd.png

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, 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 (the 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 liberate a quick bullish movement toward 1.3700-1.3750 (the upper limit of the depicted channel) where bearish rejection should be expected.

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

Intraday technical levels and trading recommendations for GBP/USD for December 26, 2016

analytics586103139fef7.png

analytics586103279992b.png

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 toward 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 1.20

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

On the other hand, price action should be watched around the current price levels (1.2300-1.2260) where a previous top was recently established on October 19. Hence, bullish rejection should be anticipated around the current price levels.

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

Intraday technical levels and trading recommendations for EUR/USD for December 26, 2016

analytics586101c8c5bb1.png

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 toward 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.

analytics586101df29ee5.png

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 toward 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.

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

EUR/NZD analysis for December 26, 2016

analytics5860ef885dc70.png

Recently, EUR/NZD has been moving sideways at the price of 1.5110. Using the market profile, I found yesterday's point of control at 1.5110 on the 30M time frame. The price is trading below the 21SMA and there is a broken upward channel in the background, which is a sign of weakness. My advice is to watch for selling opportunities on pullbacks. Downward targets are set at the price of 1.5015 and 1.4970. Anyway, if the price rejects from 1.5070, EUR/NZD may test the swing high at the price of 1.5230.

Fibonacci Pivot Points:

Resistance levels

R1: 1.5160

R2: 1.5185

R3: 1.5225

Support levels:

S1: 1.5080

S2: 1.5050

S3: 1.5010

Trading recommendations for today: watch for selling opportunities.

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

Technical analysis of GBP/USD for December 26, 2016

GBPUSDH4.png

Overview:

  • The GBP/USD pair dropped from the level of 1.2346 to the bottom around 1.2240. Then it rebounded from the bottom of 1.2240 to reach the 1.2290 level. Today, the first support level is seen at 1.2245, and the price is moving in a bearish channel now. Furthermore, the price has been set below the strong resistance at the level of 1.2346, which coincides with the 38.2% Fibonacci retracement level. This resistance has been rejected several times confirming the downtrend. Additionally, the RSI starts signaling a downward trend. If the GBP/USD pair is able to break the first support at 1.2245, the market will decline further to 1.2163 in order to test the weekly support 2. As seen on the H4 time frame, the pair will probably go down because the downtrend is still strong. Consequently, the market is likely to show signs of a bearish trend. So, it will be good to sell below the level of 1.2346 with the first target at 1.2240 and the next one at 1.2163. At the same time, breakdown of the 1.2350 level will allow the pair to go further up to the levels of 1.2509. Overall, the pair will probably rebound again from the spot of 1.2300 - 1.2340 as long as the level of 1.2350 is not breached. In general, we still prefer the bearish scenario below the area of 1.2300 - 1.2340.
The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of EUR/USD for December 26, 2016

EURUSDH4.png

Overview:

  • The EUR/USD pair faced strong resistance at the level of 1.0560 because support turned into resistance last week. So, the strong resistance has been already formed at the level of 1.0560 and the pair is likely to approach it in order to test it again. However, if the pair fails to pass through the level of 1.0560, the market will indicate a bearish opportunity below the new strong resistance level of 1.0560 (level of 1.0560 coincides with a ratio of 38.2% Fibonacci). Therefore, there is a possibility that the EUR/USD pair will move downwards below the level of 1.0560. Overall, we still prefer the bearish scenario as long as the price is below the level of 1.0560.
EURUSDH43.png
  • Additionaly, the RSI starts signaling a downward trend that showing strength above the moving average (100). Thus, the market is indicating a bearish opportunity below 1.0560, for that it will be good to sell at 1.0560 with the first target of 1.0426. It will also call for a downtrend to continue towards 1.0366. The daily strong resistance is seen at 1.0560. Don't forget to set your stop loss at the level of 1.0619.
The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of USD/JPY for December 26, 2016

USDJPYM30.png

USD/JPY is under pressure. The technical picture of USD/JPY is bearish. The pair broke below its 20-period moving average and accelerated on the downside. The downside momentum is further reinforced by its declining 50-period moving average, which also acts as a resistance level and maintains the downside bias. The RSI is bearish and has broken its 30-level. Additionally, 117.45 represents a key resistance level, which should limit the upside potential. As long as 117.45 holds on the upside, look for further drop toward 116.80 and 116.50 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 116.80. A break below this target will move the pair further downwards to 116.50. The pivot point stands at 117.45. If the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, long positions are recommended with the first target at 117.65 and the second one at 117.85.

Resistance levels: 117.65, 117.85, 118.10

Support levels: 116.80, 116.50, 116

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

Elliott wave analysis of EUR/NZD for December 26 - 2016

analytics5860bde045bd8.png

Wave summary:

The first impulse of the 1.4654 low was completed at 1.5235 and we are looking for a correction towards 1.4964 from where the next impulse wave will be expected. The next major upside target is seen at 1.5837, but in the longer term, we are looking for much higher levels here.

Trading recommendation:

We are looking for a buying opportunity at 1.4925 or upon a break above 1.5235.

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

Elliott wave analysis of EUR/JPY for December 26, 2016

analytics5860bc88ddbe4.png

Wave summary:

Our outlook has not been changed so far. We continue to look for a deeper corrective decline in wave (iv) towards 119.69 before the final rally in wave (v) towards 126.54 is over.

In the short term, a break below minor support at 122.01 and more importantly below support at 121.70 will confirm a decline towards 119.69.

The alternate count for wave (iv) shows that a running triangle is unfolding. If this scenario proves to be valid, then support at 122.01 must hold firm for a break above 123.20.

Trading recommendation:

We sell EUR at 122.41 and with stop loss placed at 123.00 and take profit at 120.25.

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

Technical analysis of USD/CHF for October 28, 2016

USDCHFM30.png

USD/CHF is expected to trade with bearish bias as the key resistance lies at 0.9960. The pair is trading above its 20-period and 50-period moving averages, while the relative strength index is above its neutrality level at 50. Nevertheless, 1.0280 represents a significant key resistance level, which should limit the upside potential. Even though a continuation of technical rebound cannot be ruled out, its extent should be limited.

As long as 1.0280 holds on the upside, look for a further drop toward 1.0235 and 1.0210 in extension.

Resistance levels: 1.03, 1.0320, 1.0375

Support levels: 1.0235, 1.0210, 1.0170

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

Technical analysis of NZD/USD for December 26, 2016

NZDUSDM30.png

NZD/USD is expected to trade with a bearish bias as the key resistance lies at 0.6925. The pair is posting some technical rebound, having broken above its 20-period moving average. The relative strength index is around its neutrality level at 50 and is turning up. Nevertheless, 0.7240 is playing a key resistance role, which should limit the upside potential. Additionally, the declining 50-period moving average suggests that the pair still has potential for a further downside. As long as 0.6925 is not broken, the pair is likely to return to its next support at 0.6850. A break below this level would call for a further downside toward 0.6825.

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 move above its pivot point. It is likely to go 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, 0.7965, 0.7010

Support levels: 0.6850, 0.6825, 0.6765

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

Technical analysis of GBP/JPY for December 26, 2016

GBPJPYM30.png

GBP/JPY is under pressure. The relative strength index is capped by a negative trend line and holds below its neutrality level at 50. Additionally, the 20-period moving average crossed below the 50-period one and is playing a resistance role. As long as 144.50 holds on the upside, look for a further drop toward 143.20 and even 142.80 in extension.

The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. Therefore, long positions are recommended with the first target at 143.20 and the second one at 142.80. In the alternative scenario, short positions are recommended with the first target at 145.30 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 145.50. The pivot point lies at 144.50.

Resistance levels: 145.30, 145.50, 146.05

Support levels: 143.20, 142.80, 140.15

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

USD/JPY dropping toward our profit target, remain bearish

Price continues to drop towards our profit target. We remain bearish below 117.90 resistance (Fibonacci retracement, horizontal swing high resistance, descending resistance) for a drop towards 116.14 support (Fibonacci retracement, Fibonacci projection, horizontal overlap support).

RSI (34) is seeing descending resistance holding price down.

Sell below 117.90. Stop loss at 118.28. Take profit at 116.14.

analytics586071e90bb7d.png

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

AUD/JPY at major support, turn bullish

Price is now approaching major support at 83.74 (Fibonacci retracement, Fibonacci projection, horizontal support) where we expect a bounce from for price to the 84.92 resistance (horizontal overlap resistance, Fibonacci projection, Fibonacci retracement).

Stochastic (21,5,3) is seeing major support above the 14% level.

Buy above 83.74. Stop loss at 83.09. Take profit at 84.92.

analytics586071d089770.png

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

EUR/USD remain bullish

We remain bullish above 1.0418 support (Fibonacci retracement, horizontal overlap support) for a push up to at least 1.0510 once again (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.

analytics586071b557b57.png

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

USD/CHF remain bearish

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.

analytics5860719d3b41a.png

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

EUR/JPY at major resistance, time to sell

We are bearish on EURJPY below 122.85 resistance (Fibonacci retracement, horizontal resistance) as we expect a push down towards the 121.26 support level (Fibonacci retracement, Fibonacci projection).

RSI (34) has made a pullback to our resistance line and saw a reaction off it.

Sell below 122.85. Stop loss at 123.35. Take profit at 121.26.

analytics58607180e4ed4.png

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

Daily analysis of USDX for December 26, 2016

USDX still remains well supported above the 200 SMA at H1 chart, as the demand zone of 102.56 continues to provide strong bottom across the board. The index is looking for a significative catalyst in order to crawl up or plunge, whichever could be the path, but the odds are still calling for more upside moves and next resistance is placed at the 103.98 level.

USDXH1.png

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 26, 2016

Following Christmas holidays, GBP/USD started the last week of the year with a bearish consolidation, as the price remains below the 200 SMA at H1 chart. Currently, it's finding demand around the 1.2250 zone, where a breakout lower should open the doors to test the 1.2185 level, but possibly because of low volume in trading, the pair may start to do corrective moves to the upside.

GBPUSDH1.png

H1 chart's resistance levels: 1.2318 / 1.2390

H1 chart's support levels: 1.2249 / 1.2185

Trading recommendations for today: Based on the H1 chart, sell (short) orders only if the GBP/USD pair breaks a bearish candlestick; the support level is at 1.2249, take profit is at 1.2185 and stop loss is at 1.2312.

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

Daily analysis of major pairs for December 26, 2016

EUR/USD: The EUR/USD went down on Monday and Tuesday, and then began to move upwards slowly from Wednesday. Overall, the bias is bearish, which means that the current bullish attempt is an opportunity to go short at better prices. The support lines at 1.0400 and 1.0350 could still be reached.

1.png

USD/CHF: This pair is currently consolidating and it is quite choppy right now. However, the recent outlook is bullish and as long as price is above the psychological level at 1.0000. This is something that may hold for the rest of this year, for further bullish movement is a logical possibility.

2.png

GBP/USD: This pair came down 200 pips this week. Now below the distribution territory at 1.2300. There is a Bearish Confirmation Pattern in the chart and the accumulation territories at 1.2250, 1.2200 and 1.1150 before the end of this month. Long trades are not recommended in this market at this period.

3.png

USD/JPY: This market has become flat since last week and there is no directional movement in the near term. Right now, it is OK to stay away from the market because there are mixed signals in it – the EMAs 11 and 56 are giving a bullish indication while the RSI period 14 is giving a bearish indication. Soon, the indicators would begin to give signals in the same direction.

4.png

EUR/JPY: The EUR/JPY went flat throughout last week. However, a closer look at the market reveals that bulls are intent on pushing price higher. So when momentum returns to the market, it might push price toward north. The supply zones at 123.00, 123.50 and 124.00 might be reached soon.

5.png

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