Global macro overview for 28/12/2016

Global macro overview for 28/12/2016:

According to the British Bankers' Association (BBA), a number of approved mortgages in the UK declined to 40.7K in the previous month. This number is worse than expected figure of 41.6K and lower than the last month's figure of 40.8K. This data comprises more than a half of the total U.K. mortgage market and it provides information about buyers' activity in the UK housing market. As we can see, currently activity in the housing market is declining. The biggest UK mortgage lender, Halifax Bank, anticipates that house prices will continue to rise in 2017, but at a much slower rate. The annual pace of growth would be running at between 1% and 4% by the end of the year, versus an average of 10% recorded in March 2016. In conclusion, the UK housing market should remain steady during the next year and no major house bubble is anticipated yet.

Let's now take a look at the GBP/USD technical picture on the 4H time frame. Bears have managed to break out below the short-term dashed black trend line and now they are in control over this market. The next support is seen at the level of 1.2080.

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Global macro overview for 28/12/2016

Global macro overview for 28/12/2016:

CB Consumer Confidence data from the US was released yesterday and it surprised global investors. The index is based on Conference Board's monthly survey of about 5,000 US households regarding their opinion on the economy. For the last month, the consumer confidence index climbed to the highest level since 2001 as Americans became more optimistic about the economy in December. Market participants anticipated a slight decline to 108.9 points from 109.4 points a month ago, but the number released at the level of 113.7 beat all expectations. In conclusion, Americans expect business conditions, stock prices and the job market to strengthen further, following Donald Trump's victory in the US presidential election in November.

Let's now take a look at the EUR/USD technical picture on the 4H time frame. The technical resistance at the level of 1.0505 wasn't violated as the market failed to break out above the weekly pivot at the level of 1.0481. Currently, bears are in control over this market and the next support is seen at the level of 1.0363 - 1.0351.

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Technical analysis of USD/CAD for December 28, 2016

General overview for 28/12/2016:

The corrective cycle in green wave (iv) might have been completed a little sooner than anticipated, mainly due to the end of the year flows. Nevertheless, there is still a very high chance that the triangle pattern is unfolding in this wave. The projected level for green wave (iv) to complete is the intraday support at the level of 1.3475 or weekly pivot support at the level of 1.3412. Please notice there is still one more wave to the upside missing - wave (v) (green). The projected target for this wave is at the level of 1.3588.

Support/Resistance:

1.3588 - Swing High

1.3557 - Intraday Support

1.3483 - Weekly Pivot

1.3412 - WS1

1.3244 - WS2

Trading recommendations:

Due to the fact that there is still one more wave to the upside missing, only buy orders should be placed in this market. TP should be set above the level of 1.3588.

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Technical analysis of EUR/JPY for December 28, 2016

General overview for 28/12/2016:

Wave b (purple) has extended to the upside a little higher than anticipated, but there is still a very high chance that the triangle pattern is unfolding as an overall structure.The projected level for wave e (green) to complete is the intraday support at the level of 122.19 or weekly pivot support at the level of 121.78. Please notice there is still one more wave to the upside missing.

Support/Resistance:

124.07 - WR1

123.20 - Intraday Resistance

122.50 - Weekly Pivot

122.19 - Intraday Support

121.78 - WS1

120.94 - WS2

Trading recommendations:

Due to the fact that there is still one more wave to the upside missing, only buy orders should be placed in this market. We recommend to set TP above the level of 124.08.

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EUR/NZD analysis for December 28, 2016

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Recently, EUR/NZD has been moving downwards. The price tested the level of 1.5062 in a high volume. Using the market profile, I found today's point of control at 1.5125 on the 30M time frame. The intraday trend is bearish. Watch for potential selling opportunities on pullbacks. I placed Fibonacci expansion to find a potential downward target and I got Fibonacci expansion 100% at the price of 1.5060 (on the test) and Fibonacci expansion 161.8% at the price of 1.5015.

Fibonacci Pivot Points:

Resistance levels

R1: 1.5185

R2: 1.5200

R3: 1.5220

Support levels:

S1: 1.5140

S2: 1.5130

S3: 1.5110

Trading recommendations for today: watch for selling opportunities.

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Gold analysis for December 28, 2016

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Recently, gold has been trading downwards. As I expected, the price tested the level of $1,137.24 in a high volume. Both downward targets from yesterday has been met. Using the market profile, I found yesterday's point of control at the price of $1,136.80 on the 30M time frame. According to the 30M time frame, I found buying climax and trap upwards move in the background, which are a major sign of weakness. My advice is to watch for potential bearish opportunities due to massive climax in the background. Downward target is set at the price of $1,135.80.Anyway, if the price breaks the level of $1,144.00, gold may re-test the high at the level of $1,150.00.

Resistance levels:

R1: 1,141.00

R2: 1,142.80

R3: 1,145.90

Support levels:

S1: 1,134.90

S2: 1,133.00

S3: 1,130.00

Trading recommendations for today: watch for potential selling opportunities due to massive buying climax in the background.

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Technical analysis of USD/CHF for December 28, 2016

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Overview:

  • The USD/CHF pair continues to move upwards from the level of 1.0244. The USD/CHF pair didn't make any significant movements yesterday. There are no changes to our technical outlook. The bias remains bullish in the nearest term testing 1.0340 or higher. The pair rose from this level which coincides with a ratio of 61.8% Fibonacci retracement to a top around 1.0287. Today, the first support level is seen at 1.0244 followed by 1.0213, while daily resistance 1 lies at 1.0244.
  • According to the previous events, the USD/CHF pair is still trading between the levels of 1.0280 and 1.0343. On the one-hour chart, immediate resistance is seen at 1.0287, which coincides with a ratio of 78.6% Fibonacci retracement.
  • 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 (MA 100).
  • Consequently, if the pair is able to break out through the first resistance level of 1.0287, we will see it climbing towards the daily resistance at 1.0312 to test it. The market will indicate the bullish opportunity above the level of 1.0312 in order to reach the second target at 1.0343 and test the double top.
  • On the contrary, if a breakout takes place at the support level of 1.0244, then this scenario may become invalidated. Remember to place a stop loss; it should be set below the second support of 1.0225.
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Technical analysis of NZD/USD for December 28, 2016

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Overview:

  • At the moment, the NZD/USD pair movement is mixed as it is trading in a narrow sideways channel. The market demonstrates signs of instability because it is moving between the levels of 0.6861 and 0.6948. Importantly, the pair opened below the daily pivot point (0.6948) yesterday. It continued to move downwards from the level of 0.6948 to the bottom around 0.6861. Today, the first resistance level is seen at 0.6948 followed by 0.7002 and 0.7048, while daily support 1 lies at 0.6830. Furthermore, the moving average (100) starts signaling a downward trend. Therefore, the market is indicating a bearish opportunity below 0.6948. So it will be good to sell at 0.6948 with the first target at the 0.6861 level which represents the double bottom on the H4 chart. It will also call for a downtrend to continue towards 0.6830. The strong daily support is seen at the 0.6830 mark. According to the previous events, we expect the NZD/USD pair to trade between 0.6948 and 0.6830 in coming hours. The price area of 0.6948 remains a significant resistance zone. Thus, the trend is still bearish as long as the level of 0.6950 is not broken. On the contrary, in case a reversal takes place and the NZD/USD pair breaks through the resistance level of 0.6948, then a stop loss should be placed at 0.7048.
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Elliott wave analysis of EUR/NZD for December 28, 2016

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Wave summary:

There really is not much news to add here.

We are still looking for a deeper correction in wave [ii] closer to 1.4964 before the next impulse rally higher towards 1.5836 should be expected. The ongoing correction from 1.5235 seems to take on the shape of a double zig-zag correction. The first minor zig-zag completed at 1.5047 and has been followed by a small x-wave to 1.5191 and the second zig-zag lower is now unfolding. As a minimum a break below 1.5047 will be expected.

Trading recommendation:

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

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Elliott wave analysis of EUR/JPY for December 28, 2016

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Wave summary:

The failure to break below support at 122.01 and the following break above resistance at 122.78 shifted the count in favor of the running triangle. This triangle consolidation is now complete and wave (v) higher toward 126.54 is now unfolding.

Short-term support is seen at 122.99 and then at 122.63, but we doubt that the later will be tested before the next rally higher to 124.09 and then to 126.54.

Trading recommendation: Our stop+revers at 122.85 was hit and we are now long EUR from 122.85. Stop will be placed at 122.10 and take profit+revers will be placed at 126.25.

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Technical analysis of USD/JPY for December 28, 2016

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USD/JPY is expected to trade with bullish bias above 117.35. The pair is trading above its ascending 50-period moving average. Technically, the relative strength index is above its neutrality level at 50. Besides, a support base at 117.35 has formed and has allowed for a temporary stabilisation which should limit the downside potential. To sum up, as long as 117.35 is support, expect a new rise toward 117.90, if it breaks above, look for a further advance toward 118.05.

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 117.90 and the second one at 118.05. In the alternative scenario, short positions are recommended with the first target at 117.15 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 117.00. The pivot point lies at 117.35.

Resistance levels: 117.90, 118.05, 118.35

Support levels: 117.15, 117.00, 116.65

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Technical analysis of USD/CHF for December 28, 2016

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USD/CHF is expected to trade with bearish bias. The pair is trading below its 20-period and 50-period moving averages. The relative strength index is bearish and below its neutrality level at 50. Nevertheless, 1.0295 is playing a key resisance role which should limit the downside potential. Even though a continuation of consolidation cannot be ruled out, its extent should be limited. The Conference Board posted its Consumer Confidence Index at 113.7 in December, the highest since August 2001, higher than 109.0 expected and 109.4 in November.

Therefore, as long as 1.0295 is resistance, expect a new decline toward 1.0260, if it breaks below, look for a further downside toward 1.0240 is possible.

Resistance levels: 1.0315, 1.0330, 1.0375

Support levels: 1.0260, 1.0240, 1.0210

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Technical analysis of NZD/USD for December 28, 2016

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NZD/USD is expected to trade with bullish bias above 0.6890. The pair stays above its horizontal support at 0.6890, and lacks downward momentum. Even though a continuation of the consolidation in current stage cannot be ruled out, its extent should be limited. Thus, as long as 0.6890 is not broken below, a further bounce is expected with 0.6935 and 0.6945 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 0.6935 and the second one at 0.6945. In the alternative scenario, short positions are recommended with the first target at 0.6880 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 0.6870. The pivot point lies at 0.6895.

Resistance levels: 06935, 0.6945, 0.6965

Support levels: 0.6880, 0.6870, 0.6855

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Technical analysis of GBP/JPY for December 28, 2016

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GBP/JPY is expected to continue its rebound. The pair is supported by its rising 50-period moving average and has crossed above its 20-period moving average. Meanwhile the relative strength index still stays above 50. As long as 144.10 is not broken, further bounces are preferred with 144.95 and 145.30 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 144.95 and the second one at 145.30. In the alternative scenario, short positions are recommended with the first target at 143.90 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 143.50. The pivot point lies at 144.10.

Resistance levels: 144.95, 145.30, 145.50

Support levels: 143.90,143.50, 143.20

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Daily analysis of major pairs for December 28, 2016

EUR/USD: Since the middle of last week, this currency trading instrument has been moving sideways. There is a clean Bearish Confirmation Pattern in the market, and thus, the outlook on the trading instrument remains bearish. The current sideways movement is only a pause in the journey downwards, for the downward movement is expected to continue.

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USD/CHF: The USD/CHF merely moved sideways on Tuesday – and the bias on the market remains bullish. The price action and the indicators in the 4-hour chart reveal that when momentum returns to the market, it would most probably favor the bulls. The targets for the week remain at the resistance levels at 1.0300 and 1.0350.

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GBP/USD: The bias on the GBP/USD remains bearish, though price has moved sideways so far this week. When momentum returns to the market, it would most probably be in favor of bears. The accumulation territories at 1.2250 and 1.2200 are the next target for this week.

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USD/JPY: Price on this pair has moved only sideways this week – till now. The EMA 11 is above the EMA 56, and the RSI period 14 is above the level 50. It is more likely that price would be going upwards when a directional movement begins to happen (to emphasize the current bullish outlook). The next immediate target is the supply level at 118.00.

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EUR/JPY: There is a possibility of a bullish movement on the EUR/JPY cross. In spite of the recent flat movement, the overall outlook on the market is bullish, which would hold as long as price does not go below the demand zone at 120.50, which would require a strong bearish pressure anyway.

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Technical analysis of EUR/USD for Dec 28, 2016

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When the European market opens, there is no Economic Data will be released for today, but the US will release the economic data, such as Pending Home Sales m/m, so, amid the reports, EUR/USD will move in a low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Breakout BUY Level: 1.0514.

Strong Resistance:1.0507.

Original Resistance: 1.0497.

Inner Sell Area: 1.0487.

Target Inner Area: 1.0462.

Inner Buy Area: 1.0437.

Original Support: 1.0427.

Strong Support: 1.0417.

Breakout SELL Level: 1.0410.

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 28, 2016

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In Asia, Japan will release the Retail Sales y/y, Prelim Industrial Production m/m and the US will release some Economic Data, such as Pending Home Sales m/m. So, there is a probability the USD/JPY will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Resistance. 3: 118.28.

Resistance. 2: 118.05.

Resistance. 1: 117.82.

Support. 1: 117.53.

Support. 2: 117.30.

Support. 3: 117.07

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 28, 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 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.

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USD/CAD intraday technical levels and trading recommendations for December 28, 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, 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.

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Intraday technical levels and trading recommendations for GBP/USD for December 28, 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 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 1.2080. That is why, a bullish pullback was executed toward 1.2700-1.2750.

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.

This SELL entry should be monitored cautiously as the ascending bottoms around the price levels of 1.2120 and 1.2320 may apply significant bullish pressure against 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 (1.2300-1.2260) where a previous top was recently established on October 19. Hence, bullish rejection should be anticipated around the current price levels.

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Intraday technical levels and trading recommendations for EUR/USD for December 28, 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 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.

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The long-term outlook for the EUR/USD pair remains bearish as the monthly chart illustrates. Bearish persistence below 1.0575 is needed to pursue 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.

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.

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Daily analysis of USDX for December 28, 2016

USDX remains unchanged inside the current price action, as it approaches the end of the year. The 200 SMA at H1 chart is providing the path in the short-term, as the index keeps the bullish tone above that area. We can expect a slight decline toward the support zone of 102.56, but the overall target is pointing to the upside, targeting the 103.98 level.

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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.

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Daily analysis of GBP/USD for December 28, 2016

GBP/USD is still supported by the 1.2250 and it's expected to remain within that tone across the board, at least during the last week of the year. The resistance zone of 1.2317 will play a key role ahead of January, as it could bring some barrier to the bulls in the first week of trading on 2017. If a breakout happens over there, it can cling to test the 1.2390 area.

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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.

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Technical analysis of USD/JPY for December 27, 2016

The pair 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).

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

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

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Global macro overview for 27/12/2016

Global macro overview for 27/12/2016:

The spike in gold overnight might be attributed to the Bundesbank (BUBA) news. The Reuters news agency claims that Bundesbank head Jens Weidemann brings back to Germany more gold than planned. It looks like BUBA moves toward hoarding half of the world's second-largest reserve at home (currently they have around 3,381 tons of gold as reserves). According to German newspaper Bild, around 1,600 tons of Germany's gold reserves are now in the country, and that figure is to rise to 1,700 tons by 2020. In conclusion, not only China is stocking up gold as usual, but now another major player joined the game. If this demand level is sustained, we might see even higher prices of gold during next years.

Let us now take a look at the gold technical picture on the daily time frame. The market has almost retraced 78% of the previous swing up (78% Fibo is at the level of 1116.56) and the price starts to diverge from the momentum oscillator. Any breakout above 1,150 will be considered as bullish (temporary), but a sustained breakout above 1,200 is a trend change. The next support is seen at the level of 1,112.78 and the next resistance is seen at the level of 1,150.00.

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Technical analysis of AUD/JPY for December 27, 2016

The price is now approaching major support at 83.74 (Fibonacci retracement, Fibonacci projection, horizontal support) where we expect a bounce from 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.

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Daily analysis of EUR/JPY for December 27, 2016

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Overview

The EUR/JPY price repeated negative closes below the bearish channel's resistance at 123.85 supporting expected negative attack formation. Therefore, we will keep waiting for the price to reach 121.60 and break it, which will lead the pair to targets that begin at 120.00. Stochastic attempts to support the negative expectations by its stability below 50 levels, which provide new negative momentum that increases the chances of forming bearish waves until achieving the suggested targets. The expected trading range for today is between 123.30 and 121.60.

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Daily analysis of USD/JPY for December 27, 2016

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Overview

The EMA50 forms a good intraday support base that caps the downside of the USD/JPY pair, which continues fluctuating near the minor bearish channel's resistance shown on the chart. Stochastic shows positive signals now, which supports the chances of breaching the mentioned resistance at 117.65 followed by activating the positive effect of the bullish flag pattern that we expect to help the price breach 118.65 levels to head towards our next main target at 120.00. Therefore, our bullish overview sis till valid and active conditioned by the price stability above 116.55 levels. A break of this level will push the price to head towards 113.97 before any new positive attempt. The expected trading range for today is between the 116.55 support and the 118.65 resistance.

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Daily analysis of GBP/JPY for December 27, 2016

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Overview

The GBP/JPY price managed to reach the target at 143.25 in the last trading to form a good barrier against the negative attack, which forces it to form an intraday rebound as appears in the image, the upcoming scenario depends on the strength of this level, which forms a new support level, and its stability makes us to expect the beginning of the price rally to the upside to target 146.60 level. While the price decline below the current support and providing negative close will support the bearish correctional attempts to expect reaching 140.35 to form the main target in the bearish attempts. The expected trading range for today is between 143.25 and 146.60

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USD/CHF remains 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 the price down.

Sell below 1.0268. Set stop loss at 1.0296 and take profit at 1.0200.

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EUR/USD remains 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 of trend and is held up by our ascending support line.

Buy above 1.0418. Set stop loss at 1.0347 and take profit at 1.0510.

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