EUR/JPY fundamental analysis for February 28, 2017

EUR/JPY has recently rejected from the resistance 119.40 and the price is currently in bearish bias. Today EUR had some economic events, such as French Consumer Spending which is forecasted to be 0.6 and it was unchanged after published as well as French Prelim GDP was also unchanged with the forecast at 0.4%. French prelim CPI had some negative report at 0.1% which was forecasted to be 0.4% and Italian Prelim CPI was positive at 0.3% which was forecasted to be 0.1%. On the other hand, JPY had Prelim Industrial Production report which was forecasted to be 0.4% but published at -0.8% and Retail Sales report was forecasted at 0.9%, published at 1.0%. Despite the negative news of JPY industrial production EUR was unable to provide pressure on JPY. Daily close today will decide the further moves in this pair.

Now let us look at the technical view, the price has rejected from the 119.40 resistance and some bearish pressure is observed in this pair. As of recent bullish pressure it is not a good time for selling in this pressure but if the price clears the nearest support level 118.20 then it is expected that the bearish bias will continue, till then the price is expected to fluctuate between the area of 118.20-119.40.

analytics58b59523c11c1.jpg

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

GBP/USD fundamental analysis for February 28, 2017

GBP/USD is still residing inside the corrective structure between 1.2550-1.2416. Today GBP has had such economic event as MPC Member – Designate Hogg Speech and it was good for GBP as further monetary policies were discussed. It influenced the market as it bounced off from the support 1.2416. Today USD also had high-impact news of Prelim GDP report which was forecasted to be 2.1% but published at 1.9%. The negative report of USD helped GBP to bounce off from the support and Upcoming US CB Consumer Confidence is forecasted to be 111.3 and the news is expected to bring some volatility in the market.

Now let us look at the technical view, currently the price has bounced from the support area of 1.2385-1.2416. As of GBP already getting some bullish pressure from the support it is expected that the price is going to move up towards the resistance at 1.2550 soon. On the other hand, if the price breaks below the support level 1.2385 then the corrective structure will break and we will change our bias to bearish.

analytics58b5903100b47.jpg

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

USD/CAD intraday technical levels and trading recommendations for February 28, 2017

analytics58b57b76ead60.pnganalytics58b57b7fcbc79.png

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 (the lower limit of the depicted channel) where bullish rejection was expressed as anticipated.

A bullish breakout above 1.3360 (50% Fibonacci level) was expected to allow a further advance toward 1.3700-1.3750 (the upper limit of the depicted channel). However, significant bearish rejection was expressed around 1.3580 (recent established top).

The price level of 1.3300 (50% Fibonacci Level) failed to provide enough support for the recent bearish pullback.

That is why the recent bearish pullback toward 1.2970 (61.8% Fibonacci level) offered a valid BUY entry as expected in the previous articles.

This week, a bullish breakout above 1.3300 (50% Fibonacci Level) is needed to enhance bullish advance towards 1.3440 and 1.3550. Otherwise, the USD/CAD pair remains trapped within the current consolidation range (1.2970-1.3300).

On the other hand, DAILY closure below 1.2970 (61.8% Fibonacci level) will confirm a double-top pattern with projected bearish targets at 1.2860, 1.2730, and 1.2600.

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

Daily analysis of Gold for February 28, 2017

GOLDH4.png

Overview

Gold keeps fluctuating at the critical support at 1,249.94. Notice that stochastic approaches from confirming the positive overlap on the 4H time frame, to support the continuation of the bullish trend expectations for today. That depends on the stability above the mentioned support, waiting for targeting 1,285.00 level mainly. Note that breaking 1,249.94 will turn the intraday track to the downside to test 1,240.00 then 1,230.00 levels before it returns to resume the bullish trend again. The expected trading range for today is between 1,240.00 support and 1,270.00 resistance.

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

Daily analysis of Silver for February 28, 2017

SILVERH4.png

Overview

Silver price has not shown any strong move since morning. It keeps fluctuating near 18.30 level. Therefore, there is no change on our overall bullish expectations, which depend on the stability above the mentioned level and above 18.10, supported by stochastic and the EMA50 positivity. We remind you that our main targets begin at 18.85 and extend to 19.38. The expected trading range for today is between 18.10 support and 18.80 resistance.

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

Trading plan for EUR/USD and USD/JPY for February 28, 2017

analytics58b5652069c30.jpg

Technical outlook:

EUR/USD, 4H chart has been depicted here with probable wave counts for a medium-term outlook. The pair is showing resilience at the moment and not breaking below 1.0490 level. The most probable wave structure indicates that the pair is into its wave 3 drop, which should subdivide into 5 waves. Out of which waves i and ii have already taken shape and EUR/USD is ready to plunge lower towards 1.0300 and further. As an alternate though, the pair can produce an extended flat where wave ii terminates close to 1.0700 levels as depicted above. In either cases, watch out for EUR/USD dropping lower during New York live today or tomorrow. Immediate resistance is set at 1.0680 level for now, while support is seen at 1.0490 levels respectively. Also note that the pair is testing the resistance trend line and Fibonacci 0.618 resistance levels respectively.

Trading plan:

Please remain short now and also look to add further on rallies towards 1.0700, stop at 1.0850, target is 1.0000.

USD/JPY chart setups:

analytics58b567d2ad102.jpg

Technical outlook:

The 4H chart has been depicted to understand its intermediary wave counts. Since early February 2017, the pair has produced an impulse, wave 1, sub divided into 5 waves. Furthermore, a corrective A-B-C has followed as wave 2 and the pair has bounced off the Fibonacci 0.786 support as seen here. If this wave count holds true, the prices should continue rallying into wave 3 and unfold into 5 waves. Please note that unless the prices stay above 111.60 level, high probability remains for the bulls to take back control and push the prices towards 117.00 level at least. A break above 113.00 level is required to confirm that a meaningful bottom is in place. Immediate resistance is seen at 113.60 level, while support is at 111.60 level respectively. Buying on dips remains a safe trading strategy.

Trading plan:

Please remain long now, stop at 111.60 level, target is at 117.00 level.

Fundamental outlook:

A series of important fundamental data lined up to be coming out in the New Your Session promises to be a volatile day.

USD Gross Domestic Product (Annual), forecast 2.1%, USD GDP Price Index at 2.1%, also Advance Goods Trade Balance at -$66.0b scheduled at 08:30 am EST. Also Trump's speech today to the Congress is very important to set the trends for March 2017.

Good luck!

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

Technical analysis of USD/JPY for February 28, 2017

USDJPYM30.png

USD/JPY intraday is under pressure. The pair broke below its 20-period moving average, and is now challenging its support of the 50-period one. In addition, the relative strength index is bearish below its neutrality level at 50 and calls for a further drop. Additionally, 112.90 represents a significant key resistance level, which should limit the upside potential.

As long as this key level is not surpassed, a new decline to 111.90 and even to 111.60 is likely to occur.

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 111.90. A break below this target will move the pair further downwards to 111.60. The pivot point stands at 112.90. 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 113.30 and the second one at 113.60.

Resistance levels: 113.30, 113.60, and 113.95

Support levels: 111.90, 111.60, and 111.10

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

Technical analysis of USD/CHF for February 28, 2017

USDCHFM30.png

USD/CHF is expected to trade with bullish bias. The pair managed to break above its falling trendline, which should confirm a bullish reversal. The 20-period moving average is turning up now, and should continue to push the prices higher. Additionally, the relative strength index stands firmly above its neutrality level at 50, and is displaying strong bullish momentum.

On the economic data front, durable goods orders increased 1.8% in January in a preliminary estimate (estimated +1.6%) from a decrease of 0.8% in the previous month. Separately, pending home sales fell 2.8% in January (forecasted +0.6%) compared to an improvement of 0.8% in December. In other news, the Dallas Federal Manufacturing Outlook increased to 24.5 in February (estimated 19.4) from 22.1 in the prior month.

To sum up, above 1.0015, expect a further rise to 1.0090, and even to 1.0115 in extension.

Resistance levels: 1.0090, 1.0115, and 1.0140

Support levels: 0.9975, 0.9950, and 0.9925

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

Technical analysis of NZD/USD for February 28, 2017

NZDUSDM30.png

NZD/USD is under pressure. The pair broke below the bearish trendline (since Feb 21) as well as its 20-period and 50-period moving averages, which confirmed a negative outlook. In addition, the 20-period moving average is about to cross below the 50-period one. The relative strength index also broke below the rising trendline, calling for a further drop.

Hence, as long as 0.7210 holds on the upside, expect a further drop to 0.7170 and even to 0.7145 in extension.

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 0.7170. A break below this target will move the pair further downwards to 0.7145. The pivot point stands at 0.7210. 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 0.7225 and the second one at 0.7250.

Resistance levels: 0.7225, 0.7250, and 0.7280

Support levels: 0.7170, 0.7145, and 0.7100

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

Gold analysis for February 28, 2017

analytics58b55fd1b3c91.png

Recently,

Recently, Gold has been trading sideways at the price of $1,253.00. According to the 15M time frame, I found unconfirmed hidden bullish divergence, which is a sign that Gold may go higher. To confirm bullish divergence I would like to see breakout of $1,254.50 (pivotal point). My advice is to watch for potential buying opportunities. The first upward take profit is set at the price of $1,263.45.

Resistance levels:

R1: $1,261.80

R2: $1,264.80

R3: $1,269.80

Support levels:

S1: $1,252.00

S2: $1,249.00

S3: $1,244.00

Trading recommendations for today: watch for potential buying opportunities.

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

Technical analysis of GBP/JPY for February 28, 2017

GBPJPYM30.png

GBP/JPY is under pressure. The pair retreated from the key resistance level at 1.2475, and broke below the 20-period moving average. The relative strength index has reversed down, calling for a further drop.

Therefore, as long as 140.40 holds on the upside, look for a further drop to 139.35 and even to 138.95 as possible.

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 139.35. A break below this target will move the pair further downwards to 138.95. The pivot point stands at 140.40. 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 141.00 and the second one at 141.30.

Resistance levels: 141.00, 141.30, and 142.00

Support levels: 139.35,138.65, and 138.65

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

NZD/USD intraday technical levels and trading recommendations for February 28, 2017

analytics58b55d7d329be.png

On December 16, the price level of 0.6990 failed to apply enough bullish pressure.

Instead of that, bearish movement continued toward the lower limit of the depicted BUY zone (0.6860) which provided significant bullish rejection on December 23.

The NZD/USD pair was trapped within the depicted price range (0.6860-0.6990) until a bullish breakout occurred.

A bullish breakout above 0.7000 allowed the pair to head toward the price level of 0.7100 (Key level) which failed to provide sufficient bearish pressure on the pair.

Bullish persistence above 0.7100 allowed further bullish advance toward 0.7250-0.7350 (Sell-Zone) where bearish price action should be expected.

Bearish persistence below 0.7250 is needed to allow further bearish decline toward 0.7100 (note the previous bearish DAILY candlesticks expressed within the SELL-Zone).

On the other hand, any bearish pullback toward 0.7100 should be watched for possible bullish price action. Otherwise, bearish persistence below 0.7100 will probably allow further bearish fall toward 0.6960.

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

Intraday technical levels and trading recommendations for GBP/USD for February 28, 2017

analytics58b55ca6dfdad.pnganalytics58b55cbc86481.png

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).

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 was expected near 1.2020.

On October 25, bullish recovery was initiated around the price level of 1.2080. That is why a bullish pullback was executed toward 1.2700-1.2750.

Risky traders considered this bullish pullback toward the price zone of 1.2700-1.2750 to be a valid SELL entry. All T/P levels were successfully reached.

On January 16, a bullish engulfing candlestick was expressed around the demand level of 1.2000. That is why another bullish breakout above 1.2430 was initiated.

The next bullish target is located around 1.2750 where bearish rejection should be expected.

On the other hand, the next bearish destination would be located around 1.1200 when bearish momentum is resumed.

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

Intraday technical levels and trading recommendations for EUR/USD for February 28, 2017

analytics58b55c5c56dbc.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, the EUR/USD bears challenged the monthly demand level around 1.0570 which had been previously reached in August 1997.

Later in April 2015, a strong bullish recovery was observed around the mentioned demand level.

However, next monthly candlesticks (September, October, and November) reflected a strong bearish rejection around the area of 1.1400-1.1500.

In the longer term, the level of 0.9450 remains a projected target if the current monthly candlestick achieves bearish closure below the depicted monthly demand level of 1.0570.

Otherwise, the EUR/USD pair remains trapped within the depicted consolidation range (1.0570-1.1400).

analytics58b55c64e0425.png

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.

On November 14, bearish persistence below 1.0825 (Key-Level 2) allowed further decline toward 1.0570 (demand level) where evident bullish rejection was expressed on November 24.

Shortly after, the Fibonacci Level 50% (1.0825) constituted a recent supply level which offered a valid SELL entry on December 8.

Bearish persistence below the depicted demand level (1.0570) was expected to allow further decline toward 1.0220. However, significant bullish recovery was expressed around the price level of 1.0340 on January 3.

Bullish persistence above 1.0600 allowed further advance toward 1.0825-1.0850 (Fibonacci Level 50%) where bearish rejection and a valid SELL entry were anticipated.

At the moment, the price level of 1.0570-1.0500 stands as a prominent demand zone to be watched for a valid bullish entry (note the bullish Head & Shoulders Pattern with the initial target at 1.0800).

Otherwise, further decline can be executed toward 1.0400 if the current break below 1.0570 is maintained.

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

EUR/USD analysis for February 28, 2017

analytics58b55b9e20165.png

Recently, the EUR/USD pair has been trading upwards. The price tested the level 1.0605. According to the 1H time frame, I found broken downward trendline in the background and successful changing in trend dynamic from bearish to bullish. The price is making higher highs and higher lows, which is good sign of strength. My advice is to watch for potential buying opportunties. The first target is set at the price of 1.0675.

Resistance levels:

R1: 1.0630

R2: 1.0675

R3: 1.0715

Support levels:

S1: 1.0545

S2: 1.0505

S3: 1.0465

Trading recommendations for today: watch for potential buying opportunities.

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

Trading plan for 28/02/2017

Trading plan for 28/02/2017:

On Tuesday 28th of February there will not be many economic releases during the European and American trading sessions, but there are few news releases that will catch the investors' attention: GDP Second Release at 01:30 pm GMT, Chicago Purchasing Manager Index data release at 02:45 pm GMT and CB Consumer Confidence data release at 03:00 pm GMT. All come from the US.

US Dollar Index analysis for 28/02/2017:

In today's revised data, the US economic growth should be still on track to tick higher in the fourth quarter. If that turns out to be accurate, a firmer increase will boost confidence that output will accelerate in this year's first quarter. The initial estimate for Q4 growth currently stands at a quarterly increase of 1.9%, which is a significant slowdown from Q3's strong 3.5% advance (seasonally adjusted annual rate). The market participants are expecting a 2.1% advance in Q4.

After the Donald Trump election, the mood increased mainly due to the promises made during the presidential campaign. Today's monthly report on the Conference Board's Consumer Confidence Index is not expected to decrease significantly. The market participants expect a figure of 111.1 points, while the last reading was at the level of 111.8 points, which looks like a fractional retreat in CCI in February and that is still closed to December's 15-year high.

Let's now take a look at the US Dollar index technical picture at the H4 time frame. There was a second attempt to break out above the technical resistance at the level of 101.29, but so far it failed. Nevertheless, the bulls are still trying to violate this level as no new low was made since then. The trigger to rally might come when the data will deliver better than expected figures. In that case, the market might break out above 101.29 resistance and head higher towards the next technical resistance at the level of 101.77. On the other hand, if the data will no significantly beat the expectations, then the market will still be trading below the golden trendline and the bear camp will try to make another low, below the current technical support at the level of 100.66.

analytics58b53e64e0ca4.jpg

Market snapshot - Copper still in a corrective cycle on 28/02/2017

After a gap up towards the level of 2.800 the Copper futures price has retraced almost 100% of the move up and even the near-term golden trendline was tested around the level of 2.660.The price is still moving inside of the dashed blue parallel channel and the current market conditions at the H4 time frame chart looks oversold. To break out of the channel, the price must break out above the technical resistance at the level of 2.690 and head towards the next resistance at the level of 2.762. Any failure at this level would result in a full reversal and a very possible test of the level of 2.638 and a break out lower towards the next support at the level of 2.613.

analytics58b53e6fcd7bc.jpg

Market snapshot - SP500 closes at another all-time high on 28/02/2017

The SP500 made another higher high yesterday at the level of 2371.54 points and so did SP500 EFT called SPY, that made a higher high at the level of 237.28 points. This series of a consecutive higher high and higher low is a textbook example of a bull trend, so any attempts to short this market might end up in losses. As long as the level of 235.17 is not clearly violated (a daily candle closure below this level) there is no reason to go short yet. Nevertheless, the market conditions are starting to look overstretched to the upside, so it is worth to keep an eye on this market for any sighs of a corrective pull-back.

analytics58b53e79e4f5d.jpg

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

Technical analysis of USD/CHF for February 28, 2017

USDCHFH1.png

Overview:

  • The USD/CHF pair continues to move downwards from the level of 1.0095. The pair dropped from the level of 1.0095 to the bottom around 1.0040. Today, the first resistance level is seen at 1.0095 followed by 1.0115, while daily support 1 is seen at 1.0034. According to the previous events, the USD/CHF pair is still moving between the levels of 1.0095 and 1.0010; for that we expect a range of 85 pips (1.0095 - 1.0010) at least. If the USD/CHF pair fails to break through the resistance level of 1.0095, the market will decline further to 1.0034. This would suggest a bearish market because the RSI indicator is still in a positive area and does not show any trend-reversal signs. The pair is expected to drop lower towards at least 1.0034 with a view to test the daily pivot point and continues towards the next objective of 1.0010. On the contrary, if a breakout takes place at the resistance level of 1.0095 (major resistance), then this scenario may become invalidated.

Technical levels:

  • Resistance 3: 1.0115
  • Resistance 2: 1.0095
  • Resistance 1: 1.0059
  • Pivot: 1.0034
  • Support 1: 1.0010
  • Support 2: 0.9979
  • Support 3: 0.9954
The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of NZD/USD for February 28, 2017

NZDUSDH1.png

Overview:

  • The NZD/USD pair broke resistance which turned to strong support at the level of 0.7174 yesterday. The level of 0.7174 is expected to act as the major support today. From this point, we expect the NZD/USD pair to continue moving in a bullish trend from the support levels of 0.7174 and 0.7157. Currently, the price is moving in a bullish channel. This is confirmed by the RSI indicator signaling that we are still in the bullish trending market. Today, the first support level is seen at 0.7174 followed by 0.7157, while daily resistance 1 is found at 0.7201. Besides, the level of 0.7188 represents a weekly pivot point for that it is acting as the major resistance. Hence, the NZD/USD pair continues to move upwards from the level of 0.7188. Amid the previous events, the pair is still in a uptrend, because the NZD/USD pair is trading in a bullish trend from the new support line of 0.7174 towards the first resistance level at 0.7201 in order to test it. If the pair succeeds to pass through the level of 0.7174. Generally, the market will indicate a bullish opportunity above the level of 0.7201. However, if a breakout happens at the support level of 0.7157, then this scenario may be invalidated.
The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of USDX for February 28, 2017

The Dollar index is trading sideways between important resistance of 101.80 and support at 100.40. This indecision is very clearly portrayed in the weekly charts. We are at a very critical junction. Soon we will see if the bullish scenario for new highs gains more chances of success or the bearish scenario of the Head and Shoulders pattern.

analytics58b53282c7b33.png

Blue line - resistance

Red line - support

The Dollar index is trading around the 4-hour Ichimoku cloud. This confirms the indecisiveness. Traders need to be patient. Short-term support is at 100.70 and a break below it will increase the chances of breaking 100.40. Resistance is at 101.80.

analytics58b532ce5719f.png

Black line - neckline support

Green line - long-term support trendline

The weekly chart remains right below the tenkan-sen (red line indicator). The inability to break above it is not a good sign and increases the chances that we are forming the right hand shoulder of a bearish Head and Shoulders pattern with 99.25 as the neckline and 95 as the target if the neckline breaks. A break however above 102 on a weekly basis will be a bullish sign confirming the low at 99.25 and the target of 105-110.

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

Technical analysis of gold for February 28, 2017

Despite the new high yesterday gold was weak and closed below $1,255 after heavy selling pressures. Despite the pullback the price remains in an uptrend. Even a pullback towards $1,245 will not harm our bullish view and target of $1,280-$1,320.

analytics58b531366cc1f.jpg

Black line - resistance (broken)

Blue line - long-term trendline support

Gold is trading above the 4-hour Ichimoku cloud support. The price has broken above resistance at $1,245 and we cannot rule out a back test of that area which is now support. The price has broken below the tenkan-sen (red line indicator). Short-term resistance is at $1,257 and support is at $1,247.

analytics58b53190371c4.jpg

Black line - long-term resistance

Blue line - long-term support

The price is trading above the blue trendline support and targets the upper cloud boundary and the black trendline resistance at $1,300. The price is above the weekly kijun-sen (yellow line indicator). Short-term trend is bullish. Oscillators have no worrying signs yet and still are not in overbought levels. Upside move in Gold is far from over.

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

Global macro overview for 28/02/2017

Global macro overview for 28/02/2017:

The US Durable Goods Orders had surprised the market participants printing better than expected figures. According to the Commerce Department, total Durable Goods Orders have increased by 1.8% in the past month compared with a downwardly revised 0.8% reading registered in December (versus 1.6% expected). The main reason behind the advance was a significant increase in orders for transportation goods which surged 6.0% in January. Orders excluding aircraft fell 0.2%, missing expectations for a 0.5% rise on the month. On the other hand, there were interesting decreases in orders for general electrical equipment (home appliances and components, computers and electronic products). In conclusion, this strong report followed the previous good data from consumer spending and home sales indicating, that the US economy is steady growing in a step-by-step fashion.

Let's now take a look at the EUR/JPY technical picture at the H1 time frame. Despite the strong rally, the bulls did not manage to break out above the 119.49 technical resistance and the market reversed from the overbought conditions again. Currently, the price is trading at the old dashed black trendline support, but it looks like a break out lower is just a matter of time. However, the most important technical support is still the gray rectangle zone between the levels of 118.22 - 118.48. Sustained break out below would suggest more downward price action ahead.

analytics58b530fbe5e6c.jpg

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

Global macro overview for 28/02/2017

Global macro overview for 28/02/2017:

Two interesting remarks from the US hit the newswires overnight. The first came from Dallas FED President Robert Kaplan, who reiterated his view that the FED should move "sooner rather than later". Recent FED speakers and US data are indicating that the probability of a rate hike is increasing. This view is being supported by CME FedWatch Tool, where we can see the odds for a rate hike are now at the level of 68% for .025% hike and 31% for 0.50% hike. The second important remark comes from the U.S. President Donald Trump, who is trying to increase the US military spending up to the "historic" level of $603 billion (a mere 3% more than $586 billion during Obama administration). Nevertheless, the plan came under fire from Democratic lawmakers, who said cuts being proposed to pay for the additional military spending would cripple important domestic programs such as environmental protection and education.

Let's now take a look at the EUR/USD technical picture at the H4 time frame. The false break out above the technical resistance at the level of 1.0617 was short lived and now the market gets back to the trading range between the levels of 1.0550 - 1.0617. The trading conditions look overbought and the growing bearish divergence is indicating that the technical support at the level of 1.0550 might be tested very soon.analytics58b52e0f6ff82.jpg

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

Daily analysis of major pairs for February 28, 2017

EUR/USD: The EUR/USD did not trend yesterday, though the outlook on the market is bearish. It is expected that price would continue going south this week, reaching the support lines at 1.0550, 1.0500 and 1.0450. The outlook on other EUR pairs is also bearish and they can trend seriously downwards this week or next.

1.png

USD/CHF: The USD/CHF is currently trading above the support level at 1.0050, now close to the resistance level at 1.0100. The outlook on the market is bullish and price could test additional resistance levels at 1.0150 and 1.0200 this week.

2.png

GBP/USD: The bias on the Cable is essentially flat. The market has consolidated for about three week, oscillating between the accumulation territory at 1.2300 and the distribution territory at 1.2600. Price must go above that distribution territory or below the accumulation territory before the current neutral bias can be considered as over. There is going to be an end to the neutrality before the end of March.

3.png

USD/JPY: There was a slight rally on this currency trading instrument on Monday – which happened in the context of a downtrend. A movement below the demand level at 112.00 would reinforce the existing bearish bias. A movement above the supply level at 114.00 would render the bearish bias invalid.

4.png

EUR/JPY: On February 27, the EUR/JPY also attempted to rally, and that can turn out to be a good opportunity to sell short again. There is a clean Bearish Confirmation Pattern in the 4-hour chart, and further dive is possible this week, which may take price toward the demand zones at 118.00, 117.50 and 116.50.

5.png

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

Technical analysis of EUR/USD for Feb 28, 2017

EURUSD.jpg

When the European market opens, some Economic Data will be released, such as Italian Prelim CPI m/m, French Prelim GDP q/q, French Prelim CPI m/m and French Consumer Spending m/m. The US will release the economic data, too, such as Richmond Manufacturing Index, CB Consumer Confidence, Chicago PMI, S&P/CS Composite-20 HPI y/y, Prelim Wholesale Inventories m/m, Prelim GDP Price Index q/q, Goods Trade Balance and Prelim GDP q/q, so, amid the reports, EUR/USD will move in a low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Breakout BUY Level: 1.0631.

Strong Resistance:1.0624.

Original Resistance: 1.0614.

Inner Sell Area: 1.0604.

Target Inner Area: 1.0579.

Inner Buy Area: 1.0554.

Original Support: 1.0544.

Strong Support: 1.0534.

Breakout SELL Level: 1.0527.

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 Feb 28, 2017

USDJPY.jpg

In Asia, Japan will release the Housing Starts y/y, Retail Sales y/y and Prelim Industrial Production m/m data. The US will release some Economic Data, such as Richmond Manufacturing Index, CB Consumer Confidence, Chicago PMI, S&P/CS Composite-20 HPI y/y, Prelim Wholesale Inventories m/m, Prelim GDP Price Index q/q, Goods Trade Balance and Prelim GDP q/q. So, there is a probability the USD/JPY will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Resistance. 3: 113.20.

Resistance. 2: 112.98.

Resistance. 1: 112.76.

Support. 1: 112.49.

Support. 2: 112.27.

Support. 3: 112.05.

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 February 28, 2017

The index is looking for a clear path in the short-term, as we're still seeing a sideways range well established around the 200 SMA zone at H1 chart. The support level of 100.44 is still of our interest to the downside, as it's the latest hurdle to reach the 99.84 level and it could deliver more USD broad weakness for the coming days. MACD indicator is supporting further slight corrective moves to the upside.

USDXH1.png

H1 chart's resistance levels: 101.43 / 102.38

H1 chart's support levels: 100.44 / 99.84

Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the USD Index breaks with a bearish candlestick; the support level is at 100.44, take profit is at 99.84 and stop loss is at 101.06.

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

Daily analysis of GBP/USD for February 28, 2017

Cable was capped by the 200 SMA during Monday's session, as the pair tried to recover above that moving average in order to cling up toward 1.2546, which is our first key resistance across the board in a technical view. However, as long as GBP/USD remains below that zone, we can expect a decline to test the 1.2360 area.

1488227628_GBPUSDH1.png

H1 chart's resistance levels: 1.2546 / 1.2633

H1 chart's support levels: 1.2414 / 1.2360

Trading recommendations for today: Based on the H1 chart, buy (long) orders only if the GBP/USD pair breaks a bullish candlestick; the resistance level is at 1.2546, take profit is at 1.2633 and stop loss is at 1.2462.

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

Daily Video Analysis on NZD/USD - 27th February 2017

Ask me questions here : http://forum.mt5.com/showthread.php?129814-Analytical-reviews-by-Dean-Leo-discussions-and-questions-to-the-author

We take an in-depth look on NZD/USD to see if there are any trading opportunities available for us to trade off and generate potential profits from. We explain clearly how we use a range of analytical approaches from Fibonacci retracements to Fibonacci extensions, price action and oscillators to determine such trading opportunities. Join us and learn how to find good trading opportunities through technical analysis!

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

Daily analysis of GBP/JPY for February 27, 2017

GBPJPYH4.png

Overview

The GBP/JPY price suffered from negative pressure in the last trading and declined below the extension of the support at 140.35 surpassing the moving average 55.Nevertheless, it is facing 38.2% Fibonacci correction level at 138.80, which makes the price confused. Expect the domination of the sideways bias if the mentioned levels are settled. Wait for providing new signal that assists to detect the true targets in the upcoming period. Breaking the current correction will confirm the dominant negativity in the upcoming trading. Expect targeting 137.40 level reaching to 135.90. Breaching of the moving average 55 will support regaining the bullish bias, return to prefer the dominant positivity that targets 142.40 level initially. The expected trading range for today is between 140.35 and 138.80.

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

Daily analysis of Gold for February 27, 2017

GOLDH4.png

Overview

The price of gold has not shown any strong movements since morning. It keeps fluctuating near 1,255.00 level, keeping its stability above the initial support at 1.249.94. Notice that stochastics is getting rid of its negativity gradually to head towards the oversold levels, forming positive factor that we wait to assist to push the price to resume the bullish trend. Therefore, the main bullish trend scenario will remain valid and active on the intraday and short-term basis conditioned by holding above 1,249.94. We remind you that our next main target is located at 1,285.00. The expected trading range for today is between 1,245.00 support and 1,270.00 resistance.

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

Daily analysis of Silver for February 27, 2017

SILVERH4.png

Overview

Silver succeeded to breach 18.30 level and is holding above it. It supports the continuation of the bullish trend scenario efficiently in the upcoming period. It opens the way towards targeting 19.38 level as a next main station. Therefore, the bullish trend will remain valid on the intraday and short-term basis, supported by the EMA50. Be aware that trading above 18.10 represents an important condition for the continuation of the suggested bullish wave. The expected trading range for today is between 18.10 support and 18.80 resistance.

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

USD/CHF reached our profit target perfectly, time to start selling

The price has reached our buying area, bounced perfectly and reached our profit target from Friday. Now we turn bearish below 1.0090 resistance (Fibonacci retracement, horizontal pullback resistance) where we expect a reaction from a drop to 1.0033 support (Fibonacci retracement, horizontal support).

Stochastic (21) is seeing strong resistance at the 94% level.

Sell below 1.0090. Stop loss is at 1.0118. Take profit is at 1.0033.

analytics58b441ddb283d.png

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

EUR/JPY: remain bullish for a push up

The price is approaching support at 118.22 (Fibonacci extension) where we expect to see a bounce to at least 120.23 resistance (Fibonacci retracement, horizontal overlap resistance).

Stochastic (21,5,3) is seeing strong support above the 5.4% level.

Buy above 118.22. Stop loss is at 117.45. Take profit is at 120.23.

analytics58b441ab2b52c.png

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

Elliott wave analysis of EUR/NZD for February 27, 2017

analytics58b4325fe657e.png

Wave summary:

There really is much news to add here. We are still looking for a break above important short-term resistance, seen at 1.4866 that will confirm that a low is in place, with the test of 1.4495 and a new long-term impulsive rally is developing for a rally towards 1.5282 and higher towards 1.5836 as the next upside targets.

Short-term support is seen at 1.4554, which ideally will protect the downside for the expected break above 1.4866.

R3: 1.4866

R2: 1.4805

R1: 1.4751

Pivot: 1.4705

S1: 1.4609

S2: 1.4554

S3: 1.4495

Trading recommendation:

Buy a break above resistance seen at 1.4866 and place stop at 1.4490.

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

Elliott wave analysis of EUR/JPY for February 27, 2017

analytics58b4311e814e4.png

Wave summary:

The corrective decline in wave (iv) have pushed even lower than expected. The low has been seen at 118.19 and it will take a break above resistance seen at 119.51 to indicate that the correction is complete, while a break above resistance at 119.86 will confirm that wave (v) has taken over for the final rally in wave (v) of 3 to above 124.09.

R3: 120.32

R2: 119.80

R1: 119.51

Pivot: 118.95

S1: 118.60

S2: 118.19

S3: 117.60

Trading recommendation:

Buy a break above 119.51 and place stop at 118.15.

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

Gold analysis for February 27, 2017

analytics58b41ddbe1693.png

Recently, gold has been trading sideways at the price of $1,254.70. According to the 4H time frame, I found inside bars formation, which is a sign of indecision. The price is trading in range between the price of $1,260.00 (resistance) and the price of $1,252.30 (support). Watch for breakout of support or resistance to confirm further direction. Downward targets are set at the price of $1,248.00, $1,246.20, and $1,237.00. The upward target is set at the price of $1,268.00.

Resistance levels:

R1: $1,258.00

R2: $1,258.80

R3: $1,259.90

Support levels:

S1: $1,255.70

S2: $1,255.00

S3: $1,253.90

Trading recommendations for today: watch for breakout of support or resistance to confirm further direction.

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

USD/JPY fundamental analysis for February 27, 2017

USD/JPY broke below the important support area 112.50 on Friday. Currently USD is seen to gain some strength over JPY. It would be interesting to see the impact the Core Durable Goods Order will have on the market today. The figure is forecasted to be unchanged at 0.5% and Pending Home Sales report which is expected to decrease from 1.6% to 1.1%. It is expected that this pair would be very volatile during the release of the USD events today. As of some speculation it is also found that there is no certainty in interest rate increase which might result in the weakness of USD in the future. On the other hand, tomorrow morning JPY has Prelim Industrial Production report which is expected to have a downfall from 0.7% to 0.4%, Retail Sales to increase from 0.7% to 0.1%, and Housing Starts is also expected to be decreased from 3.9% to 3.4%. This pair is expected to be very volatile and provide hints for upcoming moves after the economic events takes place.

Now let us look at the technical view, after breaking below the support 112.50, it has turned into resistance now. Recent resistance area lies at 112.50-113.30. It is expected that the price will retrace back towards 112.50 resistance level and from there if we see any bullish rejection or bearish pressure we will be looking forward to sell with a target towards recent support at 111.60 and later at 110.50-60. We will not change our bearish bias to bullish unless 113.30 is taken out with a daily close on the upside.

analytics58b414da28f58.jpg

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

USD/CAD intraday technical levels and trading recommendations for February 27, 2017

analytics58b41422097f6.pnganalytics58b4142df3096.png

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 (the lower limit of the depicted channel) where bullish rejection was expressed as anticipated.

A bullish breakout above 1.3360 (50% Fibonacci level) was expected to allow a further advance toward 1.3700-1.3750 (the upper limit of the depicted channel). However, significant bearish rejection was expressed around 1.3580 (recent established top).

The price level of 1.3300 (50% Fibonacci Level) failed to provide enough support for the recent bearish pullback.

That is why the recent bearish pullback toward 1.2970 (61.8% Fibonacci level) offered a valid BUY entry as expected in the previous articles.

This week, a bullish breakout above 1.3300 (50% Fibonacci Level) is needed to enhance bullish advance towards 1.3440 and 1.3550. Otherwise, the USD/CAD pair remains trapped within the current consolidation range (1.2970-1.3300).

On the other hand, DAILY closure below 1.2970 (61.8% Fibonacci level) will confirm a double-top pattern with projected bearish targets at 1.2860, 1.2730 and 1.2600

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