Analysis EUR/NZD for January 24, 2017

analytics588756f28e9c3.png

Recently, EUR/NZD has been trading downwards. The price tested the level of 1.4820. Using the Ichimoku on the 4H time frame, I found strong resistance levels at the price of 1.4860 (Kijun sen) and 1.4886 (Tenkan sen). The short-term trend is downward. Watch for selling opportunities on the pullback. First downward target is set at the price of 1.4770.

Fibonacci Pivot Points:

Resistance levels

R1: 1.4930

R2: 1.4950

R3: 1.4980

Support levels:

S1: 1.4860

S2: 1.4840

S3: 1.4800

Trading recommendations for today: watch for potential selling opportunities.

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

Gold analysis for January 24, 2017

analytics58874ed518142.png

analytics58874ee24efcd.png

Recently, gold has been trading sideways at the price of $1,213.00. In the Daily time frame and using the Ichimoku cloud, I found that price is in the Ichimoku Cloud (equilibrium). The trend according to the daily time frame is neutral to bearish. According to the 30M time frame, I found potential double top formation and bearish divergence on Moving Average Oscilator, which is a sign of weakness. Anyway, to confirm this view price should break the level of $1,209.30. If the price breaks the level of $1,209.30, Gold may visit the level of $1,199.00 - $1,196.00.

Resistance levels:

R1: 1,215.75

R2: 1,216.50

R3: 1,219.35

Support levels:

S1: 1,212.15

S2: 1,209.30

S3: 1,208.50

Trading recommendations for today: Watch for potential selling opportunities.

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

Technical analysis of USD/JPY for January 24, 2017

USDJPYM30.png

USD/JPY is expected to trade with a bullish bias. The pair recorded a succession of higher tops and higher bottoms since Jan 20, which confirms the bullish scenario. The upward momentum is further reinforced by its rising 20-period and 50-period moving averages, which are playing support roles and maintain the upside bias. Moreover, the relative strength index is staying firmly above its neutrality level at 50 and lacks downward momentum.

Hence, as long as 112.45 is support, look for a further rise towards 113.75 and even 114.10 in extension.

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 113.75 and the second one at 114.10. In the alternative scenario, short positions are recommended with the first target at 112.00 if the price moves below its pivot points. A break of this target is likely to push the pair further downwards, and one may expect the second target at 111.50. The pivot point is at 112.45.

Resistance levels: 113.75, 114.10, 114.40 , Support levels: 112.00, 111.50, 111

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

Technical analysis of USD/CHF for January 24, 2017

USDCHFM30.png

USD/CHF is expected to continue ascending. The technical picture of the pair is positive above a rising trend line, and is likely to challenge its next resistance at 1.0030. The upward momentum is further reinforced by its rising 20-period and 50-period moving averages, which play support roles and maintain the upside bias. The relative strength index is above its neutrality level at 50 and lacks downward momentum.

Trump signed the executive order to formally withdraw from the 12-nation Trans-Pacific Partnership trade deal. He also announced plans to start renegotiating the North American Free Trade Agreement (NAFTA) with the leaders of Canada and Mexico. He even told the US manufacturing executives he would impose a severe border tax on firms that import products into the US after moving American factories overseas.

As long as support holds at 0.9960, look for a further rise toward 1.0030 and even 1.0050 in extension.

Resistance levels: 1.0030, 1.0050, 1.0070

Support levels: 0.9935, 0.9910, 0.9875

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

Technical analysis of NZD/USD for January 24, 2017

NZDUSDM30.png

NZD/USD is expected to trade with a bearish outlook. The pair has formed the Head and Shoulders pattern, and is reversing down. Both 20-period and 50-period moving averages are descending and should maintain a bearish bias. Meanwhile, the relative strength index has been capped by a negative trend line. As long as 0.7260 is not broken above, a break below 0.7195 seems likely.

The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 0.7195. A break below this target will move the pair further downwards to 0.7175. The pivot point stands at 0.7260. 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 0.7280 and the second one at 0.7300.

Resistance levels: 0.7230, 0.7300, 0.7325

Support levels: 0.7195, 0.7175, 0.7145

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

Technical analysis of GBP/JPY for January 24, 2017

GBPJPYM30.png

GBP/JPY is expected to trade with a bearish bias. The pair remains capped by both 20-period and 50-period moving averages, and is staying on the downside. Meanwhile, the relative strength index has been capped by a negative trend line, and lacks upward momentum. As long as 142.00 holds as the key resistance, the risk of a break below 140.85 is high.

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 140.85. A break below this target will move the pair further downwards to 140.50. The pivot point stands at 142.00. 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 142.65 and the second one at 143.20.

Resistance levels: 142.65, 143.20, 143.75

Support levels: 140.85, 140.50, 140.05

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

Global macro overview for 24/01/2017

Global macro overview for 24/01/2017:

The series of PMI Flash indicators from the Eurozone was released this morning. Those data offers a fresh outlook for the Eurozone economy. On the whole, market analysts were optymistic, that the firmer trend in GDP growth will continue. This is why the PMI Flash Composite index was expected at the level of 54.5, a 0.1 point higher than a month ago. Nevertheless, the figure released was at the level of 54.3, 0.1 points less than anticipated. The same situation can be observed at Flash Services PMI that was worse than expected reading of 53.9 points by a mere 0.1 points as well. The only PMI sub-index that beat market expectations was PMI Flash Manufacturing index with 55.1 points delivered versus 54.8 points expected and 54.9 points a month ago. The biggest responsibility for worse than expected figures goes to Germany this time as both Services and Composite Flash PMI's dissapointed market participants. In conclusion, the PMI Flash data did not deliver the upbeat figures. Nevertheless, the first estimate of the official Q4 GDP scheduled for next week might surprise analysts to the upside.

Let's now take a look at EUR/USD technical picture in the 4H time frame. The overlapped price action suggests a corrective upward cycle in progress, so the downtrend should resume any time. The first sign of the resumption might come with the golden trend line breakout around the level of 1.0650, so please keep an eye at the level.

analytics58872bf1a487c.jpg

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

Global macro overview for 24/01/2017

Global macro overview for 24/01/2017:

At 09:30am GMT today the United Kingdom Supreme Court voted 8-3 that the government can't trigger article 50 without the parliament's approval. It means, that the Brexit bill must be presented and any changes to law must be enacted by the UK parliament. Moreover, The Supreme Court added that devolved assemblies in Scotland, Wales, and Northern Ireland do not need to give their consent. In conclusion, Prime Minister Theresa May must get the parliament's approval before she begins Britain's formal exit from the European Union. This means her plans to trigger Article 50 by the end of March 2017 could be amended or delayed.

Let's now take a look at the GBP/USD technical picture in the 4H time frame. The market has bounced from technical support at the level of 1.2431 and now the bulls are trying to violate the intraday resistance at the level of 1.2545. If they succeed, the next resistance is seen at the level of 1.2729. If they fail, the support will be tested again. In a case of a breakout lower, the next support is seen at the level of 1.2251.

analytics5887288b5f6cf.jpg

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

Daily analysis of major pairs for January 24, 2017

EUR/USD: There is a bullish signal on the EUR/USD pair, and just as it was forecasted earlier this week, price is expected to go further northwards. The market moved up beyond the support line at 1.0750 yesterday, targeting the resistance lines at 1.0800, 1.0850, and 1.0850. This bullishness would be sensible as long as price does not go below the support line at 1.0600.

1485251066_1.png

USD/CHF: There is a bearish signal on the USD/CHF pair, and just as it was forecasted earlier this week, price is expected to go further southwards. The market moved up below the resistance line at 1.0000, targeting the support lines at 0.9950, 0.9900, and 0.9850. This bearishness would be sensible as long as price not go above the resistance line at 1.0000. The resistance line at 1.0000 is particularly important because it would not be easy to be broken to the upside, and so, the current bearishness is expected to hold out longer.

2.png

GBP/USD: The GBP/USD pair moved upwards by 170 pips yesterday, to continue the bullish signal that was started last week. There is a Bullish Confirmation Pattern and price may later reach the distribution territories at 1.2550, 1.2600, and 1.2650.

3.png

USD/JPY: What happened yesterday showed that the rally that happened last Thursday and Friday was an opportunity to sell short at better prices. Price went south on Monday, underlining the recent bearish trend in the market. Further downwards movement is expected for the rest of this week.

4.png

EUR/JPY: The movement on this currency cross is now quite similar to the movement on the USD/JPY pair. There is a Bearish Confirmation Pattern here, and a further bearish movement is possible as price targets the demand zones at 121.00 (the first target), 120.50, and 120.00.

5.png

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

Technical analysis of USD/CAD for January 24, 2017

General overview for 24/01/2017:

The bottom for the wave 2/b (green) might be in place at the level of 1.3212. The price moved higher above the intraday support at the level of 1.3252 and now is threating to violate the intraday golden trend line. Any breakout above it will be another clue, that the bottom for wave 2/b is in place, nevertheless, the bulls must still break out above the wave 1/a (green) high at the level of 1.3386 to confirm the bottom.

Support/Resistance:

1.3018 - Technical Support

1.3137 - WS1

1.3189 - Technical Support

1.3252 - Intraday Support

1.3261 - Weekly Pivot

1.3386 - Intraday Resistance

1.3507 - WR1

Trading recommendations:

The head and shoulder pattern might be completed. If the golden trend line is clearly violated, then only buy orders should be opened with SL below the level of 1.3212 and TP at the level of 1.3386.

analytics588714ee3e0b5.jpg

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

Technical analysis of EUR/JPY for January 24, 2017

General overview for 24/01/2017:

The market has made another marginal low after being rejected from the weekly pivot at the level of 122.14. The low at the level of 121.13 will now act as the intraday support and the price has nicely rebounded from this level and has violated the golden intraday trend line. To confirm the bottom is in place, the market must break out above the weekly pivot at the level of 122.14 again and head towards the wave 1/a (green) high at the level of 122.95.

Support/Resistance:

123.74 - WR1

122.94 - Intraday Resistance

122.14 - Weekly Pivot

121.13 - Intraday Support

121.34 - WS1

120.53 - Invalidation Level

Trading recommendations:

Day traders should consider opening buy orders only due to uncompleted wave progression to the upside. The SL for all open orders should be placed below the level of 120.53 and TP should be left open for now.

analytics588712c057754.jpg

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

Technical analysis of USDX for January 24, 2017

The Dollar index has started providing bullish divergence signs in the 4-hour RSI. This is the first non-confirmed low in the Dollar index. Yesterday I supported the view that the new low was expected to be weak and soon we should see a strong upward bounce.

analytics58870fb2a7c5d.png

Blue lines - bearish channel

The early bounce towards 100.60 was weak and price reversed and provided a new lower low at 99.87 which was closer to our target. The new low was not confirmed by the RSI. The Dollar index remains inside the bearish channel and below the Ichimoku cloud. Trend remains bearish. Resistance is at 101. We could see a test of that area today.

analytics5887100fc5a0f.png

The weekly chart continues to favor a move towards the kijun-sen (yellow line indicator) at 99. As long as price is below the tenkan-sen (red line indicator) at 101.60 we remain in bearish trend. The weekly chart has much more room to the downside but short-term time frames need to work off the oversold levels.The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of gold for January 24, 2017

Gold price has made a double top at $1,220. Despite the continued Dollar weakness Gold has not managed to break to new highs. There are several bearish short-term indications and I continue to expect a pullback towards $1,160-$1,180.

analytics58870ece99ed7.png

Blue line - bearish divergence

Arrows - double top

Short-term resistance is at $1,220. If broken, we should push towards $1,235. Support is at $1,210 and at $1,197. If broken, we go towards $1,180 first and then towards $1,160. Short-term trend remains bullish as long as price is above the Ichimoku cloud. But the RSI is diverging for some time now and the stochastic turning lower from overbought levels provide a warning for bulls.

analytics58870f0db8d32.png

Gold price has stopped its rise at $1,220 as we expected from $1,120. A pullback is justified. I prefer to see price move towards $1,160 and the 61.8% Fibonacci retracement of the entire rise and then reverse upwards towards $1,300.The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of NZD/USD for January 24, 2017

NZDUSDH4.png

Overview:

  • The NZD/USD pair has faced strong resistances at the levels of 0.7262. So, the strong resistance has been already formed at the level of 0.7262 and the pair is likely to try to approach it in order to test it again. However, if the pair fails to pass through the level of 0.7262, the market will indicate a bearish opportunity below the new strong resistance level of 0.7262. Moreover, the RSI starts signaling a downward trend, as the trend is still showing strength above the moving average (100). Thus, the market is indicating a bearish opportunity below 0.7262 - 0.7238 so it will be good to sell at 0.7262 with the first target of 0.7197. It will also call for a downtrend in order to continue towards 0.7157 in order to test the weekly pivot. The daily strong support is seen at 0.7157. However, the stop loss should always be taken into account, for that it will be reasonable to set your stop loss at the level of 0.7310.
The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of USD/CHF for January 24, 2017

USDCHFH1.png

Overview:

  • The USD/CHF pair broke support which turned into strong resistance at the level of 1.0026 yesterday. The level of 1.0026 coincides with the ratio of 23.6% Fibonacci, which is expected to act as major resistance today. The Relative Strength Index (RSI) is considered oversold because it is below 70. The RSI is still signaling that the trend is upward as it is still strong below the moving average (100). This suggests that the pair will probably go down in coming hours. Accordingly, the market is likely to show signs of a bearish trend. In other words, buy orders are recommended below 1.0026 with the first target at the level of 0.9958. From this point, the pair is likely to begin a descending movement to the point of 0.9958 and further to the levels of 0.9930 abnd 0.9900. The level of 0.9900 will act as strong support. On the other hand, if a breakout happens at the resistance level of 1.0069, then this scenario may become invalidated.
The material has been provided by InstaForex Company - www.instaforex.com

Elliott wave analysis of EUR/NZD for January 24, 2017

analytics5886f2e59eda9.png

Wave summary:

The correction in wave ii/ ideally completed with the test of 1.4735 and a new impulsive rally towards 1.5837 is building. That said, we need a break above minor resistance at 1.4953 to add confidence in this call, while a break above resistance at 1.5003 will call for more upside towards 1.5193 on the way higher to 1.5837.

Support is seen at 1.4784 and again at 1.4735.

R3: 1.5193

R2: 1.5003

R1: 1.4953

Pivot: 1.4869

S1: 1.4784

S2: 1.4735

S3: 1.4654

Trading recommendation:

We are long EUR from 1.4884 with stop placed at 1.4650. If you are not long EUR yet, then buy a break above 1.4953 and use the same stop at 1.4650.

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

Elliott wave analysis of EUR/JPY for January 24, 2017

analytics5886f12a9c020.png

Wave summary:

The correction from 122.95 has extended and is currently testing the 78.6% corrective target near 121.02. Ideally this support will be able to protect the downside for a break above minor resistance at 122.15 and more importantly above resistance at 122.95 for the next rally higher toward the ideal target for wave 3 at 125.54.

That said, we need to remember, that second wave corrections are allowed to correct 100% of the first wave, but they can never ever move beyond the start of the first wave.

R3: 122.95

R2: 122.15

R1: 121.61

Pivot: 121.48

S1: 121.02

S2: 120.88

S3: 120.50

Trading recommendation:

We are long EUR from 121,40 with stop placed at 120,45. If you are not long EUR yet, then buy a break above 122.15 and use the same stop at 120.45.

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

Technical analysis of EUR/USD for Jan 24, 2017

EURUSD.jpg

When the European market opens, some Economic Data will be released, such as Flash Services PMI, Flash Manufacturing PMI, German Flash Services PMI, German Flash Manufacturing PMI, French Flash Services PMI, and French Flash Manufacturing PMI. The US will release the economic data, too, such as Richmond Manufacturing Index, Existing Home Sales, and Flash Manufacturing PMI, so, amid the reports, EUR/USD will move in a low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Breakout BUY Level: 1.0811.

Strong Resistance:1.0805.

Original Resistance: 1.0794.

Inner Sell Area: 1.0783.

Target Inner Area: 1.0758.

Inner Buy Area: 1.0733.

Original Support: 1.0722.

Strong Support: 1.0711.

Breakout SELL Level: 1.0705.

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 Jan 24, 2017

USDJPY.jpg

In Asia, Japan will release the Flash Manufacturing PMI data, and the US will release some Economic Data, such as Richmond Manufacturing Index, Existing Home Sales, and Flash Manufacturing PMI. So, there is a probability the USD/JPY will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Resistance. 3: 113.44.

Resistance. 2: 113.22.

Resistance. 1: 113.00.

Support. 1: 112.73.

Support. 2: 112.52.

Support. 3: 112.29.

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

USD/CAD intraday technical levels and trading recommendations for January 24, 2017

analytics58868ff457eb3.pnganalytics58869008db97c.png

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.

The 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's why, the recent bearish pullback toward 1.3000 (61.8% Fibonacci level) offered a valid BUY entry as expected in previous articles.

This week, a bullish breakout above 1.3300 (50% Fibonacci Level) is needed to enhance bullish advance toward 1.3440 and 1.3550. Otherwise, the USD/CAD pair remains trapped within the current consolidation range (1.3000-1.3300).

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

NZD/USD Intraday technical levels and trading recommendations for January 24, 2017

analytics58868e92a4133.png

On November 8, significant signs of a bearish reversal were expressed around the upper limit of the depicted consolidation range (0.7350).

A bearish breakdown of 0.7250 (the 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 enabled the NZD/USD pair to pursue toward lower target levels around 0.6990 (the upper limit of the depicted BUY zone).

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.

Instead, bullish persistence above 0.7100 (Key-Level) allows further bullish advance toward 0.7250 (SELL-ENTRY) where bearish rejection and a valid SELL entry can be offered.

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

Intraday technical levels and trading recommendations for GBP/USD for January 24, 2017

analytics58868c34522a2.pnganalytics58868cd98c3c7.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.

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, Bullish Price action was expressed around the demand level of 1.2000. That's why, a bullish engulfing candlestick was expressed on Tuesday.

Initial bullish target is located around 1.2550 provided that the current bullish breakout above 1.2430 is maintained.

Otherwise, the next bearish destination would be located around 1.1200 (Fibonacci Expansion 100%) if 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 January 24, 2017

analytics58868c2da38bb.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, the 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.

analytics58868c3d583d4.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.

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).

Bearish persistence below 1.0825 allowed further fall to occur at 1.0570 (demand level) where bullish rejection and a valid BUY entry were expressed on November 24.

Shortly after, the Fibonacci Expansion 100% (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 allows further bullish advance toward 1.0825-1.0850 (Fibonacci Expansion 100%) where bearish rejection should be anticipated.

Bullish breakout above 1.0570-1.0600 was executed on January 12. Hence, the price level of 1.0600 now constitutes a recent demand level to be watched for bullish rejection if any bearish pullback occurs.

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

Daily analysis of USDX for January 24, 2017

The index once again is looking to trade lower as it's challenging the support level of 100.00. If we see a breakout lower around that area, we can expect another decline towards 98.98. The dynamic resistance offered by the 200 SMA at H1 chart remains intact and as long as USDX continues to trade below that moving average, a consolidation below the 100.00 handle for the short-term is likely to happen.

USDXH1.png

H1 chart's resistance levels: 101.43 / 102.39

H1 chart's support levels: 100.01 / 98.98

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 100.01, take profit is at 98.98 and stop loss is at 101.03.

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

Daily analysis of GBP/USD for January 24, 2017

The pair is posting fresh multi-week highs across the board, ahead of the UK Supreme Court's ruling on Brexit. We can expect high volatility whatever the ruling could be at the end and if GBP/USD attempts a rally from current stage, then it can test the resistance level of 1.2566, looking for the 1.2645 zone, while a pullback could push lower the Cable to test the 200 SMA.

GBPUSDH1.png

H1 chart's resistance levels: 1.2566 / 1.2645

H1 chart's support levels: 1.2475 / 1.2391

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 1.2566, take profit is at 1.2645 and stop loss is at 1.2487.

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

Daily analysis of GBP/JPY for January 23, 2017

GBPJPYH4.png

Overview

The GBPJPY price provided new negative closes below the bearish channel's resistance at 142.00 forming a new bullish rally by reaching 140.80, which confirms our negative suggestion. We wait for recording the expected targets at 140.00 and 138.80 in the near and medium period. The decline of Stochastic to the oversold level supports the negative suggestion, which provides the required momentum for achieving the suggested targets. Stability of the moving average 55 above the price trading reinforces negative pressure, forcing the price to form a negative attack. The expected trading range for today is between 141.80 and 140.00.The material has been provided by InstaForex Company - www.instaforex.com

Daily analysis of Gold for January 23, 2016

GOLDH4.png

Overview

Gold price shows some bearish bias after testing the recently recorded top at 1,218.55, while the price is still trapped inside the bullish channel that appears on the chart. Please note that the EMA50 protects trading inside this channel to keep the bullish trend scenario active for today. The mentioned level is expected to be broken, that opens the way to head for 1,249.94. Holding above 1202.00 and 1197.10 levels represents the key condition to continue the expected rise for today. Breaking the last level represents a negative factor that will push the price to start bearish correction that its main targets begin at 1,183.83 before the next destination on the short-term basis. The expected trading range for today is between 1,202.00 support and 1,235.00 resistance.

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

Daily analysis of Silver for January 23, 2017

SILVERH4.png

Overview

Silver price managed to breach the correctional bearish channel's resistance and settled above it. This supports the continuation of our bullish trend scenario in the short term. The way is open to visit 17.43 level that represents the first main target. Therefore, we are waiting for a more obvious bullish bias on the intraday and short-term basis, noting that the EMA50 provides persistent positive support. It reinforces the chances of breaching the above-mentioned level followed by opening the way to head for 18.30 as the next main target. Please bear in mind that holding above 16.56 represents the key condition to achieve the suggested targets. The expected trading range for today is between 17.00 support and 17.43 resistance.

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