EUR/USD analysis for May 05, 2017

analytics590c7be313a9a.png

Recently, the EUR/USD pair has been trending upwards. The price tested the level of 1.0991. According to the 15M time frame, I found a fake breakout of the yesterday's high, which is a sign that buying looks risky. My advice is to watch for selling opportunties. I have placed Fibonacci retracement to find potential downward targets. I got Fibonacci retracement 38.2% at the price of 1.0950, Fibonacci retracement 50% at the price of 1.0935 and Fibonacci retracement 61.8% at the price of 1.0920.

Resistance levels:

R1: 1.0975

R2: 1.0985

R3: 1.0995

Support levels:

S1: 1.0954

S2: 1.0945

S3: 1.0935

Trading recommendations for today: watch for potential selling opportunities.

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

GBP/USD analysis for May 05, 2017

analytics590c78a8d2e0f.png

Recently, the GBP/USD pair has been trading upwards. The price tested the level of 1.2959. According to the 15M time frame, I found a price spike after the Non farm employment change report. Anyway, I found a broken upward trendline and a fake breakout of yesterday's high, which is a sign that buying looks risky. My advice is to watch for potential selling opportunities. Downward targets are set at the levels of 1.2900 and 1.2880.

Resistance levels:

R1: 1.2940

R2: 1.2945

R3: 1.2955

Support levels:

S1: 1.2920

S2: 1.2915

S3: 1.2910

Trading recommendations for today: watch for potential selling opportunities.

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

Daily analysis of GBP/JPY for May 05, 2017

GBPJPYH4.png

Overview

The GBP/JPY price failed to settle above 145.45. It would be viewed as a good barrier against the bullish attempts that would provide sideways fluctuation. If stochastic surpasses the overbought level, it will make the price lose its bullish momentum in the current trading. As the pair is expected to trade in a sideways manner, there is a good chance for testing the initial support at 143.30. So we can suggest the neutral bias if the main levels are settled. The solution is to keep waiting until the pair gains the bullish momentum that allows it to confirm the breach. Later, the pair could extend its gains that begin at 146.30 aiming at the recent high of 148.45. The expected trading range for today is between 143.35 and 145.45

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

Daily analysis of EUR/JPY May 05, 20 b17

EURJPYH4.png

Overview

The EUR/JPY pair kept the bullish bias to reach 123.65 yesterday, that was influenced by the stability of the initial support at 122.00 level. The price might be forced to provide some sideways trading today due to stochastics' attempt to surpass the overbought level, but the stability of the initial support makes us wait until a new bullish momentum is gathered. This allows the price to reach the target of 124.15. If the level is surpassed, it will open the way up towards 126.15, which forms the next target for the bullish bias. The expected trading range for today is between 122.60 and 124.15

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

Daily analysis of Gold for May 05, 2017

GOLDH4.png

Overview

Gold price has fallen under more negative pressure to fluctuate below 1,230.00 barrier now. This supports ta further decline on the intraday basis. We are still waiting for the 1,211.31 level to be tested as the next main target. Please note that the EMA50 keeps supporting the expected bearish wave. Therefore, we are waiting for more declines in the upcoming sessions. Be aware that breaking the target level will extend gold price losses to reach 1,172.70. The suggested decline will remain valid unless the price is able to breach 1,243.80 followed by 1,250.00 levels and hold above them. The expected trading range for today is between 1,211.30 support and 1,240.00 resistance.

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

Daily analysis of Silver for May 05, 2017

SILVERH4.png

Overview

Silver price is showing more decline to move away gradually from 16.56 level. This reinforces the expectations of a further decline in the short term. The way is open towards 15.49 that represents our next main downward target. Therefore, the bearish trend will remain valid on the intraday and short-term basis, supported by the negative pressure formed by the EMA50. Please be aware that breaching 16.56 will stop the current negative pressure and enable the price to start recovery attempts in the short run. The expected trading range for today is between 16.00 support and 16.56 resistance.

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

NZD/USD Intraday technical levels and trading recommendations for May 5, 2017

analytics590c61617e416.png

In December 2016, the NZD/USD pair was trapped within the depicted price range (0.6860-0.6990) until a bullish breakout occurred.

A bullish breakout above 0.6960-0.7000 allowed the pair to head toward the price level of 0.7100 (the key level) which failed to provide sufficient bearish pressure on the pair.

Bullish persistence above 0.7100 allowed a further advance toward 0.7250-0.7350 (Sell-Zone) where the bearish price action was expected.

Bearish persistence below 0.7250 allowed a further decline toward 0.7100 then 0.6960 which failed to provide enough support for the pair.

That is why a further fall was expected toward 0.6860 (the lower limit of the depicted BUY zone) where a bullish position was suggested in previous articles.

Recently, a bullish breakout was achieved above the depicted key level (0.6960).However, the pair failed to express enough bullish momentum above 0.7050.

That's why the NZD/USD pair became trapped within the depicted consolidation range (0.6860-0.6960) once again.

Note the depicted bullish 1-2-3 pattern remains valid as long as bullish fixation above 0.6900-0.6850 is maintained on a daily basis.

On the other hand, a bullish breakout above 0.6960 is needed to allow further bullish movement. Expected projection target for the pattern is located around 0.7250.

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

USD/CAD intraday technical levels and trading recommendations for May 5, 2017

analytics590c60dc9c86d.pnganalytics590c611c7e446.png

Since April 2016, the USD/CAD pair has been trending upward within the depicted ascending channel.

In December 2016, a bullish breakout above 1.3300 (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 (recently established top).

During the bearish pullback, the price level of 1.3300 (50% Fibonacci Level) failed to provide enough support to the pair.

This allowed a further bearish movement toward the price level of 1.2970 (61.8% Fibonacci level) where a valid BUY entry was offered in February 2017.

A few weeks ago, the bullish breakout above 1.3300 (50% Fibonacci Level) enhanced a further advance toward 1.3440 and 1.3580.

As long as, the USD/CAD pair maintains bullish trading above 1.3580 (confluence of prominent tops), expected bullish target would be located around 1.3950 (upper limit of the depicted channel and FE 100%).

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

Fundamental Analysis of AUD/JPY for May 5, 2017

AUD/JPY has shown bullish exhaustion in recent trading days. Currently, the price is residing just above 82.90 support level. As of Reserve Bank of Australia's Monetary Policy Statement published today which was dovish in nature which made AUD lose some grounds against JPY. Along with Monetary Policy Statement report today, AIG Construction Index report was also published today with an increased value at 51.9 which previously was at 51.2. On the other hand, JPY having Bank Holiday for the whole day is gaining over AUD today and it is expected that JPY may dominate AUD in the coming trading days. In the meantime, if AUD could show positive economic reports in coming days then we might see a different picture or else JPY is expected to dominate AUD in the coming days.

Now let us look at the technical view, the price is currently residing just above the support level of 82.90 and if we see a daily close above 82.90 today we will be looking forward to buying with a target towards 86.20 resistance. On the other hand, if the price breaks and closes below 82.90 with a daily close then we will be looking forward to selling with a target towards 81.60. For getting into a decision, daily close today is very important to predict the future moves in this pair.

analytics590c4e5dd18a9.jpg

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

Fundamental Analysis of EUR/AUD for May 5, 2017

EUR/AUD has been in a non-volatile bullish impulsive pressure after the break above 1.4600 resistance level. Recently EUR has been quite positive in economic reports in comparison to AUD and the chart itself showing its evidence now. Today AUD AIG Construction Index report has been published with an increased value at 51.9 which previously was at 51.2 and in RBA Monetary Policy Statement today was dovish for the currency. On the other hand, EUR Retail PMI report was published today with an increased value at 52.7 which previously was at 49.5. In this pair, both of the currencies showed a positive figure in economic reports published today but AUD is expected to gain some strength against EUR in the coming days.

Now let us look at the technical view, the price has recently rejected from the resistance level of 1.4880 and we can see a bearish engulfing bar on the intraday chart. Currently, it is expected that the price will retrace down towards 1.4600 support level and if we see any bearish rejection off the level we will be looking forward to buying with a target towards 1.50 resistance level.

analytics590c476fa101e.jpg

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

Global macro overview for 05/05/2017

Global macro overview for 05/05/2017:

The PMI services data from the UK beat the market expectations. The figure released yesterday was at the level of 55.8 points, which is better than the last month reading of 55.0 points and better than market expectations of 54.8 points (the second highest since mid-2015). Moreover, the Markit/CIPS reported that according to its PMI surveys the British economy was expanding at a 0.6% pace in the second quarter, but this positive momentum might be lost soon as rising prices continued putting significant pressure on households and the UK companies lowered their outlook for economic growth and business activity in the sector.

Let's now take a look at the GBP/USD technical picture on the H4 timeframe. The market is still trading near the recent highs around the level of 1.2963, but the upwards momentum is visibly worsening. Nevertheless, the technical support at the level of 1.2772 is still holding the line, so as long as this level is not violated, the bias remains to the upside with occasional corrections along the way. The next support is seen at the levels of 1.2859 and 1.2828.

analytics590c40c4e3f1c.jpg

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

Global macro overview for 05/05/2017

Global macro overview for 05/05/2017:

The Reserve Bank of Australia released its Monetary Policy Statement overnight. As we remember, the RBA voted earlier this week to keep interest rates unchanged at the level of 1.5%, a decision that was in line with the consensus. The policy has been on hold since August as officials seek to stimulate inflation and economic growth. In the official statement, the RBA projects the GDP to average between 2.5% - 3.5% during the next two years. The inflation is expected to increase in the coming years, and the first clues for this assumption comes with the annual CPI inflation acceleration in the first quarter of 2017 to 2.1%. In conclusion, the overall tone of the statement was rather hawkish with positive and optimistic GDP and CPI forecasts for the period of 2017-2018.

Let's now take a look at the AUD/USD technical picture on the H4 time frame. The market has hit the 61%Fibo at the level of 0.7384 and now is trying to bounce from this level. This view is supported by the oversold trading conditions and visible bullish divergence between the price and the momentum indicator. The next resistance is seen at the level of 0.7415 and 0.7438. The next support is seen at the level of 0.7368.

analytics590c399810095.jpg

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

Technical analysis of USD/JPY for May 5, 2017

USDJPYM30.png

Key resistance of USD/JPY is seen at 112.70. The pair is rebounding and is challenging the declining 20-period moving average. Nevertheless, the key level at 112.70 as well as the 50-period moving average are playing resistance roles. The relative strength index is below its neutrality level at 50 and lacks upward momentum.

As long as 112.70 holds on the upside, look for a further drop towards 111.95 and even 111.75 in extension.

The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. Therefore, long positions are recommended with the first target at 113.15 and the second one at 113.40. In the alternative scenario, short positions are recommended with the first target at 111.95 if the price moves below its pivot points. A break of this target may push the pair further downwards, and one may expect the second target at 111.75. The pivot point lies at 112.25.

Resistance levels: 113.05, 113.40, and 113.85

Support levels: 111.95, 111.75, and 111.20

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

Technical analysis of USD/CHF for May 5, 2017

USDCHFM30.png

USD/CHF is expected to extend its downside movement. The pair is holding on the downside. The downward momentum is further reinforced by the declining 20-period and 50-period moving averages. The relative strength index has broken down its oversold level of 30, but has not displayed any reversal signal.

Regarding economic data, the U.S. Commerce Department reported that trade deficit amounted to $43.7 billion in March (vs. $44.5 billion expected, $43.8 billion in February). Growth in durable goods orders was finalized as +0.9% on month in March, up from +0.7% in February, while factory orders increased 0.2%, compared with +0.4% expected. Meanwhile, initial jobless claims were posted at 238,000 for the week ended April 29, lower than 248,000 expected and 257,000 in the prior week.

Hence, as long as 0.9905 holds on the upside, expect a further drop to 0.9840 and even to 0.9815 in extension.

Resistance levels: 0.9930, 0.9950, and 0.9975

Support levels: 0.9840, 0.9815, and 0.9770

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

Technical analysis of NZD/USD for May 5, 2017

NZDUSDM30.png

NZD/USD is expected to trade with a bullish bias. The pair is trading above rising 20-period and 50-period moving averages, which play support roles and maintain the upside bias. The relative strength index is mixed to bullish. In addition, the downside potential should be limited by the key support at 0.6840.

To sum up, as long as this key level holds on the downside, look for a new rise to 0.6920 and even to 0.6940 in extension.

The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. Therefore, long positions are recommended with the first target at 0.6920 and the second one at 0.6940. In the alternative scenario, short positions are recommended with the first target at 0.6820 if the price moves below its pivot points. A break of this target may push the pair further downwards, and one may expect the second target at 0.6800. The pivot point is at 0.6840.

Resistance levels: 0.6920, 0.6940, and 0.6970

Support levels: 0.6820, 0.6800, and 0.6750

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

Technical analysis of NZD/USD for May 05, 2017

NZDUSDH1.png

Overview:

  • The NZD/USD pair is showing signs of strength after a bounce from the lowest level of 0.6847. The level of 0.6847 coincides with the double bottom, which is expected to act as a minor support today. Besides, the double bottom is seen at the point of 0.6847. Since the trend is above the level of 0.6847, the market is still in an uptrend because the major support is seen at the level of 0.6847. Furthermore, the trend is still showing strength above the moving average (100). Thus, the market is indicating a bullish opportunity above the mentioned support levels, for that the bullish outlook remains the same as long as the 100 EMA is heading upwards. Therefore, strong support will be found at the level of 0.6847 providing a clear signal to buy with a target seen at 0.6998. If the trend breaks the minor resistance at 0.6998, the pair will move upwards continuing the bullish trend development to the level 0.7053 in order to test the double top. However, if the NZD/USD pair fails to break through the resistance level of 0.6922 today, the market will decline further to 0.6847 to retest it.
The material has been provided by InstaForex Company - www.instaforex.com

Trading plan for 05/05/2017

Trading plan for 05/05/2017:

The commodity market sell-off pushed commodity currencies and equity markets in Asia down. The Dollar loses slightly against major currencies, and the market is waiting for a report on the US labor market. Crude oil is losing 3% today, down to $45 per barrel, which is almost 5% fall from Thursday. Sentiment on the crude oil market affects other commodities as well as the currencies related to them. Under pressure are CAD, NOK, AUD, NZD, and RUB. The USD/CAD pair at 1.3790 was the highest for 14 months, AUD/USD at 0.7370 was a 4-month low.

On Friday 5th of May, the main event of the day is Non-Farm Payrolls data from the US and Unemployment Change data release from Canada. Later on the day, global investors will pay attention to the speech of Federal Reserve Chairperson Janet Yellen.

EUR/USD analysis for 05/05/2017:

The Non-Farm Payrolls data are scheduled for release at 12:30 pm GMT and market participant expect another good figure after last month decrease to 98k only. This month the expected number is at the level of 198k, but any score above 200k will make the Dollar even stronger across the board. The Unemployment Rate is expected to increase from 4.5% to 4.6%, so again no change in the rate will be another reason to appreciate the Dollar. One of the most important sub-indices will be Average Hourly Earnings, which are expected to increase a little from 0.2% to 0.3% on a monthly basis. It is worth keeping an eye on this part of the Payrolls data, because even a good NFP reading might get overshadowed by poor earnings data.

Let's now take a look at the EUR/USD technical picture on the H4 time frame. The bulls have managed to break out from the triangle and the price violated the technical resistance at the level of 1.0950 and made a new high at the level of 1.0989. Nevertheless, the momentum is clearly decreasing on this timeframe and the stochastic oscillator is indicating a bearish divergence, so a good score from NFP should cause a pretty deep correction, possibly event covering the weekend gap between the levels of 1.0730 - 1.0820.

analytics590c337675719.jpg

USD/CAD analysis for 05/05/2017:

The Unemployment Rate data are scheduled for release at 12:30 pm GMT and market participants expect no change in the number of jobless people at the level of 6.7%. The Employment Change data are expected to increase slightly from 19.4k to 20.0k on a monthly basis. Market participants expect a steady data from Canada, so any surprise here might result in Canadian Dollar sell-off.

Let's take a look at the USD/CAD technical picture on the H4 timeframe. Due to the sell-off in Crude Oil the market is trading at the highest level in months, just below 61%Fibo of the bigger time frame swing down. The target for bulls is still at the level of 1.3826, but if the data are significantly worse than expected, then the bears might make the first step to take control over this market for a corrective sell-off. The next technical supports are seen at the levels of 1.3757 and 1.3678.

analytics590c3387309bb.jpg

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

Technical analysis of GBP/JPY for May 5, 2017

GBPJPYM30.png

GBP/JPY is expected to advance further. The pair has broken above a triangle pattern, and is looking for a higher top. Both 20-period and 50-period moving averages are rising and should play support roles as well. In addition, the relative strength index is above its neutrality area at 50, showing upside momentum. Even though an intraday consolidation cannot be ruled out, its extent should be limited.

As long as 144.55 is not broken below, expect a break above 145.50 at first, which will allow for an upside acceleration to 146 as likely.

The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. Therefore, long positions are recommended with the first target at 145.50 and the second one at 146.00. In the alternative scenario, short positions are recommended with the first target at 144.05 if the price moves below its pivot points. A break of this target may push the pair further downwards, and one may expect the second target at 143.70. The pivot point is at 144.55.

Resistance levels: 145.05, 146.00, and 146.35

Support levels: 144.05,143.70, and 143.20

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

Technical analysis of USD/CHF for May 05, 2017

USDCHFH4.png

Overview:

  • The USD/CHF pair was trading around the area of 0.9847 - 0.9882 yesterday. Today, the level of 0.9882 represents a daily pivot point in the H4 time frame. The pair has already formed minor support at 0.9882 and the strong support is seen at the level of 0.9812 because it represents the daily support 1. So, major support is seen at 0.9812, while immediate resistance is found at 0.9925. If the pair is able to break below the level of 0.9812, the USD/CHF pair may resume it movement to 0.9925. From this point, we expect the USD/CHF pair to move between the levels of 0.9847 and 0.9925 in coming hours. Equally important, the RSI is still calling for a strong bullish market as the current price is also still above the support levels of 0.9847 and 0.9812. We expect the USD/CHF pair to continue moving in the bullish trend from the support level of 0.9847 towards the target level of 0.9925. If the pair succeeds in passing through the level of 0.9925, the market will indicate the bullish opportunity above the level of 0.9925 in order to reach the second target at 0.9995. Another resistance level is seen at 1.0072. On the other hand, stop loss should always be taken into account, accordingly, it will be beneficial to set the stop loss below the last bearish wave at the level of 0.9800.
The material has been provided by InstaForex Company - www.instaforex.com

Ichimoku indicator analysis of USDX for May 5, 2017

The Dollar index could hold above resistance yesterday and got rejected and pushed to new lows. Trend remains bearish and as long as price is below 99.40 trend will remain bearish looking for a test of 98.

analytics590c2ceaca009.png

Blue lines - trading range

The Dollar index got rejected at the upper boundary of the trading range and is breaking below it. Price got rejected at cloud resistance and is now trading below both the tenkan- and kijun-sen indicators. There are short-term oversold signals that could justify a bounce towards 99 where the lower cloud boundary resistance is found.

analytics590c2d4042329.png

Green line -long-term trend line support

Black line - support

Red line - resistance

The Dollar index is sliding along the black trend line support but is breaking below the green long-term upward sloping trend line support. We should expect the Dollar index to test the weekly cloud support at 97. From that level we should expect a bounce probably towards the broken green trend line as a back test. As long as price is below 101.30 trend is bearish.

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

Ichimoku indicator analysis of gold for May 5, 2017

Gold price has broken to new lows yesterday but is very close to making an important bottom reversal if it has not already bottomed. Gold price should bounce at least towards $1,260-70. There are many signs of bullish divergence and similar to when Gold was at $1,194.

analytics590c2bf751406.jpg

Gold continues to trade below the Ichimoku cloud and both the tenkan- and kijun-sen. Short-term trend is bearish. Resistance is at $1,250 and next at $1,260-70. Support is at $1,220-$1,200.

analytics590c2c37ec9a7.jpg

Purple line - support

Blue line -long-term support

Black line - long-term resistance

Gold price was rejected a couple weeks ago at the long-term resistance trend line and the upper cloud boundary. Price is now testing the purple trend line support and the weekly kijun-sen (yellow line indicator). A bounce is expected from current levels. However, a break below $1,220-$1,210 on a weekly basis will imply that Gold should move even lower towards $1,160. My long-term view remains bullish expecting Gold towards $1,500.

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

Elliott wave analysis of EUR/NZD for May 5 - 2017

analytics590bf58773876.png

Wave summary:

The corrective low for wave [iv] was seen at 1.5645 and wave [v] higher is now unfolding. This rally should be able to rally towards minimum 1.6172 and ideally, will extend higher towards 1.6500 and 1.6655 to complete wave iii.

If, however, EUR/NZD fails to clear resistance at 1.6172 it will indicate that a sub-count is unfolding and the rally from 1.5054 will only be counted as sub-wave i/ of iii indicating a strong extension in wave iii.

R3: 1.6172

R2: 1.6072

R1: 1.6021

Pivot: 1.6000

S1: 1.5903

S2: 1.5810

S3: 1.5740

Trading recommendation:

We are long EUR at 1.5940 and will place our stop at 1.5840.

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

Daily analysis of GBP/USD for May 05, 2017

Forex analysis review
Daily analysis of GBP/USD for May 05, 2017

Elliott wave analysis of EUR/JPY for May 5, 2017

analytics590bf3b754c59.png

Wave summary:

EUR/JPY has just hit and slightly exceeded the ideal 123.21 target, this indicates a possible extension closer to 124.06 before the rally in wave A is complete. That said, it should be a matter of time before the top is in place and a corrective decline in wave B towards 120.30 and maybe even closer to 119.25 should be expected.

A break below minor support seen at 123.21 and more importantly below support at 122.56 will confirm that wave A is complete and wave B is unfolding.

R3: 124.06

R2: 123.72

R1: 123.67

Pivot: 123.21

S1: 123.00

S2: 122.56

S3: 122.31

Trading recommendation:

We are short EUR from 123.00 and will place our stop at 124.10.

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

Technical analysis of EUR/USD for May 05, 2017

EURUSD.jpg

When the European market opens, European Commission Economic Forecasts will have been posted in the eurozone. The US will release the Economic Data too such as Consumer Credit m/m, Fed Chair Yellen Speaks, Unemployment Rate, Non-Farm Employment Change, and Average Hourly Earnings m/m. So amid the reports, EUR/USD will move with medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Breakout BUY Level: 1.1032.

Strong Resistance:1.1026.

Original Resistance: 1.1015.

Inner Sell Area: 1.1004.

Target Inner Area: 1.0979.

Inner Buy Area: 1.0954.

Original Support: 1.0943.

Strong Support: 1.0932.

Breakout SELL Level: 1.0926.

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 May 05, 2017

USDJPY.jpg

In Asia, Japan today will not release any economic data. However, the US will present some economic data such as Consumer Credit m/m, Unemployment Rate, Non-Farm Employment Change, and Average Hourly Earnings m/m. So there is a probability the USD/JPY pair will move with medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Resistance 3: 113.18.

Resistance 2: 112.97.

Resistance 1: 112.74.

Support 1: 112.46.

Support 2: 112.24.

Support 3: 112.02.

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 major pairs for May 5, 2017

EUR/USD: The EUR/USD pair moved sideways from Monday to Wednesday and then broke upwards on Thursday. The upwards break (that was previously forecasted) has already emphasized the ongoing bullish bias on the market. The next targets for bulls are the resistance line of 1.1000, which is an important area.

1.png

USD/CHF: The USD/CHF pair trended southwards on Thursday in the context of a downtrend. There is a Bearish Confirmation Pattern in the market, and a further bearish movement is possible as long as EUR/USD is dropping. That is the condition that would enable USD/CHF to trend upwards.

2.png

GBP/USD: The GBP/USD pair has generally moved sideways this week in the context of a bullish bias. Price has bounded between the distribution territory at 1.2950 and the accumulation territory at 1.2850. A breakout is imminent, which would most probably favor bulls. The EMA 11 is above the EMA 56, and the RSI period 14 is above the level 50.

3.png

USD/JPY: This market has gone upwards by 160 pips this week; having moved upwards by over 340 pips since April 25, 2017. The supply level at 113.00 was tested and price pulled back a bit. However, a further northward journey is anticipated, for price could reach the supply levels at 113.00, 113.50, and 114.00 within the next several trading days.

4.png

EUR/JPY: The EUR/JPY pair has moved upwards by 210 pips this week. The bullish movement was in agreement with the bearish movement that started last week. The supply zone at 123.50 is currently under siege and it would soon be breached to the upside as bulls push price towards another supply zones at 124.00 and 124.50.

5.png

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

Daily analysis of USDX for May 05, 2017

As the US fundamental data on Thursday discouraged investors and the Healthcare bill passed the House, USDX received a strong selling wave below the 200 SMA on H1 chart, which enabled the greenback to cap gains in the short term. Now, the index is piercing the support level of 98.83 and now it is heading for the 98.42 level, which is our next key area to the downside.

USDXH1.png

H1 chart's resistance levels: 99.28 / 99.97

H1 chart's support levels: 98.83 / 98.42

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 98.83, take profit is at 98.42 and stop loss is at 99.24.

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

Daily analysis of GBP/USD for May 05, 2017

GBP/USD managed to rebound above the 200 SMA on H1 chart amid a broad-based weakness in the US Dollar. The pair is still trapped in a range established since April 28th. Now the pair aims to test the resistance zone of 1.2957 once again. If it manages to break above that area, we can expect further advances toward the 1.3029 level.

GBPUSDH1.png

H1 chart's resistance levels: 1.2957 / 1.3029

H1 chart's support levels: 1.2855 / 1.2652

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 1.2957, take profit is at 1.3029 and stop loss is at 1.2887.

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

NZD/USD profit target reached perfectly, prepare to start buying

Price has dropped perfectly to our profit target. We now prepare to buy above 0.6847 support (Fibonacci extension, Elliott wave theory, horizontal support) for a push up to 0.6918 resistance (Fibonacci retracement, horizontal overlap resistance).

Stochastic (34,5,3) is approaching support at 5.6% level where we expect a bounce from.

Correlation analysis : NZD/USD has a strong postiive correlation with AUD/USD meaning they usually move together. Since both AUD/USD and NZD/USD are expecting bounces, this increases the conviction on our trade.

Buy above 0.6847. Stop loss at 0.6816. Take profit at 0.6918.

analytics590b47935c267.png

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

AUD/NZD profit target reached perfectly, time to start buying

Price has dropped perfectly and reached our profit target. We now prepare to buy above 1.0771 support (Fiboancci retracement, Fibonacci extension, horizontal overlap support, Elliott wave theory) for a push up to 1.0932 resistance (Fibonacci extension, horizontal swing high resistance, Elliott wave theory).

Stochastic (55,5,3) is seeing major support above 1.3% where we expect a bounce from.

Buy above 1.0771. Stop loss at 1.0707. Take profit at 1.0932.

analytics590b47636e696.png

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