AUD/JPY testing major resistance, remain bearish

Price is now testing major resistance at 84.23 (Fibonacci retracement, Fibonacci extension, horizontal pullback resistance) and we expect price to react off this level and drop towards 83.27 support (Fibonacci retracement, horizontal pullback support).

Stochastic (34,5,3) is seeing major resistance below the 92% level where we expect a drop from.

Correlation analysis: We're expecting overall JPY strength today with AUD/JPY and EUR/JPY both expecting drops.

Sell below 84.23. Stop loss at 84.64. Take profit at 83.27.

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NZD/USD profit target reached once again, prepare to go bullish

Price shot up and reached our profit target perfectly before dropping strongly. This is a perfect example of putting profit targets at key levels. We now turn bullish above 0.6818 support (Fibonacci extension, Elliott wave theory) and look for a bounce towards 0.6874 resistance (Fibonacci retracement, horizontal pullback resistance).

Stochastic (21,5,3) is approaching strong support at 9% where we expect a bounce from.

RSI (34) has made a bearish exit signalling that the overall momentum we're expecting of NZDUSD is bearish.

Correlation analysis: NZD/USD and AUD/USD are positively correlated meaning they usually move together in the same direction. We are expecting a rise on AUD/USD and a rise on NZD/USD which goes well with the positive correlation expected.

Buy above 0.6818. Stop loss at 0.6789. Take profit at 0.6874.

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Trading Plan for EUR/USD and GBP/USD for May 11, 2017

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Technical outlook:

The story continues from where we left yesterday. With another low in place at 1.0838 levels today, most probably the first leg seems to be over. As labelled here, EUR/USD might have just completed its wave (1) at a higher degree and it should resume its counter trend rally into wave (2) as highlighted here. As an alternative though, today's lows could be wave 3 and wave 4 that should terminate into 1.0910 levels to continue drifting lower from there on. The fibonacci 0.618 resistance is also seen at 1.0950 levels which should provide formidable resistance going forward. A break above 1.0893 levels would confirm further acceleration into the counter trend rally. Resistance is strong at 1.1022 levels now, and support is seen at 1.0800 levels respectively.

Trading plan:

Short-term time frame traders can take profit in short positions taken earlier and look to sell again higher around 1.0950 levels. At the same time, long-term time frame traders may hold short positions and look to open more trades on counter trend rallies. An aggressive trade strategy would be to go long with stop below 1.0838 levels and reverse at higher levels.

GBPUSD chart setups:

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Technical outlook:

The GBP/USD story continues to remain bearish from what was discussed yesterday. There is no change in the long-term outlook but one can expect intraday pullback rallies before it breaks below 1.2830 levels. Please note that with today's drop and subsequent break below 1.2830 levels, bears would confirm that they are in control, and GBP/USD should continue dropping lower. The wave count suggests that wave (4) at a larger degree is in place now, and GBP/USD should accelerate lower into wave (5), unfolding into 5 sub waves. The long-term downside targets remain at 1.2000 and lower. Looking at the short-term wave count, after breaking below 1.2830 levels, a pullback rally should unfold before reversing again. Immediate resistance is at 1.2988 and support is at 1.2830 levels respectively.

Trading plan:

Please remain short with a slightly larger time frame view, stop above 1.2990 levels, a target is open.

Fundamental outlook:

With no major fundamental events lined up for today, please do not expect huge volatility for the rest of the day.

Good luck!

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Fundamental Analysis of AUD/JPY for May 11, 2017

AUD/JPY has been trading in a bullish bias as it remained above 82.90 support level. Fundamentally, AUD is quite stronger than JPY that is displayed in the chart as well. Today Japan's Bank Lending report was published with the unchanged score at 3.0% which was expected to increase to 3.2%. Japan's Current Account report also showed a downward figure at 1.73trln which was expected to be at 1.75trln. Besides, Economic Watchers statement showed a minor increase to 48.1 which was expected to be at 47.9. On the other hand, Australia does not have any economic events today but the Retail Sales negative report which was published on Tuesday, has not affected the AUD gain against JPY recently. Currently, AUD is expected to advance further against JPY if Japan does not post any negative fundamental data in the coming days.

Now let us look at the technical chart. The price is currently above 20 EMA and 82.90 support level which signals that the bulls are quite strong against bears above these levels. Currently we are expecting bullish move with a target towards the next resistance at 85.50-86.00. As the price remains above 82.90, the bullish bias is expected to continue the journey towards 85.50-86.00 resistance area. If the price breaks below 82.90 with a daily close, then we will change our bullish bias to bearish. Until then we are in bullish bias in this pair.

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Fundamental Analysis of EUR/AUD for May 11, 2017

EUR/AUD has recently bounced off from 1.4880 resistance level after an impulsive non-volatile bullish trend. Today, Germany presented WPI report which revealsed a positive figure of 0.3%, better than the forecast for a minor 0.1% growth. ECB Economic Bulletin and EU Economic forecast will be published today in a few hours that are expected to bring higher volatility to this pair. On the other hand, on Tuesday Australia released a negative Retail Sales report showing a contraction of -0.1% instead of the expected growth of 0.3%. This triggered some volatility in the market where AUD lost some grounds against EUR recently. Currently if the meetings in the eurozone today come out hawkish, then we might see EUR gaining more strength against AUD.

Now let us look at the technical chart. The price has been in a volatile corrective structure throughout the week after bouncing back from 1.4880 resistance level. Currently, the price is expected to move down towards 1.4600 in the coming days with a bearish bias. We can consider selling this pair until the price breaks above 1.4900 with a daily close.

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NZD/USD Intraday technical levels and trading recommendations for May 11, 2017

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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 keep 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. Any daily candlestick closure below 0.6850 invalidates the bullish scenario for the current time.

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

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GBP/USD analysis for May 11, 2017

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Recently, the GBP/USD pair has been trading sideways at the price of 1.2920. According to the daily time frame, I found a fake breakout of 20 days high in the background, which is a sign tha buying looks risky. My advice is to watch for selling opportunities. The downward targets are set at the price of 1.2825 and 1.2760. The short-term trend is upward but I found that buyers lost power and that we may see at least a pullback.

Resistance levels:

R1: 1.2975

R2: 1.2990

R3: 1.3015

Support levels:

S1: 1.2925

S2: 1.2910

S3: 1.2885

Trading recommendations for today: consider potential selling opportunities.

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USD/CAD intraday technical levels and trading recommendations for May 11, 2017

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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). The expected bullish target would be located around 1.3950 and 1.4030 (the upper side of the depicted channel and FE 100%).

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USD/JPY analysis for May 11, 2017

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Recently, the USD/JPY pair has been trading sideways near to the price of 114.00. According to the 4H time frame, I found a fake breakout of yesterday's high at 114.32, which is a sign that buying looks risky. My advice is to watch for selling opportunities. The downward targets are set at the price of 113.65 and 113.10. The short-term trend is upward but I found that buyers lost power and that we may see at least a pullback.

Resistance levels:

R1: 114.35

R2: 114.55

R3: 114.85

Support levels:

S1: 113.80

S2: 113.65

S3: 113.35

Trading recommendations for today: consider potential selling opportunities.

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Daily analysis of major pairs for May 11, 2017

EUR/USD: A bearish signal has been generated in the market. The EMA 11 has crossed the EMA 56 to the downside and the Williams' % Range period 20 is already in the oversold region. This shows that the market is weak and there could be a pullback today or tomorrow, which may take price towards the support lines at 1.0850 and 1.0800.

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USD/CHF: The USD/CHF pair went upwards this week, gaining about 210 pips. Price is now above the support level at 1.0050, going towards the resistance level at 1.0100. Once the resistance level at 1.0100 is breached to the upside, the next target would be the resistance level at 1.0150. Some fundamental figures are expected today and they may have a huge impact on the market.

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GBP/USD: There is Bullish Confirmation Pattern in the Cable 4-hour chart, and a further bullish movement is possible this week, though the market has consolidated in the last few days. A rise in momentum is expected, which would most probably favor bulls. The distribution territories at 1.3000 and 1.3050 could still be breached.

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USD/JPY: This currency trading instrument has gone further upwards this week. There is a Bullish Confirmation Pattern on the 4-hour chart. The RSI period 14 is above the level 50, plus the EMA 11 is above the EMA 56. A further bullish movement is anticipated, which would take price towards the supply level at 114.50 and 115.00.

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EUR/JPY: There is a bullish outlook for EUR/JPY, although price has consolidated so far this week. A breakout is imminent in the market, which would happen this week or next. When it happens, it would most likely be in favor of bulls, as price goes further upwards.

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Global macro overview for 11/05/2017

Global macro overview for 11/05/2017:

The industrial production data from the UK was slightly worse than expected. Market participants expected an increase in the industrial output from -0.8% last month to -0.4% for the reported month, but the number release was at the level of -0.5%. On a yearly basis, the industrial output decreased from 2.5% to 1.4%, but it is still above zero percent. Interestingly, the Markit PMI data was released at the three-years high last week, and the mood in the manufacturing sector still looks encouraging. The UK post-Brexit economy is still performing well. So far there have been no reasons to worry about further results.

Let's now take a look at the GBP/JPY technical picture on the H4 timeframe. The market is trading just below the important technical resistance at the level of 148.40 and the trading conditions look very overbought with a visible bearish divergence between the price and momentum indicator. Some corrective pullback might be developing and the next technical support is seen at 147.07 - 146.69 and then at the level of 145.61. Bigger time frames, like daily and weekly, do not show any negative divergences yet.

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Global macro overview for 11/05/2017

Global macro overview for 11/05/2017:

The Reserve Bank of New Zealand decided to hold the interest rate at the level of 1.75% as expected. In the statement, the RBNZ said, that "the growth outlook remains positive, supported by on-going accommodative monetary policy, strong population growth, and high levels of household spending and construction activity". Nevertheless, the inflation still remains above the RBNZ target (inflation climbed to 2.2% in the first quarter, much higher than the central bank's projection of 1.5%). Amid a steady pace of the economic growth, many analysts see an interest rate hike in New Zealand's medium-term outlook.

Let's now take a look at the NZD/USD technical picture on the H4 timeframe. The lack of reaction to positive changes in the macroeconomic environment has brought a notable correction of the recent strength of the NZD, the strongest currency G-10 in May until yesterday evening. The market fell towards 0.6800 and breached the key support zone at the level of 0.6838 with a low at the level of 0.6818.Currently, the price is testing the level of 0.6847, but the market is still looking weak at the moment. The next support is seen at the level of 0.6674.

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Trading plan for 11/05/2017

Trading plan for 11/05/2017:

The main event of the Asian session was a sell-off in the New Zealand dollar after the Reserve Bank of New Zealand announced its interest rate decision. WTI oil remains strong on the back of the US Department of Energy report. A barrel is priced at $47.50. EUR/USD is 20 pips above yesterday's 1.0850. USD/JPY momentum has diminished, but the rate is still above 114.00

On Thursday 11th of May, the main event of the day is the Bank of England interest rate decision, the inflation report, and the monetary policy statement. Moreover, later in the US session more data will be released: PPI index and the unemployment claims from the US and the new housing price index from Canada.

Analysis of GBP/USD for 11/05/2017:

The Bank of England interest rate decision, the inflation report and the monetary policy statement are scheduled for release at 11:00 am GMT. Market participants do not expect any interest rate hike, so it should remain unchanged at the level of 0.25%, together with the asset purchase program at 435 billions of pounds. The question remains whether the BOE inflation report will signal further acceleration, hinting a possibility of a rate hike. The UK inflation has been moving above the central bank's 2.0% target in recent months. The other factor is the uncertainty over next month's general election in the UK.

Let's now take a look at the GBP/USD technical picture on the H4 timeframe. The market is still trading close to 1.3000 between the levels of 1.2859 - 1.2990. An unexpected rate hike or a hawkish tone of the inflation report might easily cause a rally past 1.3000 level. On the other hand, if the BoE maintains the current policy stance, the market will likely return to the trading range or perform a small pullback towards the lower range boundary at the level of 1.2828.

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Analysis of EUR/USD for 11/05/2017:

The producer price index and the initial jobless claims are scheduled for release at 12:30 pm GMT. Market participants anticipate the PPI increased by 0.2% after falling by 0.1% a month ago, so a slight inflationary pressure is expected. The US labour market is showing signs of strength again, so today's weekly update on new filings for unemployment benefits is expected to confirm the rebound. The jobless claims are forecasted to rise slightly from 238k to 245k, so this numbers will provide more arguments to the Fed in favor of a rate hike at the next month's FOMC meeting.

Let's now take a look at the EUR/USD technical picture on the H4 timeframe. The market is trading below the golden trend line, just above the important technical support at the level of 1.0851. Market conditions are oversold and there is a slight bullish divergence visible between the price and the momentum oscillator. Therefore, it is possible that the price will bounce from the current level before reversing downward again. The next resistance is seen at the level of 1.0914.

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Market snapshot: Crude Oil broke above the resistance

Amid the yesterday's data, oil bulls have managed to violate the important technical resistance at the level of $47.10 and now the price is rallying towards the next resistance at $48.18. Market conditions are about to become overbought, so the breakout and pullback for a test from the upside is the preferred scenario for oil now.

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Elliott wave analysis of EUR/JPY for May 11, 2017

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Elliott wave analysis of EUR/JPY for May 11, 2017

Ichimoku indicator analysis of USDX for May 11, 2017

The Dollar index is trading around the 38% Fibonacci retracement of the decline from 101.35. I expect the Dollar index to move lower from current levels. The recent lows are expected to be tested.

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In the short term, price remains above both the kijun- and the tenkan-sen. Support is at 99.54. If we see a 4-hour candle close below it, we should expect price to move towards 99.10 where the cloud support and the kijun-sen indicator are found.

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Red line - resistance

Green line - support

The Dollar index is trying to move back above the long-term trend line support. Resistance is found at 100.14 and 100.60 by the red trend line resistance. Bulls need to hold above this week's lows and break above 100.60. A new weekly low will be a very bearish sign.

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Ichimoku indicator analysis of gold for May 11, 2017

Gold price is still trading above $1,200-$1,210. Judging by the divergence signs, we suppose a bounce to at least $1,260 is very close.

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Blue lines - bearish channel

Red lines - bullish divergence

Gold price remains in a bearish trend but is trying to break above the kijun-sen indicator on the 4-hour chart. Price remains below the 4-hour Kumo (cloud). Resistance is at $1,237 and the next one is seen at $1,260.

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Red rectangle - target area

Gold price is expected at least to make a move towards the daily cloud and red rectangular area. This is where the 38% and 61.8% Fibonacci retracement levels are found. Only a strong break above this area will open the way for a move above $1,300. Otherwise, the upward move to $1,400 will be delayed and we might see $1,160 first.

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Technical analysis of USD/CHF for May 11, 2017

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Overview:

  • The USD/CHF pair continues to move upwards from the level of 1.0033. Today, the first support level is currently seen at 1.0033, the price is moving in a bullish channel now. Furthermore, the price has been set above the strong support at the level of 1.0033, which coincides with the 61.8% Fibonacci retracement level. This support has been rejected three times confirming the veracity of an uptrend. According to the previous events, we expect the USD/CHF pair to trade between 1.0033 and 1.0093. So, the support level is seen at 1.0033, while daily resistance is found at 1.0093. Therefore, the market is likely to show signs of a bullish trend around the spot of 1.0033. In other words, buy orders are recommended above the spot of 1.0033 with the first target at the level of 1.0093; and continue towards 1.0128. On the other hand, if the NZD/USD pair fails to break through the resistance level of 1.0128 today, the market will decline further to 0.9991 way off in the future.
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Technical analysis of NZD/USD for May 11, 2017

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Overview:

  • The NZD/USD pair continues to move downwards from the level of 0.6935. Yesterday, the pair dropped from the level of 0.6935 (this level of 0.9965 coincides with the ratio of 50% Fibonacci retracement) to the bottom around 0.6817. Today, the first resistance level is seen at 0.6873 (the daily pivot point) followed by 0.6907, while daily support 1 is found at 0.6817.Besides, the level of 0.6907 represents a weekly pivot point for that it is acting as minor resistance in an hour. Amid the previous events, the pair is still in a downtrend, because the NZD/USD pair is trading in a bearish trend from the new resistance line of 0.6907 towards the first support level at 0.6817 in order to test it. So, sell below 0.6907 with the first target at 0.6718 in order to test yesterday's bottom. If the pair succeeds to pass through the level of 0.6817, the market will indicate a bearish opportunity below the level of 0.6817 in order to continue towards the next objectives of 0.6780 and 0.6750. However, if a breakout happens at the resistance level of 0.6917, then this scenario may be invalidated.
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Technical analysis of USD/JPY for May 11, 2017

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USD/JPY is expected to trade in a higher range. The pair validated an intraday triangle pattern, and resumed its uptrend. A bullish cross has been identified between the 20-period and 50-period moving averages, which should confirm a positive outlook. Besides, the relative strength index is bullish above its neutrality area at 50.

To conclude, as long as 113.95 holds on the downside, look for a continuation of the rebound to 114.40 and 114.70 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 114.40 and the second one at 114.70. In the alternative scenario, short positions are recommended with the first target at 113.60 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 113.40. The pivot point lies at 113.95.

Resistance levels: 114.35, 114.70, and 115.00

Support levels: 113.60, 113.10, and 112.65

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Technical analysis of USD/CHF for May 11, 2017

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USD/CHF is expected to extend a bullish bias. The pair recorded a succession of higher tops and higher bottoms since May 8 and is holding on the upside. The relative strength index is above its neutrality level at 50 and lacks downward momentum. A support base has formed around 1.0055, which should limit the downside potential.

The U.S. dollar remains firm as investors are still optimistic about the economy and expect the Federal Reserve to raise interest rates next month. Meanwhile, the U.S. Labor Department reported that import prices increased 0.5% on month in April, much faster than +0.1% expected. At the same time, Federal Reserve Bank of Boston President Eric Rosengren confirmed that the Fed could raise interest rates three more times this year.

As long as this key level is not broken, look for a further upside toward 1.0125 and even 1.0160 in extension.

Resistance levels: 1.0125, 1.0160, and 1.0095

Support levels: 1.0020, 0.9975, and 0.9930

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Elliott wave analysis of EUR/NZD for May 11, 2017

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Wave summary:

We have seen the expected decline closer to 1.5645 (the low came in at 1.5588) before a strong recovery was seen. We will now be looking for a break above 1.6020 as confirmation that the next impulsive rally higher towards 1.6655 is developing.

Short-term, we should see support in the 1.5726 - 1.5764 area for the expected break above 1.6020.

Only an unexpected break below support at 1.5588 will delay the expected rally in a more complex correction.

R3: 1.6100

R2. 1.6020

R1: 1.5958

Pivot: 1.5900

S1: 1.5806

S2: 1.5764

S3: 1.5726

Trading recommendation:

We bought EUR at 1.5665 and will place our stop at 1.5585. If you are not long EUR yet, then buy in the 1.5726 - 1.5764 area and use the same stop.

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Technical analysis of NZD/USD for May 11, 2017

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NZD/USD is expected to trade in lower range. The pair broke below its former key support at 0.6880, which becomes a key resistance now, and accelerated on the downside. The relative strength index has broken below its 30% level. The 20-period moving average crossed below the 50-period one, which is negative.

As long as 0.6880 holds on the upside, look for a further drop towards 0.6800 and even 0.6775 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 0.6800. A break below this target will move the pair further downwards to 0.6775. The pivot point stands at 0.6880. 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 0.6915 and the second one at 0.6950.

Resistance levels: 0.6915, 0.6950, and 0.6980

Support levels: 0.6800, 0.6775, and 0.6730

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Elliott wave analysis of EUR/JPY for May 11, 2017

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Wave summary:

We continue to look for a deeper correction in wave B and continue to expect a decline closer to 122.94 and ideally closer to 122.33 before we will start to look for renewed upside pressure.

Short term, a break below minor support seen at 124.06 will indicate more downside to 123.45 and 122.94 on the way towards the ideal target near 122.33.

R3: 124.53

R2: 124.26

R1: 124.16

Pivot: 124.00

S1: 123.70

S2: 123.60

S3: 123.45

Trading recommendation:

We will be looking for a new buying opportunity near 122.33

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Technical analysis of GBP/JPY for May 11, 2017

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GBP/JPY is expected to continue its upside movement. The pair remains above the 20-period moving average which stays above the 50-period moving average. Besides, the relative strength index is still above its neutrality area at 50, and is positively oriented.

As long as 147.15 is not broken down, further advance is preferred with 148.20 and 148.65 as targets.

The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. Therefore, long positions are recommended with the first target at 148.20 and the second one at 148.65. In the alternative scenario, short positions are recommended with the first target at 146.80 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 146.35. The pivot point lies at 147.15.

Resistance levels: 148.20, 148.65, and 149.35

Support levels: 146.80,146.35, and 145.70

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Daily analysis of USDX for May 11, 2017

The greenback continued to move with the bullish bias on Wednesday, approaching the 100.00 handle which is a key zone across the board. However, USDX may start to show some pullbacks in order to correct last session's rally. If the index manages to break above 99.63, then the next target should be placed at 100.00.

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H1 chart's resistance levels: 99.63 / 99.97

H1 chart's support levels: 99.23 / 98.77

Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the USD Index breaks with a bullish candlestick; the resistance level lies at 99.63, take profit is located at 99.97 and stop loss is found at 99.28.

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Daily analysis of GBP/USD for May 11, 2017

GBP/USD is awaiting the BOE interest rate decision. In a technical view, the pair remains capped by a strong resistance placed around 1.2957, formed by a congestion zone which has been holding since April 28th. If the cable manages to break it, then we can expect a bullish acceleration towards the 1.3030 hurdle.

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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, place buy (long) orders only if the GBP/USD pair breaks a bullish candlestick; the resistance level is at 1.2957, take profit lies at 1.3029 and stop loss is found at 1.2887.

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Daily Video Technical Analysis | NZD/USD | 10th May 2017

We take a nice detailed look at NZD/USD and see if there are any trading opportunities for us to make some juicy pips!

We combine the art of Fibonacci retracements, Fibonacci extensions, Support & Resistance along with Stochastic and RSI to determine the best entry, stop loss and profit targets.

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

NZD/USD profit target reached, time to start buying

NZD/USD has dropped and reached our profit target. We are looking for buying opportunities above 0.6833 support (Fibonacci retracement, Fibonacci extension, horizontal overlap support) for a push up to 0.6940 resistance (Fibonacci extension, Fibonacci retracement, horizontal swing high resistance).

Stochastic (21,5,3) is seeing strong support above 9.2% from where we expect a bounce.

Correlation analysis: NZD/USD and AUD/USD are positively correlated meaning they usually move together in the same direction. We are expecting the both pairs to rise which goes well with the positive expected correlation.

Buy above 0.6883. Set stop loss at 0.6857 and take profit at 0.6940.

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AUD/USD remains bullish above strong support

AUD/USD is now testing the major support at 0.7332 (Fibonacci extension, Elliott wave theory) and we expect a bounce above this level to at least 0.7426 resistance (Fibonacci retracement, horizontal swing high resistance).

Stochastic (55,5,3) is seeing major support above the 4% level from which we expect a bounce.

Correlation analysis: AUD/USD has a strong positive correlation with NZD/USD which means they usually move together. We expect the both pairs to rise.

Buy above 0.7332. Set stop loss at 0.7290 and take profit at 0.7426.

analytics591332f8efb01.png

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