GBP/USD analysis for May 16, 2017

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Recently, the GBP/USD pair has been trading upwards. The price tested the level of 1.2957. Anyway, according to the 1H time frame, I found a fake breakout of yesterday's high, which is a sign of weakness. There is a strong up-thrust (a reversal bar) in the background, which is another sign that sellers are in control today on GBP/USD. My advice is to watch for selling opportunties. The downward targets are set at the price of 1.2840 and 1.2760

Resistance levels:

R1: 1.2927

R2: 1.2935

R3: 1.2940

Support levels:

S1: 1.2910

S2: 1.2905

S3: 1.2895

Trading recommendations for today: watch for potential selling opportunities.

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Analysis of Gold for May 16, 2017

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Recently, Gold has been trading upwards. As I expected, the price tested the level of $1,237.34. Anyway, I still epxect higher price. Today I found an open and dive type of trading, which is a bullish session type. In the background, I found a broken trading range, which is another sign of strength. The price is also trading above 5-simple moving average. Watch for buying opportunities. Upwards targets are set at the price of $1,240.00 and $1,245.00.

Resistance levels:

R1: $1,235.00

R2: $1,236.10

R3: $1,237.15

Support levels:

S1: $1,233.40

S2: $1,232.75

S3: $1,231.70

Trading recommendations for today: consider potential buying opportunities.

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Daily analysis of major pairs for May 16, 2017

EUR/USD: The EUR/USD pair made some bullish attempt yesterday, and that action has invalidated the last short-term bearish signal in the market. Price is currently above the support line at 1.0950, going towards the resistance line at 1.1000.

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USD/CHF: The USD/CHF pair has almost generated a bearish signal on the 4-hour chart. The bearish movement began on May 12, 2017, and continued yesterday. As soon as the resistance level at 1.0000 was breached to the downside, a bearish bias was formed. A movement below the support level at 0.9950 would result in a stronger Bearish Confirmation Pattern in the market.

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GBP/USD: The Cable is still consolidating – something that was started last week. A closer look at the market reveals that the uptrend is getting tired, thereby increasing chances of a large pullback, which could happen this week. A movement below the accumulation territory at 1.2800 would result in a bearish bias.

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USD/JPY: This currency trading instrument has been able to retain its bullishness in spite of its short-term sideways movement. A movement above the supply level at 114.00 would result in a stronger bullish outlook, while a movement below the demand level at 112.00 would result in bearish outlook.

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EUR/JPY: This cross has been able to exert its bullish strength. Price moved further north on Monday, to continue the northwards movement it started on April 24. Price has gone upwards by over 600 pips since April 24, 2017, and this seems to just be the beginning. Only a significant pullback can serve as a threat to the bullish trend.

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USD/CAD intraday technical levels and trading recommendations for May 16, 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). 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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NZD/USD Intraday technical levels and trading recommendations for May 16, 2017

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In December 2016, 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 clearing the way initially towards 0.6770.

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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Global macro overview for 16/05/2017

Global macro overview for 16/05/2017:

The European ZEW Sentiment data beat expectations. Global investors expected ZEW at the level of 29.1 points but the figure revealed came in at 35.1 points, better than a month ago. On the other hand, the ZEW Sentiment index for Germany was better than a month ago at the level of 20.1 points, but below expectations of 22.3 points. The flash GDP reading from the Eurozone was in line with expectations at the level of 0.5% and the trade balance was better than expected as well (23.1Bln versus 18.8Bln a month ago). In conclusion, a bunch of good data from the Eurozone released this morning helped to improve the sentiment and the euro is rallying across the board.

Let's now take a look at the EUR/JPY technical picture on the H4 timeframe. The market is making a new higher high at the level of 125.36 at the time of writing. The price is still moving inside of a bullish golden channel. But there is a visible divergence between the price and the momentum oscillator. The market conditions are close to overbought, so if the level of the immediate support at the level of 124.51 is clearly violated, then the corrective pullback is in progress. The target is projected at the level of 123.26.

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Ichimoku indicator analysis of gold for May 16, 2017

Gold price is trading in a neutral zone inside the 4-hour Kumo. Trend has changed to neutral and price has bounced as we expected from the support area of $1,210-20.

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Blue lines -bearish channel

Gold price has broken out of the bearish channel. Short-term resistance is at $1,242 and next at $1,250-60. As long as the metal is trading below the $1,260 level, we could get rejected very well and push to new lows below $1,200 or even below $1,180.

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Red rectangle

Gold price is bouncing as expected and we foresee a move towards the 50% and 61.8% Fibonacci retracement area where the red rectangle is found and the daily Kumo as well. Price should break this resistance for a push above $1,300. Otherwise, we are in danger of breaking below $1,200.

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Global macro overview for 16/05/2017

Global macro overview for 16/05/2017:

The Reserve Bank of Australia Meeting Minutes did not trigger any dramatic turnaround in the AUD market. The general RBA's point of view is still dovish and positive, but the risks around rapid house price growth remains a principal concern. It was clearly expressed in this passage: "Growth in housing credit had continued to outpace growth in household incomes, which suggested that the risks associated with household balance sheets had been rising". To prevent the risks of spreading across other assets, the Australian government has reinforced prudent lending standards and ensured that loan serviceability was appropriate under the current financial backdrop. If, however, the situation gets worse, then policymakers suggest that the Council of Financial Regulators could take further measures to cool the sector's growth. In conclusion, there is no need to panic yet even if the Australian house market is slightly overheated.

Let's now take a look at the AUD/USD technical picture on the H4 timeframe. The market keeps trading inside of the golden channel, currently in the middle of it. The bias remains bearish as the market conditions look overbought and the price is struggling to break out above the technical resistance at the level of 0.7438. The immediate support is seen at the level of 0.7394, but any violation of this level would lead to immediate test of the local swing low at the level of 0.7328.

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Trading plan for 16/05/2017

Trading plan for 16/05/2017:

The overnight publication of the RBA minutes did not cause higher volatility during the Asian session. Significant strengthening was noted by the Chinese Yuan, whose exchange rate was set by the central bank at 6.877 per Dollar at the end-April minima. Among the Asian stock indices, the Nikkei 225 (0.3%) is dominant as it tried to break through 20,000 points.

On Tuesday 16th of May, the event calendar is busy with some important data releases, so market participants will pay attention to the CPI data from the UK, ZEW Economic Sentiment data from Germany, and Building Permits data from the US.

GBP/USD analysis for 16/05/2017:

The CPI data are scheduled for release at 09:30 am GMT and market participants expect a nice increase from 2.3% to 2.6% in the reported month. This better than the last month data was signaled last week during the Bank of England inflation report, where they indicated a significant uptick in inflationary pressure. If the data is in line with the consensus, then the British Pound could appreciate higher across the board.

Let's now take a look at the GBP/USD technical picture on the H4 timeframe. The market is still trading above the technical support between the levels of 1.2705 - 1.2772. As long as this zone is not clearly violated, the outlook remains bullish. Currently, the price is trying to rally towards the 1.3000 level again, after the successful golden trend line test. If the data will be in line or better than expectations, then the 1.3000 might be reached easily. The next support is seen at the level of 1.2881.

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EUR/USD analysis for 16/05/2017:

The German ZEW Economic Sentiment and overall Eurozone ZEW Economic Sentiment are both scheduled for release at 10:00 am GMT. Market participants expect the sentiment to improve from 19.5 points to 22.3 points in Germany and from 26.3 points to 29.1 points in the Eurozone. The main reason for the sentiment improvement is Emmanuel Macron's win in the presidential election in France, which pushed away Marine LePen from ruling the France.

Let's now take a look at the EUR/USD technical picture on the H4 timeframe. The bulls have managed to make a new high at the level of 1.1026 at the time of writing, without even trying to fill the gap between the levels of 1.0730 - 1.0820. Nevertheless, the market conditions are overbought and the rally might be short-lived. The next important resistance is seen at the level of 1.1298 and the immediate support is seen at the level of 1.1020 and 1.0996.

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Market snapshot: USD/CAD is trading around yesterday's low

After the Crude Oil rally towards $50, the USD/CAD pair moved lower and currently is trading slightly above the support at the level of 1.3601. The trading conditions look oversold, but there is no visible bullish divergence yet. If the price of Crude Oil keeps advancing higher, then USD/CAD should follow lower towards the next technical support at the level of 1.2529.

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Ichimoku indicator analysis of USDX for May 16, 2017

The US dollar index did not bounce yesterday and broke through the support. The last chance for dollar bulls is to make a double bottom at 98 and then bounce. The weekly trend line is broken and dollar bulls need to show more strength if they want the trend to reverse to the upside.

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Red line - resistance (broken)

The dollar index has broken below the 4 hour cloud. The price could be back testing the red trend line resistance that was broken. Support lies at the May lows at 98.48 and we could see a double bottom here. If the support fails to be broken, we should expect 98 to be tested and most probably broken.

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Red line - resistance

Green line - long-term support trend line

The Dollar index broke below and back-tested the green trend line resistance. Price tried to move above it again but got rejected. USDX may move towards the weekly Kumo support at 97.80-97.50. This is my next target from where we could see a considerable bounce in the index.

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Fundamental Analysis of GBP/USD for May 16, 2017

GBP/USD has been in a volatile corrective structure after a break above 1.2800. For the recent 2 weeks, the price has been stalling between 1.2800 to 1.3000. Today, a good amount of volatility is expected in GBP because of the high impact economic news. Among them is UK CPI report which is expected to rise to 2.6% which previously was at 2.3%. PPI Input is expected to decrease to 0.1% which previously was at 0.4%. Besides, RPI is expected to increase to 3.4% which previously was at 3.1%. On the other hand, we have US Building Permits report which is expected to be unchanged at 1.27M, Housing Starts are expected to increase to 1.26M which previously was at 1.22M, Capacity Utilization report could show a slight increase to 76.3% which previously was at 76.1%. Eventually, Industrial Production report is expected to log a decrease to 0.4% in April from 0.5% in March. GBP has an upper hand over USD currently. However, due to high impact news from the UK and US today we might experience spikes in the market today.

Now let us look at the technical chart. The price is currently in a corrective structure above 20 EMA and horizontal support area of 1.2750-1.2800. Due to yesterday's bullish rejection on the daily candle, now we expect the price to move down towards the support area of 1.2750-1.2800 and reject the sellers off the level and show some bullish move towards next resistance of 1.3370. On the other hand, if the price breaks below 1.2750 with a daily close, then we will consider sell positions with a target towards 1.2550, till then we are in a bullish bias.

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Elliott wave analysis of EUR/NZD for May 16, 2017

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Elliott wave analysis of EUR/NZD for May 16, 2017

Fundamental analysis of EUR/JPY for May 16, 2017

EUR/JPY has recently broken above the corrective structure after breaking above 123.50 resistance level. EUR is expected to extend gains in the coming days as it has cleared above the corrective structure. Today, we have the flash GDP report from the eurozone which is expected to be unchanged at 0.5%. Moreover, the German ZEW economic sentiment is expected to increase to 22.3 versus the revious reading of 19.5. The trade balance is expected to decrease to 18.8B which previously was at 19.2B. On the other hand, Japan presented negative reports today. The Tertiary Industry Activity came at -0.2% which was expected to be positive at 0.1%. JPY is currently trading weaker against EUR which has a scope for climbing further upwards in the coming days.

Now let us look at the technical view. The price has broken above the corrective structure resistance of 124.50 with a daily close yesterday. Currently, the price is correcting above this level. As long as the price remains above 123.50 support level, our bias will be bullish with a target towards 127.25. We may see some retracement towards 124.50 or 123.50 support levels before the pair moves up towards 127.25 resistance level. In this scenario, our bullish bias will change if the price breaks below 123.50 with a daily close.

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Technical analysis of USD/JPY for May 16, 2017

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USD/JPY is expected to trade with a bearish outlook as the key resistance at 113.90. Although the pair posted a rebound from 113.15 (the low of May 12), it is still trading below the key resistance at 113.90, which should limit the upside potential. The relative strength index lacks upward momentum. Even though a continuation of a technical rebound cannot be ruled out, its extent should be limited.

To sum up, as long as 113.90 is not surpassed, look for a return to 113.15 and even to 112.85 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 113.15. A break below this target will move the pair further downwards to 112.85. The pivot point stands at 113.90. If the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, long positions are recommended with the first target at 114.10 and the second one at 114.35.

Resistance levels: 114.10, 114.35, and 114.70

Support levels: 113.15, 112.85, and 112.55

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Technical analysis of USD/CHF for May 16, 2017

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USD/CHF is expected to continue its downside movement. The pair is trading below the declining 20-period and 50-period moving averages, which play resistance roles and maintain the downside bias. The relative strength index is below its neutrality level at 50 and lacks upward momentum.

On the economic data front, Empire Manufacturing index declined to 1.0 in the month of May (expected +7.5), a drop from the 5.2 improvement in the month of April. Additionally, Net long-term TIC Flows were $59.8 billion in the month of March, increasing from $53.1 billion in the month of February.

To conclude, as long as 0.9995 is not surpassed, a further drop to 0.9935 and even to 0.9900 seems more likely to occur.

Resistance levels: 1.0020, 1.0040, and 1.0060

Support levels: 0.9935, 0.9900, and 0.9865

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Technical analysis of NZD/USD for May 16, 2017

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NZD/USD is expected to trade with a bullish bias. The pair posted a rebound and broke above the 20-period and 50-period moving averages. The relative strength index is bullish above the neutrality level at 50 and is calling for a further upside. In addition, the downside potential should be limited by the key support at 0.6855.

To conclude, as long as this key support holds on the downside, expect a new rise to 0.6920 and even to 0.6950 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 0.6950. In the alternative scenario, short positions are recommended with the first target at 0.6835 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 0.6815. The pivot point is at 0.6855.

Resistance levels: 0.6920, 0.6950, and 0.6970

Support levels: 0.6835, 0.6815, and 0.6775

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Technical analysis of GBP/JPY for May 16, 2017

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GBP/JPY is expected to extend its upside movement. The pair recorded a succession of higher tops and higher bottoms and is holding on the upside. The rising 50-period moving average is playing a support role and maintains the upside bias. The relative strength index is above its neutrality level at 50 and lacks downward momentum.

As long as 146.15 holds on the downside, look for a further advance towards 147.00 and even 147.35 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 147.00 and the second one at 147.35. In the alternative scenario, short positions are recommended with the first target at 145.70 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 145.35. The pivot point is at 146.15.

Resistance levels: 147.00, 147.35, and 148.60

Support levels: 145.70,145.35, and 144.65

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Elliott wave analysis of EUR/NZD for May 16, 2017

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Wave summary:

The wave [ii] correction from 1.5941 could have completed early at 1.5803 and wave [iii] higher is now developing. For this outlook to be true, we need an impulsive break above resistance seen at 1.6020 soon. Otherwise, this more complex correction in wave [ii] will be expected for a move closer to 1.5723 before wave [iii] will be ready to take over for the next impulsive rally towards 1.6655.

R3: 1.6469

R2: 1.6200

R1: 1.6020

Pivot: 1.5950

S1: 1.5867

S2: 1.5806

S3: 1.5764

Trading recommendation:

We are long EUR from 1.5665 with stop placed at 1.5585. If you are not long EUR yet, then buy near 1.5764 or upon a break above 1.6020 and use the same stop at 1.5585.

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Elliott wave analysis of EUR/JPY for May 16, 2017

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Wave summary:

The break directly above 124.54 invalidated the triangle option, but we doubt that this break is the start of a new impulsive rally, but rather part of an expanded flat correction which is still calling for renewed downside pressure soon to below 122.94 to complete the correction in wave B.

Short term, a break below minor support seen at 124.55 will indicate that a top is in place for renewed downside pressure towards 123.26 and 122.94.

R3: 125.56

R2: 125.18

R1: 124.96

Pivot: 124.55

S1: 124.30

S2: 123.98

S3: 123.52

Trading recommendation:

We bought EUR at 124.54 and will place stop+reverse at 124.54. Take profit + reverse will be placed at 125.25.

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Technical analysis of EUR/USD for May 16, 2017

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When the European market opens, some economic data will be released such as ZEW Economic Sentiment, Trade Balance, German ZEW Economic Sentiment, Flash GDP q/q, Italian Prelim GDP q/q, and French Final CPI m/m. The US will post a series of economic reports such as Mortgage Delinquencies, Industrial Production m/m, Capacity Utilization Rate, Housing Starts, and Building Permits. So amid the reports, EUR/USD will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Breakout BUY Level: 1.1033.

Strong Resistance:1.1027.

Original Resistance: 1.1016.

Inner Sell Area: 1.1005.

Target Inner Area: 1.0980.

Inner Buy Area: 1.0955.

Original Support: 1.0944.

Strong Support: 1.0933.

Breakout SELL Level: 1.0927.

Disclaimer: Trading Forex (foreign exchange) on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

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Technical analysis of USD/JPY for May 16, 2017

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In Asia, Japan will release the Tertiary Industry Activity m/m. The US will also present some economic data such as Mortgage Delinquencies, Industrial Production m/m, Capacity Utilization Rate, Housing Starts, and Building Permits. So there is a probability the USD/JPY pair will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Resistance 3: 114.20.

Resistance 2: 113.98.

Resistance 1: 113.75.

Support 1: 113.48.

Support 2: 113.26.

Support 3: 113.03.

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/CHF for May 16, 2017

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Overview:

  • The USD/CHF pair dropped down from the levels of 0.994 and 1.0044 in order to bottom at the point of 0.9960. Today, the pair is trading above its pivot point. It is likely to trade in a higher range as long as it remains above the level of 0.9882. Hence, the major support was already set at the level of 0.9882. Moreover, the double bottom is also coinciding around the major support today. Additionally, the RSI is still calling for a strong bullish market as well as the current price is also above the moving average 100. Therefore, it will be advantageous to buy above the current level of 0.9882 with the first target at 0.9994 in order to retest the daily resistance 1. From this point, if the pair closes above the weekly resistance 1 of 0.9994 , the USD/CHF pair may resume its movement to 1.0044 to form a new double top. 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 0.9812.
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Technical analysis of NZD/USD for May 16, 2017

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Overview:

  • The NZD/USD pair will continue moving downwards from the level of 0.6935. The pair has already dropped from the level of 0.6935, which coincides with the ratio of 50% Fibonacci retracement, to the bottom around 0.6817. 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. Amid the previous events, the pair is still in a downtrend. The NZD/USD pair is declining from the new resistance line of 0.6907 towards the first support level at 0.6817 in order to test it. Hence, we recommend to 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 0.6907, then you should set your stop loss at 0.6935.
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Daily analysis of USDX for May 16, 2017

The index is extending losses below the 200 SMA on the H1 chart and is trying to invalidate the bullish outlook that we've been managing since last week. So far, USDX has been approaching the support level of 98.77, where a breakout should open the doors to test the 98.47 zone. However, as this move can be still considered as corrective, we can expect further rebounds to re-test the 200 SMA.

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H1 chart's resistance levels: 99.15 / 99.50

H1 chart's support levels: 98.77 / 98.47

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 99.15, take profit is found at 99.50 and stop loss is at 98.81.

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Daily analysis of GBP/USD for May 16, 2017

The pair had a quite volatile session on Monday as gains from the early European session were quickly erased in the American session, pushing the Cable to consolidate again below the 1.2900 handle. At present, we're watching moves below the 200 SMA on H1 chart. The next support is still placed around 1.2855, while to the upside, GBP/USD targets the 1.2957 level.

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H1 chart's resistance levels: 1.2910 / 1.2957

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 1.2910, take profit is at 1.2957 and stop loss is at 1.2887.

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Daily Video Technical Analysis | AUD/USD | 15th May 2017

We take a nice detailed look at AUD/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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Technical analysis of USD/JPY for May 15, 2017

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USD/JPY is under pressure. The pair is trading below the declining 20-period and 50-period moving averages, which play resistance roles and maintain the downside bias. The relative strength index is below its neutrality level at 50.

Therefore, as long as 113.90 holds on the upside, look for a further drop to 113.15 and even to 112.85 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 113.15. A break below this target will move the pair further downwards to 112.85. The pivot point stands at 113.90. If the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, long positions are recommended with the first target at 114.35 and the second one at 114.70.

Resistance levels: 114.40, 114.70, and 115.00

Support levels: 113.15, 112.85, and 112.55

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Technical analysis of USD/CHF for May 15, 2017

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USD/CHF is expected to prevail its downside movement. The pair accelerated on the downside after breaking below the rising trend line, which emerged on May 9. The downward momentum is further reinforced by the descending 20-period and 50-period moving averages. The relative strength index is bearish and calls for a further drop.

On the economic data front, CPI month-on-month increased 0.2% in April, an improvement from a decrease of 0.3% in the month of March. In addition, retail sales month-on-month rose 0.4% in April (expected 0.6%), up from an increase of 0.1% in the previous month. Finally, the University of Michigan Consumer Sentiment improved to 97.7 in May in a preliminary estimate, a slight increase from 97.0 in the month of April.

To conclude, as long as 1.0020 is not surpassed, look for a new drop to 0.9935 and even to 0.9900 in extension.

Resistance levels: 1.0040, 1.0060, and 1.0080

Support levels: 0.9935, 0.9900, and 0.9865

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

Technical analysis of NZD/USD for May 15, 2017

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NZD/USD is expected to trade with bullish outlook. The pair posted a rebound and broke above the 20-period and 50-period moving averages. In addition, the 20-period moving average crossed above the 50-period one. The relative strength index lacks downward momentum.

Hence, as long as 0.6835 is not broken, look for a continuation of a technical rebound to 0.6930 and even to 0.6950 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 0.6930 and the second one at 0.6950. In the alternative scenario, short positions are recommended with the first target at 0.6815 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 0.6775. The pivot point is at 0.6835.

Resistance levels: 0.6930, 0.6950, and 0.6970

Support levels: 0.6815, 0.6775, and 0.6825

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

Technical analysis of GBP/JPY for May 15, 2017

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GBP/JPY is expected to trade with a bullish bias above 146.15. The pair is trading above the rising 50-period moving average, which is playing a support role and maintains the upside bias. The relative strength index is mixed with a bullish bias. Even though a continuation of the consolidation cannot be ruled out, its extent should be limited.

To sum up, above 146.15, look for a further upside to 147.35 and even to 147.60 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 147.35 and the second one at 147.60. In the alternative scenario, short positions are recommended with the first target at 145.70 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 145.35. The pivot point is at 146.15.

Resistance levels: 147.35, 147.60, and 148.40

Support levels: 145.70,145.35, and 144.65

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

EUR/AUD on strong resistance, time to start selling

Price is testing major resistance at 1.4810 (Fibonacci retracement, Fibonacci extension, bearish channel resistance) and we expect a drop from this level to at least 1.4693 support (Fibonacci extension, horizontal swing low support).

Stochastic (34,5,3) is seeing major resistance below the 97% level where we expect a drop from.

Correlation analysis: We're expecting overall EUR weakness today as seen in EUR/USD bearish move. We're also expecting AUD strength today as seen in AUD/USD bullish move. This combines well for a EUR/AUD bearish move.

Sell below 1.4810. Stop loss at 1.4881. Take profit at 1.4693.

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

AUD/USD profit target reached, remain bullish for a further push up

Price has bounced up and reached our profit target perfectly. We prepare to buy above 0.7377 support (Fibonacci retracement, horizontal overlap support) for a further push up towards 0.7441 resistance (Fibonacci retracement, horizontal pullback resistance, Elliott wave theory).

Stochastic (34,5,3) has made a bullish exit and sees further upside potential.

Correlation analysis: AUD/USD has a strong positive correlation with NZD/USD which means they usually move together. We are expecting a rise on AUD/USD and a drop on NZD/USD so it is best to exercise caution on these trades.

Buy above 0.7377. Stop loss at 0.7334. Take profit at 0.7441.

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