Daily analysis of Gold for May 18, 2017

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Overview

Gold price managed to confirm the return to the main bullish channel after closing yesterday's trade above 1,254.56 level. This reinforces expectations for a further bullish trend on the short-term basis. Besides, it provides signals of stopping the downward correction that set the tone for trading in the second half last month. Therefore, we still foresee the bullish trend in the upcoming sessions supported by the EMA50. Let me remind you that our next main target is at 1,295.37. Holding above 1,254.56 represents the main condition for a further bullish bias. The expected trading range for today is between 1,250.00 support and 1,280.00 resistance.

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Daily analysis of Silver for May 18, 2017

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Overview

Silver price are still holding above 16.80 level, and the EMA50 provides continuous positive support for the price. At the same time, stochastic is making attempts to get rid of its negativity, so solver is gaining momentum gradually that is seen on the chart of a four-hour time frame. Therefore, these factors encourage us to keep the bullish outlook for the upcoming sessions. The first target is seen at 17.43. Please bear in mind that holding above 16.56 represents the most important condition for a further rally. The expected trading range for today is between 16.70 support and 17.30 resistance

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Trading Plan for EUR/USD and GBP/USD for May 18, 2017

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Technical outlook:

The EUR/USD pair continued to probe higher highs yet again taking stops out above 1.1122 levels. Nonetheless, the wave structure still looks unchanged as depicted on a Daily chart here. The story begins from November 08, 2016 highs made at 1.1300 levels. The entire drop through 1.0350 levels can be still labelled as wave (1). After witnessing a number of alternative counts, the corrective wave (2) has unfolded as a complex A-B-C as shown above. Please note that the alternative label could be W-X-Y as a combination (not shown here). Besides, the pair is finding three resistance zones at this moment: The fibonacci 0.786 levels, channel line resistance, and support turned a resistance trend line. A bearish signal confirmation here should be considered as a selling point with risk above today's highs.

Trading plan:

Remain flat for now and go short again on bearish signal confirmation. Aggressive traders may go short, stop above today's highs and target lower.

GBPUSD chart setups:

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Technical outlook:

The GBP/USD pair has also rallied higher seeking resistance and looks like it has already met with today's highs being printed at 1.3040/45 levels. The wave count suggests that waves (1) and (2) are ready on the larger time frames or probably one last high may be printed at 1.3100 levels before reversing, chances are fewer though. A bearish reversal now would still keep the bearish wave structure intact and one can expect prices to drop towards 1.2000 and lower in the coming weeks. Only if GBP/USD rallies to greater highs above 1.3100 levels, the matter would be further delayed. Resistance should be strong around 1.3100 levels, while immediate support is seen at 1.2935 levels. A break below support here would confirm that a meaningful top is in place and accelerate drop.

Trading plan:

Please look to go short on bearish signal with stop above 1.3100 levels, targeting 1.2300 and lower.

Fundamental outlook:

Watch out for Draghi's speech today around 01:00 pm est for a bit volatility in EUR/USD.

Good luck!

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NZD/USD Intraday technical levels and trading recommendations for May 18, 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, a 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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USD/CAD intraday technical levels and trading recommendations for May 18, 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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USD/JPY analysis for May 18, 2017

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Recently, the USD/JPY pair has been trading downwards. The price tested the level of 110.24. Anyway, I found a fake breakout of yesterday's low at 110.77, which is a sign that selling looks risky. The downward movement from yesterday was extreme and the range was much bigger than average, which is a sign that today buyers can at least start the upward correction. I also found a hidden bullish divergence on the ROC oscilator. The upward target is set at the price of 111.40.

Resistance levels:

R1: 112.45

R2: 113.00

R3: 114.00

Support levels:

S1: 110.65

S2: 110.10

S3: 109.20

Trading recommendations for today: watch for potential buying opportunities.

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Analysis of Gold for May 18, 2017

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Recently, Gold has been trading upwards. As I expected, the price tested the level of $1,265.05. The metal tested my yesterday's take profit level at $1,265.50. Anyway, today I found that price is having hard time to break above yesterday's high, which is a sign that downward correction is possible. My advice is to watch for potential selling opportuntiies. The downward target is set at the price of $1,249.00.

Resistance levels:

R1: $1,261.80

R2: $1,267.70

R3: $1,277.50

Support levels:

S1: $1,242.50

S2: $1,236.00

S3: $1,227.00

Trading recommendations for today: watch for potential selling opportunities.

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Fundamental Analysis of AUD/USD for May 18, 2017

Recently, AUD/USD has shown a good amount of bullish pressure after a bounce of 0.7330 support area. Today, AUD also had a good amount of bullish pressure after positive economic reports on Australia's Employment Change which were better than expected. The Employment Change report showed an increase of 37.4k which was expected to be at 4.5k. Besides, Unemployment Rate in Australia declined to 5.7% from 5.9% earlier, the forecast was made with a flat reading. The positive economic reports from Australia gave some boost to AUD. Nevertheless, it failed to keep it up, giving in to the USD pressure. On the USD side, today we have Unemployment Claims report which is expected to increase to 240k which previously was at 236k. Philly Fed Manufacturing Index is expected to decrease to 19.9 which previously was at 22.0. Australia has already presented strong data. On the other hand if US reports reveal negative figures, then we might see AUD gaining more against USD in the coming days.

Now let us look at the technical chart. The price is currently showing indecision due to equal pressure from AUD and USD. Recently, AUD/USD has formed a Double Top Pattern where it is currently going to retest the Neckline of the pattern at 0.7500 level. The price is currently being hold by 20 EMA dynamic resistance. If that could not hold, the price is likely to reach 0.7500 horizontal resistance before the price continues its bearish trend again towards 0.7160 support level. As the price remains below 0.7500, the pair is set to follow the bearish bias.

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Global macro overview for 18/05/2017

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Global macro overview for 18/05/2017

Global macro overview for 18/05/2017

Global macro overview for 18/05/2017:

Surprising Crude Oil Inventories data made a spike up and reversal on the oil market yesterday. The latest Energy Information Administration (EIA) data reported an inventory draw of 1,750k barrels in the week ending May 12th following a draw of 5,250k barrels in the previous week. This recent draw was lesser than market expectations of 2,500k barrels. As a result, the inventories are at the lowest level in 10 weeks but overall are still 2.2% above year-ago levels. This is why the recent decrease in inventories is still not enough for global investors to catch a breath of relief as they still want a sustained evidence that inventories are declining for good.

Let's now take a look at the Crude Oil technical picture on the H4 time frame. The price is still trading above the 50% Fibo at the level of $48.75, but there was no attempt of a sustained rally towards the technical resistance at the level of $50.23 yet. The momentum indicator bounced from the fifty level, so the momentum is still strong and positive. In that case as long as the technical support at the level of $48.24 - $48.01 is not violated, the short-term bias is still to the upside. The next target for bulls is the 61%Fibo at the level of $49.93 or technical resistance at the level of $50.23.

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Global macro overview for 18/05/2017

Global macro overview for 18/05/2017:

Good data on the Australian job market hit the financial newswires overnight. According to the Australian Bureau of Statistics, the Unemployment Rate decreased more than expected, from 5.9% to 5.7% and the Employment Change increased more than expected 4.5K, because the figure revealed was at the level of 37.4k (60.1k a month ago). Part-time jobs were responsible for the growth trend in April as the job creation in this category surged by 49k, following a drop of 13.6k the month before. In conclusion, the Australian employers increased hiring for a seventh consecutive month, reflecting a broad recovery in the nation's labor market. Despite this good data, the main concern remains a weak full-time employment as it declined by 11.6k last month. The growing prevalence of part-time work might raise questions regarding the quality of jobs creation in Australia.

Let's now take a look at the AUD/USD technical picture on the H4 time frame. The bulls have managed to break out above the technical resistance at the level of 0.7438 and now the price is testing this level from above. Nevertheless, the spike up wasn't strong enough to test the upper channel boundary yet as the market conditions are overbought already. The next resistance is seen at the level of 0.7509.

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Trading plan for 18/05/2017

Trading plan for 18/05/2017:

Sentiment on the Asian stock market is weak and the US Dollar remains close to the lows as the Washington scandal maintains uncertainty about the future of Trump's economic policy. At the currency market, the Australian Dollar is the strongest after very good data on the labor market. The commodity market is stable for now.

On Thursday 18th of May, the event calendar is quite busy with important economic releases, so market participants will pay attention to Retail Sales With Auto Fuel data from the UK, ECB Monetary Policy Meeting Accounts, and Unemployment Claims data from the US. There is a speech from ECB President Mario Draghi scheduled for later in the day.

GBP/USD analysis for 18/05/2017:

Another set of data from the UK is scheduled for release today at 09:30 am GMT and this time it is Retail Sales With Auto Fuel data. Market participants expect the sales to jump 1.2% after a -1.9% decline last month. On a yearly basis, the sales should jump as well from the level of 1.7% to the level of 2.2%. Retail sales are the primary gauge of consumer spending, which accounts for the majority of overall economic activity. If the expectations are accurate, news of firmer growth will alleviate, if only slightly, concerns that stronger inflation is taking its toll on retail sales. In the earlier report, the UK consumer price index accelerated to a 2.7% annual gain in April, touching a 3.5 year high, so the slowdown in retail spending in this year's first quarter will be attributed to higher inflation.

Let's now take a look at the GBP/USD technical picture on the H4 time frame. The market tested the level of 1.2990 three times already and failed to break out above it so far. The round psychological level of 1.3000 still attracts the price, but the current market conditions look overbought and the momentum indicator starts to show a bearish divergence. In a case of a sell-off caused by worse than expected data, the immediate technical support is seen at the level of 1.288, but any violation of the golden trend line support will lead to the test of the next technical support at the level of 1.2844.

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EUR/USD analysis for 18/05/2017:

The ECB Monetary Policy Meeting Accounts report is scheduled for release at 11:30 am GMT. This report contains the texts of the ECB Governing Council members' speeches on detailed assessments of economic conditions that influence the interest rates decision. The other news that might influence EUR/USD is the economic data from the US that will be released at 12:30 pm GMT in form of the Unemployment Claims. The recent data from the US job market were good, so market participants expect a trend continuation here and predict the number of unemployed people in the US at the level of 240k (236k last week). Any number below 240k might give a reason for the US Dollar bulls to step into the market and buy it.

Let's now take a look at the EUR/USD technical picture on the H4 time frame. The bulls have managed to make another marginal higher high at the level of 1.1171, but the move upward looks overstretched a little. The market conditions look overbought at this time frame and the momentum indicator shows a clear bearish divergence. The immediate support is seen at the level of 1.1120 and the next one is seen at the level of 1.1079.

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Market snapshot: Gold under important resistance

The price of Gold have managed to retrace 61% of the previous swing down and now is trading at the level of $1,256 at the time of writing. The further advance was stopped by the navy trend line and supply zone between the levels of $1,259 - $1,270. The market conditions look overbought, but there is no clear sign of a reversal yet. The immediate support is seen at the level of $1,253.

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Ichimoku indicator analysis of USDX for May 18, 2017

The Dollar index has reached important weekly support levels around 97.50-97 as we expected from our previous posts. Now it is time to look for reversal confirmations and trade the long side of the index as I believe a strong bounce will follow soon.

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Trend remains bearish on the 4-hour chart but oscillators point to a bounce starting that I believe could be of a larger degree that can bring price back towards 99 at least for a backtest of the broken cloud support. 98.50 is the first important short-term resistance.

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Red line - resistance

Green line - long-term trend line support

As expected the Dollar index has reached the Weekly Kumo (cloud) at 97.50. This is very important weekly support and combined with the oversold levels of the RSI, I expect a bounce back at least towards the green trend line which is now resistance. If I was short, I would cover or protect my profits now. I prefer long positions around these levels for a bounce towards 99-100.

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Ichimoku indicator analysis of gold for May 18, 2017

Gold price has reached our target of $1,250-60 as we mentioned in our recent posts since price was trading just above $1,215. Now it is time for a pullback as price has reached important resistance levels. A shallow retracement will be a bullish sign. A sharp decline could be the start for a final decline to $1,170.

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Gold price has reached the 61.8% Fibonacci retracement resistance. Price is above the cloud. Kumo support is at $1,240 and I expect this level to be tested. If Gold price breaks below the Kumo, then bears will regain control of the trend.

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In the Daily chart Gold price has reached our target and it shows reversal signs. It is a very good sign that Gold has broken out and above the cloud but we also said in our previous posts that Gold should break above $1,260 for $1,300 to be achieved. Of course this cannot happen with one try. Gold should make a pullback to gather strength and then break upwards. Key support

is seen at $1,217. If broken, we go to $1,150-70 before $1,300.

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Daily analysis of major pairs for May 18, 2017

EUR/USD: There is a Bullish Confirmation Pattern in the EUR/USD 4-hour chart. Price has gone upwards by 250 pips this week, and it is currently above the support line at 1.1150, targeting the resistance lines at 1.1200 and 1.1250. Some fundamental figures are expected today and they may have impact on the market.

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USD/CHF: There is a Bearish Confirmation Pattern on the USD/CHF 4-hour chart. The price has dropped 220 pips this week, and it has dropped 290 pips since last Friday. The pair is currently below the resistance level at 0.9800, going towards the support level at 0.9750 (which is the first target). That support level might even be breached to the downside.

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GBP/USD: This currency trading instrument is neutral in the medium-term and bullish in the short-term. The distribution territories at 1.3000 could be tested, and a movement above it could result in a bullish bias on the market. Since the EUR/USD pair is currently bullish, and it is positively correlated with GBP/USD, it is expected that the cable will be pulled upwards very soon. The long-term bias is bullish.

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USD/JPY: This pair has dropped 250 pips this week, leading to strong bearish outlook on the market. The EMA 11 is below the EMA 56, and the RSI period 14 is below the level 50. There is a heavy selling pressure in the market, and further drop is anticipated as bears target the demand levels at 110.50 and 110.00.

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EUR/JPY: The bearish correction that was seen here on Tuesday and Wednesday, has become a threat to the recent bullish bias on the market. One factor that is currently helping the recent bullish bias on the market is the stamina in the EUR itself. A movement of about 200 pips to the downside would lead to a bearish signal in the market, and more and more bearish movement would be seen.

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Fundamental Analysis of EUR/AUD for May 18, 2017

EUR/AUD has been recently going through a non-volatile bullish trend since the bounce from 1.37. Recently, EUR has been quite stronger than AUD till today when Australia released some positive economic reports which enabled AUD to gain ground. Today, Australia presented Employment Change report which showed a notable increase of 37.4k which was expected to be at 4.5k. As a result, Unemployment Rate was also declined to 5.7% from 5.9% previously. On the EUR side today, ECB President Draghi is going to speak about Short-Term Interest Rates and future monetary policies. During the event, the pair is expected to trade with higher volatility today. Currently, AUD is dominating over EUR. If Draghi's speech goes bearish for EUR today, AUD is likely to extend its gains against EUR in the coming days.

Now let us look at the technical chart. The price is currently showing some bearish rejection in a non-volatile bullish trend in light of the positive reports published in Australia today. Currently, the price is heading towards the support level of 1.4880. The bullish trend is still strong, so if the price rejects off the level, then price is expected to show some bullish move towards 1.5100 resistance level. On the other hand, in the context of AUD current strength, if the price breaks below 1.4880 with a daily close, it would be a good decision to sell with a target towards 1.4600.

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Technical analysis of USD/JPY for May 18, 2017

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USD/JPY is trading under pressure below the key resistance at 111.75, which should limit the upside potential. The declining 50-period moving average is playing a resistance role. The relative strength index is below its neutrality level at 50.

Hence, as long as 111.75 holds on the upside, look for a further drop to 110.30 and even to 109.90 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 110.30. A break below this target will move the pair further downwards to 109.90. The pivot point stands at 111.75. 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 112.20 and the second one at 112.55.

Resistance levels: 112.20, 112.55, and 112.85

Support levels: 110.30, 109.90, and 109.50

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Technical analysis of USD/CHF for May 18, 2017

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USD/CHF is expected to continue its downside movement. The pair recorded lower tops and lower bottoms Since May 11, which confirmed a bearish outlook. The downward momentum is further reinforced by the declining 50-period moving average. The relative strength index is below its neutrality level at 50. In addition, key resistance at 0.9850 (the high of May 17) should limit the upside potential.

On the economic data front, MBA mortgage applications declined 4.1% in the week ending May 12 compared with an increase of 2.4% in the prior week.

To conclude, below 0.9850, expect a new drop to 0.9740 and even to 0.9695 in extension.

Resistance levels: 0.9885, 0.9910, and 0.9950

Support levels: 0.9740, 0.9695, and 0.9670

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Elliott wave analysis of EUR/NZD for May 18, 2017

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Wave summary:

We are still looking for upside acceleration towards the next upside target seen at 1.6655 and expect minor support seen at 1.5960 to continue to protect the downside for a clear break above 1.6154. This confirms the expected rally higher to 1.6655.

A break below minor support at 1.5960 would be a bit troublesome, but will only delay the expected rally higher for a move closer to 1.5803 before the next rally higher is expected.

R3: 1.6354

R2: 1.6200

R1: 1.6154

Pivot: 1.6020

S1: 1.5960

S2: 1.5803

S3: 1.5764

Trading recommendation:

We are long EUR from 1.5665 with stop placed at 1.5800. If you are not long EUR yet, then buy near 1.5960 and use the same stop at 1.5800.

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Elliott wave analysis of EUR/JPY for May 18, 2017

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Wave summary:

Our preferred count continues to work nicely and we have seen the expected decline towards at least 122.94, but the decline could easily extend lower towards the 38.2% corrective target seen at 120.69 before taking off again towards 138.52.

Short term, resistance is seen at 124.35 and again at 124.93.

R3: 125.57

R2: 124.93

R1: 124.35

Pivot: 124.00

S1: 123.38

S2: 122.96

S3: 122.57

Trading recommendation:

We are short EUR from 125.25 and will move our stop lower to 125.00. Take profit is placed at 123.00.

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Technical analysis of NZD/USD for May 18, 2017

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NZD/USD is expected to trade with a bullish outlook. The technical outlook of the pair is positive as the prices recorded higher tops and higher bottoms since May 16. The upward momentum is further reinforced by the rising 50-period moving average. The relative strength index is bullish and calls for a further advance.

Therefore, as long as 0.6870 is not broken, expect a new challenge to 0.6970 and even to 0.7000 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 0.6970 and the second one at 0.7000. In the alternative scenario, short position is recommended with the first target at 0.6855 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 0.6835. The pivot point is at 0.6870.

Resistance levels: 0.6970, 0.7000, and 0.7045

Support levels: 0.6855, 0.6835, and 0.6805

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Technical analysis of GBP/JPY for May 18, 2017

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GBP/JPY is under pressure as the key resistance is at 144.90. The pair is rebounding and broke above its declining 20-period moving average. Nevertheless, 144.90 is playing a key resistance role, which should limit the upside potential. The descending 50-period moving average is also playing a resistance role and maintains the downside bias. Even though a continuation of technical rebound cannot be ruled out, its extent should be limited.

As long as 144.90 is not broken, we keep our negative view unchanged with a down target at 143.10 first. A break below this level would call for a further decline toward 142.65.

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 143.10. A break below this target will move the pair further downwards to 142.65. The pivot point stands at 1444.9. 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 145.80 and the second one at 146.30.

Resistance levels: 145.80, 146.30, and 147.00

Support levels: 143.10,142.65, and 145.00

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Technical analysis of EUR/USD for May 18, 2017

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When the European market opens, some Economic Data will be released such as French 10-y bond auction and Spanish 10-y bond auction. The US will release the reports on natural gas storage, CB leading index m/m, Philly Fed Manufacturing Index and unemployment claims. So, amid the reports EUR/USD will move with a low to medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Breakout BUY Level: 1.1206.

Strong Resistance:1.1200.

Original Resistance: 1.1189.

Inner Sell Area: 1.1178.

Target Inner Area: 1.1152.

Inner Buy Area: 1.1126.

Original Support: 1.1115.

Strong Support: 1.1104.

Breakout SELL Level: 1.1098.

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 18, 2017

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In Asia, Japan will release the preliminary estimates of the GDP price index while the US will unveil the reports on natural gas storage, CB leading index m/m, Philly Fed Manufacturing Index, and unemployment claims. So there is a probability the USD/JPY will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Resistance. 3: 111.48.

Resistance. 2: 111.26.

Resistance. 1: 111.05.

Support. 1: 110.78

Support. 2: 110.56.

Support. 3: 110.34.

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 18, 2017

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Overview:

  • The USD/CHF pair continues to move downwards from the level of 0.9893.
  • Today, the first resistance level is seen at 0.9893 followed by 0.9948 as second resistance.
  • Also, the level of 0.9787 represents a weekly pivot point for that it will act as major resistance/support in coming hours.
  • Amid the previous events, the pair is still in a downtrend, because it is trading in a bearish trend from the new resistance line of 0.9893 towards the first support level at 0.9787 in order to test it.
  • If the pair succeeds to pass through the level of 0.9787, the market will indicate a bearish opportunity below the levels of 0.9710 and 0.9655.
  • However, if a breakout happens at the resistance level of 0.9893 (resistance 1), then this scenario may be invalidated.
  • Additionally, the support is found at 0.9893, which represents the 50% Fibonacci retracement level on the daily time frame. Since the trend is below the 50% Fibonacci level, the market is still in an downtrend.
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Technical analysis of NZD/USD for May 18, 2017

NZDUSDH4.png

Overview:

  • As expected theNZD/USD pair keeps moving upwards from the level of 0.6557. Yesterday, the pair rose from the level of 0.6876 which represents a support to the top around 0.6461. Today, the first resistance level is seen at 0.6971 followed by 0.7014, while daily support 1 is found at 0.6876. According to the previous events, the NZD/USD pair is still moving between the levels of 0.6913 and 0.7014. Therefore, we expect a range of 101 pips (0.7014 - 0.6913). If the NZD/USD pair fails to break through the resistance level of 0.7014, the market will decline further to 0.6942. This would suggest a bearish market because the RSI indicator is still in a positive area and does not show any reversal signs. The pair is expected to drop lower towards at least 0.6942 with a view to test the daily pivot point. On the contrary, if a breakout takes place at the resistance level of 0.7014 (the double top), then this scenario may become invalidated. Briefly, we accept that the trend will climb towards to the resistance of 0.7014. Then, it will probably rebound from the spot of 0.7014 in order to return the re-test the pivot at the 0.6942 level.
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Daily analysis of USDX for May 18, 2017

The index is extending its losses in the short term, as it tested the key support zone of 97.50 where bulls are trying to take a rest. If USDX breaks below there, then the doors could be opened to reach the next target placed around 96.90. Overall, the bearish outlook remains valid and corrective moves may happen, but limited by the 98.11 level.

USDXH1.png

H1 chart's resistance levels: 98.11 / 98.55

H1 chart's support levels: 97.50 / 96.90

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 97.50, take profit is at 96.90 and stop loss is at 98.10.

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Daily analysis of GBP/USD for May 18, 2017

The GBP/USD pair rallied on Wednesday following another sellers' wave that hit the sentiment in the US dollar across the markets. Currently, GBP/USD is challenging the resistance zone of 1.2957, where a breakout should expose the next key area of 1.2984. Overall, the range is still untouched and the pair should consolidate above it in order to reach the important level of 1.3000.

GBPUSDH1.png

H1 chart's resistance levels: 1.2957 / 1.2984

H1 chart's support levels: 1.2911 / 1.2855

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 is at 1.2984 and stop loss is at 1.2928.

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Daily Video Technical Analysis | AUD/USD | 17th 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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AUD/USD profit target reached for the 5th time, prepare to buy again

Price has dropped and reached our profit target from yesterday for the 5th time in a row. We prepare to buy above 0.7379 support (Fibonacci retracement, Fibonacci extension, horizontal overlap support) for a push up to 0.7466 resistance (Fibonacci extension, Fibonacci retracement, Elliott wave theory).

Stochastic (55,5,3) is seeing strong ascending support holding price up.

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 rise on NZD/USD which goes in line with this correlation.

Buy above 0.7397. Stop loss at 0.7368. Take profit at 0.7466.

analytics591c727e18c1b.png

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GBP/USD above strong support, prepare to buy on dips

Price is above major support at 1.2861 (Fibonacci retracement, horizontal overlap support, Fibonacci extension) and we expect price to make a bounce above this level towards 1.2988 resistance (Fibonacci extension, horizontal swing high resistance).

Stochastic (34,5,3) is also seeing strong support above the 13% area where we expect further bullish action from.

Buy above 1.2861. Stop loss at 1.2798. Take profit at 1.2988.

analytics591c726182eb5.png

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