AUD/JPY right on support, remain bullish

Price has once again dropped to our support level. We remain bullish above major support at 81.90 (Fibonacci extension, horizontal swing low support, bullish divergence) and we expect a strong bounce above this level to at least 82.90 resistance (Fibonacci retracement, horizontal swing high resistance).

Stochastic (34,5,3) is seeing strong support above the 8% level and also sees bullish divergence vs price signalling that a bounce is impending.

Correlation analysis: We're expecting overall JPY weakness with bounces expected on AUD/JPY, USD/JPY, and EUR/JPY. Hence this falls very nicely into a correlated move.

Buy above 81.90. Stop loss at 81.67. Take profit at 82.90.

analytics5935744e54ed4.png

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

EUR/USD testing major resistance, remain bearish

Price has reached our selling area and is testing that level. We remain bearish below major resistance at 1.1264 (Fibonacci extension, horizontal swing high resistance) for a further drop towards 1.1159 support (Fibonacci retracement, horizontal overlap support).

Stochastic (55,5,3) is seeing major resistance below the 95% level.

Sell below 1.1264. Stop loss at 1.1301. Take profit at 1.1159.

analytics59357429e96bd.png

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

Technical analysis of USD/JPY for June 05, 2017

USDJPYM30.png

GBP/JPY is under pressure. The pair retreated from 143.95 and broke below the 20-period and 50-period moving averages. The relative strength index is mixed to bearish. In addition, the key resistance at 143.05 should limit the upside potential.

Hence, as long as this key level is not surpassed, look for another decline to 141.95 and even to 141.45 in extension.

Graph Explanation: Black line shows the pivot point, present price above pivot point indicates the bullish position and below pivot points indicates the short position. Red lines shows the support levels and green line indicates the resistance levels. These levels can be used to enter and exit trades.

At present, 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 position is recommended with the first target at 110.20. A break below this target will move the pair further downwards to 109.85. The pivot point stands at 111.05. 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 111.35 and the second one at 111.55.

Strategy: SELL at highs, Stop Loss: 111.05, Take Profit: 110.20

Resistance levels: 111.35, 111.55, and 111.75

Support levels: 110.20, 109.85, and 109.50

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

Technical analysis of USD/CHF for June 05, 2017

USDCHFM30.png

USD/CHF is under pressure. The pair broke below its 50-period moving average and consolidated on the downside, while the 50-period moving average is declining and is playing a resistance role. The relative strength index is below its neutrality level at 50 and lacks upward momentum.

The U.S. Labor Department reported that the number of nonfarm payrolls increased 138,000 in May, compared with +184,000 expected and +174,000 in April. The jobless rate, however, fell to a 16-year low of 4.3% from 4.4% in April. Average hourly earnings for private-sector workers were $26.22 an hour in May, up 4 cents on month and 2.5% on year.

As long as 0.9700 holds on the upside, look for a further drop towards 0.9605 and even 0.9575 in extension.

Graph Explanation: Black line shows the pivot point, present price above pivot point indicates the bullish position and below pivot points indicates the short position. Red lines shows the support levels and green line indicates the resistance levels. These levels can be used to enter and exit trades.

Strategy: SELL at highs, Stop Loss: 0.9700, Take Profit: 0.9605

Resistance levels: 0.9735, 0.9760, and 0.9790

Support levels: 0.9605, 0.9575, and 0.9535

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

Technical analysis of NZD/USD for June 05, 2017

NZDUSDM30.png

NZD/USD is expected to trade in a higher range. The pair has recorded a succession of higher tops and higher bottoms since June 1 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. In addition, 0.7100 is playing a key support role, which should limit the downside potential.

As long as 0.7100 holds on the downside, look for a further upside towards 0.7150 and even 0.7170 in extension.

Graphics Explanation: The black line shows the pivot point; the present price above pivot point indicates the bullish position and below pivot points indicates the short position. The red lines shows the support levels and the green line indicates the resistance levels. These levels can be used to enter and exit trades.

At present, the pair is trading above its pivot point. It is likely to trade in a higher range as long as it remains above its pivot point. Therefore, long positions are recommended with the first target at 0.7150 and the second one at 0.7170. In the alternative scenario, short position is recommended with the first target at 0.7080 if the price moves below its pivot points. A break of this target is expected to push the pair further downwards, and one may expect the second target at 0.7055. The pivot point lies at 0.7100.

Strategy : BUY at dips, Stop Loss: 0.7100, Take Profit: 0.7170

Resistance levels: 0.7150, 0.7170, and 0.7200

Support levels: 0.7080,0.7055, and 0.7005

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

Trading Plan for EURUSD and GBPUSD for June 05, 2017

analytics593555202bac2.jpg

Technical outlook:

The EUR/USD pair continues to print fresh highs as once again Friday NFP helped the price hit 1.1285 levels before pulling back. The pair is likely on a high note after breaking above a trend line resistance on the daily chart last month (not shown here). At the same time, please note that there is enough divergence seen on daily charts and other time frames for a meaningful top to form, and the price is retracing lower towards 1.1000 levels at least before resuming higher again. We may not be selling aggressively now but would allow a break below 1.1200 levels before getting confirmation. Please wait for prices to break below its intermediary trend line support as depicted here and subsequently below price support at 1.1200 levels before again beginning to sell on rallies. Believe it or not, a top is very near now.

Trading plan:

Please remain flat for now, allow prices to drop below 1.1200 levels and then begin to sell on rallies with a stop above 1.1285 levels.

GBP/USD chart setups:

analytics5935574ee6496.jpg

Technical outlook:

The GBP/USD pair seems to have already formed a meaningful top around 1.3047 levels earlier. If we look into the wave count, the pair had dropped towards 1.2767 levels earlier forming wave (1) and the subsequent rally has produced waves A and B until now. A push higher into 1.2940 levels would be ideal to go short again where wave C would also terminate and trend line resistance also passing. Until the price broadly stays below 1.3047 levels, we should be expecting lower lows and lower highs. Immediate resistance is seen at 1.3030/40 levels while support is seen at 1.2800 levels, respectively. GBP/USD has already hit 1.2940 levels and pulled back. It would be good to plan a short entry around these levels to see lower levels in the days to come.

Trading plan:

Please sell around 1.2930/40 levels, stop at 1.3049, targeting lower.

Fundamental outlook:

Please watch out for USD ISM Manufacturing Index to be out today at 10:00 AM EST for some quick volatility.

Good luck!

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

Technical analysis of GBP/JPY for June 05, 2017

GBPJPYM30.png

GBP/JPY is under pressure. The pair retreated from 143.95 and broke below the 20-period and 50-period moving averages. The relative strength index is mixed to bearish. In addition, the key resistance at 143.05 should limit the upside potential.

Hence, as long as this key level is not surpassed, look for another decline to 141.95 and even to 141.45 in extension.

Graph Explanation: Black line shows the pivot point, present price above pivot point indicates the bullish position and below pivot points indicates the short position. Red lines shows the support levels and green line indicates the resistance levels. These levels can be used to enter and exit trades.

At present, 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 position is recommended with the first target at 141.95. A break below this target will move the pair further downwards to 141.45. The pivot point stands at 143.05. 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 143.35 and the second one at 143.95.

Strategy : SELL at dips, Stop Loss: 143.05, Take Profit: 141.95

Resistance levels: 141.95, 141.45, and 140.75

Support levels: 143.35,143.95, and 144.50

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

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

analytics59355352eb65b.png

Daily Outlook

The NZD/USD pair has been trending-up within the depicted bullish channel since January 2016.

In November 2016, early signs of bullish weakness were expressed on the chart when the pair market failed to record a new high above 0.7400.

Bearish breakdown of the lower limit of the channel took place in December 2016.

In February 2017, the depicted short-term downtrend was initiated off depicted Supply zone (0.7310-0.7380).

However, recent bullish breakout above the depicted downtrend took place in May 22. Since then, the market has been bullish as depicted on the chart.

Temporary bearish rejection was expressed around 0.7050 (previous daily-tops) before further bullish advance was pursued towards 0.7120.

The price zone of 0.7150-0.7220 stands as a prominent supply zone in confluence with Fibonacci level 61.8%. That's why, bearish rejection should be anticipated.

Trade recommendations:

A valid SELL-Entry can be considered at the depicted SELL-Entry zone (0.7150 up to 0.7220) especially if signs of bearish rejection is expressed.

S/L should be placed above 0.7250 while T/P levels should be placed at 0.7050, 0.6970, and 0.6850.

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

Intraday technical levels and trading recommendations for EUR/USD for June 5, 2017

analytics593549cce4948.png

Monthly Outlook

In January 2015, the EUR/USD pair moved below the major demand levels near 1.2100 (Multiple previous bottoms set in July 2012 and June 2010). Hence, a long-term bearish target is projected toward 0.9450.

In March 2015, EUR/USD bears challenged the monthly demand level around 1.0500, which had been previously reached in August 1997.

In the longer term, the level of 0.9450 remains a projected target if any monthly candlestick achieves bearish closure below the depicted monthly demand level of 1.0500.

Otherwise, the EUR/USD pair remains trapped within the depicted consolidation range (1.0500-1.1260).

analytics593549dfb0afa.png

Daily Outlook

In January 2017, the previous downtrend was reversed when a Head and Shoulders pattern was established around 1.0500. Since then, evident bullish momentum has been expressed on the chart.

The next daily supply level to meet the EUR/USD pair is located between (1.1400-1.1520) where price action should be watched for possible bearish rejection.

Trade recommendations:

The EUR/USD pair remains bullish initially towards 1.1400 unless evident signs of bearish rejection is expressed earlier on the chart.

A valid SELL Entry can be considered at the depicted supply zone (1.1400 up to 1.1520) especially if signs of bearish rejection are expressed.

S/L should be placed above 1.1550 while T/P levels should be placed at 1.1100, 1.1020 and 1.0850.

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

USD/JPY analysis for June 05, 2017

analytics593550ac18c6b.png

Recently, the USD/JPY has been trading downwards. The price tested the level of 110.27. Anyway, according to the 30M time frame, I found a fake breakout of the Friday's low, which is a sign that selling today looks risky. My advice is to watch for potential buying opportunities. The upward targets are set at the price of 111.00 and 111.20.

Resistance levels:

R1: 110.60

R2: 110.85

R3: 110.90

Support levels:

S1: 110.45

S2: 110.35

S3: 110.25

Trading recommendations for today: watch for potential buying opportunities.

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

Daily analysis of major pairs for June 5, 2017

EUR/USD: The EUR/USD pair went upwards last week, closing above the support line at 1.1250 on June 2, and going towards the resistance line at 1.1300. The resistance line at 1.1300 may even be breached to the upside as price goes further upwards. However, a bearish reversal is likely to take place this week or next, owing to the bearish outlook on EUR pairs, which would probably materialize within the next several trading days.

1496663707_1.png

USD/CHF: This is a bear market. Price went south last week, following the initial consolidation that was witnessed in the first few days of the week. The market has lost about 460 pips since May 11, and this has caused a clean Bearish Confirmation Pattern on the chart. The market would continue going downwards until there is a bearish reversal on EUR/USD, a factor that may cause USD/CHF to spring upwards.

2.png

GBP/USD:

The GBP/USD pair is bullish in the long term but neutral in the short term. The price simply fluctuated last week, without assuming any directional movement. This week, the price would either go above the distribution territory at 1.3050 to strengthen the long-term bullish outlook; or go below the accumulation territory at 1.2700, to form a new bearish bias. This is expected to happen this week or next.

3.png

USD/JPY: This pair went sideways last week, but became vividly and conspicuously bearish on Friday. Price is expected to go more and more southwards this week, reaching the demand levels at 110.00, 109.50, and 109.00. The forecasted southwards movement goes hand in hand with the bearish expectation on JPY pairs for the month of June.

4.png

EUR/JPY: This cross pair is bullish in the long term, and neutral in the short term. Price tested the demand zone at 123.50 last week, and then went upwards by 180 pips, before closing below the supply zone at 125.00 on Friday. This week, a further bullish effort may be made, as long as EUR is strong in itself. A show of weakness in EUR may cause this cross pair to tumble.

5.png

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

GBP/USD analysis for June 05, 2017

analytics593542e784d76.png

Recently, the GBP/USD has been trading sideways at the price of 1.2910. According to the 4H time frame, I found shakeout of the swing low and confirmed double bottom formation, which is a sign that selling looks risky. The projected upward target is set at the price of 1.3000. My advice is to watch for potential buying opportuntiies.

Resistance levels:

R1: 1.2878

R2: 1.2889

R3: 1.3000

Support levels:

S1: 1.2860

S2: 1.2850

S3: 1.2840

Trading recommendations for today: watch for potential buying opportunities.

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

Technical analysis of GBP/USD for June 05, 2017

GBPUSDH4.png

Overview:

  • The GBP/USD pair moved around the strong resistance at the area of 1.2973 because the double top is set around the spot of 1.3047. Consequently, the strong resistance has already been formed at the level of 1.2973 and the pair is likely to trade around the spot of 1.2973 and 1.2744. However, if the pair fails to pass through the level of 1.3047, the market will indicate a bearish opportunity below the new strong resistance level of 1.2973. Moreover, the RSI starts signaling a downward trend which is still showing strength above the moving averages 100 and 50. Thus, the market is indicating a bearish opportunity below 1.2973, so it will be good to sell at 1.2973 with the first target at 1.2744. It will also call for a downtrend in order to continue towards 1.2582. The daily strong support is seen at 1.2582. However, the stop loss should always be taken into account, for that it will be reasonable to set your stop loss above the level of 1.2973.
The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of EUR/USD for June 05, 2017

EURUSDH4.png

Overview:

  • The EUR/USD pair continues to rise from the level of 1.1184 in the long term. It should be noted that the support is established at the level of 1.1106, which represents the 61.8% Fibonacci retracement level on the H4 chart. The price is likely to form a double bottom on the same time frame. Accordingly, the EUR/USD pair is showing signs of strength following a breakout of the highest level of 1.1240. So, buy above the level of 1.1240 with the first target at 1.1283 in order to test the daily resistance 1 and further to 1.1350. Also, it might be noted that the level of 1.1350 is a good place to take profit because it will form a new double top. On the other hand, in case a reversal takes place and the EUR/USD pair breaks through the support level of 1.1184, a further decline to 1.1106 can occur which would indicate a bearish market.
The material has been provided by InstaForex Company - www.instaforex.com

Global macro overview for 05/06/2017

Global macro overview for 05/06/2017:

The situation of the Reserve Bank of Australia ahead of tomorrow's policy decision is quite peculiar. Since the previous meeting in early May, inflows of information have been mixed. On the one hand, housing market data show that the boom is continuing, but the real estate prices in Sydney and Melbourne have started to fall sharply together with the building permits (dropped by 13.9 % m/m). Moreover, the wages dynamics remains poor and investment expectations of companies indicate that the 2017/18 fiscal year plans are below the investment growth of 2016/17. On the other hand, signals from the global economy are still more positive than negative, retail sales are growing up at the start of the second quarter (April 1% m/m), the unemployment rate is falling (5.7%). The economic indicators are still in RBA acceptable range, so the GDP at the level of 3.0% is still possible and a help from the global economic recovery should speed up the process of economic recovery.

In conclusion, the RBA must look at a mixed set of internal and external factors, but ultimately the bank should stick to the strategy seen in the recent months: wait-and-see. The interest rate should remain at 1.5%, and the neutral message in the rate statement may bring some relief to AUD.

Let's now take a look at the AUD/USD technical picture. The price has bounced from the golden channel lower support line and now is rallying from the oversold market conditions towards the next technical resistance at the level of 0.7475. The key technical resistance, however, is at the level of 0.7516, which is a confluence of technical levels and the old trend line.

analytics593528224b1aa.jpg

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

Global macro overview for 05/06/2017

Global macro overview for 05/06/2017:

The NFP Payrolls data from the US disappointed global investors. Expectations for Friday's NFP report were set initially at 180k new jobs but were reported at actual 138k jobs. Job gains in March and April were revised down by 66k collectively. The unemployment rate edged down to 4.3% from 4.4% previously and the average hourly earning were reported at the same level of 0.2%. Not good report at all: the NFP score was worse than expected, prior month's data were revised down, weak reading was logged on wage growth. The only positive data from the lower than expected unemployment rate was because of the fact that the participation rate fell to the lowest level in five months.

In conclusion, the worse-than-expected jobs report could influence a bit the Federal Reserve's (Fed) plans to tighten monetary policy at the next meeting on June 13-14 with a rate hike already priced in, but the market's question is whether the central bank may have to consider "even more gradual" removal of accommodative policy. The immediate market reaction might hurt the US Dollar even further, but the overall picture is still more bullish than bearish.

Let's now take a look at the US Dollar Index technical picture on the H4 time frame. The market has dipped down through the technical support at the level of 96.80, but no follow through has occurred. The next support is seen at the level of 95.91 and the next resistance is seen at the level of 97.20.

analytics5935233b59492.jpg

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

Trading plan for 05/06/2017

Trading plan for 05/06/2017:

Today's volatility is limited and, given today's holiday in many important financial centers, it is difficult to count on a change of this situation. The strong finish of the week on Wall Street does not improve the mood in Asia. Shanghai Composite and Hang Seng are under the line. Of the major indexes, only gains are rising by modest 0.2%. Nikkei225. EUR/USD retreats towards 1.1250. USD/JPY is rising above 110.50.

On Monday 5th of June 2017, the event calendar is light in economic releases, but the global investors will pay attention to set of the PMI releases from across the Eurozone, PMI Services data from the UK and Revised Nonfarm Productivity data from the US.

GBP/USD analysis for 05/06/2017:

The PMI Services and PMI Composite data are scheduled for release at 08:30 am GMT and the market participants expect a slight decrease from 55.8 points last month to 55.1 points in a current month. The PMI Composite is expected to slightly deteriorate too, from 56.2 points to 55.5 points in the current month. Both of today's PMI's will be read as the last major economic release ahead of Thursday's general election in Britain. With the PMI's above the fifty level ( it divides the economic expansion from the contraction), it looks like the worst fears about the Brexit fallout for Britain's economy after the Brexit are now under control. Nevertheless, there are some of the sectors and economic indicators that are not quite following the path of the prosperity. The rising inflation, falling real wages, and slower economic growth does not really fit into Bank of England economic expectations. The National Institute of Economic and Social Research is still estimation a quarterly GDP at the level of 0.2% this year, which means the performance is at least sluggish. If today's PMI data will surprise to the downside, then the GDP outlook would have to be revised down as the services sector is responsible for around 80% of Britain's economic activity. Eventually, the value of the Pound might decrease in time.

Let's now take a look at the GBP/USD technical picture at the H4 timeframe. The price is trading inside of a tight range between the levels of 1.2920 - 1.2844. The overall market conditions look overbought and the momentum indicator is hovering around its fifty level. The most important level, the technical support zone between the levels of 1.2772 - 1.2706 is still holding the line, so the overall bias should be bullish, but the fact that the price is still trading below the golden trend line is not encouraging. To regain the control over the market, the bulls must break out above the technical resistance at the level of 1.2920 and head towards the next resistance at the level of 1.3009.

analytics59350f800214c.jpg

Market Snapshot: EUR/USD still on highs, but no momentum

The price of EUR/USD is trading around the level of 1.1266 in overbought market conditions. There is a clear bearish divergence between the momentum indicator and the price, so at least corrective pull-back is expected in this market. The next support is seen at the level of 1.2001.

analytics59350f87f0a31.jpg

Market Snapshot: Crude Oil jumps higher after the news

The price of the Crude Oil jumped up towards the important resistance around the level of $48.24 after the news regarding Middle East situation hits the newswires (Saudi Arabia cuts diplomatic ties with Qatar and closing the borders). The next challenge for bulls is to break out above the nave trend line resistance and head towards the level of $48.98. The next support is seen at the level of $47.71.

analytics59350f90a5001.jpg

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

Trading plan for 02/06/2017

Forex analysis review
Trading plan for 02/06/2017

Elliott wave analysis of EUR/NZD for June 5, 2017

analytics5934e1c0e65a2.png

Wave summary:

We continue to look for more upside pressure through minor resistance at 1.5931 and more importantly above resistance at 1.6006 confirming a continuation higher towards 1.6655. Only an unexpected break below 1.5660 will delay the expected rally and revive the "old" 1.5485 target in an expanded flat wave ii/, before higher again.

R3: 1.6157

R2: 1.6088

R1: 1.6002

Pivot: 1.5900

S1: 1.5776

S2: 1.5730

S3: 1.5660

Trading recommendation:

We are long EUR from 1.5869 with stop placed at 1.5650. If you are not long EUR yet, then buy a break above 1.5893 and use the same stop at 1.5650.

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

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

analytics5934dfdb827b8.png

Wave summary:

Despite a slightly deeper correction from 125.31 than first expected, we remain bullish for more upside pressure above 125.31 and more importantly a break above resistance at 125.81, which will confirm a continuation higher towards 127.50 and above.

Even if a break below 124.38 is seen that should only call for a little more downside to 123.77 before renewed upside pressure should take over for the rally above 125.31 and 125.81.

R3: 126.47

R2: 125.81

R1: 125.31

Pivot: 125.00

S1: 124.38

S2: 124.12

S3: 123.77

Trading recommendation:

We are long EUR from 124.65 with stop placed at 124.10. If our stop is hit, then a new buy order will be placed at 123.85.

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

Technical analysis of EUR/USD for June 05, 2017

EURUSD.jpg

When the European market opens, some Economic Data will be released, such as Final Services PMI, German Final Services PMI, French Final Services PMI, Italian Services PMI, and Spanish Services PMI. The US will release the Economic Data, too, such as Labor Market Conditions Index m/m, Factory Orders m/m, ISM Non-Manufacturing PMI, Final Services PMI, Revised Unit Labor Costs q/q, and Revised Nonfarm Productivity q/q, so, amid the reports, EUR/USD will move in a low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Breakout BUY Level: 1.1333.

Strong Resistance:1.1326.

Original Resistance: 1.1315.

Inner Sell Area: 1.1304.

Target Inner Area: 1.1277.

Inner Buy Area: 1.1250.

Original Support: 1.1239.

Strong Support: 1.1228.

Breakout SELL Level: 1.1221.

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

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

Technical analysis of USD/JPY for June 05, 2017

USDJPY.jpg

In Asia, today Japan will not release any Economic Data, but the US will release some Economic Data, such as Labor Market Conditions Index m/m, Factory Orders m/m, ISM Non-Manufacturing PMI, Final Services PMI, Revised Unit Labor Costs q/q, and Revised Nonfarm Productivity q/q. So, there is a probability the USD/JPY will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Resistance. 3: 110.98.

Resistance. 2: 110.77.

Resistance. 1: 110.55.

Support. 1: 110.28.

Support. 2: 110.07.

Support. 3: 109.85.

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

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

Daily analysis of USDX for June 05, 2017

The index had a strong decline on Friday after the disappointing jobs data in the United States and it's now piercing the 96.90 level. The target is now placed to the downside around 96.25 and having in mind that USDX was trapped in a bearish consolidation, such scenario is feasible for the short-term. MACD indicator is turning negative and favoring the downside.

USDXH1.png

H1 chart's resistance levels: 97.41 / 98.11

H1 chart's support levels: 96.90 / 96.25

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 96.90, take profit is at 96.25 and stop loss is at 97.56.

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

Daily analysis of GBP/USD for June 05, 2017

The pair is hovering around the 200 SMA at H1 chart, with a resistance at 1.2911 helping to cap further gains. To the downside, GBP/USD should make a breakout below 1.2845 in order to resume the bearish structure and the efforts are getting weak for the buyers and that's why we would be watching for a consolidation above 1.2911 in order to test the 1.2962 level.

GBPUSDH1.png

H1 chart's resistance levels: 1.2911 / 1.2962

H1 chart's support levels: 1.2845 / 1.2791

Trading recommendations for today: Based on the H1 chart, sell (short) orders only if the GBP/USD pair breaks a bearish candlestick; the support level is at 1.2845, take profit is at 1.2791 and stop loss is at 1.2900.

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