Daily analysis of Silver for July 14, 2017

Forex analysis review
Daily analysis of Silver for July 14, 2017

USDCHF now testing major resistance, prepare to sell

The price shot up yesterday and is now testing major resistance. We prepare to sell below major resistance at 0.9687 (Fibonacci retracement, horizontal overlap resistance, Fibonacci extension) for a push down to at least 0.9602 support (Fibonacci extension, horizontal swing low support).

Stochastic (34,5,3) is seeing major resistance below 94% where we expect a further drop from.

Correlation analysis: EUR/USD and USD/CHF are negatively correlated, meaning they move in opposite directions. It is good to see a bounce on EUR/USD and a corresponding drop in USD/CHF.

Sell below 0.9687. Stop loss at 0.9741. Take profit at 0.9602.

analytics5968f430a637c.png

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

USDJPY dropping nicely, remain bearish for a further drop

Yesterday the price has continued to drop, but its bearish momentum slowed down. We do see a lot more downside potential in this move though. Our goal is to remain bearish looking to sell on rallies below major resistance at 114.32 (Fibonacci extension, horizontal swing high resistance, bearish divergence) so that we can get into good positions to play the push down to at least the 111.77 support (Fibonacci retracement, horizontal overlap support).

Stochastic (89,5,3) is seeing major resistance below 95% and has made a bearish triangle exit. We can see that it has good downside potential to play the drop further before reaching any significant support.

Sell below 114.32. Stop loss at 115.09. Take profit at 111.77.

analytics5968f21bd3b16.png

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

Technical analysis of USD/CHF for July 14, 2017

1500048369_USDCHFM30.png

The pair is expected to trade with a bearish outlook as far as the key resistance holds at 0.9680. The pair remains below its horizontal resistance at 129.50, and is consolidating around its 20-period and 50-period moving averages. In her testimony to the Senate Banking Committee on Thursday, Federal Reserve Chairwoman Janet Yellen pointed out, "We're watching inflation very carefully in light of low readings, I think it's premature to conclude that the underlying inflation trend is falling well short of 2%. I haven't reached such a conclusion. I think it (3% growth target set by the Donald Trump administration) would be quite challenging."

Therefore, as long as 0.9680 holds as the key resistance, we expect a break below the nearest support at 0.9615 at first.

Chart 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 show the support levels and the green line indicates the resistance levels. These levels can be used to enter and exit trades.

Strategy: SELL, Stop Loss: 0.9680, Take Profit: 0.9615

Resistance levels: 0.9700, 0.9730, and 0.9775

Support levels: 0.9615, 0.9600, and 0.9575

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

Technical analysis of NZD/USD for July 14, 2017

NZDUSDM30.png

The pair is expected to trade in a higher range and maintin its bullish outlook in the short term. Although the pair retreated from 0.7370 (the high of July 13), a support base at 0.7305 has formed and has allowed for a temporary stabilization. The rising 50-period moving average plays a support role. The relative strength index is supported by a rising trend line since July 11.

Hence, as long as 0.7295 is not broken, look for a rebound to 0.7370 and even to 0.7400 in extension.

Strategy: BUY Stop Loss: 0.7295 Take Profit: 0.7370

Chart Explanation: The black line shows the pivot point. Currently, the price is above the pivot point which indicates the bullish position. If it is below the pivot points, it indicates the short position. The red lines show the support levels and the green line indicates the resistance levels. These levels can be used to enter and exit trades.

Resistance levels: 0.7370, 0.7400, and 0.7450

Support levels: 0.7280, 0.7265, and 0.72

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

Candlestick analysis of EUR / JPY for July 14

4h

eur4h.png

The bovine candle formation "Absorption" and the subsequent bullish formation "Harami" allowed the pair to turn in favor of the European currency and begin to increase in the direction of the Fibo level of 200.0% - 130.92. The bearish formation on July 14 will be interpreted as a correction signal, since the equidistance channel is "up" and will allow to count on a turn in favor of the Japanese currency and a slight drop toward the corrective level of 161.8% to 127.85. Strengthening the rate of the pair below the Fibo level of 161.8% will increase the chances of further falling quotations.

The Fibo grid is built on extremes from March 13, 2017 and April 17, 2017.

Daily

eurdaily.png

On the 24-hour chart, the pair executed a reversal in favor of the Japanese currency and consolidation under the correction level of 161.8% - 129.77. As a result, the drop in quotations can be continued in the direction of the next Fibo level of 100.0% - 124.07. The bovine candle formation "Doji" allows the pair to turn in favor of the euro and resume growth. Passing a pair of its low or a bear formation will work in favor of the continued drop in quotations. Fixing a pair above the Fibo level of 161.8% will increase the likelihood of continued growth.

The Fibo grid is built on extremes from December 15, 2016 and April 17, 2017.

Specification:

Weak candle formations will be marked by the usual text and the size of the arrows.

Strong candle formations will be marked by a more bold text and a larger size of arrows.

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

Candlestick analysis of NZD / USD for July 14

4h

nzd4h.png

Quotations of the pair NZD / USD continued the growth process and fixed over the correction level of 200.0% - 0.7289. However, the bear formation "Falling Star" allows traders to expect a turn in favor of the US currency and a return to the Fibo level of 200.0%. The new bullish formation on July 14 will allow us to count on the resumption of the growth of quotations in the direction of the correction level of 261.8% to 0.7435. The consolidation of the pair's rate below the Fibo level of 200.0% will work in favor of a further drop in quotations in the direction of the correction level of 161.8% - 0.7199.

The Fibo grid is built on extremes from April 24, 2017 and May 11.

Daily

nzddaily.png

On the 24-hour chart, after the bovine candlestick formation "Kharami", the quotes executed a turn in favor of the currency of New Zealand and resumed growth in the direction of the correction level of 0.0% -0.7483. The bearish formation will allow traders to expect a reversal in favor of the US dollar and the resumption of the decline in the direction of the correction level of 23.6% - 0.7172. The consolidation of the pair's rate below the Fibo level of 23.6% will increase the likelihood of continuing the decline towards the corrective level of 38.2% - 0.6977.

The Fibo grid is built on extremes from August 24, 2015 and September 8, 2016.

Specification:

Weak candle formations will be marked by the usual text and the size of the arrows.

Strong candle formations will be marked by a more bold text and a larger size of arrows.

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

Analysis of GBP / USD Divergences for July 14

4h

gbpdaily.png

On the 4-hour chart, the pair executed a reversal in favor of the pound sterling and continues the growth process in the direction of the correction level of 161.8% - 1.3076. On July 14, a new bearish divergence is brewing, in MACD indicator: The last peak of quotations may turn out lower than the previous one, and the analogous peak of the indicator is higher than the previous one. Bearish divergence will allow traders to count on a reversal in favor of the US currency and a slight drop towards the corrective level of 100.0% - 1.2707.

Daily

gbp4h.png

On the 24-hour chart, without the formation of a bullish signal, the quotes executed a reversal in favor of the currency of England and began to increase in the direction of the Fibo level of 161.8% - 1.3105. Today there are no visible divergents in any indicator. The retracement of the pair's exchange rate from the correction level of 161.8% will allow to expect a turn in favor of the US currency and a slight drop towards the corrective level of 200.0% - 1.2653. Fixing the quotes above the level of Fibo 161.8% will increase the chances for further growth in the direction of the next correction level of 100.0% - 1.3835.

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