Trading Plan for EUR/USD and GBP/USD for August 28, 2017

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Technical outlook:

The EUR/USD made short calls yet again last Friday. The pair has opted for the least probable wave count of producing an expanded flat movement as seen here. Maybe, the pair is looking to make one more high above 1.2951 levels before giving into bears again. Structurally, EUR/USD still looks to be in the wave 4 correction and is expected to drop to 1.1500 and lower before deciding on further action. Though it seems one should be aggressive for now, remaining short or preparing to go short again. Interim resistance is at 1.2950 levels, while support is seen at 1.1770 levels. If this count fails, an alternative could be a continued rally higher to complete 5 waves that began on January 2017, which looks unlikely for now.

Trading plan:

Aggressive traders might want to go short again with a stop above 1.1951 and the target is open. Conservative traders would want to wait for a new high just in case.

GBP/USD chart setups:

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Technical outlook:

The GBPUSD did rally on Friday as discussed earlier but unfortunately we got out earlier. Nevertheless the pair is now turning to be a good case to sell on rallies. As depicted here, GBPUSD is expected to terminate wave 2 anytime soon, to proceed lower into wave 3 and further. The wave structure reveals that GBPUSD has finished wave 1, that unfolded into 5 waves from 1.3267 through 1.2770 levels last week. At present it is unfolding into wave 2, which is expected to terminate into 1.2960 or 1.3075 levels going forward. Initial resistance is now seen at 1.3050 levels, while interim support is through 1.2770 levels respectively. Bears are expected to remain overall under control till prices remain broadly below 1.3267 levels.

Trading plan:

Selling partially at 1.2950/60 and remaining at 1.3075 with stop above 1.3270 levels is a good plan here.

Fundamental outlook:

There are no major events lined up for the rest of the day.

Good luck!

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Analysis of Gold for August 28, 2017

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Recently, gold has been trading upwards. The price tested the level of $1,299.55. According to the 30M time frame, I found the rising wedge formation, which is a sign that buying looks risky. My advice is to watch for potential selling opportunities. There is also hidden bearish divergence on the moving average oscillator, which is another sign of weakness. Watch for a breakout of the upward trend line to confirm further decline in prices. The downward target is set at the price of $1,289.00.

Resistance levels:

R1: $1,300.00

R2: $1,301.00

R3: $1,302.00

Support levels:

S1: $1,296.00

S2: $1,295.00

S3: $1,294.00

Trading recommendations for today: watch for potential selling opportunities.

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GBP/USD analysis for August 28, 2017

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Recently, the GBP/USD has been trading upwards. The price tested the level of 1.2923. According to the 30M time frame, I found re-test of the previous high at the price of 1.2920, which is sign that buying looks risky. Stochstic oscilator is showing a hidden bearish divergence, which is another sign of weakness. My advice is to watch for potential selling opportunities. The downward targets are set at the price of 1.2875 and 1.2820.

Resistance levels:

R1: 1.2920

R2: 1.2935

R3: 1.2945

Support levels:

S1: 1.2895

S2: 1.2885

S3: 1.2870

Trading recommendations for today: watch for potential selling opportunities.

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Technical analysis of USD/JPY for August 28, 2017

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USD/JPY is under pressure and expected to continue the downside movement. The pair broke below its 20-period and 50-period moving averages, which play resistance roles. The relative strength index is mixed with a bearish bias. The upside potential should be limited by the key resistance at 109.55.

Hence, as long as this key level is not surpassed, look for a further decline to 109.00 and even to 108.80 (the low of August 24) in extension.

Alternatively, if the price moves in the opposite direction, a long position is recommended above 109.55 with a target at 109.80.

Chart Explanation: The black line shows the pivot point. The current price above the pivot point indicates a bullish position, while the price below the pivot point is a signal for a short position. The red lines show the support levels and the green line indicates the resistance level. These levels can be used to enter and exit trades.

Strategy: SELL, Stop Loss: 109.55, Take Profit: 109.00

Resistance levels: 109.80, 110.05, and 110.55

Support Levels: 109.00, 108.80, 108.60

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Technical analysis of USD/CHF for August 28, 2017

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All our targets which we predicted in the previous analysis have been hit. The pair is expected to move further downward and continue its downside movement. The pair is holding on the downside and is trading below its declining 20-period and 50-period moving average, which play resistance roles and maintain the bearish bias. The relative strength index is bearish and calls for a further decline.

he U.S. dollar came under pressure as Yellen did not sound a hawkish tone on interest rates at the annual central banking conference in Jackson Hole, Wyoming. Meanwhile, the euro surged after European Central Bank President Mario Draghi showed a lack of concern about strength in the single currency while pointing out solid economic recovery in the eurozone.

Therefore, as long as 0.9595 holds on the upside, a new test to 0.9495 and even to 0.9455 seems more likely to occur.

Chart Explanation: The black line shows the pivot point. The present price above the pivot point indicates the bullish position, and the price below the 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: 0.9595, Take Profit: 0.9495

Resistance levels: 0.9615, 0.9660, and 0.9700

Support levels: 0.9495, 0.9455, and 0.9415

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Technical analysis of GBP/JPY for August 28, 2017

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GBP/JPY is expected to trade with bullish bias as the pair is trading on the upside. The pair accelerated on the upside last Friday following the bullish penetration of its previous rising channel. The relative strength index is displaying strong bullish momentum and advocates further advance. The rising 20-period and 50-period moving averages act as strong support roles.

In these perspectives, as long as 140.40 is not broken, likely advance to 141.20 and 141.50 in extension.

Alternatively, if the price moves in the opposite direction as predicted, a short position is recommended below 140.40 with the target at 141.20.

Strategy: BUY, Sto p Loss: 140.40, Take Profit: 141.20.

Chart Explanation: the black line shows the pivot point. The price above the pivot point indicates the bullish position; and when it is below the pivot points, it indicates a 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: 141.20, 141.50, and 142.00

Support levels: 140.10, 139.80, and 139.10

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Intraday technical levels and trading recommendations for EUR/USD for August 28, 2017

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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 was 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.

However, the EUR/USD pair has been trapped within the depicted consolidation range (1.0500-1.1450) until the current bullish breakout was executed above 1.1450.

The current bullish breakout above 1.1450 allows a quick bullish advance towards 1.1850 and 1.2000-1.2100 where price action should be watched for evident bearish rejection and a valid SELL Entry.

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Daily Outlook

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

As anticipated, the ongoing bullish momentum allowed the EUR/USD pair to pursue further bullish advance towards 1.1415-1.1520 (Previous Daily Supply-Zone).

The daily supply zone failed to pause the ongoing bullish momentum. Instead, an evident bullish breakout is being witnessed on the chart. The nearest supply level to meet the pair is located around 1.2080 (Level of previous multiple bottoms) where bearish rejection can be anticipated.

On the other hand, the price zone of 1.1415-1.1520 should be watched for a valid BUY entry if a bearish pullback occurs soon.

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NZD/USD Intraday technical levels and trading recommendations for August 28, 2017

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Daily Outlook

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

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

The price zone of 0.7150-0.7230 (Key-Zone) stood as a temporary resistance zone until a bullish breakout was expressed above 0.7230.

This resulted in a quick bullish advance towards the next supply zone around 0.7310-0.7380 which was temporarily breached to the upside.

The recent bearish pullback was executed towards the price zone of 0.7310-0.7380 (newly-established demand-zone) which failed to offer enough bullish support for the NZD/USD pair.

Re-consolidation below the price level of 0.7300 enhances the bearish side of the market. This brings the NZD/USD pair again towards 0.7230-0.7150 (Key-Zone) where recent weak bullish recovery was manifested on August 16.

On the other hand, an atypical Head and Shoulders pattern is being expressed on the depicted chart indicating a high probability of bearish reversal.

Breakdown of the neckline 0.7150 confirms the reversal pattern. Expected bearish targets are located around 0.7050, 0.6925 and eventually 0.6800.

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Technical analysis of NZD/USD for August 28, 2017

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NZD/USD is expected to trade with a bullish outlook. The technical picture of the pair is positive as the prices recorded higher tops and higher bottoms since August 24. The bullish cross between 20-period and 50-period moving averages has been identified. The relative strength index is supported by the rising trend line.

To sum up, as long as 0.7205 holds on the downside, look for a further advance to 0.7260 and even to 0.7280 in extension.

The black line shows the pivot point. Currently, the price is above the pivot point which indicates the bullish position. If it remains below the pivot point, it will indicate 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: 0.7260, 0.7280, and 0.7315

Support levels: 0.7185, 0.7160, and 0.7130

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Fundamental Analysis of EUR/USD for August 28, 2017

EUR/USD has shown impulsive bullish move breaking above 1.1850 with a daily close recently. As of the recent bad economic reports of USD, EUR has gained quite a good momentum as well which helped the currency to climb much higher after a certain corrective volatile structure in place. Recently USD Core Durable Goods orders report was published with an increase at 0.5% from the previous value of 0.1% which was expected to be at 0.4% and Durable Goods Orders showed worse figure at -6.8% from the positive previous value of 6.4% which was expected to be at -6.0%. FED Chair Yellen also could not provide any more clues to signal hawkish sentiment of the economic decision which also leads to further weakness of the USD. In the weekend, Draghi had his speech where he explained how happy he is with the current economic condition of EUR and they are on the way to achieve the inflation target soon which leads to a GAP in the market in today's opening and powered the bullish bias of the market in this pair. Today EUR M3 Money Supply report was published with a decreased figure at 4.5% from the previous value of 5.0% which was expected to be at 4.9% and Private Loans report was published unchanged at 2.6% which was expected to increase to 2.7%. On the USD side, today Goods Trade Balance report is going to be published which is expected to show a greater deficit at -64.5B from the previous figure of -64.0B and Prelim Wholesale Inventories report is expected to decrease to 0.3% from the previous value of 0.7%. To sum up, USD is expected to gain some grounds of EUR for a shorter term but overall EUR is expected to gain more in the coming days as of the current market sentiment and economic structure of the economies.

Now let us look at the technical view, the price is currently residing above the support area of 1.1820-50. Currently, the price is expected to retrace towards the support area before pushing up much higher towards the recent resistance of 1.2140. As the price remains above the support area and dynamic level of 20 EMA the bullish bias is expected to continue further.

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Global macro overview for 28/08/2017

Global macro overview for 28/08/2017:

No real breakthrough in Jackson Hole after two-day symposium ended. The Fed Chairperson Jannet Yellen speech last Friday was focused mainly on defending the regulatory action taken in response to the 2007 financial crisis. She did not address the current economic and monetary policies. She disagreed with the position of President Donald Trump and Congressional Republicans that the regulatory burden is strangling lending and has handicapped the US economy. The Dodd-Frank Act, which was introduced in 2010 by Obama administration, had been repeatedly criticized by Trump during his election campaign. This regulatory action was broadly defended by Yellen, who argued, that many of the changes that the act had initiated had made the financial system safer."The balance of research suggests that the core reforms we have put in place have substantially boosted resilience without unduly limiting credit availability or economic growth," she said during her speech.

Despite the fact that Jannet Yellen did not comment the current Fed monetary policy, the market participants have received very important news, regarding the future of Yellen as a Fed Chairperson. Her term finishes in February 2018, so the next Fed Chair will be introduced shortly. Because her point of view regarding the banking system is directly opposite to the Trump's point of view, her chances for the next term appointment has shrunk drastically after Jackon Hole speech.

Some investors feared that Yellen would use the opportunity to tighten up the rhetoric and warn the markets of excessive optimism and a further increase in risk appetite. Because none of this has happened, the market participants have resumed the trade that has been in force for weeks and further sold the US Dollar across the board.

Let's now take a look at the US Dollar Index technical picture at the H4 time frame. The price has broken below the technical support at the level of 92.54 and now is heading towards the next important support at the level of 91.93. As long as the golden trend line is violated, the outlook remains bearish.

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Global macro overview for 28/08/2017

Global macro overview for 28/08/2017:

The highly anticipated Jackson Hole speeches finally arrived at the end of last week, but neither the Federal Reserve Chairperson Janet Yellen nor the European Central Bank President Mario Draghi elected to comment specifically on monetary policy. Mario Draghi chose to speak solely about economic regulation and the dangers associated with any de-regulation in the current economic climate. He commented specifically in reference to the previous crisis from 2008, as he appeared to talk directly to the Trump administration: "With monetary policy globally very expansionary, regulators should be wary of rekindling the incentives that led to the crisis".

A lack of statements regarding the future ECB monetary policy was treated as positive. Mario Draghi decision not to take the opportunity to talk down the Euro, was considered to be further indication that he is reasonably comfortable with the current level the EUR is trading at (EUR/USD specifically). Nevertheless, the possibility of some sort of quantitative easing tapering that might be announced in September by the ECB Governing Council is still high. More explicit details should be provided on October meeting. Moreover, ECB members will try to prevent aggressive tightening in the financial conditions in the shape and form of a surging Euro currency across the board.

Let's now take a look at the EUR/GBP technical picture at the H4 time frame. The price has hit the 10 months high at the level of 0.9268, but the market conditions look extremely overbought. This is the key long-term resistance for the price, but so far there are no signs of a trend reversal. The next technical support is seen at the level of 0.9144, so it is worth to keep an eye on this pair for any trend reversal patterns ( ie: double top).

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Technical analysis of EUR/USD for August 28, 2017

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Overview:

  • On the one-hour chart, the EUR/USD pair bullish trend from the support levels of 1.1846 and 1.1895. Currently, the price is in a bullish channel. This is confirmed by the RSI indicator signaling that we are still in a bullish trending market. As the price is still above the moving average (100), immediate support is seen at 1.1895, which coincides with a golden ratio (78.6% of Fibonacci). Consequently, the first support is set at the level of 1.1895. So, the market is likely to show signs of a bullish trend around the spot of 1.1895/1.1846. In other words, buy orders are recommended above the golden ratio (1.1846) with the first target at the level of 1.1959 (the double top).We should see the pair climbing towards the double top (1.1959) to test it. Furthermore, if the trend is able to break out through the first resistance level of 1.1959, then the trend will continue towards the next targets of 1.1988 and 1.2031. It would also be wise to consider where to place a stop loss; this should be set below the second support of 1.0123.
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Ichimoku indicator analysis of USDX for August 28, 2017

The Dollar index made the second rejection as expected and is breaking to new lows. Target remains at 91.60 and trend remains bearish.

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Red lines - bullish channel (broken)

The Dollar index is in a bearish confirmed trend since the channel and the cloud support failed to hold price. We mentioned that and even after the back test of the cloud and the channel we remained bearish. Support is now at 91.80-91.60 where the short-term target is found.

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Short-term resistance is at 92.80. The Dollar index made a new monthly low but both RSI indicators did not. A move above 93.30 will confirm trend reversal and a push towards 94-95 will be expected. Dollar bears need to be very cautious. This divergence is a warning, not a confirmed reversal. The trend remains bearish.The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of GBP/USD for August 28, 2017

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Overview:

  • The GBP/USD pair fell from the level of 1.3008, which coincides with the ratio of 61.8% Fibonacci retracement, to the bottom around 1.2848. But it rebounded from the spot of 1.2850 to set at the level od1.2928 currently. The GBP/USD pair will probably keep moving downwards from the levels of 1.2928/1.3008. The first resistance level is seen at 1.2928 followed by 1.3008, while daily support 1 is found at 0.6817. Besides, the level of 1.2848 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 GBP/USD pair is declining from the new resistance line of 1.2928 towards the first pivot level at 1.2848 in order to test it. Hence, we recommend selling below 1.2848 with the first target at 1.2748. If the pair succeeds to pass through the level of 1.2748. Then, the market will indicate a bearish opportunity below the level of 1.2748 in order to continue towards the next objectives of 1.2668 and 1.2588. However, if a breakout happens at the resistance level of 1.3008, then you'd better set your stop loss at 1.3028.
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Ichimoku indicator analysis of gold for August 28, 2017

The Gold price tested the lower cloud boundaries on Friday on a mini flash crash but support was respected and price bounced back up very fast. The price now continues to follow our expected path for a move above $1,300.

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Magenta line - expected path

The Gold price held above cloud support and bounced strongly on Friday. Gold is now breaking out and above the trading range, we were in for the last couple of weeks. Gold is finally breaking above $1,300 heading towards $1,320-40.

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Black line -long-term resistance

Blue line - long-term support

Thr Gold price is in a bullish trend. If you follow my analysis you will already know I've been bullish Gold long-term for the last two years. Gold has now broken above the long-term resistance trend line and even if it pulls back towards $1,250, it will be seen as a great bullish opportunity to buy it.

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Trading plan for 28/08/2017

Trading plan for 28/08/2017:

The EUR/USD moved out from the trading range of 1.1680 - 1.1850 and currently is trading over 1.1900 level. Already in today's Asian session, the rate set a new local high of 1.1950. USD/JPY defends the level of 109.00, the GB/ USD is unable to hold above 1.2900. NZD/USD can not hit 0.7250 and AUD/USD - 0.7950. On the Asian markets mixed moods. The Nikkei 225 oscillates around the Friday close, Shanghai Composite and Hang Seng grow 0.9% and 0.5%.

On Monday 28th of August, the event calendar is light in economic releases. The market participants will keep an eye only on Money Supply data from the Eurozone and Goods Trade Balance from the US.

EUR/USD analysis for 28/08/2017:

The Money Supply and Private Sector Loans data from the Eurozone are scheduled for release at 08:00 am GMT. The market participants expect the supply of all currency in circulation, bank deposits, repurchase agreements, debt securities up to 2 years, and the value of money market shares to decrease from 5.0% to 4.9% on yearly basis. But that's still in line with relatively steady pace in recent months, which implies that the central bank is using a 5% trend as a rough target. The gauge of money supply, which has been trending up this year, increased 9.7% in June vs. the year-earlier level. This is a moderately faster increase vs. the recent low of 8% as of last October. Another rise would strengthen expectations that the ECB will maintain its aggressive stimulus policies for the near term and move away from the possibility of a rate hike.

Let's now take a look at the EUR/USD technical picture at the H4 time frame. The round number of 1.2000 attracts the price like a magnet and this level might be hit before any meaningful corrective cycle will occur. Currently, the technical support is seen at the level of 1.1908. The market conditions are starting to look overbought at this time frame, but the momentum indicator still points out to the north. No signs of a bearish divergence yet.

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Market Snapshot: USD/JPY range get tighter

The price of USD/JPY is now trading in a tight range between the levels of 109.84 - 108.79. The lower level of the range is the important technical support as any violation of this level will open the road towards the support at the level of 108.07. On the other hand, a breakout above the level of 109.84 will put the local lower high at the level of 111.00 for a test.

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Market Snapshot: Gold breaks through the resistance

The price of Gold has broken through a key resistance at $1296, where the highs established in April and June of this year fell. The permanent closure of the daily candle above this level will open the road to significantly higher levels. The next barrier for the bulls will be the level of $1320 as an external projection of the Fibonacci 127% level. It is worth to pay attention to a round number of $1300, although it should not stop the growth for a long time. Support is a short-term upward trend line at $ 1290.

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Elliott wave analysis of EUR/NZD for August 28, 2017

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EUR/NZD - Daily

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EUR/NZD - 4 Hourly

Wave summary:

EUR/NZD continues to rally nicely towards the 1.6636 target, this resistance should only prove to be a minor bump on the way higher towards the 1.6969 target. Longer term, we are looking for even higher levels, with 1.7038 seen as the next upside target once resistance at 1.6969 is cleared too.

Support is now seen at 1.6330 and is expected to protect the downside for the rally to 1.6636 and above.

R3: 1.7038

R2: 1.6969

R1: 1.6711

Pivot: 1.6500

S1: 1.6440

S2: 1.6366

S3: 1.6330

Trading recommendation:

We are long EUR from 1.6150. We will move our stop higher to 1.6275. If you are not long EUR yet, then buy near 1.6330 and use the same stop at 1.6275.

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Elliott wave analysis of EUR/JPY for August 28, 2017

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EUR/JPY - Daily

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EUR/JPY - 4 Hourly

EUR/JPY continues to work its way higher and the break above resistance at 130.40 confirmed that the X-wave completed the test of 127.52 and the final zig-zag rally towards 137.36 now is developing.

Short-term, we could see a minor setback to 129.15 before the next rally higher towards 131.40 and above should be expected.

R3: 133.19

R2: 132.50

R1: 131.40

Pivot: 131.00

S1: 130.22

S2: 129.57

S3: 129.15

Trading recommendation:

We are long EUR from 128.50 with stop placed at 127.75. If you are not long EUR yet, then buy near 129.15 and use the same stop at 127.75.

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

Trading plan for August 25, 2017

Forex analysis review
Trading plan for August 25, 2017

Daily analysis of major pairs for August 28, 2017

EUR/USD: The EUR/USD moved sideways last week (being neutral in the short-term and bullish in the long-term). Price broke upwards on Friday, thus creating a bullish signal, and as a result of this, the resistance lines at 1.1950 and 1.2000 would be targeted. The resistance line at 1.2000 could try to impede further bullish movement at that point, for there is also a possibility of price coming downwards before the end of the week.

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USD/CHF: This pair is bearish in the long-term, butt neutral in the short-term. The bearish breakout that was seen on August 25 was not significant enough to override the short-term neutrality in the market unless price breaks the support level at 0.9550 and 0.9500 to the downside, which would happen as the EUR/USD journeys upwards. A sharp rise in the USDCHF would happen only when there is a sharp drop in the EUR/USD.

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GBP/USD: The GBP/USD has lost roughly 450 pips this month, and the upwards bounce that was seen on Friday was not significant enough to threaten the overall bearish movement. The outlook on GBP pairs for this week, and for the month of September, is bearish. Thus it is expected that the bearish movement in the market would continue as price targets the accumulation territories at 1.2850, 1.2800 and 1.2750.

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USD/JPY: This currency trading instrument is neutral in the short-term and bearish in the long-term. The strong movements that are being seen on some other JPY pairs seem not have any impact on the USD/JPY. There is an expectation of further bearish movement this week, and this month. The outlook on JPY pairs is bearish for the week and for September.

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EUR/JPY: This cross did something interesting last week, in that it started making a bullish effort at the beginning of last week, and the effort became so significant on Friday. Price closed above the demand zone at 130.00, targeting the supply zone at 130.50 (The market closed at 130.39 on Friday). This week, the market could gain another 200 pips, but it would eventually come down, owing to a generally bearish outlook on JPY pairs.

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Technical analysis of EUR/USD for Aug 28, 2017

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When the European market opens, some Economic Data will be released, such as Private Loans y/y and M3 Money Supply y/y. The US will release the Economic Data, too, such as Prelim Wholesale Inventories m/m and Goods Trade Balance, so, amid the reports, EUR/USD will move in a ... volatility during this day.

TODAY'S TECHNICAL LEVEL:

Breakout BUY Level: 1.2010.

Strong Resistance:1.2003.

Original Resistance: 1.1991.

Inner Sell Area: 1.1979.

Target Inner Area: 1.1951.

Inner Buy Area: 1.1923.

Original Support: 1.1911.

Strong Support: 1.1899.

Breakout SELL Level: 1.1892.

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 Aug 28, 2017

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In Asia, today Japan will not release any Economic Data, but the US will release some Economic Data, such as Prelim Wholesale Inventories m/m and Goods Trade Balance. So, there is a probability the USD/JPY will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Resistance. 3: 109.71.

Resistance. 2: 109.49.

Resistance. 1: 109.28.

Support. 1: 109.5201.

Support. 2: 108.80.

Support. 3: 108.58.

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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EUR/JPY broken major resistance, remain bullish for a further push up

The price has broken above our major resistance at 130.42 (Fibonacci retracement, horizontal resistance-turned-support) and we turn bullish looking to buy on dips above this level for a push up to at least 131.41 resistance (Fibonacci extension, horizontal swing high resistance).

RSI (34) sees a bullish exit of our long term descending resistance-turned-support signaling a change in momentum.

Buy above 130.42. Stop loss is at 129.95. Take profit is at 131.41.

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USD/CHF profit target reached absolutely perfectly, prepare to buy

The price has dropped absolutely perfectly to our profit target. We prepare to buy above major support at 0.9519 (Fibonacci retracement, Fibonacci extension, horizontal support) for a bounce up to at least 0.9617 resistance (Fibonacci retracement, horizontal pullback resistance).

Stochastic is approaching major support at 3.1% where we expect a bounce from.

Buy above 0.9519. Stop loss is at 0.9483. Take profit is at 0.9617.

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NZD/USD bouncing up nicely as expected, prepare to sell

The price has bounced up nicely as expected from our buying area. We remain bullish looking to buy above major support at 0.7202 (Fibonacci extension, horizontal swing low support) for a further push up to at least 0.7331 resistance (Fibonacci retracement, horizontal swing high resistance).

Stochastic (34,5,3) is seeing major support above 3.3% where we're seeing a corresponding bounce from along with good upside potential.

Sell below 0.7202. Stop loss is at 0.7153. Take profit is at 0.7331.

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USD/JPY remain bullish for a further rise

The price continues to hover above support but see a long term descending resistance as first intermediate resistance. We remain bullish looking to buy above major support of 108.85 (Fibonacci extension, horizontal swing low support) for a push up to at least 110.28 resistance (Fibonacci retracement, horizontal overlap resistance). It is important to be wary of the descending resistance as price approaches it.

Stochastic (34,5,3) is making higher lows pushing price up.

Buy above 108.85. Stop loss is at 108.28. Take profit is at 110.28.

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AUD/JPY profit target reached prepare to sell

The price has shot up perfectly and reached our first profit target. We prepare to sell below major resistance at 87.00 (Fibonacci retracement, descending resistance, horizontal overlap resistance, bearish price action) for a push down to at least 86.01 support (Fibonacci extension, horizontal swing low support).

Stochastic (34,5,3) is seeing major resistance below 94% and we expect a corresponding reaction similar to the one we're expecting on price.

Sell below 87.00. Stop loss is at 87.25. Take profit is at 86.01.

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AUD/USD shot up perfectly to our profit target, prepare to sell

The price has shot up perfectly as expected and has reached our profit target perfectly. We are now approaching major resistance at 0.7963 (Fibonacci retracement, Fibonacci extension, horizontal swing high resistance, Elliott wave theory) and we expect a strong reaction off this level to push the price down to 0.7869 support (Fibonacci retracement, multiple horizontal swing low support).

Stochastic (34,5,3) is seeing major resistance below 95% where we expect a corresponding drop similar to the one we're expecting on price.

Sell below 0.7963. Stop loss is at 0.7984. Take profit is at 0.7869.

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Daily analysis of USDX for August 28, 2017

Jackson Hole's event helped to add pressure on the US Dollar and currently is trading below the 93.00 handle. After several days trapped in a range, the index looks like it's riding a nice bearish consolidation below the 200 SMA at H1 chart. If we witness a breakout below 92.51, we can expect further weakness towards the 92.09 level.

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H1 chart's resistance levels: 93.09 / 93.72

H1 chart's support levels: 92.51 / 92.09

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 92.51, take profit is at 92.09 and stop loss is at 92.91.

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Daily analysis of GBP/USD for August 28, 2017

The pair received a boost during Friday's session, as the US Dollar weakened against its major competitors. GBP/USD is now looking for a consolidation above the 200 SMA at H1 chart and looks forward to reaching the resistance level of 1.2958, once it manages to break August 21st highs. MACD indicator remains in the positive territory, favoring to the bulls.

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H1 chart's resistance levels: 1.2958 / 1.3013

H1 chart's support levels: 1.2842 / 1.2761

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 1.2842, take profit is at 1.2761 and stop loss is at 1.2921.

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