Thread: InstaForex Wave Analysis

USD/JPY wave analysis for February 7, 2011






Decreasing price of the USD/JPY pair to the 81.20 level has marked the 5th wave in the estimated C and its probable completion. At the same time, further dynamic rebound of 120 pips in general proves completeness of the correction downside movement in the range of the 2nd wave, formed after January 7. If so, it is most likely that the pair will continue advancing in the direction of the levels near the 84 figure and above.

Performed by Alexander Dneprovskiy, Analytical expert
InstaForex Companies Group © 2007-2011


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EUR/JPY Strong Resistance in 113.00 , February 7, 2011 (Daily Strategy)








EUR/JPY
The Euro - Japanese Yen pair is incapable to drilling the resistance level of 113.00 will tend to move downward toward the major support level of 109.60.That said, the fact it failed to breach the nearby 111.26 support level signals of the possibility of a new climb towards the 113.00 resistance level. Such a movement will create a good opportunity to form a sell position at an attractive price.

Should the pair fail to improve its price upwards, it would be desirable to also prepare ourselves to a downwards breach through the 111.34 support level, since it is likely to cause a momentum-driven wave of downwards movements that is likely to lead the pair to the low and support level of 107.00 Japanese Yen for one Euro. On the way down we may use the 109.60 support level as a preferred goal for realizing the sell position on the pair.






Performed by Gerardo Porras Palomino, Analytical expert
InstaForex Companies Group © 2007-2011



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AUD/USD. Weekly and Monthly Pivot Points, For February 07, to February 11, 2011




_____WEEKLY_______
Weekly - R3 = 1.0603
Weekly - R2 = 1.0401
Weekly - R1 = 1.0269
Weekly Pivot = 1.0067
Weekly - S1 = 0.9935
Weekly - S2 = 0.9733
Weekly - S3 = 0.9601





_____MONTHLY______
Monthly - R3 = 1.0595
Monthly - R2 = 1.0404
Monthly - R1 = 1.0186
Monthly Pivot = 0.9995
Monthly - S1 = 0.9777
Monthly - S2 = 0.9586
Monthly - S3 = 0.9368





Performed by Gerardo Porras Palomino, Analytical expert
InstaForex Companies Group © 2007-2011


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GBP/USD. Weekly and Monthly Pivot Points, For February 07, to February 11, 2011


_____WEEKLY______
Weekly - R3 = 1.6776
Weekly - R2 = 1.6528
Weekly - R1 = 1.6319
Weekly Pivot = 1.6069
Weekly - S1 = 1.5862
Weekly - S2 = 1.5612
Weekly - S3 = 1.5405





_____MONTHLY______
Monthly - R3 = 1.6899
Monthly - R2 = 1.6477
Monthly - R1 = 1.6247
Monthly Pivot = 1.5825
Monthly - S1 = 1.5595
Monthly - S2 = 1.5173
Monthly - S3 = 1.4943






Performed by Gerardo Porras Palomino, Analytical expert
InstaForex Companies Group © 2007-2011


More analysis - at instaforex.com



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EUR/USD. Weekly and Monthly Pivot Points, For February 07, to February 11, 2011



_____WEEKLY_______
Weekly - R3 = 1.4101
Weekly - R2 = 1.3981
Weekly - R1 = 1.3782
Weekly Pivot = 1.3662
Weekly - S1 = 1.3463
Weekly - S2 = 1.3343
Weekly - S3 = 1.3144





_____MONTHLY______
Monthly - R3 = 1.4898
Monthly - R2 = 1.4327
Monthly - R1 = 1.4010
Monthly Pivot = 1.3439
Monthly - S1 = 1.3122
Monthly - S2 = 1.2551
Monthly - S3 = 1.2234





Performed by Gerardo Porras Palomino, Analytical expert
InstaForex Companies Group © 2007-2011

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Fundamental Analysis, February 8, 2011


The Federal reserve bank announced yesterday of its intend to widen the purchase of ten-year Treasury bonds, this in order to lower the interest rate in the United States. The purchases performed by the Federal Reserve so far have led to the increase in the price of junk bonds and stock, and in policy setters are now focusing on ten-year bonds, hoping to limit the rise in dividends that is influencing the interest rates on the market.

The Commodities exchange has recorded sharp drops yesterday due to the drop in global commodity prices. The price of copper in London dropped by 0.8% to 9970 United States Dollars for one ton after reaching a record high of 10,160 United States Dollars for one ton. Crude oil futures for March have dropped by about 0.2% to 87.32 United States Dollars for one barrel during electronic trading at the New York Commodities exchange.

Europe's stock exchanges completed the longest string of daily rises in weight weeks, locking at their highest level since September 2008, based on estimates that the global economic recovery is accelerating. The London stock exchange has closed at a 0.8% climb, the Frankfurt stock exchange climbed by 0.9%, while the Paris stock exchange climbed by 1.1%.

Performed by Gerardo Porras Palomino, Analytical expert
InstaForex Companies Group © 2007-2011


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GBP/USD wave analysis for February 8, 2011







Most of the previous day the GBP/USD pair was trading within a quite narrow range near the day’s opening level. Besides, inner wave structure of the 2nd wave might get more complicated. At the same time the pound still has a potential to resume upside movement and form a more continuous 5th wave (in the A) of the whole uptrend, initiated December 28.

Performed by Alexander Dneprovskiy, Analytical expert
InstaForex Companies Group © 2007-2011


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EUR/USD Bearish Outlook ,February 08, 2011 (Daily Strategy)






EUR/USD

The Euro-United States dollar pair is in a range of 300 - points. between 1.3850 and 1.3550 level. From here on out, the pair is expected to move back towards the upper range of the pattern, which will enable entry into a sell deal on the pair at an attractive price. It is possible to use the 1.3780 resistance level as an entry trigger for a sell deal.

We should take into account the possibility at the Euro – United States Dollar pair might continue its negative momentum rather than climb upwards, thus breaching the 1.3570 support level. A clean breach of this level will form a positive indication of continued movement to the south, towards the major 1.3345 support level – our final exit goal from the sell position on the pair.



Performed by Gerardo Porras Palomino, Analytical expert
InstaForex Companies Group © 2007-2011



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USD/CAD Bullish Outlook ,February 08, 2011 (Daily Strategy)








USD/CAD


The United States dollar - canadian dollar - pair in the last low that has formed in candles made an hour a pattern, called shoulder head shoulder, from our perspective is expected to break the weekly pivot at 0.9920 would confirm our forecast upward and this would lead us towards the goal of 1.0008 around the weekly trend line.



Performed by Gerardo Porras Palomino, Analytical expert
InstaForex Companies Group © 2007-2011


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EUR/USD wave analysis for February 8, 2011









During yesterday’s trading the EUR/USD currency pair could not define further direction and stayed near the session’s opening levels by the end of the day. At the same time current wave situation allows both certain growth of the price in the range of a more prolonged estimated b and complications of inner structure of the a wave with prolongation in its 3rd wave.

Performed by Alexander Dneprovskiy, Analytical expert
InstaForex Companies Group © 2007-2011


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Fundamental Analysis, February 09, 2011




The major publications are expected today from the American macroeconomic sphere. The relative calm on the macroeconomic front is expected to continue until Thursday, when new unemployment data will be published. Jeffrey M. Lacker, the head of the Richmond Fed, has stated yesterday that the Fed should consider cancelling its 600-billion dollar quantitative easing program due to stronger-than-expected economic growth and improvements in the labor markets. Lacker expects growth of about 4% during 2011. According to him, this level of growth may increase the absorption of new workers and thus reduce the rate of unemployment.

As we said, the Chinese central bank announced yesterday that it would raise the interest rate in China in another attempt to rein in inflation, which stayed over 4% for the last three months running. This is the third interest rate hike since October and the second one in less than two months.

In Europe, the trade at the leading stock exchanges locked yesterday at index rises lead by the automotive industry, this after Toyota raised its revenue prediction for this year, and BMW reported a sharp increase in sales. By the end of the trading day, the London stock exchange climbed by 0.7%, the Frankfurt stock exchange climbed by 0.5%, while the Paris stock exchange climbed by 0.4%.

As trade closed at the New York Commodities Exchange, oil locked at a 0.6% decline to a level of 86.94 United States dollars for one barrel of oil, while gold locked at a 1.2% rise to a level of 1364 United States dollars for one ounce.


Performed by Gerardo Porras Palomino, Analytical expert
InstaForex Companies Group © 2007-2011


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USD/CHF wave analysis for February 9, 2011








As expected, the USD/CHF currency pair formed inner wave structure of the estimated 2nd wave (or b) and continued upside movement in favour of the dollar. At the same time the growth is either limited by the c wave of the abc correction structure, or by the 3rd wave of a more prolonged uptrend. In any case, the potential of the currency pair for continuation of the growth does not look exhausted.

Performed by Alexander Dneprovskiy, Analytical expert
InstaForex Companies Group © 2007-2011



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AUD/USD Weekly Review (fractal-analysis) ,February 09, 2011 (weekly Strategy)









AUDUSD

In my weekly analysis on the AUD / USD, we believe that the pair has found a strong barrier to overcoming the price of 1.0200 again been set back in monthly resistance around 1.0186 and then back to 80 pips.

from my point of view, if the pair tried again de1.0180 back to level, and fail in its attempt to drill, would be an opportunity to enter into short selling, with a target around the second monthly support is the level of 0.9580.







Performed by Gerardo Porras Palomino, Analytical expert
InstaForex Companies Group © 2007-2011


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NZD/USD Downward Movement ,February 09, 2011 (Daily Strategy)







NZD/USD


A look on graph (daily) of the New Zealand dollar – United States dollar pair shows that the technical image on the pair is very negative, showing an attractive sell opportunity. It appears that the last upward movement has reached its end after being braked by the 0.7824 resistance monthly level. Is expected to lead the price on the pair back down towards the low range of the shuffle in which it has been placed since the beginning of the year.

Now, the pair's downwards potential is stronger than ever, we predict a downwards movement towards the first, support monthly level around 0.7570 United States dollars for one New Zealand dollar.







Performed by Gerardo Porras Palomino, Analytical expert
InstaForex Companies Group © 2007-2011


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EUR/USD wave analysis for February 9, 2011







During yesterday’s trading the EUR/USD currency pair continued to form a quite complex inner wave structure of the estimated b wave of the whole current downside movement, developed since the previous Wednesday from the 1.3865 level. At the same time we cannot exclude the option that Monday’s low 1.3510 is a completion of the prolonged 3rd wave of such downside movement, and an upside correction takes place within its 4th wave. In the nearest future we will find out, if it is right or not. However, in any case, current mini-downtrend does not look exhausted yes.

Performed by Alexander Dneprovskiy, Analytical expert
InstaForex Companies Group © 2007-2011


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GBP/USD wave analysis for February 10, 2011 The GBP/USD pair has been trading in the range of a sloping correction structure and has formed a series of waves abc. At the same time, if the price of the currency pair manages to mark current triangular correction, the pound will have an opportunity to continue the uptrend and test again the before reached high near the 1.6275 level. Performed by Alexander Dneprovskiy, Analytical expert InstaForex Companies Group © 2007-2011 More analysis - at instaforex.com ================================================== =================================== ================================================== =================================== The EUR/USD technical analysis and trading recommendations for February 10, 2011 4-hour timeframe Overview: The euro did not strengthen the downside signal, as a result it cancelled and a new buy signal with target level 1.3960 has formed. The formed buy signal is confirmed, but weak since the Chinkou Span fixated above the price graph and the price entered the Ichimoku cloud and is still located near it. Thus, at the moment it is recommended to wait until the price passes the Ichimoku cloud, in this case the first target for the upside movement is 1.3981 – the second resistance level. If this level is passed the next target will be the third resistance level at 1.4101. Upside movement remains while the price is above the Kijun-sen (1.3630), if the price fixates below this line it is recommended to cut long positions. The Chinkou Span is above the price graph, which confirms the current buy signal and indicates bullish sentiment. The Bollinger bands show possible sideways movement, the lines are not diverging and directed sideways, which denotes a flat. The MACD is ascending, which indicates current upside movement, if it reverses down, this will indicate the beginning of correction movement. Trading recommendations: Currently it is recommended to wait until the price passes the Ichimoku cloud and trade up with the target to 1.3981. Stop loss should be placed below 1.3630. Long positions should be cut manually if the MACD reverses down. In addition to technical image, one should take into account the fundamental data and the time of their release. The chart annotation: Ichimoku indicator: Tenkan-sen — red line Kijun-Sen — blue line Senkou Span A — light brown stipple line Senkou Span B — light purple stipple line Chinkou Span — green line Bollinger Bands indicator: 3 yellow lines MACD indicator: The red line and the histogram with white bars in the indicators window. Performed by Stanislav Polyanskiy, Analytical expert InstaForex Companies Group © 2007-2011 More analysis - at instaforex.com ================================================== =================================== ================================================== =================================== EUR/USD wave analysis for February 10, 2011 Yesterday the EUR/USD pair continued to form an upside correction in relation to the downward section formed in the period between February 2nd and 7th; as a result the price managed to test the 1.3740 level. At the same time, inner wave structure of this correction became quite complex, which indicates indirectly a possibility of the euro to start trading in a horizontal corridor with amplitude of the rate change equal to 3-4 figures. Performed by Alexander Dneprovskiy, Analytical expert InstaForex Companies Group © 2007-2011 More analysis - at instaforex.com

EUR/USD wave analysis for February 11, 2011







Yesterday’s decline of the EUR/USD price by 1.5 figures did not define the future of the trend. At the same time, general wave situation after testing of the 1.3865 continues to gain characteristics of a horizontal triangle of the forming correction structure. If so, at the moment the euro is in the range of the wave of such triangle.

Performed by Alexander Dneprovskiy, Analytical expert
InstaForex Companies Group © 2007-2011


More analysis - at instaforex.com



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The EUR/USD technical analysis and trading recommendations for February 11, 2011


4-hour timeframe




Overview:
The euro did not strengthen the downside signal and it is about to be cancelled, the price fixated below the Kijun-sen, which weakened the current buy signal even more, therefore a new sell signal is expected to be formed in the nearest time. The formed buy signal is confirmed, but weak since the Chinkou Span fixated above the price graph and the price is below the Ichimoku cloud. Thus, at the moment it is recommended to wait until the current signal strengthens or a new one is formed, in the first case the first target for the upside movement is 1.3981 – the second resistance level. If a new sell signal is formed the target will be the first support level at 1.3463. Upside movement remains while the price is above the Kijun-sen (1.3630), if the price fixates below this line (which has happened) it is recommended to cut long positions. The Chinkou Span is above the price graph, which confirms the current buy signal and indicates bullish sentiment. The Bollinger bands show sideways movement, the lines are not diverging and directed sideways, which denotes a flat. The MACD is ascending, which indicates current downside movement.





Trading recommendations:
Currently it is recommended to wait until the current signal strengthens or a new one is formed. A new sell signal is more likely to be formed. In this case the targets will be the closest support levels..



In addition to technical image, one should take into account the fundamental data and the time of their release.

The chart annotation:
Ichimoku indicator:
Tenkan-sen — red line
Kijun-Sen — blue line
Senkou Span A — light brown stipple line
Senkou Span B — light purple stipple line
Chinkou Span — green line
Bollinger Bands indicator:
3 yellow lines
MACD indicator:
The red line and the histogram with white bars in the indicators window.




Performed by Stanislav Polyanskiy, Analytical expert
InstaForex Companies Group © 2007-2011


More analysis - at instaforex.com







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CHF/JPY awaiting the break at 85.30. February 11, 2011






CHF/JPY

The CHF / JPY has started moving over a month and a half ago in a 300-point range and 85 Between 88 Above below. In fact the strong support level has held 85.30 on Twice in a row,
Since Currently the pair is poised very near the support level, is important to prepare for the scenario Where the pair Breached the support level at 85.30 and sell trigger. Enter into a sales position with a goal set in the third weekly support. around 83.03.On Its Way Down the pair is Expected to Confront STI 200-day moving average around 83.50, Which May slow down it's downwards Movement

Performed by Gerardo Porras Palomino, Analytical expert
InstaForex Companies Group © 2007-2011


More analysis - at instaforex.com

GBP/USD. Weekly and Monthly Pivot Points, For February 14 to February 18, 2011




_____WEEKLY____
Weekly - R3 = 1.6361
Weekly - R2 = 1.6273
Weekly - R1 = 1.6139
Weekly Pivot = 1.6051
Weekly - S1 = 1.5917
Weekly - S2 = 1.5829
Weekly - S3 = 1.5695






_____MONTHLY______
Monthly - R3 = 1.6899
Monthly - R2 = 1.6477
Monthly - R1 = 1.6247
Monthly Pivot = 1.5825
Monthly - S1 = 1.5595
Monthly - S2 = 1.5173
Monthly - S3 = 1.4943





Performed by Gerardo Porras Palomino, Analytical expert
InstaForex Companies Group © 2007-2011


More analysis - at instaforex.com



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EUR/USD Around the Monthly Pivot , February 14, 2011 (Daily Strategy)








EUR/USD

The Euro / Dollar pair, is sitting in front of the 1st weekly support at 1.3449 and 1.3439 Pivot monthly, we can say that if

the pair continued their downward trend, closing the trading day below these levels may continue to drop the 1.3350 and

1.3200, on the other hand, we note that the pair has touched
200-day moving average. Therefore, we will be in expectation.

Performed by Gerardo Porras Palomino, Analytical expert
InstaForex Companies Group © 2007-2011



More analysis - at instaforex.com







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The EUR/USD technical analysis and trading recommendations for February 14, 2011




4-hour timeframe




Overview:
The euro has formed a new sell signal, upside movement did not develop, so at the moment downside movement is preferable. The

formed sell signal is strong and confirmed, since the Chinkou Span fixated below the price graph and the price is below the

Ichimoku cloud. Thus, at the moment the first target for the downside movement is 1.3449 – the first support level. If this

level is passed the second target will be the second support level at 1.3349. Downside movement remains while the price is

below the Kijun-sen (1.3620), if the price fixates above this line it is recommended to cut short positions. The Chinkou Span

is below the price graph, which confirms the current sell signal and indicates bearish sentiment. The Bollinger bands show

the beginning of the downside movement, the lines are diverging and directed down. The MACD is ascending, which indicates

current correction movement, thus it is recommended to resume trading down after it reverses down.







Trading recommendations:
Currently it is recommended to trade down with target at 1.3449 and further to 1.3349. Stop Loss should be placed above

1.3620. Enter the market with short positions after the MACD reverses down.

In addition to technical image, one should take into account the fundamental data and the time of their release.

The chart annotation:
Ichimoku indicator:
Tenkan-sen — red line
Kijun-Sen — blue line
Senkou Span A — light brown stipple line
Senkou Span B — light purple stipple line
Chinkou Span — green line
Bollinger Bands indicator:
3 yellow lines
MACD indicator:
The red line and the histogram with white bars in the indicators window.



Performed by Stanislav Polyanskiy, Analytical expert
InstaForex Companies Group © 2007-2011


More analysis - at instaforex.com



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USD/JPY wave analysis for February 14, 2011







During Friday trading the USD/JPY reached the 83.58 target level, corresponding with the 1.618 Fibo, between the 1st b (3rd

or c) and the 3rd b (3rd or c). Given this, we might suppose certain decline of the price in the range of the 4th wave in

this 3rd, before resumption of the growth in the direction of its target level located near the 84 figure level. At the same

time, overbought indicators probably imply a quite continuous forthcoming correction.

Performed by Alexander Dneprovskiy, Analytical expert
InstaForex Companies Group © 2007-2011

More analysis - at instaforex.com



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EUR/USD wave analysis for February 14, 2011







On Friday the EUR/USD currency pair continued forming another round of declining of the euro. As a result of such downside

movement the pair reached the correction level 38.2%, calculated in accordance with the whole uptrend between January 10 and

February 2. At the same time the price has formed another series of waves abc, thus allowing a possibility that current

correction might take longer than expected and in the future have a shape of an inclined triangular structure.

Performed by Alexander Dneprovskiy, Analytical expert
InstaForex Companies Group © 2007-2011


More analysis - at instaforex.com

Fundamental Analysis, February 15, 2011



According to the bank's announcement, the Japanese economy is gradually leaving its state of economic slowdown. The bank left the interest rate at its zero level, and intends to continue with its five-trillion asset purchase.

In China, the consumer price index rose by 4.9% in January as compared to the same months in 2010. The index growth was slower than predicted by analysts, and it arrived after a 4.6% growth in December.

The monthly Wall Street Journal economists' poll states that the U.S. Economy is expected to grow this year at the fastest rate since 2003 due to increased business and consumer expenditures. The 51 economists that participated in the polling estimated, on average, that the U.S. GDP will be larger in the fourth quarter of 2011 than it was at the same time last year.

In the macroeconomic sphere, later on we expect the publishing of retail sales data for January, which is expected to point to a 0.5% growth. In parallel, the Empire state index for the manufacturing sector in the New York area is expected to show a 15-point reading for February as compared to last month's 12-point reading. Furthermore, we expect the publishing of import and export data, the international market budget of the Treasury, the stock report and the housing market index which will provide another indication of the state of the American real estate market.

Performed by Gerardo Porras Palomino, Analytical expert
InstaForex Companies Group © 2007-2011

More analysis - at instaforex.com



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USD/CHF wave analysis for February 15, 2011







In general, as expected, the USD/CHF currency pair has been declining within the range of the correction structure, formed in relation with the whole dimension of the 3rd wave in the 3rd (3rd or C). At the same time the estimated correction level 38.2% (0.9690) was passed. However, there is a possibility that the wave structure of the 4th wave in this 3rd will become more complex and the price will decline to the next correction level 50.0% located near the 0.9663 level.

Performed by Alexander Dneprovskiy, Analytical expert
InstaForex Companies Group © 2007-2011


More analysis - at instaforex.com







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EUR/JPY Bearish Outlook , February 15, 2011 (Daily Strategy)






EUR/JPY



The strong resistance level at 114.00 forms the last line of defense that the pair may yet reach in a light momentum movement. Only a breach of the 114.00 resistance level will cancel the bearish prediction on the pair.

That said, a basis for a sell position depends of a break in the trend line formed from the January 10.The downwards movement is expected to carry the pair down to the lower support level of 110.30.



Performed by Gerardo Porras Palomino, Analytical expert
InstaForex Companies Group © 2007-2011


More analysis - at instaforex.com

NZD/USD Rebound , February 16, 2011 (Daily Strategy)







NZD/USD

A look on graph (daily) of the New Zealand dollar – United States dollar pair shows that

the technical image on the pair is consolidating, showing an attractive buy opportunity.
The downward pressure has remained in the 1st weekly support, at 0.7513 from here,
We mention that, the pair will go to touch his pivot Monthly during these days around

0.7680,United States dollars for one New Zealand dollar.



Performed by Gerardo Porras Palomino, Analytical expert
InstaForex Companies Group © 2007-2011


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instaforex.com



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(#ZSK1) Futures Soybeans,Downward Pressure , February 16, 2011 (Daily Strategy)








Soybeans

The price of soy beans has been at an especially sharp upwards trend for over eight months

running, without even the slightest technical correction. The price movements of the last

three months created the classic ceiling reversal pattern, which broke downwards, giving

the first signal of a possible reversal in soy bean prices.

The downward movement is expected to move at least to the first meaningful support level

around 1299 US dollars, and perhaps even down to the lower level around 1130, should the

negative momentum move into high gear.


Performed by Gerardo Porras Palomino, Analytical expert
InstaForex Companies Group © 2007-2011



More analysis - at

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EUR/USD wave analysis for February 16, 2011








The EUR/USD currency pair has made an attempt to complete formation of inner wave structure

of the estimated wave, developing in the range of the current downside correction. At the

same time, there is no certainty that the price will be able to form a reverse since there

is a possibility of this wave getting more complex and continuing in the direction of the

correction level 50.0% located near the 1.3370 level.

Performed by Alexander Dneprovskiy, Analytical expert
InstaForex Companies Group © 2007-2011


More analysis - at

instaforex.com

Fundamental Analysis, February 17, 2011

According to protocol of the Fedral Bank’s (FOMC) last meeting held last month and published yesterday, the Federal Reserve has revised its growth forecast for the US economy's performance this year, its leaders expressing confidence that the great economic recovery in the world is accelerating. The bank raised the forecast for economic growth in 2011 to a level of 3.4% – 3.9% of the US Gross Domestic Product (GDP).

On the American macroeconomic front, the United States Department of Commerce reported last night that the amount of new construction projects rose in January 14.6% to an annual rate of 596 thousand houses, the highest rate in 20 months, whereas economists predicted a more moderate growth to an annual rate of 539 thousand new construction projects.

The United States Department of Commerce further reported that the US Producer Price Index (PPI) rose in January 0.8%, a seventh monthly rise in a row, following the rise in energy prices. Economists had forecasted a 0.9% rise. The core index, which excludes energy prices, had risen 0.5% – the sharpest rise since October 2008, higher than the economist’s forecasts of a 0.3% rise.

Also in the macroeconomic sphere, US industrial production declined in January by 0.1% following a 1.2% rise in December. The analysts forecasted a 0.5% rise in production following a rise of 0.8% which was originally reported in December. Production capacity use declined last month to 76.1% compared with December's 76.2%, and is still lower than the average level of 80% over the past 20 years.

Performed by Gerardo Porras Palomino, Analytical expert
InstaForex Companies Group © 2007-2011

More analysis - at instaforex.com






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CAD/JPY Technical Correction , February 17, 2011 (Daily Strategy)





CAD/JPY

The rate rises in the world stock exchanges support the price of the Canadian dollar - Japanese Yen pair, which has been in an upwards trend for a month and a half. A downwards breach lower border will signal the beginning of the movemet southwards and serve as a trigger for a short entry with a drop potential down to the previous low support level of 82.50. On the way down one must be careful of the nearer 83.70 support level, which may serve as a key point for a partial realization of the position.



Performed by Gerardo Porras Palomino, Analytical expert
InstaForex Companies Group © 2007-2011


More analysis - at instaforex.com

Fundamental Analysis, February 18, 2011




The Asian stock markets have recorded an index rise after Taiwan has reported faster

economic growth than expected, at a level of 6.9% for the fourth quarter of 2010. As such,

the Tokyo stock exchange reports a 0.03% rise, the Seoul stock exchange rises by 1.6%, the

Hong Kong stock exchange climbs by 1.0% and the Taiwan stock exchange soars by 1.9%.

The macroeconomic front in the United States provided mixed data yesterday, with the

Philadelphia Federal Reserve reporting an increase in manufacturing activity in the

Philadelphia area to 35.9 points, its highest level since January 2004, where economists

had expected merely a light increase of the index to a level of 21 points.

The United States Department of Labor also published the weekly unemployment data

yesterday. The amount of new unemployment claims increased last week by 25 thousands to a

total of 410 thousand, above analysts' prediction of 400 thousands. Furthermore, the

Department also adjusted last week's data to 385 thousand as compared to the original

report of 383 thousand it had reported originally, which was the lowest number of weekly

new unemployment claims reported in over two years.

Furthermore in the macroeconomic field, it has been reported yesterday that the CPI in

America has risen in January by 0.4% - a second monthly rise in a row, while economists had

predicted a more moderate 0.3% climb. As compared to January 2010, the Index has completed

a 1.6% climb. The core index, which excludes the prices of fuel and food, considered too

volatile rises by 0.2% - the sharpest increase since October 2009.

Commodity prices had also risen yesterday on the background of pro-democracy protests in

the Middle East. Gold futures in April had locked at 1,385 United States dollars for one

ounce of gold - the highest close in five weeks - at the New York Commodities Exchange.

Crude oil futures for March at the New York Commodities Exchange had locked at a rate of

86.36 United States dollars for one barrel of oil, after having risen 1.6%.


Performed by Gerardo Porras Palomino, Analytical expert
InstaForex Companies Group © 2007-2011


More analysis - at

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CHF/JPY Bearish Outlook , February 18, 2011 (Daily Strategy)








Swiss Franc - Japanese Yen

The CHF/JPY pair has been trading in a shuffle for over two weeks in a relatively narrow

range between the levels of 88.00 from above and 85.00 from below. Right now, after the

pair has reached the shuffle pattern's upper range once more and has formed another double

top pattern, an attractive opportunity has been formed for entry into a sell deal in the

attempt to catch a new wave of downwards movements that is expected to lead the Swiss Franc

- Japanese Yen pair back to the lower range of the shuffle pattern. with one goal in 85.20







Performed by Gerardo Porras Palomino, Analytical expert
InstaForex Companies Group © 2007-2011



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EUR/USD wave analysis for February 18, 2011








Yesterday the EUR/USD currency pair was trading near the 36 figure, continuing to form an

inner wave structure of the estimated upside correction. At the same time, given the

correlation between its waves a and c we can suppose that targets for such growth might be

located in the range between 1.3610 and 1.650, and further to 1.3700.

Performed by Alexander Dneprovskiy, Analytical expert
InstaForex Companies Group © 2007-2011


More analysis - at

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GBP/USD wave analysis for February 18, 2011







In spite of the recent dynamic decline of the price, yesterday the GBP/USD currency pair

did not manage to develop a downside movement and by the end of the day reached Wednesday’s

highs near the 1.3180 level. At the same time, the pound has another opportunity to

overcome the February 3 high 1.6275 and form a quite complicated wave structure of the 4th

wave of the whole uptrend initiated December 28.

Performed by Alexander Dneprovskiy, Analytical expert
InstaForex Companies Group © 2007-2011

More analysis - at

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The EUR/USD technical analysis and trading recommendations for February 18, 2011


4-hour timeframe




Overview:
The euro price could not overcome the first support level 1.3449 and started a correction

that transformed into forming of a new buy signal with target level 1.3764. The formed sell

signal is weak and confirmed, since the Chinkou Span fixated above the price graph and the

price is below the Ichimoku cloud. Thus, at the moment the first target for the upside

movement is 1.3843 – the second resistance level, but it is recommended to trade up only

after the buy signal strengthens and proves, which implies the price fixating above the

Ichimoku cloud. If this level is passed the second target will be the third resistance

level at 1.3943. Upside movement remains while the price is above the Kijun-sen (1.3530),

if the price fixates below this line it is recommended to cut long positions. The Chinkou

Span is above the price graph, which confirms the current buy signal and indicates bullish

sentiment. The Bollinger bands show the beginning of the upside movement, the lines are

diverging and directed up. The MACD is ascending, which indicates current upside movement,

if the indicator reverses down it will denote the beginning of a correction.



Trading recommendations:
Currently it is recommended to wait until the buy signal strengthens and proves and trade

up with target at 1.3843 and further to 1.3530. Stop Loss should be placed above 1.3620. If

the MACD reverses down it is recommended to cut long positions.

In addition to technical image, one should take into account the fundamental data and the

time of their release.

The chart annotation:
Ichimoku indicator:
Tenkan-sen — red line
Kijun-Sen — blue line
Senkou Span A — light brown stipple line
Senkou Span B — light purple stipple line
Chinkou Span — green line
Bollinger Bands indicator:
3 yellow lines
MACD indicator:
The red line and the histogram with white bars in the indicators window.




Performed by Stanislav Polyanskiy, Analytical expert
InstaForex Companies Group © 2007-2011


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