Thread: InstaForex Wave Analysis

Technical analysis of GBP/USD for June 02, 2015



The pound hit a fresh four-week low against USD after the US manufacturing data release. The US dollar dominated against major pairs at yesterday's session. The seasonally adjusted Markit/CIPS PMI ticked higher to 52.0 in May, up from a revised reading of 51.8 in April (previously reported as 51.9). The UK manufacturing sector showed further modest expansions of both output and new orders in May. Economic activity in the manufacturing sector expanded in May for the 29th consecutive month. The overall economy grew for the 72nd consecutive month. Upcoming event: Today, traders eye construction PMI. The UK construction sector has been struggling for a while, led by housing market. Technical analysis: The cable held the 20Wsma and was trading above. The weekly support was found at 1.5150 and 1.5089. At yesterday's session, the cable touched the 100Dsma and 50Dsma junction placed at 1.5165. We expect a technical bounce with a target at 1.5300 in a day or two, later 1.5525 in the extreme case. We advised to buy between 1.5150 and 1.5100 with sl 1.5089. The same theme we still recommend this week as well. In the H1 chart, lower lows and lower highs are expanding. The price has been consolidating at 1.5200 for 8-hours. As we explained earlier, technical bounce likely. For today's session risky buying is available with sl 1.5160 and targets at 1.5240, 1.5260, and 1.5300 CMP 1.5200. Safe buying will trigger above 1.5220. Intraday support is found at 1.5160 and 1.5130. Positional buying is advised with small quantity. Bulls are likely to regain strength above 1.5300 with targets at 1.5340, 1.5380, and 1.5420. In case dip takes place buyers available between 1.5130 and 1.5100.

More analysis - at instaforex.com

Daily analysis of USDX for June 03, 2015



The US Dollat Index is testing the support level of 95.74 now. If it does a breakout in that zone, the USDX will fall to the level of 94.66. Anyway, we think this corrective move is a short-term bearish bias, because the USDX aims at the upside and the immediate resistance is seen around the level of 96.97.

More analysis - at instaforex.com

Daily analysis of major pairs for June 4, 2015



EUR/USD: TThe EUR/USD pair has gone bullish as bulls continue to push the price further north. The resistance line at 1.1300 is the next target for bulls. If it gets breached to the upside, another resistance line at 1.1350 would be the next target. Certain fundamental figures are expected today and they would have an impact on the markets.

More analysis - at instaforex.com

Technical analysis of NZD/USD for June 5, 2015



Amid previous events, the NZD/USD pair is still moving between the level of 0.7079 and 0.7199. The level of 0.7079 represents a weekly double bottom in the H1 chart. It should be noted that the weekly double bottom coincides with the ratio of 00% Fibonacci retracement levels. Consequently, the new resistance has set at the level of 0.7153; for that sell below the level of 0.7153 in the long term with the first target at 0.7100. If the trend is able to break the first support at 0.7100, it might resume to 0.7079 in order to test the double bottom in the same time frame. On the other hand, the stop loss should never exceed your maximum exposure amounts. Thus, it will be rather profitable to set your stop loss at the level of 1.7205.

More analysis - at instaforex.com

GBP/USD intraday technical levels and trading recommendations



On March 2, a bearish breakdown of the lower limit of the previous daily channel occurred enhancing the bearish side of the market. Persistence below the zone between 1.4950 and1.5000 indicated a further bearish decline towards 1.4700. Shortly after, the bearish trend was resumed towards the level of 1.4550, where a lower daily bottom was established. Evident bullish recovery emerged at 1.4560 pushing the GBP/USD pair above the level of 1.4700, then successive higher highs were hit. As anticipated, the daily closure above 1.5060 exposed the next resistance levels at 1.5400 and 1.5450 where extensive bearish pressure was previously applied. This enhanced the bearish side of the market towards the levels of 1.5300, 1.5250, and 1.5100 where the most recent bullish swing was initiated on May 5. On the other hand, the price zone of 1.5750-1.5800 (critical resistance zone) offered valid sell entry almost three weeks ago. The final bearish target at 1.5450 was already reached. Moreover, a lower high at 1.5660 applied significant bearish pressure. That is why the support zone between 1.5500 and1.5450 failed to stop this bearish momentum leading to its breakdown. It should be acting as intraday resistance when further retesting takes place. The low-risk sell entry can be retested. The price levels of 1.5150 and 1.5100 are exposed to be reached now. However, Tuesday's daily candlestick came as a bullish engulfing one. This has paused the bearish momentum for a few days until now. Conservative traders can wait for a bearish pullback towards 1.5080-1.5100 for low-risk buy entries. SL should be set as daily closure below 1.5080.

More analysis - at instaforex.com

Elliott wave analysis of EUR/JPY for June 8 - 2015



Technical summary:
An expected correction in red wave ii/ is unfolding. We will be looking for a correction towards 138.03 as an ideal downside target before the next impulsive rally higher to 144.03 and higher towards 150.77. In the short term, only a break above minor resistance at 140.54 will indicate that the correction is already over. It is calling for the next impulsive rally upwards. We have to remember that corrections in the third wave tend to be small.


Trading recommendation:

We will buy EUR at 138.35 or upon a break above 140.54 with a stop placed at 136.25 expecting to be able to raise the stop quickly.

More analysis - at instaforex.com

Daily analysis of GBP/USD for June 09, 2015



A daily chart is still showing a lower low pattern formation, as the pair remains below the resistance level of 1.5346. Now, we are expecting a lower continuation, because that resistance is very strong and the bearish bias is likely to start dominating the trend in the GBP/USD pair again. The MACD indicator is entering oversold territory. At the H1 chart, the support zone of 1.5259 remains very solid, because the pair was rejected at that level. Now it's trying to break the resistance level of 1.5358. The next higher target is seen at 1.5428 level, which is above the 200 SMA. However, that moving average could act as dynamic resistance.
More analysis - at instaforex.com

Daily analysis of USDX for June 10, 2015



The USDX is currently trading above the support level of 94.66 and there is a strong fight between bears and bulls, because the Index could do a rebound at current levels. Thanks to a possible bullish momentum, which could give that support zone mentioned above. The MACD indicator is in the negative territory. There are no major changes in the short-term outlook for the USDX, but the Index is still moving above the support level of 95.15, a zone which rejected the US Dollar Index during yesterday's session. Currently, we should expect a rise towards the resistance level of 95.71 and a breakout could happen there in coming hours.

Daily chart's resistance levels: 95.74 / 96.97
Daily chart's support levels: 94.66 / 93.75
H1 chart's resistance levels: 95.71 / 96.16
H1 chart's support levels: 95.15 / 94.63


Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the US Dollar Index breaks with a bullish candlestick; the resistance level isseen at 95.71, take profit is at 96.16, and stop loss is at 96.32.

More analysis - at instaforex.com

Technical analysis of USD/JPY for June 11, 2015

In Asia, Japan will release the BSI Manufacturing Index. The US is ixpected to publish data on the 30-y Bond Auction, Natural Gas Storage, Business Inventories m/m, Import Prices m/m, Unemployment Claims, Retail Sales m/m, and Core Retail Sales m/m. So, there is a strong probability that USD/JPY will move with low to medium volatility during the day.

TODAY TECHNICAL LEVELS:

Resistance. 3: 123.66. Resistance. 2: 123.42. Resistance. 1: 123.18. Support. 1: 122.88. Support. 2: 122.64. Support. 3: 122.40.


More analysis - at instaforex.com

Elliott wave analysis of EUR/JPY for June 12 - 2015

Technical summary:
A correction in red wave ii/ is still unfolding and as long as minor resistance at 139.61 protects the upside. We will be looking for a final decline closer to 138.03 to end red wave ii/ and set the stage for a strong rally in red wave iii/ higher to 144.03 on the way towards 150.77. It will take an unexpected break below support at 135.10 to invalidate more upside pressure and indicate that the rally from 126.05 only was a correction, but this is clearly not the preferred count.


Trading recommendation:
We will buy EUR at 138.10 or upon a break above 139.61. The stop should be placed at 137.00

More analysis - at instaforex.com