Daily Analysis on Eur/usd Gbp/usd and majors

[bhanu545]

Since July 12, GBP/USD pair demonstrated an uptrend movement within the depicted channel until last week when the pair managed to break down the lower limit of the channel around 1.5690 and the significant support level around 1.5660 reaching the next support level around 1.5580 which was expected to hold the pair above for some period. However, the bearish movement extended down to 1.5485.
Now we have many expected technical patterns being formed on the chart, a Head & Shoulders reversal pattern and Price Triangle being broken to the downside and the backside of the broken channel which will constitute a sold resistance for GBP/USD pair.
The current prices are expected to push higher towards our expected SELL zone around 1.5660 - 1.5690.
Price zone 1.5660 - 1.5690 is suggested as a SELL zone with TP levels located at 1.5600, 1.5555 then the final target level at 1.5440.
A break through above 1.5700 invalidates the bearish scenario mentioned above.

Performed by Mohamed Samy, Analytical expert
InstaForex Companies Group © 2007-2012

[bhanu545]

The EUR / USD continued severely beaten, as markets reacted to the news that several Spanish territories need rescue in the near future. In the end, Europe's problems are still far beyond the scope of the solutions that have been suggested.
We noticed that a support level of 1.2070 is the fact that it is a pause for sales. The indicators are showing oversold levels. The trend indicator is setting the level of 2.0923 level of an imminent rebound in the next few hours.
We expect a rebound. This simply gives us the opportunity to sell the euro from higher prices. The area of 1.2320 has to be a strong resistance results, therefore, recommend selling it at that price levels. But a break above 1.2330 would increase the chance of going up to the 1.2440 resistance level weekly. That will give us the opportunity to sell at good prices, with targets to 1.2150 or to the weekly pivot.

Performed by Gerardo Porras, Analytical expert
InstaForex Companies Group © 2007-2012

[bhanu545]

The GBP / USD pair has been trading in a range of about 380 pips since the beginning of July and now seems to test the lower end of this range again at 1.5456 (Daily Fractal).
The level of 1.5515 is a very strong resistance, only a break and close above this level can lead to the next resistance of 1.5624
Furthermore, according to the weekly pivot, we have a very strong support 1.5400 demonstrating an imminent rebound, so we recommend buying at 1.5400, but 1.54 breaks below our stop loss, it is placed at 1.5350.
So if you looking to go short or long with the GBP / USD, often taking profits at key levels and get used to operating on channels, as this is a strong feature in this pair, at least from the perspective of the daily chart. The MACD indicator is showing an upward sequence.

Performed by Gerardo Porras, Analytical expert
InstaForex Companies Group © 2007-2012

[bhanu545]

The euro fell yesterday to its two year minimum and is now trading around 1.2161 at this time. Having covered the gap that I left it at 1.2145, this move can consider that the pair could continue to rise significantly until the resistance of 1.2410 but it will face 1.2280 resistance next.
Therefore, we have two strategies: Pivot and fractals, both showing very good odds.
According to the weekly pivot, we have a support at 1.2104; the pair may go back to this level and then resume the upward force. We, therefore, recommend buy at 1.2104 with targets at 1.2245 and 1.2410 as the final objective.
According to the fractals we can buy candles in closures of 4 hours, above 1.2145 with targets at 1.2410 next fractal, ultimate goal.
Within both strategies it is possible to place a stop loss at 1.2025.
The trend indicator, this is an oversold area and showing a correction to the higher levels.

Performed by Gerardo Porras, Analytical expert
InstaForex Companies Group © 2007-2012

[bhanu545]

The British pound was also favored with the announcement from the European Central Bank president, quickly surpassing the level of 1.5520. This level was forcing down the pair, the break led it to the current level of 1.5693 which the pair is testing now. We expect growth to the resistance 1.5732 weekly, it is likely that at this level the pair will find a strong resistance and therefore recommend selling at 1.5732 with targets at 1.5630 and 1.5530.
The MACD indicator is showing a possible reversal of the pair.

Performed by Gerardo Porras, Analytical expert
InstaForex Companies Group © 2007-2012

[bhanu545]

This morning the euro had a break from the sharp downward trend that was pressing. At this moment it is trading at 1.2295 due to the announcement from the European Central Bank President Mario Draghi. He announced that the presiding entity is ready to take whatever steps are necessary to preserve the euro.
This message appears to Draghi as a reversal of the ECB, which under pressure from the IMF and the United States should take concrete measures to prevent further euro devaluation.
According to the 4 hour chart we notice that the EUR / USD has formed a trend reversal pattern at least in the long term, we hope to reach the levels of 1.27 1.29 1.33 before the pair should get out of this downward pressure, as there are strong levels of resistance.
We, therefore, recommend buying weekly pivot at 1.2220 with targets at 1.2320 and 1.2410.
The range indicator is showing that more remains up.

Performed by Gerardo Porras, Analytical expert
InstaForex Companies Group © 2007-2012

[bhanu545]

On May 15, the GBP/USD pair managed to break down the lower limit of the bullish BLUE channel depicted on the chart. Since then, the pair has been moving within the triangle pattern after having a quick bearish swing between 1.6300 and 1.5260.
Yesterday, the GBP/USD pair found significant support at the lower limit of the triangle pattern around 1.5460 which pushed the pair to the upside for about 260 pips in one day.
Price level 1.5460 not only corresponds to the lower limit of the triangle but also to the backside of the broken downtrend line depicted on the chart as well.
The GBP/USD pair has a strong long-term Resistance zone between 1.5773-1.5840 where daily price action should be watched for valid long-term positions to be taken.
The current price level of 1.5730 corresponding to the upper limit of the symmetrical triangle should constitute an intraday Resistance for the pair even on the short-term. However, breakthrough above it opens the way towards the stronger resistance zone 1.5773-1.5840.
For risky traders, an intraday SELL position can be taken at 1.5730 with SL as 4H closure above 1.5780 with TP at 1.5700, 1.5666 then 1.5630.

Performed by Mohamed Samy, Analytical expert
InstaForex Companies Group © 2007-2012

[bhanu545]

The spot rate is currently testing the upper limit of its medium term bearish channel at 1.2330 and seems to initiate a decline. However, a break through these levels will release good potential and initiate a violent bullish trend.
Technical indicators provide buy signals but are approaching overbuy zone supporting the assumption of a decline. Bollinger bands are much discarded as a result of a strong increase these days. Stabilization is expected in a short term.
According to the previous events, the market will provide a bullish opportunity as soon as the spot rate has broken through its resistance of 1.2330 with the 1st objective at 1.2390 and then at 1.2420. A break through 1.2310 will invalidate this scenario.

Performed by Albert Fitoussi, Analytical expert
InstaForex Companies Group © 2007-2012

[bhanu545]

The Pivot Point (PPV) is used as support and resistance at the same time; it is the first level that we observe. For this week the pivot points (weekly and monthly) for EUR/USD are: 1.2251 weekly; 1.2564 monthly.
The euro is located near the weekly pivot point and bellow the Moving Average of 200 periods.
Accordingly, the pivot points signify the following:
A daily close above the pivot point of 1.2245 can increase the probability of a rise to 1.2455 weekly resistance. On the other hand, a close below the weekly pivot point will give rise to new low price of par, which could carry until 1.2140; it is possible that at that level the pair may find a strong rebound, so we recommend buying on weekly support 1.2145 or above the weekly pivot point, with targets medium term until 1.2445.

____WEEKLY_____
Weekly - R3 = 1.2803
Weekly - R2 = 1.2596
Weekly - R1 = 1.2458
Weekly Pivot = 1.2251
Weekly - S1 = 1.2113
Weekly - S2 = 1.1906
Weekly - S3 = 1.1768

Performed by Gerardo Porras, Analytical expert
InstaForex Companies Group © 2007-2012

[bhanu545]

The Pivot Point (PPV) is used as support and resistance at the same time; it is the first level that we observe. For this week the pivot points (weekly and monthly) for GBP/USD are: 1.5658 weekly; 1.5582 monthly.
The British pound is located above the pivot weekly and above the Moving Average of 200 periods (blue).
Therefore, the pivot points indicate the following:
A daily close above the moving average of 200 periods could be a buy signal. On the other hand, a rebound of the weekly pivot 1.5645 will give the opportunity to buy again for the objectives of the resistance nearest 1.5857. But if the pair breaks the weekly pivot zone 1.5645, it could start a fall of the pair to 1.5547 weekly support. That will give us the opportunity to buy the pair at very low prices in the medium term objectives until 1.5968.

____WEEKLY_____
Weekly - R3 = 1.6167
Weekly - R2 = 1.5968
Weekly - R1 = 1.5857
Weekly Pivot = 1.5658
Weekly - S1 = 1.5547
Weekly - S2 = 1.5348
Weekly - S3 = 1.5237

Performed by Gerardo Porras, Analytical expert
InstaForex Companies Group © 2007-2012

[bhanu545]

Last week the British pound recovered from the losses surpassing the 200 period moving average. After reaching a minimum of six months on June 1 this year at 1.5267, the pair has struggled to gain any real momentum backed by the bulls. Now the currency pair faces the challenge of resistance once again in the 1.5784 area, making the fourth attempt from the minimum of 6 months.
If the pair can break the resistance at 1.5784 and 1.5841 in particular, there will be a technical gap of about 200 pips above waiting to be filled by the price action. On the way there will be resistance 1.5905 and 1.5958 additional, but the sum of all factors creates a strong argument for higher prices to come, despite the additional resistance.
On the way down the pair will also meet a full support. Weekly pivot point is placed at 1.5649; monthly pivot is 1.5581 and 1.5532 S1 weekly.
Therefore, we recommend buying 1.5546 with targets towards the nearest resistance of 1.5760.

Performed by Gerardo Porras, Analytical expert
InstaForex Companies Group © 2007-2012

[bhanu545]

The spot rate is approaching the upper limit of its medium term bearish channel at 1.2360 and seems to initiate a decline. However, a break through these levels will release good potential and initiate a violent bullish trend.
Technical indicators provide buy signals but until the resistance is not broken, the assumption of a decline is most likely. Bollinger bands are much discarded as a result of a strong increase these days. Stabilization is expected in a short term.
According to previous events, the market will provide a bullish opportunity as soon as the spot rate has broken through its resistance of 1.2360 with the 1st objective at 1.2420 and then at 1.2440. A breakthrough 1.2340 will invalidate this scenario.

Performed by Albert Fitoussi, Analytical expert
InstaForex Companies Group © 2007-2012

[bhanu545]

The EUR / USD has a resistance at 1.2330, break of which would increase the odds that the pair can quickly rise up the weekly resistance of 1.2450. In this regard, the market is waiting for the decisions that will be published tomorrow, and are likely to oscillate in a range from 1.2330 and 1.2280. A return to the fractal of 1.2250 will probably rebound from there, given that we noticed a bullish reversal pattern. In the long-term the objective is the level of 1.27.
Therefore, we recommend buying only if the pair closes above 1.2345 with target at 1.2450.

Performed by Gerardo Porras, Analytical expert
InstaForex Companies Group © 2007-2012

[bhanu545]

The spot rate is approaching the upper limit of its medium term bearish channel at 1.5720 and seems to initiate a decline. However, a break through these levels will release good potential and initiate a violent bullish trend.

Technical indicators do not provide clears signals but until the resistance is not broken, the assumption of a decline is most likely. Bollinger bands are much discarded as a result of a strong decline these days. Stabilization is expected in a short term.

According to previous events, the market will provide a bullish opportunity as soon as the spot rate has broken through its resistance of 1.5720 with the 1st objective at 1.5780 and then at 1.5800. A breakthrough 1.5700 will invalidate this scenario.

Performed by Albert Fitoussi, Analytical expert
InstaForex Companies Group © 2007-2012

[bhanu545]

The spot rate is currently testing the lower limit of its medium term bullish channel at 1.5510 and seems to initiate a rebound. However, a breakthrough these levels will release good potential and initiate a violent bearish trend.
Technical indicators provide buy signals and evolve in oversell zone supporting the assumption of a rebound. Bollinger bands are much discarded as a result of a strong decline these days. Stabilization is expected in a short term.
According to previous events, the market will provide a bullish opportunity at the level of 1.5510 with the 1st objective at 1.5570 and then at 1.5590. A breakthrough 1.5490 will alter this scenario.

Performed by Albert Fitoussi, Analytical expert
InstaForex Companies Group © 2007-2012

[bhanu545]

This morning before the press conference with the President of the European Central Bank Mario Draghi, the euro reacted very volatile, rising rapidly to 1.2385 then quickly changed its tendency, and at this point the currency is quoted below weekly pivot 1.2150
In view that the euro has only reacted to a fundamental fact, we must wait until the midday ET to define the trend. Therefore, in the course of return to the weekly pivot, we recommend sell objectives at 1.2110. On the other hand, if the price closes in 4 hours charts above the pivot at 1.2150 recommend buying with targets 1.2410.

Performed by Gerardo Porras, Analytical expert
InstaForex Companies Group © 2007-2012

[bhanu545]

The British pound is within the range of 1.5770 to 1.54 consolidation. The fact that initially fired up to 1.57 and then ended at 1.55 does not bode well for this market in the future.
Whether it is likely to continue this movement a little longer or not, will be confined within this range.
Therefore, given that now trades below 1.5550 weekly support (W_S1) is likely to close in 4 hours charts above this level. If the pair manages to hold above 1.5551, we recommend buying with objectives in the short term at 1.5730. Our stop loss is placed below the minimum of yesterday.

Performed by Gerardo Porras, Analytical expert
InstaForex Companies Group © 2007-2012

[bhanu545]

Yesterday the euro dropped again reaching 1.2138 amid Mario Draghi’s announcements supported by several European leaders. However, the ECB President did not meet investors’ expectations. His announcements were just empty declarations without any steps to be taken which proved again that nobody knows how to cope with the crisis.
On a technical level, the euro is trading below 1.2250 weekly pivot, offsetting yesterday’s losses. Only a close above 1.2250 will indicate the beginning of a new upward trend with the target of 1.2410 which is likely to be unchanged during the next week as well. We, therefore, recommend buying above 1.2250.
The indicators are showing an imminent upward bounce.

Performed by Gerardo Porras, Analytical expert
InstaForex Companies Group © 2007-2012

[bhanu545]

The spot rate has bounced off the lower limit of its medium term bearish channel at 1.5490 and is testing now the upper limit of this one at 1.5660. A breakthrough this level will release a good potential and initiate a violent bullish trend.
Technical indicators do not provide clears signals but are approach overbuy zone supporting the assumption of a decline. Moreover, this resistance represents a rebound of 62% of the decline which was registered between July 27th and August 02th.
A decline is expected in the short term but most probable and less risky scenario is a break of this resistance. Taking this into account, we recommend making a "buy stop" and buy when the spot rate will break its resistance at 1.5660 with a target of 1.5720.

Performed by Albert Fitoussi, Analytical expert
InstaForex Companies Group © 2007-2012

[bhanu545]

EUR/USD Elliott Wave
Since our last analysis the EUR/USD pair was trading in an upward move as we expected, developing impulsive (3) (coloured green). During the Friday's European session we could observe an ascending movement towards the 1.2290 level (daily high). Therefore, during the New York session the EUR/USD pair continued trading in a bullish mood and price hit a new 4-week high around 1.2390 level. Today during the early Asian session this major pair found resistance at 1.2442 and the price is currently trading around 1.2350 level. In accordance with our wave rules and taking into account that the wave 3 retraces 161.8% of the wave 1, we can define the potential targets with Fibonacci extensions (1.2041-1.2390-1.2132) with Take Profit 1 at 1.2480 (100% of wave 1) and Take Profit 2 at 1.2695 (161.8% of wave 1). To reduce the risk, we can use support point at 1.2350 as Stop Loss. Also it is necessary to monitor the EU Sentix Investor Confidence and U.S. Fed Chairman Bernanke Speaks data that can change the rate of the pair.
Support and Resistance
(S3) 1.2088 (S2) 1.2175 (S1) 1.2228 (PP) 1.2314 (R1) 1.2401 (R2) 1.2454 (R3) 1.2540
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is likely to begin the upward movement. For this reason long positions at level 1.2400 with Stop Loss 1.2350 Take Profit 1 1.2480 and Take Profit 2 at 1.2695 are recommended.

Performed by Nicola Delic, Analytical expert
InstaForex Companies Group © 2007-2012