Intraday technical levels and trading recommendations on GBP/USD for May 7, 2014 Trend News

Previously, around the price zone of 1.6780-1.6800, a Double Top pattern scenario was established during February and March. However, the recent lows at 1.6465 and 1.6555 (corresponding to the depicted uptrend line) prevented further bearish decline and provided enough buying pressure to keep pushing higher.

The daily chart shows two successive bullish breakouts expressed above 1.6850 ( upper limit of a previous congestion zone ) then above 1.6930 ( upper limit of the ongoing bullish channel ). The bullish momentum should be apparent now to allow the bullish breakout to pursue towards further targets. Otherwise, breakout failure will probably occur.

The nearest demand zone to meet the pair is located at 1.6775-1.6820. Bulls should be defending this price zone in order to pursue projection targets of the breakout.

As long as the ascending bottoms established at the uptrend around 1.6675, 1.6775 and 1.6825 remain intact, the market will keep its bullish momentum.

The pair has been trending up within the depicted bullish channel for a couple of weeks now. Last week, a bearish impulse was initiated off 1.6910 that led again towards the previous consolidation zone at the price level of 1.6820.

The bearish momentum was contained above 1.6820 (the lower limit of the bullish channel and upper limit of a previous consolidation zone).

The bulls managed to record a higher high above the recent one at 1.6900. However, this may have exhausted the bullish momentum of the market.

Bearish fixation below 1.6840 is necessary to restore the bearish tendency of the market. Otherwise, sideway consolidation will be expected to take place for sometime.

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Daily analysis of USDX for May 07, 2014 Trend News

Daily chart: The USDX continues to weaken and strengthen the current bearish bias since the USDX is conducting a breakout at the support level of 79.19. If successful, it is expected to fall to the level of 78.12. Now, we recommend caution when placing sell orders, because the USDX could perform a bullish rebound at the support level. The MACD indicator is in negative territory.

H4 chart: The USDX is consolidating below the resistance level of 79.27. If the USDX does make a breakout at the support level of 79.07, it's expected to fall to the bearish trend line at the 77.50 level in the long term, although the USDX could be forming bearish patterns on the way. The MACD indicator is in negative territory.

H1 chart: The USDX has made a successful breakout level at 79.39 and now the USDX is forming a higher low pattern. If the USDX does make a breakout at the support level of 79.13, it's expected to fall to the level of 78.92. On the other hand, if the USDX makes a bullish rebound at the current levels, it is expected to rise to the level of 79.39. The MACD indicator is in positive territory.

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 79.13, take profit is at 78.92, and stop loss is at 79.34.

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Daily analysis of GBP/USD for May 07, 2014 Trend News

Daily chart: This pair is approaching the resistance level of 1.7000, so this week, it is likely that the GBP/USD starts to make corrective movements for a breakout at that level. If successful, it is expected to rise to the resistance level of 1.7169 in the medium term. For now, caution is recommended when placing sell orders. The MACD indicator is in positive territory.

H4 chart: The GBP/USD has consolidated above the 1.6900 level and the closest to the current resistance level is at the bullish trend line. If the pair manages to consolidate above the 1.7085 level, it's expected to rise to the level of 1.7175. Furthermore, the GBP/USD could perform a bearish rebound to fall to the support level of 1.6900. The MACD indicator is in positive territory.

H1 chart: This pair is forming a bullish pattern above the support level of 1.6950 and within the vicinity of the point of control. If GBP/USD manages to make a breakout on the resistance level of 1.7000, it's expected to rise to the level of 1.7050. Moreover, if this pair is able to consolidate support below the level of 1.6950, it is expected to fall to the level of 1.6900. The MACD indicator is in negative territory.

Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the GBP/USD pair breaks a bullish candlestick; the resistance level is at 1.7000, take profit is at 1.7050, and stop loss is at 1.6950.

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Intraday technical levels and trading recommendations on EUR/USD for May 7, 2014 Trend News

In March, the failure of the bulls to fix above 1.3880 applied enough bearish pressure in the form of a bearish channel towards the recent demand zone around 1.3700.

At retesting of 1.3700, significant bullish pressure was applied pausing the recent slide off 1.3965 which led to another ascending impulse towards 1.3880.

On April 11, a bearish Doji candlestick was expressed around 1.6880, followed by a bearish engulfing daily candlesticks aiming to apply bearish pressure on the price level of 1.3800 which has been offering support especially on Monday when the depicted long-tailed hammer daily candlestick was expressed.

On the other hand, a price level of 1.3800 has been providing bullish support so far. Wednesday and Friday's daily candlesticks are bullish engulfing daily candlesticks that originated off this level.

At the same time, several bullish attempts (including Tuesday's bullish spike) took place to step above 1.3850-1.3880. However, immediate bearish reaction is usually applied due to lack of bullish follow-up.

Yesterday, we had a bullish breakout above 1.3880 which topped at 1.3950 ( Notice the most recent top established around 1.3965 ).

Careful price action should be watched to assess the next destination of the pair.

Since the EUR/USD pair broke below 1.3855, the pair has roughly been moving within a bearish channel until the depicted uptrend line came to meet the pair roughly at 1.3700-1.3680 enhancing this price zone as significant intraday demand. This led to the recent bullish impulse above 1.3810 and 1.3880.

Finally, the last bottom established around 1.3810 could achieve higher high above 1.3880. The bulls topped at 1.3950. However, these levels correspond to the upper limit of the ongoing bullish channel.

This may lead to a corrective movement towards 1.3880 before further bullish spikes can take place.

For the bulls, price level of 1.3880 remains the nearest DEMAND level for them. It should be watched for a possible BUY position at retesting.

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EUR/AUD intraday technical levels and trading recommendations for May 7, 2014 Trend News

On March 24, by breaking down 1.5175, the Double Top pattern could not only achieve its projection target at 1.4820-1.4800, but it also confirmed a bigger Head and Shoulders pattern.

The bears managed to break down 1.4950 corresponding to 50% Fibonacci level last week (the nearest support level). This exposed the price level of 1.4750 (61.8% Fibonacci).

As expected, the bears failed to fixate below 1.4750 on a daily basis. This hindered further bearish progression giving some time for a sideway consolidation for retesting of 1.4945 (50% Fibonacci).

After a few days of indecision around 1.4750, the bulls initiated a bullish spike off 1.4725 and finally they were able to push above the upper limit of the 4H congestion zone.

Two bullish spikes above 1.4950 (50% Fibonacci level on the daily chart) were executed. However, the bulls fail to pursue the bullish breakout leading to its failure.

On the other hand, the lower limit of the depicted triangle located around 1.4850 prevented a further bearish decline, providing a considerable support for the pair.

As suggested in previous articles, the 4H chart shows an expanding triangle pattern being established at the current key levels. This is a bearish signal and an indicator for an upcoming bearish pressure which has been applied since then.

Overall, the daily chart suggests bearish tendency especially if the daily candlesticks maintain closures below 1.4940. This will open the way down to 1.4810 and 1.4750.

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USD/CAD intraday technical levels and trading recommendations for May 7, 2014 Trend News

The chart shows that the USD/CAD bulls failed to show enough momentum above 1.1200 during the last visit on March 20. The bears took an advantage and pushed the pair towards the price zone of 1.0910-1.0850 (50-61.8% Fibonacci levels on the daily chart).

Temporary daily closure below 1.0920 took place. However, it didn't take long time to get a bullish engulfing daily candlestick as a bullish reaction on the next day pushed the pair again towards 1.1000.

On the other hand, on the 4H chart, the price zone of 1.0995-1.1045 (38.2% Fibonacci of the most recent bearish swing) was expected to provide a valid sell entry and it did.

The previously suggested bearish position taken at 1.0995 is now running in profits. Stop loss should be lowered to 1.0920 to secure some profits.

Other bearish positions can be taken at price zone of 1.0940-1.0950. It's the most recent resistance zone that comes to meet the pair. Bearish targets are to be located at 1.0865 initially.

On the other hand, Price zone of 1.0875-1.0830 ( extending down to 61.8% Fibonacci Level ) which is being challenged today by the bears, should be watched for a possible bullish price action for an early bullish signal to exit our current SELL entry.

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Fundamental analysis of EUR/USD for May 07, 2014 Trend News

Key economic data-

EUR- Germany factory orders, French industrial production.

USD- Federal Chairwoman Yellen Testifies.

Forecast-

EUR- Traders will eye today's important key industrial production data for German and France. We expect the German industrial production to increase slightly in March to 0.3% MoM. The French industrial production should remain stable in March.

USD- Yellen’s appearance before the Joint Economic Committee will be the highlight of the post jobs report slate of economic data. She’ll also go before the Senate Budget Committee on Thursday. The market participants actively discuss when the Fed will start lifting interest rates, and how high the rates will go once it starts happening.

Technical view-

The pair has been trading in an up move from 1.3774 levels. The 50SMA level in the daily chart has been supporting the pair to move to higher levels. Whenever the pair comes to 1.39-1.3950 levels, it will face selling pressure. In yesterday's trading session the pair truncated the lower highs pattern, witnessing some more upside leg possibility. But in the daily chart, the Stochastics is giving a sell signal, expecting the pair to pause its uptrend, and it will correct up to 1.3865 and 1.3850 levels. On the upside, until the pair trades above 1.40 levels, we are recommending the sell on rise strategy.

In Asia's trading session, the pair is trading at 1.3934 levels. In the H4 chart, the pair has strong support in 1.3925-1.3920. The pair is trading in a range bound between 1.3920-1.3935 levels. The pair will become weak if it breaks the 1.3920 levels, until the pair holds this level, it can make another high at 1.3965, 1.40 and 1.4011 levels. On the down side, if the pair breaks the 1.3920 level, the immediate support comes between 1.3906-1.3890 levels. The major weakness comes below 1.3890, up to 1.3873, 1.386 and 1.3824 levels.

We expect the pair will face selling pressure at any time. Safe traders can wait for a dip. Risky traders can enter shorts on every rise.

Recommendations- cmp 1.3934.

Buy above 1.3935 with targets 1.3950, 1.3965 and 1.40.

Sell below 1.3920 for targets 1.39, 1.3890, 1.3873, 1.386 and 1.3824.

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Technical analysis of gold for May 07, 2014 Trend News

Today the metal traders eye Yellen’s appearance before the Joint Economic Committee. She’ll also speak before the Senate Budget Committee on Thursday. The market participants talk about when the Fed will start lifting interest rates, and how high the rates will go once it starts happening.

Technical view-

The metal is trading in a range bound between $1,316-$1,305 levels. It is facing strong resistance at $1,316 (50daily SMA). Safe traders can buy above $1,316 for targets $1,319, $1,322 and $1,330. On the down side the key level is located at $1,305, below this only the metal looks bearish up to $1,300, $1,295. On the weekly chart, the metal is facing strong resistance at the 38.2 fib level. Once the metal breaks this, huge buying will add to the metal aiming at $1,330.

For intraday the metal has strong support at $1,302 levels, a break below this $1,297.50 is a strong support level. The hourly momentum indicators show a mixed bag. RSI is giving a sell signal and Stochastics is giving an up move indication. On the upside, the metal will face resistance at $1,313.70 and $1,316 levels.

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Technical analysis of USD/JPY for May 7, 2014 Trend News

In Asia, Japan will release the Monetary Policy Meeting Minutes, and the US will release some economic data such as Crude Oil Inventories, 10-y Bond Auction, Consumer Credit m/m, and Fed Chair Yellen Testifies. So there is a big probability the USD/JPY will move with low volatility during the Asian session, but with low to medium volatility during the US session.

TODAY's TECHNICAL LEVELS:

Resistance. 3: 102.11.

Resistance. 2: 101.91.

Resistance. 1: 101.71.

Support. 1: 101.47.

Support. 2: 101.27.

Support. 3: 101.06.

DESCRIPTION:

Please, pay attention to the levels of support 3 (101.06) and resistance 3 (102.11). Normally, when a level is touched, USD/JPY will rebound from the previous minimum by 10 to 20 pips, but if the levels are broken through by over 50 pips, then it will be a sign that these currencies have found trends today.

Best regards,

Official Analyst of InstaForex Group InstaForex Group http://instaforex.com For more analysis go to: blog.mt5.com/arief My Profile: http://www.mt5.com/forex_analysis_award/profile/index/arief 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 EUR/USD for May 7, 2014 Trend News

When the European market opens, some economic statistics will be released such as German Factory Orders m/m, French Industrial Production m/m, French Trade Balance, Retail PMI. The US will release the economic data too such as the Crude Oil Inventories, 10-y Bond Auction, Consumer Credit m/m, and Fed Chair Yellen Testifies, so amid the reports, EUR/USD will move with low to medium volatility during this day.

TODAY's TECHNICAL LEVELS:

Breakout BUY Level: 1.3995.

Strong Resistance:1.3986.

Original Resistance: 1.3973.

Inner Sell Area: 1.3960.

Target Inner Area: 1.3927.

Inner Buy Area: 1.3894.

Original Support: 1.3881.

Strong Support: 1.3868.

Breakout SELL Level: 1.3859.

DESCRIPTION:

Today EUR/USD has support and resistance at 1.3881 and 1.3973. The rate is accompanied by strong support at 1.3868 and by 1.3986 as strong resistance.

If EUR/USD breaks out and closes below the 1.3859 level today, then it will indicate considerable bearish strength. Meanwhile, if EUR/USD manages to break out and closes above the 1.3995 level, then it will denote high bullish strength. Alternatively, for advance traders, you can trade in a way to open a BUY position at the level of 1.3894 and at 1.3960, a SELL position. In this case both targets should be placed at the level of 1.3927.

Best regards,

Arief Makmur

Official Analyst of InstaForex Group InstaForex Group http://instaforex.com For more analysis go to: blog.mt5.com/arief My Profile: http://www.mt5.com/forex_analysis_award/profile/index/arief

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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Daily analysis of major pairs for May 7, 2014 Trend News

EUR/USD: This is a bull market, for there is a Bullish Confirmation Pattern in the chart. The market rose up above the support line at 1.3900 and tested the resistance line at 1.3950. The resistance line may be tested again and possibly be breached to the upside. Therefore, the ultimate target for this week is at the resistance line at 1.4000.

USD/CHF: This is a bear market, since there is a Bearish Confirmation Pattern in the chart. The market went down below the resistance level at 0.8750, trying to go towards the support level at 0.8700. There is a rally at the present, but it is shallow and it may not go beyond the aforementioned resistance level or the level at 0.8800 (in a worse-case scenario).

GBP/USD: The Cable moved up significantly yesterday, in accordance with the dominant bias. The distribution territory at 1.700 would soon be tested and may be breached to the upside. There are accumulation territories at 1.6950 and 1.6900. They ought to do a good job by checking an ensuing bearish pulls.

USD/JPY: It is not a surprise that this currency trading instrument has formed a bearish signal, trading below the supply level at 102.00 and going towards the demand level at 101.50. The demand level could be violated, and then beached to the downside. The next target could be the demand level at 101.00.

EUR/JPY: It would be better to remain neutral here until there is a determined movement in the market. The market is flat and there is a need for it to break the supply zone at 142.00 to the upside or the demand zone at 141.50 to the downside.

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Technical analysis of GBP/USD for May 07, 2014 Trend News

GBP/USD

Traders eye on Thursday the BoE announcement of its key rate. The BoE is expected to leave its monetary policy unchanged in May at 0.5%.

SERVICES PMI- review

April saw another marked increase in the UK services sector activity, with growth again supported by a sharp increase in volumes of incoming new work. Companies kept on top of workloads by adding to their payroll numbers, reflecting sustained confidence in the economic outlook.

After accounting seasonal factors, the headline Business Activity Index recorded 58.7 in April. That was up from March’s 57.6 and marked the sharpest increase in activity of 2014 so far. Growth has now been recorded for 16 straight months.

Technical view-

The pair has been in an uptrend from 1.6465 levels, currently it is extending its bullish leg up to 1.70 and 1.7036 levels. The RSI in the daily chart indicates the pair will start its downward journey at any time. It's not safe to enter longs at the cmp. Traders can enter shorts at the cmp or at higher levels at 1.7036 for targets at 1.6823, 1.6763 and 1.67 (50SMA) levels. On the down side, the pair has strong support at 1.6823 levels, the major bearish view will rise only below this level.

In Asia's trading session, the pair is trading at 1.6972. In the H4 chart, the hourly momentum indicators are giving a clear sell call for 1.6945, 1.6921, 1.6907, 1.6880, 1.6853 and 1.6823 levels. The bear grip will tighten only below 1.6823 for 1.6760 levels.

We expect the selling will take place in the evening session. From the cmp the pair will move a bit higher and start falling from there (1.70-1.7036) cmp 1.6974 levels.

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Technical analysis of USD/JPY for May 06, 2014 Trend News

Overview:

USD/JPY is expected to trade in a lower range. The liquidity was thin in Asia as financial markets in Japan, Hong Kong, and South Korea were shut Tuesday for public holidays. USD/JPY is underpinned by the yen-funded carry trades on positive investor risk appetite (S&P 500 closed 0.19% higher overnight at 1,884.66) as stronger-than-expected rise in U.S. ISM non-manufacturing PMI to 55.2 in April from 53.1 in March (versus 54.1 forecast); outweighed disappointing China's factory data (final April HSBC China manufacturing PMI came in at 48.1 versus preliminary reading of 48.3), and violence in Ukraine. USD/JPY is also supported by the final Markit U.S. April services PMI coming in at 55.0 versus flash estimate of 54.2, rise in U.S. Conference Board employment trends index to 118 in April from upwardly revised 117.77 in March (first reported as 117.52), and higher U.S. Treasury yields and sell-yen orders from Japan's importers. But USD/JPY gains are tempered by the buy-yen orders from Japan's exporters.

Technical сomment:
Daily chart is mixed as MACD and stochastics is in bearish mode, but five-day moving average is meandering sideways.

Trading recommendation:
The pair is trading below its pivot point. It is likely to trade in a lower range as far as it remains below its pivot point. Short position is recommended with the first target at 101.45. A breach of this target will move the pair further downwards to 101.30. The pivot point stands at 101.95. In case the price moves in the opposite direction and bounces back from support level, and then it moves above its pivot point, it is likely to move further to the upside. In that scenario, a long position is recommended with the first target at 102.20 and the second target at 102.50.

Resistance levels:

102.20

102.50

102.80

Support levels:

101.45

101.30

101.10

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Technical analysis of USD/CHF for May 06, 2014 Trend News

Overview:

USD/CHF is expected to consolidate in higher range after hitting three-week low at 0.8760 on Monday. It is supported by the dovish Swiss National Bank's monetary policy stance and franc sales on rebounding EUR/CHF cross. But USD/CHF gains are tempered by the franc demand on buoyant CHF/JPY cross. Daily chart is still negative-biased as MACD and stochastics are bearish, five-day moving average is below 15-day MA and it is declining.

Trading recommendation:
The pair is trading below its pivot point. It is likely to trade in a lower range as far as it remains below its pivot point. Short position is recommended with the first target at 0.8710. A breach of this target will move the pair further downwards to 0.8685. The pivot point stands at 0.8765. In case the price moves in the opposite direction and bounces back from support level, and then it moves above its pivot point, it is likely to move further to the upside. In that scenario, a long position is recommended with the first target at 0.8710 and the second target at 0.8685.

Resistance levels:

0.8780

0.8805

0.8845

Support levels:

0.8710

0.8685

0.8650

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Technical analysis of GBPJPY for May 06, 2014 Trend News

Overview:

GBP/JPY is expected to trade in higher range. It is supported by the improved risk appetite and buy-euro orders from Japan's importers. But GBP/JPY gains are tempered by the sell-euro orders from Japan's exporters. Daily chart is mixed as MACD is bullish, but stochastics is in bearish mode.

Trading recommendation:
The pair is trading above its pivot point. It is likely to trade in a higher range as far as it remains above its pivot point. As far as the price is above its pivot point, a long position is recommended with the first target at 173.15 and the second target at 173.50. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 171.75. A breach of this target will push the pair further downwards and one may expect the second target at 171.40. The pivot point is at 172.10.

Resistance levels:

173.15

173.50

173.75

Support levels:

171.75

171.40

171

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Technical analysis of NZD/USD for May 06, 2014 Trend News

Overview:

NZD/USD is expected to consolidate with bullish bias after hitting three-week high at 0.8686 on Monday. It is supported by kiwi demand on buoyant NZD/JPY cross amid reduced risk aversion, kiwi demand on soft AUD/NZD cross, and NZD-USD interest differential. But NZD/USD gains are tempered by the concerns over China's economy and soft commodity prices. Daily chart is positive biased as MACD and stochastics are bullish, five-day moving average is above 15-day MA and it is advancing.

Trading recommendation:
The pair is trading above its pivot point. It is likely to trade in a higher range as far as it remains above its pivot point. As far as the price is above its pivot point, a long position is recommended with the first target at 0.8780 and the second target at 0.8820. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.8685. A breach of this target will push the pair further downwards and one may expect the second target at 0.8660. The pivot point is at 0.8720.

Resistance levels:

0.8780

0.8820

0.8850

Support levels:

0.8685

0.8660

0.8640

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USD/CAD intraday technical levels and trading recommendations for May 6, 2014 Trend News

The depicted chart shows that the USD/CAD bulls failed to show enough momentum above 1.1200 during the last visit on March 20. The bears took an advantage and pushed the pair towards the price zone of 1.0910-1.0850 (50-61.8% Fibonacci levels on the daily chart).

The USD/CAD pair returned to test the previous support zone around 1.0900 (50% Fibonacci level) which previously provided a considerable support at retesting on February 19.

Temporary daily closure below 1.0920 took place. However, it didn't take long time to get a bullish engulfing daily candlestick as a bullish reaction on the next day pushed the pair again towards 1.1000.

On the other hand, on the 4H chart, the price zone of 1.0995-1.1045 (38.2% Fibonacci of the most recent bearish swing) was expected to provide a valid sell entry and it did.

The previously suggested bearish position taken at 1.0995 is now running in profits. Stop loss should be lowered to 1.0920 to secure some profits.

Other bearish positions can be taken at price zone of 1.0940-1.0950. It's the most recent resistance zone that comes to meet the pair. Bearish targets are to be located at 1.0865 initially.

The price level of 1.0960 remains the most prominent resistance level for the pair. Any breakout above 1.0960 will invalidate the bearish tendency for the pair temporarily.

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EUR/AUD intraday technical levels and trading recommendations for May 6, 2014 Trend News

On March 24, by breaking down 1.5175, the Double Top pattern could not only achieve its projection target at 1.4820-1.4800, but it also confirmed a bigger Head and Shoulders pattern.

The bears managed to break down 1.4950 corresponding to 50% Fibonacci level last week (the nearest support level). This exposed the price level of 1.4750 (61.8% Fibonacci).

As expected, trading above 1.4750 on a daily basis hindered further bearish progression giving some time for a sideway consolidation for retesting of 1.4945 (50% Fibonacci).

After a few days of indecision around 1.4750, the bulls initiated a bullish spike off 1.4725 and finally they were able to push above the upper limit of the 4H congestion zone.

Two bullish spikes above 1.4950 (50% Fibonacci level on the daily chart) were executed. However, the bulls fail to pursue the bullish breakout leading to its failure.

On the other hand, the lower limit of the depicted triangle located around 1.4850 prevented a further bearish decline, providing a considerable support for the pair.

As suggested in previous articles, the 4H chart shows an expanding triangle pattern being established at the current key levels. This is a bearish signal and an indicator for an upcoming bearish pressure which is being applied today.

Overall, the daily chart suggests bearish tendency especially if the current daily candlestick manages to close below 1.4940. This will open the way down to 1.4810 and 1.4750.

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EUR/NZD analysis for May 06, 2014 Trend News

Overview

Since our previous analysis, the EUR/NZD pair has been trading downwards, as we expected, the price tested the level of 1.5880 on volume below the average according to the daily chart. As we already wrote in the previous analysis, EUR/NZD is in short- and mid-term bearish trend, so watch for selling opportunities after retracement. According to the 1H timeframe chart, we can observe supply on volume above the averege, which is a sign that we may see more downward moves. Since the price has broken our support level of 1.5960, we may see testing the level of 1.5830-1.5765 (previous swing lows). Watch for selling opportunities after retracement.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1.6029

R2: 1.6046

R3: 1.6074

Support levels:

S1: 1.5974

S2 : 1.5957

S3: 1.5930

Trading recommendation: Be careful with buying the EUR/NZD and watch for selling opportunities after retracement.

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GOLD analysis for May 06, 2014 Trend News

Overview

Since our last analysis, gold has been trading sideways, around the price of 1,308.00, we are waiting for a larger movement and larger volume. As we already posted in the previous analysis, we got our major support level at the price of 1,277.00 and that level held successfully. As you can see in the graph, our major Fibonacci retracement 38.2% (1,315.55) is on the test, and if the price breaks the level of 1,315.00 on higher volume, we may see testing the levels of 1,330.00-1,344.00 (Fibonacci ratios) before any larger supply. According to the H1 timeframe, we can observe decreasing volume on upward leg, which is a sign that buying at this stage looks risky. Any larger supply and reaction from our resistance zone may confrim further bearish phase.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1,314.94

]R2: 1,318.56

R3: 1,324.40

Support levels:

S1: 1,303.26

S2: 1,299.64

S3: 1,293.80

Trading recommendation: Trading the metal, be careful with short-term buying at this stage since price is testing Fibonacci retracement. Watch for selling opportunities after retracement.

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Daily analysis of Silver for May 06, 2014 Trend News

Overview

Yesterday the metal failed to break the Support level of 19.50 to bounce again from it and to trade between this Support level and below the Resistance level of 19.75. Currently, the metal must re-test the Resistance level of 19.75 again, therefore we should wait for closing above to continue its upward trend move. Given that the metal has managed to close 4H above today, this gives us a good opportunity for more bullish signals above it with the first target few pips below the Resistance level of 20.20, then the second target at 20.50, after breaking this Support level. But as long as silver is trading below 19.75, waiting would be preferred in that case and cancels the bullish move scenario.

Resistance and support levels: R3 (20.50), R2 (20.20), R1 (19.75), S1 (19.50), S2 (19.20), S3(18.90).

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Daily analysis of GBP/JPY for May 06, 2014 Trend News

Overview

In the shown H4 chart, the pair failed more than once to break the Support level of 172.00 and it is still trading above it since yesterday. In the today's H4 chart the pair bounced from the Support area again and started to take a slightly upward move approaching the Resistance level of 172.80. Currently, it is preferred to wait till closing above this Resistance level before making the decision and in this case we will get more bullish signals with the first target few pips below the next Resistance level of 173.50 then 174.00 as the second target. But closing below the Resistance level of 172.80 cancels the bullish move scenario.

Resistance and support levels: R3 (174.00), R2 (173.50), R1 (172.80), S1 (172.00), S2 (171.50), S3 (171.00).

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Elliott wave analysis of EUR/NZD for May 6, 2014 Trend News

Today's Support and Resistance levels:

R3: 1.6018

R2: 1.5992

R1: 1.5975

Current spot: 1.5959

S1: 1.5920

S2: 1.5837

S3: 1.5766

Technical summary:

With the break below support at 1.5975, the battle between the bulls and the bears was decided and the bears won. We should now see support at 1.5975 to protect the upside for a continuation lower towards 1.5766 and lower towards 1.5653 as the most likely downside target. We could still see a move closer to 1.5566 if red wave v extends, but at this point it is less likely. Only a break above 1.6113 will indicate that a bottom is already in place.

Trading receommendation:

Stay short in EUR from 1.6195 and move your stop lower to 1.6050 and place take profit and revers of the position at 1.5785.

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Elliott wave analysis of EUR/JPY for May 6, 2014 Trend News

Today's Support and Resistance levels:

R3: 142.47

R2: 142.38

R1: 142.00

Current spot: 141.96

S1: 141.65

S2: 141.12

S3: 140.63

Technical summary:

We do expect imidiately downside pressure to emerge for a break below 141.65 and more importantly a break below 141.12 to confirm a continuation lower towards 140.08 as the next downside target. A break below 140.08 should accelerate the move lower towards 136.97. In the longer term we are still looking for a much deeper correction towards 126.00.

Trading recommendation:

Stay short in EUR from 141.68 with stop placed at 142.50. If you are not short in EUR yet, then sell after a break below 141.65 with the same stop at 142.50.

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Technical analysis of Gold for May 06, 2014 Trend News

Technical outlook and chart setups:

1. Gold is attempting to push further towards the $1,330.00 levels for now. A break would confirm that bulls are potentially taking prices through $1,350.00/60.00 levels in medium term. A failure would be encouraging to bears though. Recommendations are to remain flat Or Aggressively long from last week till $1,330.00 levels at least.

2. Support is seen at $1,280.00, followed by $1,270.00, $1,230.00/40.00 and lower while resistance is at $1,330.00, followed by $1,350.00/60.00, $1,388.00 and higher up respectively.

3. The structure indicates that Gold is targeting $1,330.00 levels for now before a meaningful retracement can take place. All intraday dips are potential buy after that. The metal could push through $1,350.00/60.00 as seen below.

Trading recommendations:

Remain flat for now OR aggressively long from last week till it reaches at least $1,330.00.

Good luck!

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Technical analysis of EUR/USD for May 6, 2014 Trend News

Overview:

• The EUR/USD pair has successfully tested the resistance area set by the recent high at 1.3920 today besides the intraday key resistance at 1.3960. Accordingly, EUR/USD is challenging the psychological resistance at 1.3960. Equally important, bears are asking for a high price at 1.3960 because buyers have not breached the resistance, suggesting a bearish possibility below this level. In consequence, it should become a bear investor who believes that the trend is going to fall because the market will be called for a bearish market (downtrend). In particular, the pair is now moving down from the double top and it is going to decrease by 65 pips that may look for a support around 1.3888, so it is very profitable to take profit at 1.3890 as an initial target today.

Notes :

• The resistance will set at the level of 1.3960 today.


• The double top is going to set at the 1.3920 price.


• The area of 1.3960 is useful spot to sell in the long term.


• We expect a range of 65 pips on May 6, 2014.

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Technical analysis of USD/CHF for May 6, 2014 Trend News

Overview :

• The USD/CHF pair is going to set strong resistance at the level of 0.8820 and support at 0.8710 today because the price is still moving between 0.8810 and 0.8735. So, we expect a range of 75 pips on May 6, 2014. Also, the USD/CHF pair has still been below 50% of Fibonacci retracement levels in H1 chart. As a result, the price has already formed the strong resistance at this level of 0.8820 and it is now approaching it in order to test it and the RSI is still calling for the bearish market.

• Consequently, the USD/CHF pair will be in a downside momentum rather convincing and the structure of the fall does not look corrective, for indicating the bearish opportunity below the 0.8820 level, for that it will a good sign to sell below this level with the first target of 0.8760 and it will call for downtrend in order to continue bearish towards 0.8710. Additionally, the price will try to test the double bottom at 0.8698. On the other hand, the stop loss should always be taken into account, thus it will of the wisdom to set your stop loss at the price of 0.8860.

Intraday technical levels :

Date: 6/05/2014

Pair: USD/CHF

• R3: 0.8895


• R2: 0.8867


• R1: 0.8822


• PP: 0.8794


• S1: 0.8749


• S2: 0.8721


• S3: 0.8676

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Technical analysis of Silver for May 06, 2014 Trend News

Technical outlook and chart setups:

1. Silver is attempting to rally again and take out immediate resistance at $19.90 levels before a meaningful retracement occurs. Please note that bulls remain in control for now but at least $19.90/$20.00 levels need to be taken out to confirm further upside. Recommendations are to remain flat OR aggressively long (positions taken earlier).

2. Support is seen at $18.90, followed by $18.75 and lower while resistance is seen at $19.90/$20.00, followed by $20.40/50, $21.70 $22.30 and higher up respectively.

3. The structure indicates that Silver could probably change the trend; but $19.90/ $20.00 resistance must break on the minimum side. The metal can be bought on dips thereafter.

Trading recommendations:

Remain flat OR aggressively long from last week (till $20.00).

Good luck!

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#USDX technical analysis for May 6, 2014 Trend News

The Dollar index is being put under heavy selling pressure. With its major component of EURUSD making new higher highs towards 1.40, the Dollar index is being sold heavily and is testing the 79.20 lows. Support is most probably going to break and we should expect the dollar index to move below 79 soon.

The trend remains downward. Price is below the short-term trend line and the Ichimoku cloud. Price has broken the recent low at 79.45 and is going to challenge 79.20-79. I feel that a low below 79 is very possible. The next big support level is at 78.

The daily chart remains in favor of the bears. Price is below the Ichimoku cloud and the trend line resistance. The double bottom at 79.30-79.20 is being broken and we should anticipate a move towards 78 at least. Things are not very good for bulls currently. A good sign will be if price reverses and breaks above 80. Until then, we remain bearish.

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Technical analysis of GBP/CHF for May 06, 2014 Trend News

Technical outlook and chart setups:

1. The GBP/CHF pair is stalling at sub 1.4850/60 levels and facing resistance. The pair is trading at 1.4800 levels for now and is expected to break down to at least 1.4680/1,700 levels if not further. Recommendations are to remain short, risk remains at 1.4950/60.

2. Support is at 1.4630/50, followed by 1.4550, 1.4450, 1.4350 and lower, while resistance is seen at 1.4950/60 and 1.5120 levels respectively.

3. The structure indicates that the GBP/CHF pair is heading towards at least 1.4700 levels to complete a 3 wave correction.

Trading recommendations:

Remain short for now, stop is at 1.4960, target is at least at 1.4690/1.4700

Good luck!

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Gold technical analysis for May 6, 2014 Trend News

Gold price has made a new short-term higher high yesterday above $1,315 and looks strong enough to move higher. Gold price mostly consolidated yesterday forming a bullish flag pattern. Price is above the short-term resistance levels and above the Ichimoku cloud in the 4hour chart.

Short-term trend is up. As long as gold price remains above $1,308, we should expect the pattern to make an upward break out towards $1,330. If support at $1,308 is broken, we should anticipate gold price to pull back towards the Ichimoku cloud at $1,295.

Gold price held above $1,275 on a daily close, and as we mentioned in previous posts, if this happened, we should expect Gold price to challenge $1,331 highs. In the chart above I show my most probable wave count. I believe we are inside wave C and we have lots of room for an upward move towards $1,350-60. As long as we do not see an intraday break of $1,268 or a daily close below $1,275, bulls should feel safe.

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