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Friday, 22 May 2015

Technical analysis of USD/CAD for May 22, 2015 Market Analysis Review

General overview for 22/05/2015 07:10 CET

The corrective cycle is developing as anticipated at the beginning of the week, but the overall bias is still bullish as there are unfinished impulsive waves to the upside. Please notice that the main count indicates a possible triangle pattern in wave 4 blue that looks completed. That would mean any breakout higher above the green trendline will be considered as a bullish impulsive continuation to the upside with new highs in view. On the other hand, any breakout below the intraday support at the level of 1.2167 will favor alternate count that is now a part of uncompleted irregular flat corrective cycle. The target for that corrective pattern lies at the level of 1.2127.

Support/Resistance:

1.2066 - Invalidation Level

1.2127 - WR1

1.2167 - Intraday Support

1.2256 - Intraday Resistance

Trading recommendations:

As long as the level of 1.2167 is providing the support, daytraders should, consider opening buy orders from the current levels with SL just below the level of 1.2166 and TP at the level of 1.2235, with a possible extension higher up to the level of 1.2256 and beyond.

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For detail explanation and best discovery on daily market trends and news you may visit via Technical analysis of USD/CAD for May 22, 2015 . Thanks for your support.

Daily analysis of major pairs for May 22, 2015 Market Analysis Review

EUR/USD: Since the bias on this pair has turned bearish, the price has been caught in an equilibrium phase. It would be assumed that a break below the support line at 1.1000 would further strengthen the existing bearish bias; whereas a break above the resistance line at 1.1250 would put bulls in a defensive position.

USD/CHF: Since a sell signal was formed on this currency trading instrument, the price has been moving sideways. There could be a significant breakout either to the upside or to the downside soon. A breakout to the upside is more likely.

GBP/USD: The сable has shot skywards again, settling just above the accumulation territory at 1.5650. This bullish price action has saved the recent bullish bias from being rendered invalid by bears. A movement above the distribution territory at 1.5750 would really emphasize the strength of bulls.

USD/JPY: There is still a valid Bullish Confirmation Pattern seen on the USD/JPY chart. The price is above the EMA 56 and the RSI period 14 is above the level of 50. The next target for bulls is located at the supply level of 121.50, and along the way, bearish corrections would be shallow and transient.

EUR/JPY: This cross is also caught in an equilibrium phase, which would inevitable be followed by a breakout. Again, the fate of the euro would determine whether the expected breakout would be to the upside or to the downside. The current bias is bearish.

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For detail explanation and best discovery on daily market trends and news you may visit via Daily analysis of major pairs for May 22, 2015 . Thanks for your support.

Technical analysis of USD/CAD for May 22, 2015 Market Analysis Review

UNEMPLOYMENT INSURANCE WEEKLY CLAIMS: In the week ended on May 16, the advance figure for seasonally adjusted initial claims was 274,000, 10,000 up from the previous week's unrevised level of 264,000.

US Manufacturing PMI eases to a 16-month low in May. US manufacturing output growth weakened for the second month in May. It was the slowest since January 2014. The seasonally adjusted Markit Flash US Manufacturing Purchasing Managers' Index fell from 54.1 in April reflecting the weakest improvement in overall business conditions since the start of 2014.

USD/CAD

The pair probably made a double top at 1.2256 and changed the direction. The pair has been consolidating at 100Dema for 2 days. The parallel support is found at 1.2169. The selling will emerge below 1.2169 towards 1.2130 and 1.2090. Bulls' real problem is likely to ignite below 1.2080 towards the previous low. Today, we expect 1.2130 and 1.2100. CAD is trading higher against USD ahead of Canada Core CPI m/m, CPI, and Core retail sales m/m. We expect the Canadian economy to continue following the positive trend. Strong resistance zone is seen at 1.2350. A daily close above 1.2350 leads to a fresh new high. On the downside, the pair formed a minor base between 1.1940 and 1.1900 and strong support is found at 1.1885 and 1.1795. On a weekly basis, the pair managed to gain 200 pips. After 5 consecutive weeks of losses, bulls managed to cover some loses this week. Our buy-on-dip bullish view is likely to remain in play with sl 1.2090. For today's trade, bears should sell below 1.2160 with targets at 1.2130 and 1.2100 following the trend. On the higher side, we recommend buying above 1.2200 with targets at 1.2240/50 initially, and 1.2300 and 1.2325 later. The pair gave an upside break from the month old descending trendline. The real strength for bulls is seen above 1.2310, trend-changing level is at 1.2350.

Elliott wave analysis of EUR/NZD for May 22 - 2015 Market Analysis Review

Technical summary:

Wave ii of c became much stronger than we had expected and pierced the 61.8% corrective target at 1.5272 with a high at 1.5288. However, the rally in wave ii was followed by a break below a low of wave i at 1.5076 confirming wave iii lower to 1.4941 and later the ideal downside target at 1.4725.

In the short term, we are looking for resistance near 1.5134 for the next part of a decline towards 1.4941 on the way lower to the ideal downside target at 1.4725 to end wave c of the expanding flat correction.

Trading recommendation:

Our stop is at 1.5255 and we will stand aside for now.

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For detail explanation and best discovery on daily market trends and news you may visit via Elliott wave analysis of EUR/NZD for May 22 - 2015 . Thanks for your support.

#USDX technical analysis for May 22, 2015 Market Analysis Review

The US dollar index is pulling back down towards the short-term support of the 38% retracement. The USD index is making a corrective pullback against the new uptrend that started at 93.10. I expect the uptrend to resume after this pullback is completed around 94.80. New highs above 95.85 will confirm the end of the correction and the start of a new upward move.

The US dollar index has broken above the Ichimoku cloud resistance and made an impulsive upward move to 95.85 from 93.10. The index is now making a pullback and I expect the 38% retracement to hold this decline and become the level where a reversal to the upside starts. If the 38% retracement is broken, the next support will be the 61.8% retracement.

Despite the pullback, the weekly chart shows important signs of a possible reversal as the price is above the kijun-sen. The weekly pullback almost reached the 38% retracement so the bullish scenario of a new upward move is very possible. As long as the price is above 93.10, I expect at least one more higher high above 95.85. Breaking below 93.10 will be a bearish signal that will bring the index at least towards 92.30.

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For detail explanation and best discovery on daily market trends and news you may visit via #USDX technical analysis for May 22, 2015 . Thanks for your support.

Gold technical analysis for May 22, 2015 Market Analysis Review

Gold price has held above the short-term support of $1,200 and is now bouncing above $1,210. The short-term resistance at $1,217-20 will be decisive. However, the weekly chart remains to be trapped between the kijun- and tenknan-sen indicators while the Ichimoku cloud remains above the current price.

Gold price is trying to break above the cloud resistance and above the yellow line kijun-sen indicator. The bounce from the lower cloud boundary confirms the short-term reversal. This increases chances of an upward move towards $1,250.

Weekly chart remains bearish as the price remains below the cloud resistance and below the kijun-sen indicator. Gold price is trapped between the kijun-sen and the tenkan-sen. The price bounced strongly after reaching the tenkan-sen support level so now we look forward to see whether the important resistance at $1,230 finally breaks for a move towards $1,250.

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

For detail explanation and best discovery on daily market trends and news you may visit via Gold technical analysis for May 22, 2015 . Thanks for your support.

Elliott wave analysis of EUR/JPY for May 24 - 2015 Market Analysis Review

Technical summary:

Wave b (ii) ended yesterday with the test of 135.35 and now we should see wave c of (ii) moving lower towards the target zone of 132.79 - 133.08 before a new impulsive rally above 136.96 should be considered.

In the short term, we will see a break below support at 134.20 as a confirmation that wave b is over and wave c lower has taken over. As long as support at 134.20 protects the downside, another zig-zag combination higher to 135.80 is an option that can not be excluded. A break above minor resistance at 134.83 will raise odds for another zig-zag combination unfolding in wave b.

Trading recommendation:

Our stop at 134.88 was hit for a nice little profit. We will only EUR sell again if another zig-zag combination is unfolding. Otherwise, we will stay neutral.