Technical analysis of GBP/USD for May 25, 2015 Market Analysis Review

GBP/USD

The cable got away from a 6-week high of 1.5815.Last week, the pair opened at 1.5746 and lost 1.7% by the end of the week. We have been repeatedly advised to book profit or sell with sl 1.5835 from May 14. We forecasted that the pair would be capped between 1.5800 and 1.1835. The pair made a high at 1.5815 and changed its direction towards south. Economic data published last week supported the pound and the lowest CPI was the laggard. Traders were willing to buy the pound on dips. After the UK election, the EU referendum is seen to be the next major event. Mr. Cameron pointed an earlier date in May 2016 then expected 2017.

This week is a data-light week on the UK macro front. The major data fall on Thursday, that is the second reading of GDP q/q. The week started with a bank holiday in the UK and US. We expect soft movements during today's trade.

Weekly technical view: The pair showed a 2-week winning streak lost 1.7% in the previous week. At Friday's session, the cable managed to hold the 20Dsma found at 1.5455 and a low made at 1.5461. The parallel support is found at 1.5446 and 1.5393 that is previous week's low. Before starting the next leg up, we expect the cable to touch 1.5330 and 1.5300. In case bulls lose control at 1.5300, another leg down is expected towards 1.5220 where buying is available. The cable favors buying on dips with sl 1.5100. Bottom fishing is seen between 1.5220 and 1.5150 with sl 1.5100. The cable closes below 200D&Ema favoring the near-term weakness and structural bullish view remains in play. We can observe minor distribution between 1.5700 and 1.5690. Until the cable closes below 1.5700, bears are likely to retest 1.5330 and 1.5300. This is just a normal technical correction after a big jump. The cable closed below the ascending trendline, started making lower high formation. The lower levels of 1.5220 and 1.5150 are expected in case the price closes below 1.5393.

Support: 1.5440, 1.5390, 1.5300

Resistance: 1.5575, 1.5655, 1.5700.

Intraday: The nearest support is found at 1.5446. Bears have a selling opportunity below 1.5440 aiming at 1.5390, 1.5355, 1.5340, and may be 1.5300. Intraday resistance is seen at 1.5525, 1.5600, and 1.5650. Until the price closes below 1.5700, bears have the upper hand. Bulls have a buying opportunity above 1.5525 aiming at 1.5538, 1.5570, and 1.5600. In the extreme case bulls can aim at 1.5660. Bulls will regain the strength above 1.5700.

Trade: Selling below 1.5440 buying above 1.5525

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Daily analysis of USDX for May 25, 2015 Market Analysis Review

The USDX remains very strong in the bullish trend on the daily chart. It is also doing a consolidation above the support level of 95.74 with a target around the level of 96.97. If the index does a breakout in that zone, we could expect a rally towards the level of 98.08. The daily chart is already calling for more upside room for this week.

The last Friday was important for the current intraday structure of the USDX, because the index is already forming a higher high pattern above the support level of 96.21. Also, if the USDX does a consolidation above the 96.46 level, it would be expected to do a rally until the 96.90, which is an important high. The MACD indicator is in the overbought zone.

Daily chart's resistance levels: 96.97 / 98.08

Dailychart's support levels: 95.74 / 95.00

H1 chart's resistance levels: 96.46 / 96.90

H1 chart's support levels: 96.21 / 95.82

Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the USD Index breaks with a bullish candlestick; the resistance level is at 96.46, take profit is at 96.90, and stop loss is at 96.04.

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Daily analysis of major pairs for May 25, 2015 Market Analysis Review

EUR/USD: A drop over 420 pips last week has established the weakness on the EUR/USD. There is a Bearish Confirmation Pattern on the market now: the price would go further downwards this week, testing the support lines at 1.0950 and 1.0900. More intense bearish pressure could even take the price beyond these support lines.

USD/CHF: This pair has turned bullish. The price trended upwards from the support level at 0.9150, testing the resistance level at 0.9450. That is a movement of 300 pips and further northward journey is possible. The only challenge to this expectation is a possible stamina in CHF.

GBP/USD: On the cable, the last week was characterized by serious battle between bulls and bears, but at the end of the week, the bears gained the upper hand. However, the recent bullish bias would be violated only when the accumulation territory at 1.5400 gets breached to the downside. The bullish bias is seriously threatened – it would be invalid only after the aforementioned accumulation territory is violated.

USD/JPY: The USD/JPY pair moved upward by 200 pips last week. The upward journey started at the demand level of 119.50 and it has gone beyond the demand level at 121.50. This bullish journey has put the end to the recent protracted equilibrium phase on the market: the price would continue its journey upwards as long as USD is strong.

EUR/JPY: The fate of this cross would continue to be determined largely by whatever happens to the euro. The current weakness on the market is caused by the weakness in the euro itself, and things have already turned bearish, the trend that could be sustained this week.

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Daily analysis of GBP/USD for May 25, 2015 Market Analysis Review

GBP/USD continues to trade lower and riding a bearish bias below the 200 SMA at the daily chart. Also, we expect a bearish continuation until the support level of 1.5346 during this week. The current price action shows a fractal formation that favors bears in this time frame. The MACD indicator is also at negative territory.

During the friday session, GBP/USD had a strong drop below the 200 SMA at the H1 chart and is already testing the zone around the support level at 1.5443. If the pair breaks that level, it would be expected to fall until 1.5358. Currently, there is a lower low pattern formation in place, and we could expect more falls in an intraday basis.

Daily chart's resistance levels: 1.5543 / 1.5745

Dailychart's support levels: 1.5346 / 1.5199

H1 chart's resistance levels: 1.5597 / 1.5670

H1 chart's support levels: 1.5443 / 1.5358

Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the GBP/USD pair breaks a bearish candlestick; the support level is at 1.5443, take profit is at 1.5358, and stop loss is at 1.5534.

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Technical analysis of EUR/USD for May 25, 2015 Market Analysis Review

Today is a Bank Holiday in the US and European countries. So amid this condition, EUR/USD will move in low volatility during the day.

TODAY TECHNICAL LEVELS:

Breakout BUY Level: 1.1044.

Strong Resistance:1.1038.

Original Resistance: 1.1027.

Inner Sell Area: 1.1016.

Target Inner Area: 1.0911.

Inner Buy Area: 1.0966.

Original Support: 1.0955.

Strong Support: 1.0944.

Breakout SELL Level: 1.0938.

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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For detail explanation and best discovery on daily market trends and news you may visit via Technical analysis of EUR/USD for May 25, 2015 . Thanks for your support.

Technical analysis of USD/JPY for May 25, 2015 Market Analysis Review

In Asia, Japan will release the BOJ Monthly Report and Trade Balance. The US is not expected to release any economic data today because owing to the Bank Holiday. So, there is a big probability that USD/JPY will move with low volatility during the day.

TODAY TECHNICAL LEVELS:

Resistance. 3: 121.84.

Resistance. 2: 121.60.

Resistance. 1: 121.36.

Support. 1: 121.08.

Support. 2: 120.86.

Support. 3: 120.60.

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.

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 Technical analysis of USD/JPY for May 25, 2015 . Thanks for your support.

EUR/NZD analysis for May 22, 2015 Market Analysis Review

Overview:

Recently, EUR/NZD has been trading downwards. The price tested the level of 1.5037 in an ultra high volume (selling climax). The short-term trend is neutral. According to the daily time frame, supply is in a volume below the average. According to the 30-minute time frame, I found strong trading range between the price of 1.5040 and 1.5260. Be careful when buying. I placed Fibonacci expansion to find potential bearish targets and got Fibonacci expansion 61.8% at the price of 1.5070 (on the test), Fibonacci expansion 100% at the price of 1.4940 and Fibonacci expansion 161.8% at the price of 1.4725. Anyway, I am waiting for a clear break and strong volume to confirm futher direction.

Fibonacci Pivot Points:

Resistance levels:

R1: 1.5245

R2: 1.5285

R3: 1.5345

Support levels:

S1: 1.5120

S2: 1.5080

S3: 1.5020

Trading recommendations: Be careful when buying EUR/NZD at this stage since we can observe strong bearish activity (volume). Anyway, we need to see strong breakout to confirm further direction.

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