Daily analysis of USDX for August 18, 2015 Market Analysis Review

USDX is still trading above the support level of 96.57 and which could be in front of two possible scenarios. One of them is a rebound towards new highs, possibly doing a breakout around the 97.57 level. The other is a lower continuation below the support zone of 96.57 with a mid-term target towards the 95.50 level.

On H1 chart, USDX recovered some positions to the upside. Now, it's testing the 200 SMA price zone around the 96.88 level. A breakout over there will push the index to test the next resistance level of 97.37, which is above of that moving average. However, a pullback could happen until the 96.37 level before that possible rally.

Daily chart's resistance levels: 96.57 / 97.57

Daily chart's support levels: 95.50 / 94.70

H1 chart's resistance levels: 96.88 / 97.37

H1 chart's support levels: 96.37 / 95.94

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 96.37, take profit is at 95.94, and stop loss is at 96.28.

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Daily analysis of GBP/USD for August 18, 2015 Market Analysis Review

On the daily chart, GBP/USD made a pullback at the resistance level of 1.5640 and the ground is ready for a test around 200 SMA, exactly at the support zone of 1.5543. Remember that a breakout there to the downside will enable the pair to visit the support level of 1.5450 on a mid-term basis. MACD indicator is entering the neutral territory.

The short-term outlook is calling for a rebound at the support level of 1.5587, where the 200 SMA is located on the H1 chart. This scenario is possible thanks to the overall trend, which the GBP/USD pair is following on a long-term basis, but we shouldn't discard a breakout towards the support level of 1.5532 in the coming hours.

Daily chart's resistance levels: 1.5640 / 1.5761

Daily chart's support levels: 1.5543 / 1.5450

H1 chart's resistance levels: 1.5632 / 1.5679

H1 chart's support levels: 1.5587 / 1.5532

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 1.5632, take profit is at 1.5679, and stop loss is at 1.5583.

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GBP/USD intraday technical levels and trading recommendations for August 17, 2015 Market Analysis Review

Overview:

On April 9, the bearish trend was resumed towards the level of 1.4550 where a lower daily bottom was reached. This is where the ongoing bullish swing was initiated.

A daily closure above 1.5060 exposed the next resistance levels at 1.5400 and 1.5450 where a temporary bearish pullback took place on April 29.

The next bullish swing extended up to the levels of 1.5750-1.5800, which offered traders few valid sell entries (depicted with red arrows). The final bearish target at 1.5450 was already reached.

Recently, strong bullish pressure was applied against the resistance levels around 1.5800 via the ongoing bullish swing.

That is why, the resistance level at 1.5800 was temporarily breached. Hence, GBP/USD bulls pursued towards 100% Fibonacci Expansion located around 1.5900 where the depicted Head and Shoulders pattern was initiated.

The level of 1.5555 (prominent demand level/depicted uptrend line) got breached earlier last month due to excessive bearish pressure. This enhanced the bearish side of the market towards 1.5360.

However, a bullish pullback towards 1.5550-1.5600 was expected to take place shortly after, as suggested in the previous articles.

Our SELL entry which was suggested around 1.5600 got triggered last week. An early exit should be considered if the current daily candlestick maintains its closure above 1.5600.

A better SELL entry with a lower risk/reward ratio may be offered around the price level of 1.5780 (the upper limit of the consolidation range and the backside of the broken uptrend) if enough bullish pressure is expressed.

Note that fixation below the price zone of 1.5550-1.5500 is mandatory to pursue towards lower bearish targets, initially at 1.5450. Moreover, it confirms the Double-Top reversal pattern.

Moreover, risky traders can SELL the GBP/USD pair upon daily closure below 1.5525. Initial bearish target would be located at 1.5450.

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USD/CAD intraday technical levels and trading recommendations for August 17, 2015 Market Analysis Review

Overview:

When bulls pushed the price further above 79.6% Fibonacci level, the market looked quite overbought. That is why, the price failed to hold above 1.2650 - 1.2680 (previous highs), resulting in a formation of successive lower highs (within the depicted consolidation zone) enhancing the bearish side of the market.

Daily fixation below 1.2300 opened a way towards the levels of 1.2000 and 1.1940 (the depicted weekly uptrend).

Bullish support was found around these levels. Successive higher lows were reached. Bullish pressure was applied against the resistance levels of 1.2450 and 1.2500 (previous tops).

On the other hand, the previous weekly candlestick was quite bullish. That is why, an extensive bullish movement is seen on the chart.

A bullish breakout above the zone of 1.2770-1.2800 has been executed.

The long-term bullish projection target remains projected at the level of 1.3270 (100% Fibonacci Expansion) where bearish pressure should be applied.

Recently, signs of lack of bullish momentum were generated on the chart (Head and Shoulders reversal pattern).

A bearish corrective movement towards the levels of 1.2750 (Breakout Level) should be expected as long as USD/CAD bears keep defending the recent high around the price level of 1.3180.

On the other hand, Bearish persistence below 1.3050 is mandatory to expose the next support level around 1.2910 and then 1.2800 where long-term BUY entries should be considered.

Trading recommendations:

Conservative traders can wait for a bearish pullback towards the recent breakout zone (1.2800-1.2750) for a valid buy entry as the breakout level constitutes a strong support.

Stop Loss should be located below the level of 1.2700. T/P levels should be located at 1.2850 and 1.2900.

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Intraday technical levels and trading recommendations for EUR/USD for August 17, 2015 Market Analysis Review

The market was pushed lower after breaking below major demand levels around 1.2100 and 1.2000 where historical bottoms were previously hit back in July 2012 and June 2010.

EUR/USD bears have already pushed the price slightly below the monthly demand level at 1.0550 (established on January 1997). Bullish recovery was expressed shortly after.

April's monthly candlestick came as a bullish engulfing one. However, the next monthly candlesticks (May, June, and July) reflect recent bearish rejection being expressed around 1.1450.

In the long term, a projection target will be still located at 0.9450 if a bearish breakdown of the monthly demand level at 1.0550 occurs soon.

A bullish corrective movement towards 1.1500 will be possible only if May's monthly high of 1.1465 gets breached (a low probability).

After such a long bearish rally, which started around the level of 1.1300, bullish rejection took place at 1.0570 (monthly demand level).

Multiple ascending bottoms were established around the levels of 1.0470, 1.0550, and 1.0850. These levels corresponded to the daily uptrend depicted on the chart.

Further bullish pressure was observed until bearish rejection was applied around 1.1400 (long-term double-top reversal pattern).

A daily closure below the level of 1.1150 brought EUR/USD to 1.1000 again. A bearish daily closure below 1.0950 enabled a quick bearish decline towards 1.0850 and 1.0750.

Evident bullish recovery was expressed last week after hitting the level of 1.0800. Since then, bulls have been trying to bring a bullish corrective movement towards 1.1000 and 1.1150 where the backside of the broken uptrend is located.

Bearish rejection was anticipated around the price zone of 1.1150-1.1180 as it corresponds to the backside of the broken uptrend (depicted on the chart).

On Friday, significant bearish reaction has been manifested off 1.1150 resulting in two consecutive bearish engulfing daily candlesticks.

The nearest bearish destination to meet the EUR/USD pair would be located at 1.0980 as long as the price level of 1.1150 remains defended by the market bears.

On the other hand, daily closure above 1.1150 threatens the previously mentioned bearish scenario. It may allow a quick bullish swing towards 1.1270 and 1.1300.

Trading recommendations:

Conservative traders could have taken a valid SELL entry around the recently established supply zone (1.1150-1.1170). S/L should be placed above 1.1200 while T/P levels should be located at 1.1100, 1.0850, and 1.0700.

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Intraday technical levels and trading recommendations for GBP/USD for August 17, 2015 Market Analysis Review

Few months ago, the market was pushed above the weekly key zone around 1.5550 in an attempt to reach the area around 1.5900, which provided evident supply for the GBP/USD pair.

As anticipated, a bearish pullback towards the level of 1.5550 took place. A bearish breakout below 1.5500 took place two weeks ago.

Last week, strong bearish pressure was applied to the level of 1.5550 again. It was beeing broken temporarily until the last week when bullish recovery was expressed.

Contradictory signals are coming from consecutive weekly candlesticks. This indicates lacking bullish momentum above 1.5500.

The previous weekly candlestick closure above 1.5500 hinders further bearish decline and enhances the bullish side of the market towards 1.5680 (previous weekly high).

Next bullish destination would be located at 1.5770 (61.8% Fibonacci level).

On the other hand, the current weekly candlestick should be monitored by the end of the week to determine if the weekly closure comes above 1.5500 or below.

The nearest demand level around 1.5200 will become exposed only if the GBP/USD bears manage to bring the market price below the level of 1.5500 again.

Previously, the zone of 1.5800-1.5880 acted as significant supply. It offered a valid sell entry few weeks ago. All T/P levels were successfully reached.

On the other hand, the level of 1.5550, which corresponds to 50% Fibonacci level and a previous prominent top, was temporarily broken allowing further bearish decline towards 1.5350 where an ascending bottom was recently established.

Last week, strong bullish price actions were expressed. A bullish pullback towards 1.5600 took place. The level of 1.5550 was breached during last week's consolidations.

However, Thursday's candlestick came as a bearish engulfing one, which enhanced the bearish side of the market again.

The level of 1.5500 is going to be the significant level to watch for. It corresponds to the short-term uptrend line depicted on the chart.

However, evident bullish pressure was applied at 1.5450 on Monday. A bullish engulfing daily candlestick was expressed by the end of the day.

The nearest supply levels to meet the GBP/USD pair are located around the price levels of 1.5660 (Multiple Daily Highs) and 1.5770 (prominent 61.8% Fibonacci level) where the price reaction should be monitored.

On the other hand, the bearish scenario towards 1.5470 and 1.5370 should only be considered if the GBP/USD bears manage to successfully push below 1.5500 again.

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Technical analysis of USD/CHF for August 17, 2015 Market Analysis Review

USD/CHF is expected to trade with bearish bias. The key resistance at 0.9800. The pair remains under pressure below the key resistance at 0.9800. On an intraday basis, the pair is moving sideways within the range between 0.9800 and the first downside target at 0.9715. Nevertheless, the intraday RSI indicator favors a new drop. Hence, as long as 0.9800 is not surpassed, the risk of breaking below 0.9720 remains high. The second downside target is set at 0.9660 (August 12's low).

Trading recommendations:

The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 0.9715. A break of that target will move the pair further downwards to 0.9660. The pivot point stands at 0.98. In case the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, long positions are recommended with the first target at 0.9860 and the second target at 0.9940.

Resistance levels: 0.9860 0.9940 0.9995

Support levels: 0.9715 0.9660 0.9635

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