USD/CAD intraday technical levels and trading recommendations for October 24, 2014

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Overview:

Two months ago, the bearish swing (initiated in March 2014) was hindered at the price level of 1.0620. This price level corresponded to the lower limit of the channel as well as the backside of a steeper bearish one.

A bullish breakout off the movement channel took place in August. Since then, the pair has been trending-up within the depicted bullish channels.

As mentioned before, breaching the price zone of 1.1230-1.1260 and fixation above it triggered new bullish impulse. Strong bullish momentum has been expressed for a couple of weeks so far. This movement was maintained within a steeper bullish channel.

The bulls were pushing beyond the upper limit of the movement channel. The USD/CAD pair looked overbought on the daily chart. 

Few days ago, the USD/CAD pair tested the upper limit of the steeper channel. This corresponded to the price level of 1.1370. Immediate bearish rejection was expressed as anticipated after such a long bullish swing resulting in a bearish correction towards 1.1200.

Recommendations:

Conservative traders should be looking for short positions around the price zone of 1.1270-1.1290 with SL located just above 1.1320.

On the other hand, for traders who missed the initial entry, 4H fixation below 1.1230 – 1.1210 ( 50% Fibonacci level ) is another valid signal with a higher risk/reward ratio. Initial targets are located at 1.1180-1.1160.  

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

GBP/USD intraday technical levels and trading recommendations for October 24, 2014

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Overview:

The GBP/USD pair has been moving downwards below the depicted downtrend line since July 15 when extensive bearish impulse was initiated.

Many bearish impulses were previously initiated around 1.7180, 1.6630 and 1.6400 where the downtrend line came to meet the pair then.

The price zone of 1.6060 – 1.6090 constituted a transient daily support that paused the bearish movement for a few days since September 9. However, the bears quickly managed to push below reaching down to 1.5890 (depicted on the chart).

A recent bearish impulse took place after retracement towards the price zone of 1.6200.

Price level of 1.5890 provided evident bullish recovery. A bullish engulfing daily candlestick is manifest on the chart.

Recently, the bulls has pushed above the downtrend line. Bullish breakout off the descending-wedge pattern is already manifest on the chart. 

Bullish fixation above 1.6060 is needed to enhance the bullish scenario.This will probably liberate a strong bullish swing towards 1.6250 initially ( significant bottom established in February 2014 ).

Trading recommendations:

Initial bullish fixation above 1.6090 ( the broken trend line ) indicates a valid BUY entry towards 1.6250 and 1.6310. Stop Loss should be located below 1.6015. 

Stepping above 1.6180 ( the recent top ) probably confirm a longer term bullish correction towards 1.6380-1.6400 where 38.2% Fibonacci level is located.

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

Daily analysis of GBP/JPY for October 24, 2014

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Overview 

As shown in today’s H4 chart, the pair failed again to break the Support level of 173.00 and is still trading between the Support level and below the Resistance level of 173.75. Currently, the pair is bouncing from the Support level and starting a bullish move. So we still suggest waiting for closing above the Resistance level of 173.75 to give us a new OPPORTUNITY for more buy signals with the first target few pips below the Resistance level of 174.40, then after breaking this Resistance level, silver would OPEN the way towards the Resistance level of 175.00, which means more bullish signals, but as long as the metal trades below the Resistance level of 173.75, this cancels the bullish scenario. 

Resistance and Support levels: R3 (175.00) R2(174.40) R1(173.75), S1 (173.00) S2 (172.00) S3(171.50).

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

Gold : analysis for October 24, 2014

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Overview:

Since
our last analysis, gold has been trading sideways downwards. As we
expected, the price tested the level of 1,226.12. Our submajor
Fibonacci retracement 38.2% at the price of 1,227.00 is on the test.
According to the daily time frame, we can observe supply in a volume
below the average. Gold is now in a bearish corrective phase so I if
the price breaks the level of 1,227.00 in a high volume, we may see
testing of Fibonacci retracement 61.8% at the price of 1,210.00.
Buying gold at this stage looks risky.

Daily
pivot Fibonacci points:

Resistance
levels:

R1:
1,240.54

R2:
1,244.92

R3:
1,252.03

Support
levels

S1:
1,226.32

S2:
1,221.94

S3:
1,214.83

Trading
recommendations:
Watch for potential intraday selling opportunities

 

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

Daily analysis of major pairs for October 24, 2014

EUR/USD: The EUR/USD pair is still caught in a bearish
trend: the support line at 1.2600 may easily be tested. Should that support
line get breached to the downside, the next target may be the support line at
1.2550.

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USD/CHF: Bulls’ power in this market is now obvious. The Williams’ % range period 20 is
now in the overbought territory, which means that the market is expected to go
further upwards because of the strength in it, even if there would temporary
pullbacks. The EMA 11 is above the EMA 56 and the price is above both of them.
The resistance level at 0.9550 is under siege – another resistance level at
0.9600 may be reached if the resistance level at 0.9550 is breached to the
upside.

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GBP/USD: The Cable is also weak, just like its EUR/USD
counterpart. The bearish journey in the market has resulted in a Bearish
Confirmation Pattern in the chart. The bearish outlook would become
particularly stronger after the accumulation territory at 1.5950 is tested.

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USD/JPY: The
strength in the USD has made the USD/JPY pair go seriously upwards. This has made
long trades logical, and the price could test the supply level at 109.00 today
or next week. In addition, some fundamental figures are expected today and they
may have some impact on the markets.

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EUR/JPY: The sudden weakness in the JPY is what is
aiding the northward effort on this cross. When the price crosses the supply
level at 137.50 to the upside, things would become bullish completely.

5.pngThe material has been provided by InstaForex Company – www.instaforex.com