Technical analysis on EU,GU and majors

[bhanu545]

Yesterday’s positive sentiment of the currency markets towards the dollar enabled the GBP/USD pair to decline further and reach the 1.6130 level later in the day, and the 5th wave in the 5th became prolonged. In the meantime given the inner wave dimension of the whole downside section of the trend initiated August 19, the upside correction movement might begin either from the high reached yesterday or from the levels near the 60 figure.

Performed by Alexander Dneprovskiy, Analytical expert
InstaForex Companies Group © 2007-2011

[bhanu545]

General review:
According to the Forex market analysis for September 5, a sell signal is being carried out, and the price is steadily moving downwards. Therefore, short positions are recommended. A Chinkou Span being below a price chart, with the price below the Ichimoku cloud, confirms the strong sell signal. The current target level is the second support level at 1.4075. The downward movement continues as long as the price is below a Kijun-Sen line at 1.4335. In case the price is fixed above the line, the current signal weakens and calls for closing short positions. Currently, the Chinkou Span is below the price chart which supports the current sell signal and reflects bearish intentions of traders. A Bollinger Bands reveals a continuation of the downward movement, and the bands are extending and moving downwards. Therefore, speculating for a fall is more profitable. Falling MACD reflects the current downwards movement, and a filter allows trading for a fall. In case MACD turns upward, it signifies the beginning of a correction and calls for closing short positions.


Trading recommendations:
Given the current euro trading situation, speculation on a fall is recommended, with a target of -1.4075. In case the price breaks this level, the next target is 1.3947. It is recommended to put a stop-loss above 1.4335 and lower it following a decrease of the Kijun-Sen line. In case MACD turns upward, manual close of short positions is recommended.

Besides the technical review please take into account fundamental data and the date of its release.

Performed by Stanislav Polyanskiy, Analytical expert
InstaForex Companies Group © 2007-2011

[bhanu545]

GBP/USD currency pair has broken the bullish channel started at 1.5779 but it's considered over-sold right now.

The pair is facing a considerable support 1.6100 now.

This support level 1.6100 is considered important as:

1. It's 61.8% Fibonacci level of the swing up contained in the broken bullish channel.

2. Previous low and the origin of a bullish engulfing pattern on the daily chart.

3. Previous broken high at formed last july.

Based on the previous analysis, There's bullish opportunity around 1.6100 with SL daily closure below it.

TP will be 1.6200, 1.6250 and 1.6300.

Performed by Mohamed Samy, Analytical expert
InstaForex Companies Group © 2007-2011

[bhanu545]

The spot rate has bounced on the lower limit of its medium-term bearish channel in 1.4130 and approach to the intermediate resistanceof this one. A break of these levels would allow it to reach the upper limit of its channel to 1.4200.

According to previous events, the market indicates a bullish opportunity as soon as the spot rate will have broken its resistance in 1.4130 with a 1st objective of 1.4200, then 1.4220. A break in 1.4110 would invalidate this scenario.

Performed by Albert Fitoussi, Analytical expert
InstaForex Companies Group © 2007-2011

[bhanu545]

GBP/USD currency pair has broken the bullish channel started at 1.5779 but it's considered over-sold right now.

The pair is facing a considerable support 1.6100 now.

This support level 1.6100 is considered important as:

1. It's 61.8% Fibonacci level of the swing up contained in the broken bullish channel.

2. Previous low and the origin of a bullish engulfing pattern on the daily chart.

3. Previous broken high at formed last july.

Based on the previous analysis, There's bullish opportunity around 1.6100 with SL daily closure below it.

Yesterday's candlestick activated our suggested long position and failed to close below 1.6100.

Now the pair is still going against us making lower prices which may be better prices to buy at.

We suggest to hold the position until we have either TP or SL ( obvious daily closure below 1.6100)

TP will be 1.6200, 1.6250 and 1.6300.


Performed by Mohamed Samy, Analytical expert
InstaForex Companies Group © 2007-2011

[bhanu545]

On the short graph 4 hours for the euro – United States dollar pair we can see that the wave of price drops was stopped exactly at the support level of 1.3975. It is still to early to state with any degree of certainty if the euro – dollar pair has established strong enough foundation in order to change its direction and begin, once again, to move upwards towards its previous record levels in the region of 1.4525. In the short term, there is a very good chance for a move that can be expected to reach the resistance level of, at least, 1.4360 euro to the dollar.

Performed by Gerardo Porras Palomino, Analytical expert
InstaForex Companies Group © 2007-2011

[bhanu545]

The spot rate is currently testing the intermediate resistance of its medium term bearish channel in 1.6020 suggesting a decline. However a break of these levels would allow it to reach the upper limit of its channel to 1.6250.

According to previous events, the market indicates a bullish opportunity as soon as the spot rate will have broken its resistance in 1.6020 with a 1st objective of 1.6120, then 1.6150. A break in 1.5990 would invalidate this scenario.

Performed by Albert Fitoussi, Analytical expert
InstaForex Companies Group © 2007-2011

[bhanu545]

The spot rate approaches to the lower limit of its medium term bearish channel in 1.5890 suggesting a rebound. However a break of these levels would initiate a bearish trend more violent.

According to previous events, the market indicates a bullish opportunity on the levels of 1.5890 with a 1st objective of 1.6030, then 1.6050. A break in 1.5860 would invalidate this scenario.

Performed by Albert Fitoussi, Analytical expert
InstaForex Companies Group © 2007-2011

[bhanu545]

The spot rate is currently testing the intermediate support of its medium term bearish channel in 1.3970 suggesting a rebound. However a break of these levels would entail a return to the lower limit of its channel to 1.3760.

According to previous events, the market indicates a bullish opportunity on the levels of 1.3970 with a 1st objective of 1.4080, then 1.4120. A break in 1.3940 would invalidate this scenario.

Performed by Albert Fitoussi, Analytical expert
InstaForex Companies Group © 2007-2011

[bhanu545]

The spot rate broke the intermediate support of its medium term bearish channel in 1.3960 suggesting an acceleration to the lower limit of its channel to 1.3710.

According to previous events, the market indicates a bearish opportunity on the levels of 1.3960 with a 1st objective of 1.3850, then 1.3820. A break in 1.3990 would invalidate this scenario.

Performed by Albert Fitoussi, Analytical expert
InstaForex Companies Group © 2007-2011