Technical analysis on EU,GU and majors

[bhanu545]

The spot rate is currently testing the upper limit of its medium term trading range at 1.5840 and seems to initiate a decline. However, a break through these levels will release good potential and initiate a violent bullish trend.

Technical indicators provide buy-signals but until the resistance is not broken the assumption of a decline is most likely. Bollinger bands have greatly tightened in recent days showing a decline in volatility and the imminence of a violent movement.

According to previous events the market will provide a bullish opportunity as soon as the spot rate has broken through its resistance of 1.5840 with the 1st objective at 1.5900 and then at 1.5920. A break through 1.5820 will invalidate this scenario.

Performed by Albert Fitoussi, Analytical expert
InstaForex Companies Group © 2007-2012

[bhanu545]

The spot rate is currently testing the upper limit of its medium term bearish channel at 1.2810 and seems to initiate a decline. However, a break through these levels will release good potential and initiate a violent bullish trend.

Technical indicators provide buy-signals but until the resistance is not broken the assumption of a decline is most likely. Bollinger bands are much discarded as a result of a strong increase these days. Stabilization is expected in a short term.

According to previous events the market will provide a bullish opportunity as soon as the spot rate has broken through its resistance of 1.2810 with the 1st objective at 1.2870 and then at 1.2890. A break through 1.2790 will invalidate this scenario.

Performed by Albert Fitoussi, Analytical expert
InstaForex Companies Group © 2007-2012

[bhanu545]

EUR/USD Elliott Wave
From May of 2011 the EUR/USD pair was trading in bearish mood, yesterday this major pair pushed lower again reaching new low at the 1.2657 level. During the European session we could observe descending move towards the 1.2740 level (100EMA support). Therefore during the New York session the EUR/USD pair continued trading in a bearish mood and we could observe price below the 1.2660 level. Today during the Asian session we could observe price at the 1.2615 level. We can consider this move as the end of 5 wave. Presently we are in the A wave (coloured blue) and I expect to see end of this corrective wave at 200EMA resistance. We can use 1.2770 as a Take Profit point and 1.2615 as Stop loss point. Also it is necessary to consider the data concerning the CAD Core Retail Sales m/m, Retail Sales m/m and the U.S. New Home Sales, Crude Oil Inventories that can affect the rate of the pair.

Support and Resistance levels
(S3) 1.2679 (S2) 1.2682 (S1) 1.2683 (PP) 1.2685 (R1) 1.2688 (R2) 1.2689 (R3) 1.2691

Trading Forecast
Proceeding from Elliott Wave Rules this week the trend is expected to begin the upward movement. That is why Long positions at level 1.2670 with Stop Loss at 1.2615 and Take Profit at 1.2770 are recommended.

Performed by Nicola Delic, Analytical expert
InstaForex Companies Group © 2007-2012

[bhanu545]

The Pound sterling, which fell to its low on March 15, is nearly completing the 61.8% Fibonacci retracement, and is very close to the first support 1.5657.

Weekly in view of that the pound sterling is at a key level of change trend, we recommend buying the weekly support line or fibonacci 61.8%, with targets up to 1.6050, we must add, that the trend of GBP / USD bearish long-term continuous, we can interpret the rebound as a pullback to the uptrend line was broken. as we see in the graph.

The Momentum indicator is very oversold and is likely to bounce upwardly within the next few hours.

Performed by Gerardo Porras, Analytical expert
InstaForex Companies Group © 2007-2012

[bhanu545]

EUR/USD Elliott Wave
The EUR/USD pair was trading in a downward move yesterday developing 3 wave (coloured blue). During the European session we could observe descending movement towards the 1.2615 level where this major found support and pushed slightly higher .Therefore during the New York session the EUR/USD pair continued trading in a bearish mood reaching a new low at the 1.2545 level.Today during the Asian session this major make a one more downside push reaching 1.2515. We can consider this move as end of 3 wave (coloured blue). Presently we can observe starting of 4 wave (coloured blue). In accordance with our wave rules and taking into account that the wave 4 retraces 50% of the wave 3, we can define the potential targets with Fibonacci retracement (1.3065-1.2515) with Take Profit at 1.2839 (50% of wave 3). The end of the 3 wave at 1.2515 can be used as Stop Loss. Also it is necessary to consider the data concerning the U.S. Core Durable Goods Orders m/m, Unemployment Claims, Durable Goods Orders m/m, Flash Manufacturing PMI, FOMC Member Dudley Speech, Treasury Sec Geithner Speech and EU ECB President Draghi Speech, and the Belgium NBB Business Climate that can affect the rate of the pair.

Support and Resistance levels
(S3) 1.2461 (S2) 1.2516 (S1) 1.2550 (PP) 1.2604 (R1) 1.2659 (R2) 1.2693 (R3) 1.2747

Trading Forecast
Proceeding from Elliott Wave Rules this week the trend is expected to begin the upward movement. That is why Long positions at level 1.2585 with Stop Loss at 1.2515 and Take Profit at 1.2839 are recommended.

Performed by Nicola Delic, Analytical expert
InstaForex Companies Group © 2007-2012

[bhanu545]

The spot rate is currently testing the upper limit of its medium term bearish channel at 1.5700 and seems to initiate a decline. However, a break through these levels will release good potential and initiate a violent bullish trend.

Technical indicators provide sell-signals and until the resistance is not broken the assumption of a decline is most likely. Bollinger bands have greatly tightened in recent days showing a decline in volatility and the imminence of a violent movement

According to previous events the market will provide a bullish opportunity as soon as the spot rate has broken through its resistance of 1.5700 with the 1st objective at 1.5760 and then at 1.5780. A break through 1.5680 will invalidate this scenario.

Performed by Albert Fitoussi, Analytical expert
InstaForex Companies Group © 2007-2012

[bhanu545]

The spot rate is currently testing the lower limit of its medium term bearish channel at 1.2480 suggesting a rebound. However, a break through these levels will release good potential and initiate a more violent bearish trend.

Technical indicators do not provide clears signals but are approaching the oversell zone supporting the assumption of a rebound. Bollinger bands are much discarded as a result of a strong decline these days. Stabilization is expected in a short term.

According to previous events the market will provide a bullish opportunity at the level of 1.2480 with the 1st objective at 1.2540 and then at 1.2560. A break through 1.2460 will alter this scenario.

Performed by Albert Fitoussi, Analytical expert
InstaForex Companies Group © 2007-2012

[bhanu545]

The British pound has broken the long-term bullish channel which shows there can be deeper downward sequence, in view of that the pair is in oversold area and the momentum indicator is showing bullish signals, which are more likely to return to the area of 61.8% retracement Fibonacci (sequence of maximum 1.6301 - 1.5638 the lowest so far)
Therefore, we recommend selling in the zone around 61.8%of 1.6047 to long-term goals to 1.5267.
We should add that the pair is forming a figure reversal technique, which has the objective of 1.5200. You can visualize on the graph.

Performed by Gerardo Porras, Analytical expert
InstaForex Companies Group © 2007-2012