Technical analysis on EU,GU and majors

[bhanu545]

The spot rate is currently testing the lower limit of its medium term bullish channel at 1.2520 and seems to initiate a rebound. However, a break through these levels will release good potential and initiate a violent bearish trend.

Technical indicators provide buy-signals and approching oversell zone supporting the assumption of a rebound. 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 at the level of 1.2520 with the 1st objective at 1.2580 and then at 1.2600. A break through 1.2500 will alter this scenario.

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

[bhanu545]

The GBP/USD Linear Regression Channels are all almost bearish with variable bearish tendency due to Last Week's bearish reaction towards Resistance Levels 1.5775 and 1.5730.

Last Friday, the market expressed quite weak bearish movement which ended by visiting 1.5556. However, the pair expressed bearish reaction today pushing the pair down to 1.5537.

Price Level 1.5535 constitutes a strong Intraday Support Level as it corresponds to the lower limit of the Violet channel and the mid-line of the Yellow channel where the price action should be watched for a possible bullish opportunity.

Price Level 1.5585 corresponds to the upper limit of the Yellow channel constituting an Intraday Resistance level to be watched today for a possible BUY entry after having bullish breakout above it.

Breakdown of support level 1.5535 opens the way for a quick bearish decline towards 1.5500 then 1.5465 which is located at the lower limit of the Yellow channel.

Performed by Mohamed Samy, Analytical expert
InstaForex Companies Group © 2007-2012

[bhanu545]

The GBP/USD Linear Regression Channels are all almost bearish with variable bearish tendency due to Last Week's bearish reaction towards Resistance Levels 1.5775 and 1.5730.

Last Friday the market expressed quite weak bearish movement which ended by visiting 1.5556. However, the pair showed bearish reaction yesterday pushing the pair down to 1.5535.

Price Level 1.5535 constituted a strong Intraday Support Level as it corresponds to the lower limit of the Violet and Blue channel and the mid-line of the Yellow channel which was defended by the bulls pushing the GBP/USD pair to the upside breaking the upper limit of the Yellow channel at 1.5580.

Price Level 1.5580 corresponds to the broken upper limit of the Yellow channel constituting an Intraday Support level to be watched today for a valid BUY entry at retesting.

Bullish Targets for the GBP/USD are located at 1.5630 then 1.5680 on the Intraday scale. However, breakdown of 1.5535 invalidates the bullish scenario for today.

Performed by Mohamed Samy, Analytical expert
InstaForex Companies Group © 2007-2012

[bhanu545]

The spot rate is currently testing the intermediate resistance of its medium term bearish channel at 1.2520 and seems to initiate a decline. However, a break through these levels will release good potential and the price will be able to reach the upper limit of this one -1.2610.

Technical indicators do not provide clear 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 decline 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 1.2520 with the 1st objective at 1.2580 and then at 1.2610. A break through 1.2500 will invalidate this scenario.

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

[bhanu545]

The spot rate is currently testing the intermediate resistance of its medium term bearish channel at 1.2520 and seems to initiate a decline. However, a break through these levels will release good potential and will be able to reach the upper limit of this one to 1.2600.

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 1.2520 with the 1st objective at 1.2580 and then at 1.2600. A break through 1.2500 will invalidate this scenario.

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

[bhanu545]

The British Pound managed to bounce higher, breaking its sequence of a downward line, this makes sense because the Swiss National Bank, has publicly stated that is diversifying to the British Pound today.
On a technical level the pair has to look to 1.5570 pullback therefore we recommend buying with objectives to 1.5770. On the other hand if you do not want to risk under a possible downward pressure we recommend buying above 1.5640 (above the 200 day moving average).
The stop loss is placed under 1.5520. MACD indicator is showing mixed signals.

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

[bhanu545]

EUR/USD Elliott Wave
For the last few days the EUR/USD pair was trading in a downward move developing impulsive (5) wave (coloured green) of the bigger wave (iii) (coloured green). Yesterday during the European and New York sessions we could observe descending movement toward the 1.2444 level. We can consider this move as end of the B wave of the bigger 4 wave (coloured blue). Today during the Asian session this major started pushing higher and price reached 1.2522 level (end of the 4 wave). At the moment we can observe the development of the 5 wave (coloured blue). In accordance with our wave rules and taking into account that the wave 1 retraces 100% of the wave 1, we can define the potential targets with measuring 1 wave (coloured blue) with Take Profit 1 at 1.2334 (100% of wave 1) and Take Profit 2 at 1.2216 (161.8% of wave 1). Resistance at 1.2450 can be used as a Stop Loss point. Also it is necessary to monitor the EU Economic Summit, Italian 10-y Bond Auction and the U.S. Unemployment Claims, Final GDP q/q, FOMC Member Pianalto Speaks data that can change the rate of the pair.
Support and Resistance Levels
(S3) 1.2410 (S2) 1.2434 (S1) 1.2449 (PP) 1.2473 (R1) 1.2497 (R2) 1.2512 (R3) 1.2536
Trading Forecast
Proceeding from Elliott Wave Rules this week, the trend is expected to begin the downward movement. That is why Short positions at level 1.2400 with Stop Loss at 1.2450 Take Profit 1 at 1.2334 and Take Profit 2 at 1.2216 are recommended.

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

[bhanu545]

GBP/USD Yellow Linear Regression Channel is wide-ranged with slightly bullish direction while the Blue one is almost transverse due to the sideways movement of the pair this week.
Yesterday GBP/USD expressed significant bullish reaction towards the lower limit of the Yellow and Blue channels around 1.5545 which pushed the pair to the upside towards the mid-line of the Yellow channel.
The mid-line of the Yellow channel resisted further bullish movement and pushed the pair to the downside again towards 1.5540 which corresponds to the backside of the broken bearish Violet channel.
Price Zone 1.5540-1.5525 still constitutes a strong Intraday Support Zone as it corresponds to the lower limit of the Yellow channel and the backside of the broken Violet one where price action should be watched for a low-risk BUY entry with SL located below 1.5495.
Failure of GBP/USD to breakdown price level 1.5540 confirms the bullish targets for GBP/USD which are located at 1.5630 then 1.5675 on the Intraday scale.
Breakdown of price level 1.5500 opens the way for the GBP/USD pair to reach 1.5470 and 1.5405.

Performed by Mohamed Samy, Analytical expert
InstaForex Companies Group © 2007-2012

[bhanu545]

Economists are trying to find out what will be the results of the EU summit. Taking into account the experience of the past summits, it is possible to suggest that the markets will be disappointed with the results once again. However, I find it interesting that the market has not bought the euro with enthusiasm, before running the ad for this day.
On a technical level, the euro has broken the trend line downward pressure and at this point you have two options to continue their upward sequence to the 1.27 or perform the pullback to 1.2540. Most likely to it will continue rising because we noticed a formation of a flag which means that the euro should continue rising to 1.2720 minimum.
The indicators are showing bullish signal.

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

[bhanu545]

The pound is facing strong resistance from 1.57 and I think that it could be crucial in the future. The area above zone from 1.57 to 1.58 could be quite tough and this currency pair is likely to change its direction in general. In the long term the EU negative prospect may affect this pair as well. It is likely that the pound fails to overcome 1.58
At this point, given that the indicators show upward force, we recommend buying at current levels of 1.5612 with targets up to 1.57 or even the 1.5730 resistance level weekly.

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