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Candlestick analysis of the AUD/USD for 08/10/2010 2010-10-08​

On 4-hour graph the AUD/USD has successfully broken through the resistance level of 0.9850 reaching the new historical maximum at 0.9917 moving down slightly afterwards. Nevertheless, the analysts of large banks recommend buying the Australian dollar in a downward trend.

Earlier on 4-hour graph the AUD/USD has formed the combination of Morning Star candlesticks that comes as an upside signal.
This candlesticks combination has formed near 0.8770 where the "bulls" were increasing their influence and a rollback took place after the down-going motion. In favor of the uptrend comes the fact that Morning Star formed near the lower bound of the upside trend (daily graph) .
This combination of candlesticks gave a good opportunity for opening long positions.

Worth pointing out that stop orders should be placed slightly lower than 0.9541, as this mark breakthrough will mean that the upside tendency is overcome.



Performed by Vladimir Donin, Analytical expert
InstaForex Companies Group © 2007-2010

 

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USD/JPY Technical Analysis. Support And Resistance Levels For October 8, 2010 2010-10-08​

Resistance. 3 : 82.82.

Resistance. 2 : 82.66.

Resistance. 1 : 82.50.

Support. 1 : 82.30.

Support. 2 : 82.13.

Support. 3 : 81.96.

The US dollar traded near the lowest level since 1995 against the yen, on concern the US Federal Reserve will lower the value of the currency by buying government debt to support the economic growth. However, it is forecasted that the pair will trade in narrow range today ahead of publication of Non Farm Payrolls and Unemployment Rate data.

Performed by Arief Makmur, Analytical expert
InstaForex Companies Group © 2007-2010

 

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EUR/USD Technical Analysis. Support And Resistance Levels For October 8, 2010 2010-10-08​

Breakout Buy level : 1.3992.
Strong Resistance : 1.3984.
Original Resistance : 1.3971.
Inner Sell Area : 1.3958.
Target Inner Area : 1.3925.
Inner Buy Area : 1.3892.
Original Support : 1.3879.
Strong Support : 1.3866.
Breakout Sell level : 1.3857.

It seems the EUR/USD pair will be traded in narrow range ahead of Non Farm Payrolls and Unemployment Rate data release, because the US Government will use these two data for quantitative easing policy. According to these reports, the US Government will make a decision if it is going to use the quantitative easing policy in future, and of course, the results of these data release will have an impact on the EUR/USD currency pair.



Performed by Arief Makmur, Analytical expert
InstaForex Companies Group © 2007-2010

 

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The USD/SEK candlestick analysis for 08/10/2010 2010-10-08​

The USD/SEK currency pair continues to trade in a downtrend. Earlier on a 4-hour chart, the USD/SEK had formed a combination of candlesticks Bearish Engulfing, thus signaling about the decline. This candlestick emerged after the currency pair rolled back to the upper limit of the downtrend. However, the bears started to increase their influence near 6.9240.
Further decrease confirms this viewpoint. The breach of October low 2009 - 6.7472 will target the currency pair to 6.4420.
If the resistance level of 6.7927 is overcome then short positions should be closed, as it will denote that the downside trend is broken through.




Performed by Vladimir Donin, Analytical expert
InstaForex Companies Group © 2007-2010

 

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The EUR/USD technical analysis and trading recommendations for October 08, 2010 2010-10-08​

4-hour timeframe



Overview:
The price advances steadily. Buy signal with the target to 1.3064 continues. This signal is strong and confirmed as the price is above the Ishimoku cloud and the Chinkou Span is above the price curve. The target level has been passed already, however the signs that the uprising movement is over are not observed. Alongside, the price has strengthened above 1.3927 – the first resistance level. That is why the second resistance level of 1.4065 is the next target for movement. If the price is below the Kijun-Sen (1.3795) it will denote the weakening of the current signal and the point to reduce long positions. In case, the price breaches the second resistance level of 1.4065 it will offer the next target to 1.4338. The Chinkou Span is above the price chart, which is a confirmation of the current buy signal. The Bollinger Bands show the upward movement, the lines are diverging and directed up, thus indicating the possible continuation of the uptrend. The MACD is descending, thus denoting the correction, however, the correction is slight and the uprising movement continues.

Trading recommendations:
Currently, it is recommended to trade long with the target to 1.4065. Stop-loss is set below 1.3795.

In addition to technical image one should take into account the fundamental data and the time of their release.

The chart annotation:
Ishimoku indicator:
Tenkan-sen — red line
Kijun-Sen — blue line
Senkou Span A — light brown stipple line
Senkou Span B — light purple stipple line
Chinkou Span — green line
Bollinger Bands indicator:
3 yellow lines
MACD indicator:
The red line and the histogram with the white bars in the indicators window.




Performed by Stanislav Polyanskiy, Analytical expert
InstaForex Companies Group © 2007-2010

 

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The GBP/JPY candlestick analysis for October 8, 2010 2010-10-08​

The GBP/JPY currency pair rolls back after it could not break the Fibonacci correctional level 61.8. Nevertheless, it is expected that soon the currency pair will test the support level near 130.00-130.10.
Earlier on a 4-hour chart, the GBP/JPY has formed the combination of candlesticks Bearish Engulfing, thus denoting the downtrend. This candlestick formed after the currency pair could not breach the mark of 135.00, thus denoting that the bulls did not fixate here and bears started to increase their influence. The breakthrough of Fibonacci correctional level 23.6 means that this viewpoint is correct. Besides, the GBP/JPY has formed one more bearish combination of candlesticks Falling Three Methods.
However, if the resistance level of 132.96 is breached, then short positions should be cut, since it will lead to rise to 135.00.




Performed by Vladimir Donin, Analytical expert
InstaForex Companies Group © 2007-2010

 

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The USD/CAD technical analysis for 08/10/2010 2010-10-08​

Support levels: 1.0050, 1.0000, 0.9930
Resistance levels: 1.0208, 1.0385, 1.0511

On a 4-hour chart, the USD/CAD currency pair rolls back after it broke through the resistance level of 1.0101. However, the viewpoint remains bearish, as the downtrend maintains. The breach of the mark of 1.0178 denotes that the downward movement with 1.0680 continues and the decline to 0.9930 should be expected.
Nevertheless, if the USD/Cad breaks through the resistance level of 1.0280, then the viewpoint will be neutral in a short term. The breach of the resistance level of 1.0385 will lead to uptrend to 1.0511.
In a midterm, the USD/Cad currency pair moves up, after it formed a bottom at 0.9930. The breakthrough of 1.0680 will confirm the uptrend and that the downtrend with 1.3063 is breached. In this case, it is expected that the USD/CAD will uprise to Fibonacci correctional level of 38.2 from 1.3063 to 0.9929 at 1.1126 with next target to Fibonacci correctional level of 61.8 at 1.1866.





Performed by Vladimir Donin, Analytical expert
InstaForex Companies Group © 2007-2010

 

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USD/JPY Technical Analysis. Support and Resistance Levels for October 14, 2010 2010-10-15​

Resistance. 3 : 81.64.
Resistance. 2 : 81.68.
Resistance. 1 : 81.52.
Support. 1 : 81.32.
Support. 2 : 81.16.
Support. 3 : 80.99

The bias of the USD/JPY is still a downtrend, if this pair can break through and close below 81.29 level area (Fibonacci Support 38.2%), then it seems it will move to the next Fibonacci Support 23.6% at 81.13. If the downside movement will lead to Support. 3 level 80.99, then there is a possibility for this pair to reverse up between 10 pips to 20 pips; but if the USD/JPY goes down and closes below 80.56 level area this indicates the downside movement for this pair still intact. On the other hand, if the USD/JPY closes above 81.45 level area, then it seems it will reach the Fibonacci Resistance 61.8% at 81.54 and in case the movement is strong the pair can reach the Fibonacci Resistance 78.6% at 81.72. Nevertheless, please pay attention to Resistance. 3 at 81.64 because this pair might slightly reverse to the downside between 10 pips to 20 pips.


Performed by Arief Makmur, Analytical expert
InstaForex Companies Group © 2007-2010

 

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EUR/USD Technical analysis. Support and Resistance Levels For October 14, 2010 2010-10-15​

Breakout Buy level : 1.4092.
Strong Resistance : 1.4083.
Original Resistance : 1.4070.
Inner Sell Area : 1.4056.
Target Inner Area : 1.4023.
Inner Buy Area : 1.3989.
Original Support : 1.3976.
Strong Support : 1.3962.
Breakout Sell level : 1.3954

This pair moves up but there is a possibility that the EUR/USD can reverse especially if it breaks through and closes below Fibonacci Support 23.6% at 1.4039 on a 4-hourt timeframe. In case such situation happens, the EUR/USD will go to next Fibonacci Support 38.2% at 1.3989. Please pay attention to the levels 1.3969 and 1.3869, since if the pair hit them, then they will be a strong Support levels for today. However, in case the pair does not breach these levels, it will move in the uptrend today.

Performed by Arief Makmur, Analytical expert
InstaForex Companies Group © 2007-2010

 

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The US stock market for 14/10/2010 2010-10-15​

Thursday the US stock indices closed on the downside, while the investors were selling the shares of financial companies. The Dow Jones Industrial Average fell by 1.51 points or by 0.01% to 11094.6. The Nasdaq Composite declined by 5.85 points or by 0.24% to 2435.38. The Standard & Poor’s 500 dropped by 4.29 points or by 0.36% to 1173.81.
The shares of financial companies led the decrease. Bank of America securities plunged by 69 cents or by 5.2% to 12.60 USD and J.P. Morgan chase papers fell by 1.12 dollars or by 2.8% to 38.72 dollars. Both banks as well as the number of other banks announced the suspension of foreclosures due to mistakes of employees who approve hundreds of foreclosure documents a day. The shares of Wells Fargo lost 5.1%, this bank also revalues the foreclosures.
Citigroup stocks edged down by 19 cents to 4.06 dollars. The shares of Huntington Bancshares shed 16 cents or 2.6% to 5.72 dollars, the securities of Fifth Third Bancorp dropped by 36 cents or by 2.8% to 21.36 dollars and Zions Bancorp lost 46 cents or 2.1% to 21.36 dollars.
Yahoo papers rose by 68 cents after The Wall Street Journal reported AOL and several investment companies including Silver Lake Partners and Blackstone Group LP discuss a possible takeover bid for Yahoo.
Verizon stocks grew by 23 cents or by 0.7% to 32.44 dollars, whereas AT&T advanced by 3 cents or 0.1% to 28.50 dollars. Apple securities ticked up by 2.17 dollars to 302.31 dollars. Google and Advanced Micro Devices were to present the reports after the end of the session. Google shares declined by 2.37 dollars or by 0.4% to 540.93 dollars and AMD stocks closed down by 8 cents to 7.14 dollars.
Traders say that the market, probably, paused after the highest closing lavas were reached on Wednesday. The US employment data strengthened the concerns on the market on Thursday. The initial jobless claims rose more than expected. The US trade balance deficit also expanded due to the record trade deficit with China in August.




Performed by Vladimir Donin, Analytical expert
InstaForex Companies Group © 2007-2010