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USD/JPY Technical analysis, Support and Resistance Levels for December 14, 2010 2010-12-14​

Today Technical Level:

Resistance. 3 : 83.89.
Resistance. 2 : 83.72.
Resistance. 1 : 83.56.
Support. 1 : 83.35.
Support. 2 : 83.19.
Support. 3 : 83.02.

Today Outlook:

Today at 02:15 PM the FOMC will announce its interest rate decision, so the USD/JPY will, probably, move within a narrow range. As of now, the USD/JPY is in the area between 83.31 and 83.55 levels. If the pair breaks down and closes below the 83.55 level, then further the pair will move down to 83.25 as a first target and to 83.00 as a second target. In the other hand, in case the USD/JPY breaks through and strengthens above 83.55, this will indicate that the pair moves upside up to 83.75 as a first target and to 84.00 as a second target. However, if the pair reaches one of these levels and still goes more than 50 pips in the chosen direction, then this will denote that the USD/JPY has found its tendency for today.



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

 

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Candlestick analysis of the GBP/USD for December 14 2010-12-14​

On a 4-hour chart the GBP/USD is testing the resistance level of 1.5900. In case this level is broken through then short positions should be closed, as it will lead to increase to 1.6096.
The viewpoint is bearish, since the pair has formed the combination of candlesticks Bearish Engulfing, which indicates the downside movement, confirmed further.
These candlesticks appeared after the currency pair failed to break through the resistance level near 1.6085-1.6096, which means that the bulls did not manage to solidify here and the bears started increasing their influence.
A breakout of 1.5841 means that this point of view is correct.
In case the resistance level of 1.5500 is breached the decline with the target to 1.5300 is expected.




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

 

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Candlestick analysis of the USD/CHF for December 14 2010-12-14​

On a 4-hour graph the USD/CHF fell strongly. The viewpoint is still bearish, since earlier the USD/CHF has formed the combination of candlesticks Falling Three Methods, which indicates the downwards motion.
This combination of candlesticks shows that the pair was moving upside during a couple of weeks, but a rebound took place after the pair failed to break out the 1.0066 level. This means that the bulls did not manage to fixate here and the bears started to increase their presence. The downside movement is supported by the fact that the currency pair has successfully broken through the line of uptrend.
The breakout of the support level of 0.9850 confirms this point of view; in this case the decline to 0.9667 should be expected. The breakthrough of this level will target the pair to 0.9547. It is recommended to place the stop orders above 0.9950, since the breakout of this level will allow the USD/CHF to reach 1.00066.





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

 

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Candlestick analysis of the NZD/USD for December 14 2010-12-14​

The growth of the NZD/USD pair was limited by the resistance level of 0.7580. Earlier on a 4-hour chart the pair has developed the combination of candlesticks Bullish Engulfing, which indicates the uprising movement.
This combination of candlesticks formed after the pair failed to break out the support level of 0.7400, which means that the bears did not manage to solidify here and the bulls started increasing their influence.
A breakthrough of the Fibonacci correction level 38.2 and resistance level of 0.7630 means that this viewpoint is correct. The uprising movement to the Fibonacci correction level 61.8 with the next target to 0.7853 should be expected.
It is recommended to set the stop orders slightly below 0.7400, as the breakout of this support level will target the currency pair to 0.7150-0.7200.




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

 

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The EUR/USD technical analysis and trading recommendations for December 14 2010-12-14​

4-hour timeframe



Overview:
Yesterday the uprising movement started. New buy signal with a target to 1.3611 has formed. This signal is strong and confirmed as the Chinkou Span fixed above the price graph and the price strengthened above the Ichimoku cloud. Also the price managed to fixate above the first resistance level of 1.3375. In this case the first target for uprising movement is the 1.3526 level – the second resistance level. In case this level is passed the next target will be the third resistance level of 1.3632. The upside movement is observed until the price is above the Kijun-Sen (1.3298), if the price moves below this level then long positions should be closed. The Chinkou Span is above the price graph, thus confirming the current buy signal and pointing to bullish sentiment. Bollinger Bands show the beginning of upside movement, the lines are converging and directed up, thus indicating the end of the flat and beginning of the uptrend. The MACD is ascending, pointing to current upside motion.

Trading recommendations:
Currently it is recommended to trade up with the target to 1.3526. Stop Loss is placed below 1.3298. In case the MACD reverses down then long positions should be closed.

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

The chart annotation:
Ichimoku 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 US stock market review for December 13, 2010 2010-12-14​

On Monday the US stock indices closed up, since China has not raised the interest rates despite the growth of inflation last month.
The Dow Jones Industrial Average rose by 18.24 points, or by 0.16%, to 11428.56. The Nasdaq Composite declined by 12.63 points, or 0.48%, to 2624.91 points. The Standard & Poor’s 500 grew by 0.06 points to 1240.46.
Caterpillar stocks soared $1.69, or 1.9%, to $ 91.63. Chevron shares surged by $1.34, or by 1.5%, to $88.37, Merck stocks grew by 49 cents, or 1.4%, to $36.10.
Dell Inc. reached an agreement to acquire the data storage company Compellent Technologies Inc. for $27.75 per share. Dell stocks fell by 53 cents, or by 3.9%, to $13.36, whereas Compellent lost 73 cents, or 2.5%, to $27.98. General Electric quotes dropped by 10 cents, or by 0.6%, to $17.62. The company announced the purchase of Wellstream Holdings for $1.3 billion. The deal corresponds to GE strategy to expand the industrial business due to acquisitions. Wellstresm board of directors said it recommends the shareholders to accept this offer. The shares rose on Monday after the People’s Bank of China decided not to raise the interest rates following inflation data released on weekend. On Friday China had increased the banks’ reserve requirements for the third time in a month.
On Monday the US published relatively slight calendar of data and reports, having left few motive factors for the trading.




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

 

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EUR/GBP, Technically Estimate a Correction, December 14, 2010 (Daily Strategy) 2010-12-14​

EUR/GBP

The technical estimate is that the correction will develop into a horizontal range between the 0.8550 and 0.8300 price levels.
Based on the above prediction, the positive momentum of the EUR/GBP pair from the last two months is expected to push it towards the upper range of the range. The entry trigger for the short is poised at 0.8540, slightly over the previous high. A goal for a first realization can be placed around the close support level of 0.8480, while the second level for a full exit from the position can be found slightly over the important support level of 0.8380 British pounds for one Euro

Performed by Gerardo Porras Palomino, Analytical expert
InstaForex Companies Group © 2007-2010

 

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CAD/CHF New Wave Upward , December 14, 2010 (Daily Strategy) 2010-12-14​

CAD/CHF

The Canadian dollar – Swiss Franc pair has begun creating the shuffle pattern in which it is currently trading already in late August. The last ascent to the 0.99 highs completed the shuffle's ascending wave, whereas the descending wave currently present is near its completion as part of the typical shuffle movement. At this point we must start preparing for a new positive wave that will return the pair to the price highs of 0.99.

That said, we are not planning to compromise on an attractive price for the above buy deal, and thus we will wait with the buy order, placing it slightly under the last 0.9480 low. The realization goals have been placed relative to the 0.9730 and 0.9850 resistance levels, respectively.

Performed by Gerardo Porras Palomino, Analytical expert
InstaForex Companies Group © 2007-2010

 

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EUR/GBP candlestick analysis (long term view) 2010-12-15​

This week the EUR/GBP currency pair is trading on the upside. Nevertheless, the EUR/GBP reduced slightly after that it did not break through the resistance level around 0.8535.
As it was stated earlier a successful support level breakthrough near 0.8430-0.8450 targeted the currency pair to 0.8143.
The view on the currency pair remains bearish as earlier the EUR/GBP has formed a combination of Bearish Engulfing candlesticks in a downward trend.
In addition, the support level breakthrough at 0.8535 means that this point of view is correct. Now it is worth waiting for lowering 0.7750-0.7700.
In favor of the downward movement comes the fact that this combination of candlesticks formed near the upper line of the downward trend where the "bulls" could not solidify and the "bears" started increasing their influence and the rollback took place.

Worth pointing out that short positions should be closed in case of breakthrough of Fibonacci correction level 50.0, as it will mean that the downtrend is overcome and the currency pair will target to 0.98.




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

 

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EUR/USD Intraday Technical analysis 2010-12-15​

The spot rate broke through its support level at 1.3390, which resulted in a downward acceleration. A look back at the lower limit of its medium-term bullish channel at 1.3220 is feasible in the short term.

According to previous events, the market indicates a bullish opportunity on the levels of 1.3220 with a 1st objective of 1.3330, then 1.3390. A breakthrough of 1.3190 would invalidate this scenario.

Performed by Albert Fitoussi, Analytical expert
InstaForex Companies Group © 2007-2010