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Candlestick analysis of the USD/SEK for 15/10/2010 2010-10-15​

The USD/SEK currency pair turns back slightly after refreshment of a new annual minimum. The view on the currency pair remains bearish, as the USD/SEK continues trading in a downward trend.
Earlier at 4-hour graph the USD/SEK formed a combination of “Bearish Engulfing” candlesticks, which gives a downward signal. This candlestick formed after that the currency pair made a rollback to the upper line of the downtrend. However, near 6.9240 the "bears" started increasing their presence.
The last lowering means that this point of view is correct. The breakthrough of October minimum in 2009 - 6.7472 targeted the currency pair to 6.4420.
Worth pointing out if the resistance level 6.7170 will be broken through then short positions should be closed, as it will mean that the downside trend is broken through.




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

 

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The AUD/USD candlestick analysis for 15/10/2010 2010-10-15​

On a 4-hour chart, the AUD/USD currency pair slightly declined after it had refreshed a 27-year high. However, the viewpoint remains bullish, as the uptrend continues. As it was mentioned before, the breach of the resistance level of 0.9917 targeted the AUD/USD to 1.00-1.05.
Earlier on a 4-hour graph, the AUD/USD had formed the combination of candlesticks Morning Star, thus denoting the upward movement.
This combination of candlesticks emerged near 0.8770, where the bulls started to increase their influence and a rollback after downside movement happened. The upward tendency is confirmed by the fact that Morning Star formed near the upper limit of the uptrend (daily chart). This combination of candlesticks offered a good opportunity to open long positions.
The stop orders should be set slightly below 0.9615, as the breakthrough of this mark will indicate the breach of the uptrend.



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

 

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The US market review for 15/10/2010 2010-10-18​

On Friday, the US stock indices closed in different directions.
The DJIA fell by 31.79 points, 0.29%, to 11062.78. Over a week the index grew by 0.51% - this is the sixth week out of last seven, at the end of which the DJIA rose. The Nasdaq Composite edged up by 33.39 points, or by 1.37%, to 2468.77 points on Friday, and by 2.8% this week. The Standard & Poor’s 500 increased by 2.38 points to 1176.19 on Friday, and added 0.95% for the week.
The shares of General Electric shed 5%, as the reading of company’s income for the third quarter turned out to be worse than expected. The investors were actively selling the stocks of financial companies and banks. Bank of America securities lost 4.9%, as the S&P Equity Research declined the recommendation to “hold” from “strong buy”, having noted that the bank may be less prepared for the probable losses connected with mortgage-repurchase demands. The quotes of J.P. Morgan fell by 4.1%.
The dynamics of shares quotes of technology companies was the best on Friday. Hewlett-Packard shares gained by 1.6%, Cisco Systems added 1.3% and Microsoft advanced by 1.2%.
The interest in the shares of the technology sector was promoted by the report of Google, published on Thursday. The company announced its profit for the third quarter ticked up by 32%. Google stocks jumped by 11%. The comments of the FRS Chairman Ben Bernanke strengthened the investors’ confidence that the FRS is ready for new priming measures, though there is a question if these expectations have been already taken into account in the quotations.
In the recent survey of the Wall Street Journal, the economists were nearly unanimous in forecasting that the FOMC would announce additional assets purchase at its November meeting. However, the assessment of benefits and risks differs strongly. Ben Bernanke pointed out that the inflation rate remained below the target level of 2%, and the economic growth is slowly in order to decline the unemployment. In September, the seasonally adjusted CPI rose by 0.1% compared to August. The core inflation was unchanged.
Other data, released on Friday, show the complex situation. The data on the retail sales and manufacturing activity in New York showed the advance. On the other hand, the Michigan consumer sentiment index fell. In August, the inventories of the US companies grew stronger than it was expected, whereas the sales were growing slower, thus indicating the stable but weak economic recovery.

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

 

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EUR/USD Technical Analysis. Support And Resistance Levels For October 18, 2010 2010-10-18​

Breakout Buy level : 1.4019.
Strong Resistance : 1.4010.
Original Resistance : 1.3997.
Inner Sell Area : 1.3983.
Target Inner Area : 1.3950.
Inner Buy Area : 1.3917.
Original Support : 1.3903.
Strong Support : 1.3889.
Breakout Sell level : 1.3881.



On October 14, the EUR/USD had already closed above 1.4 level; that day this pair broke out and closed above 1.4075 (The Hesitation Level Area). Now at 60 Minutes Timeframes this pair formed a Double Top Formation, which indicates that the pair lost the uptrend movement, as a result since early morning the EUR/USD fell to 1.38 level area. Please pay attention to 1.3862 level area, if this pair can break and close below that level, it seems the EUR/USD will have a tendency to reach the 1.3775; because today the EUR/USD has already passed the Hesitation Level area at 1.3925.

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

 

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The USD/JPY technical analysis and trading recommendations for October 18, 2010 2010-10-18​

4-hour timeframe




Overview:
The sell signal is observed, the Bollinger Bands diverge, thus indicating the downside movement. The sell signal is strong and confirmed, as the price is below the Ishimoku Cloud and the Chinkou Span is below the price curve. It is worth to mention that presently the price is below the pivot level; in this case, the first support level of 80.60 is the target for movement. In case this level is passed the next target for the downside movement will be 80.01 – the second support level. If the price fixates above the Kijun-Sen (81.50), this will indicate the weakening of the sell signal and point to reduce short positions. The Chinkou Span is below the price curve, thus indicating the bearish sentiment. The Bollinger Bands show the downwards tendency, the lines are diverging and directed down. The MACD is ascending, testifying about the current correction.

Trading recommendations:
Currently, it is recommended to trade short with the target to 80.60 and further to 80.01. Stop-loss is set above 81.50.

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 technical analysis of the USD/CAD for October 18, 2010 2010-10-18​

Support levels: 0.9980, 0.9930, 0.9821
Resistance levels: 1.0190, 1.0385, 1.0511

On a 4-hour chart, the USD/CAD tests the resistance level of 1.0190. A breakthrough of 1.0385 will denote that the rollback to 1.0680 is over and further upward movement should be expected. The divergence of the MACD and RSI confirms this point of view.
If the USD/CAD reverses and breaches the support level of 0.9980, then the downside movement to 0.9930 is expected with the next target to 0.9821.
In a midterm, the consolidation from 1.0855 is not completed and one more low is possible. Nonetheless, if the reversal takes place, then the breakthrough of 1.0680 will confirm that the consolidation is over and that the downtrend from 1.3063 is breached. In this case, it is expected that the USD/CAD will move to Fibonacci correctional level 38.2 from 1.3063 to 0.9929 at 1.1126 with the next target to Fibonacci correctional level 61.8 at 1.1866.



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

 

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The EUR/USD candlestick analysis for 18/10/2010 2010-10-18​

On a 4-hour chart, the EUR/USD currency pair had formed the Shooting Star candlestick, which indicates the bearish signal.
This candlestick formed on the upper trend. However, the bears started to increase their influence near January 2010 high and a rollback took place.
Presently, the lower limit of the uptrend is tested.
The breach of Fibonacci correctional level 23.6 and support level of 1.3777 will mean that the uprising trend is broken through and confirm this viewpoint.
In this case, the downside movement to 1.3382, where Fibonacci correctional level is set, should be expected.
On a daily chart, the combination of candlesticks Dark Cloud Cover confirms the downside movement.
On the other hand, if the resistance level of 1.4157 is breached then short positions should be closed, as it will lead to new annual highs.




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

 

[BudakFx]

The USD/JPY technical and trading recommendations for October 19 2010-10-19​

4-hour timeframe






Overview:
The sell signal is still observed, the Bollinger Bands converge, thus indicating the possible completion of the downtrend or correction. The sell signal is strong and confirmed, as the price is below the Ishimoku cloud and the Chinkou Span is below the price chart. In addition, it should be said that the price is below the pivot level now, and the first support level of 80.72 is a target for movement. In case this level is broken through the next target for downside movement will be 80.08 - the second support level. If the price cannot breach this level, the correctional uptrend can start. If the price is above the Kijun-Sen (81.50), this will denote the weakening of the sell signal and point to reduce short positions. The Chinkou Span is below the price curve, testifying about the bearish sentiment. The Bollinger Bands show the downwards motion, the lines are converging and directed down, thus indicating the possible completion of the downtrend. The MACD is ascending, pointing to the current correction.

Trading recommendations:
Currently, it is recommended to trade short with the target to 80.72 and further to 80.08. Stop-loss is set above 81.50. We enter the market after the MACD reverses down.

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

 

[BudakFx]

The USD/CAD technical analysis for October 19, 2010 2010-10-19​

Support leves: 0.9980, 0.9930, 0.9821
Resitce levels: 1.0229, 1.0385, 1.0511

At a 4-hour graph, the USD/CAD pair successfully breached the resistance level of 1.0190. If the uprising movement continues, then the breakthrough of 1.0385 will denote that the rollback from 1.0680 is over and the further advance should be expected. The divergence on the MACD and RSI on a 4-hour chart confirms this viewpoint.
If the USD/CAD reverses and breaks through the support level of 0.9980, then the downside movement to 0.9930 with the next target to 0.9821 is expected.
In a midterm, the consolidation from 1.0855 is not over and one more low should be awaited. Nevertheless, if the reversal takes place, then the breakout of 1.0680 will confirm the end of the consolidation and that the downtrend from 1.3063 is breached. In this case, it is expected that the USD/CAD pair will move up to Fibonacci correctional level 38.2 from 1.3063 to 0.9929 at 1.1126 with the next target to Fibonacci correctional level 61.8 at 1.1866.




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

 

[BudakFx]

The EUR/USD candlestick analysis for 19/10/2010 2010-10-19​

Earlier on a 4-hour chart, the EUR/USD pair had formed the candlestick Shooting Star, which indicates the bearish signal.
This candlestick formed on an uptrend. However, the bears started to increase their influence near January 2010 low and a rollback happened.
Presently, the lower limit of the uprising trend is testes. The breakthrough of Fibonacci correctional level 23.6 and support level of 1.3777 will denote the breach of the uptrend and confirm this point of view.
In this case, the downside movement to 1.3382 should be expected, where Fibonacci correctional level is set.
The downtrend is confirmed by the fact that on a daily chart the EUR/USD had formed the combination of candlesticks Dark Cloud Cover.
On the other hand, if the resistance level 1.4157 is broken through, then short positions should be closed, as it will lead to new annual highs.




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