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USD/JPY Technical Analysis. Support And Resistance Levels For October 29, 2010 2010-10-29​

Resistance. 3 : 81.14
Resistance. 2 : 80.98.
Resistance. 1 : 80.83.
Support. 1 : 80.63.
Support. 2 : 80.47.
Support. 3 : 80.31.

Today the USD/JPY has broken out the "undershoot" area at 80.75 and now the pair tries to reach the target. 1 at 80.50. If this pair successfully breaks that level there is a possibility for this pair to reach the target. 2 at 80.25, but before the USD/JPY goes to that level, it will meet the Support. 3 at 80.31. Usually after this level the USD/JPY reverses to up between 10 pips to 20 pips, but if the pair still goes down to 79.87 after it breaks the Support. 3, this will indicate that the USD/JPY will strengthen today. On the other hand, in case this pair is going up to the Resistance. 3 there is a possibility for the USD/JPY to move downside between 10 pips to 20 pips. However, if the USD/JPY still goes up to 81.58 after the Resistance. 3, it will denote the USD will strength against the Yen, but this second scenario will hardly happen today.



Performed by Arief Makmur, Analytical expert
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The EUR/USD technical analysis and trading recommendations. Weekly review. 2010-10-29​

Daily timeframe



Ishimoku:

The uprising movement continues. Presently, the buy signal with the target at 1.3580 is presented. The signal is confirmed as the price is above the Ishimoku cloud and the Chinkou Span is above the price curve. The target level has been already passed, the correction started, but the buy signal did not weaken. Currently, the interim target is the first resistance level of 1.3995. If the price closes above this level the next target for uprising movement will be the second resistance level of 1.4358. On the other hand, the correction movement may continue. In case the price fixates above the Kidjun-Sen (1.3740) the buy signal will weaken, so long positions should be closed. The price is between the Tenkan-Sen and Kidjun-Sen testifying about the upward tendency. The Tenkan-Sen is directed downwards, thus denoting the beginning of correction. The Kidjun-Sen is directed upside, thus indicating the uptrend in a long term. The uprising movement is confirmed by the fact that the Chinkou Span is above the graph. The Ishimoku cloud testifies the continuation of the upward tendency, since the cloud is expanding.

Bollinger Bands:
This indicator shows the probable end of the uptrend or correction. The lines are converging and directed upward, it can be connected with slight correction, however, as it was mentioned above, the signal did not weaken. In this case the continuation of the correction movement is more preferable.

MACD:
This indicator is directed downside, showing the correction motion. Nonetheless, the price does not move down. The further movement’s direction will be determined near the first resistance level.

Trading recommendations:
Currently, the correction movement is observed on the EUR/USD within the uptrend. In case the first resistance level of 1.3995 is passed it is recommended to trade up with the target at 1.4358. Stop loss is set below 1.3740. If the first resistance level is not broken through it is advisable not to trade because of uncertainty regarding the direction of the trend and probable correction.

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 EUR/USD candlestick analysis for October 29 2010-10-29​

The EUR/USD currency pair slightly declined from the mark of 1.3950. However, the viewpoint on the currency pair remains bearish. As it was mentioned before in case the support level of 1.3696 is broken through, the downside motion with the target at 1.3382 is expected.
On a 4-hour graph, the EUR/USD has formed Shooting Star candlestick that is a bearish signal.
This candlestick emerged on the uptrend. Nonetheless, the bears started to increase their influence and a rollback happened near January 2010 low.
A breakout of Fibonacci correction level 23.6 and support level of 1.3777 means that the uprising trend is broken through, as well as confirms this point of view.
On a daily graph, the EUR/USD pair formed the combination of candlesticks Dark Cloud Cover that comes in favor of downwards movement.
Moreover, a pattern “Head-And-Shoulders” is, probably, forming on 4-hour graph. The breakthrough of the “neckline” will confirm this fact.
In case the resistance level of 1.4079 is breached, the short positions should be cut, since it will lead to increase to 1.4157.




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

 

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The candlestick analysis of the EUR/GBP 2010-10-29​

The EUR/GBP rolls back from Fibonacci correction level 50.0. If by the end of the week the pair closes below 0.8707, then the bearish combination of candlesticks Bearish Engulfing will form. In this case it is recommended to close long positions and open short positions with the target at 0.8090.
Earlier on a weekly chart the EUR/GBP has formed Hammer candlestick that indicates the bullish signal. The uprising movement is confirmed by the fact that this candlestick appeared near the support level of 0.8070, where the bears did not fixate and bulls started to increase their influence and a rebound took place.
This candlestick denotes that the currency pair was decreasing after failed effort to break through the resistance level of 0.9411. However, it reversed, having come closer to 0.8067.
The fact that the EUR/GBP had breached Fibonacci correction level 23.6 confirms this viewpoint.



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

 

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The technical analysis of the USD/CAD for 29/10/2010 2010-10-29​

Support levels: 1.0076, 0.9980, 0.9930
Resistance levels: 1.0385, 1.0511, 1.0680

At 4-hour graph, the USD/CAD currency pair moves sideways after failed attempt to break through the resistance level of 1.0385. The breakout of this mark will denote that the rollback from 1.0680 is over and further advance is expectable. The divergence in the MACD and RSI on 4-hour chart comes if favor of this fact.
If the USD/CAD reverses and breaches the support level of 1.0076, then the decrease to 0.9980 with the next target at 0.9930 is expected.
In a midterm, the consolidation from 1.0855 has not finished yet and another low should be awaited. Nevertheless, the breakthrough of 1.0680 will confirm the end of consolidation and that the downside movement from 1.3063 is broken out. In this case, it is expected that the USD/CAD will move upwards to Fibonacci correction level 38.2 from 1.3063 to 0.9929 at 1.1126 with the next target at Fibonacci correction level 61.8 at 1.1866.



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

 

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The candlestick analysis of the EUR/USD for 01/11/2010 2010-11-01 ​

The EUR/USD currency pair moves upward again. Nonetheless, the viewpoint on the currency pair remains bearish. As it was mentioned before, if the support level of 1.3696 is broken through the downside movement with the target at 1.3382 is expectable.
Earlier on a 4-hour graph the EUR/USD has formed Shooting Star candlestick, which indicates the bearish sentiment.
This candlestick emerged on the uptrend. However, near January 2010 high the bears started to increase their influence and a rollback took place.
The breakout of Fibonacci correction level 23.6 and support level of 1.3777 denotes the breakthrough of the uptrend and confirms this point of view.
The combination of candlesticks Dark Cloud Cover, formed on the daily chart of the EUR/USD, comes in favor of downwards motion.
Moreover, a pattern “Head-And-Shoulders” is, probably, forming on 4-hour graph. The breakthrough of the “neckline” will confirm this fact.
In case the resistance level of 1.4079 is breached, the short positions should be cut, since it will lead to increase to 1.4157.







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

 

[BudakFx]

The candlestick analysis of the EUR/GBP 2010-11-01 ​

The EUR/GBP has rolled back from Fibonacci correction level 50.0. Moreover, by the end of the week, the EUR/GBP formed the combination of candlesticks Bearish Engulfing. It is recommended to close long positions and open short with the target at 0.8090. The stop orders should be set slightly above the Fibonacci correction level 50.0. A breakthrough of the support level of 0.8530 will confirm this viewpoint, moreover, the drop to 0.8090 should be expected.
Earlier on a weekly chart, the EUR/GBP has formed Hammer candlestick, which is the bullish signal. The uprising motion is supported by the fact that this candlestick emerged near the support level of 0.8070, where the bears did not fixate and the bears started to increase their influence and a rollback happened.
This candlestick shows that the pair was declining after the failed attempt to break through the resistance level of 0.9411. Nevertheless, having come closer to 0.8067, the pair reversed.
The fact that the EUR/GBP has breached the Fibonacci correction level 23.6 means confirms this point of view.







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

 

[BudakFx]

The technical analysis of the USD/CAD for 01/11/02010 2010-11-01 ​

Support levels: 1.0155, 0.9980, 0.9930
Resistance levels: 1.0385, 1.0511, 1.0680

On 4-hour graph, the USD/CAD pair tests the support level of 1.0155. In case this level is broken through we expect the decline to 0.9980 with the next target at 0.9930.
However, if the mark of 1.0155 resists, the pair, probably, will continue the consolidation. If the USD/CAD moves upward, then the breakout of 1.0385 will denote the end of the rollback from 1.0680 and further advance should be expected. The divergence on the MACD and RSI on a 4-hour chart comes in favor of this situation.
In a midterm the consolidation from 1.0855 has not finished yet and another low should be expected. However, in case of the reversal the breakout of 1.0680 will confirm the end of the consolidation as well as the breakthrough of downside trend from 1.3063. In this case it is expected that the USD/CAD will move up to Fibonacci correction level 38.2 from 1.3063 to 0.9929 at 1.1126 with the next target at Fibonacci correction level 61.8 at 1.1866.







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

 

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The EUR/USD technical analysis and trading recommendations for November 1, 2010 2010-11-01 ​

4-hour timeframe






Overview:
New buy signal with the target at 1.4188 has formed. The Bollinger bands are diverging and directed upward, thus indicating the beginning of new uprising movement. The signal is strong and confirmed, as the price is above the Ishimoku cloud, and the Chinkou Span is above the price curve. In this case, the first target for the upward motion is the first resistance level of 1.4105. In case the price fixates above this level, the nest target will be 1.4188. If the price does not strengthen above this level, the correction will start. The critical level for the current uptrend is the mark of 1.3870 (Kidjun-Sen), below this level the buy signal will weaken. The Chinkou Span is above the price curve, thus confirming the current buy signal. The Bollinger Bands show the beginning of uptrend, the lines are diverging and directed upward. The MACD is ascending, testifying the current uprising motion.

Trading recommendations:
Currently, it is recommended to trade up with the target at 1.4105. The stop loss is set below 1.3870.

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/USD technical analysis and trading recommendations for November 2 2010-11-02​

4-hour timeframe




Overview:
The buy signal with the target at 1.6057 continues. The Bollinger Bands are diverging. This signal is confirmed, since the Chinkou Span has fixated above the price graph and the price is above the Ishimoku Cloud. The target level has been already passed, however the signs of the reversal are not observed, which means that the upwards movement is actual. The price also has fixated above the pivot level of 1.6169 and we have the target at first resistance movement of 1.6169. In case the price rebounds from the level of 1.6057, the correction can start. In this case in order to trade with the target at 1.6169, it is recommended to wait until the price fixates above the target level. If the price is below the Kidjun-Sen (1.5900), the buy signal will weaken and it will be a point to cut long positions. The Chinkou Span is above the price graph, thus confirming the current buy signal. The Bollinger Bands show the uprising movement, the lines are diverging and directed upwards. The MACD is directed downside, however, the price does not declining.

Trading recommendations:
Currently, it is recommended to trade up with the target at 1.6169, but only in case the price fixates above 1.6057 and the MACD reverses upside. The stop loss is set below the Kidjun-Sen (1.5900).

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