GBP/USD intraday technical analysis and trading recommendations for May 17, 2013

May 17th, 2013

The weak bullish structure with integrated swings led to price fall. It happened last week during both Thursday and Friday after the upper limit of the movement channel 1.5590-1.5600 had provided a considerable resistance for the pair.

The GBP/USD pair broke down important support level 50% Fibonacci which came to meet the pair at 1.5315 with the lower limit of the depicted bullish channel which opened the way for the pair towards Fibo 61.8% located at 1.5245.

Shortly after, the GBP/USD pair established a consolidation range 1.5190-1.5267 around 1.5245 (61.8% Fibonacci). Bullish rejection pushed the pair again to test 1.5320 (Fibo 50%) where considerable bearish pressure was applied to the pair to re-close again below 1.5250 (61.8% Fibo).

Yesterday, Price Zone 1.5320-1.5340 provided a SELL entry which is running in profits now, It is adviced that SL should be lowered to 1.5290 to avoid possible reversals.

Failure of the GBP/USD pair to have 4H closure again above 1.5250, favours the bearish view towards 1.5150, then 1.5070.

The material has been provided by InstaForex Company – www.instaforex.com

EUR/USD intraday technical and fundamental review for May 17, 2013

May 17th, 2013

Last week, we talked about consolidation of the pair within the price range 1.2950 -1.3240 and the importance of breakout off this zone for the liberation of the pair. 

Breakdown of the most prominent support zone around 1.2950 revived a "Double-Top" pattern on the daily chart that has final target at 1.2680.

The way towards the previous low at 1.2760 may be open now. However, EUR bears may be interrupted at Intraday support (1.2835) by corrective movement due to oversold short-term charts.   

The nearest support level is located at 1.2835 as depicted on the chart.

A stronger demand level is located at 1.2750 (corresponding to a previous low that was established on April 4) is expected to be visited in case of 1.2835 breakdown.

Price Levels 1.2950 and 1.2910 (broken supports) now probably provide Intraday resistance for the EUR/USD pair to maintain any bullish trials in the short term.

In the short term, the GBP/USD pair is still bearish which needs 1.2830 breakdown. However, bullish retracement towards 1.2950 is not excluded to bring more SELLERS before further decline. 

The material has been provided by InstaForex Company – www.instaforex.com

GBP/USD intraday technical and fundamental review for May 17, 2013

May 17th, 2013

Supply zone located around 1.5550-1.5600 (the upper limit of the depicted bullish channel and 50% Fibonacci level) provided considerable resistance for the cable last week, especially on Friday.

The cable came again inside previous consolidation range between 1.5200-1.5360, breaking the lower limit of the ascending channel as well having its way opened towards 1.5200, the lower limit of consolidation range which is being tested this week.

Yesterday, the cable failed to make daily closure below 1.5200. Instead, yesterday’s movement peaked at 1.5320 and now the outlook looks already negative.

Resistance levels: 1.5370, 1.5580, 1.5650, and 1.5850. 

Support levels:  1.5200, 1.5085,1.5030, and 1.4975.  

Breakdown of the recent low at 1.5310 resumed the ongoing bearish momentum reaching the lower limit of the current consolidation range at 1.5200 where an Intraday demand zone was established.

Yesterday, the cable topped 1.5320, where bears applied further bearish pressure to return back to 1.5240-1.5190. A breakdown of 1.5190 opens the route to 1.5026 support area. 

The next visit to the broken confluence zone at 1.5350-1.5370 stands as strong Intraday resistance, for the pair will probably provide a good SELL entry with SL just above 1.5400. 

Fundamentally, there is no siginifcant data releases from the UK to be anticipated today. However, Initial readings of the University of Michigan consumer confidence may affect USD.

The material has been provided by InstaForex Company – www.instaforex.com

EUR/USD analysis for May 17, 2013

May 17th, 2013

EUR/USD Elliott Wave
Since our last analysis the EUR/USD pair has been trading downwards, just like we expected, impulsive wave 3 (coloured blue) of the bigger wave (3) (coloured green) has been developing. Yesterday, during the Asian session we could observe descending movement from 1.2888 towards the 1.2846 level. Therefore, during the European and New York sessions this major currency did not manage to hold this levels and the price has pushed higher to the 1.2929 level (new daily high). At the moment the EUR/USD pair is trading around 1.2867 area and we expect to see continuation of bearish mood for the next few day. In accordance with our wave rules and taking into account that wave 3 should retrace minimum 100% of wave 1, we can define the potential targets with measuring wave 1 with take profit at 1.2771  (100% of wave 1). To reduce the risk, we can use resistance point at 1.2900 level as stop loss.
Support and Resistance
(S3) 1.2759 (S2) 1.2803 (S1) 1.2842 (PP) 1.2886 (R1)  1.2925 (R2) 1.2969 (R3) 1.3008
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downwards movement. That is why short positions at level 1.2860 with stop loss at 1.2900 and take profit at 1.2771 are recommended. 

The material has been provided by InstaForex Company – www.instaforex.com

USD/CAD analysis for May 17, 2013

May 17th, 2013

USD/CAD Elliott Wave
For the last few days, the USD/CAD pair has been trading upwards, impulsive wave 3 (coloured green) of the bigger wave (A) (coloured blue) has started its  development. Yesterday, during the Asian and European sessions we could observe ascending movement from 1.0151 towards the 1.0205 level. Therefore, during the early New York session this commodity currency did not manage to hold this levels and the price has retraced to the new daily low at the 1.0148 level. We can consider this movement as the end of the corrective sub-wave 4 (coloured red) of the bigger wave 3 (coloured green). At the moment the USD/CAD pair is trading around 1.0248 and we expect to see the price higher for the next few sessions. In accordance with our wave rules and taking into account that wave 3 should retrace 161.8% of wave 1, we can define the potential targets with measuring wave 1 with take profit at 1.0308 (161.8% of wave 1). To reduce the risk, we can use invalidation point at 1.0200 level as stop loss.
Support and Resistance
(S3) 1.0097 (S2) 1.0123 (S1) 1.0156 (PP) 1.0182 (R1)  1.0215 (R2) 1.0241 (R3) 1.0274
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movement. That is why long positions at level 1.0250 with stop loss at 1.0200 and take profit at 1.0308 are recommended. 

The material has been provided by InstaForex Company – www.instaforex.com