GBP/USD candlestick analysis for January 3, 2011

On a 4-hour graph the GBP/USD has failed to break through the resistance level at 1.5650 to rebound further. The viewpoint on the pair is still bearish.
Earlier the pair dropped sharply after it failed to break the resistance level of 1.5900. Nevertheless, if the GBP/USD manages to close above the 1.5650 level, it will be recommended to close short positions since this will lead to advance to 1.5900.
As mentioned before, on a 4-hour graph the GBP/USD formed the combination of candlesticks Bearish Engulfing which indicates the decline, confirmed further.
This combination of candlesticks developed after the currency pair could not break through the resistance level near 1.6085-1.6096, which means that the bulls did not solidify here. Further the bears started increasing their influence.
A breakthrough of 1.5841 means that this point of view is correct.


Performed by Vladimir Donin, Analytical expert
InstaForex Companies Group © 2007-2010
[URL="http://instaforex.com/articles/"]More analysis - at [B]instaforex.com[/B][/URL]

USD/CAD technical analysis for January 3, 2011

Support levels: 0.9930, 0.9820, 0.9750
Resistance levels: 1.0212, 1.0290, 1.0380
On a 4-hour graph the USD/CAD has successfully broken through the support level near 0.9980-1.0000. At the moment the viewpoint to the pair is bearish.
Most of 2010 this level has demonstrated substantial demand since Canadian companies tend to buy dollars for lower price. However, low trading volume caused exaggerated fluctuations of this currency pair last week. Therefore the bears have easily broken the 0.9980 level. As mentioned before, the breakout of support level at 0.99880 will allow this pair to reach 0.9930 with 0.9750 as the next target.
Nevertheless, if a reversal takes place and the USD/CAD breaks the 1.0212 resistance level, this will lead to upside motion with the target to 1.0290. Further breakout of 1.0380 will denote the end of a rollback from 1.0680 and that further advance should be expected.
In the midterm the currency pair will probably remain within the limits of its wide range between 1.0000 and 1.0750-1.0850. Nonetheless, in case the reversal takes place, then the breakout of 1.0680 will confirm that the consolidation ended and that the downtrend with 1.3063 is broken through. In this case it is expected that the USD/CAD will move upside to the Fibonacci correction level 38.2 from 1.3063 to 0.9929 at 1.1126 with the next target to the Fibonacci correction level 61.8 at 1.1866.


Performed by Vladimir Donin, Analytical expert
InstaForex Companies Group © 2007-2010
[URL="http://instaforex.com/articles/"]More analysis - at [B]instaforex.com[/B][/URL]

EUR/GBP candlestick analysis (long term view)

The EUR/GBP currency pair ended the previous week on the upside amid typical end of month purchases.
Nevertheless, as mentioned before, successful breakout of the support level near 0.8430-0.8450 targeted the 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 proves that this point of view is correct. Now the pair is likely to decline to 0.7750-0.7700.
The downside movement is supported by the fact that this combination of candlesticks was formed near the upper line of the downward trend where the bulls could not solidify, the bears started increasing their influence and the rollback took place.
It is 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
[URL="http://instaforex.com/articles/"]More analysis - at [B]instaforex.com[/B][/URL]

USD/CHF candlestick analysis for January 3, 2011

USD/CHF candlestick analysis for January 1, 2011
The USD/CHF currency pair is continuing to reach all-time lows. The viewpoint on the currency pair is still bearish. The breakout of the support level 0.9350 targeted the USD/CHF pair to 0.9300 with 0.9250 as the next target.
Earlier on a 4-hour graph the USD/CHF has formed the combination of candlesticks Falling Three Methods which indicates the downside movement.
This combination of candlesticks shows that the USD/CHF was increasing during a couple of weeks, but the rebound took place after the USD/CHF failed to break out the level of 1.0066. This means that the bulls did not manage to solidify here and the bears started increasing their influence. The downside movement is supported by the fact that the currency pair broke through the line of the uptrend.
A breakthrough of support level of 0.9850 confirms this point of view.
It is recommended to place the stop-orders slightly above 0.9560 as the breakout of this level will target the currency pair to 0.9669.


Performed by Vladimir Donin, Analytical expert
InstaForex Companies Group © 2007-2010
[URL="http://instaforex.com/articles/"]More analysis - at [B]instaforex.com[/B][/URL]

USD/CAD technical analysis for January 4, 2011

Support levels: 0.9930, 0.9820, 0.9750
Resistance levels: 1.0212, 1.0290, 1.0380
On a 4-hour graph the USD/CAD has dropped to 0.9891. At the moment the viewpoint to the pair is bearish.
As mentioned before, low trading volume caused exaggerated fluctuations of this currency pair last week. Therefore the bears have easily broken the 0.9980 support level. The breakout of this level allowed this pair to reach 0.9820 with 0.9750 as the next target.
Nevertheless, if a reversal takes place and the USD/CAD breaks the 1.0212 resistance level, this will lead to upside motion with the target to 1.0290. Further breakout of 1.0380 will denote the end of a rollback from 1.0680 and that further advance should be expected.
In the midterm the breakout of the support level at 0.9930 indicated continuing midterm downtrend from 1.3063 (2009 high) with 0.9700 as a target. However, this downside movement is probably a correction, and strong support level is located near 0.9056-0.9700.
Thus, in case the reversal takes place, then the breakout of 1.0851 will confirm that the downtrend from 1.3063 is broken through. In this case it is expected that the USD/CAD will move upside to the resistance level at 1.1126 with 1.1866 as the next target.


Performed by Vladimir Donin, Analytical expert
InstaForex Companies Group © 2007-2010
[URL="http://instaforex.com/articles/"]More analysis - at [B]instaforex.com[/B][/URL]

USD/CHF candlestick analysis for January 4, 2011

The USD/CHF currency pair is continuing to reach all-time lows. The viewpoint on the currency pair is still bearish. The breakout of the support level 0.9350 targeted the USD/CHF pair to 0.9300 with 0.9250 as the next target.
Earlier on a 4-hour graph the USD/CHF has formed the combination of candlesticks Falling Three Methods which indicates the downside movement.
This combination of candlesticks shows that the USD/CHF was increasing during a couple of weeks, but the rebound took place after the USD/CHF failed to break out the level of 1.0066. This means that the bulls did not manage to solidify here and the bears started increasing their influence. The downside movement is supported by the fact that the currency pair broke through the line of the uptrend.
A breakthrough of support level of 0.9850 confirms this point of view.
It is recommended to place the stop-orders slightly above 0.9560 as the breakout of this level will target the currency pair to 0.9669.


Performed by Vladimir Donin, Analytical expert
InstaForex Companies Group © 2007-2010
[URL="http://instaforex.com/articles/"]More analysis - at [B]instaforex.com[/B][/URL]

AUD/USD candlestick analysis for January 4, 2011

The AUD/USD is rolling back after reaching a new all-time high. Nevertheless, the viewpoint on this pair is still bullish due to the continuing uptrend.
Earlier on a daily chart the AUD/USD has formed the combination of candlesticks Bullish Engulfing which indicates the uprising movement, confirmed further.
This combination of candlesticks developed near the support level of 0.9537, where the bulls started to increase their influence and a rebound after a downside movement took place. This combination of candlesticks provided a good opportunity to open long positions.
A breakthrough of the resistance level of 0.9710 means that this point of view is correct.
However, in case the reversal takes place and the AUD/USD breaks through the support level of 0.9825, then long positions should be closed, as it will lead to the further decline to 0.9537.   


Performed by Vladimir Donin, Analytical expert
InstaForex Companies Group © 2007-2010
[URL="http://instaforex.com/articles/"]More analysis - at [B]instaforex.com[/B][/URL]

GBP/USD candlestick analysis for January 4, 2011

On a 4-hour graph the GBP/USD has failed to break through the resistance level at 1.5650 to rebound further. The viewpoint on the pair is still bearish.
Earlier the pair dropped sharply after it failed to break the resistance level of 1.5900. Nevertheless, if the GBP/USD manages to close above the 1.5650 level, it will be recommended to close short positions since this will lead to advance to 1.5900.
As mentioned before, on a 4-hour graph the GBP/USD formed the combination of candlesticks Bearish Engulfing which indicates the decline, confirmed further.
This combination of candlesticks developed after the currency pair could not break through the resistance level near 1.6085-1.6096, which means that the bulls did not solidify here. Further the bears started increasing their influence.
A breakthrough of 1.5841 means that this point of view is correct.


Performed by Vladimir Donin, Analytical expert
InstaForex Companies Group © 2007-2010
[URL="http://instaforex.com/articles/"]More analysis - at [B]instaforex.com[/B][/URL]

USD/JPY candlestick analysis for January 4, 2011

Earlier on a 4-hour graph the USD/JPY pair has formed Hammer candlestick, indicating upside movement. This candlestick shows that the currency pair was decreasing for several days, but rebounded near 80.93.
This viewpoint is supported by the fact the pair has successfully broken the 23.6 Fibonacci correction level. The USD/JPY is expected to move upwards to the resistance level 82.85, where 50.0 Fibonacci correction level is located.
However, if support level 80.93 is broken, long positions should be closed as a break of this level will cause the pair to decrease to 80.20.



Performed by Vladimir Donin, Analytical expert
InstaForex Companies Group © 2007-2010
[URL="http://instaforex.com/articles/"]More analysis - at [B]instaforex.com[/B][/URL]

EUR/GBP candlestick analysis (long term view)

This week the EUR/GBP currency pair has been trading on the downside after it could not break the support level at 0.8650. As mentioned before, successful breakout of the support level near 0.8430-0.8450 targeted the 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 proves that this point of view is correct. Now the pair is likely to decline to 0.7750-0.7700.
The downside movement is supported by the fact that this combination of candlesticks was formed near the upper line of the downward trend where the bulls could not solidify, the bears started increasing their influence and the rollback took place.
It is 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
[URL="http://instaforex.com/articles/"]More analysis - at [B]instaforex.com[/B][/URL]

AUD/USD candlestick analysis for January 5, 2011

The AUD/USD is rolling back further after reaching a new all-time high. Nevertheless, the viewpoint on this pair is still bullish due to the continuing uptrend.
Earlier on a daily chart the AUD/USD has formed the combination of candlesticks Bullish Engulfing which indicates the uprising movement, confirmed further.
This combination of candlesticks developed near the support level of 0.9537, where the bulls started to increase their influence and a rebound after a downside movement took place. This combination of candlesticks provided a good opportunity to open long positions.
A breakthrough of the resistance level of 0.9710 means that this point of view is correct.
However, in case the reversal takes place and the AUD/USD breaks through the support level of 0.9825, then long positions should be closed, as it will lead to the further decline to 0.9537.      

Performed by Vladimir Donin, Analytical expert
InstaForex Companies Group © 2007-2010
[URL="http://instaforex.com/articles/"]More analysis - at [B]instaforex.com[/B][/URL]

USD/JPY candlestick analysis for January 5, 2011

The USD/JPY pair has failed to break the Fibonacci correction level at 38.2 to rebound further.
Earlier on a 4-hour graph the USD/JPY pair has formed Hammer candlestick, indicating upside movement. This candlestick shows that the currency pair was decreasing for several days, but rebounded near 80.93.
This viewpoint is supported by the fact the pair has successfully broken the 23.6 Fibonacci correction level. The USD/JPY is expected to move upwards to the resistance level 82.85, where 50.0 Fibonacci correction level is located.
However, if support level 80.93 is broken, long positions should be closed as a break of this level will cause the pair to decrease to 80.20.


Performed by Vladimir Donin, Analytical expert
InstaForex Companies Group © 2007-2010
More analysis - at [B]instaforex.com[/B]

USD/CHF candlestick analysis for January 5, 2011

USD/CHF candlestick analysis for January 5, 2011
The USD/CHF currency pair is testing the upper limit of the downtrend. However, the viewpoint on the currency pair is still bearish. As mentioned before, breakout of the support level 0.9350 targeted the USD/CHF pair to 0.9300 with 0.9250 as the next target.
Earlier on a 4-hour graph the USD/CHF has formed the combination of candlesticks Falling Three Methods which indicates the downside movement.
This combination of candlesticks shows that the USD/CHF was increasing during a couple of weeks, but the rebound took place after the USD/CHF failed to break out the level of 1.0066. This means that the bulls did not manage to solidify here and the bears started increasing their influence. The downside movement is supported by the fact that the currency pair broke through the line of the uptrend.
A breakthrough of support level of 0.9850 confirms this point of view.
It is recommended to place the stop-orders slightly above 0.9560 as the breakout of this level will target the currency pair to 0.9669.



Performed by Vladimir Donin, Analytical expert
InstaForex Companies Group © 2007-2010
More analysis - at [B]instaforex.com[/B]

USD/CAD technical analysis for January 5, 2011

Support levels: 0.9820, 0.9750, 0.9700
Resistance levels: 1.0212, 1.0290, 1.0380
On a 4-hour graph the USD/CAD is making a strong rebound after a drop to 0.9891. At the moment the viewpoint to the pair is bearish.
As mentioned before, low trading volume caused exaggerated fluctuations of this currency pair last week. Therefore the bears have easily broken the 0.9980 support level. The breakout of this level allowed this pair to reach 0.9820 with 0.9750 as the next target.
Nevertheless, if a reversal takes place and the USD/CAD breaks the 1.0212 resistance level, this will lead to upside motion with the target to 1.0290. Further breakout of 1.0380 will denote the end of a rollback from 1.0680 and that further advance should be expected.
In the midterm the breakout of the support level at 0.9930 indicated continuing midterm downtrend from 1.3063 (2009 high) with 0.9700 as a target. However, this downside movement is probably a correction, and strong support level is located near 0.9056-0.9700.
Thus, in case the reversal takes place, then the breakout of 1.0851 will confirm that the downtrend from 1.3063 is broken through. In this case it is expected that the USD/CAD will move upside to the resistance level at 1.1126 with 1.1866 as the next target.



Performed by Vladimir Donin, Analytical expert
InstaForex Companies Group © 2007-2010
More analysis - at [B]instaforex.com[/B]

AUD/USD candlestick analysis for January 6, 2011

The AUD/USD currency pair is declining further from the 1.0255 level. As mentioned before, if the AUD/USD breaks through the support level at 0.9825, then long positions should be closed, as it will lead to the further decline to 0.9537
Earlier on a daily chart the AUD/USD has formed the combination of candlesticks Bullish Engulfing which indicates the uprising movement, confirmed further.
This combination of candlesticks developed near the support level of 0.9537, where the bulls started to increase their influence and a rebound after a downside movement took place. This combination of candlesticks provided a good opportunity to open long positions.
A breakthrough of the resistance level of 0.9710 means that this point of view is correct.


Performed by Vladimir Donin, Analytical expert
InstaForex Companies Group © 2007-2010
More analysis - at instaforex.com

USD/JPY candlestick analysis for January 6, 2011

The USD/JPY pair has successfully broken the resistance level 82.8 and the Fibonacci correction level 61.8.
Earlier on a 4-hour graph the USD/JPY pair has formed Hammer candlestick, indicating upside movement. This candlestick shows that the currency pair was decreasing for several days, but rebounded near 80.93.
This viewpoint is supported by the fact the pair has successfully broken the 23.6 Fibonacci correction level. Breakout of the resistance level 82.85 has targeted the pair to 84.50.
However, if support level 80.93 is broken, long positions should be closed as a break of this level will cause the pair to decrease to 80.20.



Performed by Vladimir Donin, Analytical expert
InstaForex Companies Group © 2007-2010
More analysis - at [B]instaforex.com

USD/CAD technical analysis for January 6, 2011

Support levels: 0.9820, 0.9750, 0.9700
Resistance levels: 1.0212, 1.0290, 1.0380
On a 4-hour graph the USD/CAD is declining again after a sharp rebound from 0.9891. At the moment the viewpoint to the pair is bearish.
Earlier the pair has broken through the 0.9980 support level. The breakout of this level allowed this pair to reach 0.9820 with 0.9750 as the next target.
Nevertheless, if a reversal takes place and the USD/CAD breaks the 1.0212 resistance level, this will lead to upside motion with the target to 1.0290. Further breakout of 1.0380 will denote the end of a rollback from 1.0680 and that further advance should be expected.
In the midterm the breakout of the support level at 0.9930 indicated continuing midterm downtrend from 1.3063 (2009 high) with 0.9700 as a target. However, this downside movement is probably a correction, and strong support level is located near 0.9056-0.9700.
Thus, in case the reversal takes place, then the breakout of 1.0851 will confirm that the downtrend from 1.3063 is broken through. In this case it is expected that the USD/CAD will move upside to the resistance level at 1.1126 with 1.1866 as the next target.



Performed by Vladimir Donin, Analytical expert
InstaForex Companies Group © 2007-2010
More analysis - at instaforex.com

GBP/USD candlestick analysis for January 6, 2011

On a 4-hour graph the GBP/USD has failed again to break through the resistance level at 1.5650 to rebound further. The viewpoint on the pair is still bearish.
Earlier the pair dropped sharply after it failed to break the resistance level of 1.5900. Nevertheless, if the GBP/USD manages to close above the 1.5650 level, it will be recommended to close short positions since this will lead to advance to 1.5900.
As mentioned before, on a 4-hour graph the GBP/USD formed the combination of candlesticks Bearish Engulfing which indicates the decline, confirmed further.
This combination of candlesticks developed after the currency pair could not break through the resistance level near 1.6085-1.6096, which means that the bulls did not solidify here. Further the bears started increasing their influence.
A breakthrough of 1.5841 means that this point of view is correct.



Performed by Vladimir Donin, Analytical expert
InstaForex Companies Group © 2007-2010
More analysis - at instaforex.com

GBP/JPY Elliott wave count and Fibonacci levels - January 6, 2011

GBP/JPY is developing subwave C (colored yellow in the chart) within impulse wave 5 (colored red) of the medium term uptrend. The targets of the upmove are Fibonacci retracements of 133.03-125.47 and expansions off 125.47-127.00-125.74 (waves 1-2), 125.74-128.61-127.37 (waves 3-4), 127.37-128.07-127.46 (subwaves A-B within wave 5)
Resistances:
- 129.25-29 = confluence area of .50 retracement and super expanded objective point (SXOP), already hit (!)
- 129.75 = SXOP
- 130.14-24 = confluence area of .618 retracement and objective point (OP)
If the price reverses down the nearest supports will be Fibonacci retracements of the waves up from 127.37 and from 125.47 - these waves are not developed yet.


Overbought/Oversold
Althought the medium term trend is up the Detrended Oscillator has shown a clear divergence between the peaks of wave 3 and wave 5, the price has hit .50 retracement and SXOP at 129.29, so be ready for a reversal. Now it's preferable to use overbought readings in conjunction with Fib resistances to consider short positions. Resistance zone at 129.25-29 is the one to look for topping signals.


Performed by Roman Molodiashin, Analytical expert
InstaForex Companies Group © 2007-2010
More analysis - at instaforex.com

AUD/USD Elliott wave count and Fibonacci levels - January 10, 2011

AUD/USD has finished wave 1.0255-0.9903 (wave A of medium term downtrend - colored red in the chart) and is now developing corrective wave B. The targets of the corrective upmove are Fibonacci retracements of 1.0255-0.9903, and expansions off 0.9903-0.9987-0.9917 (subwaves A-B within wave B of larger degree).

Resistances:

- 1.0001 = objective point (OP)
- 1.0037 = .382 retracement
- 1.0053 = expanded objective point (XOP)
- 1.0079 = .50 ret
- 1.0021 = .618 ret
- 1.0137 = super expanded objective point (SXOP)

If the price reverses and breaks below 0.9903 (top of wave A) the nearest supports will be Fibonacci retracements of 0.9540-1.0255.

Supports:

- 0.9898 = .50 ret
- 0.9813 = .618 ret


Overbought/Oversold

Assuming that medium term trend has changed and now is up, it's preferable to use oversold readings of the Detrended Oscillator or its cross below the zero level to consider long positions. The oscillator is below the zero level and oversold area is 10-20 pips away from the current level - 0.9945-35. This is the level to open long position in case a bottoming signal appears.

Performed by Roman Molodiashin, Analytical expert
InstaForex Companies Group © 2007-2010
More analysis - at instaforex.com