Elliott wave analysis of EUR/NZD for March 30 – 2016

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Wave summary:

Stepping back a little to get the perspective right, we are convinced that we have seen an important low at 1.5784 (wave 2 low) and that a wave 3 rally is unfolding. However, we have not yet seen the expected acceleration higher in wave 3 that we normally expect, so is our count incorrect?

We think our wave count remains correct as long as the important support at 1.6085 stays unbroken. In the short term, we are looking for support near 1.6210 for a new rally above the important resistance at 1.6730 which is expected to release a lot of energy finally providing the upside acceleration towards 1.8551 which we have been looking for.

Trading recommendation:

We will only buy EUR at 1.6250 or upon a break above 1.6730 (one order cancels the other).

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

Elliott wave analysis of EUR/JPY for March 30 – 2016

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Wave summary:

Resistance at 127.27 was not able to protect the upside, which calls for a more complex double zig-zag combination unfolding. Wave c of the second zig-zag is currently unfolding and the wave equality between waves a and c will call for a rally higher to 128.91 to end wave iv and turn prices lower in wave v.

Support is now seen at 126.64 which ideally will protect the downside for the next rally above 127.45 for a move higher towards 128.91.

Trading recommendation:

We are long in EUR from 127.35 and will start placing our stop at 125.85 expecting to raise it soon.

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

Nikkei 225 drops, rest of Asia climb on cautious Yellen

The stocks on the Asian bourses climbed on Wednesday, taking the positive lead from the Wall Street overnight on dovish Yellen, which smashed April Fed rate hike expectations.

Nikkei bucks the trend as yen rises

The Japanese benchmark index, the Nikkei 225 is down -0.33%% to trade around 17,050 levels as the overnight rally in the yen versus the US dollar continues to weigh on the exports-oriented stocks. The greenback was heavily sold-off across the board on the dovish remarks by Fed Chair Yellen. Yellen reasserted the central bank’s gradual approach to raising interest rates and hence, traders slashed bets on a Fed rate hike next month to zero.

Moreover, weak Japanese industrial production data also dampened investors’ sentiment. Japan’s industrial production dropped the most since 2011, coming in at 6.2% m/m in February, as compared to a 5.8% decline forecast by markets.

The Australian markets rose for the first time in four days as markets cheer an extended period of easy money on dovish Yellen. However, the upside remains restricted as the recent strength in the AUD drags the retail and exports stocks lower. The ASX 200 index trades 0.30% higher above 5k mark.

Whilst the Chinese indices rebounded sharply and headed for the biggest gain in a week, tracking heavy gains on the financial and resource stocks. More so, upbeat corporate news also collaborated to the upward rally in the local indices. The benchmark Shanghai Composite index rallies 1.73%, Shenzhen’s CSI300 is up 1.62%, while China A50 shares inched 1.25% higher. Markets in Hong Kong also bolted higher, with the Hang Seng trading +1.65% around 20,700 levels.

The stocks on the Asian bourses climbed on Wednesday, taking the positive lead from the Wall Street overnight on dovish Yellen, which smashed April Fed rate hike expectations.

(Market News Provided by FXstreet)

Gold offered near 20-DMA, drops below $ 1240

Gold prices drifted lower in the Asian session, having booked strong gains the day earlier after Fed Chair Yellen turned outrightly dovish and triggered a broad USD sell-off.

Gold stalls 2-day rally

Currently, gold edges -0.10% lower to 1237.70, unable to take out strong resistance near 1243 levels. The yellow metal’s overnight rally ran through fresh supply below 20-DMA at 1245 in the Asian morning, and the prices turned lower from there as sentiment towards the safe-haven soured amid a rebound seen in the Asian stocks. The Chinese equities are rallying 1.20% to 1.75%.

The spot bounced to fresh three-day highs of $ 1243.06 on Tuesday after dovish comments from Yellen, citing cautious approach on Fed’s interest rates outlook, weighed heavily on the US dollar and boosted the non-interest paying gold. More so, a pick-up in buying interest for the bullion from the world’s top consumer, China, further added to the upbeat moods around gold.

Focus now remains on the US employment data due in the upcoming NY session, while the key risk event for the week remains the payrolls data lined up for release on Friday, which may provide further cues on the Fed’s future monetary policy path.

Gold Technical Levels

The metal has an immediate resistance at 1243.06/45 (Mar 29 high/ 20-DMA) and 1250 (psychological levels). Meanwhile, the support stands at 1230/26.50 (round figure/ 5-DMA) below which doors could open for 1215.34 (Mar 29 Low).

Gold prices drifted lower in the Asian session, having booked strong gains the day earlier after Fed Chair Yellen turned outrightly dovish and triggered a broad USD sell-off.

(Market News Provided by FXstreet)

Technical analysis of EUR/USD for March 30, 2016

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When the European market opens, some economic news will be released such as the Italian 10-y Bond Auction and German Prelim CPI m/m. The US will release economic data too such as Crude Oil Inventories and ADP Non-Farm Employment Change. So amid the reports, EUR/USD will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Breakout BUY Level: 1.1343.

Strong Resistance: 1.1337.

Original Resistance: 1.1326.

Inner Sell Area: 1.1315.

Target Inner Area: 1.1289.

Inner Buy Area: 1.1263.

Original Support: 1.1252.

Strong Support: 1.1241.

Breakout SELL Level: 1.1235.

Disclaimer: Trading Forex (foreign exchange) on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

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

Technical analysis of USD/JPY for March 30, 2016

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In Asia, Japan will release the Prelim Industrial Production m/m and the US will release some economic data such as Crude Oil Inventories and ADP Non-Farm Employment Change. So there is a probability the USD/JPY pair will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Resistance. 3: 113.68.

Resistance. 2: 113.46.

Resistance. 1: 113.24.

Support. 1: 112.96.

Support. 2: 112.74.

Support. 3: 112.52.

Disclaimer: Trading Forex (foreign exchange) on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

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

AUD/USD: 0.7850 in range after dovish Yellen

AUD/USD is in a period of consolidation after a rally overnight on the back of Fed Chair Yellen who surprised markets with a more dovish tone than was expected.
Yellen: Appropriate for Fed to proceed cautiously with rate hike


"Caution in normalisation was “especially warranted” as the Fed's ability to act is “asymmetric”. The AUD is approaching some key technical resistance around the 0.7655 level," as explained by analysts at ANZ. The greenback was sold off heavily across the board but, the Aussie was able to sail through the 0.76 level and a move towards 0.7850 over the short-term can not be written off, especially should U.S. data start to really underperform. We now await the nonfarm payroll report and the ISM Manufacturing report to be being released on Friday.

AUD/USD levels

AUD/USD is technically en-route to R1 at 0.7680 although shortterm RSI and momentum indicators point to a phase of consolidation currently. On a break of R1, R2 is located at 0.7725 and R3 at 0.7745. As mentioned, 0.7850 and 17th June high cannot be ruled out at this stage. To the downside, 0.7200 is the psychological level on the wide through 0.7238 and the 200 dma. 0.7380 and double top level needs to give way first and 0.7500 before that.

AUD/USD is in a period of consolidation after a rally overnight on the back of Fed Chair Yellen who surprised markets with a more dovish tone than was expected.


(Market News Provided by FXstreet)

Asian Development Bank cuts its China growth forecast

Asian Development Bank (ADB) lowered its forecasts for China’s economic growth to 6.5% in 2016 from 6.7% seen in its December forecast. While GDP growth forecast for 2017 stood at 6.3%.

Meanwhile, the official growth forecast published by the Chinese government is 6.5 to 7%.

Asian Development Bank (ADB) lowered its forecasts for China’s economic growth to 6.5% in 2016 from 6.7% seen in its December forecast. While GDP growth forecast for 2017 stood at 6.3%.

(Market News Provided by FXstreet)

China A50 futures up 0.17% ahead of Shanghai

China futures (A50 FTSE - benchmark for investors to access the China domestic market through A Shares – ) is trading up 0.17% ahead of the Shanghai Composite open.

China futures (A50 FTSE - benchmark for investors to access the China domestic market through A Shares – ) is trading up 0.17% ahead of the Shanghai Composite open.

(Market News Provided by FXstreet)