Analysis of EUR/NZD for January 07, 2014

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Overview:


In our last analysis, EUR/NZD was trading downwards. As we expected, the price tested the level of 1.5265 in a high volume. According to the H4 time frame, we can can observe supply in a volume above the average, which is a sign that buying EUR/NZD looks risky. Our Fibonacci expansion 100% at the price of 1.5400 got broken so we may see potential testing of the level of 1.4950 (Fibonacci expansion 161.8%). Be careful when buying and watch for potential selling opportunities after retracement.


Daily Fibonacci pivot levels:


Resistance levels:


R1: 1.5472


R2: 1.5530


R3: 1.5623


Support levels:


S1: 1.5285


S2: 1.5227


S3: 1.5133


Trading recommendations: Be careful when buying the EUR/NZD pair at this stage, since we can observe strong supply in the background.


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Analysis of gold for January 07, 2014

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Overview :


Since our last analysis, gold has been trading sideways around the price of 1,214.00. According to the 4H time frame, we can observe demand in an ultra-high volume (buying climax) in the background, which is a sign that buying gold at this stage looks risky. Our Fibonacci retracement 61.8% at the price of 1,211.00 is broken so we may expect testing of the level of 1,237.00 (swing high like resistance). According to the 1H time frame, we can observe bearish harami candle formation, which is a sign of temporally lack of demand. Anyway, my advice is to watch for potential buying opportunities on the lows.


Daily pivot Fibonacci points:


Resistance levels:


R1: 1,223.06


R2: 1,228.18


R3: 1,236.47


Support levels:


S1: 1,206.48


S2: 1,201.36


S3: 1,193.07


Trading recommendations: Watch for potential buying opportunities after retracement (buy on the lows).


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Technical analysis of AUD/USD for January 7, 2015

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Overview :



  • According to the previous events, the price of the AUD/USD pair is still trading between the levels of 0.8060 and 0.8103. Moreover, it should be noted that the market was quite stable and the downward trend was also evident. Futhermore, in the same way, the range will be around 158 pips this week. Additionally, the value of 38.2% Fibonacci retracement levels is 0.8103 so the key level of 0.8103 is available for a downtrend to confirm the bearish market. Therefore, sell deals are recommended below the 0.8103 level with targets at 0.8077; it will resume towards 0.8056 in order to test the weekly support 1. It should be noted the descending movement will probably be lower than 0.8056 level to test the double bottom at the level of 0.8035.


Intraday technical levels:


Date and time: 7/01/2015 12:20


Pair: AUD/USD



  • R3: 0.8219

  • R2: 0.8188

  • R1: 0.8132

  • PP: 0.8101

  • S1: 0.8045

  • S2: 0.8014

  • S3: 0.7958


Note:



  • Please check out the market volatility before investing, because the sight price may have already been reached and the scenarios would become invalidate.


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Technical analysis of EUR/USD for January 7, 2015

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Overview :



  • According to the previous events, the price of the EUR/USD pair is going to move between the levels of 1.1890 and 1.1740 this week.

  • Resistance has already set at the level of 1.1956 (minor resistance sets at the level of 1.1890) and support stood at 1.1740.

  • But currently, support is placed at 1.1813.

  • So, we expect a range about 150 pips (1.1890 - 1.1740) this week.

  • Additionally, it should be noted that if the trend is ascending, then the strength of the currency will be defined as follows: EUR is in the uptrend and USD is in the downtrend. The downward trend is still strong so the pair will probably go down.

  • Therefore, it will be of the insight to sell in this area (1.1740) with the first target at 1.1813, then the price will be able to continue in the downtrend towards 1.1740 in order to try to break the weekly support 3.

  • On the other hand, the stop losses should be placed above the double top 1.1975.


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Technical analysis of EUR/JPY for January 7, 2015

General overview for 07/01/2015 11:30 CET


The wave (c) blue has extended the drop a little bit further to hit the weekly support at the level of 140.54. Nevertheless, the outlook for the pair is still bullish and currently the bullish divergence is supporting the view that this corrective drop is near to finish and further upward rally is about to unfold. Please note that the key level to the upside is now at the level of 141.67. A breakout above this intraday resistance would be the first clue that the bullish impulsive structure is in progress. But to further confirm this scenario, the price must break out above the level of 143.17.


Support/Resistance:


140.54 - WS2


141.65 - Intraday Resistance


141.95 - WS1


143.18 - Intraday Resistance


144.10 - 144.42 - Gap Zone


144.58 - Weekly Pivot


145.57 - Technical Resistance


146.22 - WR1


Trading recommendations:


Buy orders opened yesterday with SL below the level of 140.54 and TP at the level of 144.42 should be still kept open as there is a high chance the corrective cycle might be completed now. Next good level to add to existing positions is at the level of 143.17.


eurjpy_h1.jpg


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Technical analysis of USD/CAD for January 7, 2015

General overview for 07/01/2015 11:10 CET


The targets from the beginning of the week have been hit overnight as the market had made another higher high in this impulsive wave progression. Moreover, the count has been little changed as the top for wave 5 purple has been moved one leg higher into the projected target zone between the levels of 1.1897-1.1922. This would mean that the market is rather close to complete the five wave impassive sequence and corrective move to the downside can happen any time now. Please notce that the bearish divergence on momentum oscillator supports this view.


Support/Resistance:


1.1935 - WR1


1.1922 - 1.1897 - Projected Wave 5 Target Zone


1.1842 - Technical Support


1.1820 - Intraday Support


1.1753 - Weekly Pivot


Trading recommendations:


Daytraders should consider to open an intraday buy orders from current price levels with SL below the level of 1.1820 and TP at the level of 1.1897.


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GBP/USD intraday technical levels and trading recommendations for January 7, 2015

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Overview:


The GBP/USD pair has been moving downwards respecting the depicted bearish channel since mid-September when the ongoing channel was initiated.


Recently, the market failed to express a bullish breakout above the price level of 1.5760 (upper limit of the daily bearish channel).


Instead, an extensive bearish breakout was applied against the price levels of 1.5540-1.5560 (this breakdown was successfully executed on December 23).


A daily closure below the recent bottoms established around 1.5540-1.5560 rendered the previous consolidation range as a bearish flag pattern with potential projected target at 1.5300.


The key level for today's movement remains around 1.5200. Persistent fixation below it signals more bearish dominance towards the lower limit of the movement channel around 1.5130 and probably 1.5100.


On the other hand, four-hour fixation above price level of 1.5200 pauses the current bearish decline exposing price level of 1.5260, 1.5370 and 1.5410.


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Intraday technical levels and trading recommendations for GBP/USD for January 7, 2015

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Previously, the GBP/USD pair found temporary DEMAND around 1.5550 where many lows were established within a congestion zone back in November 2014.


A bearish breakout was expressed after successive unsuccessful attempts back in 2014.


A bearish flag pattern is obvious on the daily chart, similar to what happened back in October. The bearish breakout of this continuation pattern enabled bears to reach price level of 1.5550 directly.


The final bearish target would be the level of 1.5140 where the lower limit of the movement channel is located.


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Consolidation movement ranging between the price levels of 1.5770 and 1.5550 represented the state of indecision on the market after such a long bearish rally that started off 1.7100 and 1.6500.


As anticipated, the bearish breakout below 1.5550 directly exposed lower targets. The bears have already reached price level of 1.5160 that hasn't been hit since August 2013.


Potential projection target for the flag continuation pattern should be located around 1.5140 down to 1.5100, where the lower limit of the current movement channel is located.


Conservative traders should wait for a bullish pull-back towards the recent SUPPLY zone around 1.5480-1.5550 for a low-risk SELL entry. The stop loss should be located above 1.5560.


Note that the price level of 1.5480 corresponds to 50% Fibonacci level as well as multiple previous bottoms established back in December.


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Intraday technical levels and trading recommendations for EUR/USD for January 7, 2015

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Previously, DAILY closure below 1.2360 (the lower limit of the congestion zone) directly exposed price levels around 1.2250.


The EUR/USD pair continued to move lower after breaking below the major DEMAND LEVEL at 1.2250 exposing price levels of 1.2120 and 1.2000 .


Fundamentally, the euro sentiment remained negative upon the prospect of more actions from the ECB in the coming weeks regarding QE.


Note that the market is currently pushing further below price level of 1.2000 (prominent psychological SUPPORT, also corresponding to the lower limit of the movement channel).


Price action should be watched carefully at the market closure for further decisions as the market currently looks oversold.


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As anticipated previously, an obvious 4H break below 1.2150 exposed the full-range breakout projection target around 1.2000.


Following such a strong bearish swing, the market should be looking for a considerable demand level to pause around.


The lower limit of the current movement channel has been breached after the bearish gap that occurred at the market opening this Monday.


Further price action should be considered as the current price levels haven't been visited since May 2010.


Trade recommendations :


Risky traders should now be looking for LONG positions around these historical low prices after such quick bearish decline that started around 1.2550.


However, conservative traders should be looking for SHORT positions in such strong bearish momentum. Bullish pull-back towards higher price levels are needed.


Low-risk SELL entries can be taken around price level 1.2250 where a recent SUPPLY zone is located.


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Technical analysis of #USDX for January 7, 2015

The Dollar index remains in a strong uptrend heading towards 92 where the short-term bullish flag target is found. All charts are fully bullish and as I mentioned in previous posts, traders should not go against this strong trend.


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Price remains above the Tenkan-sen and Kijun-sen. The short-term bullish flag is still valid with a target above 92 and it looks like this target is going to be hit as well. The trend is clearly bullish in the 4 hour chart and bulls should not worry as long as price is above 90.


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The weekly chart remains fully bullish in ichimoku terms. The tenkan-sen weekly support is found at 89.70 and as long as the index is above that level, the longer-term trend will remain bullish. There is no sign of any downward reversal and I prefer to raise my stops and I will definitely not go against this trend.


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Technical analysis of gold for January 7, 2015

Gold price is in a short-term uptrend confirmed after breaking above $1,200-$1,205 resistance. The triangle scenario I posted in my analysis yesterday is the most probable outcome if gold manages to hold above $1,200.


Red line = resistance


Blue line = support


The blue short-term support trendline is broken. Price has moved below the Ichimoku cloud. This however is what happens in the 15 minute chart. Breaking below $1,200 will confirm the bearish signs of this chart. On the other hand, a break above $1,218 will be a bullish signal that could push gold price towards $1,240.


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In the daily chart, we see gold price above the Ichimoku cloud heading towards the upper triangle boundaries. I expect it to find resistance at $1,235-$1,240. A reversal from that level will strnegthen my triangle scenario. The trend is bullish in the daily chart but the corrective nature of the rise implies that this sideways move since middle October is correction before the longer-term down trend resumes.


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Technical analysis of EUR/JPY for January 07, 2015


Technical outlook and chart setups:


The EUR/JPY pair drops lower and tests 140.50 levels before pulling back sharply towards 141.50, as seen here. It is recommended to hold long positions taken earlier and also to look to add further. Risk remains around 139.50 levels for now. The pair could still drop lower and test the level of 140.00 before bouncing back and hence the risk should be below 140.00. Please also note that 140.00 is the fibonacci 0.618 support level for the rally from 134.00 levels to 149.80 respectively. Bulls are favored to come back sharply if prices reach that area. Resistance is seen at 145.00, followed by 147.00, 148.00 and higher.


Trading recommendations:


Remain long, add further positions around 140.00, stop at 139.50, target is open.


Good luck!


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Technical analysis of GBP/CHF for January 07, 2015


Technical outlook and chart setups:


The GBP/CHF pair has dropped further low to 1.5250 levels, which is the 50% retracement of the rally between 1.5000 and 1.5525 as seen here on the daily chart. It is still probable that the pair bounces back from here or from 1.5200 levels and pushes higher. So recommendations are to remain long and add further towards 1.5200 levels. Risk remains below 1.5150 levels. Please note that the current drop from 1.5520 levels would still be considered as a correction and a rally remains possible till prices stay above 1.5000.


Trading recommendations:


Remain long for now, move stop to 1.5140, add further positions if prices reach 1.5200, target is open.


Good luck!


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Technical analysis of gold for January 07, 2015


Technical outlook and chart setups:


Gold inched higher towards $1,223.00 levels as expected, before pulling back lower today. The metal is testing a resistance trendline at current levels, as seen on the daily chart here. At the moment, bulls are under control and it is recommended to hold long positions taken earlier. The metal could possibly retrace into $1,190.00/1,200.00 region before resuming the rally again. Immediate support is seen at $1,200.00, followed by $1,180.00/90.00, $1,170.00 and lower while resistance is seen at $1,238.00/40.00 (interim), followed by $1,240.00/50, $1,280.00 and higher respectively. Bulls are expected to remain in control as long as prices remain above $1,170.00 levels.


Trading recommendations:


Remain long for now, stop at $1,160.00, target is open.


Good luck!


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Elliott wave analysis of EUR/NZD for January 7, 2015

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Technical summary:


We have never been as close to resistance at 1.5532 as yesterday. Then the high became 1.5470 before the next sell-off took place. We have almost tested the 1.5205 target (1.5253 has been the low till now), but we expect resistance near 1.5353 for the next decline towards 1.5205. If this support is broken clearly to the downside, the next downside target will be 1.5066. In the longer term, we look for a move close to the August 2012 low at 1.4966.


Trading recommendation:


We are short EUR from 1.5620 and will move our stop lower to 1.5400. As we are getting close to a temporary bottom, more caution is needed, but a quick short near 1.5353 with a stop at 1.5400 and take profit at 1.5215 could still work.


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Elliott wave analysis of EUR/JPY for January 7, 2015

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Technical summary:


Wave C extended lower than expected and is currently close to the 61.8% corrective target. In the short term, we think that we will see a minor setback towards 142.24 before the final decline towards 140.12 and maybe even lower to 138.72 before correction from 149.78 is finally is over. A new rally to above 149.78 should be expected as well.


Trading recommendation:


Our stop at 141.50 was hit for a small loss. We will look for a new EUR buying opportunity near 140.12.


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Daily analysis of USDX for January 07, 2015

On the daily chart, the USDX continues to strengthen above the support level of 90.40. But today, we can see that this instrument could enter a phase of consolidation, so it is likely that the USDX will fall to the support level of 90.40 in the medium term to form a higher high pattern and gain momentum until the resistance level of 93.44.


Daily chart's resistance levels: 93.44 / 96.59


Daily chart's support levels: 90.40 / 88.63


USDXDaily.png

It seems that the USDX has managed to get out of the range set between the levels of 91.66 and 91.24. Now, this instrument could start to form a bullish pattern to reach the resistance level of 92.08. If the USDX manages to make a breakout at that level, it would be expected to rise to the level of 92.51 in the short term. The MACD indicator remains in positive territory.


H1 chart's resistance levels: 92.08 / 92.51


H1 chart's support levels: 91.66 / 91.24


USDXH1.png


Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the USD Index breaks with a bullish candlestick; the resistance level is at 92.08, take profit is at 92.51, and stop loss is at 91.66.


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Technical analysis of USD/JPY for January 07, 2015

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Fundamental overview:
USD/JPY is expected to consolidate with bearish bias after hitting three-week low 118.05 on Tuesday. It is undermined by the selling of yen crosses amid decreased risk appetite (VIX fear gauge rose 6.02% to 21.12, S&P 500 closed 0.89% lower at 2,002.61 overnight) as lingering eurozone worries, continued fall in oil prices to fresh five-and-a-half year lows and bigger-than-expected drop in U.S. ISM non-manufacturing PMI to 56.2 in December from 59.3 in November (versus forecast 58.0) stoked concerns over the global growth outlook. USD/JPY is also weighed by the lower U.S. Treasury yields (10-year at 1.949% versus 2.037% late Monday) and Japan exporter sales. But USD/JPY losses are tempered by the demand from Japan importers and Bank of Japan's large-scale monetary easing policy, broadly firmer dollar undertone (ICE spot dollar index hit nine-year high 91.808 Tuesday, last at 91.73 versus 91.36 early Tuesday) and smaller-than-expected 0.7% drop in U.S. November factory orders (versus forecast -0.8%).


Technical comment:
Daily chart is negative-biased as MACD and slow stochastic indicators bearish, five-day moving average is staged bearish crossover against 15-day moving average.


Trading recommendations:

The pair is trading below its pivot point. It is likely to trade in a lower range as far as it remains below the pivot point. Short positions are recommended with the first target at 118.5. A break of this target will move the pair further downward to 118. The pivot point stands at 119.50. In case the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, a long position is recommended with the first target at 119.95 and the second target at 120.3.


Resistance levels:

119.95

120.3

120.75



Support levels:

118.5

118

117.75


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Technical analysis of NZD/USD for January 07, 2015

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Fundamental overview:
NZD/USD is expected to consolidate with bullish bias after hitting three-day high 0.7809 on Tuesday. NZD sentiment is boosted by a 3.6% rise in Fonterra's GDT Price Index at latest GlobalDairyTrade auction. NZD/USD is also supported by the kiwi demand on soft AUD/NZD cross and NZD-USD interest differential. But NZD/USD gains are tempered by the broadly firmer dollar undertone and kiwi sales on soft NZD/JPY cross amid subdued investor risk appetite.


Technical comment:
Daily chart is mixed as five-day moving average is falling below 15-day moving average, but slow stochastic indicator is turning bullish.


Trading recommendations:
The pair is trading above its pivot point. It is likely to trade in a higher range as far as it remains above its pivot point. As long as the price is keeping above its pivot point, a long position is recommended with the first target at 0.7815 and the second target at 0.7850. In an alternative scenario, if the price moves below its pivot points, short posisitions are recommended with the first target at 0.7675. A break of this target would push the pair further downward and one may expect the second target at 0.7650. The pivot point is at 0.77.


Resistance levels:

0.7820

0.7850

0.7875



Support levels:


0.7675

0.7650

0.7615


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Technical analysis of GBP/JPY for January 07, 2015

GBPJPYM30.png


Fundamental overview:
GBP/JPY is expected to consolidate with bearish bias. GBP/JPY is undermined by the weak GBP sentiment, increased investor risk aversion and Japan exportsales. But GBP/JPY losses are tempered by the demand from Japan importers.


Technical comment:
Daily chart is negative-biased as MACD and slow stochastic indicators bearish, although latter at oversold levels; five- and 15-day moving averages declining.


Trading recommendations:
The pair is trading below its pivot point. It is likely to trade in a lower range as far as it remains below the pivot point. Short positions are recommended with the first target at 178.45. A break of this target will move the pair further downward to 177.10. The pivot point stands at 181.70. In case the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, a long position is recommended with the first target at 183.65 and the second target at 185.


Resistance levels:

183

185

185.70


Support levels:

178.45

177.10

176.65


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Technical analysis of USD/JPY for January 07, 2015

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In Asia, Japan will not release any economic data but the US will unveil its Crude Oil Inventories, Trade Balance, ADP Non-Farm Employment Change, and FOMC Meeting Minutes.


So there is a big probability USD/JPY will move with low volatility during the Asian session, but with low to medium volatility during the US session.


Today's technical levels:


Resistance. 3: 119.67.


Resistance. 2: 119.44.


Resistance. 1: 119.21.


Support. 1: 118.92.


Support. 2: 118.69.


Support. 3: 118.45.


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.


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Technical analysis of EUR/USD for January 07, 2015

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When the European market opens, some economic news will be released such as Italian Prelim CPI m/m, Unemployment Rate, Core CPI Flash Estimate y/y, CPI Flash Estimate y/y, Retail PMI, Italian Monthly Unemployment Rate, German Unemployment Change and Retail Sales m/m.The US will release its Crude Oil Inventories, Trade Balance, ADP Non-Farm Employment Change, FOMC Meeting Minutes. So amid the reports, EUR/USD will move low to medium volatility during this day.


Today's technical levels:


Breakout BUY Level: 1.1927.


Strong Resistance:1.1920.


Original Resistance: 1.1909.


Inner Sell Area: 1.1898.


Target Inner Area: 1.1870.


Inner Buy Area: 1.1842.


Original Support: 1.1831.


Strong Support: 1.1820.


Breakout SELL Level: 1.1813.


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.


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Daily analysis of major pairs for January 7, 2015

EUR/USD: The bias here is bullish and the price may go further downwards, reaching the support line at 1.1850. There is a recalcitrant resistance line at 1.2000, which could be a great hurdle to the bulls’ interests.


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USD/CHF: The USD/CHF is still a strong market and the price could still go further upwards. Bearish effort may allow the price to test the support level at 1.0000, which is now a strong barrier to the bears’ interests. Meanwhile, the price may end up reaching the resistance level at 1.0150.


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GBP/USD: Since the last week Friday, the cable has now fallen by over 400 pips, reaching the accumulation territory at 1.5150. This accumulation territory would easily be breached to the downside, as the price goes further downwards another accumulation territory at 1.5100.


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USD/JPY: This pair is also bearish in outlook – just like most other JPY pairs. The price is now trading below the EMA 56 and the RSI period 14 is below the level 50. This reality is also supported by the Bearish Confirmation Pattern in the chart and thus, the price could reach the demand level at 117.50, despite the fact that the USD is strong somewhere else.


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EUR/JPY: The strength in the yen is still very much pronounced as JPY pairs are now mostly bearish. The EUR/JPY has trended downwards by close to 300 pips in this week alone. Further southward movement is expected on this cross, for the price could break the demand zone at 141.00 to the downside, moving towards another demand zone at 140.00.


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Daily analysis of GBP/JPY for January 06, 2015

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Overview


In the 4H chart, today's closing below the resistance level of 181.00 gives the price an opportunity for a new bearish trend. As shown here, the price might reverse its last week's bullish trend to start a bearish move by breaking the support level of 180.00 and closing below it. In that case, we may get another opportunity for more sell signals, and it opens the way towards 179.30 as the first target. Then the price should test the support level to continue its bearish move. But as long as the price stabilizes above the support level of 180.00, it cancels the first scenario.


Resistance and support levels: R3 (182.50), R2 (181.70), R1 (181.00), S1 (180.00), S2 (179.30), S3 (178.50).


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USD/CAD intraday technical levels and trading recommendations for January 6, 2015

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Overview:


Three months ago, the price levels around 1.0620 (the lower limit of the depicted chart) initiated the current strong uptrend within the depicted daily channel.


During the past few weeks, the USD/CAD pair established a temporary consolidation zone between price levels of 1.1560 and 1.1670.


Bullish breakout above these zones allowed bulls to reach new highs around 1.1800 and 1.1830 where the upper limit of the bullish channel is roughly located.


The price zone of 1.1665-1.1580 remains the nearest SUPPORT zone for the current prices. LONG positions are suggested at retesting of this price zone.


Note the bearish rejection being expressed around 1.1840 where the upper limit of the depicted movement channel is located. An inverted hammer daily candlestick was expressed yesterday.


Trading recommendations:


As mentioned, risky traders should have looked for SHORT positions around price level of 1.1820. It's already running in profits now. The stop loss should be placed above 1.1850.


LONG positions are suggested at retesting of price zone of 1.1665-1.1580.


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GBP/USD intraday technical levels and trading recommendations for January 6, 2015

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Overview:


The GBP/USD pair has been moving downward respecting the depicted bearish channel since mid-September when the ongoing channel was initiated.


Recently, the market failed to express bullish breakout above the price level of 1.5760 (upper limit of the daily bearish channel).


Instead, extensive bearish breakout was applied against the price levels of 1.5540-1.5560 (this breakdown was successfully executed on December 23).


Daily closure below the recent bottoms established around 1.5540-1.5560 rendered the previous consolidation range as a bearish flag pattern with potential projected target at 1.5300.


The key level for today's movement is 1.5200. Persistent fixation below it signals more bearish dominance towards the lower limit of the movement channel around 1.5130 and probably 1.5100.


On the other hand, four-hour fixation above price level of 1.5200 pauses the current bearish decline exposing price level of 1.5260, 1.5370 and 1.5410.


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

Daily analysis of silver for January 06, 2015

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Overview


As shown in today's H4 chart, the metal failed to break the support level of 15.50 yesterday and has reversed its downward trend to trade below the resistance level of 16.50. Currently, it is bouncing from the support level and starting a bullish move. So we still suggest waiting for closing above the resistance level of 16.50 to give us a new opportunity for more buy signals with the first target few pips below the resistance level of 16.75. Then after breaking this resistance level, silver would open the way towards the resistance level of 17.00, which means more bullish signals. But as long as the metal trades below the resistance level of 16.50, this cancels the bullish scenario.


Resistance and support levels: R3 (17.00), R2 (16.75), R1 (16.50), S1 (16.00), S2 (15.50), S3(15.00)


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

Intraday technical levels and trading recommendations for EUR/USD for January 6, 2015

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Previously, DAILY closure below 1.2360 (the lower limit of the congestion zone) directly exposed price levels around 1.2250.


The EUR/USD pair continued to move lower after breaking below major DEMAND LEVEL at 1.2250 exposing price levels of 1.2120 and 1.2000 .


Fundamentally, the euro sentiment remained negative upon the prospect of more actions from the ECB in the coming weeks regarding QE.


Note that the market is currently pushing further below price level of 1.2000 (prominent psychological SUPPORT, also corresponding to the lower limit of the movement channel).


Price action should be watched carefully at the market closure for further decisions as the market currently looks oversold.


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As anticipated previously, an obvious 4H break below 1.2150 exposed the full-range breakout projection target around 1.2000.


Following such a strong bearish swing, the market should be looking for a considerable demand level to pause around.


The lower limit of the current movement channel has been breached after the bearish gap that occurred at the market opening this Monday.


Further price action should be considered as the current price levels haven't been visited since May 2010.


Trade recommendations :


Risky traders should now be looking for LONG positions around these historical low prices after such quick bearish decline that started around 1.2550.


However, conservative traders should be looking for SHORT positions in such strong bearish momentum. Bullish pull-back towards higher price levels are needed.


Low-risk SELL entries can be taken around price level 1.2250 where a recent SUPPLY zone is located.


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