GBP/USD intraday technical levels and trading recommendations for January 20, 2015

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Overview:


The GBP/USD pair has been moving downwards respecting the depicted bearish channel since mid-September 2014 when the ongoing channel was initiated.


On December 17, the market failed to express a bullish breakout above the upper limit of the daily bearish channel. Shortly after, an extensive bearish pressure was applied against the price levels of 1.5540-1.5560 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 projection target at 1.5300.


The market has already pushed further below this level reaching down to 1.5030 where the lower limit of the channel provided significant support for the pair.


Bullish recovery was manifested by the ascending bottoms being established on the H4 chart. Since the pair hit the recent high around 1.5260, successive bearish pressure has been applied resulting in the flag pattern on the H4 chart.


The key-support level for today's movement is located at 1.5100 (the lower limit of the depicted flag pattern). Fixation above it enhances the bullish side of the market towards 1.5260 and 1.5380.


However, within such a strong bearish trend you should not exclude the other scenario that the market fails to fixate above 1.5200 (the upper limit of the flag pattern) followed by H4 breakdown below 1.5150 and 1.5100. If so, further bearish tendency on the market should not be excluded, probably, new lows below 1.5030 would be visited then.


Trading recommendations:


Price zone of 1.5350-1.5380 (50% - 61.8% Fibonacci Levels and the upper limit of the daily channel) should be watched for new SELL entries with SL as daily closure above 1.5400.


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Intraday technical levels and trading recommendations for GBP/USD for January 20, 2015

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Many previous lows were established around 1.5550 where the GBP/USD pair found temporary DEMAND in November 2014. A bearish breakout was expressed after many unsuccessful attempts back in 2014.


A bearish breakout scenario similar to what happened back in October was successfully executed shortly after.


The market has already pushed further below the price level of 1.5140 (projection target of the bearish breakout) reaching the lower limit of the depicted bearish channel around 1.5050.


The GBP/USD pair has shown bullish recovery off the price level of 1.5050 which is manifested in the successive bullish hammer daily candlesticks. This was enhanced by the positive UK Manufacturing production data that emerged last week.


The price level of 1.5100 has been defended by bulls since the start of 2015. A double-bottom reversal pattern is being established above it.


Bullish fixation above the price level of 1.5180 - 1.5230 (neck-line) confirms this pattern and enhances the current corrective movement towards 1.5400.


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Consolidation movement range 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 exposed lower targets directly. Bears have already reached the price level of 1.5050 that has not been hit since August 2013.


For RISKY traders, LONG entries were suggested around the price level of 1.5100. Stop Loss remains below the price level of 1.5075 (Tuesday's and recently Thursday's low). TP should be located at 1.5230, 1.5350 and 1.5400.


Conservative traders should wait for a bullish pullback 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.


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Technical analysis of Silver for January 20, 2015.


Technical outlook and chart setups:


Silver pushed further high to $18.00 levels today before pulling back. The metal has taken initial resistance already at $17.80 levels as discussed yesterday and hence a pullback can materialize. Hence it is recommended to book either full at least partial profits now ($17.80). Immediate support is seen at $16.75 levels, followed by $16.40/30, $15.50 and lower while resistance is seen at $18.30 levels, followed by $19.20 and higher respectively. Bulls are in complete control for now and any intraday dips should be considered as opportunities to go long.


Trading recommendations:


Fix partial/full profits for now and wait for a correction to go long again.


Good luck!


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Technical analysis of Gold for January 20, 2015


Technical outlook and chart setups:


Gold inched towards $,294.00 levels today before pulling back. Please, note that the metal is breaking out of the sloping resistance line at the moment. A complete bullish candle today would confirm the trend line break and continue pushing the metal higher towards $1,300.00/05.00 levels and higher. Immediate support is seen at $1,275.99/80.00 levels (trend line resistance turned into support), followed by $1,230.00/40.00, $1,205.00, $1,170.00 and lower, while resistance is seen at $1,300.00/05.00, followed by $1,320.00, $1,340.00 and higher respectively. It is recommended to remain long (if still holding positions) and also look for adding further on dips. Bulls seem to be in control for now and shall remain so untill prices stay above $1,170.00 mark.


Trading recommendations:


Remain long (if still holding) and look for buying further on dips. Target is at $1,305.00.


Good luck!




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Technical analysis of GBP/CHF for January 20, 2015.


Technical outlook and chart setups:


The GBP/CHF pair is consolidating within the range between 1.2600 and 1.3400 respectively. The hourly chart depicted here shows the cone shaped consolidation after bouncing off 1.2600 levels earlier. Immediate support is seen at 1.2900, followed by 1.2800, 1.2600 and lower while resistance is seen at 1.3400 levels followed by 1.3800 respectively. It is recommended to remain long from yesterday, risk remains at 1.2850 levels. After such a huge price action seen last week in a single trading session, such consolidation phase was expected and it could continue for a while before the pair breaks out.


Trading recommendations:


Remain long for now, stop at 1.2850, target is open.


Good luck!




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Gold analysis for January 20, 2014

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Overview :


Since our last analysis gold has been trading upwards. As we expected, the price has tested the level of 1,293.93 in a high volume. I have placed Fibonacci retracement to find potential resistance levels and got Fibonacci retracement 61.8% at the price of 1,292.00 (currently on the test). According to the H4 time frame, we can observe demand in a high volume, which is a sign that selling looks risky. Be careful when selling gold and watch for potential buying opportunities on the lows. If the price breaks the level of 1,292.00 in a high volume and strong price action, we may see potential testing of the level of 1,344.00 (swing high like resistance).


Daily pivot Fibonacci points:


R1: 1,278.64


R2: 1,280.30


R3: 1,282.97


Support levels :


S1: 1,273.30


S2: 1,271.64


S3: 1,268.97


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


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EUR/NZD : analysis for January 20, 2014

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Overview:


In our last analysis EUR/NZD was trading upwards. As we expected, the price tested the level of 1.5032 in a volume above the average. According to the daily time frame, we can observe strong supply in an ultra high volume (selling climax) in the background, so selling EUR/NZD at this stage looks very risky. Our Fibonacci expansion 161.8% at the price of 1.4900 was held successfully. Our resistance level around the price of 1.5050 is on the test. I have placed Fibonacci retracement from most recenet swings and got Fibonacci retracement 38.2% at the price of 1.4990 (already broken) and Fibonacci retracement 61.8% at the price of 1.5120. If the price breaks the level of 1.5050 in a stong price action, we may see a potential testing of the level of 1.5120.


Daily Fibonacci pivot levels:


Resistance levels:


R1: 1.4953


R2: 1.4988


R3: 1.5046


Support levels:


S1: 1.4837


S2: 1.4802


S3: 1.4744


Trading recommendations: Be careful when selling the EUR/NZD pair at this stage since the price is testing Fibonacci expansion 161.8%.


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Technical analysis of EUR/JPY for January 20, 2015


Technical outlook and chart setups:


It seems that the EUR/JPY pair has resumed its counter trend rally towards at least 140.30 levels from here on. The pair has rallied over 100 pips in today's trade and is approaching the 138.00 mark. Immediate support on the daily chart view depicted here is seen at 134.00 levels and lower while resistance is seen at 140.30 levels (Fibonacci ratio) and higher respectively. Bulls could remain in control at least untill 140.30 levels from here on. The bigger picture reveals that EUR/JPY might have begun a 3 wave corrective decline into the 115.00/116.00 levels and the current rally could be wave 2, within the 3 waves correction. Please, note that a push above 140.30 levels could extend further towards 143.50 and 144.00 levels, before reversing lower.


Trading recommendations:


Remain long for now, stop at 134.00, target at least 140.30.


Good luck!




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Technical analysis of USD/CAD for January 20, 2015

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Overview :



  • The support of the USD/CAD pair has been broken and turned into resistance at the same key level (1.2009), so the resistance has already been set at the price of 1.2009. The double top has resumed at the point of 1.2046 on the H1 chart. It is equally important that the trend saw a bearish market and the price is set below the resistance since the last week. Moreover, we expect a range of 62 pips today. As expected, the price is going to move between 1.2010 and 1.1926. It should be noted that the level of 1.1926 represents the 61.8% of Fibonacci retracement levels. Therefore, the USD/CAD pair started showing signs of bearish market from the level of 1.1160. Consequently, the market indicates the bearish opportunity at the level of 1.2010 with the first target of 1.1950 and continues towards the level of 1.1924. It should be also noted that the level of 1.1924 represents a strong support on January 20, 2015. Moreover, the same level is coinciding with the 61.8% Fibonacci retracement levels at the same time frame. Consequently, the pair is going to form a strong support at the 1.1924 price. On the other hand, the stop loss should always be taken into account, hence it will set your stop loss above the double top at the 1.2066 price.



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#USDX technical analysis for January 20, 2015

The Dollar index is moving higher but still inside the expanding triangle pattern. This upward move in prices is not very promising, and I feel that this rise is very fragile. Bulls should be very cautious. Trend remains bullish in the longer-term and the best strategy is to raise stops.


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Black lines = expanding triangle pattern


The expanding triangle pattern implies that we should expect Dollar weakness and a pullback towards 91.50 as long as the price remains below the upper triangle boundary. Resistance is at 92.90 and short-term support at 92.50. Breaking below 92.50 will be a sell signal with short-term target of 91.50.


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Black lines = price channel


The Dollar index remains inside the upward sloping trend channel. Ichimoku indicators remain fully bullish and with no signs of a possible reversal. The only worrying sign is the thin Ichimoku cloud. Important weekly support is found at 90. Breaking below that level will imply the end of this upward move from 79.75.


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Gold technical analysis for January 20, 2015

Gold price moved mainly sideways yesterday and did not push lower than $1,272. Today Gold price has made another breakout to new highs moving closer to our longer-term targets. Trend remains bullish. Short-term weakness will be signaled if we break yesterday's lows.


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Green line = horizontal trend line support


The Ichimoku cloud is below the current price, and all Ichimoku indicators remain fully bullish on the 4-hour chart as shown above. Trend is clearly bullish; and unless we see a break below $1,272, bulls should not be worried. If support at $1,272 is broken, we should expect Gold price to move towards the Ichimoku cloud at $1,230-35.


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Last week I pointed out two possible targets for Gold to move relative to the triangle base and the previous upward move from $1,130 to $1,240. The breakout above the triangle was a great buying signal, and, I believe, that there are good chances of reaching the target areas as shown on the daily chart above. Important daily support is now at $1,220-$1,230.


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Technical analysis of NZD/USD for January 20, 2015

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Overview :



  • The NZD/USD pair is going to continue rising upright from the price of 0.7710. Another support has already set at the level of 0.7669 which represents the double bottom on the H1 chart. On the other hand, the resistances will set at the levels of 0.7766 and 0.7790. It should be noted that 38.2% and 50% of Fibonacci retracement levels and the levels 0.7766 and 0.7790 are conforming the same prices respectively. Accordingly, the NZD/USD pair is showing signs of strength following the break of the highest level at 0.7713. So, it will be a good sign to buy above the level of 11% of Fibonacci retracement levels on the daily chart with the first target at 0.7766 and further at 0.7790 (it will act as a strong resistance). Thus, it is going to be a good place to take profit. Moreover, it should be also noted that this level of taking profit will coincide with the double top. However, in case reversal takes place and the NZD/USD pair breaks through the support level of 0.7710, the market will lead to further decline to 0.7657, in order to indicate a bearish market in the long-term.



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Technical analysis of USD/CAD for January 20, 2015

General overview for 20/01/2015 09:15 CET


Choppy and overlapping price action indicates that the triangle pattern is still possible and wave development should now continue slightly to the downside to make another intraday low. As long as the market trades inside the green bullish zone and above the intraday support at the level of 1.1802, the idea of a corrective cycle in shape of a triangle is still valid.


Support/Resistance:


1.1802 - Intraday Support


1.1853 - WS1


1.1949 - Weekly Pivot


1.1986 - Intraday Resistance


1.2045 - Intraday High


1.2097 - WR1


Trading recommendations:


As advised yesterday, daytraders and swingtraders should consider buying the dips in this corrective structure as long as the level of 1.1802 is not violated. SL should be placed below the level of 1.1799 and TP at the level of 1.2100 with a possible upside extension. Please, notice that the market is still trading around the weekly pivot level and volatility is rather low currently.


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Technical analysis of EUR/JPY for January 20, 2015

General overview for 20/01/2015 09:00 CET


The market moved slightly higher above the key level and weekly pivot at the level of 136.80 and now awaits news data to confirm the upward direction. The next level of resistance is the weekly pivot resistance at the level of 138.90. Any breakout above this level will result in entering bullish zone, and higher prices are expected on the market. Only a sustained breakout below the level of 134.73 would invalidate this outlook.


Support/Resistance:


134.74 - Intraday Support


136.80 - Weekly Pivot


137.02 - Intraday Resistance


138.90 - WR1


Trading recommendations:


As advised yesterday, daytraders and swingtraders should now keep buy orders open, with SL below the level of 134.72 and TP at the level of 138.90 with a possible upside extension.


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Elliott wave analysis of EUR/NZD for January 20 - 2015

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Technical summary:


Blue wave v only made it to 147.89 before bottoming out and ending red wave iii and setting the stage for a correction towards at least 1.5122 and likely even higher to 1.5329 before turning lower in red wave v. In the short term, we expect support at 1.4885 will be able to protect the downside for the rally towards 1.5122 and possibly higher towards 1.5329. Only a direct break below 1.4885 will call for a new test of 147.89.


Trading recommendation:


We took profit and reversed our EUR-short position at 1.4855 for a very nice profit. We will place our stop at 1.4880 on our long EUR position from 1.4855.


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Elliott wave analysis of EUR/JPY for January 20 - 2015

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Technical summary:


Important support at 134.13 was not even close to being tested as the low was hit at 134.71. The following break above minor resistance at 136.87 indicates that at least a temporary bottom is in place. To confirm that an important bottom is in place, a break above resistance at 138.79 is still needed. We will be looking for support at 136.73 to protect the downside for a continuation higher towards 137.34 from where a shallow correction is expected and then higher towards 138.09. Only a direct break below 135.95 will be of concern, but it will take a break below 135.13 to indicate a test of important support at 134.13.


Trading recommendation:


We are long in EUR from 136.88 and will move our stop higher to 135.10.


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Technical analysis of EUR/USD for January 20, 2015

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When the European market opens, some economic news will be released such as ZEW Economic Sentiment, German ZEW Economic Sentiment, Italian Trade Balance, and German PPI m/m. The US will publish the economic data too such as the NAHB Housing Market Index. So, amid the reports, EUR/USD will move with low to medium volatility during this day.


TODAY TECHNICAL LEVELS:


Breakout BUY Level: 1.1639.


Strong Resistance:1.1632.


Original Resistance: 1.1621.


Inner Sell Area: 1.1610.


Target Inner Area: 1.1583.


Inner Buy Area: 1.1556.


Original Support: 1.1545.


Strong Support: 1.1534.


Breakout SELL Level: 1.1527.


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 USD/JPY for January 20, 2015

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Today, Japan will not release any economic data, but the US is expected some economic data such as NAHB Housing Market Index. So, there is a big probability the USD/JPY pair will move with low to medium volatility during the day.


TODAY TECHNICAL LEVELS:


Resistance. 3: 118.76.


Resistance. 2: 118.53.


Resistance. 1: 118.30.


Support. 1: 118.01.


Support. 2: 117.77.


Support. 3: 117.54.


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 USDX for January 20, 2015

The USDX is still following the bullish bias in the long term, because this instrument was forming a higher high pattern above the support level of 91.88 and during the last days, the bullish momentum has unleashed the buy orders at the USDX, giving it a good road to perform a consolidation above the resistance level of 93.02 in the near term. The MACD indicator is trying to enter the negative territory.


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For a good intraday oulook on the USDX, we need to pay atrention to the bullish trend line that has been drawn from the January 15's low, giving strong support to the USDX at the moment on H1 chart. The 200 SMA is bullish, and bulls could be strong during this week, if the USDX performs a breakout at the resistance level of 92.88 with the formation of some bullish pattern.


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Daily chart's resistance levels: 93.02 / 94.18


Dailychart's support levels: 91.88 / 90.28


H1 chart's resistance levels: 92.88 / 93.22


H1 chart's support levels: 93.55 / 92.05


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 92.88, take profit is at 93.22, and stop loss is at 92.55.


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Daily analysis of GBP/USD for January 20, 2015

The 200 SMA on the daily chart is still pointing downwards in our medium term outlook for the GBP/USD pair. During the last session, this pair continues moving in favor of the bearish bias, because its next targets still remain at the support level of 1.5025. Furthermore, the GBP/USD pair could make a rebound above that support and again, rise until the resistance level of 1.5247, because the GBP/USD pair is still looking for more falls in order to look for touching the level of 1.4821 in the medium term.


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On a short-term basis, we can see on the H1 chart that the GBP/USD pair found a supply force at the resistance level of 1.5169, and a confirmation of that is the formation of one fractal at yesterday's high levels. Anyway, the GBP/USD pair is still bearish in the short term with a target placed at the support level of 1.5084, where this pair has to perform a breakout to continue falling until the 1.5034 level, a good trade for scalpers.


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Daily chart's resistance levels: 1.5247 / 1.5424


Dailychart's support levels: 1.5025 / 1.4821


H1 chart's resistance levels: 1.5169 / 1.5251


H1 chart's support levels: 1.5084 / 1.5034




Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the GBP/USD pair breaks a bearish candlestick; the support level is at 1.5084, take profit is at 1.5034, and stop loss is at 1.5134.


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Daily analysis of major pairs for January 20, 2015

EUR/USD: This pair has moved upward so far this week – a movement of over 90 pips. This, however, should be seen as a short-selling opportunity in the near-term, since the overall bias is currently bearish. The support line at 1.1550 could be tested, even if there would be a rally following that.


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USD/CHF: When the USD/CHF pair dropped like a stone last week, the EUR/USD pair ought to spike skywards, since they are negatively correlated in a normal condition. The latter was not affected, and both pairs cannot remain bearish for a long time (and the USD is strong in its own right). USD/CHF would, therefore, move upwards by at least, 500 pips this week.


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GBP/USD: This currency trading instrument is also bearish in outlook and it has more potential to move further downwards, especially when compared to the USD. The accumulation territory at 1.5050 could thus be challenged this week.


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USD/JPY: Persistent bullish effort in this market has made bearish outlook to be precarious. The bullish effort that started last Friday and it is still ongoing. A movement above the supply level at 118.50 would mean the end of the bearish outlook and the beginning a renewed bullish outlook.


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EUR/JPY: The EUR/JPY cross is now experiencing a bullish correction, although the dominant bias is bearish. The demand zone at 134.50 is now a great challenge to bears, and there is a probability of things turning bullish in the event that the price goes upwards relentlessly.


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Technical analysis of USD/JPY for January 19, 2015

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Fundamental overview:
USD/JPY is expected to trade in a higher range. Liquidity was thin later in global day as financial markets in the U.S. were shut for a public holiday. USD/JPY is underpinned by the yen-funded carry trades amid improved investor risk sentiment (VIX fear gauge eased 6.43% to 20.95; S&P 500 closed up 1.34% at 2,019.42 Friday) on stronger-than-expected rise in University of Michigan preliminary consumer sentiment index to decade-high 98.2 in January from final December reading of 93.6 (versus forecast 94.4), while a 0.8% on-year rise in U.S. December CPI for slowest annual rise since October 2009 stoke expectations that the Federal Reserve could delay raising interest rates. USD/JPY is also supported by the positive dollar sentiment (ICE spot dollar index rose to 11-year high 93.262 Friday, last 92.65 versus 92.18 early Friday) as above-forecast U.S. consumer sentiment outweighs unexpected 0.1% on-month decline in U.S. December industrial production (versus forecast for no change) and lower-than-expected 79.7% U.S. December capacity utilization (versus forecast 79.9%), higher U.S. Treasury yields (10-year at 1.815% versus 1.775% late Thursday), demand from Japan's importers and Bank of Japan's large-scale monetary easing policy. But USD/JPY gains are tempered by Japan's export sales.


Technical comment:
Daily chart is mixed as MACD is bearish, five- and 15-day moving averages are declining but bullish-piercing candlestick pattern completed on Friday, stochastics is turned bullish at oversold levels.


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 0.7825117.95 and the second target at 118.50. In an alternative scenario, if the price moves below its pivot points, short posisitions are recommended with the first target at 116. A break of this target would push the pair further downwards and one may expect the second target at 115.50. The pivot point is at 116.80.


Resistance levels:

117.95

118.50

119



Support levels:

116

115.50

115


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Technical analysis of USD/CHF for January 19, 2015

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Fundamental overview:
USD/CHF is expected to trade in a range. Liquidity remains thin after Swiss National Bank on Thursday unexpectedly abandoned the CHF 1.20 per euro peg and lowered the interest rate on sight deposit account balances by 0.5 percentage point to 0.75%. USD/CHF is undermined by the franc demand on cross trades versus major currencies. But USD/CHF downside is supported by the USD bargain hunting, the positive dollar sentiment, negative Swiss interest rates and threat of SNB FX intervention.


Technical comment:
Daily chart is still negative-biased as MACD and slow stochastic indicators are bearish, five- and 15-day moving averages are 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 0.8345. A break of this target will move the pair further downward to 0.8000. The pivot point stands at 0.91505. 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 0.9550 and the second target at 0.9780.


Resistance levels:

0.9550

0.9780

0.9810


Support levels:

0.8345

0.8

0.7915


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Technical analysis of NZD/USD for January 19, 2015

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Fundamental overview:
NZD/USD is expected to trade in a range. It is supported by the Kiwi demand on buoyant NZD/JPY cross amid the positive risk sentiment and firmer commodity prices. But NZD/USD upside is limited by the positive dollar sentiment (VIX fear gauge eased 6.43% to 20.95; S&P 500 closed up 1.34% at 2,019.42 Friday) on stronger-than-expected rise in University of Michigan preliminary consumer sentiment index to decade-high 98.2 in January from final December reading of 93.6 (versus forecast 94.4), while a 0.8% on-year rise in U.S. December CPI for the slowest annual rise since October 2009 stoke expectations that the Federal Reserve could delay raising interest rates and Kiwi sales on buoyant AUD/NZD cross.


Technical comment:

Daily chart is mixed as MACD and stochastics are in a bullish mode, but five- and 15-day moving averages are meandering sideways, the inside-day-range pattern was completed on Friday.


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 0.7825 and the second target at 0.7865. In an alternative scenario, if the price moves below its pivot points, short posisitions are recommended with the first target at 0.7720. A break of this target would push the pair further downwards and one may expect the second target at 0.7690. The pivot point is at 0.7755.


Resistance levels:

0.7825

0.7865

0.79



Support levels:


0.7720

0.7690

0.7650


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Technical analysis of GBP/JPY for January 19, 2015

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Fundamental overview:
GBP/JPY is expected to consolidate in a higher range. It is supported by the increased investor risk appetite and demand from Japan's importers. But GBP/JPY gains are tempered by the weak euro sentiment and Japan's export sales.


Technical comment:
Daily chart is still negative-biased as MACD is bearish, stochastics stays suppressed at oversold levels, five- and 15-day moving averages are 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 176.95. A break of this target will move the pair further downward to 176. The pivot point stands at 178.40. 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 179.60 and the second target at 180.10.


Resistance levels:

179.60

180.10

181


Support levels:

176.95

176

175.15


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

Intraday technical levels and trading recommendations for EUR/USD for January 19, 2015

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The market has been pushing lower aggressively after breaking below major DEMAND LEVELS around 1.2000 and 1.1860 where historical bottoms were previously established back in 2012 and 2010.


Further actions from the ECB regarding QE are still doubted due to the ECB’s policy meeting on January 22. EUROZONE current account stepped down to €18.1 billion which is eight-month low.


All of this is strongly affecting the market leading to the current long-term negative sentiment of the EUR/USD pair. Moreover, today, the U.S. markets are closed for celebration of Luther King Day.


The pair has lost almost 490 pips since the beginning of 2015, as the market has revisited the lowest rates since November 2003.


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The market currently looks oversold below the price level of 1.2000 and 1.1900 (prominent psychological SUPPORT and the lower limit of the movement channel on the H4 chart).


Currently, SELLING the EUR/USD pair should be avoided as much as possible at such historically low prices.


On the other hand, BUYING the pair is considered a low-risk opportunity but with low probability after such strong bearish trend. That is why bullish pullback should be anticipated looking for better prices to sell the pair off.


The price zone of 1.1750-1.1820 is the recently established SUPPLY zone. Short-term SELL positions can be taken there. Stop loss should be placed above the price level of 1.1880.


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

Intraday technical levels and trading recommendations for GBP/USD for January 19, 2015

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Many previous lows were established around 1.5550 where the GBP/USD pair found temporary DEMAND in November 2014. A bearish breakout was expressed after many unsuccessful attempts back in 2014.


A bearish breakout scenario similar to what happened back in October was successfully executed shortly after. The final bearish target was expected to be around the price level of 1.5140.


The market has already pushed further below this level on Friday reaching the lower limit of the depicted bearish channel around 1.5050.


The GBP/USD pair has shown bullish recovery off the price level of 1.5050 which is manifested in the successive bullish hammer daily candlesticks. This was enhanced by the positive UK Manufacturing production data that emerged last week.


The price level of 1.5100 has been defended by bulls since the start of 2015. Bullish fixation above 1.5130-1.5180 is mandatory to maintain the current corrective movement towards 1.5400.


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Consolidation movement range 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 exposed lower targets directly. Bears have already reached the price level of 1.5050 that has not been hit since August 2013.


For RISKY traders, LONG entries were suggested around the price level of 1.5100. Stop Loss remains below the price level of 1.5075 (Tuesday's and recently Thursday's low).


Conservative traders should wait for a bullish pullback 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.


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

GBP/USD intraday technical levels and trading recommendations for January 19, 2015

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Overview:


The GBP/USD pair has been moving downwards respecting the depicted bearish channel since mid-September 2014 when the ongoing channel was initiated.


On December 17, the market failed to express a bullish breakout above the upper limit of the daily bearish channel. Shortly after, an extensive bearish pressure was applied against the price levels of 1.5540-1.5560 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 projection target at 1.5300.


The market has already pushed further below this level reaching down to 1.5030 where the lower limit of the channel provided significant support for the pair.


Bullish recovery was manifested by the ascending bottoms being established on the H4 chart. Since the pair hit the recent high around 1.5260, successive bearish pressure has been applied resulting in the flag pattern on the H4 chart.


The key-support zone for today's movement is located at 1.5100-1.5160 (the lower limit of the short-term flag pattern). Fixation above it enhances the bullish side of the market towards 1.5260 and 1.5380.


However, within such strong bearish trend you should not exclude the other scenario that the H4 fixation below 1.5150 and 1.5100 indicates further bearish tendency on the market, probably, new lows below 1.5030 are going to be hit.


Trading recommendations:


Price zone of 1.5350-1.5380 (50% - 61.8% Fibonacci Levels and the upper limit of the daily channel) should be watched for new SELL entries with SL as daily closure above 1.5400.


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