Technical analysis of Gold for January 23, 2015


Technical outlook and chart setups:


Gold has made another high at $1,308.00 levels and is seen trading below $1,300.00 mark for now. The metal might be preparing for a pullback lower towards $1,250.00 levels, as it was discussed yesterday. Immediate support is seen at $1,280.00, followed by $1,250.00/60.00, $1,230.00 and lower, while resistance is seen at $1,312.00, followed by $1,330.00/40 and higher respectively. As depicted here, the rally which begun from $1,170.00 levels is reaching its Fibonacci 1.618 extension levels at $1,312.00 for now. If Gold pushes further, it would challenge the $1,330.00/40 mark which is a major resistance. Either way a pullback could happen now or after hitting $1,340.00 levels. The metal is a clear buy on dips.


Trading recommendations:


Buy on dips for now.


Good luck!




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EUR/NZD analysis for January 23, 2014

EURNZDDaily23.pngEURNZDH423.png

Overview:


In our last analysis EUR/NZD was trading downwards. The price tested the level of 1.4887 in a high volume. According to the daily time frame, we can observe supply in a high volume. Our Fibonacci retracement 61.8% at the price of 1.5415 has beem held successfully which is a sign that buying looks risky. According to the 4H time frame, we can observe lack of supply at the price of 1.4887, so we may expect reaction from buyers. I have placed Fibonacci retracement and got Fibonacci retracement 38.2% at the price of 1.5095 and Fibonacci retracement 61.8% at the price of 1.5225.


Daily Fibonacci pivot levels:


Resistance levels:


R1: 1.5356


R2: 1.5437


R3: 1.5568


Support levels:


S1: 1.5094


S2: 1.5013


S3: 1.4882


Trading recommendations: Be careful when selling the EUR/NZD pair since we have strong supply in the background.


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Intraday technical levels and trading recommendations for EUR/USD for January 23, 2015

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The market has been pushing lower aggressively after breaking below the major DEMAND LEVELS around 1.2100 and 1.2000 where historical bottoms were previously established back in July 2012 and June 2010.


EUROZONE current account stepped down to €18.1 billion which is an eight-month low. This is strongly affecting the market leading to the current long-term negative sentiment of the EUR/USD pair. The market is recently challenging historical lows that were established back in 2005 and 2003.


The pair has lost almost 750 pips since the beginning of 2015 as the market is revisiting the lowest rates since November 2003.


After monthly breakout below 1.2000, approximate long-term projection targets would be located near 0.9450.


eurusddaily.png

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 after such steep decline. That is why conservative traders should wait for bullish pullback looking for better prices to SELL the pair off.


The price zone of 1.1540-1.1600 is a recently established SUPPLY zone. Short-term SELL positions can be taken there. Stop loss should be placed slightly above the price level of 1.1680.


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Intraday technical levels and trading recommendations for GBP/USD for January 23, 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 was manifested in the successive bullish hammer daily candlesticks.


The price level of 1.5100 has been defended by bulls since the start of 2015. However, a bearish engulfing daily candlestick was expressed yesterday off 1.5210. This applied extensive bearish pressure on the previous low around 1.5050 invalidating the double-bottom pattern mentioned yesterday.


1422014163_gbppppph4.png


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 levels of 1.5050 and 1.4960 recently.


Conservative traders should wait for a bullish pullback towards the recent SUPPLY zone around 1.5370-1.5450 for a low-risk SELL entry. The stop loss should be located above 1.5500 (upper limit of the channel).


For RISKY traders, a high-risk LONG entry can be taken around the price level of 1.4900 (where the lower limit of the depicted channel is located).


Stop Loss should be set as daily closure below entry levels (1.4900 - 1.4880).


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USD/CAD intraday technical levels and trading recommendations for January 23, 2015

caddaily.pngcadh4.png


Overview:


The USD/CAD pair established a temporary consolidation zone between the price levels of 1.1560 and 1.1670. This price zone roughly corresponds to 61.8% prominent WEEKLY Fibonacci level bullish breakout above which allowed bulls to establish a new consolidation zone between 1.2000-1.1930.


The prominent H4 support near the price zone of 1.1800-1.1750 provided excellent SUPPORT for the pair last Thursday. LONG positions were suggested at retesting.


Note the newly established short-term channel being expressed since the price level of 1.1750 reached up to 1.2080. The market looks quite overbought since bulls have pushed further above the upper limit of both depicted bullish channels. Hence, bulls should be conservative with their targets.


The nearest SUPPORT zone to meet the USD/CAD pair is located around 1.2015 - 1.1950 where a recent consolidation zone was established as well as the broken upper limit of the depicted channel that waits for retesting.


Otherwise, if bulls keep defending the recent INTRADAY SUPPORT around 1.2110, a new bullish swing may be established without further retesting of 1.1950.


Trading recommendations:


LONG positions should be anticipated around the new SUPPORT zone around 1.2015-1.1950. SL should be located below 1.1900. TP to be placed at 1.2100 and 1.2220.


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GBP/USD intraday technical levels and trading recommendations for January 23, 2015

1422012541_gbpdaily.pnggbpusdh4.png


Overview:


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 on the H4 chart off the price level of 1.5030. However, 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.


As anticipated, within such a strong bearish trend, the market failed 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 be anticipated towards 1.4930-1.4900 initially.


The key-support level for today's movement is located at 1.4970 (Thursday's low). Fixation above it probably enhances bullish side of the market towards 1.5150, 1.5260.


Trading recommendations:


The 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.


Suggested short position after the H4 closure below 1.5080 is running in profits now. SL should be advanced to 1.5050 to offside some of the risks. Final target can be set at 1.4950.


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Technical analysis of NZD/USD for January 23, 2015

nzdusdweekly.png

Overview :



  • The NZD/USD pair has set a strong support at the level of 0.7362 around the weekly double bottom. Also, be aware of the supports at 0.7430 and 0.7392. On the other hand, resistance has been already placed around the area of 0.7537, because minor resistance has been set at 0.7500; and the prices of 0.7530 and 0.7540 represent strong resistance. So, if the trend is of a downside character, the strength of the currency will be defined as following: NZD is in the downtrend and USD is in the uptrend. Therefore, sell below the level of 0.7537 which represents the weekly resistance with the first target at the 0.7430 price. Moreover, if the trend does not fail to close above the level of 0.7430, it will call for a downtrend to continue its bearish movement towards 0.7362 in order to test this strong resistance (it should be noted that the price of 0.7362 is going to form the weekly resistance and the double top at the same price). At the same time, the stop loss should be placed at the level of 0.7563.



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Technical analysis of GBP/USD for January 23, 2015

1422006019_gbpusdh1.png

Intraday overview :



  • According to the previous events, the GBP/USD pair will probably go down because the downward trend is still strong. Moreover, it should be noted that the price of GBP/USD has still been trapped between 1.5033 and 1.4959. The level of 1.5033 will indicate strong resistance (it represents the ratio of 23.6% Fibonacci retracement level on the H1 chart). Furthermore, the price will test the double bottom at this level of 00% Fibonacci retracement levels (1.4959). Therefore, it will be very gainful to sell at 1.5033 with the first target at 1.4959, then it will continue towards 1.4939 in order to test the last weekly support.



Intraday technical levels:

Date:23/01/2015

Pair:GBP/USD



  • R3: 1.5396

  • R2: 1.5304

  • R1: 1.5155

  • PP: 1.5063

  • S1: 1.4914

  • S2: 1.4822

  • S3: 1.4673



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Technical analysis of EUR/JPY for January 23, 2015

General overview for 22/01/2015 09:50 CET


Due to the breakout of level of 134.62 the main scenario has been invalidated and the alternative one is in play right now. There are two Elliott wave scenarios (main and alternative) available on weekly time frame charts:


-Main Scenario - Indicates a top for big wave 1 blue at the level of 145.72 and then complex corrective structure in wave A blue, then irregular flat corrective structure in wave B blue and now the last five wave impulsive decline in wave C blue that targets the level of 131.05.


-Alternative Scenario - This scenario indicates more downside wave progression after big wave 1 blue top at the level of 149.80. The corrective decline is sharp and sudden, so the zig-zag pattern is being expected here. This pattern has been partially done, but there is still plenty of room for the corrective cycle to the downside.


Please, notice that both of the scenarios still indicate that a bullish wave 3 blue will be developed when the corrective cycle in wave 2 blue is completed.


Support/Resistance:


149.80 - Swing High


140.19 - 50WMA


136.24 - 100WMA


131.05 - Projected Target Level


121.78 - 200WMA


119.13 - Extended Target Projection Level


Trading recommendations:


Swingtraders should now wait for the level of 131.05 to be tested and examine market behavior on that level before deciding to trade the wave B blue to the upside.


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Technical analysis of USD/CAD for January 23, 2015

General overview for 22/01/2015 09:40 CET


The last impulsive wave to the upside labeled as wave -v- blue might have been completed as an ending diagonal pattern. This would mean the market might now start a more deeper corrective cycle in the wave iv black before one more wave to the upside will be done. The key level for intraday traders is the intraday support at the level of 1.2310, and any breakout lower would mean the top for the wave iii black is in place and corrective cycle has started.


Support/Resistance:


1.2418 - Swing High


1.2342 - WR3


1.2310 - Intraday Support


1.2192 - WR2


Trading recommendations:


Daytraders and swingtraders should now close all buy positions that were still open and wait for corrective cycle to complete before opening another buy positions for last wave to the upside.


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#USDX technical analysis for January 23, 2015

Mario Draghi's announcement of the European version of Quantitative Easing gave a boost to the dollar as the euro weakend. The Dollar index has broken above the boundaries of the wedge formation pushing to new highs and towards our longer-term target of 94-95.


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The Dollar index broke above 93.30 and has made a high at 94.48. I have given the target area of 94.95 some time ago, and I continue to believe that this trend remains strong and bullish. Traders should not bet against it as it is very strong. The Dollar index has now support at 93 and short-term trend will change only if price breaks below 92.50.


usdxd.jpg

I post once again the monthly chart showing how the price exploded higher after breaking so easily above the 38% retracement. It is now moving towards 95-96 area where the 50% retracement is. With the dynamic of this trend, I will not be surprised to see the Dollar index even towards the 61.8% retracement. Trend is clearly bullish and very strong. There is no reason to go against it now.


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Gold technical analysis for January 23, 2015

Gold price pulled back yesterday towards $1,280 as expected and then reversed to new highs. Price is pulling back down, but as long as price is above $1,285-80, we should expect to see $1,330. Otherwise, the pullback could push price towards $1,260.


gold.jpg

Green line = support


Gold price is above the short-term Ichimoku cloud and above the short-term support of $1,285. Resistance is found at $1,310. At the current price levels we prefer to be bullish with $1,280 stop and add above $1,310 with $1,330 target.


goldd.jpg

Gold price remains inside an upward sloping channel as shown on the chart above. Losing the cloud support at $1,280-85 will push the price towards the lower channel boundary at $1,260-65. Breaking below this bullish channel could mean that a deeper correction has started with $1,200 possible target.




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Technical analysis of USD/JPY for January 23, 2015

USDJPYM30.png

Fundamental overview:
USD/JPY is expected to trade in a higher range. It is underpinned by the reduced safe-haven appeal of the yen as global risk sentiment improves (VIX fear gauge eased 13.0% to 16.4; S&P 500 rose 1.53% to close at 2,063.15 overnight) after the European Central Bank announced a larger-than-expected bond-buying program aimed at reviving the eurozone economy. USD/JPY is also supported by the higher U.S. Treasury yields (10-year at 1.885% versus 1.851% late Wednesday), the bullish dollar sentiment (ICE spot dollar index hit nine-year high 94.497 overnight, last at 94.21 versus 92.75 early Thursday) on divergent U.S. monetary policy stance versus other major central banks, demand from Japan's importers as well as Bank of Japan's large-scale monetary easing policy. But USD sentiment is dented by the more-than-expected 307,000 U.S. jobless claims in week ended Jan. 17 (versus forecast 300,000), bigger-than-expected drop in Kansas City Fed composite index to 3 in January from 8 in December (versus forecast 7). USD/JPY gains are also tempered by the Japan's export sales and positions adjustment ahead of the weekend.


Technical comment:
Daily chart is mixed as MACD is bearish, but stochastics is rising from 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 118.85 and the second target at 118.35. In an alternative scenario, if the price moves below its pivot points, short posisitions are recommended with the first target at 116.80. A break of this target would push the pair further downwards and one may expect the second target at 116.30. The pivot point is at 117.20.


Resistance levels:

118.85

119.35

119.75



Support levels:

16.80

16.30

116


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Technical analysis of USD/CHF for January 23, 2015

USDCHFM30.png

Fundamental overview:
USD/CHF is to trade in a higher range. It is underpinned by the positive dollar sentiment (ICE spot dollar index hit nine-year high 94.497 overnight, last at 94.21 versus 92.75 early Thursday) on divergent U.S. monetary policy stance versus other major central banks, negative Swiss interest rates, and threat of SNB CHF-selling intervention. But USD/CHF gains are tempered by the positions adjustment ahead of the weekend.


Technical comment:
Daily chart is mixed as MACD is in bearish mode, but stochastics is neutral, inside-day-range pattern was completed on Thursday.


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 0.8780 and the second target at 0.8840. In an alternative scenario, if the price moves below its pivot points, short posisitions are recommended with the first target at 0.8445. A break of this target would push the pair further downwards and one may expect the second target at 0.8360. The pivot point is at 0.8520.


Resistance levels:

0.8780

0.8840

0.8910


Support levels:

0.8445

0.8360

0.83


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Technical analysis of NZD/USD for January 23, 2015

NZDUSDM30.png

Fundamental overview:
NZD/USD is expected to consolidate with a bearish bias after hitting a two-and-a-half year low at 0.7476 on Thursday. It is undermined by the expectations that the Reserve Bank of New Zealand will leave rates on hold longer after soft New Zealand 4Q CPI and surprise interest rate cut by the Bank of Canada. NZD/USD is also weighed by the positive dollar sentiment and Kiwi sales on buoyant AUD/NZD cross. But NZD/USD losses are tempered by the positive global risk sentiment and positions adjustment ahead of the weekend. Daily chart is negative-biased as MACD and slow stochastic indicators are bearish, five and 15-day moving averages are declining.


Technical comment:

Daily chart is 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 0.7445. A break of this target will move the pair further downward to 0.74. The pivot point stands at 0.7625. 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 0.7710 and the second target at 0.7785.


Resistance levels:

0.7710

0.7785

0.7810

Support levels:


0.7445

0.74

0.7375


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Technical analysis of GBP/JPY for January 23, 2015

GBPJPYM30.png

Fundamental overview:
GBP/JPY is expectd to consolidate with a bearish bias. It is undermined by the negative euro sentiment after larger-than-expected ECB quantitative easing program and Japan's export sales. But GBP/JPY losses are tempered by the reduced safe-haven appeal of the yen amid the positive global risk sentiment and demand from Japan's importers and positions adjustment ahead of the weekend.


Technical comment:
Daily chart is negative-biased as bearish outside-day-range pattern was completed on Thursday, 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 176.45. The pivot point stands at 178.85. 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 179.45 and the second target at 180.20.


Resistance levels:

179.45

180.20

180.90


Support levels:

176.95

176.45

176


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Technical Analysis of USD/CAD for January 23, 2015

The US unemployment claims decreased by 10,000 to 307,000 in the week ended January 17. The USD soared to the highest level in six years against the CAD. Today, the focus has shifted to Canadian core CPI, core retail sales, US flash manufacturing PMI, and existing home sales. The pair made a high at 1.2420, the nearest resistance exists 1.2435 levels. We recommend fresh buying above 1.2440 for another 100 and 150 pips. The pair has intraday support exists at 1.2300 levels. In case if the pair corrects below 1.2300, the immediate supports exists at 1.2190 and 1.2100. Until the pair holds at 1.2100 traders, can use every dip to buy.


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Technical Analysis of GBP/USD for January 23, 2015

The confederation of British industry reported yesterday the UK factories expect their export orders on a weak note. On the other hand, the USD inches up to new highs after the ECB extends its QE. Today, the focus has shifted to the retail sales survey. We expect a downtick. The cable has strong support at 1.4800. The 20Dsma exists at 1.5231. Until the prices close above it, use every rise to sell. The pair has intraday resistance at 1.5040, 1.5075. and 1.5100. In case if the cable moves towards 1.5075, start selling between 1.5075 and 1.5100, sl to be set at 1.5140. We recommend safe selling below 1.5000 only with the targets at 1.4950 and 1.4800.


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Technical Analysis of Gold for January 23, 2015

The ECB latest announcement supported gold. The yellow metal attracts inflows followed after the larger than expected QE program from the ECB. The yellow metal has been extending its upward journey a third week in a row. Currently, gold is trading on a muted mode after the Saudi King Abdullah’s death. Besides, the HSBC China flash manufacturing PMI data was released. The data indicated ongoing slowdown in the manufacturing sector. Flash China Manufacturing PMI™ was at 49.8 in January (49.6 in December) hitting a 2-month high. Despite the fact that the metal breached Wednesday’s high at $1,304.70, it failed to keep above it at yesterday’s session. The metal gave an invested h&s breakout and is aiming for $1,340.00 odd levels in the near term. On the h4 chart, the metal closed and is trading below 35DEMA levels. The metal has support at $1,295.00 and $1,292.00. On the higher side, the resistance exists at $1,304.00 and $1,309.00. We can see fresh buying above $1,309.00 with the targets at $1,322.00, $1,324.00, $1,330.00, and $1,340.00. The metal has a strong support zone at $1,282.00 and $1,279.00. We recommend buying above $1,304.00; safe buying will trigger above $1,309.00.


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Technical Analysis of EUR/USD for January 23, 2015

The Euro stumbles to an 11-year low at 1.1317. Yesterday’s meeting ended up announcing the decision on purchases of bonds issued by euro area, central governments, agencies, and European institutions. Total monthly asset purchases are to amount to €60 billion. Purchases are scheduled to be carried out until at least September 2016. The pair has nominal support at 1.1300, below this another 100-pips fall can take place towards 1.1200 or 61.8 fib level from 2000 October lows to 2008 highs. In case if 1.1200 is also taken off straight away, we can see 1.1000 in the short to medium term. At yesterday’s meeting, the ECB Governing Council decided that the interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain unchanged at 0.05%, 0.30% and -0.20% respectively. On the other hand, the US unemployment claims decreased by 10,000 to 307,000 in the week ended January 17. In our yesterday’s report, we recommended selling below 1.1540 would give good money. The hourly resistance exists at 1.1400 and 1.1460. For purely speculation perspective, we can recommend a trade for buying above 1.1400 with the targets at 1.1450 and 1.1460. Today, traders are focused on French & German Flash manufacturing PMI .


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Elliott wave analysis of EUR/NZD for January 23 - 2015

2015-01-23-EURNZD-8H.png

Technical summary:


A high was found at 1.5437 just below the 50% corrective target at 1.5475. Now, we are ready for a test of important short-term support at 1.5064. A break below this support will confirm more downside towards 1.4881 and ideally lower to 1.4730 to end the decline from 1.6207. After a minor correction towards 1.5176, we expect support at 1.5064 to be challenged and a break below here will call for a continuation lower towards 1.4881 and ideally lower to 1.4730 to end this decline. Only a break above 1.5205 will be of concern, but it will take a break above 1.5330 to invalidate the bearish count.


Trading recommendation:


We are short EUR from 1.5145 and will lower tops to 1.5210 and place take profit at 1.4900.


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Elliott wave analysis of EUR/JPY for January 23 - 2015

2015-01-23-EURJPY-8H.png

Technical summary:


We are back at the "Make it or break it" point at 134.13 (the low till now has been 134.21). As long as we stay above support at 134.13, the bullish scenario is still the preferred count, but a break above minor resistance at 135.22 is needed to signal a bottom could be in place. To confirm that a bottom indeed is in place, a break above resistance at 137.01 is needed. If however, important support at 134.13 is broken, the the entire rally from 94.10 needs to be reviewed and a continuation lower towards 128.37 should be expected.


Trading recommendation:


We took a small loss at 136.20. We will buy EUR upon a break above 135.22 with a stop+reverse at 134.10


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Technical analysis of EUR/USD for January 23, 2015

!EURUSD.jpg

When the European market opens, a batch of economic reports will be released such as Belgian NBB Business Climate, Flash Services PMI, Flash Manufacturing PMI, German Flash Services PM, German Flash Manufacturing PMI, French Flash Services PMI, and French Flash Manufacturing PMI. The US will release some economic data too such as the CB Leading Index m/m, Existing Home Sales, and Flash Manufacturing PMI. So, amid the reports, EUR/USD will move with low to medium volatility during this day.


TODAY TECHNICAL LEVELS:


Breakout BUY Level: 1.1418.


Strong Resistance:1.1411.


Original Resistance: 1.1400.


Inner Sell Area: 1.1389.


Target Inner Area: 1.1362.


Inner Buy Area: 1.1335.


Original Support: 1.1324.


Strong Support: 1.1313.


Breakout SELL Level: 1.1306.


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 23, 2015

!USDJPY.jpg

In Asia, Japan will release the Flash Manufacturing PMI. The US will publish some economic data such as CB Leading Index m/m, Existing Home Sales, and Flash Manufacturing PMI. So, there is a big probability the USD/JPY pair will move with low volatility during the Asian session, but with low to medium volatility during the US session.


Resistance. 3: 118.97.


Resistance. 2: 118.74.


Resistance. 1: 118.50.


Support. 1: 118.22.


Support. 2: 117.99.


Support. 3: 117.75.


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 23, 2015

During the last session, the USDX had a strong bullish momentum above the support level of 93.02. Because of it, this instrument already reached the resistance level of 94.18. But we need to bear in mind that the USDX could start forming a higher high pattern. Because of the overbought levels, this instrument is currently holding on lower timeframes.


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On an intraday basis, the USDX formed a fractal next to the resistance level of 93.44, where this instrument is trying to move in a range to develop a bullish pattern. We can see the USDX did a rebound at the 200 SMA on H1 chart. Also, the price action showed us that the USDX has always tried to stay above that SMA during the last days, favoring the bulls' force.


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Daily chart's resistance levels: 94.18 / 97.52


Dailychart's support levels: 93.02 / 91.88


H1 chart's resistance levels: 94.33 / 95.63


H1 chart's support levels: 94.02 / 93.05




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 94.33, take profit is at 95.63, and stop loss is at 93.03.


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Daily analysis of GBP/USD for January 23, 2015

On the daily chart, we can see a dominant bearish trend on the GBP/USD pair, because during yesterday's session, this pair fell to the support zone of 1.5025. This could activate massive sell orders in the medium term, because the GBP/USD pair has already completed the formation of a lower low pattern. The MACD indicator is entering the neutral zone.


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The GBP/USD pair did a pullback at the 200 SMA on the H1 chart and the bearish bias is currently doing a clear domination of the pair's trend, at least in a short-term basis. The GBP/USD pair is trying to develop a bearish pattern above the psycological level of 1.5000, where this pair needs to do a breakout to fall until the support level of 1.4927, that could be a good trade because of the trend-following trading's motto.


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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: 1.5084 / 1.5128


H1 chart's support levels: 1.5000 / 1.4927




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 1.5000, take profit is at 1.4927, and stop loss is at 1.5073.


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Daily analysis of major pairs for January 23, 2015

EUR/USD: The EUR/USD pair slid further downwards on Thursday, in solidarity with the ongoing bearish bias. The price closed below the resistance line at 1.1400, having rendered the effort of bulls useless. There is a clear possibility that the price may go further downwards, increasing the probability of the EUR reaching parity with the USD.


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USD/CHF: The outlook on this special market remains unchanged. The outlook on this current abnormal market is bearish but the bullish correction is expected to continue gradually in spite of occasional large bearish corrections. Therefore, the USD/CHF pair would move upwards by at least, 500 pips this week. Some fundamental figures are expected today and they would have some impact on the markets.


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GBP/USD: One nice thing about the Cable is that it is now going in a clean positive correlation with the EUR/USD pair. The two pairs tend to go in positive correlation with each other – an established habit. On Thursday, the price dived towards the accumulation territory at 1.5000 and it may go further downwards from here.


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USD/JPY: Unlike certain JPY pairs, this currency trading instrument is trying to harness some stamina. It is sensed that the reason behind this is the stamina in the Greenback itself. It is no longer wise to seek short trades here, for the price is above the EMA 56 and the RSI period 14 is above the level 50, showing that the bias has turned bullish.


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EUR/JPY: This is a weak market as a result of the palpable weakness in the EUR. There is a very strong Bearish Confirmation Pattern on the chart and the price may fall further from here.


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