GBP/USD intraday technical levels and trading recommendations for February 24, 2015

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Overview:


The daily closure below the recent bottoms located around 1.5540-1.5560 rendered the previous consolidation range as a bearish flag pattern with the projection target at 1.5300.


The market has already pushed further below reaching down to 1.5030-1.4980 where the lower limit of the channel provided support for the pair few weeks ago.


The H4 chart showed a transition phase into a sideway movement that has been maintained within the depicted price range.


On February 5, initial bullish breakout above 1.5220 took place. Shortly after, a new DAILY support was established around 1.5170-1.5200 (an ascending bottom, a sign of ongoing bullish momentum).


Since then, the GBP/USD pair has been trending upwards within the depicted H4 channel. Persistence of the pair above the recent DAILY support (the price zone of 1.5170-1.5200) applied extensive bullish pressure over the price level of 1.5360 (61.8% Fibonacci level on the H4 chart) which did not provide enough RESISTANCE.


The long-term projection target for the recent bullish breakout above 1.5220 is located around 1.5500-1.5550 where the previous DAILY bottoms are located (DAILY RESISTANCE).


On the other hand, note that any fixation below 1.5330-1.5300 (level of multiple bottoms) invalidates the previously mentioned bullish scenario exposing lower targets around 1.5180 for retesting.


Trading recommendations:


As long as bulls keep defending the recent SUPPORT around 1.5350, they should keep targeting at 1.5460 and 1.5580.


For traders who missed the initial breakout a valid buy entry can be taken at retesting of 1.5260 with SL located below the recent bottom around 1.5200.


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Intraday technical levels and trading recommendations for GBP/USD for February 24, 2015

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The previous consolidation movement extended between the price levels of 1.5600 and 1.5770. It represented a period of indecision on the market after such a long bearish rally that started off 1.7100 and 1.6500.


Bearish breakout below 1.5550 directly exposed lower targets. Bears have already pushed towards the price levels of 1.5050 and 1.4960, which have not been visited since July 2013.


Around the price levels of 1.5050 and 1.4960 the market has established another consolidation zone, which extended up to the price levels of 1.5280.


Two weeks ago, the ongoing bearish trend was invalidated when bullish breakout above 1.5200 took place.


Estimated projection targets are located around 1.5600-1.5640 where the previous consolidation zone was located.


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By the end of the last week, the GBP/USD pair has consolidated above the price zone of 1.5360 (61.8% Fibonacci level), which failed to provide enough RESISTANCE over the last bullish swing.


For the current bullish breakout to happen, bulls should keep defending the price zone of 1.5300-1.5330.


Estimated projection targets for the recent bullish breakout are roughly located around 1.5600-1.5640 where the upper limit of the depicted channel is located.


Conservative traders can wait for a low-risk SELL entry at retesting of 1.5600 (upper limit of the channel mentioned above). Stop Loss should be located above 1.5650.


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Intraday technical levels and trading recommendations for EUR/USD for February 24, 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.


The EUR/USD pair has lost almost 800 pips since the beginning of 2015. Moreover, theoretical long-term bearish targets would be located near 0.9450, especially after the FULL bearish MONTHLY below 1.2000 (January's monthly candlestick).


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Bearish breakout below 1.2000 and 1.1900 (prominent psychological SUPPORT) allowed a quick bearish decline towards 1.1100 to take place few days later.


Conservative traders were suggested to wait for a bullish pullback looking for better prices to SELL the EUR/USD pair off (R1 at 1.1550 and R2 at 1.1700). However, the EUR/USD bulls are not showing enough bullish momentum.


Instead, a bearish Flag pattern is being established on the daily chart. DAILY fixation below the price level of 1.1260 (recent bottom) confirms this bearish pattern.


Conservative traders can wait for a low-risk SELL entry at retesting of the price zone 1.1570-1.1590.


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The price zone of 1.1470-1.1490 is a recently established SUPPLY zone on the H4 chart (the upper limit of a newly-established consolidation zone).


Short-term SELL positions can be taken there. Stop loss should be placed slightly above the price level of 1.1530 (recent high).


On the other hand, risky traders can wait for DAILY closure below 1.1260 (recent DEMAND level). This will probably indicate a bearish visit towards the WEEKLY low around 1.1110.


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Intraday technical levels and trading recommendations for NZD/USD for February 24, 2015

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Few months ago, the NZD/USD pair established a consolidation zone that extended between the price levels of 1.7620 and 1.7870.


On January 20, bears managed to execute a successful breakout below the major DEMAND level at 1.7620.


Recently, the NZD/USD pair managed to break above 0.7430. This price level is expected to provide significant SUPPORT for the pair at retesting.


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The H4 chart showed an inverted Head and Shoulders pattern that originated off the price level of 0.7200 (the most recent low). Bullish fixation above the neck-line confirmed the reversal pattern earlier this week.


Estimated bullish projection target for the reversal pattern is located around the price level of 0.7676.


On the other hand, the price level of 0.7630 corresponds to the 61.8% Fibonacci Level as well as the lower limit of the broken consolidation zone depicted on the chart. Hence, price zone of 0.7630-0.7670 should be watched for price action as low-risk SELL entries can be taken at retesting. Stop Loss should be placed above 0.7700.


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Gold analysis for February 24, 2015

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Overview :


Since our last analysis gold has been trading sideways around the price of 1,200.00. The price has tested the level of 1,190.63 in an ultra high volume (selling climax) and after that we saw reaction from buyers. We are still waiting for larger activity on the market. Our Fibonacci retracement 61.8% at the price of 1,200.00 is critical for gold and it seems that price cannnot break that area. My advice is to watch for potential buying opportunities.We got resistance level around the price of 1,235.00.


Daily Fibonacci pivot points:


Resistance levels :


R1: 1,208.13


R2: 1,212.74


R3: 1,220.27


Support levels :


S1: 1,193.07


S2: 1,188.44


S3: 1,180.87


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




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EUR/NZD analysis for February 24, 2015

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Overview:


In our last analysis EUR/NZD was trading upwards. As we expected, the price has tested the level of 1.5210 in a high volume. Our Fibonacci retracement 61.8% at the price of 1.5020 has been held successful, what caused price to start with upward movement. The resistance level is at the price of 1.5200 (currently on the test), but if the price breaks the level of 1.5200 in a high volume and strong price action, we may see a potential testing the level of 1.5470. I have also placed Fibonacci expansion to find potential resistnace levels and have got Fibonacci expansion 61.8% at the price of 1.5575. My advice is to watch for potential buying opportunities on the lows.


Daily Fibonacci pivot levels:


Resistance levels:


R1: 1.5127


R2: 1.5158


R3: 1.5207


Support levels:


S1: 1.5029


S2: 1.4998


S3: 1.4949


Trading recommendations: Be careful when selling at this stage and watch for potential buying opportunities after retracement (buy on the dips).




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Technical analysis of AUD/USD for February 24, 2015

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Overview :



  • A confounding rise from the level of 0.7704 has extended further to as high as 0.7756 today. Moreover, it might be noticed that the price has placed above 00% of Fibonacci retracement levels and created a strong support at this spot (between the levels of 0.7650 and 0.7720). Thus, the market will form the first support at the price of 0.7720. Futhermore, this strong level has been still moving between 0.7720 and 0.7840 on the H4 chart. The level of 0.7840 is going to act as a new project in coming hours. Therefore, it is likely that the market will start showing the signs of bullish market again in order to indicate a bullish opportunity at the level of 0.7723 with the first target of 0.7783 and continues towards 0.7840.

  • Regardless of how, bulls were forced to pull back below the level of 0.7881, so this level will form a strong resistance in order to indicate a bearish opportunity below it. Accordingly, it will be a good sign to sell below the level of 0.7881 (38.2% of Fibonacci retracement level at the chart) with a target at 0.7786 and it might resume to 0.7780 (good place to take profit will be at 23.8% of Fibonacci).

  • Please, check the market volatility before investing, because the price may have already been reached and scenarios might have become invalidated.



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Technical analysis of EUR/JPY for February 24, 2015


Technical outlook and chart setups:


The EUR/JPY pair is poised to push through the levels of 137.50/138.00 after bouncing back from the levels of 134.00 on Friday. The pair is again trading around the levels of 135.20/30 at the moment and it is expected to rally higher. It is hence recommended to remain long with risk at 132.50 for now. Immediate support is seen at 134.00 followed by 132.30/50, 130.00 and lower, while resistance is seen at 137.50/60 followed by 138.00, 142.30 and higher, respectively. Bulls should remain in control until prices stay above the levels of 134.00.


Trading recommendations:


Remain long. Stop is at 132.50, target is 137.50/138.00.


Good luck!




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Technical analysis of NZD/USD for February 24, 2015

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Overview :



  • According to previous events, the NZD/USD pair is still moving between the levels of 0.7530 and 0.8433. So, a strong resistance level will be formed at the level of 0.7533 (this level coincides with the ratio of 50% Fibonacci retracement levels on the H4 chart) providing a clear signal for sell deals with the target seen at 0.7440 and 0.7403 in order to test the double bottom at the same time frame. However, stop-loss is to be placed above the double top at the level of 0.7566. On the other hand, a strong support level will be formed at the level of 0.7345 (this level coincides with the ratio of 23.6% Fibonacci retracement levels) providing a clear signal for buy deals with the target seen at the levels of 0.7455 and 0.7530 in order to test the daily pivot point and weekly resistance 1, respectively. Also, it should be noted if the trend breaks the daily pivot point (0.7455), it will continue towards the weekly resistance 1 at the price of 0.7530, which represents the strong resistance. Anyway, the stop loss should never exceed your maximum exposure amounts. Hence, it is to be placed below the double bottom at the price of 0.7314.



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Technical analysis of GBP/CHF for February 24, 2015


Technical outlook and chart setups:


The GBP/CHF pair dropped to the levels of 1.4400 on Friday as it was expected,but rallied back higher into the 1.4700 handle again yesterday. The pair remained shy of stops placed at the levels of 1.4730 and is seen to be trading at the levels of 1.4660/70 for now. GBP/CHF needs to break below 1.4400 to confirm that a top is in place and produce a deeper correction. It is recommended to hold short positions with risk at the levels of 1.4730. On the flip side, a push above 1.4720 would be further bullish and would test 1.5150. Immediate support is seen at the levels of 1.4400/10, while resistance is seen at 1.5150, respectively.


Trading recommendations:


Remain short, stop at 1.4730, target is open.


Good luck!




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#USDX technical analysis for February 24, 2015

The dollar index is close to breaking upwards and is exiting the triangle pattern. The longer-term trend remains bullish and my longer-term target remains at 100. I believe that breaking above 95 will be a good sign for bulls and the end of the consolidation period and the start of a new upward move.


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Green line = resistance


Blue line = support


The dollar index is still inside the big trading range but in the short-term we see signs of breaking above the Ichimoku cloud and making higher highs and higher lows in a sequence. Support is at 94.40 and resistance at 95.


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Black lines = triangle pattern


On a daily chart we observe the dollar index testing the upper triangle boundaries at 95. The price is above the tenkan-sen and kijun-sen ichimoku indicators. The price is also above the cloud support and a break above the triangle will be a bullish signal with a possible target of 97 for the short-term. My longer-term target remains at 100-101 where the monthly 61.8% retracement of the decline from 121 to 70 is found.


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Gold technical analysis for February 24, 2015

Gold price remains in bearish trend and is approaching an important longer-term support at $1,180. The weekly rejection at $1,300 puts bears in control of the trend and increase the chances of seeing gold price at new lows below $1,130 as long as we trade below $1,300.


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Gold price remains below the Ichimoku cloud on the 4 hour chart and also below the Ichimoku indicators of tenkan and kijun-sen. Short-term resistance is found at $1,209 and short-term support at $1,188. The trend is bearish and I still prefer selling every bounce as long as we trade below the cloud resistance.


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Red line = support


The weekly chart has given 2 signs of weakness and the price is now getting close to the important trend line support at $1,180. The bearish trend is strong and I expect this trend line to be broken. If this trend line is not broken, we could see a bounce towards the kijun-sen (yellow line) towards $1,220. On a weekly basis, this is a bearish chart and I expect the price to make new lows.


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Technical analysis of Silver for February 24, 2015.


Technical outlook and chart setups:


Silver bounced back from $16.05/10 yesterday and rallied through the levels of $16.60. The metal is trading at the levels of $16.30 for now, it is likely to push higher towards $16.80. Please, note that the metal has taken support at the Fibonacci 0.786 levels of the rally between $15.50 and $18.50, producing an engulfing bullish candlestick pattern. High probability remains that the metal has found bottom at the levels of $16.05 and is expected to resume its uptrend. Immediate support is seen at the levels of $15.50, while resistance is seen at the levels of $16.80 followed by $17.40/50 and higher, respectively. It is highly recommended to remain long, with risk below $15.50.


Trading recommendations:


Remain long for now, stop at $15.50, target is open.


Good luck!




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Technical analysis of USD/CAD for Febuary 24, 2015

General overview for 24/02/2015 09:20 CET


As for the yesterday's analysis, the market broke the golden trend line, then tested the intraday support and now it looks like it is heading for testing of the supply zone between the levels of 1.2658 - 1.2694. Any breakout higher above the level of 1.2694 is bullish and the idea of a complex corrective structure labeled as WXYXX will be invalidated and the alternate scenario would be in play then.


Support/Resistance:


1.2699 - WR2


1.2658 - 1.2694 - Supply Zone


1.2631 - WR1


1.2548 - Dynamic Golden Trend Line Resistance


1.2545 - Intraday Support


1.2496 - Weekly Pivot


Trading recommendations:


Buy orders advised yesterday should be still kept open, with SL below the level of 1.2545 and TP at the level of 1.2631 - 1.2658.


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Technical analysis of EUR/JPY for Febuary 24, 2015

General overview for 24/02/2015 09:05 CET


The pair is still trading inside the range zone between the levels of 133.55 - 135.88 and it looks like the wave b purple might have been completed. This means the market should try to break out above the intraday resistance at the level of 135.88 in impulsive fashion and head towards the projected target zone (orange rectangle). Only a sustained breakout below the intraday support at the level of 133.55 would invalidate this view.


Support/Resistance:


137.25 - 137.64 - Projected Target Zone


136.90 - WR1


135.88 - Intraday Resistance


135.21 - Weekly Pivot


134.43 - Intraday Support


134.21 - WS1


133.55 - Intraday Support


Trading recommendations:


The yesterday's advise is still valid: daytraders should consider opening buy orders only when the level of 135.88 is violated with relatively tight SL (20-30 pips) and TP at the level of 137.25 - 137.64. Please, notice that the wave b purple might get more complex and time consuming, so it is safer to wait for an impulsive breakout above the level of 135.88 to trade it.


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Technical analysis of Gold for February 24, 2015.


Technical outlook and chart setups:


Gold had dipped lower into the levels of $1,190.00 (this would still be considered as a test of the previous lows) yesterday before bouncing back sharply. The metal has produced an engulfing bullish candlestick pattern as seen on the H4 chart view here. Please, note that the structural uptrend remains intact until prices stay above the levels of $1,170.00. Also, a break above $1,225.00 would confirm that the metal has bottomed out and resumed the uptrend. Immediate resistance is seen at the levels of $1,223.00 followed by $1,235.00, $1,245.00 and higher, while support is seen at the levels of $1,170.00 followed by $1,030.00 and lower, respectively.


Trading recommendations:


Remain long and add further now, stop at $1,170.00, target is open.


Good luck!




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Technical analysis and trading recommendations on Gold for February 24, 2015

The yellow metal is hovering at a seven-week low at $1,200.00. Today, Greece has to submit a list of reforms to the Euro group. Gold is likely to remain under pressure. On Tuesday and Wednesday, the Federal Reserve Chair Yellen's speech is due. Investors focus is shifted to the Fed stance about the interest rate hike. Everyone is waiting for a hint, when the benchmark interest rates will be raised. Any hints of the optimism will push the metal prices to lower levels. At yesterday's session, the metal fell to $1,190.50, but managed to close above $1,200.00. The metal fell below $1,200.00 thrice and managed to close above it. It's a good sign. In India RBI lifted a ban on gold imports. Nominated banks get permission to import gold on a consignment basis. We expect the imports for February to increase by 40 odd tonnes. On a weekly closing basis, bulls must close above $1,217.00. The intraday support exists at $1,198.00. The weekly resistance is set between $1,217.00 and $1,223.00. Intraday resistance is at $1,211.00. We recommend fresh selling below $1,197.00 with the targets at $1,190.00, $1,185.00, and $1,180.00. A daily close below $1,185.00 leads to $1,170.00, $1,167.00, and $1,150.00.


Resistance: $1,205.00, $1,210.00, $1,217.00


Support: $1,197.00 $1,190.00, $1,185.00.


Selling below $1,197.00.


Buying above $1,205.00.


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Elliott wave analysis of EUR/NZD for February 24 - 2015

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Technical summary:


With the break above the resistance line from 1.5821, now we have two strong signals that the correction in wave (ii) is over and wave (iii) higher towards 1.6456 is unfolding. All we need now is a break above minor resistance at 1.5209 to confirm it. We saw a firm bottom at 1.4945 and a new impulsive rally higher to 1.5821 on the way higher towards 1.6456 is developing. In the short term, only a break below 1.5023 will be a cause for concern.


Trading recommendations:


We are long EUR from 1.5025 and will raise our stop to 1.5020. If you are long long EUR yet, the buy a break above 1.5209 with the same stop at 1.5020.


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Elliott wave analysis of EUR/JPY for February 24 - 2015

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Technical summary:


As long as support at 133.51 protects the downside, the upward correction from 130.14 could still move higher towards 137.65, but a break below 133.51 will indicate, that wave (iv) ended already at 136.69 and wave (v) lower towards 125.98 is developing. Short-term resistance is found at 1355.35 and again at 135.94 which needs to be broken to confirm one last rally higher towards 137.65.


Trading recommendations:


We are short EUR at 133.90 with stop placed at 136.00. If you are not short EUR yet, you should only sell upon a break below 133.51


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Technical analysis of EUR/USD for February 24, 2015

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When the European market opens, some economic news will be released such as Belgian NBB Business Climate, Final Core CPI y/y, Final CPI y/y, and German Final GDP q/q. The US will release a number of economic reports too such as the Richmond Manufacturing Index, Mortgage Delinquencies, CB Consumer Confidence, Flash Services PMI, and S&P/CS Composite-20 HPI y/y. So amid the reports, EUR/USD will move with low to medium volatility during this day.

TODAY TECHNICAL LEVELS:

Breakout BUY Level: 1.1393.

Strong Resistance:1.1386.

Original Resistance: 1.1375.

Inner Sell Area: 1.1364.

Target Inner Area: 1.1337.

Inner Buy Area: 1.1310.

Original Support: 1.1299.

Strong Support: 1.1288.

Breakout SELL Level: 1.1281.





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Technical analysis of USD/JPY for February 24, 2015

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In Asia, Japan will release the SPPI y/y. The US will release a number of economic reports such as Richmond Manufacturing Index, Mortgage Delinquencies, CB Consumer Confidence, Flash Services PMI, and S&P/CS Composite-20 HPI y/y. 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.

TODAY TECHNICAL LEVELS:

Resistance. 3: 119.65.

Resistance. 2: 119.42.

Resistance. 1: 119.18.

Support. 1: 118.90.

Support. 2: 118.67.

Support. 3: 118.43.





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Daily analysis of USDX for February 24, 2015

The range moves continues to dominate the daily chart in the USDX, as this instrument continues to stay above the key support level of 94.18. We could expect more rallies, but we should remain cautious, as the USDX is trying to reach the resistance level of 95.45 in the medium term. The 200 SMA is also bullish, but be aware of the current negative position of the MACD indicator.


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The bullish consolidation in the USDX on the H1 chart is now verified thanks to the strong rebound at the 200 SMA which the instrument did during Monday's session. Besides, the USDX performed a pullback at the resistance level of 94.87, but it still remains alive with the bullish bias, as the instrument could rise again to that zone in order to reach the next resistance level of 95.07.


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Daily chart's resistance levels: 95.45 / 96.96


Dailychart's support levels: 94.18 / 93.02


H1 chart's resistance levels: 94.87 / 95.07


H1 chart's support levels: 94.38 / 94.02




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 94.87, take profit is at 95.07, and stop loss is at 94.65.


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Daily analysis of GBP/USD for February 24, 2015

On the daily chart, we can see a bullish GBP/USD that is trying to break the resistance level of 1.5491, where it formed a fractal last week. For now, we're waiting for a solid bullish pattern formation in order to continue trading in the current bullish bias, which could get strength when it makes a breakout on the zone mentioned above.


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As we expected, the GBP/USD pair did a successful rebound at the 200 SMA on H1 chart. Now, the pair is forming a higher high pattern below the resistance zone of 1.5455, which is also a key level, because the GBP/USD pair already found strong sellers pressure on this territory last week. A breakout on that level will lead the GBP/USD pair to visit the 1.5516 level.


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Daily chart's resistance levels: 1.5491 / 1.5761


Dailychart's support levels: 1.5247 / 1.5025


H1 chart's resistance levels: 1.5455 / 1.5516


H1 chart's support levels: 1.5413 / 1.5378




Trading recommendations for today: Based on the H1 chart, place long (buy) orders only if the GBP/USD pair breaks a bullish candlestick; the resistance level is at 1.5455, take profit is at 1.5516, and stop loss is at 1.5394.


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Daily analysis of major pairs for February 24, 2015

EUR/USD: The outlook on this remains unchanged as there is not yet a clean directional movement. There is a support line at 1.1300 and a resistance line at 1.1450. It is either the price breaks the resistance line at 1.1450 to the upside or it breaks the support line at 1.1300 to the downside.


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USD/CHF: The USD/CHF pair moved upwards by 200 pips last week, topping at the resistance level of 0.9500. That resistance level was slashed upwards, but the price could not stay above it, as the price dived by 130 pips, closing below the resistance level at 0.9400. Another close below the support level at 0.9300 is possible this week.


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GBP/USD: In this market, the distribution territory at 1.5450 has already been challenged again and again. While the price may go as far as another distribution territory at 1.5500, it is more likely that the GBP may see limited bullish movement this week. A pullback is possible anytime this week.


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USD/JPY: The equilibrium phase of the USD/JPY pair has not ended, for the price has thus consolidated as a rise in momentum is awaited. A break to the upside is more likely this week or next week.


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EUR/JPY: This market is currently in an equilibrium phase and it would be OK to wait until there is a break below the demand zone at 134.00 or a break above the supply zone at 136.50. The latter action is more likely, because bulls are ready to fight against any southward plunge in the near-term.


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

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Overview:


The USD/CAD pair has been trending upwards within the bullish channel depicted on the WEEKLY chart.


The market looked overbought since bulls have pushed further above the upper limit of both depicted bullish channels as well as the 79.6% Fibonacci level. That is why a bearish correction that started off 1.2750 was anticipated in the previous articles.


The nearest SUPPORT level to meet the USD/CAD pair is located around 1.2300 (79.6% Fibonacci level).


Note that the USD/CAD bulls have been defending the recent INTRADAY SUPPORT around 1.2300 (broken 79.6% Fibonacci Level).


The market has not retested the newly-established DAILY SUPPORT around 1.2000 yet.


Note that successive lower highs are being established on the DAILY chart. Moreover, DAILY closure below the price level of 1.2300 exposes the next DAILY SUPPORT around 1.2000 where the backside of the upper limit of the breached channel is located.


On the other hand, the bullish persistence above 1.2300 (79.6% Fibonacci level) enhances further bullish advancement towards 1.2760-1.2780 without further retesting of 1.2000.


Trading recommendations:


Wait for DAILY closure below 1.2300 for SHORTING the USD/CAD pair. TP levels should be set at 1.2250 and 1.2190. Stop Loss should be set as DAILY closure again above the ENTRY levels (1.2300).


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

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Overview:


The daily closure below the recent bottoms located around 1.5540-1.5560 rendered the previous consolidation range as a bearish flag pattern with the projection target at 1.5300.


The market has already pushed further below reaching down to 1.5030-1.4980 where the lower limit of the channel provided support for the pair few weeks ago.


The H4 chart showed a transition phase into a sideway movement that has been maintained within the depicted price range.


On February 5, initial bullish breakout above 1.5220 took place. Shortly after, a new DAILY support was established around 1.5170-1.5200 (an ascending bottom, a sign of ongoing bullish momentum).


Since then, the GBP/USD pair has been trending upwards within the depicted H4 channel. Persistence of the pair above the recent DAILY support (the price zone of 1.5170-1.5200) applied extensive bullish pressure over the price level of 1.5360 (61.8% Fibonacci level on the H4 chart) which did not provide enough RESISTANCE.


The long-term projection target for the recent bullish breakout above 1.5220 is located around 1.5500-1.5550 where the previous DAILY bottoms are located (DAILY RESISTANCE).


On the other hand, note that a Head and Shoulders reversal pattern is being expressed on the H4 chart. Any fixation below 1.5330-1.5300 (neckline) invalidates the previously mentioned bullish scenario exposing lower targets around 1.5180 for retesting.


Trading recommendations:


As long as bulls keep defending the recent SUPPORT around 1.5350, they should keep targeting at 1.5460 and 1.5580.


For traders who missed the initial breakout, a valid buy entry can be taken at retesting of 1.5260 with SL located below the recent bottom around 1.5200.


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

Intraday technical levels and trading recommendations for NZD/USD for February 23, 2015

1424705327_nzddaily.png


Few months ago, the NZD/USD pair established a consolidation zone that extended between the price levels of 1.7620 and 1.7870.


On January 20, bears managed to execute a successful breakout below the major DEMAND level at 1.7620.


Shortly after, a bearish decline took place towards the price level of 0.7200 where bullish pressure has been applied during the past few weeks.


1424705515_nzdh4.png

The H4 chart shows an inverted Head and Shoulders pattern that originated off the price level of 0.7200. Estimated bullish projection target for the NZD/USD pair is located near the price level of 0.7676.


The price level of 0.7630 corresponds to the 61.8% Fibonacci Level as well as the lower limit of the broken consolidation zone depicted on the chart.


That is why the price zone of 0.7630-0.7670 is a significant SUPPLY ZONE to be watched for low-risk SELL entries. Stop Loss should be placed above 0.7700.


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