USD/CAD intraday technical levels and trading recommendations for June 2, 2015

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Overview:

Since bulls pushed the price further above the upper limit of both depicted bullish channels and the 79.6% Fibonacci level, the market looked quite overbought. That is why the price failed to hold above 1.2650 - 1.2680 (previous highs) resulting in the formation of a Triple-top pattern.

Successive lower highs were established within the depicted consolidation zone enhancing the bearish side of the market.

Support levels around 1.2350 and 1.2300 (79.6% Fibonacci level) were broken after providing significant support for several weeks on the daily and weekly charts.

A daily fixation below 1.2300 cleared the way for the USD/CAD pair towards the levels of 1.2000 and 1.1940 (the depicted weekly uptrend).

That is why significant bullish support was offered around these price levels. Since then, a bullish pullback has been taking place.

On the other hand, the price zone of 1.2430-1.2500 constitutes a significant resistance zone now despite being breached after the opening bell.

Only a bearish candle closure below 1.2430 is needed to enhance further bearish advancement. This may offer a low-risk sell position with good potential targets.

Trading recommendations:

Risky traders can take a sell entry anywhere around 1.2400-1.2450. Conservative traders should wait for a daily closure below 1.2420 as a sell signal.

T/P levels should be placed at 1.2220, 1.2100 and 1.1950 while S/L should set as a weekly candlestick closure above 1.2460.

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Technical analysis of USD/JPY for June 02, 2015

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Fundamental overview:

USD/JPY is expected to consolidate with bullish bias after hitting a 12.5-year high of 124.92 on Monday. It is underpinned by the improved dollar sentiment (ICE spot dollar index last 97.42 versus 96.99 early Monday) after the data released on stronger-than-expected US May ISM manufacturing PMI of 52.8 (versus forecast 51.8) and larger-than-expected 2.2% on-month increase in the US April construction spending (versus forecast +0.9%). USD/JPY is also supported by the higher US Treasury yields (10-year rose 8.7 bps to 2.182% overnight), improved investor risk appetite (S&P 500 closed 0.21% higher at 2,111.73 Monday), demand from Japan's importers, and the Bank of Japan's ultra-loose monetary policy. But the USD sentiment is dented by the weaker-than-expected US April personal spending (came in flat on-month versus forecast for +0.2% on-month), softer-than-expected US April core PCE price index of +0.1% on-month (versus forecast +0.2%). USD/JPY gains are also tempered by the Japanese exports.

Technical comment: The daily chart is positive-biased as the MACD is bullish; stochastics stays elevated at overbought levels; 5 and 15-day moving averages are advancing.

Trading recommendations:

The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. As long as the price holds above its pivot point, long positions are recommended with the first target at 124.80 and the second target at 125.25. In the alternative scenario, short positions are recommended with the first target at 122.85 if the price moves below its pivot points. A break of this target is likely to push the pair further downwards, and one may expect the second target at 122.45. The pivot point is at 123.60.

Resistance levels: 124.80 125.25 125.75

Support levels: 122.85 122.45 121.70

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Technical analysis of USD/CHF for June 02, 2015

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Fundamental overview:

USD/CHF is expected to trade with bearish bias. It is underpinned by the improved dollar sentiment, the negative Swiss interest rates, and the threat of the Swiss National Bank to carry out CHF-selling intervention. But the Swissie sentiment is soothed by the stronger-than-expected Swiss May PMI of 49.4 (versus forecast 48.1). USD/CHF gains are also tempered by the franc demand on the buoyant CHF/JPY cross.

Technical comment:

The daily chart is mixed as the MACD is bullish, but stochastics is bearish at overbought levels.

Trading recommendations:

The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 0.9290. A break of that target will move the pair further downwards to 0.9250. The pivot point stands at 0.9385. 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, long positions are recommended with the first target at 0.9455 and the second target at 0.95.

Resistance levels: 0.9455 0.9500 0.9550

Support levels: 0.9290 0.9250 0.92

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Technical analysis of NZD/USD for June 01, 2015

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Fundamental overview:

NZD/USD is expected to consolidate with bearish bias after hitting a 4.5-year low of 0.7065 on Monday. NZD/USD is undermined by the improved dollar sentiment and speculation that the Reserve Bank of New Zealand would cut interest rates in the coming months. But NZD/USD losses are tempered by the improved investor risk appetite, NZD-USD interest differential, and kiwi demand on the retreating AUD/NZD cross.

Technical comment:

The daily chart is negative-biased as the MACD is bearish, stochastics stays suppressed at oversold levels, 5 and 15-day moving averages are falling.

Trading recommendations:

The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. As long as the price holds above its pivot point, long positions are recommended with the first target at 0.7210 and the second target at 0.7270. In the alternative scenario, short positions are recommended with the first target at 0.7050 if the price moves below its pivot points. A break of this target is likely to push the pair further downwards, and one may expect the second target at 0.7030. The pivot point is at 0.7095.

Resistance levels: 0.7210 0.7270 0.73

Support levels: 0.7050 0.7030 0.7

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Technical analysis of GBP/JPY for June 02, 2015

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Fundamental outlook: GBP/JPY is expected to consolidate with bullish bias after hitting a two-week high of 136.47 on Friday. It is underpinned by demand from Japanese importers. Upside, GBP/JPY is limited by diminished investor risk appetite and Japan's exports.

Technical comment: The daily chart is positive-biased as bullish outside-day-range pattern was completed on Monday. Stochastic is bullish, the MACD histogram bars are turning positive, and five-day moving average is above 15-day moving average and is advancing.

Trading recommendations:

The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. As long as the price holds above its pivot point, long positions are recommended with the first target at 190.60 and the second target at 191.20. In the alternative scenario, short positions are recommended with the first target at 188.60 if the price moves below its pivot points. A break of this target is likely to push the pair further downwards, and one may expect the second target at 187.80. The pivot point is at 189.25.

Resistance levels: 190.60 191.20 191.75

Support levels: 188.60 187.80 187

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Technical analysis of USD/CAD for June 2 2015

General overview for 02/06/2015 14:55 CET

As anticipated yesterday, the market is still in a corrective cycle and sub-wave to the downside is still missed (wave c green). It does not really matter now which labeling is correct as both waves point out a possibility of a downward corrective cycle with the first support at 1.2395. A mid-term bias is still bullish. When the corrective cycle is completed, new highs should be made.

Support/Resistance:

1.2575 - WR1

1.2561 - Local Swing High|Intraday Resistance|

1.2489 - Intraday Support

1.2422 - Weekly Pivot

1.2395 - Technical Support (weak)

1.2321 - Technical Support

1.2313 - WS1

Trading recommendations:

Daytraders and swingtraders should consider opening sell orders from the current levels with SL above 1.2491 and TP at the level of 1.2422, with a possibility of an extension downwards to the level of 1.2398. In longer perspective, buying on dips during the corrective cycle is the way to trade on this market at the moment.

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Intraday technical levels and trading recommendations for GBP/USD for June 2, 2015

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Evident bullish recovery emerged from the area around 1.4550 where a significant bullish engulfing weekly candlestick was expressed.

As mentioned before, persistence above the levels of 1.5000-1.5080 exposed the weekly supply zone of 1.5500-1.5550 (roughly corresponding to weekly 50% Fibonacci level), where a significant bearish pressure was previously applied on February 22.

Three weeks ago, the market has already pushed above the weekly supply at 1.5530 (50% Fibo level) and slightly above 1.5720 (FE 100%) until the evident bearish pressure was applied around 1.5800, resulting in the depicted bearish engulfing weekly candlestick.

Note that persistence below the weekly supply at 1.5530 (corresponding to 50% Fibo level) hinders the ongoing bullish swing. It gives more time for sideways movement with strong bearish tendency.

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Sideways movement with a slight bearish tendency had been expressed on the daily chart until the bullish breakout took place above 1.4970-1.5000 (through a long-term bullish reversal pattern).

The price zone between 1.5000 and 1.5100 failed to keep prices below. Moreover, it constituted a prominent demand zone for the GBP/USD pair while trending within the depicted bullish channel.

A daily closure above the weekly supply zone of 1.5500-1.5530 exposed the next supply level located at 1.5720 (100% Fibonacci Expansion of the recent bullish swing) where evident bearish pressure was applied.

Bearish breakout off the depicted bullish channel took place as a result of the evident bearish pressure that emerged at the level of 1.5660.

Persistence below 1.5450 (lower limit of the broken channel) is needed to maintain the current bearish momentum towards Intraday DEMAND level at 1.5100.

However, a bullish pullback towards 1.5450 (Intraday SUPPLY) will probably offer a valid SELL entry for those who missed the initial breakout.

Initial bearish targets would be located at 1.5250 and probably 1.5100 (depicted demand level) where a short-term BUY entry can be offered.

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Technical analysis of EUR/JPY for June 2, 2015

General overview for 02/06/2015 14:45 CET

The previous count has been invalidated due to wave one and wave two overlap which is against the Elliott wave rules. The current count incorporates the latest developing and points out a possible pivot point for this market after wave five extension. In higher time frames, the current count is an ABC irregular flat correction in wave B. So, this move higher might be a final push to the upside. The projected target is the zone between the levels of 138.55 (WR1) and 138.71 (261%Fibo). Bearish divergence supports the view.

Support/Resistance:

138.71 - 261%Fibo

138.55 - WR2

137.95 - WR1

137.91 - Intraday Resistance

136.95 - Intraday Support

136.59 - Intraday Support

Trading recommendations:

Buying on dips is the way to trade on this market with tight SL (20-30 pips) and TP at the levels of 138.55 - 138.72.

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Intraday technical levels and trading recommendations for EUR/USD for June 2, 2015

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The market was pushed lower after breaking below the major demand levels around 1.2100 and 1.2000 where historical bottoms were previously hit back in July 2012 and June 2010.

The EUR/USD pair lost almost 850 pips since the beginning of 2015. Moreover, the EUR/USD bears have already pushed the market slightly below the monthly demand level of 1.0550 (established on January 1997).

The previous monthly closure had a negative impact on the EUR/USD pair. However, April's monthly candlestick came as a bullish engulfing candle as depicted on the chart.

In the long term, bearish breakdown of the monthly demand level at 1.0550 should not be excluded as the long-term breakout target is projected towards the level of 0.9450.

A bullish corrective movement towards 1.1500 and 1.1600 is still possible provided that May's monthly candlestick high (1.1465) gets breached as soon as possible.

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The obvious bearish breakout of the weekly demand level at 1.1100 allowed the price to fall dramatically shortly afterwards.

After such a long bearish rally (which started around the levels of 1.1300), bullish rejection was expressed at 1.0570 (monthly demand level).

A bullish continuation pattern with an ascending bottom was established around the level of 1.0650.

That is why bears failed to hinder the ongoing bullish momentum around the key zone of 1.1150-1.1050 on April 29. Temporal bullish fixation above 1.1100 took place shortly after.

Further bullish advancement was enhanced until bearish pressure was applied around 1.1450 (just below the depicted supply level of 1.1500).

Last week, a bearish pullback took place towards 1.0800 -1.0830 where a bullish breakout pattern with an ascending bottom was established.

That is why, a profitable BUY entry was suggested at retesting of 1.0820. S/L should be advanced to 1.0880 to secure some profits.

On the H4 chart, bullish fixation above the price level of 1.0990 is mandatory to pursue towards 1.1130 (projection target).

Note that the zone of 1.1000-1.1100 is a prominent DAILY supply zone for the EUR/USD pair. No long-term bullish positions should be considered before bullish fixation above 1.1130 takes place.

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Gold : analysis for June 02, 2015

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Overview:

Gold has been trading downwards. The price tested the level of $1,185.87 in a high volume but with weak price action (weak supply). The price has returned to our trading range but since we got a sign of strength in the background, we may expect bullish momentum again. According to the daily time frame, we can observe neutral bar in an average volume. The price has broken our supply trendline which is a sign that selling looks very risky. I placed Fibonacci retracement to find potential resistance levels and got Fibonacci retracement 50% at the level of $1,206.00 and Fibonacci retracement 61.8% at the level of $1,212.00.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,200.35

R2: 1,205.00

R3: 1,213.00

Support levels:

S1: 1,184.55

S2: 1,179.70

S3: 1,171.00

Trading recommendations: The price has broke our trading range upside and my advice is to watch for potential buying opportunities on dips.

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EUR/NZD : analysis for June 02, 2015

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Overview:

Recently, EUR/NZD has been trading upwards. As we expected, the price tested the level of 1.5529 in a very high volume and with very strong price action. The short-term trend is bullish. According to the daily time frame, we can observe demand in a high volume with strong price action in the background. According to the H4 time frame, the price was successfully rejected from the recent swing high zone (support). Selling looks risky since we are in the bullish trend and we have strong bullish activity in the background. Watch for potential buying opportunities after the bearish correction (buy on dips). Next bullish objective point is around the level of 1.5800. We can observe re-accumulation on the market.

Fibonacci Pivot Points:

Resistance levels:

R1: 1.5495

R2: 1.5540

R3: 1.5620

Support levels:

S1: 1.5335

S2: 1.5290

S3: 1.5210

Trading recommendations: Be careful when selling EUR/NZD at this stage since we can observe strong a bullish activity (volume) in the background and broken supply trendline. Potential re-accumulation.

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Technical analysis of USD/CHF for June 2, 2015

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Overview:

  • The USD/CHF pair is going to set strong resistance at the level of 0.9561 and the minor resistance has set at 0.9468. The support set at levels of 0.9375 and 0.9260 respectively. Also, it should be noted that the weekly pivot point has already set at the level of 0.9375. Equally important, the price is still moving around the key level at 0.9400. Moreover, the USD/CHF pair has still been below 61.8% of Fibonacci retracement levels since last week. As a result, the price has already formed the strong resistance at this spot of 0.9561. Another thought, the RSI calls for a downtrend. Therefore, the USD/CHF pair will get the downside rather convincing momentum and the structure of a fall does not look corrective. Indicating a bearish opportunity below 0.9468, it will be a good sign to sell below 0.9468 with the first target of 0.9375 (this level coincides with weekly resistance 1) and it will call for a downtrend to continue bearish towards 0.9260. The level of 0.9260 coincides with the ratio of 23.6% Fibonacci retracement levels.
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Technical analysis of NZD/USD for June 2, 2015

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Overview:

  • According to the previous events, the NZD/USD pair is trading between 0.7080 and 0.7166. It should be noted that the key level is set at 0.7166 which represents a ratio of 23.6% Fibonacci retracement levels in the H1 chart. The double bottom will be formed at the level of 0.7080. Therefore, it will be a good idea to buy above 0.7080 with the first target at 0.7123. It will call for an uptrend in order to continue its bullish movement towards 0.7160. On the other hand, the stop loss should never exceed your maximum exposure amounts. Consequently, the stop loss should be set below the double bottom at the level of 0.7045. Notes:
  • We expect a new range about 58 pips today.
  • The key level will set at 0.7080 (double bottom).
  • The resistance is seen at the level of 0.7166.
  • It should be noted that if there is no significant news to influence, the market price will be moving from pivot point to resistance 1 or support 1. But if there is significant news to influence, the market price may go straight through resistance 1 or support 1 and reach resistance 2 or support 2 and even resistance 3 or support 3.
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Technical analysis of Silver for June 02, 2015

Technical outlook and chart setups:

Silver jumped through the level of $17.20 yesterday before pulling back sharply. The metal is seen to be trading around $16.70 at the moment, looking to resume its rally towards $17.30/40 levels at least. It is hence recommended to remain long with risk around $16.00. Also note that the pair has found support around the fibonacci 0.618 levels of the rally between $16.15 and $17.40 respectively. Immediate support is seen at the level of $16.50 (interim) followed by $16.15, $15.80, and lower. Resistance is seen at $17.30/40 followed by $17.70/80, $18.40/50, and higher respectively.

Trading recommendations:

Remain long, stop is at $16.00, a target is open.

Good luck!

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USDX technical analysis for June 2, 2015

The US Dollar Index is still in a bullish trend inside the upward sloping channel. My short-term view is bullish as long as the price is above 96.50. I believe we should expect one more new high at least before a larger pullback.

Black lines = bullish channel

The US Dollar Index is above the cloud support and inside the bullish channel. Support is at 97 and the next one is seen at 96.50 by the cloud. I believe we are near today's lows. So, I prefer open long positions at current levels with stops near support line at 96.50 or near 96.80 for short-term traders.

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The weekly chart remains bullish as the price is above the tenkan-sen indicator. The US Dollar Index has reached an important low at 93.10. As long as we trade above this level, we should expect new highs towards 102-103 at least. A breakout below 93.10 will push the Index towards the cloud support at 86-87.The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of Gold for June 02, 2015

Technical outlook and chart setups:

Gold rose through $1,204.00 yesterday before pulling back sharply. The metal is trading around $1,188.00/89.00 now testingt he trend-line support and prepearing to rally through at least $1,215.00. It is hence recommended to remain long for now with risk at $1,168.00. Immediate support is seen at $1,180.00 (interim) followed by $1,168.00, $1,162.00, and lower. Resistance is seen at $1,215.00 (interim) followed by $1,231.00, $1,235.00/40.00, and higher respectively.

Trading recommendations:

Remain long for now, stop is at $1,168.00, a target is open.

Good luck!

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Gold technical analysis for June 2, 2015

Gold price has bounced towards the short-term resistance at $1,200 as expected and got rejected. The price is below $1,190 again as bulls are not strong enough to break above $1,200. Support still holds the level of $1,180, but I do not believe it will last much longer. Time for a plunge towards $1,130-40 is getting closer.

Red line = support

Gold price reached the cloud resistance and got rejected. The price is trading below the cloud confirming the short-term trend remains bearish. The red trend-line support at $1,185-80 remains intact as price is trading around it. There is no clear break of support yet.

The weekly chart remains bearish as the price got rejected by the tenkan-sen yesterday and is trading below the cloud today. The upward move from $1,140 in 3 waves is corrective. Support is seen at $1,169. If bulls break that level, I will feel very confident about moving towards $1,130.The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of EUR/AUD for June 02, 2015

The cross made a double bottom between 1.3735 and 1.3685 and changed the direction towards North. The cross made a double top at 1.4391 trading at 1.4325 compared to 1.4372 at Monday's session. The strong resistance is seen at 1.4450. Fresh buying is available above 1.4450 with targets at 1.4580. Intraday resistance is seen at 1.4391 and 1.4425. At yesterday's session, the cross took the support at 200Dema 1.4240. Below this, 1.4195 20Wsma was found. In the hourly chart, the cross made a double top at 1.4391. In case the price takes off 1.4391, bulls can reach 1.4425 and 1.4450 in the extreme case. Fresh buying looms above 1.4450. Intraday support is found at 1.4280 and 1.4250. The panic will be triggered below 1.4245 towards 1.4200 and 1.4160.

Trade: Selling below 1.4280 aim at 1.4250, 1.4200 and 1.4160 , risk buying above 1.4340 target 1.4390, 1.4420.

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To contact the author of this analysis, please email- joseph.wind@analytics.instaforex.com

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Technical analysis of USDX & USD/JPY for June 02, 2015

USD dominates against major currencies at Monday's section. Manufacturing data boosted the US dollar bulls.

Economic activity in the manufacturing sector expanded for the 29th consecutive month in May. The overall economy grew for the 72nd consecutive month, the nation's supply executives said in the latest Manufacturing ISM Report.

The USDX is at 61.8 the fib level 97.78 from a peak to a low of 93.37. The 50Dsma has been providing support for 4 days. In case of daily close above 97.80, bulls will aim at a new high of 103.00. For intraday session, fresh buying is available above 97.80 with a target at 98.10 initially, 98.60 and 99.60 later. Earlier, we forecasted a break from the inverse head and shoulder aiming at 99.40, we advise the same today. Support is found at 96.60.

USD/JPY

The pair reached a high of 125.05 at today's Asian session. The pair has been moving higher in a correctional manner for 7 consecutivedays. It is an excellent move after a month of consolidation. The pair breached a 5-month consolidation range on the higher side. The nearest resistance is seen at 125.79 (December 2002 high). We expect the pair to touch 128.00/129.00.

For an intraday session, fresh buying is available above 125.10 with targets at 125.50 and 125.80.

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Technical analysis of USD/CAD for June 02, 2015

The pair managed to close above the supply zone and above the 20Wsma. The pair changed the texture from selling to buying. The previous resistances acting as support now. The weekly support is found at 1.2430 and 1.2395. Until the price closes above 1.2390, use dips to buy. Bears can try to hit 1.2300 in case the price breaks below 1.2390. The nearest parallel resistance is seen at 1.2570. Fresh buying is advised above 1.2570. In case buying triggers, bulls will aim at 1.2650 an 1.2670 immediately. The monthly support is found at 1.2250.

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Technical analysis of EUR/JPY for June 02, 2015

Technical outlook and chart setups:

The EUR/JPY pair is trading around the level of 136.50 now and is likely to face resistance here. The pair is expected to form a lower top below 137.00 and reverse towards the level of 130.00. Only a push above 137.00 would indicate that the pair could test 138.00/50 before reversing. It is hence recommended to remain short with risk at the level of 137.30 now. Immediate support is seen at 135.10 followed by 134.00, 133.00, 131.50, and lower while resistance is seen at 137.00 and higher respectively.

Trading recommendations:

Remain short, stop at 137.30, a target is open.

Good luck!

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Technical analysis of GBP/CHF for June 02, 2015

Technical outlook and chart setups:

The GBP/CHF pair is trading around 1.4330/40 at the moment looking to retrace higher towards 1.4550 before dropping lower again. The pair might be poised to drop and form a base around 1.4100/50 in the coming trading sessions. Aggressive traders could go long now with risk at 1.4280. More conservative approach tells us to remain flat and look to buy at lower levels. Immediate support is seen at 1.4150 followed by 1.3950 and lower. Resistance is seen at the level of 1.4650 and higher respectively.

Trading recommendations:

Remain flat for now, look to buy at lower levels.

Good luck!

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Elliott wave analysis of EUR/NZD for June 2 - 2015

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Technical summary:

We saw an anticipated correction in red wave iv. We should see red wave v soon moving higher towards 1.5640 to finish the first impulsive rally in wave (iii). Once this first impulsive rally is over, a correction to 135.10 (bottom of red wave iv) should be expected.

In the long term, we are looking for much higher levels with 1.5802 being the next major upside target.

Trading recommendation:

We are long EUR from 1.5080 and will move our stop higher to 1.5300. If you are not long EUR yet, buy on a break above 1.5392 and place stop at 1.5300 too.

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Elliott wave analysis of EUR/JPY for June 2 - 2015

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Technical summary:

We saw an anticipated correction in blue wave iv yesterday. It moved a little lower than we expected and tested support at 135.10 before moving higher in blue wave v. We have already seen a new high for the rally of the 133.07 low. Now, we can count five waves in the first small impulsive rally in wave (iii). We would like to see blue wave v moving higher to just above 136.96 to end red wave i and set the stage for a correction in red wave ii to 135.10 as the first downside target.

In the longer term, we are looking for a much larger rally with 144.03 as the first upside target, where wave (iii) will be equal in length to wave (i). However, as wave (ii) showed an expanded flat correction, we should expect extension in wave (iii). That would call for a continuation higher to 150.77 as the first extension target, where wave (iii) will be 161.8% of the length of wave (i).

Trading recommendation:

Our stop at 135.25 was hit and we booked a nice profit. We will look for a new EUR buying opportunity near 133.25.

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Daily analysis of major pairs for June 2, 2015

EUR/USD: The dominant bias remains bearish here, irrespective of a formidable rally in the context of the downtrend, which occurred last week. This price action would be taken as a short-selling opportunity unless the resistance line at 1.1100 is overcome. The support line at 1.0850 was tested last week and it could be tested this week again.

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USD/CHF: Bulls are making desperate efforts to push the price upwards, but the outcome would depend of what happens to CHF. For the pair to move upwards, the CHF has become weak, since USD/CHF would find it difficult to experience any meaningful rally if CHF remains strong.

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GBP/USD: The cable has continued its gradual journey to the downside. A movement of about 100 pips to the downside has made the Bearish Confirmation Pattern stronger. Short trades still make lots of sense in this market, for the accumulation territories at 1.5150 and 1.5100 could be attained soon.

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USD/JPY: The USD/JPY pair moved upwards by over 90 pips on Monday, closing above the demand level at 124.50. The next target for this week is located at the supply levels of 125.00 and 125.50, which would be attained as long as the yen is weak.

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EUR/JPY: The weak yen is a factor that would keep this cross going upwards. The upward movement can be accelerated further if the euro gains stamina. Now, bulls are trying to reach the supply zone at 137.00, which would be attained irrespective of strong volatility in the market.

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Technical analysis of EUR/USD for June 02, 2015

The euro paused the winning 3days streak against USD at yesterday's session closed below 50dSMA. Ahead of non-farm employment change USDX trading The euro formed a winning 3-day spike against USD at yesterday's session, closed below 50dSMA. Ahead of non-farm employment changes, the USDX is trading higher.

The German, Italian, and Spanish readings improved a lot. The recent German data readings were inconsistent compared to Spanish. The inflation rate in Germany is expected to be +0.7% in May 2015. The Federal Statistical Office (Destatis) also reported that the consumer prices are expected to increase by 0.1% in April 2015. Manufacturing PMI readings were not impressive in Germany and France. But Spain and Italy ones beat the expectations. The German Manufacturing Purchasing Managers' Index dropped from 52.1 in April to 51.1 in May. The Markit France PMI rose to 49.4, up from 48.0 in April. Spanish PMI rose to 55.8 in May from 54.2 in April, signaling the strongest improvement in business conditions since April 2007. Italian PMI rose for the fifth consecutive month in May, registering at 54.8 from 53.8 in April. This latest reading pointed to the most marked improvement in overall operating conditions since April 2011.

The US manufacturing PMI dominated the trade. Economic activity in the manufacturing sector expanded in May for the 29th consecutive month, and the overall economy grew for the 72nd consecutive month.

Greece saga: This Friday, Greece is due to make the payment to the IMF.

Upcoming events: Today, traders eye German and Spanish unemployment changes. CPI and Core CPI are expected from the eurozone. Besides, US factory orders are due. We expect Spanish unemployment readings to beat the expectations. But German readings were inconsistent. Major events fall on Wednesday. All members of the ECB's governing council will meet to set monetary policy.

Technical Analysis: The pair closed below 50Dsma and 20Wsma. Weekly resistance is seen at 1.1045. In the four-hour chart, the pair has been moving towards lower highs and lower lows. Intraday support is found at 1.0860 and resistance is seen at 1.0945 and 1.0980. The trend-change support level is found between 1.0820 and 1.0800. The pair managed to breach the falling bearish channel. Small bearish trading opportunity is available below 1.0900 with immediate targets at 1.0860 and 1.0820. The real selling pressure looms below 1.0790, at 1.0770, 1.0700, 1.0660, and 1.0620 in a day or two. Bulls can buy above 1.1010 with targets at 1.1040 and 1.1060. Technically, the trading day favours selling below the support line or using a spike to open sell positions.

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To contact the author of this analysis, please email- joseph.wind@analytics.instaforex.com

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Technical analysis of GBP/AUD for June 02, 2015

The RBA is expected to hold the interest rates firm. Ahead of the major event, AUD is trading higher against crosses like Euro and GBP.

We can observe divergence between EUR/AUD and GBP/AUD. The AUD remains bearish against the pound, whereas bullish against the euro. The GBP/AUD cross printed a new high at 2.0051 in May. Now, the cross is unable to breach May's highs. The cross has been forming long spike for 2 days. Today, ahead of major events, AUD is trading higher 1.9933 against GBP at the Asian session compared to 1.9980 Monday's close. The intraday support finds at 1.9900 and 1.9870. Safe selling will emerge below 1.9860 with targets at 1.9820 and 1.9785. We can observe negative divergence in the four-hour chart. Until the pair is below 2.0051 on the down side, the level of 1.9730 is projected in a day or two. Intraday resistance is seen at 1.9965. Risky buying is advised above 1.9970, safe buying is seen at 2.0000 with targets at 2.0020, 2.0050, and 2.0075. Another strong fresh upside leg is available above 2.0075 towards 2.0350 and 2.0500.

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Daily analysis of USDX for June 02, 2015

On daily chart, the USDX is still trading higher and looking to test the resistance zone around 98.08. There is a higher high pattern formation on the chart. That's why we would like to remain long on the Index, as long as it stays above the support level of 96.97 in this time frame. The 200 SMA is still bullish and the upside is still strong.

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Monday's session was slow, but bullish for the USDX in an intraday basis, because the Index is looking to break the resistance level of 97.60 in order to reach the resistance zone of 98.05. That resistance remains very strong in the short term basis and the Index is looking to do consolidation above it during this week.

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Daily chart's resistance levels: 98.08 / 98.64

Daily chart's support levels: 96.97 / 95.74

H1 chart's resistance levels: 97.60 / 98.06

H1 chart's support levels: 97.16 / 96.90

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 97.60, take profit is at 98.06, and stop loss is at 97.16.

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Daily analysis of GBP/USD for June 02, 2015

GBP/USD remains weak in the daily chart, because bears are is still strong and there are no patterns that indicat a possible large recover against the downside. For now, we expect a breakout in the support zone of 1.5199 in order to reach the next target located at the level of 1.5090.

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In the H1 chart, the pair is forming another lower low pattern. We ixpect it to break the level of 1.5158 to fall until a low of 1.5084. By the way, there is a possibility that GBP/USD could make a rebound at current levels and rise to the resistance zone of 1.5259. If it breaks that level, it would be expected to rise until 1.5358, where the 200 SMA is located.

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Daily chart's resistance levels: 1.5346 / 1.5543

Daily chart's support levels: 1.5199 / 1.5090

H1 chart's resistance levels: 1.5259 / 1.5358

H1 chart's support levels: 1.5158 / 1.5084

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 1.5158, take profit is at 1.5084, and stop loss is at 1.5235.

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Technical analysis of GBP/USD for June 02, 2015

The pound hit a fresh four-week low against USD after the US manufacturing data release. The US dollar dominated against major pairs at yesterday's session.

The seasonally adjusted Markit/CIPS PMI ticked higher to 52.0 in May, up from a revised reading of 51.8 in April (previously reported as 51.9). The UK manufacturing sector showed further modest expansions of both output and new orders in May. Economic activity in the manufacturing sector expanded in May for the 29th consecutive month. The overall economy grew for the 72nd consecutive month.

Upcoming event: Today, traders eye construction PMI. The UK construction sector has been struggling for a while, led by housing market.

Technical analysis: The cable held the 20Wsma and was trading above. The weekly support was found at 1.5150 and 1.5089. At yesterday's session, the cable touched the 100Dsma and 50Dsma junction placed at 1.5165. We expect a technical bounce with a target at 1.5300 in a day or two, later 1.5525 in the extreme case. We advised to buy between 1.5150 and 1.5100 with sl 1.5089. The same theme we still recommend this week as well. In the H1 chart, lower lows and lower highs are expanding. The price has been consolidating at 1.5200 for 8-hours. As we explained earlier, technical bounce likely. For today's session risky buying is available with sl 1.5160 and targets at 1.5240, 1.5260, and 1.5300 CMP 1.5200. Safe buying will trigger above 1.5220. Intraday support is found at 1.5160 and 1.5130. Positional buying is advised with small quantity. Bulls are likely to regain strength above 1.5300 with targets at 1.5340, 1.5380, and 1.5420. In case dip takes place buyers available between 1.5130 and 1.5100.

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EUR/NZD analysis for June 01, 2015

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Overview:

Recently, EUR/NZD has been trading downwards. The price tested the level of 1.5307 in a high volume but with very weak price action (weak supply). The short-term trend is bullish. According to the daily time frame, we can observe demand in a high volume with a strong price action in the background. According to the H4 time frame, the price is testing the recent swing high zone (support). Selling looks risky since we are in the bullish trend and we have strong bullish activity in the background. Watch for potential buying opportunities after the bearish correction (buy on dips). Our Fibonacci retracement 61.8% is at the price of 1.5480. If the price breaks this level, we may see potential testing the level of 1.5815.

Fibonacci Pivot Points:

Resistance levels:

R1: 1.5500

R2: 1.5560

R3: 1.5650

Support levels:

S1: 1.5310

S2: 1.5250

S3: 1.5150

Trading recommendations: Be careful when selling EUR/NZD at this stage since we can observe strong a bullish activity (volume) in the background and broken supply trendline. Potential reaccumulation.

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