USD/CAD intraday technical levels and trading recommendations for July 7, 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 looks quite overbought. That is why, the price failed to hold above 1.2650 - 1.2680 (previous highs) resulting in a formation of a Triple-top pattern.

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

Daily fixation below 1.2300 opened a way towards the levels of 1.2000 and 1.1940 (the depicted weekly uptrend) for the USD/CAD pair. Bullish support was offered around these levels. A bullish pullback took place shortly after.

The price zone of 1.2450-1.2500 (backside of the broken uptrend) then provided temporary resistance. Shortly after, a daily candlestick closure below 1.2430 enhanced further bearish decline.

However, the previous weekly candlestick closed at 1.2270 when the USD/CAD needed a frank weekly closure below 1.2300 to ensure further bearish decline in the long term. This reflected a lack of bearish momentum.

That is why, an extensive bullish movement is currently being expressed on the chart. An overbought state is being manifested on the charts (breaching of the upper limit of the weekly channel).

Persistence above the level of 1.2400 enhanced a quick bullish movement towards 1.2570 (the previous weekly closure level) and 1.2770 which is being tested today.

The price zone of 1.2740-1.2770 should be defended by bears (the upper limit of the weekly channel as well as 100% Fibonacci Expansion level of the most recent bullish move).

A valid SELL can be offered around the current price levels. S/L should be placed slightly above 1.2850.

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

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

April's monthly candlestick came as a bullish engulfing one. However, the next monthly candlesticks (May and June) reflect bearish rejection being expressed around 1.1450.

In the long term, a bearish breakout of the monthly demand level at 1.0550 should not be excluded as the long-term projection target is located at 0.9450.

However, a bullish corrective movement towards 1.1500 may be executed only if May's monthly high of 1.1465 gets breached (considered a very low probability currently).

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

Multiple ascending bottoms were established around the levels of 1.0470, 1.0550, and 1.0850. These levels corresponded to the daily uptrend depicted on the chart.

Further bullish pressure was observed until bearish rejection was applied around 1.1400 (slightly below the depicted daily supply level).

A dayly closure below the level of 1.1150 brought the EUR/USD pair towards 1.1000 again where the uptrend comes to meet the EUR/USD pair (significant demand level depicted on the chart).

EUR/USD bulls must keep trading above 1.1000, so further bullish advancement can be achieved. Initial bullish target would be located at 1.1150 and 1.1300 (a prominent supply level to be watched).

On the other hand, a dayly closure below the level of 1.0980 (already taking place) hinders an ongoing bullish scenario enabling a quick bearish decline towards 1.0850 and 1.0700 to take place.

That's why the current candlestick closure should be monitored by the end of the day to determine the next destination of the pair.

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

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

Shortly after, persistence above the levels of 1.5000-1.5080 exposed the weekly key zone of 1.5500-1.5550 where significant bearish pressure was previously applied on February 22.

Last month, the market has been pushed above this weekly key zone at 1.5550 in an attempt to reach the area around 1.5900 (100% Fibonacci Expansion) which provided evident supply for the GBP/USD pair.

As anticipated, a bearish pullback was executed towards the level of 1.5550. Evident bearish breakdown below 1.5500 is currently taking place.

The weekly demand level around 1.5200 is currently exposed to be visited soon.

That's why the weekly candlestick closure should be monitored by the end of the week.

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A bearish breakout of the depicted bullish channel took place as a result of the bearish pressure around 1.5780 and 1.5660 (depicted on the chart with arrows).

After a bearish breakout of 1.5500-1.5550 (lower limit of the broken channel), the market failed to gather enough bearish momentum towards the intraday demand level of 1.5100.

Significant bullish pressure was observed around 1.5200. Hence, a bullish swing was established towards 1.5780 (61.8% Fibonacci level) and 1.5880 (FE 100%).

As anticipated, the price zone of 1.5800-1.5880 remains a significant supply zone for the GBP/USD pair. It offered a valid sell entry last week. All T/P levels were successfully reached.

On the other hand, the level at 1.5550 acts as a significant demand level for the pair (corresponding to 50% Fibonacci level and a previous prominent top).

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EUR/NZD analysis for July 07, 2015

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Overview:

Recently, EUR/NZD is moving downwards. The price tested the level of 1.6469 in a volume above the average. In the daily time frame, we can observe a weak demand bar, which is a sign that buying looks risky. The short-term trend changed from bullish to neutral but the mid-term trend is still bullish. Our strong resistance at 1.6615 was held successfuly again. According to the H4 time frame, we can observe the supply bar in an average volume. I placed Fibonacci retracement to find potential support levels and got Fibonacci retracement 38.2% at the level of 1.6400, Fibonacci retracement 50% at the level of 1.6330 and Fibonacci retracement 61.8% at the level of 1.6260.

Fibonacci Pivot Points :

Resistance levels:

R1: 1.6563

R2: 1.6600

R3: 1.6650

Support levels:

S1: 1.6455

S2: 1.6420

S3: 1.6370

Trading recommendations: Buying EUR/NZD looks risky. Watch for potential selling opportunities. We got support around the level of 1.6400 and 1.6350.

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Gold analysis for July 07, 2015

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Overview:

Gold has been trading sideways around the price of $1,165.00. I am still awaiting a stronger price action and larger activity to confirm further direction. According to the H4 time frame, our support cluster around the price of $1,162.00 got broken but we can observe a pin bar, which is a sign of a weak breakout and potential fake breakout. Selling looks risky at this stage because support at the price of $1,162.00 is still active. The short-term trend has changed from bearish to neutral. We got a new low at the price of $1,157.00. If the price breaks the level of $1,157.00 in a high volume, we may see possible testing of the level of $1,147.00. Otherwise, bullish phase is possible.

Daily Fibonacci pivot points:

Resistance levels

R1: 1,174.00

R2: 1,178.00

R3: 1,176.00

Support levels:

S1: 1,165.00

S2: 1,162.00

S3: 1,157.00

Trading recommendations: Be careful when selling gold since our strong support at the price of $1,162.00 is still active. We can observe indecision market. Wait for larger activity and stronger price action to confirm further direction.

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Technical analysis of USD/CAD for July 7, 2015

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Overview:

  • The resistance of USD/CAD is set at the level of 1.2828; therefore, bears are going to sell below 1.2834, because there is a double top at the price of 1.2834. So it should be also noted that the resistance is at the level of 1.2828. In the short term, it is recommended to sell during the correction and open short trades below 1.2834 with targets at 1.2690. By the way, the trend will call for a bullish market at the level of 1.2573, there is a bullish channel. Additionally, an upside momentum is rather convincing and the structure of the rise does not look corrective. In order to indicate a bullish opportunity above 1.2600, in consequence it will be a good sign to buy above 1.2600 with the first target of 1.2750. It is equally important that it will call for an uptrend in order to continue bullish trend towards 1.2834. On the other hand, it is worthy of note that the price at 1.2573 will possibly form strong support (88.2% of Fibonacci retracement levels in H1 chart).

Warning:

  • The stop loss should never exceed your maximum exposure amounts. Thus, set a stop loss below the support 1.2546.
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Global macro overview for 07/07/2015 - EUR/USD after ECB decision

Global macro overview for 07/07/2015 - EUR/USD after ECB decision

As Greece is very depended on a further creditors' lending in order not to default, the ECB decision made it even harder for Greece to get the emergency loans from this institution. The Emergency Liquidity Assistance (ELA) provided by the ECB is highly depended on government–linked assets as the current financial situation in Greece has an impact on their banking system. This is why the ECB's Governing Council agreed to leave the limit on ELA unchanged at 88.6 billion euros ($98 billion), but the change in collateral terms is more strict. Please remember that cash withdrawals are still limitted to 60 euros per day in Greece since last week .

The EUR/USD reaction on that news is very bearish as the important technical support at the level of 1.0953 is currently being tested. Please notice that bears immediately gained more control and pushed the price lower after both weekend gaps had been filled.

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Global macro overview for 07/07/2015 - AUD/USD after RBA rate decision

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Global macro overview for 07/07/2015

The RBA decided to leave the interest rates unchanged at the level of 2% last night just in line with analysts' expectations. As the result the AUD/USD pair is still trading lower at the level of 0.7436. A drop is not likely to stop any time soon. The next level of support is seen at the level of 0.7264 is the weekly time frame. Please notice that the Australian dollar keeps falling to a new 6-year low now and this sell-off might not stop until the level of 0.7264 is tested.

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Technical analysis of USD/CAD for July 7, 2015

General overview for 07/07/2015 11:05 CET

This pair is still trading inside the bullish zone and the impulsive wave progression to upside hasn't been completed yet. The next target for wave 5 black in a more conservative count is seen at the level of 1.2770. Moreover, the target level is set even higher than 1.2770 in more aggressive bullish count ( alternative count on the chart). The near-term bias might be changed only if the intraday support at the level of 1.2631 is violated.

Support/Resistance:

1.2770 - WR1

1.2707 - Local High

1.2631 - Intraday Support

1.2536 - Weekly Pivot

Trading recommendations:

Swingtraders should still keep the buy orders open.

Daytraders should consider buying on dips down to the level of 1.2631, with SL just below the level of 1.2629 and TP at the level of 1.2770.

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Technical analysis of EUR/JPY for July 7, 2015

General overview for 07/07/2015 10:50 CET

The downside wave progression might accelerate if the intraday support at the level of 134.55 gets broken. The next support is seen at the level of 133.75 and in higher time frames, the very important daily support is expected at the level of 133.05. Any breakout below this level is a near-term bearish sign. From the Elliott wave point of view, this king of wave development would be a big wave C as the last wave in the corrective structure of big wave 2.

Support/Resistance:

133.05 - Technical Support|Key Level|

133.75 - Wave Y Low

134.55 - Intraday Support

134.98 - Weekly Pivot

Trading recommendations:

Daytraders should consider openning sell orders if the level of 134.55 is violated, with a tight SL (20-30 pips) and TP at the level of 133.75 with a possible extension downwards to the level of 133.05.

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USDX technical analysis for July 7, 2015

The US Dollar Index remains strong as the price is trying to break above the medium-term resistance at 96.70-96.80. The rice is still in a short-term bullish trend with higher highs and higher lows. Important support is at 95 now . So, as long as the price holds above that level, bulls will be in control.

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Blue line - trend line support

The US Dollar Index is above the short-term ichimoku cloud and above the trend-line support. The trend is bullish. The short-term support is at 95.80. The short-term resistance is seen at 97.

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Blue line - trend line resistance

The weekly chart is showing how this week's candle is trying to make a breakout above the trend-line resistance. If bulls manage to break above this resistance, the upside potential for the index could be new highs above 101. Critical long-term support is found at 93.50. If it gets broken, we should expect a correction to unfold towards 90.

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Gold technical analysis for July 7, 2015

Gold price made another bounce towards $1,175 yesterday, but the price got rejected once again and pulled back below $1,170. The trend remains bearish. Bulls are not strong enough to make a bounce higher than $1,175.

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Blue lines - triangle pattern

The price reached the breakdown area of the lower triangle boundary and tested it. Hwever, it got rejected again. The price remains below the Ichimoku cloud. The short-term trend remains bearish as long as the price is below the cloud in the 4-hour chart as shown above.

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Blue line- long-term support trend line

The weekly chart remains bearish. The price is below the weekly Ichimoku cloud and below both the tenkan- and kijun-sen indicators. Support is critical at $1,150 and at $1,130. My longer-term target remains at $1,000 if we break $1,130. A bounce should find weekly resistance at $1,200. I would remain bearish.

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EUR/USD has 800 pips growth potential

EUR/USD formed a double bottom reversal patter on April 13 when it tested the support area of 1.0520 for the second time. The following move was a sharp uptrend resulting in the breakout of the ascending channel. The Fibonacci levels applied to the channel breakout point that was R2 (1.1321) resistance has been broken, while neither R3 (1.1510) nor R4 (1.1820) has been tested.

While the pair is approaching new higher highs, there are absolutely no new lower lows and every low is higher than the previous one. This is a pattern for an uptrend and currently the price is rejecting the 61.8% Fibs support, which is S1 (1.1014). At the same time, the uptrend trendline has already been rejected on June 29 with a daily close above it.

All in all, the trend is bullish and rejecting support. This could be a great long-term buying opportunity. Consider buying EUR/USD today while the price remains near S1 (1.1014), targeting R4 (1.1819) level 0% Fibs. Only a daily close below S2 (1.0953), which was a low back on June 29, could change the direction of the prevailing trend.

Support: 1.1014, 1.0953

Resistance: 1.1170, 1.1321, 1.1510, 1.1819

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Technical analysis of Gold for July 07, 2015

Technical outlook and chart setups:

Gold remains unchanged for now. It is trading around $1,168.00 after dropping from $1,174.00 yesterday. The metal has been testing the immediate resistance trendline but still needs to be pusedh above $1,175.00 to re-enter the buy zone. A drop below $1,155.00 would prove to be extremely bearish. It is recommended to remain long for now with risk below $1,150.00. Immediate support is seen at the level of $1,155.00 followed by $1,143.00 and lower, while resistance is seen at the levels of $1,185.00/87.00 followed by $1,205.00 and higher respectively.

Trading recommendations:

Remain long for now, stop is at $1,150.00, a target is open.

Good luck!

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Technical analysis of Silver for July 07, 2015

Technical outlook and chart setups:

Silver is trading around $15.70 now after having broken out of the trading range yesterday. The metal had rallied up to $15.88 before pulling back lower again. Another push above $15.80 should bring the metal into the buy zone of the dropping trend-line resistance and probably test $16.00/10. That would confirm the meaningful bottom in place at $15.50. It is therefore recommended to remain long now with risk below $15.30. Immediate support is seen at the level of $15.50 followed by $15.30, and lower while resistance is seen at the level of $16.00/10 followed by $16.40/50, $17.20, and higher respectively.

Trading recommendations:

Remain long for now, stop is at $15.30, a target is open.

Good luck!

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Technical analysis of EUR/JPY for July 07, 2015

Technical outlook and chart setups:

The EUR/JPY remains unchanged from what was discussed yesterday and is trading around 135.00 now. The pair might be looking to resume its rally from current levels through 140.00 again as depicted here. Please note that immediate support at 133.00 is still intact and bulls would want to remain in control until prices stay above that level. It is hence recommended to remain long for now with risk at 133.00. Immediate support is seen at 134.00 (interim) followed by 133.00 and lower, while resistance is seen at 139.00 followed by 140.00, 141.00, and higher respectively.

Trading recommendations:

Remain long for now, stop is at 133.00, a target is open.

Good luck!

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Technical analysis of GBP/CHF for July 07, 2015

Technical outlook and chart setups:

The GBP/CHF is trading around 1.4720/25 at the moment. Please note that the pair is stalling at the fibonacci 0.618 resistance after a drop from 1.4833 to 1.4550 respectively. A push higher could test the level of 1.4770 before reversing lower. It is hence recommended to remain short from yesterday and look to add further at 1.4770 with risk at 1.4850. Immediate support is seen at 1.4500/50 followed by 1.4400, 1.4250, and lower. Resistance is seen at 1.4830 and higher respectively.

Trading recommendations:

Remain short and add more around 1.4770, stop is at 1.4850, a target is open.

Good luck!

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

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Technical summary:

We continue to look for a breakout higher towards the next upside target at 1.7154. Looking at the rally from 1.3860, we have already seen five waves. So, no more progress is required in theory, but we would be surprised if a dowside break is already seen.

It will take a break below the support line from 138.60, which is currently near 1.6225, to indicate that the top is already in place.

Trading recommendation:

We are long EUR from 1.6588 with stop placed at 1.6310. If you are not long EUR already, buy on a break above 1.6625 with your stop placed at 1.6410.

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

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Technical summary:

There is no change in our view. Trading has been trapped in a very narrow range since yesterday as insecurity about EUR prevails. We continue to look for a breakout above minor resistance at 136.85 indicating renewed upside pressure for a test of 141.06 on the way towards 144.03.

Only an unexpected break below important support at 133.07 will indicate that the rally from 126.05 has been no mer than a correction and this support should be tested again.

Trading recommendation:

We will buy EUR only upon a break above 136.85.

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Technical analysis of GBP/USD for July 07, 2015

The British pound edged higher at yesterday's session pausing a 4-day fall. The US dollar fell after PMI data.

Last week, the cable closed below 50Wsma at 1.5630 rejecting of 1.5780. The same levels are going to act as strong resistance in coming weeks. The nearest support is found at 1.5520 50Dsma and 1.5487, which is another week low. The daily 200sma is found at 1.5450 and 100ema is seen at 1.5430. A daily close below 1.5520 opens gates for 1.5450 and 1.5430 in a day or two. At yesterday's session, the cable held the 50Dsma, but faced strong resistance at 50Wsma 1.5630. For the past 3 sessions, the cable has been facing strong resistance at 20Dsma 1.5685 and making tops near 1.5640.

Traders eye UK manufacturing data and US trade balance today. We are approaching significant events starting from data on the UK budget, the FOMC meeting minutes, and banks' interest rates.

Ahead of the FOMC meeting minutes, cable bulls are trying to rebound between 1.5525 and 1.5430. If they fail, they will try to rebound from 1.5360. Bulls' last accumulation point is found at 1.5280 20Wsma and 100Dsma sleeping there. As of now ,1.5525 acts as strong support, rounded to 1.5500. Until this level holds, bullish view remains in play.

The intraday resistance is seen at 1.5615, 1.5645, and 1.5665. The support is found at 1.5570, 1.5550, and 1.5525. Risky selling is available below 1.5570, safe selling is available below 1.5520 towards 1.5490, 1.5450, and 1.5430. Safe buying is expected above 1.5680 with a target at 1.5735. We guess the Fed is unlikely to show a new approach on the rate hike favoring favoring bullish way to trade the cable.

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Technical analysis of EUR/USD for July 07, 2015

The euro managed to fill yesterday's gap closing above 100Dsma. The early dip was bought filled 100 pips gap down, but rejected at the higher levels during the US trading session. The negative result in the referendum pushed the Greek debt solution into dark zone.

Technical view: The 20Wsma was found at 1.1020 and 100Dsma was found at 1.1040. The weekly resistance is seen at 1.1121, 1.1150, and 1.1280. Bulls lost all the daily moving averages except for 100Dsma. The 100Dsma at 1.1040 is put to the test today. A daily close below 1.1040 made bulls lose 1.0950 immediately. The real selling emerges below 1.0950 towards fresh lows. The pair has been moving towards lower highs and lower lows in the H1 and H4 charts. All these factors favor bears. Developments in Greece are the only driving factor during this week. The FOMC meeting minutes are due on Thursday. Until the pair closes below 1.1280, gates are open for 1.0800 initially, 1.0600 and 1.0500 later. The long-term picture favours moving to the sub-level of 1.000.

Intraday resistance is seen at 1.1070, 1.1100, and 1.1120. Traders can buy above 1.1125 with targets at 1.1150 and 1.1170. Strong bears can start selling between 1.1200 and 1.1245 sl 1.1280. Fresh selling is available below 1.1000 towards 1.0960, 1.0930, and 1.0900 during a day. Today's trade is likely to be driven by the euro summit outcome and US trade balance. In the extreme case, the pair is likely to fall to 1.0850. The panic will trigger below 1.0950.

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Technical analysis of Gold for July 07, 2015

The metal has been extending selling pressure for more than a week except for 1 day. The metal is approaching support zone between $1,162.00 and $1,160.00. A daily close below $1,160.00 openes the way to re-test of the previous lows of $1,142.50 and $1,135.00. In all time frames, the precious metal lost all the moving averages. Ahead of the FOMC meeting minutes, the metal is trading lower at the Asian session.

After yesterday's US weak PMI data, the metal is unable to take this as an advantage to move higher. This shows weakness over the board. We do not expect the FOMC minutes to deliver surprising data. In this case we expect a mild pullback towards $1,173.00, $1,180.00, $1,187.00, and $1,190.00. This view will be canceled in case the metal fell below $1,160.00. As per the below, that the metal was rejected at the descending trendline at the previous session. Big moves loom above $1,175.00 and panic is expected below $1,160.00. A daily close above $1,175.00 will lighten up the bullish view.

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Technical analysis of USD/JPY for July 07, 2015

The pair has been moving towards lower highs and lower lows over past few days. In the four-hour chart, the pair fell and closed below the big consolidation pattern. The pair closed and was trading below 20Dsma 123.20. The double top was formed at 124.45. These were few bearish factors behind that.

The 20Wsma is found at 121.20 and 50Dsma at 122.20. At yesterday's session, the pair managed to close above 50Dsma. These are bullish factors.

Ahead of the FOMC meeting minutes release, USD is trading lower against JPY.

In the H1 and H4 charts, the price is trading below hourly moving averages.

Intraday resistance is seen at 122.85, 122.95, and 123.20. Intraday support is found at 122.60, 122.30, and 122.00. Until the pair closes below 123.20, bearish view remains in play. We recommend fresh buying only after the FOMC meeting minutes release.

If risky traders wish to start buying, it will be available above 123.30 with targets at 123.45, 123.60, and 123.90. Strong bullish momentum is expected above 124.00 towards the previous double top at 124.45.

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Technical analysis of USD/CAD for July 07, 2015

Economic activity in the non-manufacturing sector grew in June for the 65th consecutive month. The NMI registered 56 percent in June, 0.3 percentage point higher than May's reading of 55.7 percent. The non-manufacturing sector continues to grow at a slightly faster rate. The Non-Manufacturing PMI increased to 61.5 percent, which is 2 percentage points higher than 59.5 percent in May, reflecting growth at a faster rate for the 71st consecutive month.

Falling oil prices depressiat CAD against USD. The June Canada PMI fell to 55.90, which is another factor behind weakness of CAD.

Ahead of the FOMC meeting minutes, USD is trading lower against CAD at today's Asian session. The 20Wsma is found at 1.2400 and the parallel resistance is seen at 1.2667 and 1.2711. Bulls laid a strong base in different layers initiated at 1.2200, later extended at 1.2300 and 1.2400. The hourly oscillators indicate overbought, negative divergence has been formed in the H1 and H4 charts. We can observe higher highs and higher lows in the daily and hourly charts. In case of positive news from Greece big moves in EUR/USD and big falls in USD/CAD. This is the only pair taken an advantage from the Greek saga in the near term. The oil prices help CAD rebound.

We have been recommending buying at 1.2380 with targets at 1.2560, 1.2660, and even 1.2800. Now, 1.2665 is done. We are a bit concerned about big negative divergence in the hourly charts. We expect maximum 1.2760 or 1.2800 from here on. We are approaching the FOMC meeting minutes. We request traders to book profits once at today's session. After the FOMC event we will open trades again. Intraday support is found at 1.2630, 1.2500, and 1.2460. Resistance is seen at 1.2670, 1.2720, and 1.2770. Intraday fresh buying is available above 1.2680 with targets at 1.2710, 1.2750, and 1.2780 only for risk traders. Bears can sell at higher levels and hold there during next 1 or 2 days. The pair makes a strong bullish breakout on the symmetric triangle. Ahead of the FOMC meeting, we expect mild correction in coming days.

Today, traders eye the US and Canadian trade balance. Bulls can reach 1.2770 at today's session. Use rises to sell.

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Technical analysis of EUR/USD for July 07, 2015

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When the European market opens, economic data on the French Trade Balance, French Gov Budget Balance, and German Industrial Production m/m is due. The US will release economic data about IBD/TIPP Economic Optimism, JOLTS Job Openings, and Trade Balance. So amid the reports, EUR/USD will move low to medium volatility during this day.

TODAY TECHNICAL LEVELS:

Breakout BUY Level: 1.1100.

Strong Resistance:1.1094.

Original Resistance: 1.1083.

Inner Sell Area: 1.1072.

Target Inner Area: 1.1046.

Inner Buy Area: 1.1020.

Original Support: 1.1009.

Strong Support: 1.0998.

Breakout SELL Level: 1.0992.

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 July 07, 2015

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n Asia, Japan will not release any economic data, but the US is expected to unveil data about IBD/TIPP Economic Optimism, JOLTS Job Openings, and Trade Balance. So, there is a strong probability that USD/JPY will move with low volatility during the Asian session, but with low to medium volatility during the US session.

TODAY TECHNICAL LEVELS:

Resistance. 3: 123.37.

Resistance. 2: 123.12.

Resistance. 1: 122.89.

Support. 1: 122.60.

Support. 2: 122.36.

Support. 3: 122.12.

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.

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

Daily analysis of USDX for July 07, 2015

The USDX remains alive in the bullish cycle formed on the daily chart, because the index stays above the support level of 95.74 and it's looking to trade above 96.57. If that happens in the short term, it would be expected to test the next resistance located around 97.57. The MACD indicator is still at positive territory.

USDXDaily.png

In the H1 chart, the USDX continues to trade sideways and it's looking to develop clearer intraday structure. That's why the index is calling for more upside room and it would be expected to test the resistance level of 96.65 again. However, a pullback shouldn't be discarded yet. It could be extended until the 200 SMA.

USDXH1.png

Daily chart's resistance levels: 96.57 / 97.57

Daily chart's support levels: 95.74 / 94.66

H1 chart's resistance levels: 96.38 / 96.65

H1 chart's support levels: 96.13 / 95.89

Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the US Dollar Index breaks with a bullish candlestick; the resistance level is at 96.38, take profit is at 96.65, and stop loss is at 96.13.

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

Daily analysis of GBP/USD for July 07, 2015

GBP/USD found bottom around the 200 SMA on the daily chart and now we could expect some kind of rebound over there in order to reach the resistance level of 1.5755. However, if the pair does a breakout at the support level of 1.5543, it would be expected to test a low around 1.5450. The MACD indicator is still at negative territory.

GBPUSDDaily.png

On the H1 chart, GBP/USD was rejected by the support level of 1.5537 and it would be expected to reach the resistance level of 1.560 where the 200 SMA is located in this time frame. That moving average could serve as dynamic resistance because the pair is still weak in the short term, but the current structure could turn bullish if a breakout above the 1.5650 level happens.

GBPUSDH1.png

Daily chart's resistance levels: 1.5755 / 1.5898

Daily chart's support levels: 1.5543 / 1.5450

H1 chart's resistance levels: 1.5589 / 1.5650

H1 chart's support levels: 1.5537 / 1.5471

Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the GBP/USD pair breaks a bullish candlestick; the resistance level is at 1.5650, take profit is at 1.5688, and stop loss is at 1.5611.

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Daily analysis of major pairs for July 7, 2015

EUR/USD: The EUR/USD pair and most other EUR pairs opened with downward gaps this week. Gaps have been filled in most cases, but the EUR/USD pair remains in a bearish trend. The price needs to break the support line at 1.0950 to the downside. As long as the price is not able to breach the resistance line at 1.1250 to the upside, the bearish outlook would be rational.

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USD/CHF: This is a bullish market and the price would continue going further north; especially in the face of continued weakness in the EUR/USD pair. The recalcitrant resistance level at 0.9500 is a major obstacle to bulls: only stronger buying pressure would cause a breakout.

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GBP/USD: There is a 'sell' signal on this pair, but it needs to break the accumulation territory around 1.5550 to the downside. Unless the distribution territory at 1.5800 is overcome, the 'sell' signal would be in place.

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USD/JPY: The USD/JPY pair is currently a market in which short-term traders and scalpers thrive. There have been short-term swings in the market as the price oscillates between the supply level at 124.00 and the demand level at 122.00. There is a need for a break above the aforementioned supply level or demand level before there could be a strong directional movement.

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EUR/JPY: This cross opened with a gap down, but quickly recovered afterwards. This is exactly what happened last week (only that the last week movement was stronger). There is a Bearish Confirmation Pattern in the market and movement to the south is the most probable.

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

cadweekly.pngcaddaily.png

Overview:

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

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

Daily fixation below 1.2300 opened a way towards the levels of 1.2000 and 1.1940 (the depicted weekly uptrend) for the USD/CAD pair. Bullish support was offered around these levels. A bullish pullback took place shortly after.

Recently, the price zone of 1.2450-1.2500 constituted strong resistance (backside of the broken uptrend and the previous consolidation zone).

As anticipated, a daily candlestick closure below 1.2430 (previous week) enhanced further bearish decline. Since then, the price zone around 1.2400 has constituted solid intraday resistance for the USD/CAD pair.

However, the previous weekly candlestick closed at 1.2270 (reflecting lack of enough bearish momentum). That is why, an extensive bullish corrective movement is now being expressed on the chart.

On the other hand, the USD/CAD pair needs a frank weekly closure below 1.2300 to ensure further bearish decline in the long term.

However, persistence above the level of 1.2400 enhanced a bullish pullback towards 1.2600 (the key level depicted on the chart) where a valid SELL entry can be offered.

The price zone of 1.2600-1.2650 should be defended by bears (upper limit of the weekly channel as well as a prominent daily resistance).

On the other hand, a daily closure above 1.2650 hinders this bearish scenario for some time. This should be our S/L for the previously mentioned SELL entry.

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

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

April's monthly candlestick came as a bullish engulfing one. However, the next monthly candlesticks (May and June) reflect bearish rejection being expressed around 1.1450.

In the long term, a bearish breakout of the monthly demand level at 1.0550 should not be excluded as the long-term projection target is located at 0.9450.

However, a bullish corrective movement towards 1.1500 may be executed ONLY if May's monthly high 1.1465 gets breached (considered a low probability now).

eurusddaily.png

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

Multiple ascending bottoms were established around the levels of 1.0470, 1.0550, and 1.0850. These levels corresponded to the daily uptrend depicted on the chart.

Further bullish pressure was observed until bearish rejection was applied around 1.1400 (slightly below the depicted daily supply level).

This week, the market opened around the level of 1.1000 (following a large bearish gap). The level of 1.1000 corresponds to the depicted daily uptrend. That is why, an ascending bottom was expected to be established there.

Another re-closure below the level of 1.1150 brought the EUR/USD pair towards 1.1000 again where the uptrend is possible (significant demand level depicted on the chart).

The EUR/USD bulls must keep trading above 1.1000, so that further bullish advancement can be achieved. Initial bullish target would be located at 1.1150 and 1.1300 (a prominent supply level to be watched).

On the other hand, a daily closure below level of 1.0980 hinders the ongoing bullish scenario. Hence, a quick bearish decline towards 1.0850 would be imminent.

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Intraday technical levels and trading recommendations for GBP/USD for July 6, 2015

gbpusdweekly.png

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

Shortly after, persistence above the levels of 1.5000-1.5080 exposed the weekly key zone of 1.5500-1.5550 where significant bearish pressure was previously applied on February 22.

Last month, the market has been pushed above this weekly key zone at 1.5550 in an attempt to reach the area around 1.5900 (100% Fibonacci Expansion) which provided evident supply for the GBP/USD pair.

As anticipated, a bearish pullback was initiated towards 1.5550 that should be watched for a bullish price action (the current weekly candlestick closure should be monitored by the end of this week).

gbpusddaily.png

A bearish breakout of the depicted bullish channel took place as a result of the bearish pressure around 1.5780 and 1.5660 (bearish engulfing candlesticks and lower highs).

After a bearish breakout of 1.5500-1.5550 (lower limit of the broken channel), the market failed to gather enough bearish momentum towards the intraday demand level of 1.5100.

Significant bullish pressure was observed around 1.5200. Hence, a bullish swing was established towards 1.5780 (61.8% Fibonacci level) and 1.5880 (FE 100%).

As anticipated, the price zone of 1.5800-1.5880 remains a significant supply zone for the GBP/USD pair. It offered a valid sell entry last week. S/L should be lowered to 1.5680. All T/P levels were successfully reached.

On the other hand, the current price level at 1.5550 constitutes a significant demand level for the pair (corresponding to 50% Fibonacci level and a previous prominent top).

It should be watched for a valid buy entry if signs of bullish rejection are expressed on the H4 chart. Initial bullish target would be located at 1.5680-1.5700.

On the other hand, DAILY closure below 1.5500 is an early sign to exit the previously mentioned BUY entries with small losses (without waiting for the weekly closure).

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