Intraday technical levels and trading recommendations for EUR/USD for July 23, 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.

EUR/USD bears have already pushed the price slightly below the monthly demand level at 1.0550 (established on January 1997). Bullish recovery was expressed shortly after.

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

In the long term, a projection target is still located at 0.9450 provided that a bearish breakdown of the monthly demand level at 1.0550 occurs soon.

A bullish corrective movement towards 1.1500 could have been possible only if May's monthly high at 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 (long-term double-top reversal pattern).

A daily closure below the level of 1.1150 brought the EUR/USD pair to 1.1000 again where the uptrend came to meet the EUR/USD pair.

As anticipated, a bearish daily closure below 1.0950 enabled a quick bearish decline towards 1.0850 (was already reached) and 1.0700 yet to come (projection target for the reversal pattern).

Initial bullish recovery was manifested yesterday after hitting the level of 1.0810. Bulls have been trying to bring a bullish corrective movement towards 1.1000.

The current bullish pullback towards the recently-established supply zone (price zone of 1.0950-1.0990) can offer a valid sell entry. S/L should be located above 1.1050. T/P levels should remain at 1.0850 and 1.0700.

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Gold: analysis for July 23, 2015

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Overview:

Since our last analysis, gold has been trading sideways around the level of $1,095.00. According to the daily time frame, we can observe a weak downward bar in a high volume, so selling at this stage looks risky. According to the H1 time frame, we can observe low volatility and weak price actions. Since the price has broken support at $1,132.00, we may expect potential testing of the level of $1,035.00 (monthly support). Watch for potential selling opportunities after retracement. Selling climax is active so selling at this stage looks risky because of a possible bullish correction.The resistance level is around $1,118.00.

Daily Fibonacci pivot points:

Resistance levels

R1: 1,094.85

R2: 1,096.00

R3: 1,100.00

Support levels:

S1: 1,087.00

S2: 1,085.70

S3: 1,082.00

Trading recommendations: Supply in an ultra high volume (selling climax) is in the background. Selling gold at this stage looks risky, so watch for potential retracement. Moreover, every selling climax is potential hidden buying by professionals, so trade carefuly.

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Technical analysis of Gold for July 23, 2015

Technical outlook and chart setups:

Gold is seen trading around the $1,100.00/01.00 levels at the moment after having tested recent lows at the $1,085.00/87.00 levels again yesterday. The metal might consolidate in this range for a while before breaking lower towards the $1.050.00/30.00 levels. It is hence recommended to remain flat for now and look to sell rallies through the $1,130.00/40.00 levels. Immediate support is seen at the $1,085.00 levels followed by $1,050.00, $1,030.00 (past resistance turned support) and lower, while resistance is seen at $1,130.00/40.00 (interim) followed by $1,175.00 and higher respectively.

Trading recommendations:

Remain flat for now.

Good luck!

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Technical analysis of Silver for July 23, 2015

Technical outlook and chart setups:

Silver is trading around the levels of $14.87/90 now drifting in a tight consolidation range as shown here. The metal is testing the resistance line at the moment, and a push higher could take prices to at least $15.40/50. Please note that reversal in a trend shall only be confirmed with a break above $15.90. It is recommended to remain long with risk at $14.25. Immediate support is seen at $14.50/60 followed by $14.25 and lower while resistance is seen at $15.40/50 (interim) followed by $15.90, $16.20, and higher respectively.

Trading recommendations:

Remain long until prices stay above $14.25.

Good luck!

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Technical analysis of AUD/USD for July 23, 2015

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Overview :

  • The AUD/USD pair has still moved between 0.7327 and 0.7490 since last week (trading in sideways). Equally important, the resistance set at the level of 0.7524 and support is at 0.7324. But today, the minor support is found at 0.7345. Accordingly, if the trend fails to close below the level of minor support (0.7345), it will be a good opportunity to buy above 0.7340 with the first target at 0.7455. It is expected to continue straight towards 0.7524 in order to test the weekly resistance. Notwithstanding, the stop loss should always be taken in account because it should never exceed your maximum exposure amounts. Consequently, the best location to set your stop loss should be placed below the double bottom at the level of 0.7327.
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Technical analysis of EUR/JPY for July 23, 2015

Technical outlook and chart setups:

The EUR/JPY pair is seen to be trading around 136.10/15 at the moment. Please note that the pair had taken fibonacci 0.786 support at 134.00 levels earlier and resumed its rally. The pair is expected to inch higher towards 139.00 and 140.00 respectively. It is hence recommended to hold long positions taken earlier, and also look for an opportunity to add further during intraday dips. Immediate support is seen at 135.00 (interim), followed by 134.00, 133.00, and lower while resistance is seen at 137.00 (interim) followed by 139.00, 140.00, and higher respectively.

Trading recommendations:

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

Good luck!

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EUR/NZD : analysis for July 23, 2015

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Overview:

Recently, EUR/NZD is moving upwards. The price tested the level of 1.6386 in a volume above the average. In the daily time frame, we can observe a demand bar in a volume below the average. There is also an inside-bar formation at the level of 16677 (held successful) and a low (support) at 1.6340. Watch for a potential breakout of inside-bar support or resistance. Besides, the price has broken our upward trendline. The short-term trend is neutral, but the mid-term trend is still bullish. I am still waiting for larger liquidity and stronger price actions to confirm the further direction.

Fibonacci Pivot Points :

Resistance levels:

R1: 1.6625

R2: 1.6660

R3: 1.6715

Support levels:

S1: 1.6513

S2: 1.6480

S3: 1.6425

Trading recommendations: Buying EUR/NZD at this stage looks risky since we have the fake breakout in the background.

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Technical analysis of GBP/CHF for July 23, 2015

Technical outlook and chart setups:

The GBP/CHF pair is seen to be trading lower around 1.4900 at the moment after hitting a fresh high at 1.5050. Support was found at 1.4875 today. The pair should be looking for an opportunity to continue drifting lower in a corrective manner towards 1.4690/1.4700 levels (which is the fibonacci 0.618 support level) as depicted here. Please also note that the support trendline is also passing through the same region. It is hence recommended to initiate fresh short positions around 1.5000 with risk at 1.5100. Immediate support is seen at 1.4850 levels, followed by 1.4550, 1.4450, and lower while resistance is seen at 1.5050 and higher respectively.

Trading recommendations:

Initiate fresh short positions around 1.5000, stop is at 1.5100, a target is open.

Good luck!

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Technical analysis of EUR/USD for July 23, 2015

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Overview:

  • The EUR/USD pair has broken a major resistance at the level of 1.0950 (pivot point). But in case the daily resistance becoms support at 1.0950, the market will indicate a bullish opportunity from the area of1.0950/1.0940. Additionally, it is approaching this spot in order to test it; therefore, it will probably start moving upside in this area and recover again. So, the market will indicate the bullish opportunity at the level of 1.0950/1.0940 (above these levels look for further upside) and it will be a good sign to buy at this spot with the first target at 1.1020. It is likely to continue towards 1.1073 (the double bottom will set at the point of 1.1073). However, if a break of 1.0918 takes place, it will be a good area to plac the stop loss.

Notes:

  • It should be noted that the market will turn bullish from the level of 1.0950.
  • Volatility: 241.27; therefore, the market indicates the higher volatility.
  • Stop loss should never exceed your maximum exposure amounts. Moreover, risks to reward ratios are important and should be calculated.
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Global macro overview for July 23, 2015

Global macro overview for 23/07/2015:

The Reserve Bank of New Zealand reduced the Official Cash Rate (OCR) by 25 basis points to 3.0 percent today. This is the third rate cut since 2014, and the RBNZ continues reversing the period of rate hikes. The RBNZ has justified this cut by softening economic outlook (annual rate of 2.5%) and low inflation (below the central banks 1% to 3% target).

Nevertheless, despite the rate cut, the New Zealand dollar climbed by 1.5% against the US dollar. The market reaction is unlikely to be explained with the fact that the RBNZ statement was dovish (the further rate cuts are likely), but lack of aggressive tone and commitment for further easing that had been anticipated by market participants resulted in temporary NZD rally to the edge of the channel at the level of 0.6694.

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Forecast of EUR/CAD for July 23, 2015

The Greek government is likely to get enough votes in Parliament. As of now, the Greek Parliament voted with final result: 230 in favor, 63 against, and 5 abstentions.

Traders eye today US unemployment claims and Canada core retail sales. In May and June, core retail sales data was weak.

Technical view: The cross made a double bottom at 1.4065, moving higher for 4 consecutive days. We can observe higher lows and higher highs in the daily and four-hour charts/

In case of disappointing Canadian retails sales, the cross is likely to head towards 1.4400 during a day or two. The resistance is seen at 1.4375 and weekly resistance is seen at 1.4320. The cross managed to breach and close above the falling wedge.

At today's session, the cross must close above 1.4260. Otherwise, we will expect a price correction in a day or two.

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Technical analysis of USD/CAD for July 23, 2015

The USD/CAD pair is trading near the monthly resistance at 1.3063. It reached a high of 1.3053.

The US existing-home sales increased in June at the highest pace in eight years. All major regions experienced sales gains in June and have now risen above year-over-year levels for six consecutive months.

Traders eye today US unemployment claims and Canada core retail sales. In May and June, core retail sales data was weak.

Technical view: the pair failed to breach the previous high of 1.3053, immediate resistance is seen at 1.3063.

All time intervals generate signals of overbought . In the four-hour chart, negative divergence is indicated. In case the pair manages to breach above 1.3065, bulls will try to reach 1.3100 and 1.3140 during the day. Due to the negative divergences, the pair is unable to sustain at the higher levels, we guess.

Intraday support is found at 1.3010, 1.2980, and 1.2950. Support base is seen around 1.2900. The selling pressure accelerates below 1.2900. Risky traders can open selling positions below 1.3010, safe traders - below 1.2980.

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Global macro overview for July 23, 2015

Global macro overview for 23/07/2015:

Yesterday, the Greece government approved the EU demand by passing the second bundle of policy measures. This move was absolutely necessary to keep Greece in the eurozone. The 300 seat parliament approved the deal persuaded by Tsipras argumentation and 151 lawmakers finally agreed. The details of the deal revealed new banking rules protecting the taxpayers from the costs of bank failures. This law will come into force at the beginning of 2016.

The market reaction was largely positive. EUR/USD bounced from the key support at the level of 1.0815. Currently, the market is trading at the level of 1.0987 trying to test the golden trendline. Any breakout higher will lead to immediate test of the next resistance at the level of 1.1200.

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Forecast of Gold for July 23, 2015

The metal hit a new low at 1086.70 managing to hold the support level of 1085.00. It closed at 1093.80. The metal closed at the psychological barrier of $1,100.00 at yesterday's session as well.

The US existing-home sales increased in June at the highest pace in eight years. All major regions experienced sales gains in June and have now risen above year-over-year levels for six consecutive months.

The world's largest gold ETF, SPDR Gold Trust holdings, faced a decline in output of 0.35%, to 687.31 tons compared to the previous day.

Goldman Sachs expects gold prices to fall below $ 1,000 an ounce this year.

According to UBS Wealth Management Giovanni Staunovo, the market is now betting that the Fed will raise interest rates at least once during the year, which means an opportunity of rising holding gold cost. Gold prices are seen to be trading at $ 1,050.00 during the next three months.

Technical forecast : The yellow metal was trading at $1,099.00 during today's Asian session compared to Wednesday's closing price of $1,093.80 . The weekly trading pattern is framed between $1,085.00 and $1,110.00. A close on either side will lead to more room to trade. In the weekly chart, the metal managed to hold the channel support trend line at $1,085.00. The metal has been reaching lower highs and lower lows breaking below the large bearish head & shoulder pattern.

In all time frames, the precious metal lost all moving averages. At yesterday's session, we advised against fresh selling. Selling accelerates only below $1,085.00. Gold fell $ 1086.90, and the highest since March 24, 2010 the lowest closing level.

The weekly support is found at $1,085.00, $1,068.00, and $1,060.00. A weekly close below $1,085.00 opens gate $1,068.00, $1,045.00, and $1,005.00. In the monthly chart, strong support zone is seen between $1,045.00 and $1,032.00. The metal fell below the 14-year ascending trendline in the monthly chart. The strong supply zone is seen at $1,134.00, $1,142.00, and $1,163.00 in the extreme case.

Intraday: In the hourly chart, the metal indicates positive divergence, a pullback is expected ahead of the US jobs data release. Intraday resistance is seen at $1,101.00, $1,103.00, and $1,109.50. Huge short covering will take place above $1,112.00 towards $1,118.00 and $1,120.00. Intraday support is found at $1,093.00, $1,090.00, and $1,085.00. Selling is available below $1,093.00

Until the metal holds the $1,085.00 level, range bound is seen between $1,112.00 and $1,085.00.

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USDX technical analysis for July 23, 2015

The US Dollar index is pulling back in a corrective pattern as we expected two days ago. Despite yesterday's bounce towards 97,80, we saw a rejection at the 61.8% retracement of the latest decline. Now, we see new lows below 97.10 towards cloud support.

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Black lines - bullish channel

The US Dollar Index remains inside the medium-term bullish channel and is now testing Ichimoku cloud support as shown in my 4-hour chart. Support is found at 96.80 while resistance is at 97.60 by the kijun-sen (yellow indicator) and at 97.80 the recent high.

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In overall, the US Dollar Index is back testing the kijun-sen (yellow indicator) in the weekly chart. If the bullish scenario comes true, we should see a strong bounce from this support area. If the weekly chart closes below 95.80, the bullish scenario will be in danger. The rise so far from 93.10 is in 3 waves and this implies a correction. Therefore we will need some upside resumption in order to enable bulls to remain in control. Otherwise, the bearish scenario of a deeper correction towards 90 restarts will take place.The material has been provided by InstaForex Company - www.instaforex.com

Gold technical analysis for July 23, 2015

Gold price has managed to reach early Monday's lows and is bouncing towards $1,100 now. The fact that the early Monday low is held increases the chances of a bigger bounce towards $1,130. However, a longer-term trend remains bearish.

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Red line - short-term trend line resistance

In the 15-minute chart shown above, gold price is hitting lower lows and lower highs. The price is testing the short-term trend-line resistance. A move above $1,100 could bring some more buyers and push the price back towards the 1st resistance at $1,117 at the 38% retracement.

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Red line - trend line resistance

Blue line- longer-term trend line resistance

Gold price remains below the Ichimoku cloud and the blue trend line in the 4-hour chart. However, the recent price action has brought price above the tenkan-sen (red line) indicator and this could imply a push higher towards $1,120 where the kijun-sen (yellow line) indicator is found. Bears should be very cautious now as we could see a bigger bounce if we break above $1,100.

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Technical analysis of USD/CAD for July 23, 2015

General overview for 23/07/2015 09:30 CET

The impulsive wave development is in progress now as wave 2 black hit a low at the level of 1.2915. Currently, the market could try to test the golden trendline from the upside and bounce to continue its rally. Target is still seen at the level of 1.3072 (weekly pivot resistance level 3).

Support/Resistance:

1.3072 - WR3

1.3052 - Intraday Resistance

1.3022 - WR2

1.3006 - WR1

1.2955 - Weekly Pivot

Trading recommendations:

The buy orders opened yesterday should be still kept open as the TP at the level of 1.3072 might be hit any time now.

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Technical analysis of GBP/USD for July 23, 2015

BoE minutes:The Committee set its monetary policy to meet a 2% inflation target in the medium term, and in a way to help to sustain growth and employment. As expected, the twelve-month CPI fell to 0.0% in June after a 0.1% rise in May .

The Bank of England should maintain the stock of purchased assets financed by the issuance of central bank reserves at £375 billion.

BoE July minutes revealed that the rate is expected to be raised.

The US existing-home sales increased in June to the highest level in eight years. All major regions experienced sales gains in June and have now risen above year-over-year levels for six consecutive months.

Today, traders eye UK retail sales and US unemployment claims. We expect UK retail sales to come out on a positive side.

Technical overview: Amid recent developments, the cable trading pattern still favors bulls. Earlier, we had forecasted that the cable should re-test 1.5500, but it hit a low at 1.5530 changing its direction. We have been advising buying on dips with sl 1.5450. Now, the stop loss moved to 1.5530. The cable has been moving towards higher lows and higher highs in the daily and four-hour charts.

After a 6-day consolidation, the cable finally closed above 20Dsma. We have been forecasting: "A strong close above 1.5600 20Dsma is likely to remove bulls back on track to 1.5670 initially and to 1.5700 later", we still remains with the same strategy. In case follow up buying is available today, bulls are likely to breach the earlier cap 1.5700. In this case, gates to 1.5800 will be open. The cable broke the 3-month ascending trendline and is still trading below that.

The 50Wsma is seen at 1.5600, and the 20Wsma is found at 1.5270.

Bulls: The cable posted a break from the bullish broadening wedge, closing above that line. The trend favors buying on dips with sl 1.5530 earlier recorded was sl 1.5450. The 50Dsma is found at 1.5560, and 100Dema is found at 1.5450. Intraday support is found at 1.5580. Resistance is seen at 1.5650 and 1.5675.

Intraday buying is available above 1.5650 with targets at 1.5670, 1.5700 and 1.5750. We remain bullish in the long term.

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Technical analysis of EUR/JPY for July 23, 2015

General overview for 23/07/2015 09:20 CET

The first indications of a possible impulsive upside rally occurred on the market. The recent wave five progression to the upside had been labeled as the leading diagonal wave i blue and now the market awaits three wave corrective cycle. To confirm this labeling, the market can not violate intraday support at the level of 134.86 and it should break out above the golden trendline when the corrective cycle is completed.

Support/Resistance:

134.86 - Intraday Support

135.04 - Weekly Pivot

135.34 - WR1

135.85 - Intraday Resistance

136.17 - WR2

136.77 - WR3

Trading recommendations:

Daytraders should consider opening buy orders from the levels closest to the intraday support with SL just below the level of 134.80 and TP at the level of 135.85.

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Technical analysis of EUR/USD for July 23, 2015

The pair managed to trade higher initially. After the US data the pair closed with losses.

Standard & Poor's upgraded Greece's sovereign rating from CCC- to CCC +.

The Greek government is likely to get enough votes in Parliament. As of now, the Greek Parliament voted with final result: 230 in favor, 63 against, and 5 abstentions.

Existing-home sales increased in June hitting their highest level in eight years. Sales in all major regions gained in June.

The pair closed below 20Wsma. The pair made a large distribution between 1.1467 and 1.1437. In the daily chart, the pair lost all moving averages. The nearest support is found at 1.0785. The 20Wsma is seen at 1.1020. The double top is formed at 1.0970. In different time intervals, hourly and daily charts, the oscillators indicating oversold market.

The pair has been reaching lower lows and lower tops falling below the lower end of the ascending trendline. Twice we recommend fresh selling only below 1.0780 initially with a target at 1.0720 and 1.0630 later, but it is not triggered yet.

The pair hit a higher high in the H1 chart for the first time in 10 days, but ended with a double top. Intraday resistance is seen at 1.0940, 1.10970, and 1.1020. Support is found at 1.0920, 1.0890, and 1.0860. Monthly support is found at 1.0730. In case the pair loses 1.0850, selling towards 1.0820 and 1.0800 will be available.

Intraday selling is available below 1.0850 and buying is seen above 1.0970 with small targets at 1.1000 and 1.1020.

Today's trade remains will depend on US unemployment claims and Spanish unemployment rate.

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Elliott wave analysis of EUR/NZD for July 23, 2015

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Technical summary:

A back-test of the broken support-line has been seen and we are looking for a decline to the bottom of wave (iv) at 1.6035, which also marks the 23.6% corrective target of a rally in wave 1. This correction is wave 2 could be deep, but we have seen the cross producing only very small corrections in the second wave and therefore do not want to overstate the downside potential.

Trading recommendation:

We sold EUR at 1.6565 with stop placed at 1.6640 and take profit placed at 1.6125. Do not be too aggressive towards the downside thus.

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Elliott wave analysis of EUR/JPY for July 23, 2015

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Technical summary:

As long as minor support at 134.83 protects the downside, we will stay cautiously bullish for a break above resistance at 136.38 and more important a break above resistance at 137.80 confirming a continuation higher to 141.06 and 144.03.

To alter the bullish count a break below important support at 133.27 will be needed, but a break below here will leave us with a three wave rally from 126.05 and call for a new decline to this low.

Trading recommendation:

We are long EUR from 134.07 and will move our stop here to 134.75. If you are not long EUR yet, then buy EUR upon a break above 136.38 and use the same stop at 134.75.

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Technical analysis of EUR/USD for July 23, 2015

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When the European market opens, the economic news on Consumer Confidence, Spanish Unemployment Rate, and Greek Gov Debt Crisis Vote is due.The US will release economic data about Trade Balance. So amid the reports, EUR/USD will move low to medium volatility during this day.

TODAY TECHNICAL LEVELS:

Breakout BUY Level: 1.0977.

Strong Resistance:1.0971.

Original Resistance: 1.0960.

Inner Sell Area: 1.0949.

Target Inner Area: 1.0924.

Inner Buy Area: 1.0899.

Original Support: 1.0888.

Strong Support: 1.0877.

Breakout SELL Level: 1.0871.

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 23, 2015

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In Asia, Japan will release data on the Trade Balance, and the US will release economic data about Natural Gas Storage, CB Leading Index m/m, and Unemployment Claims. So, there is a strong probability that the USD/JPY pair will move with low to medium volatility during the day.

TODAY TECHNICAL LEVELS:

Resistance. 3: 124.69.

Resistance. 2: 124.45.

Resistance. 1: 124.21.

Support. 1: 123.91.

Support. 2: 123.66.

Support. 3: 123.42.

Disclaimer: Trading Forex (foreign exchange) on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

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Daily analysis of USDX for July 23, 2015

At daily chart, the USDX is currently inside a corrective range, where we are currently watching downside moves in favor of the overall bullish bias. There is also a higher high pattern formation in this time frame and bear in mind that a breakout around the level of 97.57 will open doors to the resistance zone of 98.29.

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The short-term picture is giving us a possible buy trade idea, because the Index is finding dynamic support at the 200 SMA on the H1 chart. However, the USDX is dealing with the resistance level of 97.53. If the Index achieves a break in that zone, it would be expected to test the zonr around 97.77 in coming days. The MACD indicator is entering the negative territory.

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Daily chart's resistance levels: 97.57 / 98.29

Daily chart's support levels: 96.57 / 95.63

H1 chart's resistance levels: 97.53 / 97.77

H1 chart's support levels: 97.12 / 96.73

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 97.53, take profit is at 97.72, and stop loss is at 97.31.

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Daily analysis of GBP/USD for July 23, 2015

GBP/USD performed a rebound above the 200 SMA on the daily chart, where dynamic support was found. Because of it, we want to see a test of the area around the resistance level of 1.5640. We could take the current pattern as a bullish one and that is why we could expect a rise above that resistance mentioned above.

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The H1 chart is already showing a bullish consolidation above the 200 SMA and now the nearest target is located at the resistance level of 1.5639. A breakout over there will lead to this pair to test the resistance zone of 1.5672. However, this outlook will get invalidated when GBP/USD does a breakout of the support level of 1.5524 during this week.

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Daily chart's resistance levels: 1.5640 / 1.5755

Daily chart's support levels: 1.5543 / 1.5450

H1 chart's resistance levels: 1.5639 / 1.5672

H1 chart's support levels: 1.5596 / 1.5524

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 1.5639, take profit is at 1.5672, and stop loss is at 1.5554.

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Daily analysis of major pairs for July 23, 2015

EUR/USD: The currency pair faced resistance at the level of 1.0950. There is a stromg possibility that the price could fall lower reaching the support line at 1.0850. An ultimate target is seen at the support line of 1.0800, and unless USD loses its strength in, it would be attained. Moreover, fundamental data is due today and it can have a significant impact on the market.

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USD/CHF: As we had expected, the USD/CHF failed to resume its northward journey. The price is above the support level at 0.9600 now, and it could continue going further north, reaching the resistance level at 0.9650.

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GBP/USD: the cable is moving in a clean bullish bias despite the current market consolidation. Bulls are still making attempts to drive the price further upwards. A break above the distribution territory at 1.5650 would result in a stronger Bullish Confirmation Pattern in the chart; since the distribution territory has been a major impediment to bulls' interests (the price was unable to break it upwards last week).

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USD/JPY: yesterday's drop in the price proved to be temporary. It was a wonderful opportunity to buy long in this market. The supply level at 124.50 might thus be reached in no time.

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EUR/JPY: On the 4-hour chart, the EMA 11 is below the EMA 56, but the RSI period 14 is above the level of 50. It is therefore better to stay away from this market until there is a clear signal.

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Technical analysis of USD/JPY for July 22, 2015

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USD/JPY is expected to consolidate with bullish bias. USD/JPY is underpinned by the positive dollar sentiment (ICE spot dollar index last 97.96 versus 97.66 early Friday) on a larger-than-expected 9.8% on-month increase in the US June housing starts (versus forecast +7.1%), while +0.3% US June CPI (matching forecast) bolstered expectations that the Federal Reserve will begin tightening its policy this year. USD/JPY is also supported by the Bank of Japan's ultra-loose monetary policy, reduced safe-haven appeal of the yen as investor risk aversion recedes (VIX fear gauge eased 1.32% to 11.95; S&P 500 closed up 0.11% at 2,126.64 Friday) amid easing concerns about Greece and signs of stabilization in China stock markets. But USD sentiment is dented by the weaker-than-expected US July preliminary University of Michigan consumer sentiment index of 93.3 (versus forecast 95.5). USD/JPY upside is also limited by the profit-taking on short JPY positions and buy-yen orders from Japan's exporters.

Technical comment:

The daily chart is still positive-biased as the MACD and stochastics are bullish, although the latter one is at overbought levels. 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 124.35 and the second target at 124.60. In the alternative scenario, short positions are recommended with the first target at 123.70 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 123.35. The pivot point is at 123.90.

Resistance levels: 124.35 124.60 124.90

Support levels: 123.70 123.35 123

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GBP/USD intraday technical levels and trading recommendations for July 22, 2015

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Overview:

On April 9, the bearish trend was resumed towards the level of 1.4550 where a lower daily bottom was reached. This is where the ongoing bullish swing was initiated.

A daily closure above 1.5060 exposed the next resistance levels at 1.5400 and 1.5450 where a temporary bearish pullback took place on April 29.

The next bullish swing extended up to the levels of 1.5750-1.5800, which offered traders few valid sell entries (depicted with red arrows). The final bearish target at 1.5450 was already reached.

Recently, strong bullish pressure was applied against the resistance levels around 1.5800 via the ongoing bullish swing.

That is why, the resistance level at 1.5800 was temporarily breached. Hence, GBP/USD bulls pursued towards 100% Fibonacci Expansion located around 1.5900 where the depicted successive lower highs were initiated.

Hence, the level of 1.5555 (prominent demand level/depicted uptrend line) got breached due to excessive bearish pressure. This enhanced the bearish side of the market towards 1.5360.

The level of 1.5555 (prominent demand level/depicted uptrend line) got breached earlier last week due to excessive bearish pressure. This enhanced the bearish side of the market towards 1.5360.

As suggested in our previous articles, a bullish pullback towards 1.5550-1.5600 should be expected.

Our suggested sell entry around 1.5600 got triggered last week. It is trading slightly above entry levels. Early exit should be considered if the current daily candlestick maintains its closure above 1.5550.

Note that fixation below the price zone of of 1.5550-1.5500 is mandatory to pursue towards lower bearish targets, initially at 1.5450.

On the other hand, a better SELL entry with a lower risk/reward ratio will probably be offered around the price level of 1.5780 (the backside of the broken uptrend).

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USD/CAD intraday technical levels and trading recommendations for July 22, 2015

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Overview:

When bulls pushed the price further above 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 a formation of successive lower highs (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).

Bullish support was found around these levels. Successive higher lows were established. Bullish pressure was applied against the resistance levels of 1.2450 and 1.2500 (previous tops).

On the other hand, the previous weekly candlestick came FRANK bullish. That is why, an extensive bullish movement is being seen on the chart.

A bullish breakout above the price zone of 1.2770-1.2800 has been executed.

The long-term bullish projection target would be located at the level of 1.3080 if enough bullish support is maintained.

Conservative traders can wait for a bullish pullback towards 1.2800 or probably slightly lower for a valid buy entry with a low risk/reward ratio (Breakout level = Recent Support).

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Technical analysis of USD/CHF for July 22, 2015

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USD/CHF is expected to consolidate with bullish bias after hitting almost a three-month high of 0.9626 on Friday. It is underpinned by the positive dollar sentiment, the threat of the Swiss National Bank to carry out CHF-selling intervention, and the negative Swiss interest rates. But USD/CHF gains are tempered by the franc demand on the soft EUR/CHF cross.

Technical comment:

The daily chart is positive-biased as the MACD and stochastics are bullish, although the latter one is at overbought levels. Five- 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 0.9655 and the second target at 0.9690. In the alternative scenario, short positions are recommended with the first target at 0.9535 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 0.95. The pivot point is at 0.9570.

Resistance levels: 0.9655 0.9690 0.9745

Support levels: 0.9535 0.95 0.9450

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Technical analysis of NZD/USD for July 22, 2015

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NZD/USD is expected to trade in a lower range. It is undermined by the positive dollar sentiment, soft dairy prices, and the dovish monetary policy stance of the Reserve Bank of New Zealand. But NZD/USD losses are tempered by the diminished investor risk aversion 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. Five and 15-day moving averages are declining, although the inside-day-range pattern was completed on Friday.

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 0.6505. A break of that target will move the pair further downwards to 0.6465. The pivot point stands at 0.6625. 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 mo ve further to the upside. According to that scenario, long positions are recommended with the first target at 0.6670 and the second target at 0.67.

Resistance levels: 0.6670 0.67 0.6750

Support levels: 0.6505 0.6465 0.64

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