USD/CAD intraday technical levels and trading recommendations for August 20, 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 reached. Bullish pressure was applied against the resistance levels of 1.2450 and 1.2500 (previous tops).

On the other hand, the previous weekly candlestick was quite bullish. That is why, an extensive bullish movement is seen on the chart.

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

The long-term bullish projection target remains projected at the level of 1.3270 (100% Fibonacci Expansion) where bearish pressure should be applied.

Recently, signs of lack of bullish momentum were generated on the chart (Head and Shoulders reversal pattern).

A bearish corrective movement towards the levels of 1.2750 (Breakout Level) should be expected as long as USD/CAD bears keep defending the recent high around the price level of 1.3180 (being approached this week).

On the other hand, bearish persistence below 1.3050 is needed to expose the next support level around 1.2910 and then 1.2800 where long-term BUY entries should be considered.

Trading recommendations:

Conservative traders should wait for a bearish pullback towards the recent breakout zone (1.2800-1.2750) for a valid buy entry as the breakout level constitutes a strong support.

Stop Loss should be located below the level of 1.2700. T/P levels should be located at 1.2850 and 1.2900.

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Intraday technical levels and trading recommendations for GBP/USD for August 20, 2015

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Few months ago, the market was pushed above the weekly key zone around 1.5550 in an attempt to reach the area around 1.5900, which provided evident supply for the GBP/USD pair.

As anticipated, a bearish pullback towards the level of 1.5550 took place. Temporary bearish breakout below the GBP/USD key level at 1.5500 took place on July 5.

Last week, strong bearish pressure was applied to the level of 1.5550 again. It was beeing broken temporarily until the last week when bullish recovery was expressed.

Contradictory signals are coming from consecutive weekly candlesticks. This indicates market indecision above the price levels of 1.5500. However, the previous weekly candlestick came as a bullish engulfing one.

The previous weekly candlestick closure above 1.5500 hinders further bearish decline and enhances the bullish side of the market at least towards 1.5670 (previous weekly high) and 1.5780 (61.8% Fibonacci level).

On the other hand, the current weekly candlestick should be monitored by the end of the week to determine if the weekly closure persists above 1.5500 or below.

The nearest demand level around 1.5200 will become exposed only if the GBP/USD bears manage to bring the market price below the level of 1.5500 again (low probability).

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Previously, the zone of 1.5800-1.5880 acted as significant supply. It offered a valid sell entry few weeks ago. All T/P levels were successfully reached.

On the other hand, the level of 1.5550, which corresponds to 50% Fibonacci level and a previous prominent top, was temporarily broken allowing further bearish decline towards 1.5350 where an ascending bottom was recently established.

The level of 1.5500 constitutes a significant KEY-level to watch for. It corresponds to the short-term uptrend line depicted on the chart.

However, evident bullish pressure was applied at 1.5450 on August 7. A bullish engulfing daily candlestick was expressed by the end of the day.

The nearest supply levels to meet the GBP/USD pair are located around the price levels of 1.5660 (Multiple Daily Highs) and 1.5770 (prominent 61.8% Fibonacci level) where the price reaction should be monitored.

On the other hand, the bearish scenario towards 1.5470 and 1.5370 should only be considered if the GBP/USD bears manage to successfully push below 1.5500 again (low probability).

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Intraday technical levels and trading recommendations for EUR/USD for August 20, 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, June, and July) reflected recent bearish rejection being expressed around 1.1450.

In the long term, a projection target will be still located at 0.9450 if a bearish breakdown of the monthly demand level at 1.0550 occurs soon.

On the other hand, a bullish corrective movement towards 1.1500 will be possible only if May's monthly high of 1.1465 gets breached (a low probability).

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After such a long bearish rally, which started around the level 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 (double-top reversal pattern). That's when the EUR/USD bears managed to achieve bearish breakdown of the depicted uptrend line on July 13.

Recently, evident bullish recovery was expressed after hitting the level of 1.0800. Since then, bulls have been trying to bring a bullish corrective movement towards 1.1100 and 1.1150 where the backside of the broken uptrend is located.

On Friday, significant bearish reaction has been shown at 1.1150-1.1180 resulting in few consecutive bearish engulfing daily candlesticks.

DAILY closure below the price level of 1.0980 must be achieved to pursue towards lower bearish targets around 1.0850 and 1.0750.

The nearest bearish destination to meet the EUR/USD pair would be located at 1.0980 as long as the price level of 1.1150 remains defended by the market bears.

On the other hand, daily closure above the price zone of 1.1150-1.1180 invalidates the previous bearish scenario. A bullish swing towards 1.1220 and 1.1280 should be expected then.

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EUR/NZD analysis for August 20, 2015

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Overview:

Recently, EUR/NZD has been moving upwards. The price tested the level of 1.6940 in a high volume. In the daily time frame, we can observe double confirmed up-thrust bars. According to the H1 chart, we have an absorption volume in the background (short-term buying looks very risky). We may expect continuation of downward movement. Fibonacci retracement 61.8% is at the price of 1.6945. According to Wyckoff analysis, the price is building a potential strong distribution (selling). Intraday frames are favoring sellers as well. Strong support is around the price of 1.6700.

Fibonacci Pivot Points :

Resistance levels:

R1: 1.6875

R2: 1.6915

R3: 1.6980

Support levels:

S1: 1.6745

S2: 1.6700

S3: 1.6640

Trading recommendations: Watch only for selling. The price successfully rejected from our Fibonacci retracement 61.8%. Sell after retracements.

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Technical analysis of EUR/USD for August 20, 2015

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Trading recommandations:

  • According to the previous events, the price of the EUR/USD pair will be moving between the levels 1.1085 and 1.1241 in coming hours. Besides, the weekly pivot point has been set at the level of 1.1082 and now is acting as a strong support. In the long term, buy above the price of 1.1085 with the first target at 1.1210 in order to test the double top. It might resume to 1.1241 if the trend can break the weekly peak price at 1.1210.
  • The stop loss should always be taken into account, so it will be very useful to set your stop loss below the support at the price of 1.1021

Notes:

  • Strong resistance will be set at the level of 1.1241.
  • The double top is going to be at the 1.1210 level. Currently, the double bottom is set at the price of 1.1100.
  • We expect a range of 112 pips today.
  • The weekly pivot point (1.1082) represents the key level this week.
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Technical analysis of GBP/USD for August 20, 2015

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Overview:

  • The range of GBP/USD pair was 128 pips (1.5713 - 1.5585) for the last two days. In addition, GBP/USD hit the weekly resistance 1 and the pivot point. As a result, the market was in an uptrend and formed a strong support at the level of 1.5585 (the weekly pivot point). It should be noted that the support coincides with the ratio of 50% Fibonacci retracement levels for that it represents strong support on the H1 chart. So, the price of 1.5585/1.5572 is the key level to confirm the bullish market. For that reason, the market will probably indicate the bullish opportunity at the level of 1.5585 and the level will act as support. Therefore, the price of GBP/USD will give a good sign to buy above 1.5585 with the first target at 1.5713 again. Besides, if the trend can break the first resistance at 1.5713, as a consequence, the trend will be continuing towards the 1.5766 price in order to form a double top.

Intraday Technical Levels:

  • R3: 1,5790
  • R2: 1,5746
  • R1: 1,5695
  • PP: 1,5651
  • S1: 1,5600
  • S2: 1,5556
  • S3: 1,5505

Note:

  • 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 reache resistance 2 or support 2 and even resistance 3 or support 3.
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Technical analysis of USD/JPY for August 20, 2015

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USD/JPY is expected to trade with bearish bias. The US dollar tumbled against other major currencies overnight as the minutes from the Federal Reserve's July meeting showed no clear sign that officials are ready to raise interest rates in September. Besides, the US government reported that CPI increased 0.1% MoM in July, below +0.2% expected. Crude oil plunged 4.3% to a fresh 6-year low of $40.80 a barrel. And US stocks fell sharply, with the Dow Jones Industrial Average dropping 0.9% to 17348.73, the S&P 500 declining 0.8% to 2079.61 and the Nasdaq Composite losing 0.8% to 5019.05. Meanwhile, gold gained 1% to $1128.10 per ounce. Regarding USD/JPY, the pair's downward momentum has strengthened as intraday indicators (including 20-, 50-period intraday moving averages and intraday RSI) remain badly directly. The key resistance has been lowered to 124.16. Though the pair is posting a technical rebound, the extent should be limited and it is expected to return to 123.60 (yesterday's low) and to 123.35 (the low of July 31) in extension.

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 124. A break of that target will move the pair further downwards to 123.75. The pivot point stands at 124.60. 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 125 and the second target at 125.25.

Resistance levels: 125 125.25 125.60

Support levels: 124 123.75 123.50

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Technical analysis of USD/CHF for August 20, 2015

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USD/CHF is expected to trade with bearish bias. The pair fell sharply yesterday after the downside break of 0.9720, representing the lower boundary of its trading-range pattern. Now there is a high chance that the pair may continue to drop towards 0.9598 (Fibonacci projection). The technical indicators are bearish; the 20- and 50-period MAs reversed down, and the intraday RSI is negatively oriented. Hence, as long as 0.9690 is not surpassed, look for a further decline to 0.9590 and 0.9540.

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 0.9590. A break of that target will move the pair further downwards to 0.9540. The pivot point stands at 0.9690. 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 0.9745 and the second target at 0.98.

Resistance levels: 0.9745 0.98 0.9840

Support levels: 0.9590 0.9540 0.95

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Technical analysis of NZD/USD for August 20, 2015

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NZD/USD is expected to trade with bullish bias. The pair remains on the upside, and seems to post a new rebound. A strong support base around 0.6555 has been formed. It should prevent any downward attempts. Furthermore, the intraday RSI stands above its neutrality area at 50, and the 20- and 50-period MAs still play support roles. Taking tis into account, as long as 0.6550 is not broken, expect further advance to 0.6615 and 0.6650 in extension.

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 0.6615 and the second target at 0.6650. In the alternative scenario, short positions are recommended with the first target at 0.6530 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 0.6510. The pivot point is at 0.6555.

Resistance levels: 0.6615 0.6650 0.6675

Support levels: 0.6530 0.6510 0.6480

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Technical analysis of GBP/JPY for August 20, 2015

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GBP/JPY is expected to trade in a lower range. The pair has just broken below a declining trendline since August 14 and has also exceeded yesterday's low. A double bottom pattern has been validated, calling for an intraday trend reversal. Both rising 20- and 50-period intraday MAs maintain a bearish bias. And the intraday RSI is well directed. Further downside is expected with the next horizontal support and overlap set 193.20 at first. A break below this level would call for a further decline towards 192.65 in extension. Only a break above the horizontal resistance at 194.30 would open the way to further strength.

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 193.20. A break of that target will move the pair further downwards to 192.65. The pivot point stands at 194.30. 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 195.30 and the second target at 195.90.

Resistance levels: 195.30 196.05 196.75

Support levels: 193.20 192.65 192

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Global macro overview for 20/08/2015

Global macro overview for 20/08/2015:

The UK retail sales data release for July is scheduled at 8:30 GMT and is forecasted to have risen 0.4% m/m; (4.4% y/y), a complete turnaround from last month unexpected drop of -0.2% m/m; (4.0% y/y). The GBP plunged last month after a negative reading, so this time the expected number is quite strong and a small rally might be present if the number is in line with expectations or even better. Moreover, a good number will add to the wage growth, which already is rising, and might confirm the BoE officials' expectation about inflation rate increase back over the zero line by the end of the year.

The technical picture is still showing a regular battle between supply and demand at the current market levels, so only a clear, solid breakout above the level of 1.5716 will be considered bullish.

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Global macro overview for 20/08/2015

Global macro overview for 20/08/2015:

The yesterday's release of the FOMC meeting minutes showed that the most of the Fed members were in favor of a short-term interest rate hike; however, the economic conditions justifying that hike has not been met yet. The odds for an immediate September rate hike decreased from 50% to 40% and the next possible term for this decision is in December. Moreover, the minutes revealed that most members would like to see more evidence for a rate hike in the improving economic conditions, lower unemployment and increasing inflation to the target of 2%. So it looks like the Fed is continuing with its typical "wait and see" approach in regard to the rate hike and it does not look like something will change in the near future.

In reaction to the minutes release, the US dollar index DXY sharply fell after a failed test of the golden trendline and currently it is slowly approaching the support at the level of 95.91.

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Technical analysis of USD/CAD for August 20, 2015

General overview for 20/08/2015 09:30 CET

As indicated yesterday, the wave c purple was terminated just at the golden trend line support. Another wave up, labeled as wave c green, is currently in progress. This corrective cycle is getting more and more complex and time-consuming. So it is very possible that market is trying to complete a big triangle pattern which is very typical for wave four.

Support/Resistance:

1.3015 - Intraday Support

1.3070 - Weekly Pivot

1.3175 - Intraday Resistance

1.3206 - WR1

1.3211 - Swing High

Trading recommendations:

Currently, daytraders should wait for a better opportunity to occur after corrective sub-cycle is completed. Trading inside of the potential triangle structure is tricky and full of whipsaws and fake breakouts.

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Technical analysis of EUR/JPY for August 20, 2015

General overview for 20/08/2015 09:20 CET

The corrective wave W brown has been completed in three waves. So far there is no downside continuation for now as the market has broken out above the yesterday's resistance. Nevertheless, the three up waves, labeled as abc purple, might indicate a possible corrective wave X brown is about to be completed and then the downward corrective cycle in wave Y brown will continue. The key level for today is intraday resistance at the level of 138.39, because any breakout above this level will lead to immediate test of the recent high at the level of 138.82.

Support/Resistance:

138.82 - Swing High

138.39 - Intraday Resistance

137.78 - Weekly Pivot

137.60 - Intraday Support (weak)

137.06 - Intraday Support (strong)

Trading recommendations:

Daytraders should consider opening sell orders from the level of 138.39 with tight SL (10-15 pips) and TP at the level of 137.60.

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USDX technical analysis for August 20, 2015

The Dollar index got rejected yesterday as we expected and moved towards the short-term support of 96. For now this support level is held but price remains in the bearish trend.

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Red line - resistance

Blue line - support

The Dollar index is below the Ichimoku cloud in the 4-hour chart. Price is in a bearish trend as long as we are below the Ichimoku cloud. However short-term support is held for now. A break below 96.20-96.10 will signal more weakness to come and push the index towards 95.

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Red line - resitance

Green line - support

The weekly chart shows how price remains inside the triangle pattern. Price is also below the kijun-sen indicator and is heading towards the tenkan-sen support. If broken, we should see the lower triangle boundary at the 95 area. A break above the triangle will imply a new trend starting and new highs coming.

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Gold technical analysis for August 20, 2015

Gold price has continued its upward move as we expected from our latest analysis after breaking above the short-term trend line resistance and has already reached our minimum target level of $1,140. Gold price is now in a strong resistance area and we could see a bearish reversal any time. This however does not mean it cannot move higher.

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Blue lines - bullish channel

Gold price is making higher highs and higher lows. By breaking above $1,127 it confirmed our bullish bias and as support at $1,115 was held, price accelerated higher towards our target area of $1,140-50. Price is above the Ichimoku cloud confirming the bullish trend. Support is at $1,110.

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Blue area - resistance

The weekly chart shows how this week's candle has reached my bounce target area where we also find the tenkan-sen (red indicator). This is the first important resistance of this bounce. The entire area of $1,140-50 is important resistance. A weekly close above this area will bring Gold price towards the Ichimoku cloud at $1,200. A rejection here will push price to new lows.

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Elliott wave analysis of EUR/NZD for August 20 - 2015

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Technical summary:

We are still looking for a minor corrective rally to 1.6930 as long as minor support at 1.6732 protects the downside. From 1.6930 a new decline through 1.6732 should be seen for a decline to 1.6035 and maybe even lower to 1.5864.

We have seen a nice five-wave rally from 1.3860 to 1.7103. We are about to correct this rally with the first target being wave (iv) at 1.6035, but a deeper corrective decline to wave iv at 1.5864 can not be ruled out.

Trading recommendation:

We are looking for a EUR selling opportunity at 1.6920 or upon a break below 1.6732. Stop will be placed at 1.7110 but is expected to be moved lower quickly.

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Elliott wave analysis of EUR/JPY for August 20 - 2015

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Technical summary:

We have seen a break above the minor resistance-line indicating that red wave iv did indeed end at 137.03 and a rally towards 139.41 now should be seen. Short-term support at 137.44 is expected to protect the downside for a break above resistance at 138.40 confirming that red wave v towards 139.41 is unfolding.

Only an unexpected break below 137.03 will invalidate the bullish outlook.

Trading recommendation:

We are long EUR from 137.45 and will our stop higher to 137.00. If you are not long EUR yet, then buy close to 137.50 an use the same stop at 137.00.

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Technical analysis of USD/JPY for August 20, 2015

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In Asia, Japan will release the BOJ Press Conference. The US will release some economic data such as Natural Gas Storage, CB Leading Index m/m, Existing Home Sales, Philly Fed Manufacturing Index, and Unemployment Claims. So there is a big probability the USD/JPY pair will move with low to medium volatility during the day.

TODAY TECHNICAL LEVELS:

Resistance. 3: 124.54.

Resistance. 2: 124.30.

Resistance. 1: 124.05.

Support. 1: 123.76.

Support. 2: 123.51.

Support. 3: 123.27.

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 EUR/USD for August 20, 2015

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When the European market opens, some economic news will be released such as Spanish 10-y Bond Auction and German PPI m/m. The US will release the economic data too such as the Natural Gas Storage, CB Leading Index m/m, Existing Home Sales, Philly Fed Manufacturing Index, and Unemployment Claims. So amid the reports, EUR/USD will move with low to medium volatility during this day.

TODAY TECHNICAL LEVELS:

Breakout BUY Level: 1.1172.

Strong Resistance:1.1166.

Original Resistance: 1.1155.

Inner Sell Area: 1.1144.

Target Inner Area: 1.1118.

Inner Buy Area: 1.1092.

Original Support: 1.1081.

Strong Support: 1.1070.

Breakout SELL Level: 1.1064.

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 Silver for August 20, 2015

Technical outlook and chart setups:

Silver has bounced off from $14.80/90 levels as expected yesterday and managed to take off initial interim resistance at $15.40 levels for now. Please note that the metal has potential to push through $16.40 levels, and bulls could remain in control till prices stay above $14.70 levels. It is hence recommended to book partial profits and move risk to $14.70 levels for now. Immediate support is seen at $14.70 levels (interim), followed by $14.40/50 and lower, while resistance is seen at $15.50 levels (interim), followed by $15.90, $16.40 and higher respectively.

Trading recommendations:

Book partial profits, and move stop at $14.70 levels for now.

Good luck!

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Technical analysis of Gold for August 20, 2015

Technical outlook and chart setups:

Gold has managed to push through $1,130.00/32.00 levels for now, as expected. Please note that it has reached the fibonacci 0.618 resistance levels, and a turn around can be expected here. Also, $1,130.00/32.00 levels is past support turned resistance now. It is hence expected to book profits on long positions taken earlier and watch out for a bearish reaction. Immediate support is seen at $1,110.00 levels, followed by $1,090.00, $1,080.00 and lower, while resistance is seen at $1,67.00 levels, followed by $1,175.00 and higher respectively.

Trading recommendations:

Book profits on long positions and remain flat.

Good luck!

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Technical analysis of EUR/JPY for August 20, 2015

Technical outlook and chart setups:

The EUR/JPY pair has bounced off from 137.00 levels as expected. Please note that it is pushing beyond the 50-day moving average, indicating further push ahead. The pair should be targeting 140.50 levels at least, and bulls should remain in control till prices stay above 137.00 levels for now. It is hence recommended to book partial profits and move risk to 137.00 levels. Immediate support is seen at 137.00 levels (interim), followed by 136.00, 135.00, 134.00 and lower, while resistance is seen at 139.50 levels, followed by 140.50 and higher.

Trading recommendations:

Book partial profits and move stop to 137.00 levels.

Good luck!

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Technical analysis of GBP/CHF for August 20, 2015

Technical outlook and chart setups:

The GBP/CHF pair has dropped and made lows at 1.5080 levels before pulling back higher. Please note that the pair could drop further towards 1.4975 and 1.4850 levels respectively. Besides, note that 1.4850 is the fibonacci 0.618 support of the rally between 1.4450 and 1.5400 levels. It is recommended to at least book partial profits and move stop to 1.5350. Immediate support is seen at 1.5050 levels, followed by 1.4950 and lower while resistance is seen at 1.5350 levels, followed by 1.5400/10 and higher respectively.

Trading recommendations:

Book partial profits and move stop to 1.5350.

Good luck!

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Daily analysis of major pairs for August 20, 2015

EUR/USD: Needless to say, the EUR/USD pair went upwards, just the opposite of what happened to the USD/CHF pair. The renewed bullish effort in the market has led to "buy" signal. Thus, bulls could target the resistance lines at 1.1150 and 1.1200.

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USD/CHF: After several days of equilibrium movement, the USD/CHF pair broke out southward. This has resulted in a Bearish Confirmation Pattern and the price, having gone down by 100 pips, has tested the support level at 0.9650. The next target for bears might be the support level at 0.9600.

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GBP/USD: In spite of stubborn resistance from bears, the cable continues to show its bullish determination. Since the price has been able to stay above the accumulation territory at 1.5650, bulls have been attacking the distribution territory at 1.5700. With further bullish pressure, the distribution territory could be breached to the upside and the price could stay above it.

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USD/JPY: There is now a bearish outlook on the market since the price broke below the EMA 56. The RSI period 14 is also below the level 50. A test of the demand level at 123.50 would confirm bears' seriousness. In addition to this, some fundamental figures are expected today and they could have some impact on the USD.

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EUR/JPY: It would still be preferable to stay away from this market. The price trended downwards on Monday and Tuesday, but the bullish effort on Wednesday has caused mixed signals on the chart. Had the price trended downwards also on Wednesday, there could have been a predictable bearish journey. Now, there is a need to wait and see what would happen next.

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Daily analysis of USDX for August 20, 2015

USDX is performing some pullbacks and extending the correction below the 96.57 level. The daily chart is still showing an alive bullish bias, but the Index seems to be prepared to extend the corrections towards new monthly lows, as the USDX reached extreme zones. 200 SMA is still bullish and MACD indicator is on the negative territory.

USDXDaily.png

On H1 chart, USDX found dynamic resistance around the 200 SMA and the index is finding strong bottom at the support level of 96.37. That's why we should expect a breakout of that level, towards the 96.04 zone. We should expect a bearish trend which could last for the short and at mid term. MACD indicator remains on the negative territory.

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Daily chart's resistance levels: 96.57 / 97.57

Daily chart's support levels: 95.50 / 94.59

H1 chart's resistance levels: 97.37 / 97.62

H1 chart's support levels: 96.88 / 96.37

Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the USD Index breaks with a bearish candlestick; the support level is at 96.37, take profit is at 96.04, and stop loss is at 96.72.

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Daily analysis of GBP/USD for August 20, 2015

On the daily chart, GBP/USD is still with gains above the support level of 1.5640. The focus remains around the 1.5761 level, where a breakout should open the doors to test the next resistance zone of 1.5881. However, we should look for bullish pattern formations in lower time frames in order to ride properly this upside bias.

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The pair is acting according to sellers' reaction at the resistance level of 1.5679, where a pullback should happen towards the 1.5632 level on H1 chart, but still there are no clear trend-change patterns in place to ride the pullbacks in the mid term. However, the short-term outlook is still calling for upsides when a breakout around the 1.5679 zone happens with focus at the 1.5715 level.

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Daily chart's resistance levels: 1.5761 / 1.5881

Daily chart's support levels: 1.5640 / 1.5543

H1 chart's resistance levels: 1.5679 / 1.5715

H1 chart's support levels: 1.5632 / 1.5587

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 1.5679, take profit is at 1.5715, and stop loss is at 1.5644.

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GBP/USD intraday technical levels and trading recommendations for August 19, 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 Head and Shoulders pattern was initiated.

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

However, a bullish pullback towards 1.5550-1.5600 was expected to take place shortly after, as suggested in the previous articles.

Our SELL entry which was suggested around 1.5600 got triggered two weeks ago. An early exit should be considered after the current daily candlesticks managed to fixate above 1.5600.

A better SELL entry with a lower risk/reward ratio may be offered around the price level of 1.5780 (the upper limit of the consolidation range) if enough bullish pressure is expressed above 1.5660 (yesterday's daily closure level).

Note that fixation below the price zone of 1.5550-1.5500 is mandatory to pursue towards lower bearish targets, initially at 1.5450. Moreover, it confirms the Double-Top reversal pattern.

Risky traders can SELL the GBP/USD pair upon daily closure below 1.5525. Initial bearish target would be located at 1.5450.

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USD/CAD intraday technical levels and trading recommendations for August 19, 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 reached. Bullish pressure was applied against the resistance levels of 1.2450 and 1.2500 (previous tops).

On the other hand, the previous weekly candlestick was quite bullish. That is why, an extensive bullish movement is seen on the chart.

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

The long-term bullish projection target remains projected at the level of 1.3270 (100% Fibonacci Expansion) where bearish pressure should be applied.

Recently, signs of lack of bullish momentum were generated on the chart (Head and Shoulders reversal pattern).

A bearish corrective movement towards the levels of 1.2750 (Breakout Level) should be expected as long as USD/CAD bears keep defending the recent high around the price level of 1.3180 (being approached today).

On the other hand, bearish persistence below 1.3050 is needed to expose the next support level around 1.2910 and then 1.2800 where long-term BUY entries should be considered.

Trading recommendations:

Conservative traders can wait for a bearish pullback towards the recent breakout zone (1.2800-1.2750) for a valid buy entry as the breakout level constitutes a strong support.

Stop Loss should be located below the level of 1.2700. T/P levels should be located at 1.2850 and 1.2900.

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Intraday technical levels and trading recommendations for EUR/USD for August 19, 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, June, and July) reflect recent bearish rejection being expressed around 1.1450.

In the long term, a projection target will be still located at 0.9450 if a bearish breakdown of the monthly demand level at 1.0550 occurs soon.

A bullish corrective movement towards 1.1500 will be possible only if May's monthly high of 1.1465 gets breached (a low probability).

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After such a long bearish rally, which started around the level 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 EUR/USD back to 1.1000 again. Bearish daily closure below 1.0950 enabled a quick bearish decline towards 1.0850 and 1.0750.

Evident bullish recovery was expressed last week after hitting the level of 1.0800. Since then, bulls have been trying to bring a bullish corrective movement towards 1.1000 and 1.1150 where the backside of the broken uptrend is located.

Bearish rejection was anticipated around the price zone of 1.1150-1.1180 as it corresponds to the backside of the broken uptrend (depicted on the chart).

On Friday, significant bearish reaction has been shown at 1.1150 resulting in two consecutive bearish engulfing daily candlesticks.

The nearest bearish destination to meet the EUR/USD pair would be located at 1.0980 as long as the price level of 1.1150 remains defended by the market bears.

DAILY closure below the price level of 1.0980 should be pursued towards lower bearish targets around 1.0850 and 1.0750.

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Intraday technical levels and trading recommendations for GBP/USD for August 19, 2015

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Few months ago, the market was pushed above the weekly key zone around 1.5550 in an attempt to reach the area around 1.5900, which provided evident supply for the GBP/USD pair.

As anticipated, a bearish pullback towards the level of 1.5550 took place. A bearish breakout below 1.5500 took place two weeks ago.

Last week, strong bearish pressure was applied to the level of 1.5550 again. It was beeing broken temporarily until the last week when bullish recovery was expressed.

Contradictory signals are coming from consecutive weekly candlesticks. This indicates lacking bullish momentum above 1.5500.

The previous weekly candlestick closure above 1.5500 hinders further bearish decline and enhances the bullish side of the market towards 1.5680 (previous weekly high).

Next bullish destination would be located at 1.5770 (61.8% Fibonacci level).

On the other hand, the current weekly candlestick should be monitored by the end of the week to determine if the weekly closure comes above 1.5500 or below.

The nearest demand level around 1.5200 will become exposed only if the GBP/USD bears manage to bring the market price below the level of 1.5500 again.

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Previously, the zone of 1.5800-1.5880 acted as significant supply. It offered a valid sell entry few weeks ago. All T/P levels were successfully reached.

On the other hand, the level of 1.5550, which corresponds to 50% Fibonacci level and a previous prominent top, was temporarily broken allowing further bearish decline towards 1.5350 where an ascending bottom was recently established.

The level of 1.5500 constitutes a significant KEY-level to watch for. It corresponds to the short-term uptrend line depicted on the chart.

However, evident bullish pressure was applied at 1.5450 on August 7. A bullish engulfing daily candlestick was expressed by the end of the day.

The nearest supply levels to meet the GBP/USD pair are located around the price levels of 1.5660 (Multiple Daily Highs) and 1.5770 (prominent 61.8% Fibonacci level) where the price reaction should be monitored.

On the other hand, the bearish scenario towards 1.5470 and 1.5370 should only be considered if the GBP/USD bears manage to successfully push below 1.5500 again.

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