USDX technical analysis for October 21, 2015

The US dollar index is testing short-term resistance and the US dollar is not as week as last week. There is a possibility of a breakout higher if bulls manage to push the price above 95. The longer-term trend remains neutral as the price continues to trade inside a big bullish flag pattern as shown in the weekly chart.

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Black lines - wedge formation

The US dollar index is trading inside the Ichimoku cloud in the 4-hour chart. This means that the short-term trend is neutral. The price is forming a wedge formation with boundaries at 95 and at 94.75. We expect a small rally or a sharp correction lower.

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Black lines -bullish flag pattern

The weekly chart remains inside the weekly cloud and inside the big bullish flag pattern. A trend is neutral over the last few months as can be seen in the weekly chart above. The US dollar index is trading sideways inside a trading range. Best strategy is to wait for a breakout before opening mid- to long-term positions.

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Gold technical analysis for October 21, 2015

The gold price remains inside the bullish channel and bulls still hope for one more new high closer to $1,200. However, a breach below $1,167 will be a sell signal with $1,145-$1,120 as a target. It is time to be cautious and not buying.

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Black line - long-term support trend line

Blue lines - bullish channel

Gold price is making higher highs and higher lows. The price is above the Ichimoku cloud and inside the bullish channel. The trend remains bullish and as long as we do not break below $1,167, there are a lot of chances of making a new higher high towards $1,200. Breaking below that support level, the price will be expected to fall further towards even $1,120.

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Black lines - long-term wedge

The weekly chart remains bullish as the price continues trading above the Kijun-sen (yellow line) indicator and we are targeting $1,200. Bulls still have many chances of reaching the cloud resistance over the coming weeks. The trend remains bullish.

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Daily analysis of Silver for October 21, 2015

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Overview

Silver price has been showing a bearish bias since morning negativity affected by stochastic to move below 15.85 now, but in general, holding above the level of 15.40. This keeps the positive scenario valid and active for an upcoming period. It might be preceded by some negative fluctuations before resuming a suggested bullish wave. Stochastic provides a negative signal now, which might cause more sideways fluctuations before continuing the long-awaited rise with targets at 16.30 and 16.85 initially. We remind you that expected positive targets are seen at 16.30 and 16.85 breaching the last level will extend gains in the short term.

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Daily analysis of GBP/JPY for October 21, 2015

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Overview

According to the H4 chart, a breakout of minor resistance at 184.41 suggests that a consolidation pattern started at 180.36 is in the third leg. GBP/JPY is moving slightly upwards towards 188.28. Strong resistance is likely to be seen here to limit upside and bring another decline. On the downside, a breakout at the support level of 180.36 will resume the whole fall from 195.86 and targeting a test at 174.86, which is the key support level. There is no confirmation yet, but even is case of another rise, strong resistance is likely to be found near 61.8% retracement of 251.09 to 116.83 at 199.80.

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Gold analysis for October 21, 2015

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Overview:

Since our last analysis, gold has been trading sideways around the price of $1,174.00 in a high volume. The short-mid term trend changed from upward to downward. In the daily time frame, we can observe a demand bar in an average volume but with weak close. Besides, the 200 SMA successfully held around the price of $1,175.00. In the M30 time frame, we can observe a strong resistance cluster around the level of $1,175.00. Selling opportunities are preferable. Support levels are at the prices of $1,166.00, $1,156.00, and $1,142.00. Only if the price breaks the level of $1,192.00, we may see further upward movement.

Daily Fibonacci pivot points :

Resistance levels

R1: 1,179.25

R2: 1,181.70

R3: 1,185.70

Support levels:

S1: 1,171.30

S2: 1,168.85

S3: 1,164.90

Trading recommendations: Be careful when buying gold at this stage and watch for potential selling opportunities. The first support level is around the price of $1,166.00.

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EUR/NZD analysis for October 21, 2015

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Overview:

Recently, EUR/NZD has been moving upwards. The price tested the level of 1.6944. In the daily time frame, we can observe a weak demand bar. The price is above the 200 SMA in the daily and weekly time frames. The price is about to break our downward channel, but we still need high-volume demand to confirm it. Selling EUR/NZD at this stage looks risky. I am waiting for larger liquidity and stronger price action to confirm further direction. The first support level is seen at 1.6505. According to the H1 time frame, I found 4-day base broken and double bottom. So, watch for potential buying opportunities. Anyway, I would wait for a clear price action and larger liqudity to confirm further direction.

Fibonacci Pivot Points :

Resistance levels:

R1: 1.6835

R2: 1.6895

R3: 1.6991

Support levels:

S1: 1.6645

S2: 1.6585

S3: 1.6490

Trading recommendations: Be careful when selling at this stage. Buying positions are preferable. Resistance level is around the price of 1.7190.

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Daily analysis of major pairs for October 21, 2015

EUR/USD: This pair has not performed any significant movements so far this week (just like most popular pairs). However, there could be some serious movement today or tomorrow, which would most probably be in favor of the bulls because the outlook on the pair is currently bullish.

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USD/CHF: This pair would find it difficult to go upwards as long as EUR/USD is in a bullish mode. So it is logical to conclude that the movement on USD/CHF would be largely determined by whatever happens to EUR/USD. Any bullish attempts seen here could be a short-selling opportunity.

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GBP/USD: There is still a bullish confirmation pattern on the GBP/USD chart, though the price has consolidated so far this week. When a breakout does occur, it is more likely that it would be to the upside since the outlook on the GBP/USD is bullish (which might be true for the rest of the month).

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USD/JPY: Since October 15, 2015, the USD/JPY pair has been making some bullish effort. The price has moved upwards by almost 200 pips since then, and now it is testing the supply level at 120.00. The supply level could be easily breached today or tomorrow. In case another supply level at 121.00 is eventually breached, that would mean a strong trending movement.

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EUR/JPY: This cross is making slow and gradual bullish effort. It is more likely that the price would continue going upwards, targeting the supply zone at 136.50. The price is above the EMA 11, which itself is above the EMA 56. The RSI period 14 is above the level 50, which means the price has more chances of continuing with its bullish effort.

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Technical analysis of USD/CAD for October 21, 2015

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Viewpoint:

  • The The USD/CAD pair is likely to find support at the level of 1.2946, and the double bottom is expected at 1.2931. The USD/CAD pair has called for the bullish market from the level of 1.2931/1.2946, because the area of 1.2931/1.2946 represents strong support. Buy above support at 1.2931/1.2946 with the first target at 1.3018 in order to test the weekly pivot point. Moreover, if the pair is able to break the level of 1.3018, it will continue moving towards 1.3068, which coincides with the ratio of 61.8% Fibonacci retracement levels. However, the stop loss has always been in consideration thus it will be useful to set it below the last double bottom at the level of 1.2915 (notice that the major support set at 1.2946).

Intraday technical levels:

Date:21/10/2015

Pair: USD/CAD

  • R3: 1.3150
  • R2: 1.3098
  • R1: 1.3038
  • PP: 1.2986 ( weekly pivot: 1.3018)
  • S1: 1.2926
  • S2: 1.2874
  • S3: 1.2814
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Technical analysis of Silver for October 21 2015

Technical outlook and chart setups:

Silver is also seen to be stalling at fibonacci 0.50 resistance around $16.00/10 as discussed earlier. The metal is trading around the level of $15.80 looking for an opportunity to correct further lower before turning bullish again. As we can see here, a resistance trend line was broken and a drop to $15.00 could provide interim support. It is hence recommended to remain flat and watch for further bullish evidence. Immediate support is seen at $15.50 followed by $15.00 and lower while resistance is seen at $16.40/50 followed by $17.50/60 and higher.

Trading recommendations:

Remain flat for now.

Good luck!

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Technical analysis of AUD/USD for October 21, 2015

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Overview:

  • The s USD/USD pair has already found support at the level of 0.7145. In the H4 chart, the ratio of 50% Fibonacci retracement levels is coinciding with the support line today. Moreover, it should be noted that minor resistance is seen at 0.7284. So, according to the previous events, the AUD/USD pair is going to move between the resistance and support (0.7284 - 0.7145). Therefore, we expect a range about 139 pips in coming days. Consequently, if the trend fails to close below the level of 0.7204 (minor support), it will be a good opportunity to buy above 0.7204 with the first target at 0.7280, then it will be continued straight towards 0.7331 (78,6% Fibonacci retracement levels). On the contrary, the stop loss should always be taken into account because it should never exceed your maximum exposure amounts. Thus, the best location to set your stop loss should be placed below the level of 0.7145.

Comment:

  • The daily pivot point at 0.7220 could hit the moving average 100 (red color).
  • Stop loss should never exceed your maximum exposure amounts.
  • As a rule, the market is highly volatile if the previous day had a huge volatility.
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Technical analysis of Gold for October 21 2015

Technical outlook and chart setups:

The bigger picture still remains gloomy for the yellow metal until resistance of $1,230.00 remains intact. The metal has traveled into the buy zone of initial resistance trend line, but the rally from $1,080.00 still looks corrective and prices are stalling at fibonacci 0.618 resistance at the moment. A push through $1,200.00 and higher levels would confirm that bulls are back. It is recommended to remain flat watching for further bullish reversal. Immediate support is seen at $1,150.00 followed by $1,130.00 and lower, while resistance is seen at $1,230.00 and higher respectively.

Trading recommendations:

Remain flat for now.

Good luck!

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Technical analysis of EUR/JPY for October 21 2015

Technical outlook and chart setups:

The EUR/JPY pair is trading around the level of 136.20 at the moment, which is support turned resistance. As we can see here, the pair still remains under a broader cone type of consolidation and needs to break out to confirm its next leg. It is recommended to remain flat for now, and await further confirmation for the same. Immediate support is seen at 134.75/135.00 followed by 134.00, 133.00, and lower, while resistance is seen at the level of 137.00 followed by 138.00/139.00 and higher.

Trading recommendations:

Remain flat for now.

Good luck!

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Technical analysis of GBP/CHF for October 21 2015

Technical outlook and chart setups:

The GBP/CHF might be looking to rally through initial resistance seen at 1.4900/30. The pair has reached an intraday high of 1.4850 at the moment, before pulling back lower. A break through 1.4930 would bring bulls back in control. It is recommended to remain short now with risk at the levels of 1.4950. Immediate support is seen at 1.4700 followed by 1.4630, 1.4550, and lower, while resistance is seen at 1.4930 followed by 1.5100, 1.5350, and higher respectively. Bears are expected to pull down until at least 1.4400, while 1.4930 remains intact.

Trading recommendations:

Remain short with stop at 1.4950, a target is open.

Good luck!

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Global macro overview for 21/10/2015

Global macro overview for 21/10/2015:

The report on crude oil inventories figures are scheduled for release today at 2:30 pm GMT. The market expects the stockpiles to grow slower compared to the previous week number by around a half ( 3500k vs.7862k prior). Yesterday, the American Petroleum Institute reported that the US crude inventories hit the level of 7054K, which was nearly double than the expected level of 3500K, closer to the last week stockpiles at the level of 9300k. That king of data still suggests that the stockpiles are increasing, the market is still oversupplied and the demand is decreasing.

The bearish reversal on the crude price chart might suggest a further sell-off to take place if the 50%Fibo level is rejected. The market got back to the old congestion zone, and it is currently trading at the level of 45.75. The next important support is seen at the level of 43.17. In case of a bearish breakout, lows should be tested soon.

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Global macro overview for 21/10/2015

Global macro overview for 21/10/2015:

The equities from around the world had been trying to recover for the past month after global turmoil triggered by China in August when their policymakers decided to devalue the yuan by 2%. Since then, the moderate movements could be observed in the global equities with the SPY index (SP500 ETF) filling the last gap down yesterday. Moreover, China's third quarter GDP figures came out worse than expected (6.9% vs. 7.0%). This is why the latest highs from August can still be tested again if the recent gains will be hold by bulls.

The technical picture confirms the fundamental assumptions as the level of 203.84 had been hit yesterday. The index is still trading inside a wide neutral zone and as long as the demand zone holds, the test of the recent high is still possible.

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Technical analysis of EUR/JPY for October 21, 2015

General overview for 21/10/2015 10:40 CET

The triangle pattern idea was invalidated and currently the market is trading above the intraday support at the level of 136.00. The top for the wave b green might be in place, but we should wait for the confirmation, like an intraday support breakout in impulsive fashion. Small bearish divergence is supporting the bearish bias.

Support/Resistance:

136.95 - Wave D Top

136.58 - WR1

136.00 - Intraday Support

135.68 - Weekly Pivot

Trading recommendations:

Day traders and swing traders should consider opening sell orders from the current price levels with SL above the level of 136.99 and TP at the level of 134.75.

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Technical analysis of USD/CAD for October 21, 2015

General overview for 21/10/2015 10:25 CET

The current wave progression still looks like a leading diagonal pattern that is missing one more wave to the upside to complete. The shape of the pattern is not contracting but expanding, which is quite unusual, but still possible. The current target for the wave -v- blue is the level of 1.3078. Any breakout below the level of 1.2831 invalidates the bullish outlook.

Support/Resistnace:

1.3079 - Intraday Resistnace

1.3067 - WR1

1.2968 - Intraday Support

1.2935 - Weekly Pivot

1.2938 - Invalidation Level

Trading recommendations:

Yesterday's buy orders (SL just below 1.2935 and TP at the level of 1.3078) should be still kept open.

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GBP/USD intraday technical levels and trading recommendations for October 21, 2015

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Overview:

Recently, strong bullish pressure was applied to the resistance level of 1.5800 via the recent bullish swing.

That is why the resistance level of 1.5800 was temporarily breached. Bulls moved towards 1.5900 where the depicted Head and Shoulders reversal pattern was confirmed.

Later, the support level of 1.5555 got breached by the end of the previous month due to excessive bearish pressure, which originated at 1.5800.

The GBP/USD pair moved towards the support zone of 1.5170-1.5150 where a valid intraday buy entry was offered especially after the evident bullish rejection on October 6.

Conservative traders were advised to wait for a bullish pullback towards the level of 1.5480 for a low-risk sell entry.

This short position was triggered on last Wednesday and it is expected to be re-visited again this week. S/L should be placed above 1.5530.

Note that bearish persistence below the level of 1.5330 is needed for a further bearish decline towards the levels of 1.5100 and 1.5050. Otherwise, further bearish decline will be hindered.

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USD/CAD intraday technical levels and trading recommendations for October 21, 2015

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Overview:

A bullish breakout above the zone of 1.2770-1.2800 was observed on July 15.

The long-term bullish target was projected towards the level of 1.3270 (100% Fibonacci Expansion). However, bulls have moved further above the resistance level, which was faced on September 23.

A significant bearish rejection was observed around 1.3450 where 141.4% Fibonacci Expansion was roughly located.

Later on October 1, bearish persistence below 1.3270 (Fibonacci Expansion 100%) was expressed to maintain enough bearish pressure to expose the next support levels around 1.2910 and 1.2750 where long-term buy entries should be considered.

On the other hand, the level of 1.3075 constitutes acting as intraday resistance to be watched for intraday sell entries.

It offered a valid sell position at retesting which took place on Tuesday last week.

This week, the market has pushed back again towards the intraday supply zone of 1.3050-1.3075, which may offer another sell entry if enough bearish rejection is expressed.

Generally, the market remains trapped between the levels of 1.2800 and 1.3075 until a breakout in either direction occurs.

Trading recommendations:

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

S/L 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 October 21, 2015

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The pair moved lower after breaking below major demand levels around 1.2100 and 1.2000 where historical bottoms were previously established back in July 2012 and June 2010.

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

April's candlestick came as bullish engulfing one. However, the next monthly candlesticks (May, June, July, and August) reflected the recent bearish rejection, which exists around the level of 1.1450.

In the long term, a projected target is still seen at 0.9450 if a bearish breakdown at the monthly demand level of 1.0550 occurs soon (low probability).

On the other hand, a bullish corrective movement towards 1.1500 and 1.1700 can take place only if the weekly high of 1.1465 gets hit as soon as possible.

This can be achieved if the current monthly candlestick closes above the weekly high of 1.1465 by the end of this month.

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Multiple ascending bottoms were established around the levels of 1.0830 and 1.1020. These levels corresponded to a current daily uptrend depicted on the chart.

Shortly after, the market looked overbought as bulls were pushing the price further beyond the level of 1.1500 (daily supply level).

Hence, a bearish movement towards the level of 1.1150 (61.8% Fibonacci level) took place providing evident bullish rejections several times in a row.

Previously, the intraday supply zone of 1.1360-1.1400 provided significant bearish rejection. An intraday sell entry was suggested with T/P levels placed at 1.1150 (achieved) and 1.1050. The latter was not reached as the level of 1.1150 prevented further bearish decline.

Daily persistence below the level of 1.1150 (61.8% Fibonacci level) was needed to expose the next demand level around 1.0980 where the daily uptrend comes to meet the EUR/USD pair.

However, bullish rejection was expressed around the level of 1.1150, which led to another bullish pullback towards the intraday sell zone of 1.1370-1.1400.

As anticipated, it offered a valid sell entry as long as the market keeps defending the EUR/USD supply zone at 1.1450-1.1500. T/P levels should be located at 1.1333, 1.1250, and 1.1150.

On the other hand, conservative traders should wait for a bearish correction towards the zone of 1.0980-1.1000 (the depicted uptrend line) for a low-risk buy entry. S/L should be placed below 1.0950. T/P levels should be placed at 1.1080 and 1.1160.

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Intraday technical levels and trading recommendations for GBP/USD for October 21, 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 of 1.5900, which has been providing the GBP/USD pair with significant resistance.

The previous weekly candlestick closure above 1.5500 hindered a further bearish decline enhancing the bullish side of the market towards 1.5670 (previous weekly high) and 1.5780 (61.8% Fibonacci level).

However, recent weekly candlesticks came as bearish engulfing candles, closing below the level of 1.5450 (neckline of the Head and Shoulders pattern).

It supported the bearish side of the market in the long term. An approximate projection target should be located at the level of 1.5050 for the reversal pattern.

In the short term, the nearest demand level around 1.5170 (intraday demand level and the origin of a previous bullish engulfing weekly candlestick) provided significant bullish rejection to the pair last week.

Weekly persistence below the level of 1.5350 (prominent weekly bottom) is mandatory to allow the further bearish decline to occur.

On the other hand, persistence above it hinders further bearish momentum giving time for sideways consolidations, which extended up to the levels of 1.5500 and 1.5550.

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The previous bearish movement found its way towards the level of 1.5200 (prominent demand level), which prevented further bearish decline.

Instead of it, the evident bullish candlestick took place around 1.5200-1.5170 (resulting in bullish engulfing daily candlesticks) leading to the recent bullish pullback towards 1.5600 (the backside of the depicted uptrend). It applied significant bearish pressure to the GBP/USD pair.

As anticipated, obvious bullish pressure was applied around the zone of 1.5150-1.5200 (previous prominent weekly bottoms). A bullish breakout above 1.5350 (Intraday Demand) took place last week as depicted on the chart.

The price zone of 1.5500-1.5550 remains a significant supply zone to be watched for valid sell entries.

Daily fixation below 1.5350 is currently needed to allow bearish movement to occur towards the level of 1.5150 (previous prominent weekly bottoms) and 1.4970 (weekly demand level).

Trading Recommendation:

Risky traders can sell the GBP/USD pair around the zone of 1.5500-1.5530. S/L should be placed above 1.5560.

On the other hand, a low-risk buy entry can be offered around the weekly demand level (1.5000) if bearish breakdown of both demand levels at 1.5350 and 1.5150 occurs soon. S/L should be placed below 1.4930.

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Elliott wave analysis of EUR/NZD for October 21, 2015

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Wave summary:

We have seen an expected move higher. Now we are looking for a break above the base-channel resistance line near 1.6858 and a break above here will confirm upside acceleration.

We still need a break above important resistance at 1.7198 to confirm that a firm bottom was seen at 1.6486 and a new rally to at least 1.8019 is unfolding. A break above 1.8019 will be very bullish and call for a continuation higher to 1.9114 and above toward 2.1242 in the longer term.

Trading recommendation:

We are long EUR from 1.6555 and will move our stop higher to 1.6540. If you are not long EUR yet, buy near 1.6740 or upon a break above 1.6858 and use the same stop at 1.6540.

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Elliott wave analysis of EUR/JPY for October 21, 2015

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Wave summary:

The pair moved slightly higher, but it is still locked firmly within the possible triangle borders. We still watch for a downside thrust, which means that resistance near 136.55 will turn prices to break below minor support at 133.11 that would confirm the thrust of the triangle.

A break above resistance at 137.44 will indicate an upside thrust out of the triangle or even larger triangle formation, leaving us with much more time of sideways movements.

Trading recommendation:

We sold EUR at 135.95 and placed out stop at 136.80. If you are not short EUR yet, then sell EUR near 136.55 or upon a break below 135.80 (one order done cancels the other) and use the same stop at 136.80.

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Technical analysis of EUR/USD for October 21, 2015

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When the European market opens, no economic news is due to be released, but the US will publish data about the Crude Oil Inventories. So amid the reports, EUR/USD will move with low to medium volatility during this day.

TODAY TECHNICAL LEVELS:

Breakout BUY Level: 1.1409.

Strong Resistance:1.1402.

Original Resistance: 1.1391.

Inner Sell Area: 1.1380.

Target Inner Area: 1.1353.

Inner Buy Area: 1.1326.

Original Support: 1.1315.

Strong Support: 1.1304.

Breakout SELL Level: 1.1297.

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 October 21, 2015

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In Asia, Japan will release data on all industry activity m/m and the trade balance. The US will publish economic data on Crude Oil Inventories. So, there is a strong probability that the USD/JPY pair will move with low to medium volatility during this day.

TODAY TECHNICAL LEVELS:

Resistance. 3: 120.51.

Resistance. 2: 120.28.

Resistance. 1: 120.05.

Support. 1: 119.76.

Support. 2: 119.53.

Support. 3: 119.28.

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 October 21, 2015

On the H1 chart, the USDX has been trading sideways in the 200 SMA zone, so that is why we can see some uncertainty on this index. However, the support level of 94.61 was tested, but the price action was rejected. A breakout above the resistance level of 94.98 will reinforce the view of a possible bullish continuation, which could last for several days more. The MACD indicator is still entering the neutral territory.

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H1 chart's resistance levels: 94.98 / 95.30

H1 chart's support levels: 94.61 / 94.15

Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the USDX breaks with a bearish candlestick; the support level is seen at 94.61, take profit is at 94.15, and stop loss is at 95.09.

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Daily analysis of GBP/USD for October 21, 2015

GBP/USD extended a pullback below 1.5458. Now, it is looking for an opportunity to test the support zone of 1.5411, which is very close to the current location of the 200 SMA on the H1 chart. Over there, a rebound towards new highs could happen. Another dynamic is calling for more downside room in market, once the cable makes a breakout below the support level of 1.5374, in a move that should open the door to the psychological level of 1.5300. The MACD indicator is at the negative territory.

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H1 chart's resistance levels: 1.5458 / 1.5506

H1 chart's support levels: 1.5411 / 1.5374

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 seen at 1.5458, take profit is at 1.5506, and stop loss is at 1.5411.

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Technical analysis of USD/JPY for October 20, 2015

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USD/JPY is expected to trade in a higher range. Overnight, US stocks were range-bound and ended slightly higher with the Dow Jones Industrial Average edging up 0.1% to 17,230, the S&P 500 broadly flat at 2,033, and the Nasdaq Composite gaining 0.4% to 4,905. Nymex crude oil fell 2.9% to $45.89 per barrel and gold was down 0.6% at $1,170.3 per ounce. The benchmark 10-year Treasury yield changed a little at 2.028%. Meanwhile, the greenback remained firm against most other major currencies with the Wall Street Journal Dollar Index gaining 0.3% to 87.24. EUR/USD slid 0.2% to 1.1324, USD/CAD rose 0.8% to 1.3017, and USD/CHF was up 0.3% at 0.9562. The pair keeps trading on the upside around the 20-period intraday moving average (MA), while being supported by the 50-period intraday MA. The intraday relative strength index (RSI) is around the neutrality level at 50 lacking downward momentum. The intraday bias remains bullish and the pair is expected to rise to the first upside target at 120.20 (around the high of October 16). The second upside target is set at the horizontal overlapping level at 120.35.

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 120.20 and the second target at 120.35. In the alternative scenario, short positions are recommended with the first target at 118.90 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 118.60. The pivot point is at 119.15.

Resistance levels:120.20 120.35 120.75

Support levels: 118.90 118.60 118.25

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Technical analysis of USD/CHF for October 20, 2015

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USD/CHF is expected to trade in a higher range. The pair is trading on the upside while being supported by the rising 50-period intraday MA. The formation of higher highs and lows remains intact and it should confirm a positive outlook. Besides, the intraday RSI stays above its neutrality level at 50. In these perspectives, as long as 0.950 (our trailing stop loss) is not broken, look for a new rise to 0.9585 and 0.9615 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 0.9585 and the second target at 0.9615. In the alternative scenario, short positions are recommended with the first target at 0.9475 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 0.9450. The pivot point is at 0.95.

Resistance levels: 0.9585 0.9615 0.9650

Support levels: 0.9475 0.9450 0.94

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Technical analysis of NZD/USD for October 20, 2015

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NZD/USD is choppy. The pair remains in consolidation in the range 0.6840 to 0.670. The intraday volatility decreased sharply, as the Bollinger Bands are tightening, which also indicates that a breakout may occur in the near future. Furthermore, the intraday RSI is mixed to bearish below its neutrality area at 50. Hence, as long as 0.6840 is not surpassed, look for a choppy price action with a bearish bias. A break below 0.670 would trigger a bearish acceleration towards 0.6650.

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 0.67. A breakout of that target will move the pair further downwards to 0.6650. The pivot point stands at 0.6850. 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 0.69 and the second target at 0.6925.

Resistance levels: 0.69 0.6925 0.6965 Support levels: 0.67 0.6650 0.6600

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Technical analysis of GBP/JPY for October 20, 2015

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GBP/JPY is expected to trade with bullish bias. The pair stands above its 20-period and 50-period intraday MAs and remains on the upside. The intraday RSI is well directed and calls for further upside as well. Further upside is therefore expected with the next horizontal resistance and overlap set at 185.80 at first. A break above this level would call for further advance towards 186.45 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 185.80 and the second target at 185.80. In the alternative scenario, short positions are recommended with the first target at 184.05 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 183.60. The pivot point is at 184.60.

Resistance levels: 185.80 186.45 187.25

Support levels: 184.05 183.60 183

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Technical analysis of Gold for October 20 2015

Technical outlook and chart setups:

Gold is seen to be trading around the $1,173.00 levels for now and looking to correct further before resuming rally. The metal has stalled at the Fibonacci 0.618 resistance level of the earlier drop from the $1,230.00 levels through $1,080.00. Furthermore, the rally from the $1,080.00 levels remains corrective in wave counts. The metal needs to break the $1,200.00 levels at least to confirm a reversal. It is hence recommended to exit long positions for now and remain flat. Immediate support is seen at the $1,140.00/50.00 levels, followed by $1,100.00 and lower, while resistance is seen at the $1,230.00 levels and higher.

Trading recommendations:

Exit long positions and remain flat for now.

Good luck!

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Technical analysis of Silver for October 20, 2015

Technical outlook and chart setups:

Silver seems to be testing a sloping resistance line around sub-levels of $16.00. Furthermore, its rally from $14.00 is still corrective and needs to break above the levels of $16.50 and $17.50 to confirm bullish reversal. It is now recommended to exit all long positions and remain flat waiting for a clear direction. Immediate support is seen at $15.50 followed by $15.00, $14.00, and lower, while resistance is seen at $16.50 followed by $17.50/60 and higher.

Trading recommendations:

Exit long positions and remain flat for now.

Good luck!

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

GBP/USD intraday technical levels and trading recommendations for October 20, 2015

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Overview:

Recently, strong bullish pressure was applied to the resistance level of 1.5800 via the recent bullish swing.

That is why the resistance level of 1.5800 was temporarily breached. Bulls moved towards 1.5900 where the depicted Head and Shoulders reversal pattern was confirmed.

Later, the support level of 1.5555 got breached by the end of the previous month due to excessive bearish pressure, which originated at 1.5800.

The GBP/USD pair moved towards the support zone of 1.5170-1.5150 where a valid intraday buy entry was offered especially after the evident bullish rejection on October 6.

Conservative traders were advised to wait for a bullish pullback towards the level of 1.5480 for a low-risk sell entry.

This short position was triggered last Wednesday being offered again Today. S/L should be placed above 1.5530.

Note that bearish persistence below the level of 1.5330 is needed for a further bearish decline towards the level of 1.5100 and 1.5050.

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

Technical analysis of EUR/JPY for October 20 2015

Technical outlook and chart setups:

The EUR/JPY pair is seen to be trading in a broader cone consolidation as seen here calling for a breakout to confirm the next big move. The pair is trading around the levels of 136.00 now, which is coinciding with the past support turned resistance. The consolidation support came in at the levels of 134.80, while resistance is seen around 136.75. It is recommended to exit long positions and remain flat. A breakout below the levels of 134.50 could trigger further downside. It can challenge the levels of 138.00/139.00.

Trading recommendations:

Exit long positions and remain flat for now.

Good luck!

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

USD/CAD intraday technical levels and trading recommendations for October 20, 2015

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Overview:

A bullish breakout above the zone of 1.2770-1.2800 was observed on July 15.

The long-term bullish target was projected towards the level of 1.3270 (100% Fibonacci Expansion). However, bulls have moved further above this resistance level faced on September 23.

A significant bearish rejection was observed around 1.3450 where 141.4% Fibonacci Expansion was roughly located.

Later on October 1, bearish persistence below 1.3270 (Fibonacci Expansion 100%) was expressed to maintain enough bearish pressure to expose the next support levels around 1.2910 and 1.2750 where long-term buy entries should be considered.

On the other hand, the level of 1.3075 constitutes acting as intraday resistance to be watched for intraday sell entries.

It offered a valid sell position at retesting which took place on previous Tuesday.

This week, the market has pushed back again towards the USD/CAD intraday supply zone at 1.3050-1.3075 which may offer another SELL entry if enough bearish rejection is expressed today.

Generally, the market remains trapped between the price levels of 1.2800 and 1.3075 until a breakout occurs in either direction.

Trading recommendations:

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

S/L 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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Technical analysis of GBP/CHF for October 20 2015

Technical outlook and chart setups:

The GBP/CHF pair dropped lower from sub-levels of 1.4800 yesterday. Please note that the pair dropped from fibonacci 0.618 resistance zone where the recent drop from 1.4900/30 to 1.4550 took place. Bears might remain in control until prices stay below the levels of 1.4900/30. It is hence recommended to remain short for now with risk at the levels of 1.4950. Immediate support is seen at 1.4620 followed by 1.4550 and lower, while resistance is seen at 1.4900/30 followed by 1.5100 and higher.

Trading recommendations:

Remain short with stop at 1.4950, a target is open.

Good luck!

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

Intraday technical levels and trading recommendations for GBP/USD for October 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 of 1.5900, which has been providing the GBP/USD pair with significant resistance.

The previous weekly candlestick closure above 1.5500 hindered a further bearish decline enhancing the bullish side of the market towards 1.5670 (previous weekly high) and 1.5780 (61.8% Fibonacci level).

However, recent weekly candlesticks came as bearish engulfing candles, closing below the level of 1.5450 (neckline of the Head and Shoulders pattern).

It supported the bearish side of the market in the long term. An approximate projection target should be located at the level of 1.5050 for the reversal pattern.

In the short term, the nearest demand level around 1.5170 (intraday demand level and the origin of a previous bullish engulfing weekly candlestick) provided significant bullish rejection to the pair last week.

Weekly persistence below the level of 1.5350 (prominent weekly bottom) is mandatory to allow the further bearish decline to occur.

On the other hand, persistence above it hinders further bearish momentum giving time for sideways consolidations, which extended up to the levels of 1.5500 and 1.5550.

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The previous bearish movement found its way towards the level of 1.5200 (prominent demand level), which prevented further bearish decline.

Instead of it, the evident bullish candlestick took place around 1.5200-1.5170 (resulting in bullish engulfing daily candlesticks) leading to the recent bullish pullback towards 1.5600 (the backside of the depicted uptrend). It applied significant bearish pressure to the GBP/USD pair.

As anticipated, obvious bullish pressure was applied around the zone of 1.5150-1.5200 (previous prominent weekly bottoms). A bullish breakout above 1.5350 (Intraday Demand) took place last week as depicted on the chart.

The price zone of 1.5500-1.5550 remains a significant supply zone to be watched for valid sell entries.

Daily fixation below 1.5350 is needed to allow bearish movement to occur towards the level of 1.5150 (previous prominent weekly bottoms) and 1.4970 (weekly demand level).

Trading Recommendation:

Risky traders can sell the GBP/USD pair around the zone of 1.5500-1.5530. S/L should be placed above 1.5560.

On the other hand, a low-risk buy entry can be offered around the weekly demand level (1.4970) if bearish breakdown of both demand levels at 1.5350 and 1.5150 occurs soon. S/L should be placed below 1.4930.

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