NZD/USD intraday technical levels and trading recommendations for December 4, 2015

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The daily chart shows a bullish Flag pattern that was initiated around the level of 0.6230 on September 23.

A bullish engulfing candlestick was expressed at 0.6520 yesterday.Today, a bullish breakout above 0.6600 is taking place.

Temporary bearish rejection should be expected around 0.6690, which is a prominent daily resistance level on the daily chart. Actually, initial bearish rejection has been expressed earlier today.

On the other hand, an estimated projection target for this flag pattern is located at 0.6950 as long as the NZD/USD pair keeps trading above 0.6600.

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Recently, significant bullish rejection was expressed around 0.6430 followed by a consolidation range that extended between 0.6500 and 0.6600.

Earlier this week, an obvious bullish breakout above 0.6600 was executed via a full-body bullish H4 candlestick.

Next resistance levels to meet the NZD/USD pair are located around 0.6690 and 0.6750 where temporary bearish rejection should be expected.

For conservative traders, a valid buy entry can be offered around 0.6600 (corresponds to the backside of the broken trend and the upper limit of the broken consolidation range). S/L should be set as closure below 0.6550 on the H4 chart.

On the other hand, the price level of 0.6640 remains the key level to be defended by NZD/USD bulls to keep pushing higher. Otherwise, a deeper bearish pullback towards 0.6600 should be expected.

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Intraday technical levels and trading recommendations for GBP/USD for December 4, 2015

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A 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.

Recent weekly candlesticks came as bearish engulfing candles, closing below the level of 1.5220 (the neckline of the Head and Shoulders pattern).

This supported the bearish side of the market in the long term.

A long-term bearish target is projected towards the level of 1.4800 for this reversal pattern.

The previous demand level at 1.5200 (the origin of a previous bullish engulfing weekly candlestick) was broken down three weeks ago. This bearish tendency was confirmed by the Shooting Star and the bearish engulfing weekly candlesticks of the previous weeks.

Hence, a quick bearish decline towards the weekly demand level at 1.4950 was expected as a result of the bearish breakdown below 1.5200.

Note that another weekly closure below 1.4950 opens the way towards 1.4800 (long-term bearish target).

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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 an evident bullish reaction was performed around 1.5200-1.5170 (resulting in bullish engulfing daily candlesticks).

That led to the previous bullish pullback towards 1.5600 (the backside of the depicted uptrend). It placed the GBP/USD pair under significant bearish pressure.

Prominent demand levels at 1.5350 and 1.5200 were broken down a few weeks ago. These levels currently constitute prominent supply to be watched for new sell entries.

The key level of 1.5200 was temporarily breached to the upside before a daily bearish engulfing candlestick was expressed around 1.5330 on November 20.

Bearish persistence below 1.5200 and then 1.5050 (previous weekly bottom) enhanced further bearish decline towards the weekly demand level of 1.4950 (also corresponding to the lower limit of the depicted channel).

Trading Recommendation:

For conservative traders, a valid buy entry will probably be offered around the weekly demand zone of 1.4950-1.4930.

S/L should be placed below 1.4900. Initial T/P levels should be located at 1.5170 and 1.5300.

On the other hand, risky traders can sell the GBP/USD pair at price level of 1.5220. S/L should be placed above 1.5300.

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Intraday technical levels and trading recommendations for EUR/USD for December 4, 2015

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The EUR/USD pair moved lower after breaking below the 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 previously 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, next monthly candlesticks (August, September, October and November) reflected a strong bearish rejection, which took place around the level of 1.1450.

Hence, in the long term, a projected target is still seen at 0.9450 if a bearish breakout below the monthly demand level at 1.0555 occurs before the end of this month (December).

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On August 24, the market looked overbought as bulls were pushing the pair further above the level of 1.1500 (daily supply level).

Recently, the intraday supply zone of 1.1360-1.1400 provided significant bearish rejection. An intraday sell entry was suggested. T/P levels located at 1.1150 and 1.1050, which were already reached.

A bearish breakout of the depicted uptrend has been executed on October 23. This enhanced a long-term bearish scenario with targets projected at 1.0800 and 1.0600.

Two weeks ago, daily persistence below the level of 1.0950 exposed the next demand level around 1.0850 where prominent bottoms were previously established in May, July, and August.

Last week, daily persistence below the level of 1.0700 (key level) ensured enough bearish momentum towards 1.0550 (prominent monthly low) where a prominent bullish pullback was expressed as anticipated in previous articles.

A daily breakdown of the monthly demand level (1.0550) was needed to expose next bearish target levels at 1.0460 and then at 1.0300 as initial targets for the long-term bearish breakout mentioned above.

On the other hand, bullish fixation above 1.0550 and 1.0700 brings the EUR/USD pair back to the level of 1.0990 (Sell Entry) where another sell entry can be offered. S/L should be placed above 1.1050.

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EUR/NZD analysis for December 04, 2015

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Overview:

Recently, EUR/NZD has been moving upwards. The price tested the level of 1.6483 in an ultra high volume due to Draghi's speech yesterday. According to the 4H time frame, the price rejected from major resistance at the price of 1.6490. It still may be a distribution phase and we may see potential downward movements. If the price breaks the level of 1.6150, it will confirm further downward continuation. Anyway, the breakout of the level 1.6580 will confirm upward momentum. The short-term trend is still downward.

Fibonacci Pivot Points :

Resistance levels:

R1: 1.6470

R2: 1.6630

R3: 1.6885

Support levels:

S1: 1.5965

S2: 1.5810

S3: 1.5550

Trading recommendations : Buying EUR/NZD at this stage looks very risky. Watch for potential selling opportunities. Support level is at the price of 1.6150.

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Gold analysis for December 04, 2015

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Overview:

Since our last analysis, gold has been trading upwards. The price tested the level of $1,065.25. In the daily time frame, our SMA 10 is on the test. In the 4H time frame, I found a change in polarity and strong support at the price of $1,065.00 has become strong resistance now. Besides, I found strong buying climax in the background and a doji bar at our resistance. Watch for potential selling opportunities. Intraday support is at the price of $1,046.10.

Daily Fibonacci pivot points:

Resistance levels

R1: 1,064.75

R2: 1,069.10

R3: 1,076.15

Support levels:

S1: 1,050.70

S2: 1,046.35

S3: 1,039.35

Trading recommendations: Be careful when buying gold because we have a strong rejection from our resistance and gold is in the strong downward trend. Watch for potential selling opportunities.

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Daily analysis of Silver for December 04, 2015

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Overview

Silver price bounced bullishly after an attempt to break out the level of 13.96 yesterday, to fluctuate around the EMA50 again, noticing that stochastic loses its positive momentum gradually to reach the overbought areas, which forms negative factor that we expect to push the price lower. Silver price keeps moving near the EMA 50, while stochastic enters the overbought levels, reinforcing our expectations for the main bearish trend continuation, which is next main targets at 13.50 and then at 13.00. In general, we will keep our bearish trend expectations if the price settles below 14.25 today, where breaching this level might push the price towards the level of 14.85 in order to test it before any new attempt to decline takes place.

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Daily analysis of GBP/JPY for December 04, 2015

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Overview

With 186.00 minor resistance intact, a further fall is still expected in the GBP/JPY pair. A consolidation pattern from 180.36 was completed at 188.79. A deeper fall is expected to test the support zone of 180.36/64. Above minor resistance of 186.00, a bias will turn neutral again. But we will maintain this bearish view as long as resistance of 188.79 holds. This is supported by bearish divergence condition in the weekly MACD. Also, GBP/JPY was close to key cluster resistance of 61.8% retracement of 251.09 to 116.83 at 199.80, which is close to the psychological level of 200. A breakout at 174.86 will confirm trend reversal and bring a deeper fall to 38.2% retracement of 116.83 to 195.86 at 165.67. In case of another rise, we should be cautious on strong resistance from 199.80/200.00 which can finally bring reversal.

Daily Pivots: (S1) 184.46; (P) 185.17; (R1) 186.34;

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USD/CAD intraday technical levels and trading recommendations for December 4, 2015

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Overview:

A bullish breakout above the zone of 1.2770-1.2800 was observed on July 15 (highlighted in blue).

The long-term bullish target was projected towards the level of 1.3270 (100% Fibonacci Expansion). However, bulls moved further above the Fibonacci level, which was previously breached to the upside on September 23 and recently on November 12.

Significant bearish rejection has been observed around 1.3450 (141.4% Fibonacci Expansion).

Later on October 1, bearish closure below 1.3270 (Fibonacci Expansion 100%) took place. This exposes the next support levels around 1.2910 and 1.2750 where long-term buy entries were suggested.

A bearish breakout below the support level of 1.3075 was mandatory to allow the further bearish decline towards 1.2930. However, an evident bullish rejection was expressed around this level.

Another bullish visit to the level of 1.3270 (FE 100%) was initiated on November 4. A bullish breakout above 1.3300 was performed again on November 13.

Since last month, the USD/CAD pair has been moving sideways (ranging between 1.3300 and 1.3430).

Daily fixation above 1.3300 exposes the next resistance level at 1.3450 (Fibonacci Expansion 141.0%) where a valid sell entry can be offered again.

On the other hand, a bearish breakdown below 1.3300 (FE 100%) is needed to enhance the bearish side of the market again.

Trading recommendations:

Conservative traders should wait for an obvious bearish closure below 1.3250 (FE 100% and a short-term uptrend) to sell the USD/CAD pair.

S/L should be placed above 1.3350. Initial T/P levels should be placed at 1.3150 and 1.3080.

On the other hand, another sell entry can be offered for retesting at 1.3450 (Fibonacci Expansion 141.0%).

S/L should be located above 1.3500.

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Technical analysis of USD/CAD for December 4, 2015

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Overview:

  • According to the previous events and news, the USD/CAD pair is still moving in a ratio of 61.8% Fibonacci retracement levels (at the level of 1.3214) and 100% Fibonacci retracement (at the level of 1.3456). In particular, the USD/CAD pair is expected to form a double top at the level of 1.3456. Consequently, it will be good to sell below the level of 1.3456 with the first target at 1.3286 to test the minor support. Additionally, if the trend can break the minor support at the level of 1.3286, it might resume to 1.3214 in order to test the major support. On the other hand, the stop loss should be set above the level of 1.3500. Nevertheless, check out market volatility before investing because the sight price may have already been reached and scenarios become invalid.

Intraday technical levels:

Date:4/12/2015

Pair:USD/CAD

  • R3: 1.3510
  • R2: 1.3455
  • R1: 1.3404
  • PP: 1.3349
  • S1: 1.3298
  • S2: 1.3243
  • S3: 1.3192
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Technical analysis of EUR/USD for December 4, 2015

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Overview:

  • The EUR/USD pair has already found support at 1.0745 and 1.0800. Support coincides with a ratio of 23.6% Fibonacci retracement levels. So, an upward trend is still strong from the level of 1.0800. Furthermore, it will be very profitable to buy above this level for retesting it in the short term. Therefore, buy deals are recommended above the weekly support at 1.0800 with targets at 1.0912 and 1.1003 to reach the double top and the first resistance. Also, it should be noted that the level of 1.0888 represents the daily pivot point. On the contrary, the resistance is seen at the level of 1.1003 and next resistance is likely to set around the area of 1.1063 today. Therefore, an upward movement will probably be higher than 1.0745 and 1.0800 with targets at the levels of 1.0912, 1.1003, and 1.1063.

Trading recommendation:

  • The market has been calling for a strong bullish movement since yesterday. Support was found at the level of 1.0800. Hence, buy at 1.0800 with targets at 1.0912, 1.1003, and 1.1063.
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EUR/USD technical analysis for December 4, 2015

The EUR/USD pair was very volatile yesterday during the Rate announcement of the ECB, but finally broke above the resistance level at 1.0640 and even tested 1.0950. The downward sloping wedge was finally broken upwards, and the stochastic oscillator verified after giving bullish divergence signals.

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Blue lines -bullish wedge

A short-term trend has changed to bullish after yesterday's ECB press conference. The price broke out and above the Ichimoku cloud, and the downward sloping wedge. The price has now reached the minimum bounce target of the 38% Fibonacci retracement. With the announcement of the US non-farm payrolls today, we should expect another exciting trading day.

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Blue lines - wedge pattern

EUR/USD has broken above the daily kijun-sen resistance and has chances to reach the 61.8% Fibonacci retracement and the Ichimoku cloud. However, traders should be very cautious amid the NFP coming out today as there are many chances of a pullback towards 1.07.

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GBP/USD technical analysis for December 4, 2015

The GBP/USD pair has made a bullish reversal after touching the lower boundary of the long-term downward sloping wedge. There is more upside to be expected towards 1.5280, but traders should now be very cautious as we are mid-range between support and resistance.

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In the 4-hour chart, prices have entered the Ichimoku cloud turning short-term trend to neutral from bearish. Short-term support is found at 1.5080 and below that at 1.5030. Resistance is seen at 1.5170 and next at 1.5280.

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Blue lines - downward sloping wedge

The daily chart above shows the downward sloping wedge and the support levels we bounced off in a clearer way. I believe we should expect more upside in this pair over the next week as the Stochastic oscillator has just turned above 20 and has enough room to travel towards the overbought levels.

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Global macro overview for 04/12/2015

Global macro overview for 04/12/2015:

The Non Farm Payrolls release is scheduled for 1:30 pm GMT today . Market participants expect quite nice improvement in number of jobs created: 271 K is expected versus 201 K month before. Moreover, the average hourly earnings are forecasted to rise from 0.2% to 0.4%. The unemployment rate should stay unchanged at the level of 5.0%. Please notice this jobs report is the last one before the Federal Reserves opportunity to raise rates on December 16. If the numbers come in in line or better then expected, the Fed will have green light to raise the short-term interest rates at its next meeting.

The US dollar index declined yesterday to the support level of 98.34 and broke slightly below it. The next support is seen at the level of 97.82.

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USD/JPY technical analysis for December 4, 2015

The USD/JPY pair made a triple top in the area of 123.70-123.90 and got rejected yesterday. The trend remains neutral as the price continues to trade inside the trading range of 122.20-124.

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Dark blue line - long-term resistance

Blue parallel lines - price channel

USD/JPY continues to trade inside the sideways neutral channel between 122.20 and 124. The price remains above the Ichimoku cloud and above the kijun-sen (yellow indicator) support. Breaking below the support area of 122.20-122 will open the way to a deeper correction towards 120.50.Strong resistance is seen at 124.

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Blue lines - triangle patterns

The USDJPY is very common to produce triangle patterns over the last couple of years. The long-term trend remains bullish as price in the weekly chart remains above the Ichimoku cloud. Weekly cloud support is found at 121.50. Another triangle pattern could be forming. A breakout above 124 can open the way for a final leg up towards 130.

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Global macro overview for 04/12/2015

Global macro overview for 04/12/2015:

At its monthly meeting, the European Central Bank cut the interest rate to 0,05% from 0.1% and cut deposit rate by 10 basis points to -0.30% yesterday. Moreover, the ECB opted to leave the size of its asset purchases unchanged and extend it to only March 2017, only six months beyond when it had previously committed it. Market participants had expected more decisive actions from Draghi than he presented. As the result of the great disappointment, the EUR/USD pair exploded to the upside making a high at the level of 1.0980.

Currently, the EUR/USD pair is trading at the level of 1.0875. The next weekly resistance is at the level of 1.1096 and the next support is seen at the level of 1.0831.

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Technical analysis of USD/CAD for December 4, 2015

General overview for 04/12/2015 09:00 CET

The current price action confirms that a possible pattern, which is unfolding now, looks like a triangle. An upward spike above the intraday resistance at the level of 1.3433 and then reversal is very possible after the important news release expected later today.

Support/Resistance:

1.3447 - WR1

1.3433 - Intraday Resistance

1.3362 - Weekly Pivot

1.3290 - WS1

1.3279 - Intraday Support

Trading recommendations:

Day traders should refrain from trading and wait for a better trading setup to occur, because current risk to reward ratio is too big for any trade. Patience is needed.

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USDX technical analysis for December 4, 2015

The US dollar index as expected made a steep decline yesterday following the remarks and policy announcement of ECB President Mario Draghi. The EUR/USD pair is the main component of the index, and the rally in that pair of more than 300 pips is likely to apply big pressure on the US dollar index.

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Blue lines - bearish wedge (broken)

As I have pointed out several times over the last few days, the US dollar index was inside a bearish wedge and it is expected to break downwards soon. Bulls should have raised their stops. Yesterday, I also said that at current levels the risk reward for being long on the USDX is not good for bulls.

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The US dollar index got rejected at the previous high and resistance as expected. The stochastic oscillator was overbought both in the short- and long-term charts. The price has already reached the 38% Fibonacci retracement and has started a bounce. I do not believe the downward correction is over and we should expect more downside. Stops for short positions should be placed at recent highs, because if we now reach a new high, a target is seen at 104-105.The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of EUR/JPY for December 4, 2015

General overview for 04/12/2015 08:50 CET

The ending diagonal pattern in wave (c) blue had been completed. The price exploded to the upside following the news release. The target for big cycle wave C is above the top of the wave A, but first the market must break out above the descending golden channel trend line around the level of 136.00.

Support/Resistance:

129.33 - WS1

130.18 - Weekly Pivot

130.71 - WR1

131.57 - WR2

132.06 - WR3

134.48 - Intraday Resistance

Trading recommendations:

Day traders should refrain from trading and wait for a better trading setup to occur, because current risk to reward ratio is too large for any trade. Patience is needed.

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Gold technical analysis for December 4, 2015

Gold price bounced yesterday as the US dollar weakened after the ECB's president press conference. But the bounce was very weak relative to weakness in the greenback . Today's NFP number will play a major role in what we should expect over the coming weeks for gold.

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Gold continues to provide bullish divergence in the stochastic oscillator. The price remains below the Ichimoku cloud resistance of $1,070. Breaking above the cloud will open the way for a move towards at least $1,100. Technically, a bounce is justified at current levels both in the 4-hour chart and in the weekly chart.

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Red lines - wedge

Blue lines - projection

Gold price remains near the lower boundaries of the wedge pattern that we have identified in the weekly chart. Stochastic is oversold, a bounce should come soon (maybe today) following the announcement of the US Non-Farm Payrolls. Yesterday's weak bounce of gold was not a good sign, so bulls are likely to have the last chance today. Lower targets for gold to make a bottom are still open between $1,030-$900.

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Technical analysis of Silver for December 04, 2015

Technical outlook and chart setups:

Silver is testing its immediate trend-line resistance of $14.10 at the moment. Please note that the metal had bounced back after hitting lows around $13.82 earlier. Resistance is seen at the fibonacci 0.786 level now. A breakout above the trend line and subsequently above $14.25/30 in coming sessions could encourage bulls, but in favor of the continued downtrend, we still expect the metal to drop towards $13.00 as shown here. It is therefore recommended to remain flat. Immediate support is seen the levels of $13.82 followed by $13.00 and lower, while resistance is seen at $14.30 followed by $14.45/50 and higher.

Trading recommendations:

Remain flat for now.

Good luck!

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Technical analysis of Gold for December 04, 2015

Technical outlook and chart setups:

Gold has retraced back to the level of $1,062.00/65.00 after reaching fresh lows at $1,046.00 earlier. The yellow metal faced resistance at $1,075.00, and until the resistance holds good, bears are expected to gain control and push prices lower towards $1,030.00 and subsequently towards $999.00. It is hence recommended to initiate 50% short positions now with risk at $1,078.00. Immediate support is seen at $1.046.00 followed by $1,030.00 while resistance is lined up to $1,075.00 followed by $1,088.00 and higher.

Trading recommendations:

Initiate 50% short positions now with stop at $1,078.00, a target is open.

Good luck!

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Technical analysis of GBP/CHF for December 04, 2015

Technical outlook and chart setups:

The GBP/CHF pair dropped towards 1.4950/60 levels yesterday. Now it looks like the drop is almost over, and the pair should look up to bulls to reach higher highs and higher lows from here. One last drop to 1.4930 is still possible before the rally will resume. It is hence recommended to initiate 50% long positions now and the remaining 50% at 1.4930 with risk at 1.4800. Immediate support is seen at the level of 1.4930, while resistance is seen at 1.5320. Bulls are expected to regain control soon.

Trading recommendations:

Initiate 50% long positions now and the remaining at 1.4930 with stop at 1.4800, a target is open.

Good luck!

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Technical analysis of EUR/JPY for December 04, 2015

Technical outlook and chart setups:

The EUR/JPY pair has rallied 500 pips rising through the projected targets at 134.00/50 in just one trading session. Please note that the pair has reached the Fibonacci 0.618 resistance levels of the drop from 137.00/50 to 129.50. Moreover it is testing the intermediary resistance line as well. A bearish reversal is possible from the current levels, that could drag prices lower again. It is hence recommended to take profits on the long positions now and initiate short positions with risk at the level of 135.50. Immediate resistance is seen at 136.50, while support is seen at 133.50/134.00.

Trading recommendations:

Take profits on long positions. Stay short now with stop at 135.50, a target is open.

Good luck!

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Elliott wave analysis of EUR/NZD for December 4, 2015

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Wave summary:

We have finally seen a bottom at 1.5784 (but at no point was a close below 1.5897 seen on the 4 hourly chart) for a strong impulsive rally. In the short term, I expect support at 1.6053 to be able to protect the downside for the next impulsive rally above important resistance at 1.6576 confirming the bottom for a continuation higher to 1.8020 and above.

As we are in the very start of a new impulsive uptrend, we have to be aware that the first correction from 1.5784 to 1.6490 can be deep.

Trading recommendation:

We are long EUR from 1.6010 and will take profit here at 1.6355. We will buy EUR again at 1.6065 or upon a breakout above 1.6490 (one order done cancels another).

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Elliott wave analysis of EUR/JPY for December 4, 2015

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Wave summary:

A rally from the low of 129.62 was much stronger than expected alone resistance at 130.93, resistance at 132.50, and the invalidation point at 133.22, which has forced us to review our previous preferred count. This the previous count could not be correct upon the breakout above 133.22 as that left us with overlap between wave [i] and wave [iv], which is not allowed under the Elliott Wave Principle.

The new preferred count shows a leading diagonal from the 141.06 high has unfolded as wave (i) and wave (ii) is now ongoing for a correction back to the top of wave iv, which also marks the 61.8% corrective target at 136.70.

In the short term, the leading diagonal resistance line near 134.50 will likely protect the upside for a minor correction to 132.73 and maybe even closer to 131.64 before the next rally higher to 136.70.

Trading recommendation:

We took profit on our long EUR position at 132.25. We will buy EUR again at 131.75 with stop placed at 129.75 and take profit placed at 136.50.

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Technical analysis of EUR/USD for December 04, 2015

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When the European market opens, economic news on the Retail PMI and German Factory Orders m/m is due to be published. The US will release economic data on the Trade Balance, Unemployment Rate, Non-Farm Employment Change, and Average Hourly Earnings m/m. So amid the reports, EUR/USD will move with medium to high volatility during this day.

TODAY TECHNICAL LEVELS:

Breakout BUY Level: 1.0973.

Strong Resistance:1.0967.

Original Resistance: 1.0956.

Inner Sell Area: 1.0945.

Target Inner Area: 1.0920.

Inner Buy Area: 1.0895.

Original Support: 1.0884.

Strong Support: 1.0873.

Breakout SELL Level: 1.0867.

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 December 04, 2015

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In Asia, Japan will release data the Consumer Confidence and Average Cash Earnings y/y. The US will publish some economic data on the Trade Balance, Unemployment Rate, Non-Farm Employment Change, and Average Hourly Earnings m/m. So, there is a strong probability that the USD/JPY pair will move with low to medium volatility during the Asian session, but with medium to high volatility during the US session.

TODAY TECHNICAL LEVELS:

Resistance. 3: 123.31.

Resistance. 2: 123.07.

Resistance. 1: 122.83.

Support. 1: 122.53.

Support. 2: 122.29.

Support. 3: 122.05.

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 major pairs for December 4, 2015

EUR/USD: In a surprise move, the EUR/USD pair broke out of its recent sideways movement in the context of a downtrend, going upwards by 450 pips. There is a now a Bullish Confirmation Pattern in the market, which has overturned the recent bearish bias abruptly. More fundamental figures are expected today and they could have impact on the markets.

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USD/CHF: It was very interesting that the USD/CHF pair dropped by over 350 pips on Thursday. This week alone, the price has dropped by 400 pips leading to an overnight bearish outlook in the market. Since the price has dropped below the great psychological level of 1.0000, a further bearish movement is possible.

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GBP/USD: Having tested the accumulation territory of 1.4900, this market went upwards by 250 pips, testing the distribution territory of 1.5150. One thing: the bearish losses that were seen this week so far have already been gained. On the other hand, the upward bounce, which happened in a weak positive correlation with the EUR/USD pair, has not been strong enough to override the extant bearish bias. The price would need to move further upwards by 200 pips to override the bearish bias.

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USD/JPY: Sudden weakness in the USD has made this currency trading instrument gone lower across the EMA 56 to the downside. The RSI period 14 is now below the level of 50, which is an indication of early bearish bias in the market. The bearish bias might continue.

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EUR/JPY: It had already been said that this cross would not go upwards seriously unless the EUR gained serious stamina, or the JPY lost stamina. The price moved upwards by 450 pips in a single day after testing the demand zone of 130.00. The price has already moved above the demand level of 134.00, and further bullish movement is possible.

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Daily analysis of USDX for December 04, 2015

On the H1 chart, the USDX had a very bearish reaction after the ECB meeting and that is why we can currently observe a sharp drop towards the support level of 97.60, where a temporal bottom is found. However, we can expect a corrective move until the resistance zone of 98.80 in which a breakout could open the doors to test the level of 99.25. The MACD indicator is reaching oversold conditions.

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H1 chart's resistance levels: 98.80 / 99.25

H1 chart's support levels: 97.60 / 97.01

Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the USDX breaks with a bullish candlestick; the resistance level is seen at 98.80, take profit is at 99.25, and stop loss is at 98.34.

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Daily analysis of GBP/USD for December 04, 2015

The cable has been moving on a strong bullish bias after a strong bottom was found around the psychological level of 1.4900 during Thursday's session in the ECB's meeting aftermath. Currently, the pair is doing a consolidation above the 200 SMA on the H1 chart. It is possible to see a higher high pattern formation in coming days. The MACD indicator is reaching overbought conditions.

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H1 chart's resistance levels: 1.5177 / 1.5219

H1 chart's support levels: 1.5122 / 1.5031

Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the GBP/USD pair breaks a bearish candlestick; the support level is found at 1.5122, take profit is at 1.5031, and stop loss is at 1.5219.

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NZD/USD intraday technical levels and trading recommendations for December 3, 2015

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The daily chart shows a bullish Flag pattern that was initiated on September 23 around the level of 0.6230.

A bullish engulfing candlestick was expressed at 0.6520 yesterday.Today, a bullish breakout above 0.6600 is taking place.

Temporary bearish rejection should be expected around 0.6690, which is a prominent daily resistance level on the daily chart. Actually, initial bearish rejection has been expressed earlier today.

On the other hand, an estimated projection target for this flag pattern is located at 0.6950 as long as the NZD/USD pair keeps trading above 0.6600.

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Recently, significant bullish rejection was expressed around 0.6430 followed by a consolidation range that extended between 0.6500 and 0.6600.

Earlier this week, an obvious bullish breakout above 0.6600 was executed via a full-body bullish H4 candlestick.

Next resistance levels to meet the NZD/USD pair are located around 0.6690 and 0.6750 where temporary bearish rejection should be expected.

For conservative traders, a valid buy entry can be offered around 0.6600 (corresponds to the backside of the broken trend and the upper limit of the broken consolidation range). S/L should be set as closure below 0.6550 on the H4 chart.

On the other hand, the price level of 0.6640 remains the key level to be defended by NZD/USD bulls to keep pushing higher. Otherwise, a deeper bearish pullback towards 0.6600 should be expected.

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