Daily analysis of Silver for December 10, 2015

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Overview

The silver price returns to move near the EMA50. Stochastic gains positive momentum in the intraday time frames, reinforcing the expectations for resuming the bullish trend on an intraday basis, targeting a test of the 14.85 level. Therefore, we will keep our positive expectations in the upcoming sessions, reminding you that breaching the targeted level will extend silver gains to reach 15.40 mainly, while breaking of the 13.96 mark represents the key of resuming the main bearish trend. Its next targets are located at 13.50 then 13.00. Remember to monitor the price behavior regarding the 14.85 and 13.96 levels closely as it may provide hints for detecting the next trend on a short-term basis. Expect the bullish trend today.

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Technical analysis of USD/JPY for December 10, 2015

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USD/JPY is expected to trade with bearish bias as the key resistance is at 121.95. Overnight, US stock indices ended lower after a choppy session, dragged by shares in consumer durables and apparel as well as technology hardware and financial sectors. Investors also eyed a renewed decline in oil prices. The Dow Jones Industrial Average fell 0.4% to 17,492, the S&P 500 declined 0.8% to 2,047, and the Nasdaq Composite was down 1.5% to 5,022. Nymex crude oil dropped a further 0.9% to $37.16 a barrel, gold edged down 0.1% to $1,072 an ounce, and the benchmark 10-year Treasury was down to 2.208% from 2.239% in the previous session.

At the same time. the US dollar retreated as investors braced for next week's Federal Reserve policy meeting. EUR/USD surged 1.2% to 1.1025 and USD/JPY plunged 1.2% to 121.42. This morning, New Zealand's central bank cut its official cash rate by 25 basis points to 2.50% (as expected) while pointing out that this should be sufficient to return inflation to its target, causing NZD/USD to surge up to 0.6775 from a low of 0.6579. Besides, Australia's jobless rate dropped to 5.8% in November (vs 6.0% expected) from 5.9% in October, sending AUD/USD to soar over 1% to 0.7333. The pair has posted a rebound after falling as low as 121.04 overnight. It is currently being capped by the declining 20-period (30-minute chart), which stands below the 50-period one. The relative strength index remains below the neutrality level at 50. As long as the key resistance at 121.95 is not surpassed, the pair should fall toward the first downside target at 121.00 (around yesterday's low) before dropping further to 120.55 (last seen on November 3).

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 121. A break of that target will move the pair further downwards to 120.50. The pivot point stands at 121.95. 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 122.45 and the second target at 122.70.

Resistance levels: 122.45 122.70 123.10

Support levels: 121 120.50 120.10

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Daily analysis of GBP/JPY for December 10, 2015

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Overview

The H4 chart shows that GBP/JPY remains on the downside for the moment. Overall, we are still favoring the scenario that the consolidation pattern from 180.36 has been completed at 188.79. A deeper decline would be seen to the 180.36/64 support zone. Still, a break of the 186.33 minor resistance would now dampen our bearish view and turn the focus back to 188.79 instead. Besides, GBP/JPY was close to the key cluster resistance of 61.8% retracement of 251.09 to 116.83 at 199.80, which is close to 200 psychological level. A break of 174.86 will confirm a 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 will be cautious about the strong resistance of 199.80/200.00 to bring the reversal finally.

Daily Pivots: (S1) 183.54; (P) 184.45; (R1) 185.23

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Technical analysis of USD/CHF for December 10, 2015

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USD/CHF is expected to trade in a lower range. The pair remains capped by an intraday negative trend line that is in place since December 7. Both the 20-period and 50-period simple moving averages are heading downwards and it should confirm a bearish trend. Besides, the relative strength index has broken down its 30 level. So, as long as 0.9915 is not surpassed, a decline to 0.9815 and 0.9750 in extension is likely to take place.

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 0.9815. A break of that target will move the pair further downwards to 0.9750. The pivot point stands at 0.9915. 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 0.9950 and the second target at 0.9985.

Resistance levels: 0.9950 0.9985 1.0035

Support levels: 0.9815 0.9750 0.97

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Technical analysis of NZD/USD for December 10, 2015

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NZD/USD is expected to trade in a higher range. The pair posted a strong rebound yesterday, and also broke above its key technical level at 0.670. The previous key resistance acts as a support, which should prevent any downward attempts. Furthermore, the intraday 20-period and 50-period moving averages are turning up, calling for a new bounce. The relative strength index indicates that the bullish momentum is still strong. To sum up, as long as 0.670 is not broken down, look for further advance to 0.68 and 0.6835 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 0.68 and the second target at 0.6835. In the alternative scenario, short positions are recommended with the first target at 0.666 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 0.6590. The pivot point is at 0.67.

Resistance levels: 0.68 0.6835 0.6875

Support levels: 0.6660 0.6590 0.6565

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Technical analysis of GBP/JPY for December 10, 2015

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GBP/JPY is expected to trade in a lower range as key resistance stands at 184.55. The pair is turning down against its key resistance at 184.55 and remains on the downside. Both 20-period and 50-period moving averages are turning flat, while the relative strength index is below 50. The first target to the downside is therefore set at 183.25. A break below this level would open the way to further weakness towards 182.95.

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 183.25. A break of that target will move the pair further downwards to 182.95. The pivot point stands at 184.55. 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 184.95 and the second target at 185.4 0.

Resistance levels: 184.95 185.40 186

Support levels: 183.25 182.95 182

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USD/CAD intraday technical levels and trading recommendations for December 10, 2015

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Overview:

A bullish breakout above the previous consolidation zone between 1.2400 and 1.2800 was performed on July 15 (shown on the weekly chart). The long-term bullish target was projected towards the level of 1.3270.

Significant bearish rejection has been observed around 1.3450. Since then, another consolidation range was established between 1.3400 down to 1.2800.

Last week, a bearish breakout below the support level of 1.3075 was needed to allow the further bearish decline towards 1.2900. However, an evident bullish rejection was expressed around this level.

A bullish breakout above 1.3400 was executed on Monday earlier this week.

Daily fixation above 1.3400 enhances the bullish side of the market towards the next resistance level at 1.4100 (Fibonacci Expansion 100%) where bearish rejection should be anticipated.

On the other hand, the price zone of 1.3370-1.3400 constitutes to be a significant support zone to be watched for valid buy entries.

Trading recommendations:

Conservative traders should wait for the USD/CAD pair to retrace towards the zone of 1.3380-1.3400 to have a valid buy entry.

S/L should be placed below 1.3300.

Initial T/P levels should be placed at 1.3500 and 1.3600. The long-term bullish target is projected towards 1.4100.

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Technical analysis of EUR/USD for December 10, 2015

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After a strong downtrend, the EUR/USD pair found the support near the area of 1.05 followed by a strong correctional wave up.

Currently, it looks like the correction is not over yet since the price broke above 23.6% and 38.2% Fibonacci resistance levels and could be heading now towards the next level of 50% retracement. After the 38.2% breakout, the price returned back to it and now it should be acting as a support inviting short-term buyers.

Consider buying EURUSD while it is trading near S1 (1.0970) to target R1 (1.1100) area.

Support: 1.0971, 1.0797

Resistance: 1.1113, 1.1255

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Intraday technical levels and trading recommendations for EUR/USD for December 10, 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 the price to the area around the level of 1.1450.

Hence, the long-term projected target is still seen at 0.9450 if a bearish breakout below the monthly demand level of 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).

Shortly after, the intraday supply zone of 1.1360-1.1400 provided significant bearish rejection. An intraday sell entry was suggested. All T/P levels located at 1.1150 and 1.1050 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.

Three weeks ago, 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 initiated 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 initially.

However, bullish fixation above 1.0550 and 1.0700 brought the EUR/USD pair back towards the level of 1.0990 (Sell Entry).

Today, the price level of 1.1000 remains a significant supply level to be watched for a valid sell entry. S/L should be placed above 1.1075. Initial T/P levels should be located at 1.0900 and 1.0810.

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Intraday technical levels and trading recommendations for GBP/USD for December 10, 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 a month 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 is needed to clear the way towards 1.4800 (long-term bearish target). Otherwise, another bullish pullback towards 1.5350 should be expected.

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

Recently, 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 a further bearish decline towards the weekly demand level of 1.4950 (corresponding to the lower limit of the depicted channel).

A bullish engulfing daily candlestick was expressed around 1.4950 on the previous Thursday.

That is why a bullish pullback towards 1.5200-1.5230 and probably 1.5350 should be expected as long as GBP/USD bulls keep moving above 1.5000 and 1.5100.

Trading Recommendation:

A valid buy entry was suggested around the weekly demand zone of 1.4950-1.4930. S/L should be elevated to 1.5000. T/P levels should be located at 1.5000, 1.5170 and 1.5300.

On the other hand, a valid sell entry can be offered anywhere around the supply level of 1.5300. S/L should be placed above 1.5350.

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EUR/NZD: analysis for December 10, 2015

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Overview:

Recently, EUR/NZD has been moving upwards and then strongly downwards due to RBNZ cut rate by 25 bps. As I had expected, the price tested the level of 1.6744 (my profit target) in a high volume. Anyway, the price went down in an ultra high volume (selling climax) trading around the level of 1.6180 looks very risky. I have had placed Fibonacci retracement to find potential support. I got Fibonacci retracement 61.8% at the level of 1.6165. We may see potential re-testing of 1.6730 in the next period. Selling looks very risky.

Fibonacci Pivot Points :

Resistance levels:

R1: 1.6585

R2: 1.6670

R3: 1.6805

Support levels:

S1: 1.6315

S2: 1.6230

S3: 1.6100

Trading recommendations : Selling EUR/NZD at this stage looks very risky since the price is testing the major support cluster. Watch for potential buying opportunities on dips.

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Technical analysis of GBP/AUD for December 10, 2015

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GBP/AUD has established a mid- to long-term downtrend producing new lower lows and lower highs. However, the pair broke above the resistance area near 23.6% Fibonacci and currently it is finding there support.

It seems there is a good probability for another correctional wave up after the pair bounced off 50% Fibonacci retracement level (S1) and at the same time 38.2% (R1) has not been tested yet. Besides, two downtrend trend lines are still untouched and it is likely that they will be tested in the near future.

Consider buying GBP/AUD while it is trading near S1 (2.0710) to target the R1 (2.1115) area. Stop loss should be placed well below S2 (2.0622), which is 61.8% Fibs.

Support: 2.0710, 2.0622

Resistance: 2.1115

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Global macro overview for 10/12/2015

Global macro overview for 10/12/2015:

Another set of employment data from the US will be released today with Initial Jobless Claims at 1:30pm GMT. This will be the last major employment release ahead of the next week's Fed's announcement, so it might provide a valuable information regarding the Fed interest rate decision on December 16. Last weeks, NFP gained a solid 211,000 workers in November holding above the level of 200,000 for the second straight month. It was definitely another good reason for the Fed to support the monetary policy tightening at the next meeting.

The EUR/USD pair rallied yesterday but did not manage to break out above the level of 1.1016. For now the pair is slipping lower and the next support is seen at the level of 1.0940.

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Technical analysis of GBP/USD for December 10, 2015

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Trading recommendations:

  • According to the previous events, the GBP/USD pair is still trading between the levels of 1.5130 and 1.5214.
  • The level of 1.5214 represents strong resistance in the H1 chart.
  • So, sell below the level of 1.5214 in the short term with the first target at 1.5150, if the trend fails to break the daily pivot point at 1.5150, then it might resume to 1.5112.

Notes:

  • Strong resistance is seen at the level of 1.5214.
  • The double top is going to set at 1.5195.
  • We expect a range of 160 pips ( 1.5214 - 1.5054) in coming two days.
  • The weekly pivot point (1.5054 ) represents the key level this week.
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Global macro overview for 10/12/2015

Global macro overview for 10/12/2015:

The most important event of the day is the Bank of England's interest rate decision and asset purchase decision, which is widely expected as unchanged. The main reason for maintaining the rates unchanged is a global economic slowdown, lacking signs of inflation growth, and strong pound. This is why Mark Carney remarks that the possible interest rate hike "at the turn of the year" might be out of date and the next tightening cycle he mentioned is around the end of 2016. Moreover, the UK is expected to vote on EU membership next year again, so rising the rates in face of this strong headwinds looks risky.

The GBP/USD pair rallied upwards after finding support at the level of 1.4957 and it is currently trading just under the technical resistance at the level of 1.5198.

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Technical analysis of EUR/USD for December 10, 2015

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Overview:

  • The weekly pivot point for the EUR/USD pair set at the level of 1.0791. Also, the daily support 1 was found at the same level on December 10, 2015. On the other hand, the resistance is seen at the level of 1.1033. Consequently, the market has still been calling for downward because the price trapped below the resistance at 1.1033 since yesterday. Accordingly, if the trend fails to close above the level of 1.1033, then it will be a good opportunity to sell below 1.1033 with the first target at 1.0791 in order to test the weekly pivot point, then it will continue moving in a downtrend towards 1.0740 (this level is going to represent the weekly support 2). On the other hand, the stop loss should always be taken in account because it should never exceed your maximum exposure amounts. Consequently, the best location to set your stop loss should be the double top at the level of 1.1125.

Notes:

  • The support is found the level of 1.0791, but the double bottom is going to be placed at 1.0740.
  • The EUR/USD pair called for the bearish market from the level of 1.1033 since yesterday.
  • So, the level of 1.1033 is represents strong resistance.
  • Stop loss should never exceed your maximum exposure amounts.
  • As a rule, the market is highly volatile if the last day had huge volatility.
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Technical analysis of EUR/JPY for December 10, 2015

General overview for 10/12/2015 09:40 CET

The wave b green corrective cycle looks completed and now another wave down is ready to develop. The potential target levels are 132.92 and 132.12 in case of extension.

Support/Resistance:

134.16 - Intraday Resistance

133.47 - Intraday Support

133.06 - Weekly Pivot

132.92 - First Target Level

132.12 - Second Target Level

131.56 - WS1

Trading recommendations:

Day traders should consider opening sell orders from current market levels with SL above the level of 134.16 and TP at the level of 132.92.

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Technical analysis of USD/CAD for December 10, 2015

General overview for 10/12/2015 09:15 CET:

The bigger time frame outlook with the swing high at the level of 1.3621 suggests a further decline might happen any time now. Nevertheless, the confirmation of the top in place will be presented when the market breaks below the level of 1.3379. Until that happens, the market might be still range bounded as investors will be closing the buy orders at the best prices they can get.

Support/Resistance:

1.3621 - Swing High| Intraday Resistance|

1.3555 - WR3

1.3517 - Technical Support |Intraday Support|

Trading recommendations:

Yesterday sell orders had hit the projected TP level and were profitable.

Today, 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.

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USDX technical analysis for December 10, 2015

The US dollar index reached a new lower low of 97 as anticipated after the rejection in the area of 98.80-99. I believe that now US dollar bears should be very cautious as upward reversal is quite possible. Yesterday's high acts as important resistance.

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In the 4-hour chart, the price is below the Ichimoku cloud. Short-term resistance is found at 98.10 and next at 99. Stochastics are oversold and a bounce should be expected over the next few days. We could see a lower low, but I believe traders should be starting to think of upward reversal.

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In the weekly chart, the US dollar index has reached the 50% retracement. We could test even the kijun-sen and the 61.8% Fibonacci retracement at 96.60-96.40. This is an important support and buy area. I believe that with the Fed raising rates next week, we should expect the US dollar to rally towards new highs.The material has been provided by InstaForex Company - www.instaforex.com

Gold technical analysis for December 10, 2015

Despite the EUR/USD rally, gold price has remained close to its recent yearly lows. Bulls were not able to break above $1,090 yesterday and this implies that the correction is not over yet. In overall, I expect gold to move towards the area of $1,120-40 over coming weeks.

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Blue lines - broken wedge pattern

Green lines - price projection

Gold price is trading above the Ichimoku cloud. The price has broken the downward sloping wedge and this was a bullish signal. The upside move in gold price is weaker than initially expected. We could test $1,060 again where cloud support is found, but I believe the upside move towards $1,120-40 is still in play.

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The weekly chart continues to give the same bullish signals as stochastics are oversold turning upwards, while prices are near very important support. I expect gold price to move higher towards at least $1,120 over coming weeks.The material has been provided by InstaForex Company - www.instaforex.com

Elliott wave analysis of EUR/NZD for December 10, 2015

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Wave summary:

We did see an anticipated breakout above resistance at 1.6490 for a rally higher to 1.6749. This morning, RBNZ cut its rates by 25 basis points, which should help this cross move even higher. However, a rather hawkish statement from RBNZ after the rate cut caused a deep retracement of the rally from 1.6049 to 1.6748. We do regard a decline from 1.6748 as a corrective decline, which have ideally terminated at 1.6242 for the next impulsive rally higher towards 1.7191.

That said we have to accept a possibility of an even deeper corrective decline closer to 1.6049, but at no point is this low allowed to be broken as that will invalidate the above count.

Trading recommendation:

Our stop at 1.6390 was hit for a nice 345 pip profit. We will only buy on a break above 1.6348 and place a stop just below the most recent low.

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Elliott wave analysis of EUR/JPY for December 9, 2015

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Wave summary:

Nothing is going on here at the moment. We would still like to see a minor move lower to 132.88 before the next rally higher towards at least 135.34 and possibly even higher to 136.69 before renewed downside pressure should be expected.

Only a direct breakout above resistance at 134.59 will cancel the expected decline closer to 132.88 and move directly towards 135.34.

Trading recommendation:

We are looking for a buying opportunity at 132.95. If done, we will place our stop at 132.00.

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Technical analysis of Silver for December 10, 2015

Technical outlook and chart setups:

Silver retraced to Fibonacci 0.618 levels from its last week's highs to the level of $14.17. Please note that the metal can still drop lower towards $14.00 (which is also the Fibonacci 0.786 support), before resuming its rally. Also watch out for the immediate resistance line turned support around $14.00. Hence it is recommended to initiate 50% long positions now remaining around $14.00 with risk at $13.55. Immediate support is seen at the level of $13.80, while resistance is seen at the level of $14.60 (interim), followed by $15.10 and higher. Bulls are poised to take control back until prices stay above $13.80.

Trading recommendations:

Initiate 50% long positions remaining 50% at $14.00 with stop at $13.55, a target is open.

Good luck!

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Technical analysis of Gold for December 10, 2015

Technical outlook and chart setups:

Gold is trading around $1,072.00/73.00 now looking for an opportunity to drop lower to the levels of $1,060.00/62.00 before resuming its previous rally. Please note that Fibonacci 0.618 support of the rally between $1,045.00 and $1,090.00 also falls around the levels of $1,060.00. Furthermore, the immediate resistance line turned support. It is recommended to exit short positions and remain flat now. Look for an opportunity to go long around the levels of $1,060.00/62.00with risk below $1,045.00. Immediate support is seen at $1,060.00 followed by $1,045.00, while resistance is seen at $1,090.00.

Trading recommendations:

Exit short positions and remain flat now. Look for an opportunity to initiate long positions around the levels of $1,060.00 with stop at $1,042.00, a target is open.

Good luck!

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Technical analysis of EUR/JPY for December 10, 2015

Technical outlook and chart setups:

The EUR/JPY pair is testing its immediate line of resistance around 133.80 now. Please note that the pair had stalled at the level of 134.50 earlier, and since then has been stuck in a range. Also note that 134.50 is just around the Fibonacci 0.618 resistance of a drop between 137.00 and 129.00. It is hence recommended to initiate short positions with risk just above the level of 134.50. Immediate resistance is seen at 134.50 followed by 136.50 and higher, while support is seen at 133.20 followed by 131.00 and lower. Bears should be poised to regain control until prices stay below 134.50.

Trading recommendations:

Initiate short positions with stop at 134.80, a target is at 131.00.

Good luck!

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Technical analysis of GBP/CHF for December 10, 2015

Technical outlook and chart setups:

The GBP/CHF daily chart shows the bigger wave structure. It is clear that the pair has been moving towards higher highs and higher lows since the level of 1.3800. The line of support is also has been followed by prices reversing from near to it at the moment. A morning star bullish reversal candlestick pattern is expected to unfold here, which would confirm that the pair is headed north and a meaningful low has been reached around 1.4860. It is hence recommended to remain long and also look for an opportunity to reach fresh positions with risk remaining around the level of 1.4800. Immediate support is seen at 1.4800 followed by 1.4531 and lower, while resistance is seen at 1.5300 and higher.

Trading recommendations:

Remain long now with stop at 1.4800, a target is open (at least 1.5900).

Good luck!

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

Technical analysis of EUR/USD for December 10, 2015

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When the European market opens, economic news on the French Industrial Production m/m, French CPI m/m, and French Final Non-Farm Payrolls q/q is due to be released.The US will unveil economic data on the Federal Budget Balance, 30-y Bond Auction, Natural Gas Storage, Import Prices m/m, 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: 1.1070.

Strong Resistance:1.1064.

Original Resistance: 1.1053.

Inner Sell Area: 1.1042.

Target Inner Area: 1.1016.

Inner Buy Area: 1.0990.

Original Support: 1.0979.

Strong Support: 1.0968.

Breakout SELL Level: 1.0962.

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 10, 2015

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In Asia, Japan will release data on the PPI y/y and BSI Manufacturing Index. The US will deliver economic data on the Federal Budget Balance, 30-y Bond Auction, Natural Gas Storage, Import Prices m/m, and Unemployment Claims. So, there is a strong probability that the USD/JPY pair will move with low to medium volatility during the day.

TODAY TECHNICAL LEVELS:

Resistance. 3: 121.14.

Resistance. 2: 121.90.

Resistance. 1: 121.67.

Support. 1: 121.38.

Support. 2: 121.14.

Support. 3: 120.90.

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

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

Daily analysis of major pairs for December 10, 2015

EUR/USD: This pair has moved upwards by 200 pips this week. Since the bullish breakout that happened last week, the price has moved upwards by 500 pips. This means the breakout is not false one. The price is now above the support line at 1.1000 going towards the resistance line at 1.1050. It should be noted that the support line at 1.1000 is important; therefore it would not be easy for the price to breach it to the downside anytime soon.

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USD/CHF: The USD/CHF pair has dropped by 170 pips this week. Since the bearish breakout of the last week, the price has nosedived by 470 pips. The price is below the resistance level of 0.9850 going towards the support level of 0.9800. Apart from the natural negative correlation with the EUR/USD pair, another reason for weakness in the USD/CHF pair is the fact that the CHF is also strong.

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GBP/USD: The cable has given out a bullish signal. The price is now above the EMA 11, which in its turn is above the EMA 56. The RSI period 14 is above the level of 50. Furthermore, some fundamental figures are expected today and they might have an impact on the market.

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USD/JPY: The USD/JPY pair has left the recent neutral zone owing to the bearish breakout, which happened on Wednesday. The price dropped by 200 pips this week. There is now a bearish bias in the market. Further southward journey is possible until there may be occasional bounces.

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EUR/JPY: This cross traded sideways on Wednesday without any serious breakout. Since there is still a clear Bullish Confirmation Pattern in the market, the price can easily continue journeying northwards. One reason for this expectation is the bright outlook for the market.

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Daily analysis of USDX for December 10, 2015

The USDX is currently dominated by the bearish bias below the resistance level of 97.60, and the closest support is located at the level of 97.02. When a breakout lower happens there, we should see a lower continuation towards the level of 96.62. The US Dollar is still weak and the 200 SMA on the H1 chart is currently favoring the bearish scenario. The MACD indicator is at the negative territory.

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H1 chart's resistance levels: 97.60 / 98.80

H1 chart's support levels: 97.01 / 96.62

Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the US dollar index breaks with a bearish candlestick; the support level is found at 97.01, take profit is at 96.62, and stop loss is at 97.37.

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Daily analysis of GBP/USD for December 10, 2015

We have seen huge bullish momentum gained by the GBP/USD pair during Wednesday's session, as the pair is currently doing a consolidation above the 200 SMA on the H1 chart. We should expect a breakout above the resistance zone of 1.5181 in order to see a further advance towards the next obstacle for buyers around the level of 1.5239, of course after a higher high pattern formation finishes. The MACD indicator is at the positive territory.

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H1 chart's resistance levels: 1.5181 / 1.5239

H1 chart's support levels: 1.5122 / 1.5072

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 1.5181, take profit is at 1.5239, and stop loss is at 1.5124.

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Daily analysis of Silver for December 09, 2015

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Overview

The silver price continues fluctuating near the previously breached minor bearish channel's resistance level, keeping its stability above this level. It keeps the bullish trend scenario valid and active for today. It depends on the stability above the 13.96 level, while its main target is located at 14.85. Remember to monitor the price behavior when reaching any of the above-mentioned levels as breaching the 14.85 level will lead the price to achieve more gains. Breaking of 13.96 represents the key of resuming the main bearish trend, which next targets are located at 13.50 then 13.00. On the other hand, you should take into consideration that breaking of the 13.96 level will stop the suggested rise and push the price to decline again.

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NZD/USD intraday technical levels and trading recommendations for December 9, 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.

As anticipated, resistance levels of the USD/CAD pair is found around 0.6690 and 0.6750 providing evident bearish rejection.

For conservative traders, a valid buy entry was suggested 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 a closure below 0.6550 on the H4 chart.

On the other hand, the level of 0.6640 remains the key level to be defended by NZD/USD bulls with the aim to keep pushing higher. Otherwise, a deeper bearish pullback towards 0.6600 should not be excluded to happen again.

Next bullish targets come to meet the NZD/USD pair at 0.6666, 0.6700 and 0.6750.

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Daily analysis of GBP/JPY for December 09, 2015

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Overview

Intraday bias in GBP/JPY remains on the downside for the moment. Overall, we are still favoring the scenario that the consolidation pattern from 180.36 has been completed at 188.79. A deeper decline would be seen to the 180.36/64 support zone. Nevertheless, a break of the 186.33 minor resistance would now dampen our bearish view and turn the focus back to 188.79 instead. The breach of the medium-term trend-line support is taken as a sign of a trend reversal. This is supported by bearish divergence condition in the weekly MACD. Besides, GBP/JPY was close to the key cluster resistance of 61.8% retracement of 251.09 to 116.83 at 199.80, which is close to the 200 psychological level. A break of 174.86 will confirm a 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 will be cautious about strong resistance from 199.80/200.00 to bring the reversal finally.

Daily Pivots: (S1) 183.58; (P) 184.66; (R1) 185.58

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USD/CAD intraday technical levels and trading recommendations for December 9, 2015

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Overview:

A bullish breakout above the previous consolidation zone between 1.2400 and 1.2800 was performed on July 15 (shown on the weekly chart). The long-term bullish target was projected towards the level of 1.3270.

Significant bearish rejection has been observed around 1.3450. Since then, another consolidation range was established between 1.3400 down to 1.2800.

Last week, a bearish breakout below the support level of 1.3075 was needed to allow the further bearish decline towards 1.2900. However, an evident bullish rejection was expressed around this level.

A bullish breakout above 1.3400 was executed on Monday earlier this week.

Daily fixation above 1.3400 enhances the bullish side of the market towards the next resistance level at 1.4100 (Fibonacci Expansion 100%) where bearish rejection should be anticipated.

On the other hand, the price zone of 1.3370-1.3400 is still a significant support zone to be watched for valid buy entries.

Trading recommendations:

Conservative traders should wait for a bearish pullback towards 1.3380-1.3400 to buy the USD/CAD pair. S/L should be placed below 1.3300.

Initial T/P levels should be placed at 1.3500 and 1.3600. A bullish target is projected towards 1.4100.

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Intraday technical levels and trading recommendations for EUR/USD for December 9, 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 the price to the area 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).

Shortly after, the intraday supply zone of 1.1360-1.1400 provided significant bearish rejection. An intraday sell entry was suggested. All T/P levels located at 1.1150 and 1.1050 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.

Three weeks ago, 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 initiated 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 initially.

However, bullish fixation above 1.0550 and 1.0700 brought the EUR/USD pair back towards the level of 1.0990 (Sell Entry).

Today, the price level of 1.1000 remains a significant supply level to be watched for a valid sell entry. S/L should be placed above 1.1075. Initial T/P levels should be located at 1.0900 and 1.0810.

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