Technical analysis of USD/JPY for December 18, 2015

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In Asia, Japan will release the BOJ Press Conference, Monetary Policy Statement and the US will release some economic data such as Flash Services PMI. So there is a big probability the USD/JPY will move with low to medium volatility during the day.

TODAY TECHNICAL LEVELS:

Resistance. 3: 123.15.

Resistance. 2: 122.91.

Resistance. 1: 122.67.

Support. 1: 122.37.

Support. 2: 122.13.

Support. 3: 121.89.

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.

Thank you for your attention.

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USD/CAD intraday technical levels and trading recommendations for December 18, 2015

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Overview:

A bullish breakout above the previous consolidation zone between 1.2400 and 1.2800 was executed 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 1.2800 and 1.3400.

Few weeks ago, 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 (the upper limit of the recent consolidation range) was performed on December 7.

Daily fixation above 1.3400 enhances the bullish side of the market.

A bullish visit towards the next resistance level of 1.4100 (Fibonacci Expansion 100%) should be expected. Significant bearish rejection and a valid sell entry can be offered around this level.

On the other hand, the price zone around 1.3370-1.3400 remains a significant support zone to be watched for valid buy entries if a bullish pullback occurs soon.

Trading recommendations:

Conservative traders should wait for the USD/CAD pair to retrace towards the zone of 1.3380-1.3400 to have a low risk 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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Intraday technical levels and trading recommendations for EUR/USD for December 18, 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 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 strong bearish rejection, which existed 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 performed 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 the recent bullish pullback was initiated.

This week, the level of 1.1000 constituted a significant supply level to offering a valid sell entry. S/L should be placed above 1.1010. Initial T/P levels were located at 1.0900 and 1.0810.

On the other hand, an obvious bearish closure below 1.0820 is needed to allow declining further bearish towards 1.0730 and even 1.0550.

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Technical analysis of EUR/USD for December 18, 2015

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When the European market opens, some economic news will be released such as Current Account.The US will release the economic data too such as the Flash Services PMI, so amid the reports, EUR/USD will move low to medium volatility during this day.

TODAY TECHNICAL LEVELS:

Breakout BUY Level: 1.0891.

Strong Resistance:1.0885.

Original Resistance: 1.0874.

Inner Sell Area: 1.0863.

Target Inner Area: 1.0838.

Inner Buy Area: 1.0813.

Original Support: 1.0802.

Strong Support: 1.0791.

Breakout SELL Level: 1.0785.

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

Intraday technical levels and trading recommendations for GBP/USD for December 18, 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 of 1.5200 (the origin of a previous bullish engulfing weekly candlestick) was broken to the downside 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 of 1.4950 was expected as a result of the bearish breakdown below 1.5200.

Note that an obvious 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 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 earlier this month on December 3.

A bullish pullback towards 1.5200-1.5230 was expressed as the GBP/USD pair managed to hold above 1.5000 and 1.5100.

This week, a significant bearish rejection was expressed around 1.5230. Two bearish engulfing daily candlesticks have already been expressed. The level of 1.4950 is the key level to be watched for new sell entries.

Trading Recommendation:

A valid sell entry was suggested anywhere around the supply level of 1.5250. S/L should be placed above 1.5300.

Risky traders can sell the GBP/USD pair after the obvious daily closure below 1.4950 which took place yesterday.

An initial bearish target would be located at 1.4850. S/L should be set as a daily closure above 1.4960.

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EUR/NZD analysis for December 18, 2015

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Overview:

Recently, EUR/NZD has been moving upwards .The price tested the level of 1.6215 in an average volume. In the daily time frame, I found weak demand and a neutral bar. In the H4 time frame, I found strong head and shoulders formation confirmed (broken neckline). Be careful when buying EUR/NZD at this stage since lower prices are expected. I had placed Fibonacci expansion to find potential support levels. I got Fibonacci expansion 61.8% at the level of 1.6070, Fibonacci expansion 100% at the level of 1.5840 and Fibonacci expansion 161.8% at the level of 1.5470.

Fibonacci Pivot Points:

Resistance levels:

R1: 1.6200

R2: 1.6240

R3: 1.6315

Support levels:

S1: 1.6055

S2: 1.6010

S3: 1.5940

Trading recommendations : Buying EUR/NZD looks very risky at this stage since the price confirmed head and shoulders formation. Watch for potential selling opportunities.

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Gold analysis for December 18 , 2015

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Overview:

Since our last analysis, gold has been trading downwards. As I had expected,the price tested the level of $1,047.54. In the daily time frame, I found a strong supply bar, which is a sign that buying looks risky. The trend is downward in the mid- and long terms. In the M30 time frame, we can observe successful test of our key support level at $1,047.50. Intraday resistance is seen at the level of $1,059.00. I still advice you to watch for potential selling opportunities after retracement. If the price breaks the level of $1,047.00, it will confirm a potential test of $1,010.00.

Daily Fibonacci pivot points:

Resistance levels

R1: 1,067.00

R2: 1,072.20

R3: 1,080.80

Support levels:

S1: 1,050.00

S2: 1,044.55

S3: 1,035.75

Trading recommendations: Watch for selling opportunities. The trend is downward in the short and mid terms.

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Daily analysis of Silver for December 18, 2015

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Overview

Silver price bounced strongly to the downside after testing the bearish channel's resistance which appears in the chart, which supports the continuation of our bearish trend expectation in the upcoming period, supported by the EMA50, waiting for a visit to 13.50 followed by 13.00. In general, we will continue to suggest the bearish trend as long as the price is below the level of 14.15 as breaching it represents a positive factor which can lead the price to recovery attempts on an intraday and short-term basis. Expected trading range for today is seen between support of 13.40 and resistance of 14.15.

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Daily analysis of GBP/JPY for December 18, 2015

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Overview

GBP/JPY's fall from 188.79 is still in progress and an intraday bias remains downside. As noted before, a consolidation pattern from 180.36 was completed at the level of 188.79 and a deeper decline should be seen back to the support zone of 180.36/64. Nonetheless, a breakout of minor resistance at 183.96 would dampen our bearish view and turn focus back to the resistance level of 186.33. This is supported by bearish divergence condition in the weekly MACD. Also, GBP/JPY was close to the key cluster resistance line of 61.8% retracement of 251.09 to 116.83 at 199.80, which is close to the psychological level of 200. A breakout of 174.86 will confirm trend reversal bringing 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 to bring reversal finally.

Daily Pivots: (S1) 182.10; (P) 182.86; (R1) 183.36;

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Technical analysis of USD/JPY for December 18, 2015

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USD/JPY is expected to trade in a lower range as a bias remains bullish. Overnight, the US stock indices ended lower as once again energy shares were depressed by the continued decline in oil prices. The Dow Jones Industrial Average fell 1.4% to 17495, the S&P 500 lost 1.5% to 2041, and the Nasdaq Composite was down 1.4% to 5002. Nymex crude oil declined 1.6% to $34.95 a barrel.

The benchmark 10-year Treasury yield was down to 2.236% from 2.291% at the previous session. And gold plunged 2.0% to $1,051 an ounce. The US dollar kept strengthening in the wake of the Fed rate increase with the Wall Street Journal Dollar Index rising 0.8% to 90.75. EUR/USD dropped 0.8% to 1.0825, GBP/USD fell 0.7% to 1.4900, while USD/JPY was up 0.3% to 122.55. At the same time, the US dollar posted solid gains against commodity-related currencies, with USD/CAD surging 1.1% to 1.3935, AUD/USD plunging 1.5% to 0.7125 and NZD/USD down 1.4% to 0.6697. The pair rose to as high as 122.87 overnight before entering a consolidation phase. The 20-period (30-minute chart) moving average remains above the 50-period one, while the pair is currently trading around the 50-period moving average. At the same time, the level of 122.60 (an over-lapping level of resistance and support seen on December 16) still holds as the key resistance. As long as the pair ends the consolidation below the key resistance at 122.60, it should resume its downward path toward the first downside target at 121.50 (a resistance seen on December 8). The second downside target is seen at 121.20. 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 121.50. A break of that target will move the pair further downwards to 121.20. The pivot point stands at 122.60 . In case the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, long positions are recommended with the first target at 123.05 and the second target at 123.50. Resistance levels: 123.05 123.50 123.85 Support levels: 121.50 121.20 120.90

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Technical analysis of USD/CHF for December 18, 2015

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USD/CHF is expected to trade with a bullish bias above 0.9925. The pair managed to hold above its nearest support at 0.9925. It is likely to perform a new bounce after a limited consolidation. The process of reaching higher highs and lows remains unchanged, which should confirm a positive outlook. Besides, the 20-period and 50-period moving averages are still on the upside. To sum up, as long as 0.9925 remains the key support, look for a new rise to 1.0015 and 1.0055.

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 1.0015 and the second target at 1.0055. In the alternative scenario, short positions are recommended with the first target at 0.9900 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 0.9875. The pivot point is at 0.9925.

Resistance levels: 1.0015 1.0055 1.0095

Support levels: 0.99 0.9875 0.9830

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Technical analysis of NZD/USD for December 18, 2015

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NZD/USD is under pressure. After yesterday's downside breakout of 0.6720 (a key support), the pair reversed down heading toward its next support at 0.6665. Both the 20-period and 50-period moving averages are heading downwards, and should continue to push prices lower. Besides, the relative strength index is negative below its neutrality area of 50. In this case, as long as 0.6750 holds on the upside, look for a further decline to 0.6665 and 0.6615.

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 0.6650. A break of that target will move the pair further downwards to 0.6615. The pivot point stands at 0.6750. 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 0.6775 and the second target at 0.6805.

Resistance levels: 0.6775 0.6805 0.6860

Support levels: 0.6650 0.6615 0.6565

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Technical analysis of GBP/JPY for December 18, 2015

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The GBP/JPY pair is under pressure. The pair stays below its key resistance at 182.45 and is capped by its descending 20-period moving average. Meanwhile, the relative strength index lacks upward momentum. The first target to the downside is set at the horizontal support and overlap at 181.05. A breakout below this level would open the way to further weakness toward 180.20.

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 181.05. A break of that target will move the pair further downwards to 180.20. The pivot point stands at 182.45. 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 183.15 and the second target at 183.75.

Resistance levels: 183.15 183.75 184.10

Support levels: 181.05 180.20 179.10

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USDX technical analysis for December 18, 2015

The US dollar index faced important short-term resistance and reversed. Important medium-term support is found at 97. If lost, we should expect a bigger decline towards 94.50-95. If however the index reaches a higher low, we should expect the price to move above 100.50 next week.

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The US dollar index brake above the Ichimoku cloud in the 4-hour chart, but got rejected at the 61.8% Fibonacci retracement. This rejection is important. However, I believe we can see a push higher towards the 78.6% Fibo. Important short-term support is found at 98.30. Resistance is seen at 99.30 and at 99.80.

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The weekly chart remains bullish in all time frames. An important bounce off the 50% retracement is now an important reversal point. In case of a breakout at the level of 97, the price will fall towards 95-94 where the Ichimoku cloud is found. So, we remain bullish as long as the price is above 97 on a weekly basis.The material has been provided by InstaForex Company - www.instaforex.com

Gold technical analysis for December 18, 2015

Yesterday, gold price move lower towards a previous lows of $1,046 as the US dollar substantially strengthened against other major currencies. Gold price did not reach a new low, but even if it does I believe the downside potential would be limited.

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Red line - support at $1,046 previous low

Blue line - resistance at $1,080

Gold price is below the Ichimoku cloud and below the blue trend line. A short-term trend is bearish. However, the price formed a double bottom and bounces off the early December's lows. This low is going to break over the coming sessions, but I do not see much downside potential.

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Nothing new is observed in the weekly chart. A long-term trend remains bearish. However, the price is trading alongside the downward sloping lower wedge boundary with an oversold stochastic oscillator. Prices should bounce strongly next towards at least $1,120-30. The downward move since $1,190 is nearly completed.

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Global macro overview for December 18, 2015

Global macro overview for 18/12/2015:

The US December Flash Service Purchasing Manager Index is scheduled for release today at 02:45 GMT. Market participants does not expect any major changes in the index as it is supposed to come in at 56 vs. 56.1 a month ago. In November, the index significantly increased posting the highest readings since April, but in overall the outlook still remains below the post-crisis average. Please notice that the services sector represents a large part of the US economy and the relationship between the PMI and GDP is strong.

The EUR/USD pair is trading above the major support at the level of 1.0795 and 1.0831. The next resistance is seen at the level of 1.0923.

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Global macro overview for December 18, 2015

Global macro overview for 18/12/2015:

At the press conference, the Bank of Japan announced its plans to purchase 300 billion yen of ETFs annually that include stocks issued by firms investing in CAPEX and human resources. Moreover, the BoJ decided to extend the average duration of Japanese Government Bond purchases to 7-12 years from 7-10. Please notice that the 300 billion yen in purchases tops its 3 trillion yen of ETF purchases and 80 trillion yen of asset purchases under its current QQE program. Moreover, BoJ Kuroda said this actions are undertaken to help push yields down across the yield curve as the BoJ does not see any limits on QQE for time being.

The USD/JPY pair positively reacted to the news, but the price faced the resistance at the level of 123.77 and now it is trading in the middle of a trading range. The next support is seen at the level of 121.37.

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Technical analysis of USD/CAD for December 18, 2015

The main count has been slightly changed to incorporate another higher high in this market. The bearish divergence has been invalidated, which means the last wave to the upside will be extended with a high probability of a long spike up before potential reversal. The level of 1.3874 is the line in sand for bulls, because any violation of this level will cause purple count invalidation.

Support/Resistance: 1.4032 - WR 21.3926 - WR 11.3847 - Intraday Support 1.3646 - Weekly Pivot Trading recommendations:

Yesterday's TP for buy orders was hit and profits were made. For today day traders should consider buying on dips in this market with SL below the level of 1.3847 and TP at the level of 1.3984.

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Technical analysis of EUR/JPY for December 18, 2015

General overview for 18/12/2015 08:10 CET

An internal wave progression of wave Y brown might be completed now as the first targeted level has been hit and the market might resume its upward trend any time soon. Nevertheless, the corrective cycle might as well turn into more complex and time-consuming cycle as well. This is why as long as the wave b green top is not violated, which would be a bullish confirmation, the outlook is still sideways to bearish.

Support/Resistance:

134.74 - WR2

134.57 - Swing High

133.62 - WR1

133.11 - Weekly Pivot

132.70 - Intraday Resistance

132.12 - 50%Fibo

132.04 - WS1

Trading recommendations:

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

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Technical analysis of GBP/CHF for December 18, 2015

Technical outlook and chart setups:

The GBP/CHF pair might finally made a meaningful bottom at 1.4730 yesterday looking for an opportunity to rally towards 1.5050 and 1.5200. Please note that prices bounced from the Fibonacci 0.786 support of the entire rally between 1.4530 and 1.5570. It is hence recommended to remain long for now, with risk at 1.4700. Immediate support is now seen at the level of 1.4730 (interim) followed by 1.4550 and lower, while resistance is seen at 1.5000 followed by 1.5150 and higher. Bulls are poised to regain control until prices remain broadly above the level of 1.4730.

Trading recommendations:

Remain long for now, stop is at 1.4700, a target is open.

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Technical analysis of EUR/JPY for December 18, 2015

Technical outlook and chart setups:

The EUR/JPY pair is dropping lower towards 131.50 as expected, after testing a high of 133.75 taken place yesterday. It is currently trading around the level of 132.30 at the moment and prices could still drop to 131.50 before reversing. Please note that prices might still be in a counter trend drop, hence it is recommended to remain flat now looking for a reaction at 131.50 before taking fresh long positions. Immediate support is seen at 131.50 followed by 130.00 and 129.00, while resistance is seen at 133.75.00 followed by 134.50.

Trading recommendations:

Book profits on short positions taken yesterday. Look for an opportunity to go long again at the level of 131.50, stop is at 129.00, a target is open.

Good luck!

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Technical analysis of Gold for December 18, 2015

Technical outlook and chart setups:

Gold is trading around the level of $1,056.00 now after today's drop to the level of $1,047.00. The metal has tested the previous low, but managed to hold it well bouncing back. The wave structure might indicate a meaningful bottom in place at $1,045.00, and that the next big move can come on the higher side in the form of an extended corrective rally. It is hence recommended to go long now with risk below $1,045.00. Immediate support is seen at $1,045.00, while resistance is seen at $1,080.00.

Trading recommendations:

Turn bullish now with stop at $1,043.00, a target is open.

Good luck!

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Technical analysis of Silver for December 18, 2015

Technical outlook and chart setups:

Silver is trading around $13.80 now after testing recent lows at the level of $13.63 hit earlier. The metal has got potential to extend towards at least $15.40/50. On the flip side, a breakout below the level of $13.63 should see prices dropping to $13.00 and lower before turning bullish again. There is a high probability that a rally from the current levels will take place, hence it is recommended to initiate long positions now with risk at $13.40. Immediate support is seen at $13.63, while resistance is seen at $14.30 (interim) followed by $14.60 and higher. Bulls may be poised to regain control until prices remain above $13.60.

Trading recommendations:

Initiate long positions with stop at $13.40, a target is open.

Good luck!

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Technical analysis of EUR/USD for December 18, 2015

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The EUR/USD seems to be in a corrective phase after a heavy drop from 1.1500 to 1.0550. The 38.2% Fibonacci retracing has been broken, while the next Fibonacci level (50%) was not tested.

Currently, the price moved lower and rejected off the previous resistance level, which now confirmed to be support (S1) for the second time. As the support level is held, consider buying EUR/USD, while the price is near it targeting the area near 50% Fibonacci retracement, 1.1100 and lower. Stop loss should be placed well below (S1).

Support: 0.7966

Resistance: 1.0970, 1.1113

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Technical analysis of EUR/GBP for December 18, 2015

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EUR/GBP started to look for resistance levels although breaking them consistently. This could be a sign of an uptrend is getting exhausted where a sharp drop in price might be expected.

However, I would expect another and potentially final wave down before the major fall as EUR/GBP holds at all support levels in general and most recent 61.8% Fibonacci retracement in particular.

Consider buying EURGBP while the price is near 0.7280 (61.8% Fibs) targeting 0.7350 area (161.8% Fibs) and perhaps slightly lower. The stop loss should be placed below the most recent low of the 17th of December.

Support: 0.7233, 0.7250

Resistance: 0.7270, 0.7285, 0.7305, 0.7350

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Technical analysis of AUD/USD for December 18, 2015

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Overview:

  • According to the previous events, the AUD/USD pair is still moving between the levels of 0.7156 and 0.7059. The levels of 0.7156 and 0.8725 coincide with the 38.2% of Fibonacci retracement levels and 11.8% respectively in the H4 chart. Therefore, the first step is to wait for a period of tight sideways market before breakouts. Then, probably, the market is going to start showing bearish signs. In other words, it will be profitable to sell below the level of 0.7150 with the first target at 0.7102 and the price will drop towards 0.7060. However, if the pair fails to break 0.7102, the market will indicate a bullish opportunity above it, then the level will act as strong support. For that, buy above the 23.6% of Fibonacci retracement (0.7102) with the first target at 0.7156 and it will call for an uptrend in order to continue bullish movement towards 0.7193.

Forecast:

  • The level of 0.7199 represents the double top, and the weekly support 1 is set at 0.7156. In the long term, sell below the level of 0.7156 with the first target at 0.7100, if the trend is be able to break the double bottom at the level of 0.7100; then it might resume to 0.7060.

Notes:

  • The double top will set at the level of 0.7199.
  • The major support is going to set at 0.7059.
  • We expect a range of 95 pips today.
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Technical analysis of EUR/USD for December 18, 2015

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Overview:

The EUR/USD pair is trading between the levels of 1.0866 and 1.0722 (these levels coincide with the Fibonacci retracement levels 78.6% and 38.2% respectively). It should be noted that the level at 1.0866 will act as a strong resistance because it represents a ratio of 78.6% Fibonacci retracement levels in the H1 chart. Moreover, the daily pivot point has always set below the resistance and it will act as a minor resistance in the area of 1.0849. Therefore, it will be rather gainful to sell below the levels of 1.0866 or 1.0849 and move further downside with targets at 1.0722 and 1.0694. The double bottom will set at the point of 1.0642; but the weekly support 1 has already been found at 1.0694. On the other hand, stop loss should always be taken in account, consequently, it will be of beneficial to set the stop loss above the resistance 1 at the level of 1.0866.

Intraday technical levels:

Pair:EUR/USD

  • 1.0993
  • 1.0954
  • 1.0879
  • 1.0840
  • 1.0765
  • 1.0726
  • 1.0651
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Daily analysis of major pairs for December 18, 2015

EUR/USD: This pair has already generated a "sell" signal making long trades illogical. The price was unable to go above the resistance line at 1.1050, and since then the price has gone down by 220 pips. It is better to seek short trades here, for further southward movement is anticipated.

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USD/CHF: The USD/CHF pair has been making some commendable bullish attempts. The price is now above the support level of 0.9950 in the context of a downtrend. However, it must be mentioned that any movement above the resistance level of 1.0050 will result in a Bullish Confirmation Pattern in the market. By then, the EMA 11 will go above the EMA 56, while the Williams' % Range period 20 is likely to remain in the overbought territory (which has already been attained).

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GBP/USD: The bearish indication on the cable is now conspicuous. This week, the price has fallen by 300 pips, forming a clean Bearish Confirmation Pattern in the market. The price has moved below the distribution territory of 1.4900 going towards the accumulation territory of 1.4850. The market has become really weak and this is expected to continue for some time.

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USD/JPY: Having gone upwards by 230 pips this week (from the demand level at 120.50), the USD/JPY pair has gone bullish. The price is now above the demand level of 122.50, going towards the supply level of 123.00. This has become an easy target for bulls.

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EUR/JPY: A closer look at the 4-hour chart reveals that this cross is in a bullish mode, though the price has moved sideways so far the week. The sideways movement cannot last forever. It is possible for the price to journey further upwards from here, as bulls target the supply zones of 134.00 and 134.50.

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Daily analysis of USDX for December 18, 2015

It seems that the index is trying to consolidate above the 200 SMA for a bullish ride in a short-term basis. However, because of this, the USDX could start to pullback towards the support level of 98.80, where a rebound can happen. It should be noted also that there is a higher high pattern formation ongoing in the H1 chart. The MACD indicator is entering at the negative territory.

USDXH1.png

H1 chart's resistance levels: 99.19 / 99.48

H1 chart's support levels: 98.80 / 98.14

Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the USDX breaks the bullish resistance level at 99.19, take profit is at 99.48, and stop loss is at 98.86.

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Daily analysis of GBP/USD for December 18, 2015

GBP/USD is still alive with an intraday declines held below the resistance level of 1.4918, and now it is expected to test the support zone of 1.4852. A breakout below there will open the doors to another fall towards the level of 1.4802 in coming days. Another scenario is calling for a corrective rebound, which could be possible to happen. The MACD indicator is at the positive territory.

GBPUSDH1.png

H1 chart's resistance levels: 1.4918 / 1.4962

H1 chart's support levels: 1.4852 / 1.4802

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 1.4852, take profit is at 1.4802, and stop loss is at 1.4904.

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Daily analysis of Silver for December 17, 2015

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Overview

Silver price traded with clear positive yesterday to test the bearish channel's resistance that appears in the chart accompanied by clear negative signals coming from stochastic, which supports the chances for bouncing lower to resume the bearish trend, and its next targets are at 13.50 and 13.00. Therefore, we will keep our bearish trend expectations in the upcoming period unless breaching the level of 14.20 and holding above it. Silver price keeps its stability below the bearish channel's resistance level that appears in the chart, while stochastic keeps providing negative signals on the four hours time frame, therefore, we keep preferring the bearish trend in the upcoming period, targeting 13.50 and then 13.00, while its continuation is conditioned by holding below 14.20.

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Daily analysis of GBP/JPY for December 17, 2015

GBPJPYH4.png

Overview

A decline from 188.79 continued last week even though downside momentum was unconvincing. A further fall is expected this week as long as resistance of 186.33 holds. As noted before, the consolidation pattern from 180.36 has completed at 188.79 and a deeper decline should be seen back to the support zone of 180.36/64. Nonetheless, a break of minor resistance at 186.33 would now dampen our bearish view and turn focus back to 188.79. In the longer term, the uptrend from a long term-bottom at 116.83 could be topped. There is no confirmation yet but even in case of another rise, strong resistance is expected near 61.8% retracement of 251.09 to 116.83 at 199.80.

Daily Pivots: (S1) 183.32; (P) 183.26; (R1) 183.96;

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NZD/USD intraday technical levels and trading recommendations for December 17, 2015

nzddaily.png

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

On November 30, a bullish engulfing candlestick was expressed around 0.6520 where the depicted uptrend came to meet the NZD/USD pair.

Shortly after, a bullish breakout above 0.6600 (the upper limit of the flag pattern) took place. This enhanced the bullish side of the market towards 0.6800 initially.

Temporary bearish rejection was expected around 0.6750 and 0.6840 (daily resistance levels) on the daily chart. Actually, an earlier bearish rejection had been expressed two weeks ago on Friday.

On the other hand, an estimated projection target for this flag pattern remains located at 0.6950 only if the NZD/USD pair manages to keep trading above 0.6750 and 0.6840.

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Last Tuesday, an obvious bullish breakout above 0.6600 was made via a full-body bullish candlestick in the H4 chart.

Shortly after, the NZD/CAD pair faced resistance between 0.6700 and 0.6750 providing evident bearish rejection.

For NZD/USD conservative traders, a valid buy entry was suggested around 0.6600 (corresponds to the depicted uptrend and the upper limit of the broken consolidation range).

The level of 0.6840 remains the significant resistance level to offer a valid Intraday sell entry.

On the other hand, bearish fixation below 0.6750 opens the way towards 1.6700 where the depicted uptrend line comes to meet the NZD/USD pair.

A valid buy entry can be considered around the level of 1.6700 (the depicted uptrend line as well as a recent support level) if enough bullish rejection is expressed on the H4 chart.

S/L should be located below 1.6650. T/P levels are projected towards 1.6840 and 1.6900.

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USD/CAD intraday technical levels and trading recommendations for December 17, 2015

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Overview:

A bullish breakout above the previous consolidation zone between 1.2400 and 1.2800 was executed 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 1.2800 and 1.3400.

Few weeks ago, 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 (the upper limit of the recent consolidation range) was performed on December 7.

Daily fixation above 1.3400 enhances the bullish side of the market.

A bullish visit towards the next resistance level of 1.4100 (Fibonacci Expansion 100%) should be expected.

On the other hand, the price zone around 1.3370-1.3400 remains the significant support zone to be watched for valid buy entries if a bullish pullback occurs soon.

Trading recommendations:

Conservative traders should wait for the USD/CAD pair to retrace towards the zone of 1.3380-1.3400 to have a low risk 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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