USD/CAD intraday technical levels and trading recommendations for December 23, 2015

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Overview:

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

A 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 7th.

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.

A significant bearish rejection and valid sell entry should be expected around this price 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:

A counter-trend sell position can be offered around 1.4100 (Fibonacci Expansion 100%) for risky traders if enough bearish rejection is expressed at retesting.

On the other hand, conservative traders should wait for the USD/CAD pair to retrace towards the zone of 1.3380-1.3400 looking for 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 GBP/USD for December 23, 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 was providing the GBP/USD pair with a significant resistance.

The 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 a long-term perspective.

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 the previous weekly closure below 1.4950 clears the way towards 1.4800 (a long-term bearish target).

On the other hand, a bullish closure again above 1.4950 brings another bullish pullback towards 1.5350.

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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 20th.

Bearish persistence below 1.5200 and then below 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 3rd.

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

Last week, a significant bearish rejection was expressed around 1.5230. Many bearish engulfing daily candlesticks had been already expressed. The level of 1.4950 is the key level to be watched for new sell entries if bullish pullback occurs.

As suggested in the previous article, the price zone of 1.4800-1.4830 (the lower limit of the depicted channel) can offer a valid buy entry with a bullish target at 1.4950.

Trading Recommendation:

Risky traders can sell the GBP/USD pair at retesting of the broken demand level at 1.4950. S/L should be set as a daily closure above 1.4960.

Initial bearish target would be located at 1.4850 where the lower limit of the depicted channel is located.

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Intraday technical levels and trading recommendations for EUR/USD for December 23, 2015

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Previously, 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, a 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 24th, 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 pressure. 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 was performed on October 23rd. 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 constitutes a significant supply level to offer a valid sell entry. The Head and Shoulders reversal pattern is being established around the depicted supply level.

S/L should be located above 1.1050. Initial T/P levels should be located at 1.0900 and 1.0810.

An obvious bearish closure below 1.0820 (the neckline of the depicted reversal pattern) is needed to allow a further bearish decline towards 1.0730 and 1.0550 again.

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Technical analysis of EUR/JPY for December 23, 2015

Technical outlook and chart setups:

The EUR/JPY pair is seen to be trading around 132.00 levels for now after having bounced back from 131.00 levels earlier. Besides, note that 131.00 levels is also fibonacci 0.618 support, for rally between 129.50 and 134.50 levels respectively. The pair could be looking to print higher highs after 131.00 lows have formed. It is hence recommended to initiate fresh long positions now, with risk at 129.00 levels. The rally is expected to extend through 137.00 levels and higher in the coming weeks. Immediate support is seen at 131.00 levels (interim), followed by 129.50 and lower, while resistance is seen at 133.75 and higher respectively.

Trading recommendations:

Initiate long positions now, stop at 129.00, a target is open.

Good luck!

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Technical analysis of GBP/CHF for December 23, 2015

Technical outlook and chart setups:

The GBP/CHF pair had dropped lower towards 1.4600 levels yesterday taking out stops out at 1.4700. The pair has bounced back sharply just ahead of 1.4520 support levels, and has rallied all the way towards 1.4750 levels at the moment. The daily chart is producing an engulfing bullish candlestick pattern and the pair should be looking to rally through at least 1.4900 levels, which is trend line resistance. It is recommended to remain flat for now and wait for further evidence before committing on the long side. Immediate support is seen at 1.4520 levels while resistance is seen at 1.4900 levels respectively.

Trading recommendations:

Remain flat for now.

Good luck!

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Technical analysis of Silver for December 23, 2015

Technical outlook and chart setups:

Silver is seen to be trading around $14.29/30 levels at the moment, looking to drop lower towards $13.90 levels before reversing. The metal has rallied from $13.65 levels through $14.39 levels and taken out interim resistance at $14.30 levels already. A dip towards $13.90 levels, which is also fibonacci 0.618 support, is expected before the trend reverses. Immediate support is seen at $14.05 levels, followed by $13.90, while resistance is seen at $14.39 levels and higher respectively. Buying on dips through $13.90 levels looks highly probable.

Trading recommendations:

Initiate long positions at $1,060.00 levels, stop at $1,043.00, a target is open.

Good luck!

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Technical analysis of AUD/CHF for December 23, 2015

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Technical analysis of GBP/CHF for December 23, 2015

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Technical analysis of Gold for December 23, 2015

Technical outlook and chart setups:

Gold id trading around $1,074.00 levels for now, looking to drop lower and form bottom at $1,060.00 levels before reversing. The metal is expected to drop in a corrective manner (3 waves) and the bottom should be bought. Also note that $1,060.00 levels is the fibonacci 0.618 support of rally between $1,048.00 and $1,081.00 levels respectively. It is hence recommended to initiate fresh long positions around $1,060.00 levels, with risk at $1,043.00. Immediate support is seen at $1,067.00 levels, followed by $1,064.00 and lower while resistance is seen at $1,080.00 levels respectively.

Trading recommendations:

Initiate long positions at $1,060.00 stop at $1,043.00, target is open.

Good luck!

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Technical analysis of USD/CAD for December 23, 2015

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Overview:

  • The USD/CAD pair will continue its rise upright from the price of 1.3842 in the long term. It should be noted that the support is setting at the price of 1.3842, which represents the 78.6% of Fibonacci retracement levels on the H4 chart. Moreover, the same price is probably going to form a double bottom at the same time frame. Accordingly, the USD/CAD pair is showing signs of strength following the break of the highest level of 1.3908. So, it will be a good sign to buy above the level of 1.3908 with the first target of 1.4001 in order to test the double top and further to 1.4063. Also, it might be noted that the level of 1.4063 is a good place to take profit because it will form a new double top this week. On the other hand, in case reversal takes place and the USD/CAD pair breaks through the support level of 1.3842 , the market will lead to further decline to 1.3725 to indicate a bearish market.

Intraday technical levels:

  • R3: 1.3999
  • R2: 1.3982
  • R1: 1.3950
  • PP: 1.3933
  • S1: 1.3901
  • S2: 1.3884
  • S3: 1.3852
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Technical analysis of AUD/USD for December 23, 2015

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Overview:

The AUD/USD pair has dropped from the level of 0.7243 and has extended further to as high as 0.7215 (50% of Fibonacci retracement levels) today. The pair closed at 0.7215 yesterday and the currently price sets at 0.7220. The price was placed below 61.8% of Fibonacci retracement levels this week. Moreover, it should be noted that the price has formed strong resistances at 0.7243 and 0.7283. Furthermore, this strong level is still moving between 61.8% of Fibonacci retracement levels and 50% on the H1 chart. Hence, the market will probably start showing the signs of bearish market again in order to indicate a bearish opportunity below the level of 0.7215 with targets towards the strong support around the spot of 0.7187. Meanwhile, bears were forced to pull back at the level of this area; therefore, this level will form a strong support at 0.7180 in order to indicate a bullish opportunity above this support, so it will be a good sign to buy above the price of 0.7180 with a target at 0.7243 and it might resume to 0.7290 in the long term.

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EUR/NZD : analysis for December 23, 2015

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Overview:

Recently, EUR/NZD has been moving sideways around the price of 1.6050. In the daily time frame, I found a weak supply bar. In the H4 time frame, I found a strong head-and-shoulders confirmed formation (a broken neckline). The price again broke the 200 SMA. Be careful when buying EUR/NZD at this stage since lower prices are expected. I have placed Fibonacci expansion to find potential support levels. I got Fibonacci expansion 61.8% at the level of 1.6070 (broken), Fibonacci expansion 100% is at the level of 1.5840, and Fibonacci expansion 161.8% is seen at the level of 1.5470.

Fibonacci Pivot Points:

Resistance levels:

R1: 1.6130

R2: 1.6170

R3: 1.6235

Support levels:

S1: 1.6000

S2: 1.5960

S3: 1.5895

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

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Gold : analysis for December 23 , 2015

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Overview:

Since our last analysis, gold has been trading downwards. The price tested the level of $1,069.50. In the daily time frame, I found a weak supply bar, which is a sign that selling looks risky. The short term trend is upward. In the 30M-time frame, we can observe testing of our channel, which made good buy point around the price of $1,072.00. I have placed Fibonacci retracement and Fibonacci retracement 61% is at the price of $1,070.00.The first resistance is seen at the level of $1,088.70. Key price action resistance is around the price of $1,100.00.

Daily Fibonacci pivot points:

Resistance levels

R1: 1,077.00

R2: 1,078.65

R3: 1,081.20

Support levels:

S1: 1,072.00

S2: 1,070.50

S3: 1,068.00

Trading recommendations: Watch for potential buying opportunites, selling looks risky.

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Global macro overview for 23/12/2015

Global macro overview for 23/12/2015:

Brexit (common term for possible United Kingdom European Union exit next year) will be the biggest problem for the UK economy and social sentiment next year. According to the pool made by Bloomberg News 43% of economists agreed with the statement, that Brexit will be the biggest threat and 13% choose the buildup to the referendum on membership of the bloc. The remaining 39% were more timid, but agreed that Brexit might be the second-biggest risk. A potential exit would have tremendous consequences for British pound and gilts, together with greater investor outflow from UK. Prime Minister David Cameron did not yet set the referendum date, but the vote could come as soon as mid-2016 and by the end of 2017 at the latest.

The GBP/USD pair is trading slowly in the middle of the trading range below the important technical resistance at the level of 1.4895. The next support is seen at the level of 1.4806.

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Global macro overview for 23/12/2015

Global macro overview for 23/12/2015:

The US news released yesterday were a mixed bag of data. The US GDP has posted a solid gain which was better than expected (2.0% vs. 1.9% expected). Existing Houses Sales disappointed (4.76M vs. 5.32M expected), while the Richmond Manufacturing Index beat expectations (6 points vs. -1 points expected). So far the overall economic situation in the US does not look bad as almost all the economic indicators report a slow, but steady improvement.

The prices of gold, after taking a hit in the aftermath of the Federal Reserves rate hike when it briefly dropped below the $1050 level ( lowest level since February 2010), rallied more than 2% and for now are trading steadily in the congestion zone between the levels of 1046 and 1088.

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Technical analysis of EUR/JPY for December 23, 2015

General overview for 23/12/2015 09:40 CET

The recent upswing looks quite corrective and the whole structure is evolving into a more complex WXYXXZ pattern. This means that one more low will be made below the level of 131.04. Please notice that the invalidation line or the whole structure is seen at the level of 129.65.

Support/Resistance:

134.82 - WR2

134.57 - Swing High

133.11 - WR1

132.76- Intraday Resistance

132.06 - Weekly Pivot

131.04 - Intraday Support

130.68 - WS1

129.65 - Invalidation Level

Trading recommendations:

Day traders should consider placing sell orders from the current market levels with SL above the level of 132.76 and TP at the level of 131.20.

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Technical analysis of USD/CAD for December 23, 2015

General overview for 23/12/2015 09:30 CET

The slow and quiet trading before Christmas continues as the market is still inside the daily range. Further development in the corrective wave 4 black is anticipated with a potential target at the level of 1.3677.

Support/Resistance:

1.4100 - WR1

1.4000 - Intraday Resistance

1.3888 - Weekly Pivot

1.3847 - Intraday Support

1.3776 - WS1

Trading recommendations:

Day traders should consider placing sell orders from the current market levels with SL above the level of 1.4000 and TP at the level of 1.3847.

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Elliott wave analysis of EUR/NZD for December 23 - 2015

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Wave summary:

There is no change in view. We still think that wave ii ended at 1.5930 and wave iii higher is in its infinity. That said, we still need a break above minor resistance at 1.6164 and more importantly a break above resistance at 1.6246 confirming the bottom for a rally much higher.

In the short term, it will take an unexpected break below the 1.5930 low to delay the expected impulsive rally higher, but only a break below the wave 2 low at 1.5784 to invalidate the bullish outlook.

Trading recommendation:

We will only buy a break above 1.6167 with our stop placed at 1.5935.

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Elliott wave analysis of EUR/JPY for December 23 - 2015

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Wave summary:

We have most likely seen wave [i] of c end at 132.78 and is currently in the later part of wave [ii], which is expected to terminate near 132.10 for the next impulsive rally closer to 134.91 in wave [iii] before the next consolidation is expected in wave [iv].

As we are looking for a second wave correction, we will have to remember that they often become very deep and correct most of the first wave, so even if we see a break below 132.10 that doesn't alter our expectation of a continuation higher towards 135.34

Trading recommendation:

We are long EUR from 131.95 and will lift our stop to break-even.

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Technical analysis of USD/JPY for December 23, 2015

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USD/JPY is expected to trade in a lower range. The first downside target at 120.60 is in sight. Currently, the pair is being supported by the rising 20-period moving average, which has crossed above the 50-period one, while the relative strength index stands firmly above the neutrality level of 50. With such a bearish intraday outlook, once breaking below 121.50, the pair is expected to rise further to 120.60 (a price base seen on December 14 and 15).

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 120.60. A break of that target will move the pair further downwards to 120.15. The pivot point stands at 121.50. 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 121.75 and the second target at 122.15.

Resistance levels: 121.75 122.15 122.55

Support levels: 120.60 120.15 119.65

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Technical analysis of USD/CHF for December 23, 2015

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USD/CHF is expected to trade in a lower range. After the recent downside breakout of 0.9915, the USD/CHF pair remains under pressure and seems likely to post a further decline. The previous key support is now playing a resistance role, and should limit any upside room. Furthermore, the relative strength index is still below its neutrality area at 50. In conclusion, as long as the resistance at 0.9915 is not surpassed, the risk of the break below 0.9855 remains high.

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 0.9855. A break of that target will move the pair further downwards to 0.9830. 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 0.9940 and the second target at 0.9970.

Resistance levels: 0.9940 0.9970 0.9990

Support levels: 0.9855 0.9830 0.9795

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Technical analysis of NZD/USD for December 23, 2015

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NZD/CAD pair is pulling back but is standing above its key support at 0.6765. Meanwhile the relative strength index lacks strong downward momentum. Further upside is therefore expected with the next horizontal resistance and overlap set at 0.6865 at first. A break above this level would call for further advance toward 0.69.

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, it is recommended to open long positions with the first target at 0.6865 and the second target at 0.69. In the alternative scenario, it is recommended to open short positions with the first target at 0.6740, 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 0.6710. The pivot point is at 0.6765.

Resistance levels: 0.6865, 0.69, 0.6950

Support levels: 0.6740, 0.6710, 0.6660

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Technical analysis of GBP/JPY for December 23 , 2015

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GBP/JPY is expected to trade in a lower range. A strong resistance area around 180.10 maintains the selling pressure. Besides, the process of lower highs and lows remains intact. At the current stage, the pair is more likely to test its nearest support at 179. The risk is a slide below this level, which would trigger a bearish acceleration toward 178.50.

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 179.00. A break of that target will move the pair further downwards to 178.50. The pivot point stands at 180.10. 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 180.60 and the second target at 181.20.

Resistance levels: 180.60 181.20 182.10

Support levels: 179 178.50 178

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Daily analysis of major pairs for December 23, 2015

EUR/USD: The EUR/USD pair rose by 120 pips this week, while the outlook for the market remains bright. The price is now above the support line of 1.0900, going towards the resistance lines of 1.1000 and 1.1050. These are targets for the bulls, which might be attained, in case the bullish journey continues.

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USD/CHF: By all indication, at present, the best thing to do is to go short. The CHF is currently strong whereas the EUR is influenced by energy. In addition, the EMA 11 is below the EMA 56, as the Williams' Percentage Range is in the oversold region. Thus, the price can go below the support level of 0.9850, as the market weakenes further.

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GBP/USD: This market moved downwards on Tuesday, following a short-term consolidation of the price in the context of a downtrend. On the chart, the Bearish Confirmation Pattern is very strong, and it is more likely that the price could move further downwards from here. Most other pairs, including the GBP, are also weak. For example, GBP/CHF and GBP/NZD.

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USD/JPY: After the bearish signal we got last week, the USD/JPY pair is still showing a possibility of going further downwards. The demand level of 120.50 is the next possible target for the bears, which might be reached today or tomorrow. On the other hand, the supply level of 122.00 might check any possible rallies along the way.

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EUR/JPY: This currency trading instrument moved slightly upwards on Tuesday. The price is currently trying to bounce upwards while the outlook remains bearish (but the bearish trend is threatened). The bearish outlook will not be rendered useless as long as the price does not go above the supply zone of 133.50.

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Technical analysis of EUR/USD for December 23, 2015

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When the European market opens, economic news on the Italian Retail Sales m/m and French Consumer Spending m/m will be released.The US will also unveil data on the Crude Oil Inventories, Revised UoM Inflation Expectations, Revised UoM Consumer Sentiment, New Home Sales, Personal Income m/m, Personal Spending m/m, Durable Goods Orders m/m, Core PCE Price Index m/m, and Core Durable Goods Orders m/m. So amid the reports, EUR/USD will move low to medium volatility during this day.

TODAY TECHNICAL LEVELS:

Breakout BUY Level: 1.1004.

Strong Resistance:1.0998.

Original Resistance: 1.0987.

Inner Sell Area: 1.0976.

Target Inner Area: 1.0951.

Inner Buy Area: 1.0926.

Original Support: 1.0915.

Strong Support: 1.0904.

Breakout SELL Level: 1.0898.

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 23, 2015

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In Asia, Japan will not release any economic data, but the US will publish news on the Crude Oil Inventories, Revised UoM Inflation Expectations, Revised UoM Consumer Sentiment, New Home Sales, Personal Income m/m, Personal Spending m/m, Durable Goods Orders m/m, Core PCE Price Index m/m, and Core Durable Goods Orders m/m. So, there is a strong probability that the USD/JPY pair will move with low volatility during the Asian session and with low to medium volatility during the US session.

TODAY TECHNICAL LEVELS:

Resistance. 3: 121.63.

Resistance. 2: 121.39.

Resistance. 1: 121.16.

Support. 1: 120.87.

Support. 2: 120.63.

Support. 3: 120.39.

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

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Daily analysis of USDX for December 23, 2015

The USDX had a bearish trend during Tuesday's session, after a decline below the 200 SMA on the H1 chart. Currently, the support zone is placed around the 98.14 level, where a rebound can happen towards the resistance level of 98.66. However, we should prefer to stay sideways, as the Index is trapped inside a very volatile territory. The MACD indicator remains positive.

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H1 chart's resistance levels: 98.66 / 99.19

H1 chart's support levels: 98.14 / 97.16

Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the USD Index breaks with a bullish candlestick; the resistance level is at 98.66, take profit is at 99.19, and stop loss is at 98.14.

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Daily analysis of GBP/USD for December 23, 2015

On the H1 chart, we should note a decline towards the support level of 1.4802, after bears were controling the situation during Tuesday's session. By the way, we can expect a rebound until the resistance level of 1.4852 is a part of the corrective moves. It also should be noted that the 200 SMA on this timeframe is slightly bearish.

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H1 chart's resistance levels: 1.4852 / 1.4918

H1 chart's support levels: 1.4802 / 1.4731

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 at 1.4802, take profit is at 1.4731, and stop loss is at 1.4873.

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NZD/USD intraday technical levels and trading recommendations for December 22, 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.

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.

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

On the other hand, an estimated projection target for this flag pattern will remain 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 the NZD/USD conservative traders, a valid buy entry was suggested around 0.6600 (corresponding to the depicted uptrend and the upper limit of the broken consolidation range).

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

However, previous bearish fixation below 0.6750 opened the way towards 1.6700 where the depicted uptrend line came to meet the NZD/USD pair.

A valid buy entry was suggested around the level of 0.6700 (the depicted uptrend line as well as a recent support level). It's already running in profits now.

S/L should be updated to 0.6770 to secure some of the achieved profits. T/P levels are projected towards 0.6840 and 0.6900.

On the other hand, a valid sell entry can be offered around 0.6840 if enough bearish rejection is expressed.

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USD/CAD intraday technical levels and trading recommendations for December 22, 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 should be expected around this price 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 looking for 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 GBP/USD for December 22, 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 the previous weekly closure below 1.4950 clears the way towards 1.4800 (long-term bearish target).

On the other hand, a bullish closure again above 1.4950 brings another bullish pullback towards 1.5350.

gbpusddaily.png

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.

Last week, a significant bearish rejection was expressed around 1.5230. Many bearish engulfing daily candlesticks were already expressed. The level of 1.4950 is the key level to be watched for new sell entries if bullish pullback occurs.

Price zone of 1.4800-1.4830 (the lower limit of the depicted channel) should be watched for valid buy entries.

Trading Recommendation:

Risky traders can sell the GBP/USD pair at retesting of the broken demand level at 1.4950. S/L should be set as a daily closure above 1.4960.

Initial bearish target would be located at 1.4850 where the lower limit of the depicted channel is located.

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

Intraday technical levels and trading recommendations for EUR/USD for December 22, 2015

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Previously, 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 pressure. 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 constitutes a significant supply level to offer a valid sell entry. A Head and Shoulders reversal pattern is being established around the depicted supply level. S/L should be located at 1.1075. Initial T/P levels should be located at 1.0900 and 1.0810.

An obvious bearish closure below 1.0820 (the depicted key level) is needed to allow more bearish decline towards 1.0730 and 1.0550 again.

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Technical analysis of GBP/JPY for December 22 , 2015

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GBP/JPY is capped by a negative trend line. The pair remains under pressure below its negative trend line. Both the 20-period and 50-period simple moving averages are clearly turning down. Furthermore, the relative strength index lacks upward momentum. At the current stage, the prices seem more likely to test the nearest support at 179.25 (the previous low). The risk is a slide below this threshold, which would trigger a bearish acceleration toward 178.50.

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 179.25. A break of that target will move the pair further downwards to 178.50. The pivot point stands at 180.60. 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 181.20 and the second target at 182.10.

Resistance levels: 181.20 182.10 183

Support levels: 179.25 178.50 178

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