USD/CAD intraday technical levels and trading recommendations for December 29, 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 was 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 a 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.

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.

The 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 29, 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.

The 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 EUR/USD pair looked overbought as the market spiked 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 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 current bullish pullback was initiated.

This week, the level of 1.1000 constitutes the significant supply level to offer a valid sell entry. A Head and Shoulders reversal pattern is 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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Intraday technical levels and trading recommendations for GBP/USD for December 29, 2015

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Few months ago, the market was pushed above the weekly key zone around 1.5550 in an attempt to reach the area of 1.5900, which 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 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 pattern and the bearish engulfing weekly candlesticks of 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 a weekly closure below 1.4950 opens the way towards 1.4800 and 1.4650 (long-term bearish targets).

On the other hand, a bullish closure above 1.4950 brings another bullish pullback towards 1.5350 especially after the previous weekly bullish rejection that was expressed at 1.4800 (the lower limit of the current bearish channel).

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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.

Two weeks ago, a significant bearish rejection was expressed around 1.5230. Many bearish engulfing daily candlesticks had been already expressed.

The price level of 1.4950 was broken-down last week, thus constituting a significant supply level. As anticipated, this price level offered a valid sell entry earlier this week. It's already running in profits now.

Daily persistence below 1.4800 opens the way towards 1.4700 and 1.4650 where a historical bottom was previously located.

Trading Recommendation:

Risky traders could sell the GBP/USD pair on retesting of the broken demand level at 1.4950. S/L should be lowered to 1.4850 to secure some of the profits.

Initial bearish targets should be located at 1.4850 and 1.4800 where the lower limit of the depicted channel is located.

Next T/P levels are located at 1.4700 and 1.4650 as long as the GBP/USD pair keep trading below 1.4800.

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Technical analysis of USD/CAD for December 29, 2015

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Overview:

  • The The double top for the USD/CAD pair will set at the level of 1.4001 and the double bottom is seen at the level of 1.3821. It should be noted that the last range was around 75 pips only. But we expect a range of 263 pips this week.
  • The major support level is seen at 1.3821. And the resistance was already faced at 1.4001.
  • So, according to the previous events, the price of the USD/CAD pair is going to move between 1.4001 and 1.3821.
  • The level of 1.3900 is representing the weekly pivot point. Therefore, it will be very useful to buy above the price of 1.3900 in the short term with the first target at 1.3946. Moreover, if the trend is able to break the first resistance at 1.3946, then it might resume to 1.4000.

Trading recommendations:

  • According to previous events, the price of EUR/USD pair has still been moving between 1.3903 and 1.4000.
  • Above the level of 1.3903, look for further moving upside with targets 1.3946 and 1.4000.
  • The stop loss should be set at the level of 1.3806.
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Technical analysis of AUD/USD for December 29, 2015

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Overview:

  • The AUD/USD pair broke major resistance at the level of 0.7215 last week. But the level of 0.7215 became strong support for last week of December 2015. Also, it should be noted that the weekly pivot point is seen at 1.2933. Therefore, the pair will probably start an downside movement in this area and recover again. So, the market will indicate a bearish opportunity at the level of 0.7283 serving as a good sign to sell at this spot with the first target at 0.7283, and continue towards 0.7243 and 0.7215 in order to test the double bottom. On the other hand, if a breakout of 0.7283 happens, then it will be a good location for placing the stop loss order.

Observation

  • An uptrend is observed in the market. Moreover, the trend was so clear because the price moved higher to 0.7283; but the AUD/USD pair has been rebounding lower towards the level of 0.7266.
  • The double bottom is set at the level of 0.7215.
  • We expect a trading range between 0.7215 and 0.7283 pips today. The level of 0.7215 is the key level to confirm the bullish market.
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Technical analysis of NZD/USD for December 29, 2015

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Trading recommendations:

  • The market will turn to bearish sentiment from the level of 0.6949 (50% of Fibonacci Expansion). Moreover, the weekly pivot point for the NZD/USD pair is seen at the level of 0.6865 in the short term. Therefore, it will be good to sell below 0. 0.6949 with the first target at 0.7825. It will call for a downtrend in order to continue its bearish movement towards 0.6762 to form a double bottom in the daily chart. Notwithstanding, stop loss should never exceed your maximum exposure amounts, consequently stop loss should be placed above the weekly resistance at the level of 0.6975.

Observations:

  • According to the previous events, the NZD/USD pair is going to move between 0.6949 and 0.6762 today.
  • It should be noted that the level of 0.6762 represents the double bottom and the weekly pivot point is placed at 0.6865.
  • The resistance is seen at the level of 0.6949 this week.
  • The support was found at 0.6762.
  • We expect a new range about 235 pips this week.
  • The key level is seen at 0.6949.
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Technical analysis of CHF/JPY for December 29, 2015

A longer-term trend in the CHF/JPY pair is clearly downward, although after reaching a lower low on November 30, the price skyrocketed. Such move could suggest that bears fixed their profit and now bulls are gradually taking over the market.

After the sharp rise, the price retraced back to test 38.2% Fibonacci retracement level, which was successfully rejected after several attempts to break below.

As the support S1 is holding, consider buying CHF/JPY at the current level targeting potential double top near R1 (124.00) area. Stop loss should be well below the most recent low hit on December 28.

Support: 122.00

Resistance: 124.00

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Global macro overview for 29/12/2015

Global macro overview for 29/12/2015:

The latest ECB predictions showed that the eurozone's economy might grow 1.7% in 2016 after expanding 1.5% this year. The reason for that is an ongoing QE program that supports the region's economies. Nevertheless, inflation has been below 1% for more than two years, whereas the ECB targets consumer prices of below but close to 2%. In the recent Financial Times pool, most economists do not expect the asset-purchase program to top 1.46 trillion euros in 2016. The ECB is likely to be under pressure to provide more support if the economic recovery remains sluggish and the inflation rate slows down. As Mario Draghi said at the last ECB meeting, that additional monetary stimulus is still on the table.

The EUR/USD pair is trading slowly in the tight trading range. The next support is seen at the level of 1.0869 and next resistance is seen at the level of 1.1011.

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Technical analysis of EUR/JPY for December 29, 2015

General overview for 29/12/2015 12:40 CET

The wave b purple looks completed and now further downside development might occur. A breakout below the weekly pivot at the level of 131.96 will be the first confirmation that wave c in progress. Any breakout above the level of 133.76 will invalidate the idea of a complex corrective cycle, so this level is worth keeping an eye on.

Support/Resistance:

129.87 - WS3

130.68 - WS2

131.02 - Technical Support

131.14 - WS1

131.48 - Intraday Support

131.96 - Weekly Pivot

132.44 - WR1

132.77 - Intraday Resistance

133.26 - WR2

133.74 - WR3

Trading recommendations:

Day traders should consider placing sell orders from current market levels with SL above the level of 132.77 and TP at the level of 131.48 and below.

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Technical analysis of USD/CAD for December 29, 2015

General overview for 29/12/2015 12:20 CET

There is still a possibility that a correction in wave 4 is not completed, but current wave progression indicates a possible move higher in impulsive fashion. The projected minimum target is seen at the level of 1.4000, but an impulsive cycle might get much higher than this level.

Support/Resistance:

1.4041 - WR2

1.4000 - Intraday Resistance

1.3927 - WR1

1.3870 - Weekly Pivot

1.3815 - Intraday Support

1.3748 - WS1

1.3693 - WS2

Trading recommendations:

Yesterday traders were closed on profit.

For today, day traders should continue buying on dips in this market with SL below the level of 1.3870 and TP at the level of 1.4000.

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EUR/NZD analysis for December 29, 2015

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Overview:

Recently, EUR/NZD has been moving downwards. As I expected, the price tested the level of 1.5947 in a average volume. In the daily time frame, I found a weak supply bar and a strong head-and-shoulders confirmed formation (a broken neckline). According to the H1 time frame, the pair is trading below 50, 100, 200 SMA. I found 2 climatic actions in a background and a strong up-thrust bar in a ultra-high volume (sign of weakness). Be careful when buying EUR/NZD at this stage since lower prices are expected. I placed Fibonacci expansion to find potential support levels. I got Fibonacci expansion 61.8% at the level of 1.6070 (broken), Fibonacci expansion 100% at the level of 1.5840, and Fibonacci expansion 161.8% seen at the level of 1.5470.

Fibonacci Pivot Points:

Resistance levels:

R1: 1.6070

R2: 1.6095

R3: 1.5985

Support levels:

S1: 1.5990

S2: 1.5970

S3: 1.5930

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

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Gold analysis for December 29 , 2015

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Overview:

Since our last analysis, gold has been trading upwards. The price tested the level of $1,074.36 in an average volume. In the daily time frame, I found a weakly supply bar, which is a sign that selling looks risky. An intraday trend is upward. In the 30M time frame I found another successful re-testing of our channel and a breakout of a bullish flag, which made a good buy point at the level of $1,072.00. I found a potential double bottom formation and a breakout of $1,076.50 is likely to confirm it.The first resistance is seen at the level of $1,076.50 and second is at $1,088.70. The key price action resistance is seen around the level of $1,100.00. The price is above the 200 SMA.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,090.50

R2: 1,096.60

R3: 1,105.90

Support levels:

S1: 1,071.40

S2: 1,065.50

S3: 1,056.00

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

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Technical analysis of USD/JPY for December 29, 2015

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USD/JPY is still under pressure. Overnight the US stock indexes continued to move lower as oil prices resumed sell-off led to losses in energy shares. The Dow Jones Industrial Average edged down 0.1% to 17528, the S&P 500 fell 0.2% to 2056, while the Nasdaq Composite was down 0.2% to 5040. Nymex crude oil lost 3.4% landing at $36.81 a barrel.

Meanwhile, gold declined 0.7% to $1,068 an ounce, and the benchmark 10-year Treasury yield fell further to 2.227% from 2.241% in the previous session.

The U.S. dollar remained mixed against most major currencies. EUR/USD stayed broadly flat at 1.0965, while GBP/USD fell 0.4% to 1.4876 and USD/CAD was up 0.6% to 1.3904. The pair continues to stay on the downside while being capped by the 50-period (30-minute chart) moving average. The 20-period moving average has crossed below the 50-period one, and the intraday relative strength index stands below the neutrality level of 50. The intraday outlook remains bearish, and the pair is expected to return to the first downside target at 120.00 (the low of December 25). The second downside target is set at 119.80 (last seen on October 22). Only a break above the key resistance at 120.75 (a price base seen in December 22-23) would turn the intraday outlook bullish.

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 120.00. A break of that target will move the pair further downwards to 119.75. The pivot point stands at 120.75. 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 and the second target at 121.30.

Resistance levels: 121.00, 121.30, 121.75

Support levels: 120.00, 119.75, 119.35

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Technical analysis of USD/CHF for December 29, 2015

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USD/CHF is expected to trade in a lower range as key resistance is seen at 0.9890. The pair struck against the key resistance at 0.9890 yesterday but failed to close above that level. Currently, it is back below both the 20- and 50-period moving averages. At the same time, the relative strength index is below the neutrality level of 50 lacking upward momentum. Therefore, as long as 0.9830 holds as the key resistance, the pair should return to the first downside target at 0.980 (a major support seen in December 24-28).

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 0.9830. A break of that target will move the pair further downwards to 0.98. The pivot point stands at 0.9890. 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 0.9915 and the second target at 0.9940.

Resistance levels: 0.9915, 0.9940, 0.9970

Support levels: 0.9830, 0.98, 0.9755

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Technical analysis of NZD/USD for December 29, 2015

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The NZD/USD is expected to trade in a higher range as the bias remains bullish. The pair is well supported by its 50-period moving average and remains on the upside. The RSI is bullish calling for moving further upside. As long as 0.6805 holds as the key support, look for further upside with targets at 0.6890 and 0.6920.

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 0.6890 and the second target at 0.6920. In the alternative scenario, it is recommended to open short positions with the first target at 0.6805, 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 0.6780. The pivot point is at 0.6835.

Resistance levels: 0.6890, 0.6920, 0.6950

Support levels: 0.6805, 0.6780, 0.6755

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Technical analysis of GBP/JPY for December 29, 2015

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The GBP/JPY pair is expected to trade with a bearish bias. The pair is turning down away from its key resistance at 179.80 and is heading lower. Both descending 20-period and 50-period moving averages maintain a bearish bias. And the relative strength index lacks upward momentum. We remain negative below 179.80 with targets at 178.50 and 177.85.

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: 180.15, 180.60, 181.20

Support levels: 178.50, 177.85, 177

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Elliott wave analysis of EUR/NZD for December 29, 2015

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Wave summary:

It was very disappointing to see another failure to break above minor resistance at 1.6151. It does keep a weak downtrend in place for a possible new low closer to 1.5858, but the low at 1.5784 should hold firm for a new impulsive rally in wave iii towards 1.7064.

Only an unexpected breakout below 1.5784 will delay the expected rally higher for a move closer to support at 1.5651 before the next attempt to move higher.

Trading recommendation:

We will buy EUR upon a breakout above minor resistance at 1.6089 and place stop at 1.5925.

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Elliott wave analysis of EUR/JPY for December 29, 2015

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Wave summary:

There is no change in a view here. We continue to watch for a rally towards 135.97 as long as support at 131.46 is able to protect the downside. In the short term, a breakout above minor resistance at 132.80 will confirm a new rally to 134.59 and above towards 135.97.

Only an unexpected breakout below support at 131.00 will invalidate the bullish outlook indicating that wave (ii) ended early at 134.59 and wave (iii) lower to 126.05 and below is developing.

Trading recommendation:

We are long EUR from 132.17 with stop placed at 131.40. If you are not long EUR yet, then buy a breakout above 132.46 and use the same stop at 131.40, but be ready to move it higher soon.

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Technical analysis of USD/MXN for December 29, 2015

The USD/MXN pair has been moving within a very wide channel where an upper trend line was rejected on December 14. Following a sharp fall resulted in the ascending trend line breakout and signalling the weakness in the USD/MXN pair.

After the breakout, the price returned back to 61.8% Fibonacci retracement level applied to the 1st of December low and 14th of December high. So far all the fact supporting an idea of a downward correction continuation.

Consider selling USD/MXN, while the price is near R1 (17.25) targeting S1 (16.85), which is 61.8% Fibonacci retracement level applied to a high reached on December 14 and low hit on December 16. Stop loss should be set well above the most recent high reached on December 24.

Support: 16.85

Resistance: 17.25

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Technical analysis of EUR/USD for December 29, 2015

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When the European market opens, no economic news is due to be released, but the US will unveil economic data on the CB Consumer Confidence, S&P/CS Composite-20 HPI y/y, and Goods Trade Balance. So amid the reports, EUR/USD will move with low to medium volatility during this day.

TODAY TECHNICAL LEVELS:

Breakout BUY Level: 1.1032.

Strong Resistance:1.1026.

Original Resistance: 1.015.

Inner Sell Area: 1.1004.

Target Inner Area: 1.0980.

Inner Buy Area: 1.0954.

Original Support: 1.0943.

Strong Support: 1.0932.

Breakout SELL Level: 1.0926.

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 29, 2015

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In Asia, Japan will not release significant economic news, but the US is expected to publish economic data on the CB Consumer Confidence, S&P/CS Composite-20 HPI y/y, and Goods Trade Balance. So, there is a strong probability that the USD/JPY pair will move with low volatility during the Asian session, but with low to medium volatility during the US session.

TODAY TECHNICAL LEVELS:

Resistance. 3: 120.95.

Resistance. 2: 120.71.

Resistance. 1: 120.48.

Support. 1: 120.18.

Support. 2: 119.94.

Support. 3: 119.71.

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 USDX for December 29, 2015

On the H1 chart, the USDX remains finding support at the level of 97.86, which is a key zone for buyers on a short-term basis. However, if the index achieves in breaking that zone to the downside, then the bearish bias will strengthen eventually reaching the level of 97.00.

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H1 chart's resistance levels: 98.14 / 98.66

H1 chart's support levels: 97.86 / 97.66

Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the USDX breaks with a bearish candlestick; the support level is found at 97.86, take profit is at 97.66, and stop loss is at 98.05.

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Daily analysis of GBP/USD for December 29, 2015

The pair faced strong resistance at the level of 1.4918, which is very close to the 200 SMA in the H1 chart. This time frame is showing us a downside bias that can get another bearish momentum when the GBP/USD pair achieves in breaking the support level of 1.4802 and that will open the doors to 1.4702 in the short term. The MACD indicator remains at the negative territory.

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H1 chart's resistance levels: 1.4918 / 1.4999

H1 chart's support levels: 1.4802 / 1.4702

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 1.4802, take profit is at 1.4702, and stop loss is at 1.4908.

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Daily analysis of major pairs for December 29, 2015

EUR/USD: This pair was quiet on Monday, and there may not be a serious movement in the market this week owing to poor trading activity, but we could see surprising movements in some EUR pairs (like EURNZD, EURAUD and EURCAD). As for the EUR/USD pair, there is a likelihood that the resistance lines at 1.0950 and 1.0000 would be reached within the next several trading days.

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USD/CHF: This market merely moved sideways on Monday, with no significant journey to the upside or to the downside. There could be some movement in the market this week, but nothing extraordinary is expected. However, momentum is likely to return to the market during the first week of January 2016.

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GBP/USD: The GBP/USD pair moved slightly downwards on Monday proving that the rally we saw last week was merely an upward bounce in the context of a downtrend. Further bearish movements are expected this week and next week (as it is also forecasted for other GBP pairs); therefore accumulation territories around 1.4850 and 1.4800 would be tested.

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USD/JPY: The USD/JPY pair has moved down by 110 pips, now it is trading below the supply level of 120.50 and going towards the demand level at 120.00. There is a very strong Bearish Confirmation Pattern in the chart; plus the price is likely to go further south when momentum returns to the market.

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EUR/JPY: An upwards bounce we witnessed last week proved to be an opportunity to go short. The price came down after that, plus the demand zone at 131.50 is the next target, which might be breached to the downside soon.

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NZD/USD intraday technical levels and trading recommendations for December 28, 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 remains at 0.6950 only if the NZD/USD pair manages to keep trading above 0.6840.

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Two weeks ago, an obvious bullish breakout above 0.6600 was executed via a full-body bullish candlestick on 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).

Shortly after, another 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.

Last week, lack of enough bullish pressure above 0.6800 was manifested. That's why, a bearish pullback took place towards 0.6770 where the current bullish swing was initiated.

Bullish fixation above 0.6845 enhances the bullish side of the market. Long-term bullish targets are located at 0.6950 as long as the NZD/USD pair keep pushing above 0.6845.

On the other hand, a valid buy entry can be offered around 0.6750 where the depicted uptrend line comes to meet the NZD/USD pair.

S/L to be located below 0.6700. Initial T/P level remains located at 0.6840.

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

Daily analysis of EUR/JPY for December 28, 2015

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Overview

From the attached H4 chart, we can notice that the rebound from 129.66 is finished at 134.58 already. A deeper fall should be seen for 129.66 support first. Besides, EUR/JPY is staying in a falling channel that started at 141.04 and a deeper decline is in favor. A break of 129.66 will target a test on 126.09 low. Price actions from 149.76 medium-term top is viewed as corrective in nature. A strong rebound after failing to sustain below 38.2% retracement of 94.11 to 149.76 at 128.50 argues that it's developing in a sideway pattern. We'd expect more range trading between 126.09 and 149.76 in the medium term. And that should then be followed by an upside breakout at a later stage. Nonetheless, a decisive break of 126.09 would extend the correction towards 61.8% retracement at 115.36.

Daily Pivots: (S1) 131.69; (P) 131.85; (R1) 132.11;

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

Daily analysis of Silver for December 28, 2015

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Overview

Silver price shows more sideways trading near the 14.25 level, while stochastic shows a bearish bias on intraday time frames, which supports the chance to trade negatively in the upcoming sessions to keep the bearish bias preferred on the intraday and short-term basis. The price needs to break the 13.96 level to reinforce the expectations for targeting 13.50 then 13.00 levels mainly, reminding you that the stability of the daily close below 14.25 important for achieving the suggested targets.

The expected trading range for today is between 13.70 support and 14.50 resistance.

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

USD/CAD intraday technical levels and trading recommendations for December 28, 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 was 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 a 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.

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.

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

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

Daily analysis of GBP/JPY for December 28, 2015

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Overview

A temporary low is in place at 178.95 and an intraday bias is turned neutral for some consolidations. But an upside of the recovery should be limited well below 183.96 and bring fall reversal. A decline from 195.86 is still in progress and should target 174.86 key support level next. A break there will indicate larger trend reversal. 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 the 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'll be cautious about strong resistance from 199.80/200.00 to bring the reversal eventually.

Daily Pivots: (S1) 178.95; (P) 179.45; (R1) 179.95;

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