USD/CAD intraday technical levels and trading recommendations for January 5, 2016

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Overview:

A bullish breakout above the previous consolidation zone between 1.2400 and 1.2800 was performed on July 15 (shown on the weekly chart). 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 enable 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 7.

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

A bullish visit towards the next resistance level of 1.4100 (Fibonacci Expansion 100%) should be expected. Hence, a valid sell entry should be expected around this level.

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

Trading recommendations:

Risky traders can have a counter-trend sell position cans around 1.4100 (Fibonacci Expansion 100%) if enough bearish rejection is expressed when retesting takes place.

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 GBP/USD for January 5, 2016

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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 provided significant bearish 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 quick bearish decline towards the weekly demand level of 1.4950 was expected as a result of the bearish breakdown below 1.5200.

Weekly persistence below 1.4950 exposed the way towards 1.4800 while the price levels of 1.4650 and 1.4600 (the depicted demand levels) wait for a bearish visit as long as the market keeps trading below 1.4800 (the lower limit of the depicted bearish channel).

On the other hand, re-closure above 1.4950 allows another bullish pullback to occur towards 1.5350 taking into consideration, the previous bullish rejection which was expressed around 1.4800 on April 2015.

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During 2015, significant bearish rejection was expressed around 1.5770 and 1.5230 where a bearish Head and Shoulders reversal pattern was established. Since then, the market has been trending down within the depicted bearish channel.

The price level of 1.4950 was broken to the downside few weeks ago, constituting a significant supply level. As anticipated, it offered a valid sell entry on December 24.

Daily persistence below 1.4800 (the lower limit of the current bearish channel) was needed to allow further bearish decline towards 1.4680 and 1.4610 where previous prominent bottoms are located on the GBP/USD daily chart.

This week, the GBP/USD pair looks oversold as it is being pushed further below the lower limit of the depicted bearish channel. That's why, early signs of bullish reversal should be considered around the price zone of 1.4660-1.4610.

Trading Recommendation:

Risky traders can have a valid BUY entry anywhere around the price zone of 1.4660-1.4610 if enough bullish rejection is expressed on short-term charts (H4 and H1 charts).

S/L should be located below 1.4550 to limit our risk. Initial T/P levels should be located at 1.4800 and 1.4950.

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Intraday technical levels and trading recommendations for EUR/USD for January 5, 2016

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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 pressure, 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 (January).

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On August 24, 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 are located at 1.1150 and 1.1050 were already reached.

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

One month ago, daily persistence below the level of 1.0800 and 1.0700 (key levels) ensured enough bearish momentum towards 1.0550 (prominent monthly level) where the recent bullish pullback was initiated.

Last week, the level of 1.1000 was considered a significant supply level to offer a valid sell entry.

A Head and Shoulders reversal pattern was established around the mentioned supply level. S/L should be lowered to 1.0950 and Initial T/P levels should be located at 1.0820.

An obvious bearish closure below 1.0800 (the neckline of the depicted reversal pattern) allows a further bearish decline towards 1.0730 and 1.0550 again.

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Technical analysis of USD/JPY for January 05, 2016

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USD/JPY is expected to trade in a lower range as the key resistance is at 119.60. Overnight, US stock indices ended lower following a global stock-market sell-off. Earlier, China's markets were halted for the rest of the day after the 7% plunge triggered the circuit breaker. The Dow Jones Industrial Average lost another 1.6% to 17,148, the S&P 500 fell 1.5% to 2,012, while the Nasdaq Composite was down 2.1% to 4,903.

Nymex crude oil completed a volatile session with a loss of 0.8% to $36.76 a barrel, gold gained 1.3% to $1,074 an ounce, and the benchmark 10-year Treasury yield closed at 2.245%, down from 2.273% in the previous session.

While the Japanese yen strengthened across the broad (USD/JPY dropped 0.7% to 119.42), the US dollar stayed firm against most other major currencies, with EUR/USD dropping 0.3% to 1.0829, USD/CHF edging up 0.1% to 1.0016, USD/CAD rising 0.7% to 1.3951, AUD/USD plunging 1.2% to 0.7188 and NZD/USD losing 1.4% to 0.6749.The pair plunged to as low as 118.67 overnight before posting a rebound. Currently, it has peaked at levels below the key resistance at 119.60, and is trading below the 20-period (30-minute chart) moving average, which stands below the 50-period one. Meanwhile, the intraday relative strength index remains below the neutrality level of 50. As long as 119.70 holds as the key resistance, the pair should resume its downward path and return to the first downside target at 118.60.

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 118.60. A break of that target will move the pair further downwards to 118. The pivot point stands at 119.95. In case the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, long positions are recommended with the first target at 120.20 and the second target at 120.75.

Resistance levels: 120.20, 120.75, 121

Support levels: 118.60, 118, 117.65

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Technical analysis of USD/CHF for January 05, 2016

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USD/CHF is expected to trade in a higher range as bias remains bullish. The pair is clearly in an uptrend, and it is also supported by a ST bullish trend line. The relative strength index is mixed to bullish above its neutrality area at 50. The recent upside breakout of 1.0000 (a key psychological level and the high of December 31) should confirm a positive view, and call for a new rise to 1.0120 and 1.0085 in extension.

Trading recommendations:

The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. As long as the price holds above its pivot point, it is recommended to open long positions with the first target at 1.0120 and the second target at 1.0145. In the alternative scenario, it is recommended to open short positions with the first target at 0.9970, 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 0.9925. The pivot point is at 1.00.

Resistance levels: 1.0120, 1.0145, 1.0185

Support levels: 0.9970, 0.9925, 0.9875

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Technical analysis of NZD/USD for January 05, 2016

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NZD/USD is expected to trade in a lower range. The pair accelerated on the downside yesterday, and it is also capped by its falling 50-period moving average. Even though the relative strength index is posting some bullish divergence, it has not been confirmed by the prices yet. Hence, as long as 0.6790 is not surpassed, a new decline is more likely to occur to 0.6690 and 0.6660 in extension.

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 0.6690. A break of that target will move the pair further downwards to 0.6660. The pivot point stands at 0.6790. 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 0.6820 and the second target at 0.6840.

Resistance levels: 0.6690, 0.6660, 0.6620Support levels: 0.6820, 0.6840, 0.6890

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Technical analysis of GBP/JPY for January 05, 2016

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GBP/JPY is expected to trade in a lower range as the key resistance stands at 176.35. The pair stays below its key resistance at 176.35 and remains on the downside. Meanwhile, the relative strength index stays below 50. The first target to the downside is set at the horizontal support and overlap at 174.05. A break below this level would open the way to further weakness toward 173.25.

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 174.05. A break of that target will move the pair further downwards to 173.25. The pivot point stands at 176.35. 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 176.90 and the second target at 177.50.

Resistance levels: 176.90, 177.50, 178.20

Support levels: 174.05, 173.25, 172.65

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Technical analysis of WTI for January 05, 2016

Crude price downtrend has not yet shown any signals of a longer-term reversal and the current wave up should only be considered as a correction.

While moving down, WTI formed the support near the mark of 40 that later, on December 7, 2015, has been broken. The price has been moving within the descending channel, although it also has been broken to the downside providing additional confirmation of an ongoing downtrend. Currently, the price returned back the lower trend line of the broken descending channel that is acting as a resistance, which apparently was rejected.

Consider selling WTI on corrective waves up while the price is not too far from the 38.30 resistance area (R1). The 161.8% Fibonacci retracement (S2 - 31.70) applied to the latest corrective wave up could be used as the nearest target.

Support: 34.30, 31.70

Resistance: 38.30

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Technical analysis of USD/CHF for January 05, 2016

Since forming a double bottom in May 2015, USD/CHF has been steadily rising producing higher highs and higher lows. The price is clearly moving within the ascending channel without any signs of a reversal down.

After breaking major resistance area (S1) near 0.9840, the price returned back and tested it, but this time the support was rejected. Applying Fibonacci to the last corrective wave down that tested the ascending channel, you can see that while R1 resistance was broken, R2 has not been tested.

Consider buying USD/CHF on corrective waves down targeting 261.8% Fibonacci retracement level area (1.0440). Stop loss should be placed well below the most recent low of December 14 (0.9780).

Support: 0.9840

Resistance: 1.0070, 1.0440

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Gold analysis for January 05, 2016

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Overview:

Since our last analysis, gold has been trading sideways around the price of $1,077.00. In the daily time frame, I found testing of 50 SMA. Be careful when buying gold at this stage. The intraday trend is upward, but short- and mid-term trends are downward. In the H4 time frame, the price is above SMA 50 and 100, but moving averages are flat. According to the M30 time frame, I found a volume spike and very wide spread of the bar (buying looks very risky). I found symmetrical triangle (trend continuation pattern) and the price is trying to break to the upside, but in my opinion, we may see a potential fake breakout so be careful when buying. I expect testing of $1,050.00. I would like to see a breakout in a high volume at $1,046.00 confirming the trend continuation pattern. The first intraday support is at the price of $1,074.00. In the daily time frame, I found strong cluster resistance around the price of $1,080.00-$1,087.00.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,080.10

R2: 1,084.65

R3: 1,092.00

Support levels:

S1: 1,065.35

S2: 1,060.80

S3: 1,053.45

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

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Global macro overview for 05/01/2016

Global macro overview for 05/01/2016:

The German unemployment fell more than expected in December. Figures released by the Federal Labor Office on Tuesday revealed that the unemployment rate stayed at the same level of 6.3%, whereas seasonally adjusted unemployment last month fell by 14,000, way more than the expected 6,000 figure. The data is signaling the overall good health of the job market in Europe's largest economy.

The EUR/USD pair has broken the important support at the level of 1.0795 (now resistance) and is trading at the next support level of 1.0762.

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Global macro overview for 05/01/2016

Global macro overview for 05/01/2016:

The UK manufacturing sector data was revealed yesterday and it turned out that business activity weakened in December. The Markit/CIPS manufacturing PMI dropped to 51.9 last month compared with 52.5 in November and the output and new order growth slowed further in the reported month. The Confederation of British Industries warned that manufacturers continue struggling with the strength of the British pound and weak demand in the eurozone, the UK main trading partner. This is the three-month low and this kind of data indicated that the sector is unlikely to contribute to the economic growth again.

The GBP/USD pair is trading closer to the important weekly support at the level of 1.4565. The next resistance is seen at the level of 1.4805.

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EUR/NZD analysis for January 05, 2016

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Overview:

Recently, EUR/NZD has been moving downwards. As I expected, the price tested the level of 1.6011 in an average volume. In the daily time frame, I found a supply bar and confirmed formation of a strong head-and-shoulders pattern (a broken neckline). Besides, i found a very weak yesterday bar close (bar with close near middle of the range). In the H4 time frame, the price rejected strongly our 200 SMA (1.6180) and created a bearish outside bar from 200 SMA. I placed Fibonacci retracement to find a potential end of the upward correction and got Fibonacci retracement 38.2% at the price of 1.6080 (successfully held) and Fibonacci retracement 61.8% at the price of 1.6120. According to the daily time frame, I found testing of the 200 SMA. I expect further downward movement and retesting of 1.5850 and even a potential breakout to the downside.

Fibonacci Pivot Points:

Resistance levels:

R1: 1.6160

R2: 1.6235

R3: 1.6355

Support levels:

S1: 1.5915

S2: 1.5840

S3: 1.5720

Trading recommendations : Buying EUR/NZD looks very risky at this stage since the price rejected strongly our 200 SMA in the H4 and daily time frames. Watch for potential selling opportunities.

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Technical analysis of NZD/USD for January 05, 2016

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Overview:

  • The NZD/USD pair has been moving in a downtrend since last week. So, according to prior events, the price of the NZD/USD pair has still been moving between the ratio of 23.6% Fibonacci retracement levels at the level of 0.6728 and 00% Fibonacci retracement at the 0.6681 level. Furthermore, the price opened below the ratio of 23.6% Fibonacci retracement levels (0.6728). Besides, the resistance is set at the 0.6730 level today. Therefore, it will be a good sign to sell below the level of 0.6730 with the first target of 0.6680. The double bottom has already been set at the price of 0.6680. However, in case a reversal takes place and the NZD/USD pair breaks through the support level of 0.6680, the market will lead to a further decline to 0.6660 in order to indicate a correctional movement at this level. Meanwhile, the H1 chart represents a strong support at 0.6680 which forms the double bottom.

Trading recommendations:

  • According to previous events, the price of the NZD/USD pair has still been moving between 0.6730 and 0.6680.
  • Look for further downside with the 0.6680 and 0.6660 targets below the level of 0.6730.
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Technical analysis of USD/CHF for January 05, 2016

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Overview:

  • The USD/CHF pair has broken a major resistance at the level of 0.9992. The new resistance was calculated and found at the level of 1.0120 and the pair is now approaching it in order to test it. Besides, you have to notice that the 0.9992 price has become a strong support on January 5, 2016. So, the USD/CHF pair will be limited by the levels of 1.000 and 1.0120, so we expect this week a range of 120 pips approximately. Therefore, it will probably start an upward movement at this area and recover again. Thus, the market will indicate a bullish opportunity at the 1.0000 level, and it will be a good sign to buy at this spot with the first target at 1.0085. It will then continue moving towards 1.0105 for forming a double top. Moreover, we look for the weekly target near the strong resistance around the spot of 1.0120 (new project today). On the other hand, if a break of 0.9992 happens, then it will be a good location for placing a stop loss at the 0.9966 level.

Intraday technical levels:

Date: 05/01/2016

Pair: USD/CHF

  • R3: 1.0219
  • R2: 1.0141
  • R1: 1.0080
  • PP: 1.0002
  • S1: 0.9941
  • S2: 0.9863
  • S3: 0.9802
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USDX technical analysis for January 5, 2016

The US dollar index held above the support at 98 yesterday and made an upward reversal towards 99. This is a sign of the dollar's strength. However, we are again close to critical short-term resistance where the index got rejected twice. Will there be a third time?

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Blue line - trend-line support

The US dollar index has once again reached the 61.8% Fibonacci retracement of the decline from 100.50. This is an important short-term resistance.The blue trend line is also an important support, so a break below 98.20 will open the way for a move towards 97.

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The weekly candle in the US dollar index has transformed into a bullish one despite the heavy selling against the dollar early on Monday. A close above 99 for the week will imply that new highs are coming. Non-Farm Payrolls on Friday will play an important role in what the greenback will do next.The material has been provided by InstaForex Company - www.instaforex.com

Gold technical analysis for January 5, 2016

The gold price made a breakout above the short-term triangle pattern yesterday, but buyers were not strong enough to push the price towards $1,100. There is a high probability that gold is in a corrective phase since there is no clear upward impulsive moves seen. This implies that a new low towards $1,000 should come once this correction ends.

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Blue lines - triangle pattern

Red line - support

The gold price is trading above the Ichimoku cloud on the 4-hour chart and above the triangle pattern. We should expect the price to move higher towards $1,100 in the short term. Support is at $1,050. If it is broken, we should expect the level of $1,000 or lower one to be seen.

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Red lines - downward sloping wedge

Yellow line - long-term resistance

Blue lines - long-term Fibonacci ratios

The weekly chart remains unchanged. The price is mainly moving sideways trapped between $1,100 and $1,050. Stochastic is oversold. The price should move higher first and then resume the downtrend.

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Technical analysis of USD/CAD for January 5, 2016

General overview for 05/01/2016 07:30 CET

The corrective cycle in the wave 4 might be completed as the triangle pattern on this pair is clearly visible. Nevertheless, the current upward move is not a clear five-wave progression and the market is still trading inside the neutral zone. There is still one more wave up needed to complete the impulsive wave progression, but confirmation for this wave come with the violation of the round number of 1.4000. The last wave 5 will have a new high above this level.

Support/Resistance:

1.4058 - WR3

1.4000 - Round Number Resistance|WR2|

1.3923 - WR1

1.3872 - Weekly Pivot

1.3814 - Intraday Support

1.3807 - WS1

Trading recommendations:

The buy orders from yesterday should be still kept open. SL below the level of 1.3814 and TP open for now.

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Technical analysis of EUR/JPY for January 5, 2016

General overview for 05/01/2016 07:10 CET

The impulsive count was invalidated due to overlaps of wave 1 and wave 2. The alternative count is now in play. According to this count, the complex corrective cycle in wave B blue has not been completed yet. The wave (a) blue looks completed and the bullish divergence on the daily chart is the first clue to support this view (both on the RSI and AO indicators). The wave (b) blue should be in progress now with the projected target at the level of 131.04. After reaching this level, the market should reverse and complete the last wave to the downside - the wave (c) blue. Then, the whole corrective structure will be completed and the market should be ready to resume the uptrend in order to develop the wave C blue.

Support/Resistance:

127.98 - WS3

129.31 - WS2

129.80 - WS1

131.04 - Technical Resistance

131.14 - Weekly Pivot

131.62 - WR1

Trading recommendations:

Daytraders should consider buying on the dips in this market with SL below the level of 128.65 and TP open for now.

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Elliott wave analysis of EUR/NZD for January 5, 2016

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Wave summary:

The first attempt to break above short term important resistance at 1.6220 failed, but it should just be a matter of time before this resistance at 1.6220 will be broken and pave the way for a continuation higher towards 1.6935.

Longer term, we are only in the very beginning of a new impulsive rally that ultimately should break above resistance at 1.9114 for a rally to at least 2.1072 and possibly even higher to 2.2304, but first let's focus on a break above 1.6220 to confirm the bottom at 1.5794 and a new impulsive rally higher.

Trading recommendation:

We are long EUR from 1.5810 with stop placed at 1.5925. If you are not long EUR yet, then buy EUR near 1.6000 or upon a break above 1.6220 and place stop at 1.5925.

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Elliott wave analysis of EUR/JPY for January 5, 2016

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Wave summary:

Once an important short-term support at 131.00 gave away, there was no looking back and we have seen a nice impulsive decline to the long-term support line near 129.00. Sooner or later, we expect the support line to be broken clearly as downside acceleration towards 116.13 is anticipated in the longer term.

As for the short term, we should expect that support in the 128.03 - 128.25 area will protect the downside for a sideways consolidation before a clear break is finally seen, but once this support line is broken for real, prices should accelerate lower towards 123.16 and 116.13.

Trading recommendation:

We are short EUR from 130.95 with stop at 130.65. If you are not short EUR yet, then sell near 129.82 and use the same stop at 130.65.

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Technical analysis of EUR/USD for January 05, 2016

!_EURUSD.jpg When the European market opens, such economic news will be released as Italian Prelim CPI m/m, Core CPI Flash Estimate y/y, CPI Flash Estimate y/y, German Unemployment Change, Spanish Unemployment Change.The US will release the economic data too such as the Total Vehicle Sales, so amid the reports, EUR/USD will move low to medium volatility during this day.

TODAY TECHNICAL LEVELS:

Breakout BUY Level: 1.0883.

Strong Resistance:1.0877.

Original Resistance: 1.0866.

Inner Sell Area: 1.0855.

Target Inner Area: 1.0830.

Inner Buy Area: 1.0805.

Original Support: 1.0794.

Strong Support: 1.0783.

Breakout SELL Level: 1.0777.

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 January 05, 2016

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In Asia, Japan will release its data on 10-y Bond Auction and Monetary Base (y/y). The United States will report on Total Vehicle Sales. So there is a big probability that the USD/JPY pair will move with low to medium volatility today.

TECHNICAL LEVELS FOR TODAY:

Resistance. 3: 120.11.

Resistance. 2: 119.87.

Resistance. 1: 119.64.

Support. 1: 119.35.

Support. 2: 119.12.

Support. 3: 118.88.

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 adviser if you have any doubts.

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Daily analysis of major pairs for January 5, 2016

EUR/USD: Some form of weakness is perceived on this currency trading instrument. And since it tends to go into an opposite direction of the USD/CHF, the currency trading instrument would be weak as long as the USD/CHF is strong. More bearish movement of at least 100 pips is possible within the next few days.

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USD/CHF: It is good that the USD/CHF went upwards in a predictable manner yesterday. The new "buy" signal that was seen last week has now resulted in a Bullish Confirmation Pattern in the market. By all indication, price is supposed to continue moving further north, with the possibility of it reaching the resistance level at 1.0100. The price has gone above the great support level at 1.0000 already.

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GBP/USD: The Cable performed some near-term upswings and downswings on Monday, while the trend in the market remains bearish. There is a high probability that the price would still go further south. The accumulation territories at 1.4650 and 1.4600 are the potential targets for this week.

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USD/JPY: This pair experienced some form of weakness on Monday, just as most JPY pairs experienced weakness on the same day. The bias on the pair is bearish, and thus, further weakness is expected in the market, which might make the price go below the demand level at 119.00, which was tried before the current upward bounce (that could be transitory).

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EUR/JPY: The EUR/JPY went further south on Monday. The market is now moving in a directional manner, and since the bearish bias started last week, price has dropped by 300 pips. Price is now under the supply zone at 129.50, with the possibility of reaching the demand zone at 128.50.

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Daily analysis of USDX for January 05, 2016

On a short-term basis, the USDX has been doing some bullish moves above the support level of 98.66, after gaining strong momentum around the 200 SMA to the upside and now we can expect a rally towards the 99.07 level to test again that high. We cannot discard a pullback that could be extended to the support level of 98.66. The MACD indicator is at the positive territory.

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H1 resistance levels: 98.90 / 99.07

H1 support levels: 98.66 / 98.14

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 98.90, take profit is at 99.07, and stop loss is at 98.72.

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Daily analysis of GBP/USD for January 05, 2016

GBP/USD current intraday structure is still favored to the downside, but be aware of a possible double bottom pattern around the 1.4702 level. A rebound is expected to test the resistance zone of 1.4802 before any declines during the week. However, we should see a decline towards the support level of 1.4608 in a short-term basis. MACD indicator is entering neutral territory.

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H1 chart's resistance levels: 1.4802 / 1.4918

H1 chart's support levels: 1.4702 / 1.4608

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 1.4702, take profit is at 1.4608, and stop loss is at 1.4793.

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Daily analysis of USD/JPY for January 04, 2016

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Overview

Intraday bias in USD/JPY remains on the downside for the moment. A rebound from 116.13 is completed at 123.74 and a deeper fall should be seen back to the 118.05 support first. A break will target a test at 116.13. We expect strong support from there to bring a rebound. On the upside, a break of the 120.64 resistance is needed to indicate short-term bottoming. Otherwise, the outlook will stay bearish in case of recovery. The consolidation pattern from the 125.85 medium-term top is still in progress. In case of a deeper fall, we expect strong support between 116.13 and 38.2% retracement of 101.08 to 125.85 at 116.38 to contain downside. An eventual break of 125.85 is still anticipated later.

Daily Pivots: (S1) 119.88; (P) 120.23; (R1) 120.45

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Daily analysis of Silver for January 04, 2016

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Overview

According to the shown H4 chart, the silver price remains stable below the 13.96 level to keep the negative pressure valid on the near-term and short-term bases supported by the EMA50. It underpins the continuation of the bearish trend in the upcoming period, waiting to head towards 13.50 followed by 13.00 as next main targets. The silver price is testing the key resistance 13.96, and as long as the price is below this level, we will continue suggesting the bearish trend on an intraday and short-term bases, supported by the EMA50, waiting to target 13.50 followed by 13.00 initially. Holding below the 14.25 level is important to achieve the suggested targets. In general, the bearish trend will remain valid and active unless we witness a clear breach and holding with a daily close above the 14.25 mark.

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Daily analysis of GBP/JPY for January 04, 2016

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Overview

A decline in the GBP/JPY pair has accelerated to as low as 175.99 so far and intraday bias remains on the downside for the 174.86 key support level. A solid break there will indicate a larger trend reversal and target 100% projection of 195.86 to 180.36 from 188.79 at 173.9 first. On the upside, movements above 178.10 minor resistance will turn bias neutral and bring consolidation first. But the near-term outlook will stay bearish as long as the 180.36 resistance turned into support holds. In the medium term, a reversal with bearish divergence condition is possible in the weekly MACD ahead of cluster resistance of 61.8% retracement of 251.09 to 116.83 at 199.80, which is close to the 200 psychological level. A solid break of 174.86 will confirm a trend reversal and bring a deeper fall to 38.2% retracement of 116.83 to 195.86 at 165.67 and below. In case of another rise, we will be cautious about strong resistance from 199.80/200.00 to bring the reversal finally.

Daily Pivots: (S1) 176.41; (P) 177.56; (R1) 178.17

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NZD/USD intraday technical levels and trading recommendations for January 4, 2016

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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.

As anticipated, temporary bearish rejection existed around price level of 0.6840 (daily resistance level) similar to what happened previously on December 16.

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

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Few 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 temporary 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).

Last week, lack of bullish pressure above 0.6800 was manifested. That is why, the current bearish pullback is taking place towards 0.6750.

A valid buy entry can be opened around the current price levels (0.6750-0.6700) where the depicted uptrend comes to meet the NZD/USD pair. S/L should be located below 0.6700. Initial T/P level remains located at 0.6840.

Long-term bullish targets are located at 0.6950 when the NZD/USD bulls manage to trade above 0.6845.

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