NZD/USD intraday technical levels and trading recommendations for January 7, 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 the 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.

On the other hand, a daily closure below 0.6750 invalidates the depicted uptrend, allowing a quick bearish decline initially towards the price level of 0.6600 where significant bullish rejection may be applied.

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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/USD pair faced resistance between 0.6700 and 0.6750 providing temporary bearish rejection.

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

Last week, lack of enough bullish pressure above 0.6800 was manifested. That is why, the current bearish decline is pushing even below the depicted support level at 0.6700.

A valid buy entry was suggested around the price zone of 0.6750-0.6700 where the depicted uptrend came to meet the NZD/USD pair.

Shortly after, an evident bearish breakdown of the depicted uptrend line occurred. This invalidated the previous bullish scenario.

Hence, a quick bearish decline was expected towards the prominent support level of 0.6600 where a new bullish swing and a valid buy entry should be expected.

S/L should be set as daily closure below 0.6580.

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USD/CAD intraday technical levels and trading recommendations for January 7, 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 which is being tested today.

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 bearish correction occurs.

Trading recommendations:

Risky traders can have a counter-trend sell position around 1.4100 (Fibonacci Expansion 100%) 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 GBP/USD for January 7, 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) waited for a bearish visit after the market pushed further below the level of 1.4800 (the lower limit of the depicted bearish channel).

Given the previous bullish rejection expressed around 1.4600 on April 2015, a new bullish swing off the current price zone should be expected.

Note that a bullish closure above 1.4950 allows another bullish pullback to occur towards 1.5350.

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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) allowed 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 as well as the prominent demand levels at 1.4600.

That is why, early signs of a bullish reversal around the price zone of 1.4650-1.4570 should be considered as a valid buy signal.

Trading Recommendation:

Risky traders can have a valid BUY entry anywhere around the price zone of 1.4620-1.4550 if enough bullish rejection is expressed in short-term charts (H4 and H1).

S/L should be located below 1.4500 to minimize our risk. Initial T/P levels should be located at 1.4700, 1.4800 and 1.4950.

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Intraday technical levels and trading recommendations for EUR/USD for January 7, 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 1.0570 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, and it already did.

A Head and Shoulders reversal pattern was established around the mentioned supply level.

Bearish closure below 1.0800 (neckline) confirmed the depicted reversal pattern. Hence, the S/L for our sell entry should be lowered to 1.0900 to secure some profits.

The price zone of 1.0800-1.0850 (reversal pattern's neckline) can offer another valid SELL entry if enough bearish rejection is expressed today.

Note that bearish persistence below 1.0800 (neckline of the depicted reversal pattern) is needed to allow further bearish decline towards 1.0730 and 1.0550 again.

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Technical analysis of USD/JPY for January 07, 2016

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USD/JPY is under pressure. Overnight, US stocks continued sliding amid fears about China's economy, North Korea's possible hydrogen-bomb test, and slump in oil prices. The Dow Jones Industrial Average fell 1.5% to 16,906, the S&P 500 lost 1.3% to 1,990, while the Nasdaq Composite was down 1.1% to 4,835. Nymex crude oil plunged 5.6% to $33.97 a barrel.

Gold rose 1.6% to $1,094 a troy ounce, and the benchmark 10-year Treasury yield declined to 2.177% from 2.248% in the previous session.

The US dollar kept strengthening against major commodity-related currencies, with USD/CAD rising 0.5% to 1.4071, AUD/USD falling 1.2% to 0.7071 and NZD/USD losing 1.0% to 0.6635. Meanwhile, EUR/USD gained 0.3% to 1.0778, USD/JPY dropped another 0.5% to 118.46 and GBP/USD was down 0.3% to 1.4626.

The pair keeps trading below the key resistance at 118.35 and is around the overlapping 20-period (30-minute chart) and 50-period moving averages. If it fails to break above the key resistance at 118.35 (an overlap of support and resistance seen yesterday), it should return to the first downside target at 117.25 (around yesterday's low).

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 117.25. A break of that target will move the pair further downwards to 116.75. The pivot point stands at 118.30. 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 118.80 and the second target at 119.30.

Resistance levels: 118.80, 119.30, 119.75

Support levels: 117.25, 116.75, 116.30

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Technical analysis of USD/CHF for January 07, 2016

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USD/CHF is expected to trade in a lower range as the key resistance is at 1.0800. Overnight, the pair challenged the key resistance at 1.0800 repeatedly, but has remained on the downside. While technical indicators (20-, 50-period moving averages, intraday relative strength index) suggest a possible further rebound, the pair is showing subdued upward momentum. If the 1.0800 mark is not surpassed, the pair stands a higher chance of returning to the first downside target at 0.9970.

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 0.9970. A break of that target will move the pair further downwards to 0.9930. The pivot point stands at 1.0080. 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 1.0110 and the second target at 1.0140.

Resistance levels: 1.0110, 1.0140, 1.0175

Support levels: 0.9970, 0.9930, 0.99

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Technical analysis of NZD/USD for January 07, 2016

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NZD/USD is expected to trade in a downtrend. The pair is currently testing its nearest key support at 0.6650, and it seems more likely to break below this threshold in the coming trading hours. The 50-period moving average plays a resistance role and should continue pushing prices lower. Besides, the relative strength index is mixed to bearish. Hence, a break below 0.6650 would trigger a drop towards 0.6590.

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 0.6590. A break of that target will move the pair further downwards to 0.6560. The pivot point stands at 0.6650. 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 0.6710 and the second target at 0.6760.

Resistance levels: 0.6710, 0.6760, 0.6790

Support levels: 0.6590, 0.6560, 0.6525

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Technical analysis of GBP/JPY for January 07, 2016

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GBP/JPY is expected to continue with its downward movement as the key resistance is at 173.05. The pair stays below its key resistance at 173.05 and is moving sideways. Meanwhile, the relative strength index lacks strong upward momentum. The first target to the downside is set at the horizontal support and overlap at 170.40. A break below this level would open the way to further weakness towards 169.60.

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 170.40. A break of that target will move the pair further downwards to 169.60. The pivot point stands at 173.05. 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 174.00 and the second target at 175.10.

Resistance levels: 174.00, 175.10, 175.75

Support levels: 170.40, 169.60, 169

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

Technical analysis of USD/CHF for January 07, 2016

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Overview:

  • The USD/CHF pair has broken a major resistance at the level of 0.9986 last week. It should be noted that the new resistance was calculated and found at the level of 1.0065 and it is now approaching it in order to test it. Besides, the 0.9986 price has become a strong support which coincides with the ratio of 50% Fibonacci retracement levels. So, the USD/CHF pair will be limited by the levels of 0.9980 and 1.0065, so we expect a range of approximately 67 pips today. The support will be set around the area of 0.9986. Therefore, it will be of the insight to buy above the level of 0.9986 with the first target of 1.0035. If the trend breaks the first target (1.0035), it might resume to 0.9065 . Furthermore, the double top will be set at the level of 1.0073. Stop loss should never exceed your maximum exposure amounts. So, stop loss should be placed below the 0.9945 level.
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Technical analysis of EUR/USD for January 07, 2016

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Overview:

  • The price of the EUR/USD pair has still been trading between 1.0902 and 1.0765 (weekly range). The level of 1.0902 will indicate a strong resistance; moreover, the price will form a double top at this level. Therefore, it will be quite profitable to sell at 1.0902 again (short term) with the first target at 1.0811 and then at 1.0765. Besides, a strong support has been placed at 1.0765 on the H1 chart. On the other hand, if the price closes above the resistance, then the best location for placing a stop loss should be above 1.0902. In addition, please be aware that the trend has broken the weekly support 1 and 2 as it calls for a bearish market. Equally important, the RSI and Moving Average (100) are still calling for a downtrend. Therefore, sell below the spot of 1.0902 with the targets of 1.0811, 1.0786 and 1.0762.

Intraday technical levels:

  • R3: 1.1025
  • R2: 1.0951
  • R1: 1.0902
  • PP: 1.0854
  • S1: 1.0811
  • S2: 1.0762
  • S3: 1.0709
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Global macro overview for 07/01/2016

Global macro overview for 07/01/2016:

The building approvals data was released last night in Australia showing the biggest decline in more than three years. Market participants had expected a smaller decrease in permits of 2.8% this month against 3.3% last month, but the plunge amounted to 12,7%. To make things worse, on an annual basis, approvals dropped 8.3% in November, following a 12.3% advance a month earlier. This kind of data should be worrying mainly because the Australian house market has enjoyed a solid run over the last few years, especially ultra-low interest rates have been boosting the demand for housing. After the change in the RBA policy and possible rate hike in the near future, the activity in the housing market is starting to fade.

The AUD/USD pair is trading just above the important support at the level of 0.7015. The next important resistance is seen at the level of 0.7079.

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Global macro overview for 07/01/2016

Global macro overview for 07/01/2016:

The yesterday FOMC meeting minutes showed that central bankers believed that economic activity expanded at a moderate pace. Those meeting minutes were from the crucial December 2015 meeting, when the US central bank made a unanimous historic decision to hike interest rates for the first time in almost a decade. Policy makers are planning to rise the interest rates gradually because they see the economic activity keeping on expanding at a moderate pace. The Fed officials have expressed concerns about inflation in the near term as the strong dollar and declining energy prices will still keep the inflation target under pressure. Nevertheless, the Committee expect the inflation to reach the target of 2% in 2018 with gradual gains in the coming years.

The US Dollar index did not manage to break out higher above the 99.30 resistance and now is slowly trading inside the trading range. The next support is seen at the level of 98.05.

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EUR/NZD analysis for January 07, 2016

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Overview:

Recently, EUR/NZD has been moving upwards. The price tested the level of 1.6335 in an average volume. In the daily time frame, I found broken 200 SMA and 50 SMA (sign of strength). In the H4 time frame, I found a change in behavior from downward to upward. Selling EUR/NZD at this stage looks risky. Watch for potential buying opportunities. Resistance levels are at the price of 1.6400 and 1.6750.

Fibonacci Pivot Points:

Resistance levels:

R1: 1.6275

R2: 1.6340

R3: 1.6440

Support levels:

S1: 1.6075

S2: 1.6010

S3: 1.5910

Trading recommendations: Selling EUR/NZD looks very risky at this stage since the price has broken our daily 200 SMA in the H4 and daily time frames. Watch for potential buying opportunities on the dips.

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

Gold analysis for January 07, 2016

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Overview:

Since our last analysis, gold has been trading upwards. As I expected, the price tested the level of $1,102.62 in a high volume. In the daily time frame, we can observe testing of Fibonacci retracement 38.2% and price action resistance. Buying at this stage looks risky since the price is at the strong resistance. The intraday trend is upward, but the mid-term trend is still downward. I placed Fibonacci retracement to find resistance levels and got Fibonacci retracement 38.2% at the price of $1,102.00 (on the test) and Fibonacci retracement 61.8% at the price of $1,136.00. Intraday selling positions are preferable. The first support level is around the price of $1,088.50.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,094.55

R2: 1,097.65

R3: 1,102.65

Support levels:

S1: 1,084.55

S2: 1,081.45

S3: 1,076.45

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

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

USDX technical analysis for January 7, 2016

The US dollar index has reversed as expected, although it still has the potential to make one more new higher high closer to 100 before reversing. With Non-Farm Payrolls on Friday, guessing where the dollar is heading is very difficult. The best thing to do is to wait and trade after the Friday announcement.

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Blue line - trend-line support

The US dollar index has almost reached the 78.6% Fibonacci retracement and reversed. However, the price remains above the 4-hour cloud support and above the blue trend line. As long as we are above the 98 level, we could expect a move higher towards 100.

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On the daily chart, the US dollar index is fully supported by the Ichimoku cloud and trades above both the tenkan-sen and kijun-sen indicators. The price is making higher highs and higher lows. A daily close below 98.80 will be the first sign of a bearish reversal. If this happens, then we should find support at 97.The material has been provided by InstaForex Company - www.instaforex.com

Gold technical analysis for January 7, 2016

As we expected, the gold price continues moving higher towards our first target of $1,095-$1,100 where the 38% Fibonacci retracement of the decline from $1,190 is found.

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Blue lines - triangle (broken)

The gold price is above the Ichimoku cloud on the 4-hour chart and has already broken above the triangle pattern. The 38% Fibonacci retracement has been reached and bulls should be very cautious now as this is important short-term resistance.

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The weekly chart shows the strong bounce we so long expected after the multi-week sideways movement. The first target is the kijun-sen (yellow indicator). Next is the Ichimoku cloud. I remain bullish as long as the price is above $1,070.The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of USD/CAD for January 7, 2016

General overview for 07/01/2016:

The projected target at the level of 1.04058 has been hit, but the market moved even higher as the fifth wave is still in progress. Please notice the visible bearish divergence between the price and momentum oscillator that is supporting the view. The top of the wave five might be established any time.The long-term resistance for the price is in the monthly time frame is around the level of 1.4300.

Support/Resistance :

1.4058 - WR3

1.4107 - Intraday Support

1.4000 - Round Number Support

1.3932 - WR2

1.3872 - Weekly Pivot

Trading recommendations:

Day traders that still have buy orders open from Monday should move their SL to the level of 1.4107 as the uptrend might terminate any time soon.

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Technical analysis of EUR/JPY for January 7, 2016

General overview for 07/01/2016:

An impulsive wave progression in the last wave c looks completed and now an impulsive breakout higher above the level of 128.20 is needed to confirm that the bottom might be in place. Please notice that the bullish divergence between the price and momentum oscillator supports the view.

Support/ Resistance :

127.02 - Intraday Support

127.98 - WR3

128.67 - Intraday Resistance

129.31- WS2

Trading recommendations:

Daytraders should watch this pair closely and consider buying on the dips in this market with tight SL as the downside trend might reverse any time soon.

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Technical analysis of Silver for January 07, 2016

Technical outlook and chart setups:

Silver seems to be stuck within the trading range $13.65 to $14.20 as depicted on the H4 chart. The metal needs to break above at least the $14.60 levels to ensure further highs. It is hence recommended to remain flat and watch for levels near the support line ($13.70/80) to initiate long positions or sell around the mark of $14.20. A clear push above the $14.30 levels would be a breakout and encourage a bullish setup. Immediate support is at the $13.90 levels followed by $13.75 and lower, while resistance is seen at $14.20. Only a break below the $13.65 levels would be bearish for the metal.

Trading recommendations:

Flat for now. Look to buy lower.

Good luck!

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

Technical analysis of Gold for January 07, 2016

Technical outlook and chart setups:

Gold has hit the first minimum expectations at the $1,102.00 levels today. The metal is now expected to retrace lower at least towards the $1,085.00 levels before heading towards $1,125.00 and $1,136.00. It is hence recommended to take partial profits on long positions taken earlier and wait for a dip to re-enter again. Immediate support for the metal is seen at the $1,085.00 levels, while resistance is now seen at $1,025.00 and $1,036.00. Please also note that the past resistance turned into support is also around the $1,080.00/85.00 levels. Bulls seem to be poised to push gold prices to $1,136.00 at least before reversing.

Trading recommendations:

Fix profits on long positions taken earlier. Look to buy again around $1,085.00.

Good luck!

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

Technical analysis of EUR/JPY for January 07, 2016

Technical outlook and chart setups:

The EUR/JPY pair has dropped to the final Fibonacci support as depicted here on the daily chart view, around the 127.00 levels. The pair is seen to be trading around the 127.50/60 levels at the moment, producing a tweezers bottom bullish signal. The entire structure could still be encouraging for bulls if the 126.09 lows remain intact for the next 1-2 trading sessions. It is hence recommended to initiate long positions now with risk at the 126.00 levels. Immediate support is seen at the 126.00 levels, while resistance is seen at 129.50 followed by 132.50 and higher. If the mentioned structure holds, bulls should resume rally and take control back.

Trading recommendations:

Initiate long positions, stop is at 126.00, target is open.

Good luck!

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

Elliott wave analysis of EUR/NZD for January 7, 2016

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Wave summary:

We have now seen a clear break above an important resistance at 1.6220, which has opened up the upside for a rally to 1.6583 and 1.6736 as next upside targets. Support is now found in the 1.6197-1.6220 area, which ideally will protect the downside for a continuation towards 1.6445 and 1.6583.

In the longer term, we are looking for much higher levels and ultimately a break above 1.9114.

Trading recommendation:

We are long EUR from 1.5810 and will move our stop higher to 1.6050. If you are not long EUR yet, then buy near 1.6220 and use the same stop at 1.6050.

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

Elliott wave analysis of EUR/JPY for January 7, 2016

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Wave summary:

As we expected, red wave (iii) ended at 126.97 and wave (iv) is now unfolding. This correction in red wave (iv) is more about time than the price. It means the correction is expected to shallow and pave the way for the next move lower towards 125.84 as the next downside target.

A test of the 128.04 target has already been seen and red wave (iv) could move a little higher to 128.55, but do not expect too much.

Trading recommendation:

We are short EUR from 130.95 with stop placed at 129.50. If you are not short EUR yet, then sell near 128.04 and use the same stop at 129.50.

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

Technical analysis of USD/JPY for January 07, 2016

Market Overview:

The Japanese yen is one of major currencies that can become stronger against the US dollar in this new 2016 year. Although, in a bigger time frame, it seems to be in a ranging condition, but on the intraday chart, the yen is strengthening against the greenback.

Economic Data:

Today, Japan will release its reports on the 30-y Bond Auction, and the United States will publish its data on Natural Gas Storage, Unemployment Claims, Challenger Job Cuts y/y. Amid these statistical reports, the USD/JPY pair could be moving in low to medium volatility today.

Technical Data:

Weekly Bias: ranging

Daily Bias: bearish (stronger yen)

Technical Levels:

Resistance 3: 118.81

Resistance 2: 118.58

Resistance 1: 118.35

Support 1: 118.06

Support 2: 117.83

Support 3: 117.60.

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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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Technical analysis of EUR/USD for January 07, 2016

Market Overview:

Entering the new 2016 year, we were struck by two important events. The first one is geopolitical conflicts between UAE and Iran, and the second event is the hydrogen bomb test by North Korea. Both of these events worry market participant so they choose USD as safe-haven instrument. No wonder most major currencies are experiencing bearish condition, especially the euro.

Economic Data for Today:

The eurozone will release the data on Retail Sales m/m, Retail PMI, and Unemployment Rate. Reports on Italian Monthly Unemployment Rate, German Retail Sales m/m, and German Factory Orders m/m will see the light of day as well. Statistics on Natural Gas Storage, Unemployment Claims, and Challenger Job Cuts y/y will be unveiled in the United States. Amid the data, EUR/USD is likely to move today with low to medium volatility.

Technical Data for Today:

Weekly Bias: Down

Daily Bias: Ranging

Technical Levels for Today:

Breakout BUY Level: 1.0829

Strong Resistance: 1.0823

Original Resistance: 1.0812

Inner Sell Area: 1.0801

Target Inner Area: 1.0776

Inner Buy Area: 1.0751

Original Support: 1.0740.

Strong Support: 1.0729.

Breakout SELL Level: 1.0723.

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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 7, 2016

EUR/USD: There is a vivid bearish signal for this trading instrument as bears push the price lower and lower. The EMA 11 is below the EMA 56 and the Williams' % Range period 20 is not far from the oversold region. Potential targets for this week remain at 1.0700 and 1.0650.

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USD/CHF: The USD/CHF pair is in an uptrend, and given the current price action, it would be nice to buy pullbacks in the market. This is because the upward journey would continue, but there would be occasional muscles flexing the bears leading to occasional bearish corrections. The time during these corrections would be ideal for long trades in case a bullish candle forms next. Right now, there is a correction, following desperate attempts to breach the resistance level at 1.0100. Bulls might succeed in breaking that resistance level to the upside.

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GBP/USD: Since mid-December, the Cable has gone down by 600 pips. There is a clear bearish confirmation pattern on the chart, which means the price could continue with its downward journey. The accumulation territory at 1.4600 stands a great chance of being tested. It also stands a great chance of being broken to the downside as the price goes further down.

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USD/JPY: The USD/JPY pair has gone down by almost 145 pips this week, and right now, the price threatens to break down further. There is a lot of trading activity around the accumulation territory of 118.50, which might be easily broken to the downside. Further downward movement is possible in the market, and therefore, short trade should be sought.

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EUR/JPY: This cross has almost tested the demand zone at 127.00. The bearish bias is now very strong, and any rallies should be taken as short-selling opportunities in this kind of market. In spite of bullish attempts – like the one being seen right now – the demand zone at 127.00 could still be breached to the downside.

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Daily analysis of USDX for January 07, 2016

There is a corrective phase ongoing at USDX, which could test the support level of 99.07 again in coming days. However, the overall structure is still pointing to the upside, and that is why the bullish bias is still strong. The 200 SMA is pointing to the upside and a breakout around the resistance level of 99.58 will expose the Index to test the 99.87 level.

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H1 chart's resistance levels: 99.58 / 99.87

H1 chart's support levels: 99.07 / 98.90

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 99.58, take profit is at 99.87, and stop loss is at 99.31.

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Daily analysis of GBP/USD for January 07, 2016

GBP/USD has been trading above the support level of 1.4608 after another session of declines on a short-term basis. On the H1 chart, a strong bottom was found around that level, so we can expect a rebound towards the resistance level of 1.4702 in coming days. The MACD indicator is in positive territory.

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H1 chart's resistance levels: 1.4702 / 1.4802

H1 chart's support levels: 1.4608 / 1.4464

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 1.4608, take profit is at 1.4464, and stop loss is at 1.4755.

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Daily analysis of EUR/JPY for January 06, 2016

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Overview

EUR/JPY continues falling today and reaches as low as 127.31 so far. Intraday bias remains on the downside to test the 126.09 key support level. We stay cautious about strong support from 126.09. But a break of the 129.66 support, turning it into resistance, is needed to indicate short-term bottoming. Otherwise, the outlook will stay bearish. A decisive break of 126.09 will extend the larger decline from 149.76. A strong rebound after failing to sustain below 38.2% retracement of 94.11 to 149.76 at 128.50 points to the development of a sideways pattern. We expect more range trading between 126.09 and 149.76 in the medium term. An upside breakout should come next at a later stage. Nevertheless, a decisive break of 126.09 would extend the correction towards 61.8% retracement at 115.36.

Daily Pivots: (S1) 127.16; (P) 128.31; (R1) 129.12

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Daily analysis of Silver for January 06, 2016

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Overview

The silver price shows more fluctuations around 13.96 and the EMA 50. Therefore, there is no change in our main bearish overview that depends on the stability of the daily close below 14.25, waiting to head towards 13.50 followed by 13.00 initially. Stochastic starts to offer negative overlapping signal that might motivate the price to resume the bearish bias in the upcoming sessions. The silver price have not shown any strong moves since morning, moving near the 13.96 level. This keeps the bearish trend scenario valid (no changes seen today), targeting 13.50 then 13.00 levels mainly. Its continuation is conditioned by holding below the 14.25 level.

Expected trading range for today is between the 13.50 support and 14.25 resistance.

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Daily analysis of GBP/JPY for January 06, 2016

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Overview

A decline in the GBP/JPY pair is still in progress and intraday bias remains on the downside for 100% projection of 195.86 to 180.36 from 188.79 at 173.9. A decisive break there will target the next long-term Fibonacci level at 165.67. On the upside, movements above 176.15 minor resistance will turn bias neutral and bring consolidations. But the near-term outlook will stay bearish as long as 180.36 resistance turned into support holds. A fall from 196.85 is currently viewed as a correction and would first target 38.2% retracement of 116.83 to 195.86 at 165.67. We asses the depth of the correction based on reactions to 165.67 and the structure of the decline. A break of 180.36 will bring a rebound, but we expect the strong resistance to limit the upside and bring another fall to extend the corrective pattern.

Daily Pivots: (S1) 173.81; (P) 174.98; (R1) 175.88

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