NZD/USD intraday technical levels and trading recommendations for January 12, 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 0.6750 and 0.6840.

On the other hand, a daily closure below 0.6750 invalidated the depicted uptrend, allowing a quick bearish decline initially towards the price level of 0.6600 which was broken-down as well.

Price level of 0.6500 remains a significant Support level for the pair where a new bullish swing towards 0.6600 and 0.6700 may be initiated.

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Two weeks ago, lack of enough bullish pressure was seen above 0.6800. That is why, the current bearish decline is pushing the pair even below the depicted support levels at 0.6700 and 0.6600.

However, an evident bearish breakdown of the depicted uptrend line occurred shortly after. This invalidated the previous bullish scenario allowing a quick bearish decline to occur towards the prominent support level of 0.6600.

Bearish decline went further below 0.6600 extending towards 0.6500 which corresponds to the lower limit of a previous consolidation range. Early signs of bullish recovery are manifested on the chart.

Bullish fixation above 0.6600 is needed to pursue towards higher bullish targets at 0.6700 and 0.6750 where price action should be watched carefully.

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USD/CAD intraday technical levels and trading recommendations for January 12, 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 1.4150 (Fibonacci Expansion 100%) was expected to take place. Hence, a valid sell entry should be expected around this level which is being tested again this week.

Note that a bullish daily closure above 1.4150 enhances the bullish side of the market towards 1.4600 where 141.4% Fibonacci expansion is located

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:

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 1.4140.

On the other hand, risky traders can have a counter-trend sell position around 1.4150 (Fibonacci Expansion 100%) if enough bearish rejection is expressed (bearish engulfing candlestick closure below 1.4100).

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Intraday technical levels and trading recommendations for GBP/USD for January 12, 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 previous weekly level at 1.4950 was expected as a result of the bearish breakdown below 1.5200.

Weekly fixation below 1.4950 exposed the way towards 1.4620 which was broken down last week as well.

Moreover, the previous weekly candlestick closed below the depicted demand level at 1.4620. Hence, a quick bearish decline towards the next demand level (1.4360) should be expected.

On the other hand, a bullish closure above 1.4610 brings bullish strength into the market. The first bullish target would be located at 1.4950.

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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.

The GBP/USD pair now looks oversold as it is being pushed further below the lower limit of the depicted bearish channel. Moreover, the previous demand level at 1.4615 was broken down last Friday.

That is why, early signs of bullish rejection should be considered around the demand level of 1.4360 as a valid buy signal.

Trading Recommendation:

Risky traders can have a valid BUY entry anywhere around the price level of 1.4360.

S/L should be located below 1.4300 to minimize our risk. Initial T/P levels should be located at 1.4440, 1.4500 and 1.4610.

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Intraday technical levels and trading recommendations for EUR/USD for January 12, 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. Estimated bearish target is located at 1.0620.

Note that bearish persistence below 1.0800 (neckline of the depicted reversal pattern) is needed to allow further bearish decline towards 1.0730 and 1.0620 again.

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Technical analysis of USD/JPY for January 12, 2016

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USD/JPY is expected to rebound. Overnight, US stocks managed to halt further slippage thanks to a session-end rally. Shares in the automobile and retailing sectors traded higher, while energy stocks dropped sharply as Nymex crude oil plunged 5.3% to $31.41 a barrel. The Dow Jones Industrial Average gained 0.3% to 16,398, the S&P 500 added 0.1% to 1,923, while the Nasdaq Composite was down 0.1% to 4,637.

Gold declined 0.8% to $1,094 an ounce, while the benchmark 10-year Treasury yield edged up to 2.160% from 2.131% in the previous session.

Meanwhile, the US dollar remained mixed. EUR/USD dropped 0.6% to 1.0859, USD/CHF rose 0.7% to 1.0015, while GBP/USD edged up 0.1% to 1.4538 and AUD/USD was up 0.6% to 0.6993. As oil prices spiraled downward, USD/CAD once surged to 1.4246, which was only last seen in April 2003.

The pair rose to as high as 117.90 yesterday before entering a consolidation. Currently, being above the key support at 117.20, it is standing around the over-lapping 20- and 50-period moving averages, showing no downward momentum. If the current consolidation ends above the key support, the pair should retest the first upside target at 118.80.

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 118.80 and the second target at 119.30. In the alternative scenario, it is recommended to open short positions with the first target at 116.75, 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 116.10. The pivot point is at 117.20.

Resistance levels: 118.80, 119.30, 119.75

Support levels: 116.75, 116.10, 115.75

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Technical analysis of USD/CHF for January 12, 2016

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USD/CHF is expected to continue its rebound. The pair remains supported by its rising 20-period moving average. The 50-period moving average is also turning up, and should play a support role. Furthermore, the relative strength index stands firmly above its neutrality area at 50, and is well directed. In this case, as long as 0.9950 (our trailing stop loss) is not broken, look for a new advance to 1.0040 and 1.0080 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 1.0040 and the second target at 1.0080. In the alternative scenario, it is recommended to open short positions with the first target at 0.9915, 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 0.9870. The pivot point is at 0.9950.

Resistance levels: 1.0040, 1.0080, 1.0110

Support levels: 0.9915, 0.9870, 0.9810.

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Technical analysis of NZD/USD for January 12, 2016

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NZD/USD is expected to trade in a lower range as the key resistance is at 0.6585. The pair posted some technical rebounds yesterday after the recent decline. Nevertheless, the key resistance at 0.6585 still places prices under strong selling pressure. Besides, the relative strength index lacks upward momentum. Even though a continuation of the technical rebounds cannot be ruled out, its extent should be very limited. As long as 0.6585 is not surpassed, look for a new pullback to 0.6500 and 0.6445 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 0.6500. A break of that target will move the pair further downwards to 0.6445. The pivot point stands at 0.6585. 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 0.6635 and the second target at 0.6675.

Resistance levels: 0.6635, 0.6675, 0.6705

Support levels: 0.65, 0.6445, 0.64

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Technical analysis of GBP/JPY for January 12, 2016

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GBP/JPY is under pressure. The pair stays below its key resistance at 171.10 and remains under pressure. Meanwhile, the relative strength index lacks upward momentum. The first target to the downside is set at the horizontal support and overlap at 169.35. A break below this level would open the way to further weakness towards 168.30.

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 169.35. A break of that target will move the pair further downwards to 168.30. The pivot point stands at 171.10. 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 171.70 and the second target at 172.50.

Resistance levels: 171.70, 172.50, 173.45

Support levels: 169.35, 168.30, 167.65

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Gold analysis for January 12, 2016

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Overview:

Since our last analysis, gold has been trading downwards. As I expected, the price tested the level of $1,085.33. In the daily time frame, we can observe rejection of Fibonacci retracement 38.2% and successful rejection of SMA 100. Buying at this stage looks risky since the price rejected our strong resistance. The intraday trend is downward. Besides, the short- and mid-term trend is downward. I placed Fibonacci expansion to find a potential end of upward correction and got Fibonacci expansion 161.8% at the price of $1,115.50 (held successfully). Be careful when buying gold at this stage and watch for potential selling opportunities. The key support for gold is at the price of $1,046.00.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,104.63

R2: 1,107.67

R3: 1,112.90

Support levels:

S1: 1,094.00

S2: 1,090.10

S3: 1,085.50

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

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Technical analysis of Silver for January 12, 2016

Technical outlook and chart setups:

Silver is seen to be again dropping towards its consolidation support levels around $13.70/75 levels as seen here on the H4 chart. The metal is expected to bounce from the support levels here and push towards $14.20/30 levels in the sessions to come. It has been bouncing off the support and resistance levels since quite a few trading sessions now, and needs to break the cone consolidation to determine its next leg. It is recommended to initiate long positions since the metal is trading at support around $13.70/75. The metal is now expected to reach the resistance zone around $14.20/30 levels in the coming trading sessions.

Trading recommendations:

Initiate long positions now, stop is at $13.65, target is open.

Good luck!

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EUR/NZD analysis for January 12, 2016

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Overview:

Recently, EUR/NZD has been moving downwards. The price tested the level of 1.6505 in an average volume. In the daily time frame, I found rejection from our SMA100 and SMA150 at the price of 1.6770. In the H4 time frame, I found that supply came in today. Besides, the price is above SMA50, SMA100, and SMA200. Selling EUR/NZD at this stage looks risky. Watch for potential buying opportunities. I placed Fibonacci expansion to find a potential end of downward correction and got Fibonacci expansion 61.8% at the price of 1.6515. The resistance level is at the price of 1.6835.

Fibonacci Pivot Points:

Resistance levels:

R1: 1.6760

R2: 1.6830

R3: 1.6950

Support levels:

S1: 1.6520

S2: 1.6445

S3: 1.6325

Trading recommendations: The short-term trend is still upward. So, watch for potential buying opportunities on the dips.

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Technical analysis of Gold for January 12, 2016

Technical outlook and chart setups:

Gold is seen to be trading at $1,085.00/86.00 levels for now, looking to form a base around $1,078.00/80.00 levels as expected before rallying further. The metal has potential to rally through $1,125.00 and $1,136.00 levels before reversing lower. Please note that the current drop towards $1,080.00 levels is just a counter trend and the metal should be seen forming bottom around $1,080.00 levels. It is hence recommended to initiate 50% long positions now and remain at $1,078.00/80.00 levels with risk at $1,060.00. Immediate support is seen at $1,075.00 levels, while resistance is seen at $1,108.00 levels.

Trading recommendations:

Long 50% now and remain around $1,080.00, stop is at $1,060.00, target is open.

Good luck!

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Technical analysis of GBP/CHF for January 12, 2016

Technical outlook and chart setups:

The GBP/CHF pair has retraced to Fibonacci 0.618 support of the entire rally between 1.4350 and 1.4580 levels, at 1.4415/25 levels at the moment. The pair is looking to push higher through at least 1.4750 levels, if not lower. The potential remains for a rally to 1.4950 current levels as well from. The pair is seen to be trading around 1.4430 levels, looking to form a bullish reversal candlestick signal in smaller time frames. It is hence recommended to remain long and also look to add further positions with risk at 1.4300 levels. Immediate support is seen at 1.4350 levels, while resistance is seen at 1.4650 levels and higher.

Trading recommendations:

Remain long, stop is at 1.4300, target is 1.4750.

Good luck!

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Technical analysis of NZD/USD for January 12, 2016

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Overview:

  • The NZD/USD pair will keep moving downwards from the level of 0.6603 (this level coincides with the 38.2% of Fibonacci retracement levels in H4 chart). Accordingly, the Kiwi is going to show signs of weakness at the highest price of 0.6603. Thereafter, it will be a good deal to sell below the level of 38.2% of Fibonacci retracement levels in H4 chart with the first target at 0.6481 and the second one at 0.6429 in order to test the double bottom (new project). Importantly, we expect that the new minimum price of 0.6429 will act as strong support and it is going to be a good place to take profit. On the other hand, in case a reflection takes place and the NZD/USD pair is not able to break through the suport at the 0.6781 level, the pair will further decline to 0.6429 to indicate a bearish market. At the same time, if the trend succeeds to stay above 0.6630, the market will continue upward movement above the daily pivot point towards the level of 0.6709.
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Technical analysis of USD/CHF for January 12, 2016

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Overview:

  • The USD/CHF pair is going to set strong resistance at the level of 1.0096 and support at 0.9910. Equally important, the price is still moving between 0.9910 and 1.0096. Besides, the USD/CHF pair has still been below 78.6% of Fibonacci retracement levels since last week. As a result, the price has already formed the strong resistance at the level of 1.0096 and it is now approaching it in order to test it again. Therefore, the Swissy will get convincing downside momentum and the structure of the fall does not look corrective. It indicates a bearish opportunity below the 1.0096 level. So, it will be a good sign to sell below 1.0096 with the first target of 0.9973 (this level coincides with the daily pivot point) and it will call for a downtrend in order to continue bearish move towards 0.9910 in the coming hours. On the other hand, the stop loss should always be taken into account. Hence, it will be wise to set your stop loss at the price of 1.0123.

Intraday technical levels:

  • R2: 1.0123
  • R1: 1.0073
  • PP: 0.9973
  • S1: 0.9940
  • S2: 0.9881
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USD/JPY technical analysis for January 12, 2016

USD/JPY is trading in a short-term bearish channel from 123.50 and is testing the neckline support at 117-116, which is a very important long-term support. Resistance is at 118.85. If it is broken I expect this pair to push towards 120. Otherwise, we should reach the 116 area.

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The short-term resistance is at 118 and next at 118.85. Support is at 117.15. The trend is bearish. The price is below the Ichimoku cloud and below both cloud indicators (tenkan-sen and kijun-sen).

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Red line - neckline support

According to the daily chart, the price has broken below the Ichimoku cloud and the decline has stopped right at the red neckline support of a potential Head and Shoulders top. A break below 116.50 will be a bearish signal, but with oscillators oversold there are more chances of a bounce towards 120 now.

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GBPUSD technical analysis for January 12, 2016

GBP/USD remains in a strong down trend inside a bearish channel, but there are signs that bears should be very cautious as I believe around 1.4450 we should expect a big reversal and strong bounce in this pair.

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GBPUSD is trading inside a bearish channel as shown in the 4-hour chart above. Trend remains bearish as price is trading below the Ichimoku cloud and both the tenkan- and kijun-sen indicators. Stochastic oscillator is oversold providing some bullish divergence signals. Beas should protect their profits if price breaks above 1.4610. Downward target is at 1.4450.

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In the weekly chart we also find oversold oscillator readings. A bounce towards 1.52 is possible although bulls will first have to break above 1.46-1.4650 in order to regain short-term control of the trend. Concluding, bears are in control but I believe they should protect their short positions by lowering their stops as a bounce is expected.The material has been provided by InstaForex Company - www.instaforex.com

Global macro overview for 12/01/2016

Global macro overview for 12/01/2016:

The UK industrial and manufacturing production data, which have been just released, broadly disappointed investors. The market had expected the industrial production to decline just slightly from 0.1% to 0.0% this month, instead of that the production declined to -0.7%. Moreover, the manufacturing production had stayed at the same level as a month ago: -0.4% amid the market expectation of a minor increase to the level of 0.1%. It has been the fifth consecutive annual decline. The industrial output is the biggest plunge in almost three years due to warmer weather lowering energy demand.

The GBP/USD pair has dropped in light of the negative UK economy news and currently is trading just above the support at the level of 1.4495.

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Global macro overview for 12/01/2016

Global macro overview for 12/01/2016:

The Japanese current account data was released overnight and it revealed account surplus for the 17th straight month in November. Japan's current account surplus came in at 1.14 trillion yen, up from 440.2 billion yen a year earlier. It was the much-expected data from Prime Minister Shinzo Abe's economy policy. The surplus was better than expectations mainly due to an increase in income from investments abroad by Japanese companies and a rise in services amid an influx of tourists after the Japanese yen weakened.

The USD/JPY pair is trading below the technical resistance at the level of 118.03. The next support is seen at the level of 116.18.

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USDX technical analysis for January 12, 2016

The US Dollar index has bounced towards the 99 resistance level and I expect more selling pressures to push the price lower to test the 98 support area.

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Blue line - support

Red line - resistance

The US Dollar index is mainly moving sideways as the price holds above the 98 support and below 99 resistance. I believe that the US Dollar index will eventually break support and push lower towards at least 97. Even after the better-than-expected Non-Farm Payrolls announced last Friday, the US Dollar reaction has been very muted.

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According to the daily chart, the US Dollar index has found resistance at the upper cloud boundary. A rejection there will confirm the bearish short-term trend, the index is in, with possible target at the lower cloud boundary. If support at 98 is broken, we should expect moves towards 97 at least.The material has been provided by InstaForex Company - www.instaforex.com

Gold wave analysis for January 12, 2016

The gold price is either in a wave 4 correction phase or has made an important top and is starting a new decline towards new lows at $1,000. The decisive price level is $1,080.

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The gold price is still above the Ichimoku cloud and the pullback has reached the kijun-sen support (yellow line). This level is also the 38% Fibonacci retracement support. This is a typical 4th wave correction. If the bullish scenario is true, then we should expect one more new final high to complete wave 5 up. However, if we pull back lower and price overlaps wave's 1 high at $1,080, then the bullish scenario will be postponed.

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Red lines - bullish wedge

Yellow line - long-term resistance

The weekly chart remains the same. The price has much more upside potential than downside. The price increase has stopped right at the weekly kijun-sen resistance. The long-term trend remains bearish as the price remains below the Ichimoku cloud. However, I believe, there are more chances of a push towards the cloud.

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Daily analysis of major pairs for January 12, 2016

EUR/USD: The EUR/USD pair went down slightly on Monday with nothing significant. This week would see what shall happen to the market, but the bearish bias would not be over unless the price goes above the resistance line at 1.1000, which is a formidable line.

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USD/CHF: On Monday, this pair showed some determination to continue going upwards. It is possible that the price would test the resistance level at 1.0100, which bulls could not breach to the upside last week. Another attempt to breach it to the upside might be witnessed this week, though that would require a significant buying pressure.

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GBP/USD: The GBP/USD pair is still in a bearish mode, and the price might go further southwards. Any rallies in the market should be seen as opportunities to sell short, because the bearish trend is likely to continue. Therefore, the accumulation territories 1.4500 and 1.4450 could be attained.

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USD/JPY: This currency trading instrument, which moved southwards last week, still shows the tendency to move further south this week. The price made several attempts to break the demand level at 117.00 to the downside, but with no success. The price still shows the determination to go further south, which may eventually enable it to go below the demand level at 117.50.

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EUR/JPY: This cross moved lower on Monday in conjunction with the extant bearish outlook. The Bearish Confirmation Pattern in the market is valid, and the price could test the demand zone at 127.00. The price could even breach that demand zone to the downside.

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Technical analysis of USD/CAD for January 12, 2016

General overview for 12/01/2016:

Yesterday's swing high has been broken and this is why the main count has been invalidated. When we take a look at a higher time frame like H4, the wave progression still looks impulsive, but the projected target levels are rather close to the current price. Moreover, there is still no sign of the overbalance and price is still trading inside the dashed blue channel. The projected target for the wave 5 at the level of 1.4271 might be hit, but if wave 5 gets extended to the upside, further price targets are 1.4396 and 1.4551.

Support/Resistance:

1.4355 - WR1

1.4271 - Wave 5 Target Projection

1.4186 - Intraday Support

1.4098 - Weekly Pivot

1.4046 - Intraday Support

1.4010 - WS1

Trading recommendations:

Daytraders should consider to open sell orders from the level of 1.4271 with SL just above and TP at the level of 1.4186.

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Technical analysis of EUR/JPY for January 12, 2016

General overview for 12/01/2016:

One more wave down has been made yesterday inside of the wave b purple subcycle. The count is still valid, but the target for the potential wave c purple has been lowered to the level of 129.61, just above the old wave -iv- top. Nevertheless, to confirm this scenario, the price must break out higher above the golden trend line in impulsive fashion.

Support/Resistance:

127.31 - Intraday Support

128.31 - Weekly Pivot

129.08 - Intraday Resistance

129.31 - Wave c Target Projection

131.01 - Technical Resistance

Trading recommendations:

Daytraders should open buy orders from current market levels witch SL just below the last intraday support at the level of 127.31 and TP at the level of 129.61

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Elliott wave analysis of EUR/NZD for January 12 - 2016

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Wave summary:

We expect that the minor correction from 1.6841 down to 1.6468 is enough to resume the underlying uptrend for a rally past resistance at 1.6841. A firm break above 1.6841 will call for upside acceleration with the next targets to look for at 1.7132 and 1.7838.

Should the low at 1.6468 be broken, the next corrective target will be found at 1.6418, but at no time support at 1.6242 is likely to be broken.

Trading recommendation:

We remain long EUR from 1.5810 with our stop placed at 1.6235. If you are not long EUR yet, then buy near 1.6471 and use the same stop at 1.6235.

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Elliott wave analysis of EUR/JPY for January 12 - 2016

2016-01-12-EURJPY-8H.png

Wave summary:

We continue to look for minor resistance at 128.47 protecting the upside for a break below minor support at 127.28 and more importantly a break below support at 126.76 confirming renewed downside pressure towards 126.05 and below to 125.45.

If minor resistance at 128.47 is broken, a more complex correction will be unfolding and a minor rally closer to 129.48 should be expected before the next downside pressure sets in.

Trading recommendation:

We remain short from 130.95 with stop placed at 129.10. If you are not short EUR yet, then sell near 128.20 with stop placed at 128.50.

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Technical analysis of EUR/USD for Januari 12, 2016

!_EURUSD.jpg

When the European market opens, no news will be released from the eurozone. However, the US will post some economic reports such as IBD/TIPP Economic Optimism, JOLTS Job Openings, and NFIB Small Business Index. So amid the reports, EUR/USD will move with low to medium volatility today.

TODAY'S TECHNICAL LEVEL:

Breakout BUY Level: 1.0905.

Strong Resistance:1.0899.

Original Resistance: 1.0888.

Inner Sell Area: 1.0877.

Target Inner Area: 1.0852.

Inner Buy Area: 1.0827.

Original Support: 1.0816.

Strong Support: 1.0805.

Breakout SELL Level: 1.0799.

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

Technical analysis of USD/JPY for Januari 12, 2016

!_USDJPY.jpg

In Asia, Japan will release the Economy Watchers Sentiment, Consumer Confidence, Bank Lending y/y, and Current Account. The US will also publish some economic data such as IBD/TIPP Economic Optimism, JOLTS Job Openings, and NFIB Small Business Index. So there is a probability the USD/JPY pair will move with low to medium volatility today.

TODAY'S TECHNICAL LEVEL:

Resistance. 3: 118.39.

Resistance. 2: 118.16.

Resistance. 1: 117.93.

Support. 1: 117.65.

Support. 2: 117.42.

Support. 3: 117.19.

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 January 12, 2016

The USDX is still trying to ride the overall bullish bias, as the support level of 98.39 rejected the price action from sellers. Now, there is a possible bullish consolidation ongoing above the 200 SMA and the Index is pointing to test the resistance zone of 99.22. If the Index breaks this zone, then we can expect a rally towards the 99.49 level.

USDXH1.png

H1 chart's resistance levels: 99.22 / 99.49

H1 chart's support levels: 98.79 / 98.39

Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the USD Index breaks with a bullish candlestick; the resistance level is at 99.22, take profit is at 99.49, and stop loss is at 98.94.

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

Daily analysis of GBP/USD for January 12, 2016

On the H1 chart, we should note that there are corrective moves above the support level of 1.4464, which can be challenged in the coming days, as the pair remains very strong in the overall bearish bias. The 200 SMA is pointing to the downside and that's why we should keep on mind the bearish targets placed around the 1.4464 and 1.4374 levels.

1452550031_GBPUSDH1.png

H1 chart's resistance levels: 1.4555 / 1.4608

H1 chart's support levels: 1.4464 / 1.4373

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 1.4464, take profit is at 1.4373, and stop loss is at 1.4555.

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

Daily analysis of USD/JPY for January 11, 2016

USDJPYH4.png

Overview

According to the shown H4 chart, there is no change in the USD/JPY outlook. A deeper fall is still expected as long as the 118.83 minor resistance holds to the 116.13 key support level. Price actions from 125.85 are still viewed as a sideways consolidation pattern. Breaks above the level of 118.83 will turn bias back to the upside to the 120.33 support turned into resistance first. Still, a sustained break of 116.13 will indicate that it is deeper medium-term correction. At this point, we are viewing it as a sideways pattern and we expect strong support around 116.13 to contain the downside. However, a sustained break of 116.13 will indicate that the corrective fall from 125.85 would extend to 38.2% retracement of 75.56 (the low of 2011) to 125.85 at 106.63 and lower.

Daily Pivots: (S1) 116.91; (P) 117.82; (R1) 118.34

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

Daily analysis of Silver for January 11, 2016

SILVERH4.png

Overview

The silver price continues fluctuating around the EMA50, and the price is still inside the sideways range that appears on the chart above. Its lines are represented by the 13.65 support and 14.25 resistance, noticing that positive Stochastic contradicts the negative pressure exerted by the EMA50. In general, we still suggest sideways trading on an intraday basis until the price manages to breach one of the mentioned levels. Breaking the 13.65 support will push trading to visit 13.00 as the first main target, while breaching the 14.25 level will push the price to test the 15.30 level mainly. The silver price did not show any strong moves to continue fluctuating around the 13.96 level since morning; thus, there is no change in the sideways trading scenario that confined between 13.65 support and 14.25 resistance, waiting to breach one of them in order to detect the next destination clearly.

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Daily analysis of GBP/JPY for January 11, 2016

GBPJPYH4.png

Overview

GBP/JPY dropped sharply last week and reached the mark of 170.36. The development confirmed a medium term-trend reversal. Initial bias remains on the downside this week for the next long-term Fibonacci level at 165.67. On the upside, breaks above minor resistance at 173.35 will turn bias neutral and bring consolidations first. But recovery should be limited below the 180.36 support turned into resistance and bring fall resumption. In the longer-term picture, the uptrend from the 116.83 long-term bottom should have made a medium-term top at 195.86. We expect price actions from 195.86 to develop into a corrective pattern. Such an uptrend should resume at a later stage after the correction completes.

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