EUR/NZD: analysis for January 14, 2016

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Overview:

Recently, EUR/NZD has been moving upwards. As I expected, the price tested the level of 1.7020 in an volume above the average. In the daily time frame, the price has broken 100 SMA and resistance at the level of 1.6760. In the H1 time frame, I found that the price has broken the bullish flag pattern. Selling EUR/NZD at this stage looks risky. Watch for potential buying opportunities on dips. The next upward station is seen around the level of 1.7330 (Fibonacci expansion 161.8%),

Fibonacci Pivot Points:

Resistance levels:

R1: 1.6720

R2: 1.6790

R3: 1.6905

Support levels:

S1: 1.6485

S2: 1.6415

S3: 1.6295

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

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Gold analysis for January 14, 2016

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Overview:

Since our last analysis, gold has been trading upwards. The price tested the level of $1,095.30. 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. According to the M30 time frame, the trend dynamic changed from upward to downward. The price rejected our 200 SMA and marked a potential end of the upward correction. We placed Fibonacci expansion to find a potential intraday target and got Fibonacci expansion 161.8% at the level of $1,076.00. 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. The potential breakout of the level of $1,046.00 will confirm short-term continuation of a downward trend.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,095.90

R2: 1,099.15

R3: 1,104.40

Support levels:

S1: 1,085.35

S2: 1,082.00

S3: 1,076.80

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

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Technical analysis of AUD/USD for January 14, 2016

AUD/USD has been moving within the slightly ascending channel, but yesterday the price broke below showing potential weakness of the pair.

After the breakout, the price corrected back to retest the breakout point and rejected the 38.2% Fibonacci retracement level at the same time. While the final channel breakout target is not reached at S1, a trend should remain downward.

Consider selling AUD/USD anywhere between the current level and R1 (0.6960) resistance, targeting 0% fibs in the S1 (0.6875) area. The stop loss should be placed just above today's high of 0.6973.

Support: 0.6875

Resistance: 0.6960

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Technical analysis of USD/CHF for January 14, 2016

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Trading recommendations:

  • The resistance of the USD/CHF pair has already been set at 1.0120. Moreover, the double top stands at the level of 1.0125. Thus, we expect a range of 86 pips today because usually the last day of the week shows high volatility. Therefore, it will be quite profitable to sell below this level (1.0120) for retesting this level in the short term. Hence, sell deals are recommended below the level of 1.0120 with targets at 0.9992 (the level of 0.9992 is representing the first support). Additionally, the descending movement will probably be lower than the 0.9913 level with the target at the double bottom. The double bottom is at the level of 0.9913 and also coincides with the major support.

Intraday technical levels:

Date:14/01/2016

Pair: USD/CHF

  • R3: 1.0158
  • R2: 1.0125
  • R1: 1.0075
  • PP: 1.0042
  • S1: 0.9992
  • S2: 0.9959
  • S3: 0.9909
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Technical analysis of EUR/USD for January 14, 2016

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Overview:

  • The EEUR/USD pair has rebounded from the minor support at the level of 1.0860, and it is now approaching its resistance in order to test it in the area of 1.0010. Additionally, the level of 1.0991 represents the double top in the H1 chart. Another thought, the weekly pivot point sets at 1.0860 for that this area will act as minor support today. Consequently, the range of the EUR/USD pair will be around 150 pips in coming days. So depending on previous events, the EUR/USD pair will move between the levels of 1.0860 and 1.1010. Therefore, it will probably start upside movement at 1.0900 and recovery again. Thereupon, it will be a good sign to buy at this spot with the first target at 1.0900 and second target at the level of 1.0991 to form the double top and continue towards 1.1010 (it should be noted that this level will form the weekly resistance 1) tomorrow. On the other hand, in case of a break of 1.0860, a good place for stop loss will be below 1.0845.
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NZD/USD intraday technical levels and trading recommendations for January 14, 2016

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On December 30, significant bearish rejection existed around the level of 0.6840 (daily resistance level) similar to what happened previously on October 23.

Moreover, a daily closure below 0.6750 allowed a quick bearish decline to occur initially towards the level of 0.6500, which was broken-down as well.

The depicted chart illustrates a double-top reversal pattern. The depicted support level at 0.6430 should be broken-down in order to confirm the reversal pattern.

However, traders should note that the level of 0.6430 constitutes a significant support level which corresponds to the backside of the broken downtrend line depicted on the chart. Hence, a strong bullish rejection and a valid buy entry should be expected.

On the other hand, an obvious bearish closure below 0.6430 opens the way towards 0.6250 where multiple previous bottoms are located.

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USD/CAD intraday technical levels and trading recommendations for January 14, 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.

A daily fixation above 1.3400 enhanced the bullish side of the market.

A bullish visit to the next resistance level of 1.4150 (Fibonacci Expansion 100%) was expected to take place. A temporary bullish fixation above 1.4150 is being manifested on the daily chart.

Note that bullish persistence above 1.4150 enhances the bullish side of the market towards 1.4600-1.4650 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:

Risky traders can wait for a bearish engulfing candlestick closure below the level of 1.4100 (Fibonacci Expansion 100%) to sell the USD/CAD pair.

On the other hand, conservative traders should wait for the USD/CAD pair to retrace towards the zone around 1.3400 looking for a low-risk buy entry. S/L should be placed below 1.3300. Initial T/P levels should be placed at 1.3500 and 1.3600.

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Intraday technical levels and trading recommendations for GBP/USD for January 14, 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 opened the way towards 1.4620 which was broken-down as well.

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

On the other hand, another bullish closure above 1.4610 brings bullish strength into the market again. 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 downwards 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 a further bearish decline towards 1.4680 and 1.4610 where previous prominent bottoms are located on the GBP/USD daily chart.

Currently, the GBP/USD pair 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 14, 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.

An April candlestick came as bullish engulfing one. However, next monthly candlesticks (August, September, October, and November) reflected strong bearish pressure extending 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 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.

During the last few weeks, the price level of 1.1000 was considered a significant supply level to offer a valid sell entry, and it has already done.

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

Previously, a bearish closure below 1.0800 (the reversal pattern neckline) confirmed the depicted reversal pattern. An estimated bearish target is located at 1.0620.

Today, 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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Global macro overview for 14/01/2016

Global macro overview for 14/01/2016:

Data on the Australian labor market was released overnight and it was mostly better than expected. Australia's unemployment rate remained steady at 5.8% (5.9% expected) and its economy lost only 1,000 jobs in December (-11 000 expected) according to the Australian Bureau of Statistics. Full-time employment increased by 17,600 in the reported month (41,600 a month earlier), whereas 18,500 part-time jobs were lost following a 29,700 advance in November. The data shows that the Australian labor market performed quite well during last two years despite the slowdown in the mining industry and the unemployment rate is still below the 6.5% projection made by Reserve Bank of Australia earlier last year.

The AUD/USD pair is still sliding towards the long-term support at the level of 0.6908. There are no signs of a trend reversal yet.

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Daily analysis of major pairs for January 14, 2016

EUR/USD: The situation in the EUR/USD pair requires some tact at present. The movement in the market have been transitory and unreliable, but the price is very likely to go upwards reaching the resistance line at 1.0950. This expectation would make sense as long as the price is unable to go below the support line of 1.0800.

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USD/CHF: It is still possible that this currency pair would go further upwards. The EMA 11 is above the EMA 56, while the Williams' % Range period 20 is in the overbought region. Unless the CHF experience lots of stamina, the USD/CHF pair could be seen making further bullish efforts from here. There is a resistance level at 1.0100, which has been tested and could be retested.

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GBP/USD: Long trades are not recommended in this market, unless the price goes upwards by at least, 300 pips. This is the only action that could harbinger the start of a new bullish bias; otherwise, rallies ought to be seen as good chances to go short, because the outlook for the market is bearish.

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USD/JPY: The USD/JPY pair has consolidated so far this week. The consolidation is taking place in the context of a downtrend, and when a breakout occurs, it is more likely to be in favor of bears. This expectation would be rational as long as the price does not go above the supply level of 119.50.

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EUR/JPY: This cross consolidated yesterday in the context of an extant bearish outlook. The Bearish Confirmation Pattern in the market is valid, and the price could test the demand zone around 127.00, on condition that there is no upward movement of about 300 pips.

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Global macro overview for 14/01/2016

Global macro overview for 14/01/2016:

The most anticipated economic event of this week is еру UK rate decision and monetary policy summary statement that will be released at 01:00 GMT. Market participants expect the BoE to leave the interest rate at the current level of 0.5% without any further changes in asset purchase facility as well. The first rate hike is nor expected until the middle of this year and economist are even pushing it out further.

The GBP/USD pair has hit 5-year lows and now investors are adjusting their expectations of a rate hike. In the daily time frame, the next support is seen at the level of .4352 and next resistance is seen at the level of 1.4494.

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USDX technical analysis for January 14, 2016

The US dollar index made a small pullback yesterday to just below 99 and held above short-term support of 98.80. The initial rejection in the area of 99.35 came as we expected. But I continue to expect a deeper correction and not a break above 100.

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Blue line - support trend line

The US dollar index is holding above both the Ichimoku cloud and the blue support trend line. A trend remains bullish but I believe we should expect a reversal and a break below the cloud and the trend line. This will give a sell signal with a high probability of reaching 97 and lower.

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In the daily chart, the price remains above the Ichimoku cloud. Support is seen at 98.80. A daily close below that level will be a bearish signal. Next support is seen at the kijun-sen (yellow indicator) at 98.40. The structure of an upward move in the US dollar index is choppy and overlapping since early December. I believe that one more leg down should be expected similar to the decline from 100.50 to 97.20.The material has been provided by InstaForex Company - www.instaforex.com

Gold technical analysis for January 14, 2016

Gold price reached important support of $1,080 and broke out above the downward sloping wedge. It is important for the bullish trend to hold yesterday's lows and break above $1,095 in order to move towards $1,110-20.

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Blue lines - downward sloping wedge

Gold price bounced off the Ichimoku cloud. The price stopped at kijun-sen 4-hour resistance at $1,095. So bulls will need to break resistance at $1,095 in order to regain control. Support is found at $1,080.

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Gold price has bounced off the tenkan-sen support and this is a good sign for bulls. However, bulls will need to break above the weekly kijun-sen (yellow indicator) resistance to move gold prices higher. There is also a very strong probability that gold will move towards the Ichimoku cloud as the stochastic oscillator is turning upwards from oversold levels.The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of EUR/JPY for January 14, 2016

General overview for 14/01/2016:

The outlook for this pair has not really changed much as the wave b purple progression is getting more complex and time-consuming. The target for the potential wave c purple is still at 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 an 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:

Day traders 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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Technical analysis of USD/CAD for January 14, 2016

General overview for 14/01/2016:

The market entered the fifth wave extension cycle that might push the prices higher to complete the cycle. Nevertheless, any violation of the level of 1.4242 would indicate a fifth wave extension invalidation and first clue the top is in place. Please notice the impulsive wave progression has not been completed yet.

1.4382 - Intraday Resistance

1.4355 - WR1

1.4314 - Intraday Support

1.4187 - Technical Support

1.4098 - Weekly Pivot

1.4010 - WS1

Trading recommendations:

Day traders should refrain from trading this pair and wait for a better opportunity to occur.

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Elliott wave analysis of EUR/NZD for January 14, 2016

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Wave summary:

We have seen the expected rally back to and just above a former high of 1.6841, we still need a firm close above this high to confirm the next rally higher to 1.7205 and even 1.7641 as a close at an 8-hourly basis above 1.6841 will call for an upside acceleration in wave [iii] of iii of 3. This is normally the part of the trend, where the trend is the strongest and becomes almost vertical in its move higher.

In the short term, we will ideally see minor support at 1.6646 protecting the downside, but as we are in the early parts of wave [iii] higher, we must accept a deeper corrective decline towards 1.6515 before the next strong rally higher.

Trading recommendation:

We are long EUR from 1.5810 and will move our stop higher to 1.6350. If you are not long EUR yet, then buy near 1.6515 if possible or upon a break above 1.6829 and use the same stop at 1.6350.

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Elliott wave analysis of EUR/JPY for January 14, 2016

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Wave summary:

The possible triangle we mentioned yesterday is more and more likely to be formed. As we said yesterday, we are still at the very beginning of the process, so a lot can still happen to the corrective pattern. But for now, we will play out the triangle scenario. Once this triangle terminates, a downward thrust is expected for a continuation lower to 126.05 and 125.45.

The short-term resistance is found near 128.80. It will take a break above 129.08 to invalidate the triangle scenario.

Trading recommendation:

We are short EUR from 130.95 and will move our stop to 129.15. If you are not short EUR yet, then sell near 128.80 and use the same stop at 129.15.

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Technical analysis of USD/JPY for January 14, 2016

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USD/JPY is expected to trade in a lower range. Overnight, the US stocks resumed their slide losing over 2%. Consumer discretionary and health care shares declined. The Dow Jones Industrial Average dropped 2.2% to 16151, the S&P 500 lost 2.5% to 1890, while the Nasdaq Composite was down 3.4% to 4526.

Nymex crude oil edged up 4 cents to close at $30.48 a barrel, gold rose 0.6% to $1093 an ounce, while the benchmark 10-year Treasury yield declined further to 2.07% from 2.100% at the previous session.

Meanwhile, the US dollar pared most of its gains against the euro and the yen. EUR/USD increased 0.2% to 1.0873 (day low at 1.0803), and USD/JPY edged up to 117.66 (day high at 118.37) from 117.62. On the other hand, the greenback remained firm against commodity-related currencies with USD/CAD rising another 0.5% to 1.4337 and AUD/USD falling 0.4% to 0.6954. Though the pair broke above the previous key resistance at 118.05, it could only run up to 118.38 before starting its descent. It is currently trading around the lower Bollinger band, while the 20-period (30-minute chart) has crossed below the 50-period one. And the intraday relative strength index is around the over-sold level of 30. The first downside target at 117.20 (a base seen in January 11-12) is in sight, and the break-below of this level could call for a further decline toward 116.75.

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 117.20. A break of that target will move the pair further downwards to 116.75. The pivot point stands at 118.05. 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 118.35 and the second target at 118.60.

Resistance levels: 118.35, 118.60, 119

Support levels: 117.20, 116.75, 116.10

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Technical analysis of USD/CHF for January 14, 2016

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USD/CHF is expected to trade in a higher range as the bias remains bullish. The pair stands firmly above its major support around 1.0020, which should call for a stabilization. Even though, a continuation of the consolidation cannot be ruled out at the current stage, its extension should be limited. To conclude, as long as 1.0020 is not broken, look for a further advance to 1.0105 and 1.0140 after a small pause.

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 1.0105 and the second target at 1.0140. In the alternative scenario, it is recommended to open short positions with the first target at 0.9990, 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 0.9950. The pivot point is at 1.0020.

Resistance levels: 1.0105, 1.0140, 1.0170

Support levels: 0.9990, 0.9950, 0.99

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Technical analysis of NZD/USD for January 14, 2016

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NZD/USD is expected to trade in a lower range . The pair broke below its intraday trading range pattern yesterday, and accelerated on the downside. The 20-period moving average also crossed below the 50-period one, and should act as a strong resistance to push the prices lower. Besides, the relative strength index is badly directed without showing any signals of reversal. To sum up, as long as 0.6540 (our trailing stop loss) is not surpassed, a decline to 0.6450 and 0.6400 should be expected.

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 0.6450. A break of that target will move the pair further downwards to 0.64. The pivot point stands at 0.6540. 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 0.6585 and the second target at 0.6635.

Resistance levels: 0.6585, 0.6635, 0.6675

Support levels: 0.6450, 0.64, 0.6365

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Technical analysis of GBP/JPY for January 14, 2016

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GBP/JPY is expected to trade in a lower range as the key resistance is seen at 170.45. The pair has struck against its key resistance at 170.45 turning down. The 20-period and 50-period moving averages are above the prices now. Furthermore, the relative strength index fell below its neutrality area of 50, which should confirm a bearish reversal. Hence, as long as 170.45 holds on the upside, any rebounds should be limited before a new pullback to 168.50 and 167.35 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 168.50. A break of that target will move the pair further downwards to 167.35. The pivot point stands at 170.45. 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 171.35 and the second target at 172.30.

Resistance levels: 171.35, 172.30, 173.45

Support levels: 168.50, 167.35, 166.25

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Technical analysis of EUR/USD for Januari 14, 2016

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When the European market opens, some economic news on the ECB Monetary Policy Meeting Accounts, Eurogroup Meetings, Spanish 10-y Bond Auction, Italian Industrial Production m/m, and German WPI m/m is due to be released. The US will publish the economic data on the 30-y Bond Auction, Natural Gas Storage, Import Prices m/m, and Unemployment Claims. So amid the reports, EUR/USD will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Breakout BUY Level: 1.0937.

Strong Resistance:1.0931.

Original Resistance: 1.0920.

Inner Sell Area: 1.0909.

Target Inner Area: 1.0884.

Inner Buy Area: 1.0859.

Original Support: 1.0848.

Strong Support: 1.0837.

Breakout SELL Level: 1.0831.

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 14, 2016

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In Asia, Japan will release data on the Prelim Machine Tool Orders y/y, PPI y/y and Core Machinery Orders m/m. The US will unveil some economic data such as 30-y Bond Auction, Natural Gas Storage, Import Prices m/m, and Unemployment Claims. So, there is a strong probability the USD/JPY pair will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Resistance. 3: 118.08.

Resistance. 2: 117.85.

Resistance. 1: 117.62.

Support. 1: 117.34.

Support. 2: 117.11.

Support. 3: 116.88.

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 advisor if you have any doubts.

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

Daily analysis of USDX for January 14, 2016

The Index is still doing a pullback from the resistance level of 99.22, and we can see a bottom around the 200 SMA price zone (98.79 support level). That's why we're with a dynamic support idea over there, in order to re-take the bullish path in a short-term basis. A breakout above the 99.22 level will expose the 99.49 level. MACD indicator is at negative territory.

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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 14, 2016

On H1 chart, GBP/USD is still doing a rebound above the support level of 1.4373, and we're watching very strong resistance around the 1.4464, where it has already formed some fractals that strengthen the bearish bias in a short and mid term basis. 200 SMA is still pointing to the downside and MACD indicator is entering negative territory, so we can expect a decline towards the 1.4309 level.

GBPUSDH1.png

H1 chart's resistance levels: 1.4464 / 1.4555

H1 chart's support levels: 1.4373 / 1.4309

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 1.4373, take profit is at 1.4309, and stop loss is at 1.4437.

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