USD/CAD intraday technical levels and trading recommendations for January 19, 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.

A 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) enhanced the bullish side of the market on December 7.

A bullish visit towards the resistance level of 1.4150 (Fibonacci Expansion 100%) was expected as a result of the bullish breakout above 1.3400.

Bullish persistence above 1.4150 enhanced the bullish side of the market towards 1.4600-1.4650 (141.4% Fibonacci expansion).

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

Trading recommendations:

A valid sell entry can be offered around 1.4650 (141.4% Fibonacci expansion). S/L should be located above 1.4700. Initial T/P levels should be located at 1.4550, 1.4300, and 1.4150.

On the other hand, conservative traders should wait for a bearish engulfing candlestick closure below the level of 1.4100 (Fibonacci Expansion 100%) to sell the USD/CAD pair. S/L should be located above 1.4150.

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NZD/USD intraday technical levels and trading recommendations for January 19, 2016

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On December 30, a significant bearish rejection took place 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 to the downside as well.

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

However, traders should note that the level of 0.6430 constitutes the 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 were expected around the zone of 0.6430-0.6400.

Today, a bullish closure above 0.6490 is mandatory to push the pair towards higher bullish targets.

On the other hand, a bearish daily closure below 0.6400 opened the way towards 0.6250 where multiple previous bottoms were located (a low probability).

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Intraday technical levels and trading recommendations for GBP/USD for January 19, 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 of 1.4950 was expected as a result of the bearish breakdown below 1.5200.

A weekly fixation below 1.4950 opened the way towards 1.4620, which was broken to the downside as well.

Moreover, the previous weekly candlesticks closed below the depicted demand level of 1.4620 and below 1.4360.

Hence, a quick bearish decline was performed towards the next demand zone (1.4360-1.4222) where bullish rejection should be anticipated.

On the other hand, bullish closure above 1.4360 and 1.4610 is mandatory to bring bullish strength into the market again. The first bullish target is seen at 1.4950.

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During 2015, significant bearish rejection has been expressed around 1.5770 and 1.5230 where a bearish Head and Shoulders reversal pattern was formed. 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) favors 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 prominent demand levels at 1.4615 and 1.4360 were previously broken to the downside.

That is why, any signs of bullish rejection around the current demand level at 1.4222 should be considered a valid buy signal.

Trading Recommendation:

Risky traders can have a valid buy entry anywhere around the level of 1.4220. S/L should be located below 1.4150 to minimize our risk.

Initial T/P levels should be located at 1.4360, 1.4440, and 1.4500.

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Intraday technical levels and trading recommendations for EUR/USD for January 19, 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) where bullish recovery was initiated.

April's candlestick came as bullish engulfing one. However, next monthly candlesticks (September, October and November) reflected strong bearish pressure around the level of 1.1450.

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 towards 1.0800 and 1.1000.

During the last few weeks, the level of 1.1000 was considered to be the significant supply level to offer a valid sell entry. Moreover, a Head and Shoulders reversal pattern was established around the mentioned supply level.

The previous bearish closure below 1.0800 (the reversal pattern neckline) confirmed a 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 mandatory to allow more bearish decline to occur towards 1.0730, 1.0620, and 1.0570.

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Technical analysis of GBP/CHF for January 19, 2016

GBP/CHF is sill trading downwards and the downtrend remains intact. The pair is breaking all supports, producing lower highs and lower lows.

After the breakout of the 1.4600 support area, the Fibonacci applied to the first corrective wave up shows that 161.8% and 261.8% support levels were broken, while 361.8% target (S2 1.4160) has not been tested yet. At the same time, the pair has rejected the R1 resistance and the downtrend trend line today.

Consider selling GBP/CHF while the price is near R1 (1.4425) targeting the S2 (1.4160) area. The stop loss should be well above the R2.

Support: 1.4290, 1.4160

Resistance: 1.4425, 1.4510

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EUR/NZD analysis for January 19, 2016

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Overview:

Recently, EUR/NZD has been moving downwards. EUR/NZD is in a bearish corrective phase. The price tested the level of 1.6672. The price has tested the level of 1.6788 in a volume above the average. In the daily time frame, the price is still above all the key MAs: 50SMA,100SMA,150SMA, and 200SMA. In the H1 time frame, I found corrective Fibonacci expansion 100% around the price of 1.6635. The price is testing the 200 SMA according to the H1 time frame. The short-term trend is still upward. Selling EUR/NZD at this stage looks risky. Watch for potential buying opportunities on the dips. Resistance level is seen at 1.7130.

Fibonacci Pivot Points:

Resistance levels:

R1: 1.6985

R2: 1.7040

R3: 1.7130

Support levels:

S1: 1.6805

S2: 1.6750

S3: 1.6660

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

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Gold : analysis for January 19 , 2016

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Overview:

Since our last analysis, gold has been trading downwards. The price tested the level of $1,085.25. In the daily time frame, we can observe a weak a supply bar and rejection from resistance cluster at the level of $1,094.00. Buying at this stage looks risky since the price rejected our strong resistance. The intraday trend is neutral. In the M30 time frame, I found a volume spike (buying climax) and a wide spread of bars. Also, we can observe a broken upward trend line. Buying at this stage looks very risky. An intraday target is set at the level of $1,071.00. Be careful when buying gold at this stage and watch for potential selling opportunities. The key support is found at the level of $1,046.00. A potential breakout of the level of $1,046.00 will confirm the short-term continuation of the downward trend.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,092.00

R2: 1,093.40

R3: 1,095.60

Support levels:

S1: 1,087.50

S2: 1,086.00

S3: 1,083.85

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

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Global macro overview for 19/01/2016

Global macro overview for 19/01/2016:

The UK inflation data has been released early this morning and all of them were better than expected. The consumer price index has rose slightly to the level of 0.1% versus 0.0% last month and the retail price index rose to the level of 0.3% from 0.2% a month before. However, this data favors the BoE 2% inflation projections, they might be a pretty good beginning of inflation picking up. This is why the BoE newest member Gertjan Vlieghe hinted that interest rates may remain lower for longer or even be cut in case a slowdown in Britain's economy intensifies and there is no pressure from inflation readings.

The GBP/USD rose after the data were released, but the downtrend still continues. The next support is seen at the level of 1.4236 and next resistance is seen at the level of 1.4351.

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Global macro overview for 19/01/2016

Global macro overview for 19/01/2016:

The important economic data on the GDP and industrial production was delivered from China overnight. The real GDP decreased to 1.6% q/q (6.8% y/y) from the previous level of 1.8% q/q (6.9% y/y) together with the industrial production ( 5.9% vs. 6.0% expected). The market so far seems to approve this weak data as it indicated that the world's second largest economy continued to slow in 2015. With the GDP hit the lowest levels since 1990, a transition from the manufacturing- and exports-based economy towards more consumption-oriented economy is going rather smooth, but data reliability still remains in question.

The AUD/USD pair has been lifted by the recent Chinese data and it is currently trading just above the daily resistance at the level of 0.6936.

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Technical analysis of USD/CAD for January 19, 2016

General overview for 19/01/2016:

After breaking below yesterday's intraday support, the price has hit the lower channel boundary and now is trying to regain the upside momentum. The market is still trading inside the bullish zone and any breakout above the intraday resistance at the level of 1.4484 would mean a test of the recent local highs.

Support/Resistance:

1.4603 - Local High

1.4484 - Intraday Resistance

1.4415 - Weekly Pivot

1.4419 - Intraday Support

1.4293 - WS1

Trading recommendations:

The sell orders recommended yesterday should still be kept open with SL just above the level of 1.4484. TP is still open now.

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Technical analysis of EUR/JPY for January 19, 2016

General overview for 19/01/2016:

The market is still trading inside the range zone and it dose not look impulsively bullish now. This cycle might get even more complex and time-consuming as it develops into more complex corrective structure. An upside breakout is still expected, but any new local low below the level of 126.78 would immediately invalidate this view increasing the odds for more downside pressure.

Support/Resistance:

126.37 - WS2

126.84 - WS1

126.78 - Technical Support

127.29 - Intraday Support

127.78 - Weekly Pivot

128.29 - WR1

129.07 - Intraday Resistance

129.25 - WR2

129.61 - Wave c Target Projection

Trading recommendations:

Day traders should consider placing buy orders from current market levels with SL below the level of 127.29 and TP at the level of 129.61.

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USDX technical analysis for January 19, 2016

The US dollar index continues to trade above support at 98.80, but I believe it is forming a bearish wedge. We could see a higher high today or tomorrow, but I expect this pattern to be broken downwards towards 97.

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Blue line -medium-term trend line support

Red lines - bullish channel

In the short-term, prices are held above both the cloud and trend-line support. The bullish channel we are in is well defined, so a close below 98.70 will be a clear confirmation of bearish reversal. This will imply 97 will have high chances to be tested.

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Blue lines - bearish wedge

The daily chart shows a bearish wedge pattern which is being formed just above daily cloud support at 98.80. If this support fails to hold, we should expect the price to test support at 98.40 initially and then most probably move even lower. I am bearish on the US dollar as long as we are below 100.50.

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Gold technical analysis for January 19, 2016

Gold price managed to close above weekly support last week, and there are signs that it can move towards $1,120. Gold is headed towards higher highs and higher lows confirming the bullish trend.

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Red lines - bullish channel

Green rectangle - target area

Gold price is trying to break above the short-term Ichimoku cloud resistance at $1,098. As long as the price holds above the lower red line of the bullish channel, bulls are in control of the trend with the most probable target at $1,120.

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On a weekly basis, the price is trapped between the kijun- and tenkan-sen indicators. Support was held last week and gold seems now to be going to test the kijun-sen once again. I expect the yellow metal to move higher towards $1,120 this week.The material has been provided by InstaForex Company - www.instaforex.com

Elliott wave analysis of EUR/NZD for January 19, 2016

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Wave summary:

We are still looking for even more upside acceleration here. In the short term, a breakout above minor resistance at 1.7060 will call for the next impulsive rally higher towards 1.7300. Ideally, a breakout above the red channel resistance line will confirm the expected acceleration higher towards 1.7641 and 1.8021.

Support is now found at 1.6800 and more importantly at 1.6700.

Trading recommendation:

We are long EUR from 1.5810 with stop placed at 1.6640. If you are not long EUR yet, then buy near 1.6800 or upon a breakout above 1.7060 and use the same stop at 1.6640, but get ready to move it higher soon.

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Elliott wave analysis of EUR/JPY for January 19, 2016

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Wave summary:

No changes are observed here.

The triangle consolidation that we have been tracking for the last couple of days is still unfolding, but we are in the final part of this triangle now. We are watching for a minor rally in wave-e to 128.21 or maybe even slightly higher to 128.40. But once this triangle consolidation is over, a downside thrust towards 126.05 and 125.45 is expected.

The top of wave-c at 128.75 should not be broken.

Trading recommendation;

We are long EUR from 130.95 and will move our stop lower to 128.80. If you are not short EUR yet, then sell near 128.20 and use the same stop at 128.80.

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Technical analysis of EUR/JPY for January 19, 2016.

Technical outlook and chart setups:

TThe EUR/JPY pair might be forming a base around levels of 127.90/128.00 now before resuming its rally towards at least 134.50. Also note that the pair has found support at Fibonacci 0.88 levels, of an entire rally between 126.00 and 141.00 respectively. The bullish reversal here would still keep the wave structure intact and the pair could resume uptrend. Immediate support is found at 126.00, while resistance is seen at 132.50 followed by 134.50 and higher levels. Bulls are expected to remain in control until prices stay above 126.00.

Trading recommendations:

Remain long from here with stop at 126.00, a target is open.

Good luck!

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Technical analysis of GBP/CHF for January 19, 2016

Technical outlook and chart setups:

The GBP/CHF pair produced an indecision candlestick pattern on the daily chart at yesterda's close (1.4315/17). The pair is more likely to rally higher today producing a bullish morning star reversal candlestick pattern. Please note that we expect a a rally keeping in account two probable trade counts here. The pair was dropping all the way from 1.5570 and a pullback can take place any moment now. The pair has found support at Fibonacci 0.786 levels and can resume its trend. In either count, there is a high probability that a rally from current levels to a low of 1.3850 occurs. Immediate support is seen at 1.4136, while resistance is seen at 1.4600.

Trading recommendations:

Remain long now, stop is below 1.4200, a target is open.

Good luck!

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Technical analysis of Gold for January 19, 2016

Technical outlook and chart setups:

Gold is trading around the levels of $1,089.80/90 after reaching a lows of $1,085.00. The yellow metal might drop to the level of $1,080.50, which is Fibonacci 0.618 support as depicted in the chart before rallying further towards fresh highs. Please note that the upside extensions remain intact towards $1,125.00 and $1,136.00. Immediate support is seen at the level of $1,081.50 followed by $1,071.00 and lower, while resistance is seen at $1,108.00 followed by $1,113.00 and higher. Bulls should be poised to remain in control until prices stay broadly above $1,071.00.

Trading recommendations:

Remain 50% long now around $1,081.50/84.50, stop is at $1,170.00, a target is open.

Good luck!

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Technical analysis of Silver for January 19, 2016.

Technical outlook and chart setups:

Silver is now preparing for an extended rally through the levels of $14.30/50. The metal is producing an engulfing bullish candlestick pattern on the H4 chart indicating potential reversal. Please note that the metal has been confined into a cone type consolidation pattern since several trading sessions looking for an opportunity to break out above $14.30 this time. Also, the metal is expected to accelerate moving upside once it breaks out of the resistance line shown here. Immediate support is seen at $13.70/75, while resistance is seen at $14.30. Bulls should be poised to remain in control until prices stay broadly above $13.65.

Trading recommendations:

Remain long, stop is at $13.65, a target is at $14.40/60 and $15.00.

Good luck!

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Technical analysis of EUR/USD for Januari 19, 2016

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When the European market opens, economic news on the Final Core CPI y/y, ZEW Economic Sentiment, Final CPI y/y, German ZEW Economic Sentiment, Current Account, and German Final CPI m/m is due to be released. The US will deliver the economic data on TIC Long-Term Purchases and NAHB Housing Market Index. So amid the reports, EUR/USD will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Breakout BUY Level: 1.0935.

Strong Resistance:1.0929.

Original Resistance: 1.0918.

Inner Sell Area: 1.0907.

Target Inner Area: 1.0882.

Inner Buy Area: 1.0857.

Original Support: 1.0846.

Strong Support: 1.0835.

Breakout SELL Level: 1.0829.

Disclaimer: Trading Forex (foreign exchange) on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

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Technical analysis of USD/JPY for Januari 19, 2016

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In Asia, Japan will not release any economic data, but the US will reveal some economic data on TIC Long-Term Purchases and NAHB Housing Market Index. So, there is a strong probability that the USD/JPY pair will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Resistance. 3: 118.17.

Resistance. 2: 117.94.

Resistance. 1: 117.71.

Support. 1: 117.42.

Support. 2: 117.19.

Support. 3: 116.96.

Disclaimer: Trading Forex (foreign exchange) on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

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Daily analysis of major pairs for January 19, 2016

EUR/USD: The condition affecting the EUR/USD pair is quite similar to the condition affecting the USD/CHF. So these two pairs must be watched closely. Just like the latter, the bias is likely to be neutral in the near term.

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USD/CHF: The bias is neutral in the near-term because the pair has not made any strong directional movement. There are short-term upswings and downswings in the market, but a predictable directional movement is anticipated this week or next week, which would most probably favor bears.

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GBP/USD: This currency trading instrument traded lower on Monday still showing a serious determination to a further trend downwards. In this market, long trades should not be opened; plus any rallies seen here should become selling opportunities unless a rally pushes the price upwards by at least 300 pips. This is the only situation that can threaten the bearish bias.

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USD/JPY: USD/JPY was moving sideways on Monday. Our outlook on the market is still bearish (just as the case is on most other JPY pairs). The price is likely to continue trending further downwards this week reaching the demand levels of 116.00 and 115.50.

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EUR/JPY: The EUR/JPY pair moved simply sideways on Monday. The bias is bearish in the near term and we may see a breakout to the upside or the downside today owing to the expected fundamental figures, which might have impact on the markets. The events affecting the euro would surely effect this cross.

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Technical analysis of USD/CAD for January 19, 2016

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Overview:

  • The USD/CAD pair is going to call for an uptrend market this week because the price will probably be trapped between the levels of 1.4480 and 1.4705 in order to form a range of 225 pips (at least). The support is found at the level of 1.4385 (the weekly pivot point). Therefore, bulls are going to buy above the level of 1.4480 with the first target at 1.4606. So, the trend will call for a bullish market at the level of 1.4702 since there is a strong bullish channel. Additionally, it should be noted that the trend has been calling for a strong bullish market since last month and moved up by 500 pips last week. We expect the USD/CAD pair to continue towards the weekly resistance 1 around the area of 1.4705.

Forecast:

  • Buy above the spot of 1.4480 (a major support sets at 1.4385) with the targets of 1.4606 and 1.4702. However, the stop loss should be placed at 1.4366.
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Technical analysis of NZD/USD for January 19, 2016

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Overview:

  • The NZD/USD pair broke the support level and turned to resistance at the same key level (0.6496). So, resistance has already set at the level of 0.6496 and the double top has been set at the same level. Equally important, the trend saw the bearish market and the the price was hovering below the resistance for three days. We expect a range of 115 pips today. As expected, the price is going to move between 0.6496 and 0.6381. Therefore, the NZD/USD pair started showing the signs of a bearish market from the spot of 0.6496. Consequently, the market indicates a bearish opportunity at the level of 0.6496 with the first target at 0.6414, which continues towards the level of 0.6381 with a view to test the double bottom. It should be noted that the level of 0.6381 represents strong support today. Consequently, the pair is going to form strong support at the level of 0.6381. 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 level of 0.6535.

Intraday technical levels:

  • R3: 0.6584
  • R2: 0.6530
  • R1: 0.6495
  • PP: 0.6451
  • S1: 1.0874
  • S2: 0.6414
  • S3: 0.6381

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Daily analysis of USDX for January 19, 2016

The H1 chart shows that USDX is consolidating above the 200 SMA and the bullish outlook remains unchanged, as the index is trying to break the resistance level at 99.22. It would also break the range where the US dollar has been trapped for several sessions in this month. The MACD indicator is entering negative territory, so be cautious when trading in the long-side below the 99.22 level.

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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.

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Daily analysis of GBP/USD for January 19, 2016

The pair showed little movement on Monday in quiet dealing due to the holiday in the United States. Nevetheless, the tone is still bearish and the 200 SMA is pointing to the downside at H1 chart, so our outlook suggests further decline. The next support is located at 1.4198 and a break below this level will expose GBP/USD to test the 1.4080 level.

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H1 chart's resistance levels: 1.4309 / 1.4373

H1 chart's support levels: 1.4198 / 1.4080

Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if GBP/USD breaks a bearish candlestick; the support level is at 1.4198, take profit is at 1.4080, and stop loss is at 1.4309.

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Daily analysis of GBP/JPY for January 18, 2016

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Overview

Decline in GBP/JPY continued last week and accelerated to as low as 166.23. Initial bias remains on the downside this week for the long-term Fibonacci level at 165.67 first. A break will target 161.8% projection of 195.86 to 180.36 from 188.79 at 163.71. On the upside, breaks above the minor resistance at 170.57 will turn bias neutral and bring consolidation first. In the longer-term picture, the uptrend from the long-term bottom of 116.83 should have already 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.

Daily Pivots: (S1) 165.12; (P) 167.84; (R1) 169.44

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Daily analysis of Silver for January 18, 2016

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Overview

The silver price hovers around the EMA50 that meets the 13.96 level now. The price is still inside the sideways range shown on the chart, waiting to breach one of its lines represented by the 13.65 support and 14.25 resistance in order to detect the next track clearly. We remind you that a break of the mentioned support will push the price to visit the 13.00 level as the next main station, while breaching the resistance represents the key of starting bullish correction with targets beginning at 14.67 and extending to 15.30. The silver price shows more fluctuations around the 13.96 level, while stochastic moves at neutral areas now to keep the price within the sideways range 13.65 support to 14.25 resistance. Breaching one of these levels is required to detect the next track clearly. Breaching the 14.25 level will lead the price to start bullish correction that targets 14.67 followed by 15.30 levels mainly, while breaking the 13.65 support will push trading towards 13.00 initially. The expected trading range for today is between 13.65 support and 14.25 resistance.

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

USD/CAD intraday technical levels and trading recommendations for January 18, 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.

A 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) enhanced the bullish side of the market on December 7.

A bullish visit towards the resistance level at 1.4150 (Fibonacci Expansion 100%) was expected as a result of the bullish breakout above 1.3400.

Bullish persistence above 1.4150 enhanced the bullish side of the market towards 1.4600-1.4650 (141.4% Fibonacci expansion).

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

Trading recommendations:

A valid sell entry can be offered around 1.4650 (141.4% Fibonacci expansion). S/L should be located above 1.4700.

Initial T/P levels should be located at 1.4550, 1.4300, and 1.4150.

On the other hand, conservative traders should wait for bearish engulfing candlestick closure below the level of 1.4100 (Fibonacci Expansion 100%) to sell the USD/CAD pair. S/L should be located above 1.4150.

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