Technical analysis of USD/JPY for January 28, 2016

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USD/JPY is expected to trade with a bullish bias above 118.35. Overnight, the US stock indices closed lower after the US Federal Reserve left interest rates unchanged saying: "The committee is closely monitoring global economic and financial developments and is assessing their implications for the labor market and inflation." The Dow Jones Industrial Average slid 1.4% to 15944, the S&P 500 lost 1.1% to 1882, while the Nasdaq Composite was down 2.2% to 4468.

Nymex crude oil gained another 2.7% to $32.30 a barrel, gold increased 0.5% to $1125 an ounce, while the benchmark 10-year Treasury yield edged up to 2.003% from 1.996% at the previous session.

Meanwhile, the U.S. dollar cannot benefit from the Fed's release, which did not cut uncertainty about another rate hike in March. EUR/USD rose 0.2% to 1.0891, AUD/USD gained 0.3% to 0.7025, and USD/CAD was down 0.2% to 1.4091. Meanwhile, GBP/USD fell 0.8% to 1.4229.

NZD/USD plunged 1.0% to 0.6430 as New Zealand's central bank maintained the official cash rate unchanged at 2.50% (as expected) saying: "Some further policy easing may be required over the coming year to ensure that future average inflation settles near the middle of the target range." The pair ran up to 119.07 before entering a consolidation zone. Currently it is trading above the key support level of 118.35. The 20-period (30-minute chart) moving average remains above the 50-period one, while the relative strength index is around the neutrality level of 50. As long as 118.15 holds as the key support, the intraday outlook stays bullish and the pair should challenge again the first upside target at 119.15.

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, long positions are recommended with the first target at 119.15 and the second target at 119.50. In the alternative scenario, short positions are recommended with the first target at 118 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 117.60. The pivot point is at 118.35.

Resistance levels: 119.15, 119.50, 119.85

Support levels: 118, 117.60, 117.20

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Technical analysis of USD/CHF for January 28, 2016

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USD/CHF is expected to consolidate. The pair remains under pressure below the resistance level of 1.0185. It is likely to consolidate. The relative strength index is mixed to bearish below its neutrality area of 50. Furthermore, the key moving averages are turning down as well. Hence, below 1.0185 (a key horizontal resistance), expect a return to 1.0085 and 1.0050.

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 1.0215. A break of that target will move the pair further downwards to 1.0250. The pivot point stands at 1.0185. In case the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, long positions are recommended with the first target at 1.0085 and the second target at 1.0050.

Resistance levels: 1.0215, 1.0250, 1.0295

Support levels: 1.0085, 1.0050,1.0030

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NZD/USD intraday technical levels and trading recommendations for January 28, 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 daily chart illustrates a double-top reversal pattern. An obvious bearish breakdown of the depicted support level at 0.6400 should be executed in order to confirm the reversal pattern.

However, the levels of 0.6400-0.6350 constituted a significant support zone, which corresponded to the backside of a broken downtrend line. Hence, a strong bullish rejection was expressed on January 20.

Last week, bullish persistence above 0.6500 was mandatory to keep pushing the NZD/USD pair towards higher bullish targets.

However, on Friday, a lower high has been expressed off the price level of 0.6530. This enhanced the bearish side of the market and brought the NZD/USD pair towards the depicted support level of 0.6400 again.

Yesterday, the depicted support level of 0.6400 acted as a prominent key level, which offered a valid buy entry as expected. The suggested position is running in profits now. S/L should be moved to 0.6400 to secure some profits.

Bullish persistence above 0.6500 is currently needed to keep moving towards higher bullish targets. An initial target is located at 0.6590.

Otherwise, a bearish closure below 0.6500 brings another bearish pullback towards 0.6430 and 0.6370 (which is less probable).

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Technical analysis of NZD/USD for January 28, 2016

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NZD/USD is turning down. The pair has accelerated its slide after breaking below the 20-period and 50-period moving averages, both of which have turned downward and should act as resistance. The relative strength index has just broken below its key level of 30 ("oversold"), but has not yet displayed any reversal signals. As long as 0.6530 holds on the upside, look for a further decline to 0.6465 and 0.6410.

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 0.6455. A break of that target will move the pair further downwards to 0.6410. The pivot point stands at 0.6530. 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 0.6550 and the second target at 0.6580.

Resistance levels: 0.6550, 0.6580, 0.6610

Support levels: 0.6455, 0.6410, 0.6375

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USD/CAD intraday technical levels and trading recommendations for January 28, 2016

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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 significant bearish rejection was observed around 1.3450. Hence, another consolidation range was established between 1.3450 down to 1.2800.

On December 7, a bullish breakout above 1.3450 (the upper limit of the recent consolidation range) enhanced the bullish side of the market. Hence, a bullish visit towards the resistance level of 1.4150 (Fibonacci Expansion 100%) was executed.

Bullish persistence above 1.4150 enhanced the bullish side of the market towards 1.4600 (141.4% Fibonacci expansion) where evident bearish rejection was expected (a bearish engulfing weekly candlestick).

The level of 1.4100 (Fibonacci Expansion 100%) remains the significant key level to be watched for price reaction during the current week's consolidations.

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 the current bearish momentum persists below the mentioned key level (1.4100).

Trading recommendations:

As we expected, a valid sell entry was offered around 1.4650 (141.4% Fibonacci expansion). It is already running in profits.

S/L should now be lowered to 1.4200 to secure our profits, while the next T/P level remains projected at 1.3800 if USD/CAD bears maintain enough bearish momentum below 1.4100 (Fibonacci Expansion 100%) and 1.4000 (Recent Weekly Support).

On the other hand, conservative traders should wait for a bearish pullback towards the price zone of 1.3370-1.3400 where a valid BUY entry can be offered.

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Technical analysis of GBP/JPY for January 28, 2016

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GBP/JPY is expected to trade with bullish bias. The pair is well supported by its rising 20-period moving average, which stays above the 50-period one. Meanwhile, the relative strength index lacks downward momentum. Further upside is therefore expected with the next horizontal resistance and overlap set at 71.35 at first. A break above this level would call for further advance towards 172.20 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, long positions are recommended with the first target at 171.35 and the second target at 172.20. In the alternative scenario, short positions are recommended with the first target at 168.05 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 167. The pivot point is at 168.80.

Resistance levels: 171.35, 172, 172.30

Support levels: 168.05, 167, 166.05

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EUR/NZD analysis for January 28, 2016

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Overview:

Recently, EUR/NZD has been moving upwards. The price tested the level of 1.7003 in a very high volume. In the daily time frame, we can observe a strong bullish bar in a high volume. In the H4 time frame, the price has broken the point of control zone and we may expect further upward movement. The price is well above all key MA`s (50SMA, 100SMA, 150SMA, and 200 SMA). In lower time frames, I found a change in the trend dynamic from downward to upward. Watch for potential buying opportunities at dips. The first take profit zone is set at the price of 1.7260 (previous swing high).

Fibonacci Pivot Points:

Resistance levels:

R1: 1.7000

R2: 1.7085

R3: 1.7225

Support levels:

S1: 1.6720

S2: 1.6630

S3: 1.6496

Trading recommendations: The intraday trend is upward. Watch for potential buying opportunities.

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Gold : analysis for January 28 , 2016

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Overview:

Since our last analysis, gold has been trading upwards. As I anticipated, the price tested the level of $1,127.87 in a high volume. An intraday short-term trend is upward. The price broke our resistance level of $1.111.50 and I found successful re-test, which is a sign that we may see further upward movements. Also. the pair is trading well above all key MA`s (SMA 50,100,150,200) according to the H4 time frame. The take-profit zone is established around the level of $1,134.00 (Fibonacci retracement 61.8%, daily SMA 200). Watch for buying opportunities on dips.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,125.85

R2: 1,128.20

R3: 1,131.90

Support levels:

S1: 1,118.20

S2: 1,115.19

S3: 1,112.15

Trading recommendations:Trading recommendations: watch for potential buying opportunities on dips.

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Intraday technical levels and trading recommendations for GBP/USD for January 28, 2016

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Few months ago, the market was pushed above the depicted weekly level at 1.5550 trying to reach the zone of 1.5900. That's where the depicted Head and Shoulders pattern was formed.

On November 2015, a bearish engulfing weekly candlestick closed below the level of 1.5200 (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 breakout below 1.5200.

Extensive bearish pressure has been applied against the demand levels of 1.4620 and 1.4360. Both of them were broken to the downside.

Shortly after, the GBP/USD pair has moved below 1.4220, evident signs of bullish recovery have been expressed around 1.4075. This resulted in the hammer weekly candlestick which closed above 1.4220 indicating extensive bullish rejection.

That is why, the zone of 1.4360-1.4220 remains a significant demand zone for the GBP/USD pair.

Bullish persistence above 1.4220 and 1.4360 is mandatory to maintain enough bullish strength in the market. The first bullish target is seen at 1.4615.

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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 formed. Since then, the market has been trending downwards within the depicted bearish channel.

Few weeks ago, the level of 1.4950 was broken to the downside, constituting a significant supply level.

Daily persistence below 1.4800 (the lower limit of the depicted bearish channel) favored a 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 moving further below the prominent demand levels of 1.4620 and 1.4360.

That is why, any signs of bullish rejection around the demand level of 1.4220 should be considered a valid buy signal.

Bullish persistence above 1.4360 is mandatory to maintain enough bullish strength in the market. The first bullish target is projected towards 1.4615.

Trading Recommendation:

In our previous articles, traders were advised to take a valid buy entry when the GBP/USD pair achieved a daily closure above the level of 1.4220 on Friday. It is already running in profits now.

Initial T/P levels should be located at 1.4360, 1.4440, and 1.4500, while S/L should be advanced to 1.4200 to offset the associated risk.

Those who missed the initial trade can have another buy entry when the GBP/USD pair achieves a bullish closure above 1.4360. T/P levels would be located at 1.4440, 1.4500, and 1.4600.

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Intraday technical levels and trading recommendations for EUR/USD for January 28, 2016

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On January 2015, the EUR/USD pair moved below the major demand levels around 1.2100 and 1.2000 where historical bottoms were previously established back in July 2012 and June 2010. Hence, a long-term bearish target is projected towards 0.9450.

On March 2015, EUR/USD bears challenged the monthly demand level of 1.0570 (established in January 1997). One month later, strong bullish recovery was observed around the mentioned demand level.

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

As mentioned above, the long-term projected target is still seen at 0.9450 if the current monthly candlestick closes below the depicted demand level of 1.0570.

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On August 2015, 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 produced significant bearish pressure.

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.

On November 2015, daily persistence below the level of 1.0800 (a prominent key level) ensured enough bearish momentum towards 1.0550 (a monthly demand 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 valid sell entries. Moreover, a Head and Shoulders reversal pattern was executed as depicted on the chart.

The previous 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 more bearish decline to occur towards 1.0730, 1.0620, and 1.0570.

On the other hand, bullish persistence above 1.0830 hinders further bearish decline. Hence, a bullish pullback towards 1.1000 would be expected.

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Technical analysis of GBP/USD for January 28, 2016

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Overview:

  • The weekly pivot point of the GBP/USD pair sets at the level of 1.4236 for that the support is found at the same level this week. According to the previous events, the price is still moving between 1.4236 and 1.4393. It also should be noted that a range about 157 pips is expected today. Consequently, the trend is calling for a bullish market above the level of 1.4236. Therefore, buy deals are recommended above 1.4236 with a target at 1.4393. Moreover, the resistance is seen at the level of 1.4393. If the trend manages to break the weekly resistance 1 at the level of 1.4393. Then, buy above 1.4393 again looking for further upside move with targets at 1.4428, 1.4475, and 1.4520 in order to test the major resistances this week. On the other hand, the descending movement will probably be lower than 1.4236 with initial targets at 1.4171 and 1.4109.

Intraday technical levels:

  • R3: 1.4449
  • R2: 1.4402
  • R1: 1.4323
  • PP: 1.4276
  • S1: 1.4197
  • S2: 1.4150
  • S3: 1.4071
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Technical analysis of USD/CHF for January 28, 2016

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Overview:

  • The USD/CHF pair will probably form a strong support at the level of 1.1056; because the trend is still above a ratio of 50% Fibonacci retracement in the H4 chart. From this point, the trend will continue its bullish movement above the area of 1.0056. Also, it should be noted that the level of 1.0120 acts as minor support. Moreover, the daily pivot point has placed at the same level of 1.0120.
  • Right now, the price sets at 1.0140 for that we expect the saturation to take place around 1.0120 (resistance became support). Therefore, the market is likely to start showing bullish signs. In other words, buy deals are recommended above the level of 1.0120 with the first target seen at 1.0211 and further at 1.0263. However, the stop loss should be placed at 0.9970.

Intraday technical levels:

  • Projected high: 1.0327
  • Breakout (buy stop): 1.0211
  • Current pivot: 1.0120
  • Breakout (sell stop): 0.9992
  • Projected low: 0.9785
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Global macro overview for 28/01/2016

Global macro overview for 28/01/2016:

After four rate cuts in 2015, the Reserve Bank of New Zealand decided to hold the official cash rate at the level of 2.5% yesterday, but in the statement the RBNZ said it still can cut the rate soon due to the slower global economy growth (particularly relating to China) and dropping oil prices. The last RBNZ cut in December 2015 had set the interest rates at the level of 2.5%, which is the all-time low. Nevertheless, the RBNZ inflation expectations are targeting the level between 1-3% for this year despite the last week's data showed the annual inflation change eased to just 0.1%, the weakest in more than 15 years. To stimulate its own economy and to meet the inflation targets, the RBNZ will have to cut the rates even further this year.

From the technical point of view, the NZD/USD pair is still moving in the downtrend, however there are some indications of a possible trend change in the daily chart (daily hammer from 20th Jan). Nevertheless, to give us the first sign of real trend reversal, the price must get above the technical resistance at the level of 0.6579 and above the golden trend line as well. Without this kind of price actions, the current rally will be considered just a correction in a longer-term downtrend.

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Elliott wave analysis of EUR/NZD for January 28, 2016

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Wave summary:

Our preferred count shows that we are at an early stage of red wave iii higher towards 1.7641.

In the short term, we are looking for minor support near 1.6769 and more importantly support at 1.6603 to protect the downside for a breakout above resistance of 1.7010 and more importantly resistance of 1.7273 for an expected rally towards 1.7641 and above.

A break below 1.6603 will delay the rally higher.

Trading recommendation:

We are long EUR from 1.6706 and will move our stop higher to 1.6600. If you are not long EUR yet, then buy EUR upon a break above 1.7010 and use the same stop at 1.6600.

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Elliott wave analysis of EUR/JPY for January 28, 2016

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Wave summary:

A corrective rally in wave [iv] we were watching for is extending beyond 129.48. Does that alter our count? Not really, we will just be looking for a push a little higher to the 50% corrective target of wave [iii] at 129.97 before renewed downside pressure is expected. To confirm that wave [iv] is over, we need a breakout below 128.72 to call for a decline to below 126.14 with an ideal downside target at 117.37.

Only an unexpected breakout above the low of wave [i] at 132.39 will invalidate this count.

Trading recommendation:

We sold EUR at 129.00 and will place our stop at 130.25. If you are not short EUR yet, then sell near 129.90 or upon a breakout below support at 128.72 and use the same stop at 130.25

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Global macro overview for 28/01/2016

Global macro overview for 28/01/2016:

The Fed kept the interest rates on hold yesterday, which was in line with expectations. Moreover, in its statement the Fed mentioned that the members were closely watching global economic and financial developments. An important line from the statement was the one regarding the 2% inflation target. The Fed officials acknowledged inflation was estimated to stay "low in the near term" due to continued drop in energy prices; at the same time, growth of the US economy slowed in the end of the last year. No hints were done regarding a possible pace of further rate hikes, but it was mentioned in the statement that the rate hikes would depend on "the economic outlook as informed by incoming data". The conclusions are rather simple to draw: the Fed still thinks the further rate hike is an ongoing, data dependent process which is now on hold due to the low inflation and falling energy prices.

Now let's take a look at what's changed on the US Dollar Index daily chart after the Fed event yesterday. It looks like the market wasn't strong enough to break above the resistance at 99.98 and now it is threatening to break out of the channel and continue lower towards the important support at 97.18. To confirm this scenario, the traders should wait for the daily candle to close on lows.

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USDX technical analysis for January 28, 2016

The US dollar index remains inside an upward sloping wedge pattern. Yesterday, support was tested and prices bounced upwards. I expect the outcome of this pattern to be a bearish breakdown.

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Red lines - upward sloping wedge

The US dollar index is testing the lower channel boundary and the Ichimoku cloud in the 4-hour chart. The price is still in the upward sloping wedge, so we cannot confirm bearish reversal yet. Support is at the critical level of 98.50 and 98.70. Resistance is seen at 99.50 and next at 100.10.

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Blue lines - megaphone pattern

Red lines - upward sloping wedge

The weekly USDX chart contains several points that need to be noted. Apart from the short-term upward sloping wedge (red lines), we have to point out the possible megaphone topping pattern that could give a marginal new higher high, but would sharply reverse. We should not forget that we are still above the weekly cloud, so the long-term trend remains bullish. Weekly tenkan-sen ( red line indicator) is being tested, so as long as the price closes above it, we remain bullish.

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Gold technical analysis for January 28, 2016

Gold price reached our target at the upper channel boundary and reversed. A trend however remains bullish and there are still chances of a move even higher towards $1,150.

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Black lines - bullish channel

Gold price reached the upper channel boundary. The target is achieved. The price remains above the cloud heading towards the important resistance of the 61.80% Fibonacci retracement of a decline from $1,190. Support is found at $1,105-$1,110.

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Black lines - downward sloping wedge

Gold price is still inside the long-term downward sloping wedge and below the Ichimoku cloud. The long-term trend remains bearish. The price broke above the weekly kijun-sen (yellow line indicator) and got rejected. This is normal as this is very important resistance. A weekly closure above the kijun-sen will be a very bullish sign. A rejection here could mean a pull back is coming towards $1,090.

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Technical analysis of EUR/JPY for January 28, 2016

General overview for 28/01/2016:

The pair has finally broken out of a range zone right into the bullish territory. Moreover, the current wave progression to the upside does not look completed as there is still one more wave missing. A target is seen at the level of 130.13, but it might get extended to the level of 130.37 before any meaningful reversal occurs.

Support/Resistance:

126.08 - Higher Time Frame Cycles Invalidation Level

126.95 - WS1

127.75 - Weekly Pivot

128.71 - Intraday Support

129.34 - WR1

129.47 - Intraday Resistance

130.13 - WR2

130.75 - 130.85 - Technical Resistance| Gap |

Trading recommendations:

Day traders should consider buying on dips in this market with SL below the level of 128.71 and TP at the level of 130.13.

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Technical analysis of USD/CAD for January 28, 2016

General overview for 28/01/2016:

A test of the local swing low had been done and now the market might start to break above the golden trend line again. The downward momentum is diminishing and bullish divergence might be seen between the price and momentum oscillator. The next target is seen at the weekly pivot at the level of 1.4272, but first the price must break out of the intraday range zone and head above the intraday resistance.

Support/Resistance:

1.4690 - Swing High

1.4436 - WR1

1.4420 - Technical Resistance

1.4330 - 38%Fibo

1.4325 - Technical Resistance

1.4272 - Weekly Pivot

1.4156 - Intraday Resistance

1.4028 - Intraday Support

Trading recommendations:

For today, day traders should consider placing buy orders if the intraday resistance at the level of 1.4156 is violated. The SL orders should be placed below the level of 1.4028 and TP at the level of 1.4271.

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Technical analysis of GBP/USD for January 28, 2016.

Technical outlook and chart setups:

The GBP/USD pair is trading around 1.4250 after having reached an intermediary high at the level of 1.4370. Bulls will remain in control till prices stay above 1.4100. Also please note that the pair had bounced off the Fibonacci 0.618 support earlier, at the level of 1.4170. It is hence recommended to remain long with risk at 1.4100. Immediate support is seen at 1.4170, while resistance is seen at 1.4350. Furthermore, the support trend line remains intact as depicted on the H4 chart , which is encouraging to bulls.

Trading recommendations:

Remain long with stop at 1.4100, a target is open.

Good luck!

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Technical analysis of USD/CHF for January 28, 2016

Technical outlook and chart setups:

The USD/CHF pair might have completed its counter-trend rally which has been unfolding from 0.9780 since December 15, 2015. The pair is trading around 1.0170 now looking for an opportunity to form a top ahead of 1.0325 and reverse lower. Please also note that the pair is trading within the Fibonacci 0.618 and 0.786 resistance levels. It is hence recommended to initiate 50% short positions with risk around 1.0350. Immediate resistance is seen at 1.0320, while support is seen at 1.0110. Bears should be poised to remain in control till prices stay below 1.0325.

Trading recommendations:

Remain short now, stop is at 1.0350, a target is open.

Good luck!

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Technical analysis of USD/JPY for January 28, 2016.

Technical outlook and chart setups:

The USD/JPY pair has faced resistance around 119.00/10. Please note that 118.85/119.00 is also Fibonacci 0.382 resistance for a drop from 123.50 to 116.00. It is hence recommended to remain short from here with risk around 119.70. Please note that the pair should be heading south below 115.00 at least according to the wave structure. Immediate resistance is seen at 119.70, while support is found at 117.60. Bears should regain control back, till prices remain below 119.00/50 moving forward.

Trading recommendations:

Remain short with stop at 119.80, a target is open.

Good luck!

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Technical analysis of EUR/USD for January 28, 2016

Technical outlook and chart setups:

The EUR/USD pair remained subdued at the levels of 1.0800/1.0900 for several trading sessions now. It is trading around 1.0883/85 looking to retrace lower towards 1.0850 levels, before resuming rally. It is hence recommended to remain flat for now and look to initiate long positions around 1.0840 levels. Please note that the back side of the resistance trend line is also passing through the same levels which would act as support now, Immediate price support is seen at 1.0820, while resistance is seen at 1.0980 respectively. Bulls will remain in control until prices stay broadly above 1.0700.

Trading recommendations:

Buy around 1.0850, stop is at 1.0750, a target is open.

Good luck!

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Technical analysis of EUR/JPY for January 28, 2016

Technical outlook and chart setups:

The EUR/JPY pair has taken out the resistance line at 129.00 as expected and discussed yesterday. Now the pair is trading around the level of 129.60 looking for a way to drop lower in a corrective manner towards 127.50 before resuming its rally. The resistance line, which was broken, is now expected to act as support at the same levels (127.40/50). It is recommended to remain flat and look for an opportunity to initiate long positions at lower levels. Immediate support is seen at 128.20, while resistance is see at 129.45 (interim). Bulls should remain broadly in control until prices stay above 126.00 moving forward.

Trading recommendations:

Remain flat and look for an opportunity to go long again near 127.50.

Good luck!

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Technical analysis of GBP/CHF for January 28, 2016

Technical outlook and chart setups:

The GBP/CHF pair seems to have completed its first wave of a 3-waves corrective drop expected towards the level of 1.4320. The pair is now expected to rally towards 1.4550/60 (wave 2) from here before reversing lower again. Also note that the pair is bouncing off the Fibonacci 0.382 support now. A temporary rally is expected. It is recommended to initiate fresh short positions around the level of 1.4550/60 with risk around 1.4660. Immediate interim support is found at 1.4420 followed by 1.4320, while resistance is seen at 1.4640/50. Bulls should be looking for an opportunity to resume the previous rally after a drop towards 1.4320.

Trading recommendations:

Initiate fresh shorts at 1.4550, stop at 1.4650, a target is at 1.4330. Then go long.

Good luck!

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Technical analysis of Gold for January 28, 2016

Technical outlook and chart setups:

Gold pushed higher and finally hit its initial extension at $1,125.00 seen in the H4 chart. The metal is correcting lower now looking for an opportunity to form a base around $1,110.00/11.00 and up to $1,106.00 before resuming its rally. Please note that the yellow metal is poised to push through $1,136.00, if not further. It is hence recommended to take some profits now and buy again at lower levels mentioned above. Immediate support is seen at $1,110.00, while resistance is seen at $1,127.00/30.00. Please note that the metal has been holding the trend line support as well.

Trading recommendations:

Book partial profits and look for an opportunity to add further around the level of $1,110.00 with stop at $1,092.00. A target is at $1,136.00.

Good luck!

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

Technical analysis of Silver for January 28, 2016

Technical outlook and chart setups:

Silver has broken out of the consolidation zone and managed to reach fresh highs at the level of $14.50/60 before pulling back. The metal is trading around $14.44 now looking for an opportunity to test the consolidation resistance line, which is support now, around $14.30 as depicted on the H4 chart. It is hence recommended to remain flat and watch for buying opportunities around these levels. Immediate support is seen at $14.30, while resistance is seen at $14.60. Silver bulls are poised to remain in control until prices stay broadly above $14.00.

Trading recommendations:

Remain flat for now. Buy at $14.30 again.

Good luck!

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

Daily analysis of major pairs for January 28, 2016

EUR/USD: A persistent bullish movement of 100 pips this week has resulted in a Bullish Confirmation Pattern on this pair. There is an indication of a possible rally on this pair – just as it is on other EUR pairs. From the support line at 1.0800, the pair has reached the resistance line at 1.0900. Some fundamental figures are expected today and they can have impact on the market.

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USD/CHF: The USD/CHF pair moved simply sideways on Wednesday, January 27, 2016, while the bullish outlook remains valid. There is an expectation of a strong USD this week or next week, which would fall further northward in this pair. There are resistance levels at 1.0200 and 1.0250, which might be breached soon enough.

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GBP/USD: As it was forecasted yesterday, a bullish attempt seen on the cable chart (on Tuesday, January 26, 2016) has proven to be an opportunity to go short in the context of a downtrend. The price moved lower on Wednesday, reinforcing the extant bearish outlook for the market. The accumulation territories of 1.4200 and 1.4150 might be tested today or tomorrow.

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USD/JPY: The bullish signal in this market remains valid, though the price has not gone upwards significantly. The price is above the EMA 56 and the RSI period 14 is above the level of 50, which means that there is a high possibility that the price could go further upwards when momentum returns to the market.

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EUR/JPY: The EUR/JPY pair has moved upward by 130 pips this week, owing to visible bullish efforts in the market. The bullish effort has enabled the cross to generate a bullish signal in the 4-hour chart, as the price threatens to go above the supply zone at 129.50. In case the supply zone is successfully breached to the upside, the next bullish target will be another supply zone of 130.00.

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Daily analysis of USDX for January 28, 2016

TThe US dollar index had some volatile moves after the US Federal Reserve left the key rate unchanged, but (in a technical view), the USDX did a pullback at the 200 SMA (H1 chart). This could give us a bearish scenario for coming days, but bear in mind that the support level of 98.72 still doesn't gets broken. That inflection area, as you can check on the January 14 and January 21. The MACD indicator remains weak in the positive territory, but still supports the overall bullish idea.

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H1 chart's resistance levels: 99.22 / 99.49

H1 chart's support levels: 98.97 / 98.72

Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the USDX breaks with a bullish candlestick; the resistance level is seen at 99.22, take profit is at 99.49, and stop loss is at 98.95.

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

Daily analysis of GBP/USD for January 28, 2016

AThe GBP/USD pair had a volatile session where it made some losses and did a kind of pullback very close to the resistance level of 1.4373. A decline to the support zone of 1.4198 is expected as the bear are still in control of the situation. We should note that support is an inflection zone formed during the period between January 20 and January 21 where resistance (now, support) was seen. The MACD indicator is in the negative territory, so bears are getting stronger on the current bias.

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H1 chart's resistance levels: 1.4309 / 1.4373

H1 chart's support levels: 1.4198 / 1.4133

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 1.4198, take profit is at 1.4133, and stop loss is at 1.4263.

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Technical analysis of EUR/USD for January 28, 2016

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When the European market opens, some economic news on the Italian 10-y Bond Auction, Spanish Unemployment Rate, German Prelim CPI m/m, and German Import Prices m/m is due to be released. The US will reveal economic data on the Natural Gas Storage, Pending Home Sales m/m, Durable Goods Orders m/m, Unemployment Claims, and Core Durable Goods Orders m/m. So amid the reports, EUR/USD will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Breakout BUY Level: 1.0947.

Strong Resistance:1.0941.

Original Resistance: 1.0930.

Inner Sell Area: 1.0919.

Target Inner Area: 1.0894.

Inner Buy Area: 1.0869.

Original Support: 1.0858.

Strong Support: 1.0847.

Breakout SELL Level: 1.0841.

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 January 28, 2016

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In Asia, Japan will release data on the Retail Sales y/y, and the US will deliver economic on the Natural Gas Storage, Pending Home Sales m/m, Durable Goods Orders m/m, Unemployment Claims, and Core Durable Goods Orders m/m. So, there is a probability that the USD/JPY pair will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Resistance. 3: 119.47.

Resistance. 2: 119.23.

Resistance. 1: 119.00.

Support. 1: 118.72.

Support. 2: 118.48.

Support. 3: 118.25.

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 GBP/JPY for January 27, 2016

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Overview

The attached H4 chart demonstrates that GBP/JPY remains neutral for the moment. The consolidation from the 163.96 short-term bottom could extend with another rise. But we expect the upside to be limited by the 38.2% retracement of 188.79 to 163.96 at 173.44 and bring a fall resumption. A break of 163.96 will extend the fall from 195.86. A fall from 195.86 is currently viewed as a correction; and the 38.2% retracement of 116.83 to 195.86 at 165.67 has already been met. Based on the current momentum, the correction is likely to extend to the 61.8% retracement at 147.01 before the completion.

Daily Pivots: (S1) 167.89; (P) 168.94; (R1) 169.59

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Daily analysis of Silver for January 27, 2016

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Overview

According to the attached H4 chart, the silver price has managed to breach the sideways range's resistance level at 14.40 and closed yesterday's trading above it. This activated the correctional bullish scenario on an intraday and short-term bases, opening the way towards targets at 14.67 and 15.30. Therefore, the bullish trend will be preferred in the upcoming sessions, supported by the EMA50. Breaking the 14.27 level will stop the suggested rise and put the price under negative pressure.

The expected trading range for today is between the 14.20 support and 15.00 resistance.

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