Intraday technical levels and trading recommendations for GBP/USD for February 2, 2016

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Few months ago, the market was pushed above the depicted level at 1.5550 trying to reach the zone of 1.5900 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 a bearish breakout below 1.5200.

Extensive bearish pressure has been applied to 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 were expressed around 1.4075. Hence, the two previous weekly candlesticks closed above 1.4220 indicating strong bullish demand.

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 sign of a 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 bulls managed to achieve a daily closure above the level of 1.4220. It is already running in profits now.

Initial T/P levels should be located at 1.4440, 1.4500 and 1.4615 while S/L should be advanced to 1.4270 to secure some profits.

Traders who missed the initial trade can have another BUY entry near the price level of 1.4360 when retesting occurs.

T/P levels would be located at 1.4470, 1.4550, and 1.4610.

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Intraday technical levels and trading recommendations for EUR/USD for February 2, 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 (reached in January 1997). A month later, a strong bullish recovery was observed around the mentioned demand level.

The April candlestick came as a 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 will still be 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 (prominent key level) ensured enough bearish momentum towards 1.0550 (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 the significant supply level to offer valid sell entries. Moreover, a Head and Shoulders reversal pattern was formed as depicted on the chart. That is why, the current bullish pullback towards 1.1000 should be taken into for selling the EUR/USD pair again.

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, a bearish closure below 1.0800 (neckline of the depicted reversal pattern) is needed to allow further 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, another bullish pullback towards 1.1000 would be expected.

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Daily analysis of Silver for February 02, 2016

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Overview

The attached H4 chart demonstrates that the silver price bounced downwards yesterday after testing the sideways range resistance at 14.40, thus hinting at a potential visit to the range's support located at 13.65. Therefore, the sideways trading will remain dominant on the intraday and short-term bases until the price manages to breach one of the mentioned levels. A break of the 13.65 level will lead the price to resume its main bearish track, which next targets are located at 13.00 then 12.00. Meanwhile, a breach of the 14.40 level will lead to more bullish corrections that target 14.67 followed by 15.30 mainly.

The expected trading range for today is between the 13.80 support and 14.67 resistance.

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Technical analysis of GBP/JPY for Feburary 02, 2016

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GBP/JPY is expected to trade with a bullish bias above 172.50. The pair stands above its key support at 172.50 and is currently supported by its rising 50-period moving average. Meanwhile, the relative strength index lacks downward momentum. Further upside is therefore expected with the next horizontal resistance and overlap set at 175 at first. A breakout above this level would call for further advance toward 176.20 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 175 and the second target at 176.20. In the alternative scenario, short positions are recommended with the first target at 171.20 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 170. The pivot point is at 172.50.

Resistance levels: 175, 176.20, 177

Support levels: 171.20, 170, 169.40

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Technical analysis of USD/JPY for Feburary 02, 2016

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USD/JPY is expected to consolidate with a bearish outlook. Overnight, the US stocks managed to close with small losses despite the recent slump in oil prices. The Dow Jones Industrial Average edged down 0.1% at 16449, the S&P 500 lost less than 1 point at 1939, while the Nasdaq Composite was up 0.1% at 4620. Shares in utilities, food & staples retailing, and consumer services sectors traded higher, while those in energy, banking, and diversified financial sectors were under pressure.

Nymex crude oil plunged 6.0% to $31.62 a barrel, gold gained 1.0% to $1,128 an ounce, while the benchmark 10-year Treasury yield climbed to 1.966% from 1.928%.

Meanwhile, the US dollar weakened against other major currencies. EUR/USD rebounded 0.5% to 1.0886, GBP/USD surged 1.3% to 1.4429, NZD/USD was up 1.2% to 0.6545. At the same time, the greenback turned weaker against the Canadian dollar despite plunging oil prices, with USD/CAD falling by 0.2% to 1.3945. The pair failed to exceed last Friday's high of 121.68 and drifted lower. It is currently capped by the descending 20-period (30-minute chart) moving average, which crossed below the 50-period one. And the intraday relative strength index remains below the neutrality level of 50 lacking upward momentum. As long as the consolidation continues, the pair could return to the first downside target at 120.25 (around yesterday's low) and to second one at 119.60 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 120.25. A break of that target will move the pair further downwards to 119.60. The pivot point stands at 121.25. 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 121.70 and the second target at 122.20.

Resistance levels: 121.70, 122.20, 122.70

Support levels: 120.25, 119.60, 119.45

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Technical analysis of USD/CHF for Feburary 02, 2016

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USD/CHF is expected to continue its rebound. The pair is still heading upwards after the bullish penetration of its previous resistance at 1.0175, which now plays a role of support. The 20-period moving average is also turning up, and should continue to push prices higher. Furthermore, the momentum indicator such as relative strength index is bullish above its neutrality area of 50. In these perspectives, as long as 0.6485 holds on the downside, watch for a new bounce to 1.0250 and 1.0290.

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 1.0250 and the second target at 1.0290. In the alternative scenario, short positions are recommended with the first target at 1.0155 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 1.0120. The pivot point is at 1.0175.

Resistance levels: 1.0250, 1.0290, 1.0345

Support levels: 1.0155, 1.0120,1.01

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Technical analysis of NZD/USD for Feburary 02, 2016

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NZD/USD is under pressure now. The pair has been capped by a negative trend line and stays below its key resistance at 0.6525. The 20-period moving average has just crossed below the 50-period one, while the relative strength index stays below 50. The first target to the downside is therefore set at 0.6465. A breakout below this level would open the way to further weakness toward 0.6415.

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 0.6560. A break of that target will move the pair further downwards to 0.6580. The pivot point stands at 0.6525. 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 0.6455 and the second target at 0.6415.

Resistance levels: 0.6560, 0.6580, 0.6635

Support levels: 0.6455, 0.6415, 0.6375

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Gold analysis for February 02 , 2016

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Overview:

Since our last analysis, gold has been trading upwards. As I expected, the price tested the level of $1.130.25 in a high volume. An intraday short-term trend is upward. So, selling looks very risky. In the daily time frame, I found demand in a volume above the average. We can see a test of 200 SMA. Also. the pair is trading well above all key MA`s (SMA 50,100,150,200) in the H4 time frame.The upward take-profit zone is established around the level of $1,134.00 (Fibonacci retracement 61.8%, daily SMA 200). If the price breaks the level of $1,134.00, we may expect potential testing of $1,182.00. In the M30 time frame, as I expected, buyers absorbed a massive volume spike (selling climax).

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,130.20

R2: 1,133.88

R3: 1,139.50

Support levels:

S1: 1,119.00

S2: 1,115.60

S3: 1,111.00

Trading recommendations: Watch for potential buying opportunities on dips.

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EUR/NZD analysis for February 02, 2016

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Overview:

Recently, EUR/NZD has been moving sideways around 1.6800 area. In the daily time frame, we can observe a successful test of our key point in the control zone (1.6640-1.6515). In the 4H time frame, we found a fake breakout of an upward trend line, which is a sign that selling looks risky. The price is well above all key MAs (50SMA, 100SMA, 150SMA, and 200 SMA). According to the 30M time frame, downward channel had been broken and the price went out of 3-days balance zone (1.6725). The first short-term upward take-profit zone is seen around 1.7260 (previous swing high). Intraday upward target is set at 1.6890.

Fibonacci Pivot Points:

Resistance levels:

R1: 1.6775

R2: 1.6830

R3: 1.6920

Support levels:

S1: 1.6600

S2: 1.6545

S3: 1.6450

Trading recommendations: the intraday and short-term trends are upward. Watch for potential buying opportunities on the dips.

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Global macro overview for 02/02/2016

Global macro overview for 02/02/2016:

Another portion of the manufacturing PMI reports was delivered from the eurozone yesterday with the biggest gain from the Spanish economy ( 55.4 vs. 52.5 expected and 53.0 prior). It was rather a mixed set of data, where some countries like Germany reported growth in PMI as well ( 53.2 vs. 52.1 and 52.1 prior), France stayed in the same place (50.0 vs. 50.0 and 50.0 prior) and some deteriorated slightly (Italy: 53.2 vs. 54.9 and 55.6 prior; Switzerland: 50.0 vs. 51.0 and 50.4 prior). The biggest gain has been recorded in Spain mainly due to the largest increase in eight months from November 2013. Data shows that eurozone's countries which were harmed by the financial crisis of 2008 report slow-but-sure recovery in their manufacturing activity and further expectations remain positive.

Now let's have a look at the technical chart of EUR/USD. It looks like a big triangle pattern is being formed on the H4 time frame (dashed lines) and odds for the up side breakout are increasing. The next resistance is seen at the level of 1.0992 and any breakout higher might lead the market to the new highs above the level of 1.1059.

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Global macro overview for 02/02/2016

Global macro overview for 02/02/2016:

Last night, the Reserve Bank of Australia decided to maintain the official cash rate at the level of 2%. It is now the eighth consecutive month with no changes in the regulator's monetary policy. The RBA expressed concerns about low market volatility and low inflationary pressures. The inflation growth rate in the year 2015 hit the levels of 1.5% - 1.7% oscillating near the lower end of the RBA's projected range of 2%-3%. To make a conclusion, the RBA remains in the wait-and-see mode now to monitor impact of the recent global financial markets turmoil and slowdowns in China's economy on the Australian economy.

From the technical point of view, the AUD/USD pair managed to retrace 61% of the previous downward swing and now it is expected to reverse from that level. Currently, it is trading at the double support level: horizontal support is found at the level of 0.7041 and dynamic support provided by golden trend line. Any breakout below this important support will confirm our downward bias.

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Technical analysis of EUR/JPY for February 02, 2016.

Technical outlook and chart setups:

The EUR/JPY has been testing a long-term resistance trend line for the last two trading sessions. The pair is trading at 131.92 looking for an opportunity to move lower towards fresh swing lows below the level of 126.00 in coming weeks. Please note that Fibonacci 0.618 resistance is also seen at the same levels as depicted in the chart. It is hence recommended to remain short now with risk at 134.00/50. Immediate support is seen at 131.00, while resistance is seen at 132.80. Bears are expected to regain control anytime until prices remain below the level of 134.50 going forward.

Trading recommendations:

Remain short with stop at 134.00, a target is open.

Good luck!

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Technical analysis of USD/CAD for Febuary 2, 2016

General overview for 02/02/2016:

The pair has reached another local low, but it is still trading inside a range zone. Nevertheless, an upside breakout is likely to take place soon as diminishing downward momentum and bullish divergence can be observed between the price and momentum oscillator. Moreover, there is an uncompleted wave progression to the upside which indicates that wave c purple should reach a local high at the level of 1.4272. Please note a larger uptrend is still intact in this time frame, but the corrective cycle might get more complex and more time-consuming.

Support/Resistance:

1.4690 - Swing High

1.4553 - WR3

1.4436 - WR2

1.4324 - Technical Resistance

1.4173 - WR1

1.4061 - Weekly Pivot

1.4039 - Intraday Resistance

1.3907 - Intraday Support

1.3798 - WS1

Trading recommendations:

We are still expecting bullish wave c to the upside. So, day traders should consider placing buy orders today if the intraday resistance at the level of 1.4039 is violated. The SL orders should be placed below the level of 1.3907 and TP at the level of 1.4173.

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Technical analysis of Gold for February 02, 2016

Technical outlook and chart setups:

Gold was trading around $1,124.00 at the moment of publication after printing lows at $1,123.39 today. The metal can show a significant retracement before pushing higher towards $1,136.00 levels. Gold is likely to drop lower towards the $1,107.00 level which coincides the Fibonacci 0.382 support levels as depicted here. Therefore, it is recommended to remain short with risk at $1,131.50. Immediate support is seen at $1,107.00 while resistance lies at $1,130.00. Importantly, immediate trend line support is passing through $1,115.00, watch out for a bullish bounce there.

Trading recommendations:

Remain short with stop at $1,131.5, target is at $1,107.00.

Good luck!

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Technical analysis of Silver for February 02, 2016

Technical outlook and chart setups:

Silver is trading around еру the level of $14.26 now looking for an opportunity to form a base around $14.00 before resuming its rally towards $15.00/20. The metal has been testing the resistance-turned-support trend line for the last couple of trading sessions. The metal is expected to drop lower towards at least $14.00, which is also Fibonacci 0.618 of the rally between $13.70 and $14.55. It is hence recommended to remain flat now and look for an opportunity to buy at lower levels. Immediate support is seen at $14.15 followed by $14.00, while resistance is seen at $14.50. Bears are expected to remain in control until prices stay below $14.60.

Trading recommendations:

Remain flat now, buy lower.

Good luck!

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Technical analysis of EUR/JPY for Febuary 2, 2016

General overview for 02/02/2016:

The pair still trades inside a narrow range zone between the levels of 132.32 and 130.22. Moreover, first indications of a possible three-wave correction termination is visible as well, so any rally upwards that breaks a local high at the level of 132.31 will be labeled as wave three of the main impulsive structure.

Support/Resistance:

133.69 - WR1

132.27 - Local High|Intraday Resistance|

130.76 - Weekly Pivot

130.22 - Intraday Support

129.18 - WS1

Trading recommendations:

Day traders should refrain from trading and wait for another trading setup to occur.

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Elliott wave analysis of EUR/NZD for February, 2016

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Wave summary:

A breakout below minor support at 1.6603 is a little disappointing, but it does not alter our long-term call for an upside acceleration towards 1.7271 and 1.7641 as the next upside targets. However, in the short term a little more downside pressure can not be excluded as long as minor resistance at 1.6836 is able to protect the upside. Once this minor resistance gets broken, the way higher should be open for a rally towards 1.7271 and higher to 1.7641.

Trading recommendation:

Our stop at 1.6600 was hit for a small loss. We will only buy on a breakout above 1.6836.

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Elliott wave analysis of EUR/JPY for February 2, 2016

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Wave summary:

We continue to look whether the resistance line of 141.06 keeps on protecting the upside or it will be broken. Whatever happens here will decide trade for the next couple of weeks. For now, it looks like a minor consolidation just below the resistance line near 122.00. If that's the case, a stronger test of this resistance line should be expected soon. If, however prices begins to tilt lower, as we saw in December, October, and August, a new decline towards important support at 126.05 should be expected.

Trading recommendation:

We will stay sidelined until the faith of the resistance line will be determined.

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Technical analysis of EUR/USD for February 02, 2016

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When the European market opens, some economic news will be released such as PPI m/m, Unemployment Rate, Italian Monthly Unemployment Rate, German Unemployment Change, Spanish Unemployment Change.The US will release the economic data too such as Total Vehicle Sales, IBD/TIPP Economic Optimism, so amid the reports, EUR/USD will move low to medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

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.

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Technical analysis of USD/JPY for February 02, 2016

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In Asia, Japan will release the 10-y Bond Auction, Monetary Base y/y and the US will release some economic data such as Total Vehicle Sales, IBD/TIPP Economic Optimism. So there is a probability the USD/JPY will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Resistance. 3: 121.40.

Resistance. 2: 121.16.

Resistance. 1: 120.92.

Support. 1: 120.63.

Support. 2: 120.40.

Support. 3: 120.16.

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 major pairs for February 2, 2016

EUR/USD: Just like its GBP/USD counterpart, this pair also moved upwards on Monday, trying to reach the resistance line at 1.0900. In case the resistance line is breached to the upside, the next target for the bulls could be the resistance line at 1.1000. However, there is still a neutral bias on the market, and at least a 300-pip movement to the upside or the downside is needed to force the price out of the current neutral region.

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USD/CHF: Because the EUR/USD moved upward yesterday, the USD/CHF moved lower on the same day (in an inverse correlation with each other). However, the bullish signal in the market is not yet over, unless the price breaks below the support levels at 1.0100 and 1.0050. Should this fail to happen, we might see a resumption of the bullish movement in the market.

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GBP/USD: It is interesting to see that the GBP/USD moved upwards by 200 pips on Monday, rising from the accumulation territory at 1.4250, and almost reached the distribution territory at 1.4450. Although the recent bearish bias still exists, it is now threatened by the price action on Monday. A further bullish movement of 200 pips would result in a new bullish bias on the market. Otherwise, this could turn out to be a rally in the context of an uptrend.

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USD/JPY: This pair, which moved significantly upwards last week, simple moved sideways yesterday. The indicators in the chart currently support the bullish trend in the market, which is supposed to continue this week and this month. The same outlook is also possible on other JPY pairs, owing to the seasonality of this phenomenon. JPY pairs are usually strong in February of every year.

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EUR/JPY: This cross moved upward slightly yesterday, recovering the shallow pullback witnessed on January 29, 2016. The price should rally further today or tomorrow, enabling the price to test the supply zones at 132.50 and 130.00. The demand zones at 130.50 and 131.00 should do a good job in resisting any bearish corrections along the way.

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Technical analysis of NZD/USD for February 02, 2016

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Overview:

  • The trend of NZD/USD pair movement was controversial as it took place in the narrow sideways channel, the market showed the signs of instability. Due to the previous events, the price is still moving between the levels of 0.6558 and 0.6446. Also, it should be remembered that the daily resistance and support are at the levels of 0.6558 and 0.6446 respectively. Therefore, it is recommended to be cautious while opening orders in this area. So, it is necessary to wait until the sideways channel has completed. Yesterday, the market moved from its bottom at 0.6449 and continued to rise towards the top of 0.6524. Today, in the one-hour chart, the current rise will remain in the framework of corrections. However, if the pair fails to pass through the level of 0.6558, the market will indicate a bearish opportunity below the strong resistance level of 0.6558 (the level of 6558 coincides with the double top too). Since there is nothing new in the path of this pair, it is still not bullish. In this regard, sell deals are recommended lower than the 0.6558 level with the first target at 0.6446. If the trend breaks the support at 0.6446, it is possible that the pair will move downwards continuing the development of the bearish trend to the level 0.6410 in order to test the daily support 2 (horizontal green line).
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Technical analysis of USD/CHF for February 02, 2016

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Overview:

  • The resistance of USD/CHF pair has broken; it turned to support around the price of 1.0120 yesterday. Thereby, forming a strong support at 1.0120. The level of 1.0120 coincides with the golden ratio (61.8% of Fibonacci retracement) which is acting as major support today. Another thought; the Relative Strength Index (RSI) is considered overbought because it is above 70. At the same time, the RSI is still signaling an upward trend, as the trend is still showing strong above the moving average (100). This suggests the pair will probably go up in coming hours. Accordingly, the market will probably show the signs of a bullish trend. In other words, buy orders are recommended above 1.0120 level with their first target at the level of 1.6202. From this point, the pair is likely to begin an ascending movement to the point of 1.0212 and further to the level of 1.0263. The price of 1.0263 will act as a strong resistance and the double top has already set at the point of 1.0327. On the other hand, if a break happens at the support of 1.0120, then this scenario may become invalidated.
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USDX technical analysis for February 2, 2016

The Dollar index has reversed lower as expected. Price made a turn to the downside but dollar bulls remain in control of the larger trend. Huge support is at 98.50, while resistance at 100 remains strong.

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The bearish divergence I noted in my previous post has provided a nice reversal signal as prices turned lower today towards the daily Ichimoku cloud and below the daily tenkan-sen. Price remains trapped inside the 98.50-100 range. So as long as we trade inside this range, traders should be neutral.

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A bullish sign is the fact that the decline today stopped at the 61.8% Fibonacci retracement of the rise from 98.44. This level is important support and as long as we hold above it, bulls remain under control of the trend.

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Gold technical analysis for February 2, 2016

Gold price made another new higher high confirming the bullish trend. We are approaching an important resistance area between $1,130-40. Bulls need to be very cautious and raise their stops.

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Blue lines -bullish short-term channel

Black lines- medium-term bullish channel

Gold continues to trade above the Ichimoku cloud. Support is at $1,115. Breaking below that level will probably push gold price below $1.100. Resistance is at $1,133. This is the time when bulls need to be very cautious.

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Weekly kijun-sen resistance is being broken. Price is moving towards the Ichimoku cloud resistance. A weekly close above the kijun-sen will confirm the bullish trend. Support is at $1,090 where we find the tenkan-sen. Will gold price make a lower high relative to the $1,190 high? This high is very important resistance for the medium- to long-term trend.The material has been provided by InstaForex Company - www.instaforex.com

Daily analysis of USDX for February 02, 2016

On H1 chart, the USDX had a decline since the highs made during the Friday session and we now see that the Index is facing-off a huge inflection area formed during the January 27th and 28th sessions (98.99). If the USDX achieves in break that zone to the downside, then we can expect another decline to test the lows of the January 20th, near the 98.69 level.

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H1 chart's resistance levels: 99.23 / 99.43

H1 chart's support levels: 98.99 / 98.69

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 99.23, take profit is at 99.43, and stop loss is at 99.03.

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

Daily analysis of GBP/USD for February 02, 2016

The GBP/USD rallied above the 200 SMA at H1 chart and now we can see it broke the highs made during the January 29th session. That move is calling for a more extended higher structure towards new levels above the resistance zone of 1.4466. If Cable achieves in break that inflection area, then we can expect a continuation until the 1.4531 level. MACD indicator is still at positive territory and does not show signs of a trend-reversal.

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H1 chart's resistance levels: 1.4406 / 1.4531

H1 chart's support levels: 1.4423 / 1.4373

Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the GBP/USD pair breaks a bullish candlestick; the resistance level is at 1.4406, take profit is at 1.4531, and stop loss is at 1.4401.

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

Technical analysis of USD/JPY for Feburary 01, 2016

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USD/JPY is turning downwards. The pair has confirmed a head-and-shoulders bearish reversal pattern and is drifting downwards. Last Friday, U.S. stocks advanced over 2% amid a global stock-market rally set off by the Bank of Japan's decision to introduce negative interest rates. Oil prices kept climbing, and strong buying was spotted in information technology shares. The Dow Jones Industrial Average rose 2.5% to 16,466, the S&P 500 also gained 2.5% to 1,940, while the Nasdaq Composite was up 2.4% to 4,613.

Nymex crude oil increased 1.2% to $33.62 a barrel, gold edged up 0.3% to $1,117 an ounce, while the benchmark 10-year Treasury yield declined further to 1.928% from 1.980% on Thursday.

Boosted by the BOJ's surprise rate move, USD/JPY surged 1.9% to 121.03 (with a day high at 121.68). At the same time, EUR/USD dropped 0.9% to 1.0834, GBP/USD lost 0.8% to 1.4245 and USD/CHF rose 0.9% to 1.0227. Meanwhile, the Canadian dollar kept strengthening against the U.S. dollar thanks to a continued rebound in oil prices, with USD/CAD declining a further 0.4% to 1.3971. The 20-period moving average, which has crossed below the 50-period one, is capping any upward potential for the pair. Meanwhile, the relative strength index is badly directed with the selling area between 50 and 30.

Trading recommendations:

The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 120.50. A break of that target will move the pair further downwards to 120.05. The pivot point stands at 121.70. 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 122.20 and the second target at 122.70.

Resistance levels: 122.20, 122.70, 123.25

Support levels: 120.50, 120.05, 119.45

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

Technical analysis of USD/CHF for Feburary 01, 2016

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USD/CHF is expected to trade in a lower range as the key resistance stands at 1.0220. The pair has broken below its short-term rising trend line, and is now under pressure below the key resistance at 1.22. The upward potential is likely to be limited by this threshold. The relative strength index remains weak below its neutrality area at 50. Hence, even though a continuation of the technical rebound cannot be ruled out at the current stage, its extent should be limited. In case of breaches below 1.0220, look for a new pullback to 1.0150 and 1.0120 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 1.0150. A break of that target will move the pair further downwards to 1.0120. The pivot point stands at 1.0220. 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 1.0250 and the second target at 1.0290.

Resistance levels: 1.0250, 1.0290, 1.0345

Support levels: 1.0150, 1.0120,1.01

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

Technical analysis of GBP/JPY for Feburary 01, 2016

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GBP/JPY is expected to trade in a higher range. The pair remains on the upside and is well supported by its rising 50-period moving average. Meanwhile, the relative strength index stays above 50. Further upside is therefore expected with the next horizontal resistance and overlap set at 175 at first. A break above this level would call for further advance towards 171.20 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 175 and the second target at 176.20. In the alternative scenario, short positions are recommended with the first target at 171.20 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 170. The pivot point is at 172.50.

Resistance levels: 175, 176.20, 177

Support levels: 171.20, 170, 169.40

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

Technical analysis of NZD/USD for Feburary 01, 2016

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NZD/USD is expected to trade with bullish bias above 0.6475. The pair stays above its key support at 0.6475 and is expected to post a rebound. Meanwhile, the relative strength index lacks downward momentum. Further upside is therefore expected with the next horizontal resistance and overlap set at 0.6540 at first. A break above this level would call for further advance towards 0.6560.

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 0.6540 and the second target at 0.6560. In the alternative scenario, short positions are recommended with the first target at 0.6440 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 0.6415. The pivot point is at 0.6475.

Resistance levels: 0.6540, 0.6560, 0.6595

Support levels: 0.6440, 0.6415, 0.6375

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

Daily analysis of SILVER for February 01, 2016

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Overview

The silver price keeps fluctuating near the 14.30 level and it has not shown show any strong move since morning. Therefore, there is no change in the sideways trading scenario that confines the price between the 13.65 support and 14.40 resistance, waiting for a breach of one of these levels to detect the next targets clearly. A break of this support will push the price to head towards 13.00 followed by 12.00 as next main targets for the long-term bearish wave. Meanwhile, breaching the resistance represents the key to regain the bullish correctional trend that targets the 15.30 area mainly. Therefore, we still prefer the sideways move in the upcoming period to recognize the expected targets from breaching the mentioned levels. The expected trading range for today is from 13.80 support to 14.67 resistance.

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

NZD/USD intraday technical levels and trading recommendations for February 1, 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 shows 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.

Since January 26, bullish persistence above 0.6500 was mandatory to keep pushing the NZD/USD pair towards higher bullish targets. However, a lower high has been previously established at the level of 0.6530 on January 27.

This enhanced the bearish side of the market and brought the NZD/USD pair towards the depicted support level of 0.6400 again.

Last week, the depicted support level of 0.6400 acted as a prominent key level, which offered a valid buy entry. 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 the price 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 to occur.

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