USD/CAD intraday technical levels and trading recommendations for February 3, 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 from 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 1.4120 (Fibonacci Expansion 100%) was executed.

Bullish persistence above 1.4150 enhanced the bullish side of the market towards 1.4650 (141.4% Fibonacci expansion) where evident bearish rejection was expected (a bearish engulfing weekly candlestick).

The level of 1.4120 (Fibonacci Expansion 100%) remains a significant key level to be watched for price reaction during the current week's consolidations. It offered a valid sell entry on a bullish pullback that took place yesterday.

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 enough bearish momentum is maintained below the mentioned key level (1.4100) and prominent weekly support (1.4000).

Trading recommendations:

As we expected, two valid sell entries were suggested around 1.4650 (141.4% Fibonacci expansion) and around 1.4120 (Fibonacci Expansion 100%). Both positions are running in profits. S/L should now be lowered to 1.4120 to secure our profits, while the next T/P levels remain projected at 1.3800 and 1.3650.

Conservative traders should wait for a bearish pullback towards the zone of 1.3370-1.3400 for a valid buy entry. S/L should be located below 1.3320.

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Global macro overview for 03/02/2016

Global macro overview for 03/02/2016:

The New Zealand employment data were released overnight and the most important aspects of the data were better than analysts had expected. The unemployment rate has sharply decreased to 5.3% whereas the market expectations were way worse: an increase to 6.1% from 6,0% a month before. This was the lowest jobless rate since March 2009. Moreover, the employment change posted a gain of 0.9%, edging above the estimate of 0.8%. It is worth noting that the New Zealand economy had been badly hurt by the slowdown in China's economy (the New Zealand biggest trading partner), when GDP, PMI, and other important figures from China painted a rather grim picture of future of the world's second biggest economy. In conclusion, we can remind the RBNZ Governor Graeme Wheeler's remarks from his yesterday's speech regarding an outlook for the New Zealand further economic developement: "if the concerns deepen around the global economy growth prospects and its effect on New Zealand, further policy easing may be needed over the coming year".

Let's now take a look at the daily technical chart of the NZD/USD pair. We can clearly see the strong recovery in this market as ts had broken above 50% Fibo level and now it is approaching the 61%Fibo level at 0.6678. In that case, the level of 0.6579 will be an important technical support and traders should keep thier eye on the next technical resistance just above the 61%Fibo mark at the level of 0.6681. If there is no signs of a reversal from this level, then bulls might try to test the local swing high at the level of 0.6896.

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Global macro overview for 03/02/2016

Global macro overview for 03/02/2016:

The ADP Employment report was released today and it was better than analysts had expected. A change in the number of newly employed people in the US was at 205K vs. the forecast of 195K, which seems to be a good result, but is still lower than the previous month reading of 267K. The ADP report is a good predictor of the NFP report that will be released on Friday: expectations for the NFP number are lower than last month, so an upside surprise is still possible. Please notice that strong numbers from the US labor market helped convince the Federal Reserve to raise interest rates in December, but employment numbers have been lukewarm in early 2016. In conclusion, investors might expect the employment numbers to be closely monitored by the Fed, which will have to decide if the economy is ready for another rate hike in March.

Let's take a look at the technical chart of the EUR/USD pair after the ADP data release. A clear breakout above the dashed trend line in the H4 time frame might indicate that bulls are currently in control of the market. Nevertheless, there is one more important technical resistance to be violated: the area between the levels of 1.0992 and 1.1059. If the daily candlestick closes above the top of this zone, bullish trend will resume at least in the some short time.

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EUR/NZD analysis for February 03, 2016

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Overview:

Recently, EUR/NZD has been moving downwards. The price tested the level of 1.6518 in a high volume. Anyway, the price reached our intraday take profit level (resistance) at 1.6875 and then rejected strongly downwards. In the 4H time frame, I saw a test of the strong support level at 1.6515 (swing low, Fibonacci expansion 61.8%). If the price breaks the level of 1.6515, we may expect potential testing of 1.6260 (Fibonacci expansion 100%) and the level of 1.5830 (Fibonacci expansion 161.8%). The intraday trend is downward.

Fibonacci Pivot Points:

Resistance levels:

R1: 1.6875

R2: 1.6945

R3: 1.7060

Support levels:

S1: 1.6650

S2: 1.6580

S3: 1.6465

Trading recommendations: the intraday trend is downard. So, watch for potential breakout of 1.6515 to confirm further downward continuation.

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Intraday technical levels and trading recommendations for GBP/USD for February 3, 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.

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 moved below 1.4220, evident signs of bullish recovery were expressed around 1.4075. Hence, the previous two 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. A bullish engulfing weekly candlestick is being expressed as depicted on the chart.

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 moved 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 was considered as 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 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.

Those traders who missed out on the initial trade can have another buy entry near the 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 3, 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, 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 considered for selling the EUR/USD pair.

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 a further bearish decline to occur towards 1.0730, 1.0620, and 1.0570.

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

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Daily analysis of gold for February 03, 2016

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Overview

Gold price fluctuates near the key resistance of 1130.60, which represents 61.8% Fibonacci level of the last bearish wave. As we mentioned yesterday, we are waiting for bearish rebound to resume an overall bearish trend after approaching the main bearish channel's resistance that appears on chart. The price needs to break 1114.50 followed by 1098.40 to reinforce the expectations of continuing bearish bias with the next target extended to a recent low of 1046.20. Taking into consideration that a breakout at the level of 1140.50 will stop the negative overview and stimulate recovery in the short-term basis to target 1182.80 followed by 1200.00.

We expect a trading range between the support level of 1100.00 and the resistance level of 1140.50.

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Gold analysis for February 03, 2016

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Overview:

Since our last analysis, gold has been trading sideways at the level of $1,127.00. An intraday short-term trend is upward. In the daily time frame, I found a neutral bar but the volume is still above the average. The demand still presents in the market. So, selling looks risky. We can see a test at the 200 SMA. Also, the pair is trading well above all key MA`s (SMA 50,100,150,200) in the H4 time frame. The first take-profit level is reached at $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, I found a trading range between the support level of $1,120.00 and the resistance of $1,130.60. Since Gold is in the uptrend according to the lower frame, watch for the potential upward breakout to confirm the further upward continuation.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,130.60

R2: 1,132.60

R3: 1,135.80

Support levels:

S1: 1,124.00

S2: 1,122.20

S3: 1,119.00

Trading recommendations:Trading recommendations: watch for potential breakout of the trading range to confirm further direction.

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Daily analysis of Silver for February 03, 2016

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Overview

Silver price keeps moving within tight track. As long as the price is between 13.65 support and 14.40 resistance around Fibonacci 23.6%, the sideways range will remain dominant in the intraday trading. The price needs to breach one of these levels to detect its next targets clearly on the short-term basis. Importantly, breaking 14.40 resistance will lead to further bullish correction that targets 14.67 followed by 15.30 levels mainly, while breaking 13.65 level will put the price under the main negative pressure again with the first the target at 13.00 and the next one at 12.00.

Expected trading range for today is between 13.80 support and 14.67 resistance.

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Technical analysis of Silver for February 03, 2016

Technical outlook and chart setups:

Silver was trading at $14.38/40 levels near Fibonacci 0.618 resistance, having decreased from $14.55 to $14.15. The metal is expected to drop lower towards $14.00 before resuming rally. However, if the price breaks through the $14.60 level, it would nullify the above bearish count. Therefore, it is recommended to remain flat for now and watch for buying opportunities at lower levels. Immediate support is seen at $14.25 while resistance lies at $14.56. The metal can find support at $14.00 which coincides with Fibonacci 0.618 ratio.

Trading recommendations:

Remain flat for now and watch for buying opportunities at $14.00.

Good luck!

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Technical analysis of Gold for February 03, 2016

Technical outlook and chart setups:

Gold was trading at $1,128.00/29.00 levels at the moment of publication, facing resistance around $1,130.00/31.00 levels. The metal is also forming a pennant at current levels in 4H chart which is not seen here. Importantly, a major resistance is seen at $1,136.00 in the form of Fibonacci 0.618 ratio. Besides, the resistance line is seen passing around the same region. Therefore, it is recommended to remain flat and watch for selling opportunities at higher levels or remain short with risk at $1,132.50 for now. Immediate support is seen at $1,127.50 while resistance lies at $1,131.00/50.

Trading recommendations:

Remain short with stop at $1,132.50 and plan to sell at higher levels if prices reach them.

Good luck!

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Technical analysis of USD/CHF for February 03, 2016

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Overview:

  • On the one-hour chart, the USD/CHF pair continues moving in a bullish trend from the support levels of 1.0123 and 1.0154. Currently, the price is in a bullish channel. This is confirmed by the RSI indicator signaling that we are still in a bullish trending market. As the price is still above the moving average (100), immediate support is seen at 1.0154, which coincides with a golden ratio (61.8% of Fibonacci). Consequently, the first support is set at the level of 1.0154. So, the market is likely to show signs of a bullish trend around the spot of 1.0123/1.0154. In other words, buy orders are recommended above the golden ratio (1.0154) with the first target at the level of 1.0224. Furthermore, if the trend is able to breakout through the first resistance level of 1.0224. We should see the pair climbimg towards the double top (1.0255) to test it. It would also be wise to consider where to place a stop loss; this should be set below the second support of 1.0123.
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Technical analysis of NZD/USD for February 03, 2016

Overview:

  • As expected the NZD/USD pair has kept moving downwards from the level of 0.6557. Yesterday, the pair dropped from the level of 0.6557 (this level of 0.6557 coincides with the double top) to the bottom around 0.6461. Today, the first resistance level is seen at 0.6546 followed by 0.6600, while daily support 1 is seen at 0.6503. According to the previous events, the NZD/USD pair is still moving between the levels of 0.6600 and 0.6503; for that we expect a range of 97 pips (0.6600 - 0.6503). If the NZD/USD pair fails to break through the resistance level of 0.6600, the market will decline further to 0.6546. This would suggest a bearish market because the RSI indicator is still in a positive area and does not show any trend-reversal signs. The pair is expected to drop lower towards at least 0.6503 with a view to test the daily pivot point. On the contrary, if a breakout takes place at the resistance level of 0.6605 (the double top), then this scenario may become invalidated.

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Intraday technical levels:

  • R3: 0.6642
  • R2: 0.6600
  • R1: 0.6546
  • PP: 0.6503
  • S1: 0.6450
  • S2: 0.6408
  • S3: 0.6354
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USDX technical analysis for February 3, 2016

The US dollar index has been trading sideways for some time now and still holding above the trading range support at 98.40-98.50. Resistance at 100 is still not broken, so I believe the market is waiting for some direction from the Fed.

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The price is now below the Ichimoku cloud in the 4-hour chart but still inside the trading range between 98.40 and 100. The price is also trapped between the 61.8 and 78.6% Fibonacci retracement of the recent rally. A trend is clearly sideways and there is no need to take unwarranted risks trying to guess what will happen next. Patience is needed to wait for a clear breakout signal to be given.

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Blue line - support

Red lines - bearish divergence signs

Yellow lines - projection if support fails

In the daily chart, the price is still above the cloud and above the horizontal support of 98.40. If this support fails to hold we should expect the price to move at least towards 97.10. Resistance is at 99.10 for the daily chart and next at 100. Traders should better wait for a breakout before opening any position.

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Gold technical analysis for February 3, 2016

Gold price climbed to a new high yesterday, but momentum indicators did not follow. I believe we are near an at least short-term top. This will be confirmed once we breakout below $1,120.

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Blue lines - short-term bullish channel

Black lines - medium-term bullish channel.

The price is above the Ichimoku cloud support which is found at $1,116. Channel support is found at $1,120. As long as the price is above these levels, a trend will remain bullish. However, the price formation combined with the oscillator overbought levels makes me believe we should exit longs and wait for a downward move.

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On a weekly basis, the gold price remains inside a long-term black downward sloping wedge below the Ichimoku cloud, but it has broken above the weekly kijun-sen resistance (yellow line indicator). However, we should wait to see if this week closes above the kijun-sen. Strong weekly resistance is found at $1,150, so this level cannot be ruled out for a final upward move.The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of EUR/JPY for Febuary 3, 2016

General overview for 03/02/2016:

A three-wave corrective cycle to the downside looks now completed and further gains are anticipated. A breakout above the intraday resistance level of 130.81 will be the first confirmation of impulsive wave developing. A new high above the level of 132.23 will be the first target for bulls.

Support/Resistance:

133.69 - WR1

132.27 - Local High|Technical Resistance|

130.81 - Intraday Resistance

130.76 - Weekly Pivot

130.22 - Intraday Support

129.18 - WS1

Trading recommendations:

An uptrend might be resumed now, so day traders should consider placing buy orders from the current market levels with SL below the level of 130.21 and TP open for now.

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Technical analysis of USD/CAD for Febuary 3, 2016

General overview for 03/02/2016:

An uncompleted wave progression to the upside is finally picking up some steam as the recent breakout above the upper channel line is now being tested. Currently, the market is trading just above the weekly pivot at the level of 1.4061 and even more gains are being anticipated in this pair.

Support/Resistance:

1.4690 - Swing High

1.4553 - WR3

1.4436 - WR2

1.4324 - Technical Resistance

1.4173 - WR1

1.4061 - Weekly Pivot

1.4104 - Intraday Resistance

1.3907 - Intraday Support

1.3798 - WS1

Trading recommendations:

Buy orders are now in profit and day traders should move the SL to the BE and wait for the TP at the level of 1.4173 is hit.

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Elliott wave analysis of EUR/NZD for February 3, 2016

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Wave summary:

EUR/NZD has taken a position from where a strong rally through 1.7007 and more importantly a breakout above 1.7271 can be seen anytime now. But this scenario needs support at 1.6564 to protect the downside for a breakout above minor resistance at 1.6917 and then at 1.7007.

The breakout below 1.6564 will be yet another disappointment which delays the expected rally higher closer to 1.6487 and maybe even closer to 1.6370 before higher again.

Trading recommendation:

We are long EUR from 1.6837 and have placed our stop at 1.6537. If you are not long EUR yet, then buy near 1.6640 or upon a breakout above 1.6780 and use the same stop at 1.6537.

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Elliott wave analysis of EUR/JPY for February 3, 2016

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Wave summary;

As the resistance line at 141.04 has protected the upside and turned prices lower, we still have two possible scenarios in play.

The first shows that a very complex corrective pattern is still unfolding for an orthodox top at 145.69 and since then an expanded flat pattern has been unfolding. A final decline to the territory below 126.05 should be seen.

The second scenario suggests that an expanded flat pattern has terminated at 126.05 and a new impulsive rally now is unfolding, but a break above the resistance-line near 132.50 is needed to gain momentum to play out this scenario. The breakout above 132.50 calls for 141.04 and above.

Trading recommendation:

We will remain sidelined for now.

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Technical analysis of EUR/USD for February 03, 2016

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When the European market opens, economic news on the Retail Sales m/m, Italian Prelim CPI m/m, Final Services PMI, German Final Services PMI, French Final Services PMI, Italian Services PMI, and Spanish Services PMI is due to be released.The US will deliver the economic data on the Crude Oil Inventories, ISM Non-Manufacturing PMI, Final Services PMI, and ADP Non-Farm Employment Change. So amid the reports, EUR/USD will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Breakout BUY Level: 1.0970.

Strong Resistance:1.0964.

Original Resistance: 1.0953.

Inner Sell Area: 1.0942.

Target Inner Area: 1.0917.

Inner Buy Area: 1.0892.

Original Support: 1.0881.

Strong Support: 1.0870.

Breakout SELL Level: 1.0864.

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 February 03, 2016

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In Asia, Japan will release data on the Consumer Confidence, and the US will unveil some economic data on the Crude Oil Inventories, ISM Non-Manufacturing PMI, Final Services PMI, and ADP Non-Farm Employment Change. So, there is a probability that the USD/JPY pair will move with medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Resistance. 3: 120.47.

Resistance. 2: 120.24.

Resistance. 1: 120.00.

Support. 1: 119.71.

Support. 2: 119.47.

Support. 3: 119.24.

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 3, 2016

EUR/USD: The rally that started on Monday is still in place, and that has resulted in a buy signal in the market. This is because the EMA 11 is above the EMA 56, while the Williams' % Range period 20 is very close to the overbought region now. Should this reality hold out for a few more days, the price might be able to reach the resistance lines at 1.0950 and 1.0000.

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USD/CHF: The USD/CHF pair has consolidated so far this week moving sideways while the EUR/USD pair is making bullish effort. This shows that the USD/CHF pair might not be ready to be engaged in any bearish movement soon, unless the EUR/USD pair itself rallies with a surprising alacrity. As long as the price does not move below the support levels of 1.0100 and 1.0050, the bullish outlook would be in place.

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GBP/USD: There is essentially a new bullish signal on the cable owing to the bullish effort taken at the beginning of this week. There is a possibility that the price might reach the distribution territories of 1.4500 and 1.4550. On the downside, there are accumulation territories at 1.4250 and 1.4200, which might lead to a renewed bearish outlook in case they are broken to the downside.

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USD/JPY: Since the beginning of this week, this currency trading instrument has been coming down slowly and gradually posing a threat to the recent northward breakout. The price has come down by 120 pips after the opening bell, and once the price goes below the EMA 56 and the RSI period 14 goes below the level of 50, there would be a Bearish Confirmation Pattern in the market, which would signal further southward plunge.

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EUR/JPY: This cross is also challenged by the ongoing stamina in the yen. The EUR needs to gain a considerable amount of stamina for the price to go up. The indicators show that the bullish bias remains in place in the chart; until the RSI period 14 goes below the level of 50 and the EMA 11 crosses the EMA 56 to the downside.

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Daily analysis of USDX for February 03, 2016

The USDX is trying to consolidate below the 200 SMA in the H1 chart after a strong rejection around the zone of 99.75. Currently, it should be noted that the inflection area of 98.87 can produce a rebound and eventually, the index can resume the upside towards the zone around 100.00. However, if the USDX breaks the January 20 session's lows, then a downside could be developing towards the level of 98.45.

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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 USDX breaks with a bullish candlestick; the resistance level is seen at 99.23, take profit is at 99.43, and stop loss is at 99.03.

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Daily analysis of GBP/USD for February 03, 2016

In the H1 chart, we can see a higher high pattern formation above the support level of 1.4373, where a breakout could happen towards the level of 1.4466. We should note that the level of 1.4423 remains very strong, as during the sessions on February 1 and February 2 an inflection area was formed over there.The 200 SMA is slightly bullish supporting the current upside scenario.

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H1 chart's resistance levels: 1.4423 / 1.4466

H1 chart's support levels: 1.4373 / 1.4298

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 found at 1.4406, take profit is seen at 1.4531, and stop loss is at 1.4383.

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NZD/USD intraday technical levels and trading recommendations for February 2, 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 offering 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 and 0.6650.

Otherwise, a bearish closure below 0.6500 brings the pair inside the depicted consolidation range again extending it between 0.6400 and 0.6500.

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

Daily analysis of GOLD for February 02, 2016

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Overview

The gold price managed to touch the level of 1,130.60, which represents 61.8% Fibonacci level for the decline measured from 1,182.80 to 1,046.20. This signals that the price is about to to resume the bearish wave that is moving inside the main bearish channel as it is shown on the chart. Therefore, the decline will be expected in the upcoming sessions, and the targets begin by breaking 1,114.50 and 1,098.40 levels. The breaks will confirm the continuation of the bearish bias on a short-term basis, so the expected bearish trend will remain valid and active unless breaching the mark of 1,140.50 and holding above it.

The expected trading range for today is between the 1,100.00 support and 1,140.50 resistance.

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

USD/CAD intraday technical levels and trading recommendations for February 2, 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 from 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 1.4120 (Fibonacci Expansion 100%) was executed.

Bullish persistence above 1.4150 enhanced the bullish side of the market towards 1.4650 (141.4% Fibonacci expansion) where evident bearish rejection was expected (a bearish engulfing weekly candlestick).

The level of 1.4120 (Fibonacci Expansion 100%) remains a significant key level to be watched for price reaction during the current week's consolidations. It can offer a valid sell entry if the current bullish pullback persists towards 1.4120.

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 enough bearish momentum is expressed below the mentioned key level (1.4100) and prominent weekly support (1.4000).

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 1.4150 to secure our profits, while the next T/P level remains projected at 1.3800 if USD/CAD bears create enough bearish momentum below 1.4100 and 1.4000.

On the other hand, another SELL entry can be offered around 1.4120 (Fibonacci Expansion 100%) if the current bullish pullback persists towards it. S/L should be set as a daily closure above 1.4150.

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