Technical analysis of USD/CHF for February 19, 2016

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USD/JPY is showing strong downside momentum. Overnight, the US stocks edged lower after trading within a relatively tight range at the session. The Dow Jones Industrial Average declined 0.3% to 16413, the S&P 500 fell 0.5% to 1917, while the Nasdaq Composite was down 1.0% to 4487.

Nymex crude oil closed up 0.4% to $30.77 a barrel, gold rose 1.9% to $1,232 an ounce, while the benchmark 10-year Treasury yield declined to 1.760% from 1.819% at the previous session.

Meanwhile, the US dollar continued to strengthen against the euro, with EUR/USD edging down 0.2% to 1.1103, but reversed its course to drop against the yen, with USD/JPY falling 0.8% to 113.23. At the same time, the Australian dollar gave back some gains made at previous sessions as Australia reported the higher jobless rate. AUD/USD was down 0.4% to 0.7156. The pair has just broken below the level of 113.65 and is headed downward on strong momentum. The 20-period (30-minute chart), which stands below the 50-period one, is capping the pair's upward potential. At the same time, the intraday relative strength index, while being capped by a bearish trend line, is dropping toward the oversold level of 30. The intraday outlook is very bearish, and the pair could return to the first downside target at 112.25.

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 112.25. A break of this target will move the pair further downwards to 111.65. The pivot point stands at 113.65. 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 114.45 and the second target at 114.90.

Resistance levels: 114.45, 114.90, 115.25

Support levels: 112.25, 111.65, 111.25

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Technical analysis of USD/CHF for February 19, 2016

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USD/CHF is expected to trade in a higher range as the bias remains bullish. The pair stays above its key support at 0.9890 and remains on the upside. Meanwhile ,the intraday RSI lacks downward momentum. Further upside is therefore expected with the next horizontal resistance and overlap set at 0.9990 first. A breakout above this level would call for a further advance toward 0.9985.

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. Therefore, long positions are recommended with the first target at 0.9985 and the second one at 1.0030. In the alternative scenario, short positions are recommended with the first target at 0.9840 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 0.9785. The pivot point is at 0.9890.

Resistance levels: 0.9985, 1.0030, 1.0060

Support levels: 0.9840, 0.9785, 0.9750

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Technical analysis of NZD/USD for February 19, 2016

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NZD/USD is expected to trade in a lower range as the key resistance is seen at 0.6645. The pair stays below its key resistance at 1.3765 and remains on the downside. Meanwhile, the relative strength index lacks upward momentum. The first target to the downside is therefore set at 0.6575. A breakout below this level would open the way to further weakness toward 0.6540.

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 0.6575. A break of this target will move the pair further downwards to 0.6540. The pivot point stands at 0.6645. 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 0.6675 and the second target at 0.67.

Resistance levels: 0.6675, 0.67, 0.6745

Support levels: 0.6575, 0.6540, 0.6505

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Technical analysis of GBP/JPY for February 19, 2016

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GBP/JPY is under pressure now. The pair has been capped by its descending 20-period moving average and remains under pressure. Meanwhile, the declining 50-period moving average also maintains a bearish bias. The first target to the downside is set at the horizontal support and overlap at 159.80. A breakout below this level would open the way to further weakness toward 159.30.

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 159.80. A break of this target will move the pair further downwards to 159.30. The pivot point stands at 162.50. 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 163.15 and the second target at 163.85.

Resistance levels: 163.15, 163.85, 164.35

Support levels: 159.80, 159.30, 158.65

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EUR/NZD analysis for February 19, 2016

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Overview :

Recently, EUR/NZD has been moving sideways around the level of 1.6760. In the daily time frame, I found a supply bar in a volume below the average. In the 4-hour time frame, we can observe strong rejection from our resistance cluster (1.7025). Therefore, be careful when buying EUR/NZD at this stage and watch for potential selling opportunities. Our Fibonacci expansion 61.8% at 1.6720 is on the test. If the price breaks the level of 1.6720, we may expect potential testing of Fibonacci expansion 100% at 1.6525, and Fibonacci expansion 161.8% at 1.6210. Watch for potential selling opportunities on rallies. Moving averages are headed sideways. According to M30 time frame, I found a trading range between the level of 1.6700 (support) and the level of 1.6835 (resistance). Watch for potential breakout of trading range to confirm further direction.

Fibonacci Pivot Points:

Resistance levels:

R1: 1.6780

R2: 1.6800

R3: 1.6845

Support levels:

S1: 1.6700

S2: 1.6675

S3: 1.6635

Trading recommendation: A spike in an ultra-high volume (potential buying climax) is seen in the background. Be careful when buying EUR/NZD and watch for potential selling opportunities.

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Gold analysis for February 19, 2016

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Overview:

Since our last analysis, gold has been trading upwards. As I expected, the price tested the level of $1,239.75.Sellers had no power to break through our support level at $1,196.00. In the daily time frame, I found a solid demand bar in an average volume. The demand remained high, which is a sign that selling gold looks risky at this stage. The trend is upward according to the intraday and short-term time frames. Our Fibonacci retracement 61.8% at the level of $1,134.00 is on the test. If the price breaks the level of $1,134.00, we may see potential testing of $1,263.00. In the H4 time frame, I found very weak supply. The price is above all key MA`s in the short-term frames.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,246.00

R2: 1,261.00

R3: 1,284.00

Support levels:

S1: 1,209.00

S2: 1,186.50

S3: 1,171.35

Trading recommendations: Be careful when selling gold and watch for potential buying opportunities on dips.

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Global macro overview for 19/02/2016

Global macro overview for 19/02/2016:

The UK retail sales data has crushed the market expectations today. The better-than-expected numbers surprised market participants. Retail sales including auto fuel came in at the level of 2.3% m/m; (5.2% y/y) vs. 0.8% m/m; (3.6% y/y) and -1.4% m/m; (2.3% y/y) prior. Average store prices dropped 2.6% and January is usually a month of big sales, so that could be the main reason why sales were so high. In conclusion, the UK customers are doing great amid the talks of a possible Brexit, so the overall sentiment is still positive.

Let's now take a look at the GBP/USD technical picture following the data release. After breaking the golden trend-line support, the pair tested it several times and now both sides, bulls and bears, are fighting to regain the control over the market. Any new lower low would mean bears are in control and the test of the support at the level of 1.4150 might be expected. On the other hand, any breakout above the level of 1.4400 would enable bulls to regain control and then the test of the dark brown line should be expected soon.

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Global macro overview for 19/02/2016

Global macro overview for 19/02/2016:

The US jobs data were released yesterday and it showed an unexpected decline to the level of 262,000, which was less than market expectations of 275,000. This data are reinforcing the view the labor market continued to strengthen as initial claims for state unemployment benefits decreased to the lowest level since November. Claims have now been holding below 300,000, which is associated with a healthy labor market, for 50 consecutive weeks - the longest period since the early 1970s. In conclusion, the data-depended Fed should now get some more evidence to justify further rate hikes as the labor market is slowly and gradually improving.

Let's now take a look at the EUR/USD pair following the data release. The golden trend-line support has been broken and now the market trades close to the important technical support at the level of 1.1059. Any breakout below this level would put bears back into control. Any bounce from this level would strengthen the bullish control over the market and would lead to test at the golden trend line.

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Technical analysis of NZD/USD for February 19, 2016

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Overview:

  • The NZD/USD pair fell sharply from the level of 0.6641 towards 0.6610. Now, the price is set at 0.6615. The resistance is seen at the level of 0.6641 and 0.6663. Moreover, the price area of 0.6641/0.6663 remains a significant resistance zone. Therefore, there is a possibility that the NZD/USD pair will move downside and the structure of a fall does not look corrective. The trend is still below the 100 EMA for that the bearish outlook remains the same as long as the 100 EMA is headed to the downside. Thus, amid the previous events, the price is still moving between the levels of 0.6641 and 0.6590. If the NZD/USD pair fails to break through the resistance level of 0.6641, the market will decline further to 0.6590 as as the first target. This would suggest a bearish market because the RSI indicator is still in a negative spot and does not show any trend-reversal signs. The pair is expected to drop lower towards at least 0.6567 so as to test the daily support 2. On the contrary, if a breakout takes place at the resistance level of 0.6663, then this scenario may become invalidated.
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Technical analysis of USD/CHF for February 19, 2016

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Overview:

  • The USD/CHF pair continues to move upwards from the level of 0.9863. Yesterday, the pair rose from the level of 0.9863 to a top around 0.9950. Today, the first resistance level is seen at 0.9990 followed by 1.0077, while daily support 1 is seen at 0.9863 (38.2% Fibonacci retracement). According to the previous events, the USD/CHF pair is still moving between the levels of 0.9900 and 0.9990; so we expect a range of 90 pips. Furthermore, if the trend is able to break out through the first resistance level at 0.9990, we should see the pair climbing towards the double top (1.0077) to test it.
  • Therefore, buy above the level of 0.9900 with the first target at 0.9990 in order to test the daily resistance 1 and further to 1.0077. Also, it might be noted that the level of 1.0077 is a good place to take profit because it will form a double top.
  • On the other hand, in case a reversal takes place and the USD/CHF pair breaks through the support level of 0.9866, a further decline to 0.9789 can occur which would indicate a bearish market.
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NZD/USD intraday technical levels and trading recommendations for February 19, 2016

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A daily closure below 0.6750 allowed a quick bearish decline to occur towards the level of 0.6500 that was broken to the downside as well.

However, the levels of 0.6400-0.6350 constituted a significant support zone. Hence, a strong bullish rejection was expressed on January 20 (inverted head and shoulders pattern).

Since January 26, bullish persistence above 0.6500 was mandatory to keep pushing the NZD/USD pair towards higher bullish targets.

However, a temporary bearish rejection has been expressed around 0.6550 for almost two weeks resulting in a depicted consolidation range.

On January 28, the depicted support level of 0.6400 acted as the prominent key level offering a valid buy entry. A bullish breakout above 0.6550 has been executed earlier last week.

Bullish persistence above 0.6550 (depicted recent support) was needed to keep the price moving towards higher bullish targets.

The area of 0.6700-0.6750 constituted a significant resistance zone. Recent signs of a bearish rejection were seen during last week's consolidations near the same zone.

On February 9, the NZD/USD pair failed to consolidate below 0.6570 (depicted support level). Hence, a bullish pullback took place towards 0.6700 where a recent bearish movement was initiated.

Obvious bullish recovery was expressed at 0.6570 (a temporary support level) On Wednesday.

On the other hand, the level of 0.6700 will remain a significant resistance level to offer a valid sell entry.

Note that persistence below 0.6570 is mandatory to allow further bearish decline towards the zone of 0.6550 - 0.6500 where the price reaction should be watched for a possible buy entry.

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USD/CAD intraday technical levels and trading recommendations for February 19, 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 to 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 an evident bearish rejection was expected (a bearish engulfing weekly candlestick).

The recent bullish recovery was manifested around the level of 1.3750. That is why the recent bullish pullback took place towards 1.4000 during the last week.

The level of 1.4120 (Fibonacci Expansion 100%) remains a significant key-level to be watched for further price reactions.

It may offer a valid sell entry if bullish pullback takes place above 1.3950 which is a low probability after the depicted lower high was reached at 1.3970.

On the other hand, the zone of 1.3370-1.3400 remains a significant support zone to be watched for a valid buy entry when the current bearish momentum extends below the prominent weekly support level of 1.3600.

Trading recommendations:

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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Intraday technical levels and trading recommendations for GBP/USD for February 19, 2016

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In June 2015, the pair pushed above the depicted level of 1.5550 trying to reach the zone of 1.5900 where the depicted Head and Shoulders pattern was formed.

In November 2015, a bearish engulfing weekly candlestick closed below the level of 1.5200 (the neckline of the Head and Shoulders pattern). This enhanced the bearish side of the market in the long term.

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 moved below 1.4220, evident signs of bullish recovery were expressed around 1.4075. Hence, the previous few weekly candlesticks closed above 1.4220 and 1.4360 again, indicating strong bullish demand.

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

Recent bearish rejection was initiated at 1.4615 (a broken weekly demand level). It is currently acting as a strong supply level.

On the other hand, the price zone of 1.4360-1.4220 remains a significant demand zone to be watched for a possible buy entry similar to what happened few weeks ago.

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On February 4, the market failed to close above 1.4615. An inverted hammer daily candlestick was expressed. Hence, a bearish pullback took place towards 1.4360.

Later on February 8, the market expressed significant bullish rejection around 1.4360.

This led to a quick bullish swing towards 1.4570 where recent bearish pressure was applied. Hence, another bearish swing towards 1.4360 was performed last week.

Note that the GBP/USD pair remains trapped between 1.4615 and 1.4220 until a breakout occurs in either direction. These levels are important key levels that determine the next destination of the pair.

Note that the recent lower high was hit at the level of 1.4530, which enhanced ongoing bearish momentum towards the zone of 1.4360-1.4220.

Although the level of 1.4360 acted as a demand level for the GBP/USD pair, a temporary bearish breakout below 1.4360 was manifested on the daily chart.

A quick bearish decline towards 1.4220 and a valid buy entry were suggested in the area around this level.

Trading recommendations:

The territory of 1.4360-1.4220 remains a significant demand zone to be watched for a possible buy entry similar to what happened two weeks ago.

Conservative traders who missed on the initial buy entry around 1.4220 can wait for a bullish closure above 1.4360 to buy the GBP/USD pair. The initial T/P level should be located at 1.4530.

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Intraday technical levels and trading recommendations for EUR/USD for February 19, 2016

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In January 2015, the EUR/USD pair moved below the major demand levels near 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.

In March 2015, EUR/USD bears challenged the monthly demand level of 1.0570, which was hit in August 1997.

Later in April 2015, strong bullish recovery was observed around the mentioned demand level.

The April candlestick came as bullish engulfing one. However, next monthly candlesticks (September, October, and November) reflected strong bearish rejection in the area around the level of 1.1400.

December's candlestick came as bullish engulfing one allowing the current bullish pullback to take place towards 1.1370.

The zone of 1.1350-1.1400 remains a significant Supply Zone to be watched during the current bullish pullback. As we expected, recent bearish rejection is currently being manifested.

The level of 0.9450 will remain a long-term bearish target in case the current monthly candlestick closes below the depicted demand level of 1.0570.

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In October 2015, the Daily Supply Zone of 1.1360-1.1400 produced significant bearish pressure shortly after the EUR/USD pair spiked above the level of 1.1500 (daily supply level).

A bearish breakout of the depicted uptrend was performed later on October 23. This enhanced a long-term bearish scenario with targets at 1.0800 and 1.0600.

In 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 current bullish swing was initiated.

During the last few weeks, the level of 1.1000 was providing significant bearish rejection. Hence, a consolidation range extending between 1.1000 and 1.0800 was established on the daily chart. On February 3, a bullish breakout was executed above this consolidation range.

That's why, a quick bullish movement took place towards the zone of 1.1350-1.1450 where previous daily bottoms and the backside of the broken uptrend are depicted on the daily chart. On Friday, a strong bearish engulfing daily candlestick was expressed by the end of the day.

Hence, a quick bearish decline towards 1.1100 should be expected as long as the market keeps trading below 1.1200.

Trading Recommendations:

Previously, traders were advised to sell the EUR/USD pair anywhere around the levels of 1.1350-1.1400. This position is already running in profits. S/L should be lowered to 1.1205 to secure our profits.

For those who missed on the initial trade, another sell entry can be offered at the level of 1.1215 if a bullish pullback occurs above 1.1170. S/L should be located above 1.1250.

On the other hand, a low-risky buy entry can be offered around the recently broken consolidation range near 1.1000 if the current bearish pullback extends below 1.1150.

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Technical analysis of EUR/JPY for Febuary 19, 2016

General overview for 19/02/2016:

The higher time frame wave progression shows a complex and time consuming double-three pattern labeled on chart as ABC-X-ABC. The leg C of the pattern looks completed and the market might start to rally any time soon. Nevertheless, it is worth to mention, that this pattern might evolve to even more complex correction called triple three, which will be labeled as ABC-X-ABC-X-ABC. That means there is another big ABC leg to be made according to this scenario.

Support/Resistance:

125.02 - WS1

126.61 - Intraday Resistance

125.73 - Local Low

127.98 - Weekly Pivot

128.26 - Intraday Resistance

130.13 - WR1

133.09 - WR2

Trading recommendations:

Day traders should refrain from trading and wait for a better trading setup to occur in the nearest term.

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Ichimoku indicator analysis of USDX for February 19, 2016

The Dollar index has broken the short-term upward sloping channel as we expected and is turning lower. Important resistance remains at the 38% Fibonacci retracement which is still not broken upwards.

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Blue lines - bullish channel

The Dollar index is now below the Tenkan-Sen (red line indicator) but still inside the Kumo (cloud) and above the Kijun-Sen support (yellow line indicator). Trend is neutral. Bulls are still not able to break above the 38% Fibonacci retracement. This is not a good sign. Breaking below 96 will be a bearish sign and will start a new downward move to new lows.

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As we expected, the weekly candle bounced and back tested the broken Kijun-Sen and Tenkan-Sen, but it shows signs of rejection as it cannot break above the Tenkan-Sen (red line indicator). A weekly close back inside the Kumo (cloud) will be a bearish sign, and we will probably see a deeper correction next week.The material has been provided by InstaForex Company - www.instaforex.com

Ichimoku indicator analysis of gold for February 19, 2016

Gold price broke out and above the short-term triangle pattern yesterday, then it moved towards our first target around $1,230-40 and reversed. If the price breaks below $1,200, we should expect price to move towards $1,150-60.

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Black lines - broken triangle pattern

Gold price is above the Tenkan- and Kijun-Sen indicators but inside the Kumo (Cloud). Support is at the base of the triangle pattern at $1,200. Resistance is at last night highs. If the highs are taken out, we should expect the price to move towards $1,260-90.

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Red lines - downward sloping wedge

Gold has broken above the downward sloping wedge and the Ichimoku cloud. This week we witnessed a back test of this breakout. The key weekly support is at $1,190-1,200 levels. The price tested support once again and bounced towards previous highs. Oscillators are still not at overbought levels so we could expect more upside.

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Technical analysis of USD/CAD for Febuary 19, 2016

General overview for 19/02/2016:

As anticipated yesterday, a rebound to the upside in an impulsive fashion has been made overnight and bulls are trying to regain the control. The current intraday count looks a little bit bullish as the wave (c) blue has not been developed yet. In case of a breakout below the level of 1.3637, the alternative count will be in play. From a bigger time frame view: the corrective cycle from a top of 1.4687 is still in progress, but it is evolved into a complex corrective structure. Within that structure, there is a missing wave Y brown to the downside.

Support/Resistance:

1.3637 - Local Low|Intraday Support|

1.3648 - WS2

1.3746 - WS1

1.3880 - Weekly Pivot

1.3911 - Intraday Resistance

1.3972 - WR1

1.4014 - Technical Resistance

1.4108 - WR2

Trading recommendations:

Buying on dips is a proper way to trade on this market as an uptrend is still in play. The corrective cycle is violating the support levels, but the most important support at the level of 1.3637 has not been broken yet. Bulls are still in control in the market, but no confirmation of a bullish reversal has been received yet.

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Technical analysis of Silver for February 19, 2016

Technical outlook and chart setups:

Silver is trading at the levels of $15.38/39 at this moment after pulling back from $15.55/56 hit today. The metal was expected to complete its counter-trend rally through the levels of $15.60/70 since it is the Fibonacci 0.618 resistance level as depicted on the chart. Also note that the support turned resistance trend line is also passing through $15.60/70 and has potential to produce bearish reversal. The metal has reversed from Fibonacci 0.50 resistance for now, but potential still remains for a final push towards $15.60 and then a drop lower. It is hence recommended to remain 50% short now at the level of $15.60, with risk at $15.80. Immediate interim support is seen at $15.20 levels, while resistance is at $15.80.

Trading recommendations:

Remain short at $15.60 with stop at $15.80, a target is at $14.60.

Good luck!

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Technical analysis of Gold for February 19, 2016

Technical outlook and chart setups:

Gold is trading at $1,225.00/26.00 after having hit resistance at $1,240.00 in early hours of today's trade. Please note that we had expected this counter-trend rally to terminate around $1,235.00 levels, and discussed the same earlier. Furthermore, please note that the metal has reversed from a convergence of Fibonacci 0.618 resistance and the support trend line resistance as seen here. The metal might push through $1,233.00/34.00 for one last time before dropping lower towards $1,163.00 and $1,146.00. It is hence recommended to remain short now with risk at $1,265.00/66.00. Immediate resistance is seen at $1,250.00, while support is seen at $1,200.00.

Trading recommendations:

Remain short now with stop at $1,265.00/66.00, a target is at $1,146.00.

Good luck!

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Technical analysis of EUR/JPY for February 19, 2016

Technical outlook and chart setups:

The EUR/JPY pair has dropped lower as discussed earlier and is now trading at the levels of 125.75/76. The pair is facing interim channel line resistance at 126.90 now, as seen here, and could continue moving lower towards 124.60 and 124.00. Bears are expected to remain in control until prices stay below 126.25/50 from here. Please note that 124.00 seems to be in sight before the pair could produce a meaningful retracement. It is hence recommended to remain short and move stop to the level of 126.60. Immediate resistance is seen at 126.30, while support is at 124.60. Only a breakout above 126.50 and subsequently 127.00 would delay the drop.

Trading recommendations:

Remain short, stop is at 126.50, a target is 124.00.

Good luck!

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

Technical analysis of GBP/CHF for January 27, 2016

Technical outlook and chart setups:

The GBP/CHF pair is trading near the levels of 1.4210/12 at this moment, looking for an opportunity to push higher towards 1.4450 and 1.4550. Please note that the pair had broken out of the resistance trend line earlier, and also hit interim lows of 1.4040 levels earlier. Also note that the level of 1.4040 was formed at resistance-turned-support trend line as seen here. The pair is moving slowly but surely higher since then and bulls are expected to remain in control until the pair stays above 1.4040. It is recommended to remain long, and move risks to 1.4000. Immediate interim support is seen at 1.4040, while resistance is seen at 1.4450.

Trading recommendations:

Remain long, stop is at 1.4000, a target is at 1.4450/60 and 1.4560/70.

Good luck!

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Technical analysis of EUR/USD for February 19, 2016

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When the European market opens, some economic news on the Consumer Confidence and German PPI m/m is due to be released. The US will publish the economic data on the Core CPI m/m and CPI 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: 1.1187.

Strong Resistance:1.1181.

Original Resistance: 1.1170.

Inner Sell Area: 1.1159.

Target Inner Area: 1.1133.

Inner Buy Area: 1.1107.

Original Support: 1.1096.

Strong Support: 1.1085.

Breakout SELL Level: 1.1079.

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 19, 2016

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Technical analysis of USD/JPY for February 19, 2016

In Asia, Japan will release data on the All Industries Activity m/m. The US will deliver economic data on the Core CPI m/m and CPI 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: 113.63.

Resistance. 2: 113.34.

Resistance. 1: 113.05.

Support. 1: 112.69.

Support. 2: 112.40.

Support. 3: 112.10.

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

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

Daily analysis of USDX for February 19, 2016

On the H1 chart, the USDX is performing a dynamic rebound above the level of 96.80 with a strong focus on performing a rally to the level of 97.36. However, if the index achieves in breaking the support level of 96.80, then we can expect a bearish continuation towards the level of 96.40, which is our short-term target. The MACD indicator is still in the negative territory, supporting a bearish idea.

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H1 chart's resistance levels: 97.36 / 97.77

H1 chart's support levels: 96.80 / 96.40

Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the USDX breaks with a bearish candlestick; the support level is seen at 96.80, take profit is at 96.40, and stop loss is at 97.20.

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

Daily analysis of GBP/USD for February 19, 2016

GBP/USD did a pullback from the resistance level of 1.4369 and now. It is looking for an opportunity to do another decline towards the level of 1.4282. A breakout below that zone will open the doors to test the level of 1.4206. Another scenario is showing us a possible attempt to break out above the zone of 1.4369 in order to do a possible short-term bullish consolidation.

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H1 chart's resistance levels: 1.4369 / 1.4436

H1 chart's support levels: 1.4282 / 1.4206

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 found at 1.4282, take profit is at 1.4206, and stop loss is at 1.4470.

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

Daily analysis of major pairs for February 19, 2016

EUR/USD: The gradual weakness in the EUR/USD pair has finally led to an invalidation of the recent bullish bias. The price is below the EMA 11, which is below the EMA 56. The Williams' % Range period 20 has long been around the oversold territory. The support lines at 1.1050 and 1.1000 stand a chance of being tested.

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USD/CHF: There is a bullish signal indication in this market, because the price has moved upwards by 180 pips this week, pushing against the resistance level of 0.9950. The EMA 11 has crossed the EMA 56 to the upside and the Williams' % Range period 20 is in the overbought region. The bullish signal would become more conspicuous as the price goes further north.

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GBP/USD: This pair has faced strong opposition at the accumulation territory of 1.4250, and there is a lot of trading activity around that accumulation territory. This is because bulls are making desperate attempts to push the price upwards, which is not an easy thing, given the current Bearish Confirmation Pattern in the chart. Unless bears fail to push the price below the accumulation territory of 1.4250, it is better to seek short trades here.

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USD/JPY: This currency trading instrument has been moving sideways from Monday till now. But a closer look at the market reveals that bears are gaining strength again, while the bias remains bearish on the market. There is a possibility that the price could test the demand levels of 112.50 and 112.00 today or next week.

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EUR/JPY: From a high reached on February 16, 2016, the EUR/JPY pair has come down by 200 pips, testing the demand zone of 126.00. There is a a high probability that this demand will be breached to the downside, owing to the bearish outlook for the market. In case the price goes further south, the next target would be the demand zone at 125.00.

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Technical analysis of USD/JPY for February 18, 2016

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USD/JPY is expected to trade with bearish bias.Overnight, U.S. stocks closed higher again thanks to buying of energy shares (driven by oil prices' rally), bank and consumer discretionary shares. The Dow Jones Industrial Average gained 1.6% to 16,453, the S&P 500 also rose 1.6% to 1,926, while the Nasdaq Composite was up 2.2% to 4,534.

Nymex crude oil surged 5.6% to $30.66 a barrel, gold added 0.7% to $1,209 an ounce, while the benchmark 10-year Treasury yield jumped further to 1.819% from 1.779% in the previous session.

Meanwhile, the U.S. dollar did not get much higher as minutes from the Federal Reserve's January meeting failed to provide clarity on when the central bank will raise interest rates again. EUR/USD edged down 0.1% to 1.1127, while USD/CHF gained 0.4% to 0.9919. At the same time, USD/CAD plunged 1.4% to 1.3667 as the Canadian dollar appreciated with oil prices. The pair is trading within a bearish channel while hovering around the 20- and 50-period moving averages. A break below the channel's lower boundary would trigger a further drop towards the first downside target at 113 and the second one at 112.25.

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 113. A break of this target will move the pair further downwards to 112.25. The pivot point stands at 114.40. 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 114.90 and the second target at 115.25.

Resistance levels: 114.90, 115.25, 115.85

Support levels: 113, 112.25, 112

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Daily analysis of GOLD for February 18, 2016

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Overview

As we mentioned in our last reports, breaching the level of 1,212.34 will ease the price mission to head towards the recently recorded top at 1,263.23. Until now, we still suggest the bullish trend unless breaking the 1180.86 level and holding below it, noting that our positive targets begin at 1,263.23 and extend to 1,300.00 on the near-term basis. In general, the bullish trend scenario remains valid and is expected in the upcoming period if the price settles above the 1,180.86 level. Breaching 1,263.23 levels will push the price to 1,155.42 and then probably to 1130.00 before any new attempt to rise.

The expected trading range for today is between 1,180.00 support and 1,240.00 resistance.

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

Daily analysis of SILVER for February 18, 2016

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Overview

According to the shown H4 chart, the silver price continues fluctuating between the critical levels of 15.15 (support) and 15.70 (resistance), waiting to breach one of them in order to detect next targets clearly. This support represents a potential neckline for a bearish technical pattern that is forming on the chart currently. A break of this level will make the price try to regain the main bearish trend. Negative targets begin at 14.67 and extend to 14.27. On the other hand, breaching 15.70 levels will lead the price to achieve more gains than its next target and reach to the previously recorded top at 16.35. Therefore, we will keep our neutrality until we get a clearer confirmation signal for the next trend.

The expected trading range for today is between 14.67 support and 15.70 resistance.

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NZD/USD intraday technical levels and trading recommendations for February 18, 2016

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A daily closure below 0.6750 allowed a quick bearish decline to occur towards the level of 0.6500 that was broken to the downside as well.

However, the levels of 0.6400-0.6350 constituted a significant support zone. Hence, a strong bullish rejection was expressed on January 20 (inverted head and shoulders pattern).

Since January 26, bullish persistence above 0.6500 was mandatory to keep pushing the NZD/USD pair towards higher bullish targets.

However, a temporary bearish rejection has been expressed around 0.6550 for almost two weeks resulting in a depicted consolidation range.

On January 28, the depicted support level of 0.6400 acted as a prominent key level offering a valid buy entry. A bullish breakout above 0.6550 has been executed earlier last week.

Bullish persistence above 0.6550 (depicted recent support) was needed to keep the price moving towards higher bullish targets.

The area of 0.6700-0.6750 constituted a significant resistance zone. Recent signs of a bearish rejection were seen during last week's consolidations near the same zone.

On February 9, the NZD/USD pair failed to consolidate below 0.6570 (depicted support level). Hence, a bullish pullback took place towards 0.6700 where a recent bearish movement was initiated.

Yesterday, obvious bullish recovery was expressed at 0.6570 (a temporary support level). On the other hand, the level of 0.6700 will remain a significant resistance level to offer a valid sell entry.

Note that persistence below 0.6570 is mandatory to allow further bearish decline towards the zone of 0.6550 - 0.6500 where the price reaction should be watched for a possible buy entry.

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