NZD/USD intraday technical levels and trading recommendations for February 22, 2016

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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 the 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 the previous few weeks near the same zone.

On February 9, the NZD/USD pair failed to consolidate below the depicted support level of 0.6570.

Moreover, obvious bullish recovery was expressed at 0.6570 (temporary support level) Wednesday.

The zone of 0.6700-0.6750 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 22, 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 (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 a 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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EUR/NZD analysis for February 22, 2016

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Overview :

Recently, EUR/NZD has been moving downwards. As I expected, the price tested the level of 1.6549 in a high volume. In the daily time frame, I found a weak demand bar, which made the price head downwards. In the 4-hour time frame, we can observe a strong rejection from our resistance cluster (1.7025). Therefore, be careful when buying EUR/NZD at this stage and watch for potential selling opportunities. The level of 1.6700 may be a good level for selling. I found strong support around the price of 1.6520-1.6450 (Fibonacci expansions 100% and swing low). Moving averages are heading downward. A breakout of the level 1.6450 may confirm potential testing of 1.6180 (Fibonacci expansion 161.8%).

Fibonacci Pivot Points:

Resistance levels:

R1: 1.6865

R2: 1.6910

R3: 1.6980

Support levels:

S1: 1.6720

S2: 1.6670

S3: 1.6600

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 22, 2016

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Overview:

Since our last analysis, gold has been trading downwards. The price tested the level of $1,202.45. Our support at the price of $1,196.00 is on the test again. In the daily time frame, I found a neutral bar with a very low spread. Supply is overcoming demand and buying gold at this stage look risky. According to the H4 time frame, I found buying climax in the background, which is a sign that buying looks risky. I have placed Fibonacci expansion to find potential support levels and downward targets and got Fibonacci expansion 61.8% at the price of $1,195.00, Fibonacci expansion 100% at the price of $1,168.00 and Fibonacci expansion 161.8% at the price of $1,123.00. Watch for a potential breakout of $1,191.00 to confirm further downward side.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,226.70

R2: 1,227.00

R3: 1,280.40

Support levels:

S1: 1,224.70

S2: 1,124.00

S3: 1,123.00

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

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Intraday technical levels and trading recommendations for GBP/USD for February 22, 2016

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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, previous 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.

However, recent bearish rejection was expressed at 1.4615 (a broken weekly demand level). It is currently acting as a recent strong supply level.

On the other hand, the price zone of 1.4300-1.4200 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.

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 a recent lower high was established at the level of 1.4530, which enhanced the current bearish momentum towards the demand levels of 1.4360 and 1.4220.

Although a bearish breakout below 1.4220 is manifested on the daily chart, signs of bullish recovery should be expected around the current price levels down to 1.4075.

Taking into consideration what happened back on January 21, bullish reversal and a valid buy entry remain possible as long as the market keeps defending the territory of 1.4100-1.4070. If not, the bearish scenario would be invalidated for the current time.

Trading recommendations:

The territory of 1.4220-1.4120 remains a demand zone to be watched for a possible buy entry similar to what happened in January 2016.

On the other hand, conservative traders should wait for a bullish closure above 1.4360 to BUY the GBP/USD pair.

Initial T/P level would be located at 1.4530.

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Intraday technical levels and trading recommendations for EUR/USD for February 22, 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 set 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 previously established in August 1997.

Later, in April 2015, 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 in the area around 1.1400.

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

The zone of 1.1350-1.1400 remains a key 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 February 12, a strong bearish engulfing daily candlestick was expressed around the mentioned supply level. 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 around 1.1350-1.1400. This position is already running in profits. S/L should be lowered to 1.1150 to secure our profits.

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

On the other hand, a buy entry with a minimum risk can be offered around the recently broken consolidation range near 1.1000 if the current bearish pullback persists below 1.1100.

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Technical analysis of EUR/USD for February 22, 2016

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Overview:

  • On the one-hour chart, the EUR/USD pair continues moving in a bearish trend from the resistance level of 1.1149.
  • Currently, the price is in a bearish channel. This is confirmed by the RSI indicator signaling that we are still in a bullish trending market.
  • The bias remains bearish in the nearest term testing 1.1047 and 1.0965. Immediate resistance is seen around 1.1149 levels, which coincides with the weekly pivot.
  • Moreover, the moving average (100) starts signaling a downward trend; therefore, the market is indicating a bearish opportunity below 1.1100. So it will be good to sell at 1.1100 with the first target of 1.1047.
  • It will also call for a downtrend in order to continue towards 1.0965. The strong weekly support is seen at 1.0965.
  • However, if a breakout happens at the resistance level of 1.1149, then this scenario may be invalidated.

Weekly technical levels:

  • R3: 1.1415
  • R2: 1.1333
  • R1: 1.1231
  • PP: 1.1149
  • S1: 1.1047
  • S2: 1.0965
  • S3: 1.0863
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Technical analysis of GBP/USD for February 22, 2016

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Overview:

  • The market opened below the weekly pivot point. It continued to move downwards from the level of 1.4305 to the bottom around 1.4150. Today, the first resistance level is seen at 1.4248 followed by 1.4305, while daily support 1 is seen at 1.4090. The GBP/USD pair broke support which turned to strong support at 1.4248. Right now, the pair is trading below this level. It is likely to trade in a lower range as long as it remains below the support (1.4248) which is expected to act as major support today. This would suggest a bearish market because the moving average (100) is still in a negative area and does not show any signs of a trend reversal at the moment. Amid the previous events, the GBP/USD pair is still moving between the levels of 1.4248 and 1.4090, so we expect a range of 158 pips in coming days. Therefore, the major resistance can be found at 1.4248 providing a clear signal to sell with a target seen at 1.4135. If the trend breaks the minor support at 1.4135, the pair will move upwards continuing the bearish trend development to the level of 1.4090 in order to test the daily support 2. Overall, we still prefer the bearish scenario which suggests that the pair will stay below the zone of 1.4248/1.4305 this week.
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Global macro overview for 22/02/2016

Global macro overview for 22/02/2016:

After 30-hour long negotiations with EU politicians, British Prime Minister David Cameron managed to secure the first date for the EU membership referendum on June 23, 2016. Moreover, at the press conference Cameron said that: "UK will never be a part of EU super state", setting the general stance among the fellow UK citizens. His words have found the support very fast in form of remarks from another important politician, Major of London Boris Johnson, who backs the UK exit from the EU as well. In conclusion, we can clearly observe a progression of one of the most important event of the year that clearly can change a lot on the economic and political scene in Europe. The question remains, whether the UK citizens have the same view on the EU membership deal as the Prime Minister.

Let's now take a look at the GBP/USD pair after the news has been released. The pound is clearly sliding downside after leaving the weekend gap open and currently is trading at the technical support at the level of 1.4150. Any break out below this level would accelerate losses and bears would be in full control of the market.

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Global macro overview for 22/02/2016

Global macro overview for 22/02/2016:

The ECB Vice-President Vitor Constancio made remarks in the weekend that the inflation level that can not be reached despite the desperate measures from ECB. These comments could make the regulator deliver more stimulus in March. The decision has not been made yet, because Mr. Constancio still believes the EU is making slow progress towards recovery. Nevertheless, he admitted that it is quite possible that the European economy will soon see data showing negative inflation readings, given the recent shock of a peristent energy price fall. To conclude, we might sum up the facts about the current EU situation delivered by hard data: the economic figures. The EU's annual economy grew at 1.1% pace, less than in 2008 and it is still struggling with such problems as a slower growth rate, slump in bank shares as well as the refugee crisis. The EU responded by cutting the interest rate to -0.3%, but even that move did not help to reach the projected 2% inflation levels. So, next month the ECB deeper interest-rate cut might be almost certain.

Let's now take a look at technical picture of the EUR/USD pair. After breaking the golden trend line support, the pair is still trading above the important technical support at the level of 1.1059. Any violation of this level with a daily candle close below it will put bears back into control and even lower levels should be expected then.

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Technical analysis of USD/JPY for February 22, 2016

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USD/JPY is expected to trade in a lower range as key resistance is set at 113.20.Last Friday U.S. stocks held steady, with the Dow Jones Industrial Average easing 0.1% to 16391, the S&P 500 being flat at 1917, and the Nasdaq Composite gaining 0.4% to 4504. The U.S. government reported that CPI excluding food and energy grew 2.2% on-year in January, the most since June 2012, suggesting that the Federal Reserve still has grounds to raise interest rates within the year.

Nymex crude oil lost 3.7% to $29.64 a barrel, gold declined 0.3% to $1,228 an ounce, while the benchmark 10-year Treasury yield eased to 1.750% from 1.762% in the previous session.

On the forex front, GBP/USD gained 0.5% to 1.4404 last Friday as the British Prime Minister struck a deal concerning membership terms with European Union leaders. However this morning it reversed course to drop over 1.0% down to 1.4230 after London Mayor Boris Johnson voiced his support for Britain to leave the EU in a June referendum. The pair is posting a rebound after testing the first downside target at 112.35. Currently, it is challenging the 50-period (30-minute chart) on the upside. However, the key resistance at 113.20 (which the pair had repeatedly failed to break above) remain a cap to any upside potential. If the pair fails again to surpass 113.20, expect a return to 112.35 and in extension to 111.65 (a level of over-lapping support and resistance seen on February 12).

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 112.35. A break of this target will move the pair further downwards to 111.65. The pivot point stands at 113.20. 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 113.65 and the second target at 114.15.

Resistance levels: 113.65, 114.15, 114.45 Support levels: 112.35, 111.65, 111.25

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Technical analysis of USD/CHF for February 22, 2016

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USD/CHF is expected to trade in a higher range as a bias remains bullish. The pair stands above its key support at 0.9885 and remains on the upside. Meanwhile, the 20-period moving average stays above the 50-period one, and the relative strength index is positively oriented. Further upside is therefore expected with the next horizontal resistance and overlap set at 0.9970 at first. A break above this level would call for further advance towards 1.0030.

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 0.9970 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 0.9885.

Resistance levels: 0.9970, 1.0030, 1.0060

Support levels: 0.9840, 0.9785, 0.9750

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Technical analysis of NZD/USD for February 22, 2016

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NZD/USD is expected to trade with bullish bias above 0.6605. The pair reversed up after having reached its major support at 0.6565. Currently trading around 0.6675, the pair stands firmly above both the 20-period and 50-period moving averages, and seems likely to post a new rise. The intraday relative strength index is heading upward above its neutrality area at 50. In this case, as long as 0.6605 holds on the downside, look for further advance to 0.67 and 0.6730 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. Therefore, long positions are recommended with the first target at 0.67 and the second one at 0.6730. In the alternative scenario, short positions are recommended with the first target at 0.6565 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 0.6565. The pivot point is at 0.6605.

Resistance levels: 0.67, 0.6730, 0.6775

Support levels: 0.6565, 0.6540, 0.6505

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Technical analysis of GBP/JPY for February 22, 2016

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GBP/JPY is expected to trade in a lower range as it continue its downside movement. The pair has been capped by its descending 20-period and 50-period moving averages and remains on the downside. Meanwhile, the relative strength index is negatively oriented. The first target to the downside is set at the horizontal support and overlap at 159.30. A break below this level would open the way to further weakness towards 158.20.

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 159.30. A break of this target will move the pair further downwards to 158.20. The pivot point stands at 162.20. 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 162.20 and the second target at 163.00.

Resistance levels: 162.20, 163.00, 163.85

Support levels: 159.30, 158.20, 157.35

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Technical analysis of Silver for February 22, 2016

Technical outlook and chart setups:

Silver had reversed from $15.45/47 levels on Friday as expected and is seen to be trading lower at $15.18 levels at the moment. The metal has also broken past its counter trend line support as seen here, and could still test $15.30 levels (support turned resistance line), before turning lower. Please also note that the metal has reversed from fibonacci 0.50 of the drop between $15.90 levels and $15.12 levels earlier. The structure reveals that bears should remain in control till prices stay below $15.80/90 levels and push the metal lower towards $14.60 levels at least.It is hence recommended to remain short and also look to add further at $15.30 levels on a pullback, with risk at $15.60 levels for now. Immediate interim resistance is seen at $15.50 levels while interim support is at $15.12 levels respectively.

Trading recommendations:

Remain short for now, stop $15.60, a target is $14.60.

Good luck!

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Ichimoku indicator analysis of USDX for February 22, 2016

The Dollar index is trading sideways in a upward sloping channel as support was held last week. It seems the bounce that started at 95.25 is not over and we should expect more upside in the index.

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Blue lines - bullish channel

The Dollar index is above to break above the Kumo in the 4-hour chart. Price has held above the kijun and tenkan-sen indicators while is now testing the 38% Fibonacci retracement. The chances of breaking higher towards 97.50 are high as long as price is above 96.50.

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On a weekly basis, price has closed above the Kumo which means that this week we are going to see a test of the kijun- and tenkan-sen indicators. Resistance by those two indicators is at 97.20-97.50 area. Support is at 98.90. Price is above the weekly Kumo but below the tenkan- and kijun-sen. So traders need to be very cautious as price is trapped between important support and resistance levels.The material has been provided by InstaForex Company - www.instaforex.com

Ichimoku indicator analysis of gold for February 22, 2016

Gold is pulling back after reaching our target area of $1,130-40 last week. A break below $1,200 will open the way for a deeper decline towards $1,150. However, if support holds and price breaks above $1,235, we should not be surprised to see Gold price rally towards $1,300.

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Black line - support Trend line

Gold price is near the top of the Kumo and still holding above the kijun-sen support. Short-term support is found at $1,209-$1,200. Breaking below this area will push prices towards the 61.8% Fibonacci retracement. Resistance is at $1,135. Breaking above it will open the way for a re-test of the highs.

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Red lines - downward sloping wedge

In the weekly chart above we see another red weekly candle at the start of the week. Will support hold like last week? If yes the bounce will be strong and can push prices to new highs. If not, then we should expect Gold price to push towards $1,150.

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Technical analysis of USD/CAD for Febuary 22, 2016

General overview for 22/02/2016:

The current intraday count looks a little bit bullish as the wave (c) blue has not been developed yet, but the first sub-wave labeled as wave a purple looks to be completed. 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 - Intraday Support

1.3656 - WS1

1.3784 - Weekly Pivot

1.3911 - Intraday Resistance

1.3916 - WR1

1.4041 - 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 EUR/JPY for Febuary 22, 2016

General overview for 22/02/2016:

The higher time frame wave progression shows a complex and time-consuming double-three pattern labeled on the 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. On the intraday time frame, the possible low for the wave B blue might be in place, but to confirm this scenario the market must break out above the level of 128.27. Otherwise bears are still in control.

Support/Resistance:

123.59 - WS1

125.02 - Intraday Support

125.76 - Intraday Resistance

125.90 - Weekly Pivot

126.75 - WR1

128.27 - Technical Resistance

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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Technical analysis of Gold for February 22, 2016

Technical outlook and chart setups:

Gold has dropped lower after hitting resistance at $1,235.00 levels on Friday. The yellow metal is seen to be trading at $1,216.00/17.00 levels for now, looking to break to lower towards $1,200.00 levels from here. The metal needs to break below its counter trend line support to accelerate drop towards $1,170.00 and $1,146.00 levels subsequently. It is hence recommended to remain short for now, with risk at $1,235.00/36.00 levels. Immediate interim resistance is seen at $1,235.00 levels while support is seen at $1,200.00 levels respectively. Bears are expected to remain in control till prices stay below $1,235.00 levels from here on.

Trading recommendations:

Remain short for now, stop at $1,235.00/36.00 levels, a target $1,170.00 is at least.

Good luck!

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Technical analysis of EUR/JPY for February 22, 2016

Technical outlook and chart setups:

The EUR/JPY pair had hit fresh lows at 125.00 levels earlier as expected, before pulling back higher again. The pair is trading at 125.40/43 levels at the moment, looking to continue drifting lower towards 124.50 and 124.00 levels respectively, before producing a meaningful pullback. The structure reveals that EUR/JPY should be completing this down swing around 122.00/123.00 levels approximately. It is hence recommended to remain short for now, with risk at 126.60/70 levels. Immediate interim support is seen at 125.00 levels, while resistance is seen at 127.50 levels respectively. Please note that the pair is testing a channel line resistance for now, and bearish reaction is expected around 125.40/50 levels.

Trading recommendations:

Remain short for now, stop at 126.70, targets are 124.50 and 124.00

Good luck!

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Technical analysis of GBP/CHF for February 22, 2016

Technical outlook and chart setups:

The GBP/CHF pair is seen to be trading at 1.4147/50 levels for now, after testing recent lows at 1.4050 levels. The pair may still remain in control of bulls till it stay broadly above 1.4040 levels. Please note that the pair has been holding fibonacci 0.618 levels intact till now around 1.4040/50 levels as well. It can be considered a test till now and a rally could still unfold, pushing prices higher towards 1.4450 and 1.4560 levels subsequently. It is hence recommended to remain long for now, with risk at 1.4000 levels. Immediate resistance is seen at 1.4300 levels while support is seen at 1.4040 levels interim, respectively.

Trading recommendations:

Remain long with stop at 1.4040, targets are 1.4560 and 1.4560.

Good luck!

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Elliott wave analysis of EUR/NZD for February 22 - 2016

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Wave summary:

The very complex correction since the 1.7273 high is still unfolding and the recent failures to break out towards the upside does indicate that a flat correction is unfolding in wave [ii]. This calls for a little more downside pressure to 1.6475 before the next impulsive rally higher towards 1.7273 on the way higher to 1.8020.

Resistance is now found at 1.6794 and again at 1.6893. The later should protect the upside for the decline closer to 1.6475.

Trading recommendation:

We will buy EUR near 1.6475 or upon a break above 1.6893.

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

Elliott wave analysis of EUR/JPY for February 22 - 2016

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Wave summary:

We have finally seen a clear break below important support at 126.05 calling for a continuation lower to 124.00 to end wave a of the very complex triple three zig-zag correction that has been unfolding since the 141.04 high.

Short term, we expect minor resistance at 125.57 and more importantly support at 125.90 to protect the upside for the expected decline closer to 124.00.

Only a direct break above 125.90 indicates that wave a already is over and a rally in wave b towards 130.00 is unfolding.

Trading recommendation:

We are short EUR from 126.10 and will move our stop lower to 125.65. Take profit will be placed at 124.25

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

Technical analysis of EUR/USD for February 22, 2016

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When the European market opens, some economic news will be released such as Flash Services PMI, Flash Manufacturing PMI, German Flash Services PMI, German Flash Manufacturing PMI, French Flash Services PMI, and French Flash Manufacturing PMI. The US will also post the economic data such as Flash Manufacturing PMI. So amid the reports, EUR/USD will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Breakout BUY Level: 1.1166.

Strong Resistance:1.1160.

Original Resistance: 1.1149.

Inner Sell Area: 1.1138.

Target Inner Area: 1.1112.

Inner Buy Area: 1.1086.

Original Support: 1.1075.

Strong Support: 1.1064.

Breakout SELL Level: 1.1058.

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 22, 2016

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In Asia, Japan will release the Flash Manufacturing PMI. The US will also release some economic data such as Flash Manufacturing PMI. So there is a probability the USD/JPY pair will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Resistance. 3: 113.53.

Resistance. 2: 113.31.

Resistance. 1: 113.09.

Support. 1: 112.81.

Support. 2: 112.60.

Support. 3: 112.37.

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 22, 2016

USDX is currently doing a possible breakout below the support zone of 96.80 and there could happen a decline towards the 96.40 level. That level is strong support that could face some difficulties in the way that bears are getting a bit weak in technical terms. The fractal structure is also indicating more further weakness.

USDXH1.png

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 USD Index breaks with a bearish candlestick; the support level is 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 22, 2016

The H1 chart is showing us a bearish gap left below the 200 SMA in this time frame. Currently, we can expect a breakout lower towards the support zone of 1.4206. However, if the pair finds strong bottom at current stage, then it could perform a rebound and rally towards the 1.4436 level, which is above the moving average. MACD indicator is on the negative territory and supporting the bearish idea.

GBPUSDH1.png

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 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 22, 2016

EUR/USD: The EUR/USD pair moved lower on Monday and then consolidated throughout last week. A closer look at the market shows that the ongoing consolidation is to the downside. Since the EMA 11 is below the EMA 56 and the Williams' % Range period 20 is not far from the oversold region, it could be deduced that the current consolidation to the downside is a threat to the recent bullish outlook, which could invalidate it as soon as the price goes below the support line at 1.1000.

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USD/CHF: This pair moved upwards by 200 pips last week, reaching the resistance level at 0.9950 and meeting a great opposition there. Since there is a new Bullish Confirmation Pattern on the chart, further northward movement is possible this week, which would reinforce the extant Bullish Confirmation Pattern.

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GBP/USD: The Cable dropped by 250 pips last week and later met a stubborn opposition at the accumulation territory of 1.4250, which has resisted further southward movement in spite of attacks into it. Bears must do all they can to break that accumulation territory to the downside; otherwise the noteworthy rally we saw last Friday, February 19, 2016, could end up being a threat to the bearish bias on the market.

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USD/JPY: Here, what happened on Monday, February 15, 2016 was just an upward bounce in the context of an uptrend. The market has moved south gradually since then, dropping by 220 pips and thus reinforcing the extant bearish bias in the market. The demand levels at 111.50 and 111.00 could be tested this week.

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EUR/JPY: The EUR/JPY pair first went upwards last Monday (February 15, 2016). The following day, the market started dropping gradually from the high of the day, reaching the demand zone at 125.00 on Friday. This was a movement of 300 pips; plus the chances of EUR/JPY going upwards are very slim, unless the Yen loses strength in a significant mode. The market could thus reach the demand zones at 124.50 and 124.00 this week.

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