Global macro overview for 23/02/2016

Global macro overview for 23/02/2016:

Not only the Europe manufacturing PMI was worse than expected, but Japan's Markit/Nikkei Flash Manufacturing PMI also defeated expectations. For the month of February, the manufacturing PMI was 50.2 vs. previous 52.3 and consensus 52.0. The main reason for such a drop may be the fact that new export orders fell at the fastest pace in three years. In conclusion, the figures is a sign that businessmen are not confident that the government and the Bank of Japan's moves to support the economy, including January decision to cut the interest rate to below zero, are effective. Moreover, those are worrying signs that the economy slows faster than anticipated.

Let's now take a look at the USD/JPY technical picture. After the pair had managed to retrace to the 38% Fibo level, the bears took the control over the market and now they are trying to make another low. Importantly, the pair is trading just above the key daily support at 110.06 and any break lower would accelerate the losses.

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Global macro overview for 23/02/2016

Global macro overview for 23/02/2016:

The EU flash services and manufacturing PMIs were released yesterday. The countries which are the most important for EU economic stability, like Germany and France, reported a worse than expected figures for the previous month. Perhaps, this is why the whole EU had reported weaker figures for the both sectors as well (manufacturing PMI 51.0 vs 52.0; services PMI 53.0 vs. 53.4). As growth in the services and manufacturing sectors of the euro zone slowed in February, it casts further doubts over the strength of the currency bloc's recovery. This is why there is a chance that the ECB will expand the size of its 60 billion euros-a-month asset-buying programme next month, and another deposit rate cut is likely to be done.

Let's now take a look at EUR/USD technical picture after the data were released. The key support at 1.1059 is violated, and the bears have a full control over the market. The next support is seen at 1.0984.

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EUR/NZD analysis for February 23, 2015

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Overview :

Recently, EUR/NZD has been moving downwards. As I expected, the price tested the level of 1.6373 in a high volume. In the daily time frame, I found a strong supply bar in a high volume, which made the price headed downwards. In the 4-hour time frame, we can observe a breakout of our support at 1.6450. I also found the confirmed double top formation. Therefore, be careful when buying EUR/NZD at this stage and watch for potential selling opportunities. The level of 1.6520 may be a good level to sell (strong support became strong resistance). Next downward target is seen at the level of 1.6180 ( sub-major Fibonacci expansion 161.8%) and at the level of 1.5990 (major Fibonacci expansion 161.8%).

Fibonacci Pivot Points:

Resistance levels:

R1: 1.6700

R2: 1.6800

R3: 1.6960

Support levels:

S1: 1.6390

S2: 1.6285

S3: 1.6125

Trading recommendation: watch for potential selling opportunities on rallies.

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Technical analysis of USD/CAD for Febuary 23, 2016

General overview for 23/02/2016:

The wave b purple had been made just as anticipated and there is still one more wave to the upside to be made. A breakout above the intraday resistance at the level of 1.3846 is needed to confirm this scenario. 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 23, 2016

General overview for 23/02/2016:

The bears are in full control of this market as the last support level has been broken. The whole structure evolves into more complex and time consuming correction even on higher time frames. The current ABC blue labeling may not be the last one as further corrective sub-waves are still expected.

Support/Resistance:

123.59 - WS1

125.02 - 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 near term.

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Technical analysis of GBP/JPY for February 23, 2016

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GBP/JPY is under pressure. The pair has been capped by its descending 20-period and 50-period moving averages and remains under pressure. Meanwhile, the relative strength index is negatively oriented. The first target to the downside is set at the horizontal support and overlap at 157.20. A breakout below this level would open the way to further weakness toward 156.50.

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 157.20. A break of this target will move the pair further downwards to 156.50. The pivot point stands at 159. 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 160.50 and the second target at 162.20.

Resistance levels: 160.50, 162.20, 163.00

Support levels: 157.20, 156.50, 155.35

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Gold analysis for February 23 , 2016

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Overview:

Since our last analysis, gold has been trading sideways at the price of $1,215.00. Our support at the price of $1,196.00 is on the test. In the daily time frame, I found a supply bar in an average volume. At this stage buying looks risky. According to the H4 time frame, I found buying climax in the background, which is a sign that buying looks risky. Besides, we can observe weak demand in low volume around the price of $1,220.00. 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: 1,221.60

R2: 1,227.00

R3: 1,235.40

Support levels:

S1: 1,204.00

S2: 1,198.50

S3: 1,189.60

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

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NZD/USD intraday technical levels and trading recommendations for February 23, 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 was 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 near the same zone during the previous few weeks.

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) on Wednesday. Hence, the current bullish swing towards 0.6700 was initiated.

The zone of 0.6700-0.6750 will remain a significant resistance level to offer a valid sell entry. S/L should be located above 0.6770.

Note that persistence below 0.6570 will be essential 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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Technical analysis of USD/JPY for February 23, 2016

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USD/JPY is expected to trade in a lower range. Overnight, U.S. stocks pushed higher, supported by shares in energy, automobile and transportation sectors. The Dow Jones Industrial Average rose 1.4% to 16,620, the S&P 500 gained 1.5% to 1,945, and the Nasdaq Composite was up 1.5% to 4,570.

Nymex crude oil surged 6.2% to $31.48 a barrel, gold lost another 1.7% to $1,208 an ounce, while the benchmark 10-year Treasury yield climbed to 1.766% from 1.750% in the previous session.

On the forex front, the "Brexit" uncertainty drove GBP/USD down 1.8% to 1.4148 yesterday (day low at 1.4056). EUR/USD also dropped 1.0% to 1.1026, and USD/CHF was up 1.0% to 0.9994. On the other hand, AUD/USD gained 1.0% to 0.7222, and NZD/USD was also up 1.0% to 0.6698. The pair ran up to 113.38 yesterday before reversing its course. It has produced a series of lower highs and is heading downward, breaking below the lower Bollinger band with strong momentum. The 20-period (30-minute chart) moving average has just crossed the 50-period one, and the intraday relative strength index is badly directed below the neutrality level at 50. The intraday outlook has turned very bearish with the first downside target at 112.35 (around yesterday's low) being in sight. Below this level, the next support would be found at 111.65 (a level of overlapping 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 111.65. A break of this target will move the pair further downwards to 111.00. The pivot point stands at 112.70. In case the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, long positions are recommended with the first target at 113.20 and the second target at 113.65.

Resistance levels: 113.20, 113.65, 114.15 Support levels: 111.65, 111.0, 110.65

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Technical analysis of USD/CHF for February 23, 2016

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USD/CHF is expected to trade with bullish bias. The pair posted a strong rebound yesterday, supported by its rising 20-period and 50-period moving averages. The immediate trend is up, and the momentum is still strong. The formation of higher highs and lows remains intact, which should indicate a solid uptrend. Hence, as long as 0.9885 is not broken, further upside is most likely to occur to 1.00 and 1.0030 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 1.00 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: 1.00, 1.0030, 1.0060

Support levels: 0.9840, 0.9785, 0.9750

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USD/CAD intraday technical levels and trading recommendations for February 23, 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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Technical analysis of NZD/USD for February 23, 2016

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NZD/USD is expected to trade in a higher range. The pair confirmed a bullish trend after yesterday's upside breakout of its key level at 0.6670 (the high of February 18), validating the formation of higher highs and lows. The 20-period and 50-period moving averages are heading upwards and should continue pushing the price higher. The relative strength index is also positive above its neutrality area at 50. Therefore, as long as 0.6655 holds on the downside, look for further advance to 0.6730 and 0.6755 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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Intraday technical levels and trading recommendations for GBP/USD for February 23, 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 strong supply level.

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.

On the other hand, If the current weekly candlestick maintains its bearish closure below the depicted demand zone (below 1.4200), the next weekly demand level will be located at 1.3850 (a historical bottom that goes back to March 2009).

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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 being 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 bullish reversal scenario would be replaced with bearish one with a potential target at 1.3850.

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 1.4200 and 1.4360 to have a valid buy entry. 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 23, 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 reached in August 1997.

Later, in April 2015, a 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 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 the 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 most recent bullish swing was initiated.

During the last few weeks, 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 is 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 1.1000 was expected. This bearish decline is being manifested on the daily chart.

Trading Recommendations:

The levels of 1.1000 and 1.0800 will remain important demand levels to be watched for significant bullish rejection. Otherwise, a quick bearish decline towards 1.0550 will be imminent.

A valid buy entry can be offered near the current levels (the upper limit of the broken consolidation range) around 1.1000. S/L should be set as a daily candlestick closure below 1.0950.

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

Technical analysis of NZD/USD for February 23, 2016

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Overview:

  • The NZD/USD pair has broken resistance at the level of 0.6692, which acts as support now.
  • So, the pair has already formed minor support at 0.6692.
  • The strong support is seen at the level of 0.6613 because it represents the weekly pivot.
  • In the H1 time frame, the RSI and the moving average (100) are still pointing to the upside.
  • Therefore, the market indicates a bullish opportunity at the level of 0.6692. Buy above the minor support of 0.6692 with a target at 0.6756 (this price is coinciding with the ratio of 161.8% Fibonacci).
  • On the other hand, if the pair closes below the minor support (0.6692), the price will fall into the bearish market in order to go further towards the strong support at 0.6620.

Comment:

  • Also, the double bottom is seen at the level of 0.6620.
  • If the trend is buoyant, then the currency pair strength will be defined as following: NZD is in an uptrend and USD is in a downtrend.

Weekly technical levels:

  • R3: 0.6832
  • R2: 0.6753
  • R1: 0.6692
  • PP: 0.6613
  • S1: 0.6552
  • S2: 0.6473
  • S3: 0.6412
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Technical analysis of USD/CHF for February 23, 2016

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Overview:

  • The USD/CHF pair hit the weekly resistance 1 yesterday. But, it dropped down in order to bottom at the point of 0.9934. Today, the pair is trading above its pivot point. It is likely to trade in a higher range as long as it remains above the level of 0.7898. Hence, the major support was already set at the level of 0.7898. Moreover, the double bottom is also coinciding around the major support today. Additionally, the RSI is still calling for a strong bullish market as well as the current price is also above the moving average 100. Therefore, it will be advantageous to buy above the current level of 0.9923 with the first target at 0.9990 in order to retest the weekly resistance 1. From this point, if the pair closes above the weekly resistance 1 of 0.9990 in the H4 chart, the USD/CHF pair may resume its movement to 1.0030 to form a new double top. However, stop loss should always be taken into account, accordingly, it will be beneficial to set the stop loss below the last bearish wave at 0.9840.

The weekly technical analysis of USD/CHF pair:

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Technical analysis of GBP/CHF for February 23, 2016

Technical outlook and chart setups:

The GBP/CHF pair is trading lower at 1.4050 now, looking foe an opportunity to rally. Please note that GBP/CHF has completed a zigzag corrective wave 2 at 1.4000 before pulling back today. If the pair holds above 1.4000, bulls are expected to take control and push higher towards at least 1.4460 before producing a meaningful pullback. It is hence recommended to remain long from here (1.4050), with risk below 1.4000. Immediate interim support is seen at 1.4000 followed by 1.3920, while resistance is seen at 1.4150 and higher. Please note that a drop below 1.4000 would probably confirm a continued downtrend.

Trading recommendations:

Remain long again with stop at 1.3950, a target is 1.4460.

Good luck!

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Technical analysis of EUR/JPY for February 23, 2016

Technical outlook and chart setups:

The EUR/JPY pair dropped lower and hit the level of 123.50 as it was discussed and expected earlier. The pair seems to complete its drop that began from 132.50. EUR/JPY is trading higher at 123.75 at the moment, looking for a stage for an impressive rally from here. It might be corrective though. Please note that the pair has triggered all targets/extensions (marked in Red), and hence a high probability of a pullback remains at the current levels. It is hence recommended to take full profits on short positions now and wait for a bullish reversal signal to go long. Immediate interim support is seen at 123.50, while resistance is at 124.25. Bulls are expected to regain control.

Trading recommendations:

Book profits on all short positions taken earlier and remain flat.

Good luck!

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Daily analysis of major pairs for February 23, 2016

EUR/USD: This pair is also moving in a predictable manner. Last week's bullish effort resulted in a sell signal; and the market went further downwards by 130 pips on Monday, almost testing the support line of 1.1000. Bears should be able to push the price below that great support level as the market goes further south.

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USD/CHF: Like some other major pairs, the USD/CHF pair is moving in a predictable manner now. Last week's bullish effort resulted in a buy signal; and yesterday the market went further upwards by 100 pips testing the psychological level of 1.0000. Bulls should be able to push the price above that psychological level, as the market goes further north.

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GBP/USD: The GBP/USD pair dropped further by 230 pips on Monday, resulting in a stronger Bearish Confirmation Pattern in the market. GBP pairs are bearish now, and there is a possibility that the accumulation territories of 1.4050 and 1.3050 would be slashed this week (by the GBP/USD pair), as bearish pressure persists in the market.

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USD/JPY: There is still a bearish indication on the USD/JPY chart. The EMA 11 is below the EMA 56 in the 4-hour chart, while the RSI period 14 is below the level of 50. This means that the price could go further downwards. The demand levels at 112.50 and 112.00 are potential targets this week.

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EUR/JPY: On February 22, 2016, this cross traded lower due to the weakness in the EUR and the stamina in the Yen. As said earlier, there are very slim chances for JPY pairs to rally significantly this week. In the face of this fact, the USD/JPY pair is likely to continue to trend further and further downwards.

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Ichimoku indicator analysis of USDX for February 23, 2016

The US dollar index continues to trade inside an upward sloping channel and has now broken out and above the Kumo resistance area. There are increased chances that this upward move continues towards 98.05 where the 61.8% Fibonacci retracement is found.

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Blue lines - bullish channel

The US dollar index has reached the 50% Fibonacci retracement and is pulling back. The price is above the Ichimoku cloud and still inside the bullish channel confirming bullish momentum. Support is found at 96.80, so a breakout below it will open the way to the Kumo at 96.30.

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The weekly candle has reached the tenkan-sen (red line indicator) and is now testing it. A weekly close above it will open the way for a bigger bounce or even a new trend start with new highs as a target. But as long as we are below the tenkan-sen in the weekly chart, bulls should be very cautious. Weekly support is found at 96. If this level is lost, we should expect 95.20 to be tested.The material has been provided by InstaForex Company - www.instaforex.com

Gold wave analysis for February 23, 2016

Gold price continues to hold above $1,200. The price is moving mainly sideways. There is a triangle pattern being formed in a possible wave 4 of a lower degree. This implies that more upside should be expected in gold and $1,300 to be reached over the coming weeks. This scenario will be canceled if the price breaks below $1,112.

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Blue lines - triangle pattern

Gold price is forming a triangle pattern as a wave (4). Wave (5) upwards to complete wave 3 is expected. Eventually, the price will most probably break out above $1,300 if this scenario is correct. The price is still holding above the Ichimoku cloud and the decline does not look impulsive as the price has already overlapped a low of $1,220 reached on February 19.

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On a weekly basis, a trend is bullish as long as the price is above both the weekly Kumo (cloud) and the kijun- and tenkan-sen indicators. The back test of the broken cloud resistance and the downward sloping wedge was successful so far favoring the bullish continuation of the upward move that started from $1,050.The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of Silver for February 23, 2016

Technical outlook and chart setups:

Silver is trading at the levels of $15.22/25 at the moment, after hitting intraday highs of $15.30. The metal seems to be poised to push prices lower towards $14.80 and $14.60. The metal is trading ahead of its big brother gold by hitting fresh swing lows yesterday at $14.92. Furthermore, the dropping trend-line resistance is also being followed, keeping the intermediary trend intact. It is hence recommended to hold short positions with risk at $15.50. Immediate resistance is seen at $15.50, while support is seen at the level $14.90 (interim). Only a breakout above $15.50 should disturb the existing bearish setup.

Trading recommendations:

Remain short with stop at $15.50, a target is at $14.60.

Good luck!

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

Technical analysis of Gold for February 23, 2016

Technical outlook and chart setups:

Gold is trading at $1,216.00/17.00 now after pulling back from $1,222.00. Bears are expected to remain in control until prices stay broadly below $1,240.00. The yellow metal has hit Fibonacci 0.618 retracement of a drop from $1,235.00 to $1,203.00 as depicted in the chart above. Furthermore, a bearish evening star candlestick pattern has also appeared on the hourly chart. The metal is hence expected to continue dropping lower towards the level of $1,180.00 at least. It is hence recommended to remain short now with risk at $1,230.00. Immediate resistance is seen at $1,235.00, while support is found at $1,190.00.

Trading recommendations:

Remain short with stop at $1,235.00, a target is at $1,290.00 and $1,280.00.

Good luck!

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Elliott wave analysis of EUR/NZD for February 23, 2016

2016-02-23-EURNZD-8H.png

Wave summary:

Our fear of a decline to strong support at 1.6473 came true. With a low at 1.6338, all requirements to the correction in wave [ii] has been fulfilled and now we will be looking for signs that wave [iii] higher towards at least 1.7817 and more likely even higher towards 1.8731 is ready to take over.

The first indication that wave [iii] is developing is a breakout above resistance at 1.6662 and confirmation that wave [ii] is indeed over and wave [iii] developing will be seen upon a breakout above 1.6893. Until the breakout above 1.6662 is seen, the risk of move to just below 1.6338 can not be ruled out.

Trading recommendation:

We bought EUR at 1.6475. We will place our stop at 1.6375 as a breakout below 1.6375 will call for a move below 1.6338.

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

Elliott wave analysis of EUR/JPY for February 23, 2016

2016-02-23-EURJPY-8H.png

Wave summary:

With a low at 123.69, our ideal target for wave a at 124.00 has been reached. Now , we will be looking for signs of wave b taking over for a rally back towards the channel resistance-line near 130.00. Just a word of caution is in place for wave b. It does not have to rally all the way back to 130.00 as it easily could find a top near strong resistance of 127.40.

In the short term, a breakout above 124.62 will be the first indication that wave b is unfolding, while a breakout above 125.00 will confirm that wave b is in progress.

Trading recommendation:

Our take profit at 124.25 was hit for a nice profit. We will but EUR here at 124.00 and place stop at 123.65 for a rally to at least 127.40.

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

Daily analysis of USDX for February 23, 2016

On the H1 chart, the USDX gained bullish momentum during Monday's session. Currently, we expect it to make a corrective decline towards the 200 SMA in this time frame. However, if the index achieves in breaking the support zone of 96.80, then we can expect another bearish advance towards the level of 96.40. The MACD indicator is still supporting the bearish idea on a short-term basis.

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 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 23, 2016

GBP/USD had a huge decline from the the resistance level of 1.4282 reaching new lows across the board. Currently, we are watching a lower low pattern formation above the support level of 1.4069, where a breakout can be seen towards the level of 1.3963.

GBPUSDH1.png

H1 chart's resistance levels: 1.4206 / 1.4282

H1 chart's support levels: 1.4069 / 1.3963

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 seen at 1.4069, take profit is at 1.3963, and stop loss is at 1.4172.

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

Technical analysis of EUR/USD for February 23, 2016

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When the European market opens, some economic news on the Belgian NBB Business Climate, German Ifo Business Climate, and German Final GDP q/q is due to be released. The US will deliver economic data on the Richmond Manufacturing Index, Existing Home Sales, CB Consumer Confidence, and S&P/CS Composite-20 HPI y/y. So amid the reports, EUR/USD will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Breakout BUY Level: 1.1082.

Strong Resistance:1.1076.

Original Resistance: 1.1065.

Inner Sell Area: 1.1054.

Target Inner Area: 1.1028.

Inner Buy Area: 1.1002.

Original Support: 1.0991.

Strong Support: 1.0980.

Breakout sell level: 1.0974.

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 23, 2016

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In Asia, Japan will not release any economic data today. The US will release some economic data on the Richmond Manufacturing Index, Existing Home Sales, CB Consumer Confidence, and S&P/CS Composite-20 HPI y/y. 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: 112.93.

Resistance. 2: 112.71.

Resistance. 1: 112.49.

Support. 1: 112.22.

Support. 2: 112.00.

Support. 3: 111.78.

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