Intraday technical levels and trading recommendations for GBP/USD for March 3, 2016

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In November 2015, a bearish engulfing weekly candlestick closed below the level of 1.5200 (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 to the demand levels of 1.4620 and 1.4360. Both of them were broken to the downside.

On January 21, after the GBP/USD pair moved below 1.4220, evident signs of a bullish recovery were expressed around 1.4075. Hence, previous weekly candlesticks closed above 1.4220 and 1.4360 again.

Bullish persistence above 1.4360 was mandatory to maintain enough bullish strength in the market. The first bullish target was seen at 1.4615 where the current strong bearish momentum was initiated.

As the previous weekly candlestick maintained its bearish persistence below the depicted demand zone (below 1.4200), the next weekly demand level is located at 1.3850 (historical bottom that goes back to March 2009).

As expected, evident bullish recovery is being offered around 1.3850 (prominent weekly demand level). Hence, a valid buy entry can be taken near the same price level.

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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 was trapped between 1.4615 and 1.4220 until a recent lower high was established at the level of 1.4530. This applied extensive bearish pressure to 1.4220.

Hence, an extensive bearish breakout below 1.4220 is being viewed on the daily chart (GBP/USD looks oversold currently).

That is why, signs of bullish recovery and a possible long entry were expected around 1.3850. A recent bullish swing is currently being expressed towards 1.4000 and 1.4075.

On the other hand, the broken demand zone (1.4360-1.4222) now constitutes a significant supply zone to offer a bearish rejection when any upcoming bullish pullback occurs.

Trading Recommendation:

Conservative traders could take a valid entry around the price zone of 1.3850. It is already running in profits. Initial T/P levels should be located at 1.4000 and 1.4075.

On the other hand, price action should be watched around the price zone of 1.4360-1.4222 for a valid SELL entry.

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Intraday technical levels and trading recommendations for EUR/USD for March 3, 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 had previously been 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.

April's monthly candlestick came as bullish engulfing one. However, next monthly candlesticks (September, October, and November) reflected a 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 stood as a significant supply zone to be watched during the recent bullish pullback. As we expected, an evident bearish rejection was recently manifested in February's monthly candlestick (inverted hammer candlestick).

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 near the mentioned supply level. Hence, a quick bearish decline towards 1.1000 was expected.

A bearish breakdown below 1.1000 (upper limit of the broken range) is currently manifested on the daily chart. A quick bearish decline towards 1.0820 should be expected.

Trading Recommendation:

The price level of 1.0820 will remain an important demand level to be watched for a significant bullish rejection. Otherwise, a quick bearish decline towards 1.0550 will be imminent.

For conservative traders, a valid buy entry can be offered around the lower limit of the broken consolidation range around 1.0800-1.0820. S/L should be set as a daily candlestick closure below 1.0775.

Initial T/P levels are located at 1.1000 and 1.1130.

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NZD/USD intraday technical levels and trading recommendations for March 3, 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). Hence, the recent bullish swing towards 0.6700 was initiated.

As expected, the price zone of 0.6700-0.6750 constitutes a significant resistance zone where a valid sell entry can be offered. S/L should be placed above 0.6770 to limit our risk.

As the market fails to move below 0.6570, the current consolidation range extending between 0.6550 and 0.6750 will continue for a longer time.

Note that persistence below 0.6570 will be essential to allow further bearish decline towards the price level of 0.6420 where price reaction should be watched for a possible buy entry.

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EUR/NZD analysis for March 03, 2016

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Overview :

Recently, EUR/NZD has been moving downwards. The price tested the level of 1.62154 in a high volume. In the daily time frame, we can observe a supply bar in a high volume, which is a sign of weakness. In the daily time frame, I placed Fibonacci expansion levels to find a potential downward station. I got Fibonacci expansion 161.8% at the price of 1.5990 (downward traget). There are few technical reasons for this strong downward pressure.

1. Massive upthrust in an ultra-high volume bar in the background (supply overcame demand)

2. Another upthrust bar from the same zone

3. Confirmed double-top formation

Watch for potential selling opportunities on rallies. I found a solid selling zone around the price of 1.6315-1.6370.

Fibonacci Pivot Points:

Resistance levels:

R1: 1.6420

R2: 1.6470

R3: 1.6545

Support levels:

S1: 1.6260

S2: 1.6215

S3: 1.6135

Trading recommendation for today: Watch for potential selling opportunities on rallies.

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USD/CAD intraday technical levels and trading recommendations for March 3, 2016

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A bullish breakout above the previous consolidation zone between 1.2400 and 1.2800 was performed on July 15 (shown on the weekly chart).

A significant bearish rejection was observed around 1.3450. Hence, another consolidation range was established from 1.3450 down to 1.2800.

On December 7, a bullish breakout above 1.3450 (the upper limit of the recent consolidation range) enhanced the bullish side of the market. Hence, a bullish visit 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 seen around the level of 1.3750. That is why, the recent bullish pullback took place towards 1.4000 two weeks ago.

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

On the other hand, the zone of 1.3370-1.3400 stands as a significant support zone to be watched for a valid buy entry.

Trading recommendations:

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

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Gold : analysis for March 03 , 2016

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Overview:

Since our last analysis, gold has been trading upwards. The price tested the level of $1,245.73. In the daily time frame, I found a demand bar in a volume below the average. Intraday buying looks risky because I found a strong resistance cluster at the price of $1,246.00. We got few signs of potential distribution by professional market players.

1. Massive buying climax in the backgorund

2. Up-thrust strong sign of weakness

3. Weak demand near climactic cluster

Watch for potential selling opportunities on the rallies. First take profit is set around the price of $1,209.00.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,242.00

R2: 1,247.70

R3: 1,253.20

Support levels:

S1: 1,230.30

S2: 1,226.00

S3: 1,219.00

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

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Technical analysis of NZD/USD for March 03, 2016

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Overview:

  • The NZD/USD pair will continue rising from the level of 0.6671 today. So, the support is found at the level of 0.6671, which represents the 50% Fibonacci retracement level in the H1 time frame. Since the trend is above the 50% Fibonacci level, the market is still in an uptrend. Therefore, the NZD/USD pair is continuing with a bullish trend from the new support of 0.6671. The current price is set at the level of 0.6695 that acts as a daily pivot point seen at 0.6695. Equally important, the price is in a bullish channel. According to the previous events, we expect the NZD/USD pair to move between 0.6671 and 0.6749. Therefore, strong support will be formed at the level of 0.6670 providing a clear signal to buy with the targets seen at 0.6730. If the trend breaks the support at 0.6730 (first resistance), the pair will move upwards continuing the development of the bullish trend to the level 0.6749 in order to test the daily resistance 2. In the same time frame, resistance is seen at the levels of 0.6730 and 0.6749. The stop loss should always be taken into account for that it will be reasonable to set your stop loss at the level of 0.6640 (below the support 2).
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Technical analysis of USD/CHF for March 03, 2016

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Overview:

  • The USD/CHF pair broke resistance, which turned into strong support at 0.9923. Right now, the pair is trading above this level. It is likely to trade in a higher range as long as it remains above the support (0.9923), which is expected to act as a major support today.
  • Therefore, there is a possibility that the USD/CHF pair will move upwards and the structure does not look corrective. The trend is still below the 100 EMA for that the bullish outlook remains the same as long as the 100 EMA is headed to the upside.
  • From this point of view, the first resistance level is seen at 0.9997 followed by 1.0037, while daily support 1 is seen at 0.9923 (38.2% Fibonacci retracement). According to the previous events, the USD/CHF pair is still moving between the levels of 1.0037 and 0.9923; so we expect a range of 110 pips.
  • Consequently, buy above the level of 0.9923 with the first target at 0.9997 so as to test the daily resistance 1 and further to 1.0037. Besides, the level of 1.0037 is a good place to take profit because it will form a double top.
  • On the contrary, in case a reversal takes place and the USD/CHF pair breaks through the support level of 0.9923, a further decline to 0.985 can occur, which would indicate a bearish market.
  • Overall, we still prefer the bullish scenario, which suggests that the pair will stay below the zone of 0.9930 today.
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Global macro overview for 03/03/2016

Global macro analysis for 03/03/2016:

The Crude Oil Inventories report (which are the actual inventories of crude oil, gasoline, and distillate, such as jet fuel, as reported on a weekly basis) was posted yesterday. Again the numbers easily beat the market expectations. The expected number of 3,400K, down from 3,502K a week ago, was beaten by the actual massive increase of 10,374K, much more than anticipated. In conclusion, we can again witness oil stockpiles grow as the supply glut persists. The question remains of how long the inventories capacity will be manageable to prevent the oil from another sell-off to even lower levels?

From the technical point of view, the oil price might get a temporary relief rally. In the H4 time frame, we might observe a bullish breakout attempt at the level of 34.32 that has failed so far. Nevertheless, the market still trades above the 21, 50, and 100 moving averages and as long as the level of 33.36 is not violated, bulls might still try again to break out above the resistance. In case of a successful breakout, the next target will be at the level of 38.13.

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USDX technical analysis for March 3, 2016

The Dollar index continues to trade inside the upward sloping channel. With Non-Farm Payrolls expected to be announced tomorrow, any prediction is dangerous and traders should better stay on the sidelines.

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Blue lines -bullish channel

The Dollar index is trapped between the 61.8% and the 78.6% Fibonacci retracement levels. Price remains above the Ichimoku cloud and is making higher highs and higher lows. Short-term trend is bullish as long as price is above 97.80.

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The weekly chart shows that the current week is balanced between bulls and bears, most probably waiting for the NFP numbers tomorrow. A lower high relative to 99.80 and a break below the kijun- and tenkan-sen indicators will be a bearish sign that will push the index towards the Kumo (cloud). On the other hand a break above 99.80 will confirm bullish trend and that pull backs should be bought.

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Technical analysis of USD/JPY for March 03, 2016

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USD/JPY is expected to trade with a bullish bias. US indices closed higher on Wednesday led by shares in the energy (+2.45%), banks (+1.67%) and telecommunication services (+1.06%) sectors. The Dow Jones Industrial Average added 0.2% to 16899.3, the S&P 500 rose 0.4% to 1986.4, and the Nasdaq Composite gained 0.29% to 4703.4.

On the economic data front, MBA mortgage applications fell 4.8% in the week ended Feb. 26th after falling 4.3% in the prior week. ADP says private sector companies in the US added 214,000 workers in Feb, following a revised 193,000 rise in the prior month.

Nymex crude oil rose 0.8% to $34.66 a barrel, while gold gained 0.9% to $1,241.80 an ounce. The yield on the 10-year Treasury note rose to 1.848% from 1.835% yesterday. U.S. dollar was flat ahead of Friday's jobs report. The pair has been well supported by its rising 20-period and 50-period moving averages and remains on the upside. The intraday RSI still stands above 50. Further upside is therefore expected with the next horizontal resistance and overlap set at 114.50 at first. A break above this level would call for further advance toward 114.85 in extension.

Trading Recommendation:

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 114.50 and the second one at 114.85. In the alternative scenario, short positions are recommended with the first target at 112.85 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 112.50. The pivot point is at 113.20.

Resistance levels: 114.50, 114.85, 115.25

Support levels: 112.85, 112.50, 112.15

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Global macro overview for 03/03/2016

Global macro analysis for 03/03/2016:

The ADP Non-Farm Employment Change data were released yesterday as the first of the US jobs market data series and they beat the expectations. Market participants were expecting 185 000 new jobs, a 8 000 more than the previous month, whilst the actual number of jobs created was 214 000. Importantly, strong US employment numbers in the second half of 2015 were a key reason why the US Fed hiked the short-term interest rate in December 2015. At that time, FED hinted that a series of rate hikes were planned for 2016, but softer US numbers this year have lowered expectations. Some economists have predicted that the Fed will hold off from any further hikes until 2017. In conclusion, a solid ADP Non-Farm Payroll report might led to speculation about a March interest rate hike. Moreover, if Friday's official Non-Farm Payrolls beats the estimate of 195 000, we are likely to hear louder speculation about a possible hike again.

Let's now take a look at the technical picture of the US Dollar index. After the bounce from the golden trend line, the price has managed to trade above the 50 and 100 DMA, so bulls are still in control of this market. Moreover, as long as the technical support at the level of 97.21 holds, we can still expect a possible test of the recent resistance at the level of 99.98.

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Technical analysis of USD/CHF for March 03, 2016

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USD/CHF is expected to trade with a bullish bias above 0.9945. Currently trading at 0.9968, the pair is still moving sideways within its range between 1.001 and 0.9945. The intraday relative strength index is mixed, and is calling for caution. Nevertheless, a support base at 0.9945 has formed and has allowed for a temporary stabilisation. To conclude, above 0.9945, the intraday outlook stays positive with targets at 1.0010 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 1.0010 and the second one at 1.0030. In the alternative scenario, short positions are recommended with the first target at 0.9895 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 0.9870. The pivot point is at 0.9945.

Resistance levels: 1.0010, 1.0030, 1.0070

Support levels: 0.9895, 0.9870, 0.9820

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Technical analysis of NZD/USD for March 03, 2016

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NZD/USD is expected to continue the rebound. The pair has recovered notably since yesterday. A support base has formed around 0.6620, and has allowed for a stabilization. Furthermore, the 20-period moving average is turning up, and should continue to push the prices higher. In which case, as long as 0.6620 holds on the downside, look for further advance to 0.6725 and 0.6775 (Feb. 26 top) 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 0.6725 and the second one at 0.6775. In the alternative scenario, short positions are recommended with the first target at 0.6590 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 0.6560. The pivot point is at 0.6620.

Resistance levels: 0.6725, 0.6775, 0.6825

Support levels: 0.6590, 0.6560, 0.65

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Technical analysis of GBP/JPY for March 03, 2016

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GBP/JPY is expected to trade with an upward bias. The pair managed to break above its resistance at 159.35, which now acts as a key support level. The rising 20-period and 50-period moving averages are well directed, and are also expected to push the prices higher. In addition, the relative strength index is bullish, without showing any reversal signals. Therefore, above 159.35, a new rebound is more likely to 161 and 162.25 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 161 and the second one at 162.25. In the alternative scenario, short positions are recommended with the first target at 158.60 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 157.50. The pivot point is at 159.30.

Resistance levels: 161, 162.24, 163

Support levels: 158.60, 157.50, 156.30

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Gold technical analysis for March 3, 2016

Gold price remains inside the triangle pattern as we showed in our previous analysis. Price needs to break above $1,248 in order to have a bullish signal. A bullish breakout is the most probable outcome, targeting $1,300-$1,350. Support is critical at $1,200-$1,210. As long as price is above it, trend will remain bullish.

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Green lines - triangle pattern

Gold price has short-term resistance at $1,247 and short-term support at $1,220. Price is forming a triangle pattern. Price is also above the Ichimoku cloud. Triangle patterns are usually formed before the final move of the preceding trend. The preceding trend was bullish. So a final move up is expected.

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Red lines - downward sloping wedge

Gold remains above the ichimoku cloud and the downward sloping wedge. Price is making a sideways consolidation in the form of a triangle. The base of the triangle is around 70$ so a breakout above the $1,250 upper triangle boundary should give a target around $1300-$1,320 at least.

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Technical analysis of USD/CAD for March 3, 2016

General overview for 03/03/2016:

As anticipated yesterday, the market has made the high for the wave b purple around the intraday resistance at the level of 1.3480 and then reversed. Currently, the price is trying to break out below the intraday support at the level of 1.3380 in order to develop wave c of wave (c) blue. The projected target for wave c of the wave (c) blue is at the level of 1.3350. Please notice however, that wave b might still evolve into a more complex pattern like a triangle as long as the support at the level of 1.3380 is not violated.

Support/Resistance:

1.3957 - WR2

1.3706 - WR1

1.3605 - Weekly Pivot

1.3480 - Intraday Resistance

1.3386 - Intraday Support

1.3350 - WS1

Trading recommendations:

Day traders should refrain from trading and wait for a better trading setup to occur in the near term. We will open buy orders again when the corrective structure is completed.

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Technical analysis of EUR/JPY for March 3, 2016

General overview for 03/03/2016:

The golden trend line i s still providing the dynamic resistance and bulls must break out above it to confirm the impulsive progression to the upside. The bottom for the wave B blue might be in place and the confirmation of this scenario comes with the level of 125.00 violation. Nevertheless, any violation of the level of 122.06 will invalidate the current labeling and extend the drop downward in wave B blue.

Support/Resistance:

119.43 - WS3

120.96 - WS2

122.56 - WS1

123.09 - Intraday Support

124.05 - Weekly Pivot

125.01 - Intraday Resistance

125.68 - WR1

127.18 - WR2

Trading recommendations:

Day traders should refrain from trading and wait for a better trading setup to occur in the near term. We will open buy orders when the bottom of the wave B blue is in place, so buy stop orders should be placed at the level of 125.03.

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Technical analysis of Silver for March 03, 2016

Technical outlook and chart setups:

Silver is seen to be trading at $14.90/92 levels again, after printing lows at $14.70 levels yesterday. The metal seems to be preparing to drop lower at least through $14.50/55 levels from here. Please note that it is also fibonacci 0.618 support levels, of the rally between $13.70 through $15.93 levels, as seen here. Furthermore, the counter trend (drop from $15.93) extension is also converging at $14.50/55 levels, which instills further confidence for a bullish bounce. It is hence recommended to remain flat for now, but look to initiate fresh long positions around $14.50 levels. Immediate support is at $14.50 levels, while resistance is seen at $15.10 levels respectively.

Trading recommendations:

Remain flat for now, look to buy lower.

Good luck!

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Technical analysis of Gold for March 03, 2016

Technical outlook and chart setups:

Gold is still consolidating in a cone type formation, and is trading at $1,239.00 levels for now. The metal could be preparing for a break down towards $1,190.00 and lower levels from here. It looks to have completed 5 wave already (shown as arrows on chart), and the metal should be on its way towards $1,210.00 and $1,190.00 levels subsequently. It is hence recommended to remain short with risk at $1,255.00 levels. Immediate resistance is seen at $1,248.00 levels while support is at $1,225.00 levels respectively. Only a break above $1,255.00 and further would nullify the recent bearish view. In any cast, the metal would remain buy on dips, going forward.

Trading recommendations:

Remain short now, stop at $1,255.00, a target is $1,190.00.

Good luck!

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Technical analysis of EUR/JPY for March 03, 2016

Technical outlook and chart setups:

The EUR/JPY pair seems to have formed interim bottom at 123.00 levels yesterday as expected. Please also note that 123.00 is fibonacci 0.50% support level of the rally between 122.00 and 124.30 levels respectively (not depicted here on chart). A push above 124.35 levels would accelerate rally towards 125.80 levels at least. The entire rally could unfold into3 waves and potentially extend through 128.50 levels. On the other side, EUR/JPY can also dip into 122.80 levels, before rallying further. Hence it is recommended to remain long with risk below 122.00 levels for now. Immediate support is seen at 122.00 levels while resistance is seen at 125.00 levels respectively.

Trading recommendations:

Remain long for now, stop at 122.00, targets are at 125.80 and 128.50.

Good luck!

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Technical analysis of GBP/CHF for March 03, 2016

Technical outlook and chart setups:

The GBP/CHF pair is seen to be inching higher above trend line resistance, trading at 1.4050 levels now. The pair is soon approaching fibonacci 0.618 resistance of the drop between 1.4320 and 1.3726 levels respectively. Also the counter trend rally that had begun from 1.3726 seems to have hit initial target at 1.4042 levels (depicted here in Red color). The pair has broken above trend line resistance but it needs to clear 1.4315/20 levels to confirm a bullish reversal. Hence it is recommended to remain short with risk above 1.4320 levels for now. Immediate resistance is seen at 1.4300 levels, while support is seen at 1.3730 levels respectively.

Trading recommendations:

Remain short with stop above 1.4320 levels. A target is open.

Good luck!

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Elliott wave analysis of EUR/NZD for March 3 - 2016

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Wave summary:

This cross again did, what it has done many times lately. It stages the first minor signal that the correction in wave [ii] was over and then took a new dive to new lows, this is pretty confusing. The break to a new low, does call for a move closer to 1.6110 before the next rally above minor resistance at 1.6475 and more importantly a break above 1.6637 confirming that wave [iii] higher finally is developing.

Trading recommendation:

We will buy EUR at 1.6125 or upon a break above 1.6475. If our buy-order at 1.6125 is filled our stop will be placed at 1.5790.

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Elliott wave analysis of EUR/JPY for March 3 - 2016

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Wave summary:

The rally from 122.08 seems to have topped at 124.36. The failure to take out the 125.01 high does indicate that a running triangle is developing, but not an expanded flat. We will totally rule out the possibility of the expanded flat, but the odds now favor a running triangle (it's called a running triangle because red wave b broke below the starting point of red wave a).

If a running triangle is indeed building, then we should look for sideways consolidation around 123,00 before the final thrust lower towards 119.90.

Trading recommendation:

Our stop at 123.18 was hit for a small profit. With the prospect of a running triangle unfolding, we will be looking for a new EUR selling opportunity. We will sell EUR at 123.88 with a stop at 124.45

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Technical analysis of EUR/USD for March 03, 2016

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When the European market opens, some economic news will be released such as French 10-y Bond Auction, Retail Sales m/m, Final Services PMI, German Final Services PMI, French Final Services PMI, Italian Services PMI, and Spanish Services PMI. The US will also publish several economic data such as Natural Gas Storage, Factory Orders m/m, ISM Non-Manufacturing PMI, Final Services PMI, Revised Unit Labor Costs q/q, Revised Nonfarm Productivity q/q, Unemployment Claims, and Challenger Job Cuts 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: 1.0921.

Strong Resistance:1.0915.

Original Resistance: 1.0904.

Inner Sell Area: 1.0893.

Target Inner Area: 1.0868.

Inner Buy Area: 1.0843.

Original Support: 1.0832.

Strong Support: 1.0821.

Breakout SELL Level: 1.0815.

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 March 03, 2016

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In Asia, Japan will not release any economic data. However, the US will release a series of economic reports such as Natural Gas Storage, Factory Orders m/m, ISM Non-Manufacturing PMI, Final Services PMI, Revised Unit Labor Costs q/q, Revised Nonfarm Productivity q/q, Unemployment Claims, and Challenger Job Cuts y/y. 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: 114.33.

Resistance. 2: 114.10.

Resistance. 1: 113.88.

Support. 1: 113.61.

Support. 2: 113.38.

Support. 3: 113.16.

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

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

Daily analysis of major pairs for March 3, 2016

EUR/USD: There is a clear Bearish Confirmation Pattern in the EUR/USD 4-hour chart. The EMA 11 is below the EMA 56, while the Williams' % Range period 20 is constantly in the oversold region. This shows that the pair is weak, though it has come down by only 100 pips this week. Further southward movement is probable.

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USD/CHF: This currency trading instrument has traded mainly sideways so far this week, not going above the resistance level at 1.0050 and below the support level at 0.9900. There is bound to be a breakout this week or next, which would take the price below the aforementioned support level or above the resistance level. However, this would be largely determined by whatever happens to EUR/USD later.

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GBP/USD: The GBP/USD pair has moved upwards by 215 pips so far this week. This has become a threat to the recent bearish bias, which would be rendered invalid once the market goes above the distribution territory at 1.4150. Some fundamental figures are expected today and they can have impact on the market.

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USD/JPY: There is a precarious "buy" signal on the USD/JPY pair, which would make sense only as long as the price does not go below the demand level at 112.00. Since the outlook on the pair is bright, it is more likely that the price would trade further upwards this week or next week.

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EUR/JPY: In the first few days of the week, the price went downwards by over 220 pips, almost testing the demand zone at 122.00. Then the price rallied by 220 pips, before coming lower on Wednesday. Here, it is clear that rallies would continue to proffer short-selling opportunities, for the bearish bias is still valid in the EUR/JPY pair. As long as the price does not go above the supply zone at 125.50, the bearish outlook would be invalid.

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