Technical analysis of USD/CHF for March 08, 2016

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Overview:

  • The USD/CHF pair was polemic as it was trading in a narrow sideways channel, the market showed signs of instability. Amid the previous events, the price is still moving between the levels of 1.0037 and 0.9851. In the H1 time frame, resistance and support are seen at the levels of 1.0037 (also, the double top is already set at the point of 1.0037) and 0.9851 respectively. Therefore, it is recommended to be cautious while placing orders in this area. So, we need to wait until the sideways channel is completed. The current price is seen at 0.9954, which represents the key level today. The level of 1.0037 will act as the first resistance line. Hence, if the pair fails to pass through the level of 1.0037, the market will indicate a bearish opportunity below the strong resistance level of 1.0037. Sell deals are recommended below the level of 1.0037 with the first target at 0.9895. If the trend breaks the support level of 0.9895, the pair is likely to move downwards continuing the bearish trend development to the level 0.9851. However, the price spot of 0.9851 remains a significant resistance zone. Thus, the trend will probably be rebounded again from the double bottom as long as the level of 0.9851 is not broke.
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Technical analysis of NZD/USD for March 08, 2016

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Overview:

  • The NZD/USD pair continues to move downwards from the level of 0.6820, which represents the double top in the H1 chart. Yesterday, the pair dropped from the level of 0.6820 to the bottom around 0.6740. Today, the first resistance level is seen at 0.6790 followed by 0.6820, while daily support is seen at the levels of 0.6723 and 0.6693. According to the previous events, the NZD/USD pair is still trapping between the levels of 0.6790 and 0.6693. Hence, we expect a range of 97 pips in coming hours.
  • The first resistance stands at 0.6790, for that if the NZD/USD pair fails to break through the resistance level of 0.6790, the market will decline further to 0.6723. This would suggest a bearish market because the RSI indicator is still in a negative area and does not show any trend-reversal signs. The pair is expected to drop lower towards at least 0.6700 in order to test the second support (0.6693). On the contrary, if a breakout takes place at the resistance level of 0.6820 (the double top), then this scenario may become invalidated.
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EUR/NZD analysis for March 08, 2016

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Overview:

Recently, EUR/NZD has been moving upwards. The price tested the level of 1.6336. In the daily time frame, we can observe a neutral bar (indecision) in a volume below the average. 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 target). There are a 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. According to the H4 time frame, I found weak demand at the price of 1.6335. I am still expecting a downward price. Watch for potential selling opportunities on rallies. I found a solid selling zone around the price of 1.6300.

Fibonacci Pivot Points:

Resistance levels:

R1: 1.6245

R2: 1.6275

R3: 1.6330

Support levels:

S1: 1.6145

S2: 1.6115

S3: 1.6060

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

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Technical analysis of Gold for March 08, 2016

Technical outlook and chart setups:

Gold is now trading higher around the level of $1,274.00. It is expected to turn lower until prices remain below $1,279.00 levels. However, a move above the levels of $1,279.00 would push prices towards $1,320.00. A breakout below $1,250.00 would confirm that a meaningful top is in place and a deeper correction can be expected. It is hence recommended to remain short with risk at $1.282.00/83.00. Immediate resistance is seen at $1,279.00, while support is found at $1,250.00.

Trading recommendations:

Remain short with stop at $1,283.00, a target is open.

Good luck!

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Gold analysis for March 08, 2016

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Overview :

Since our last analysis, gold has been trading sideways at the price of $1,272.00. In the daily time frame, I found a supply bar (upthrust), which is a sign of weakness and sluggish demand. Intraday buying looks risky at this stage. According to the H4 time frame, I found a massive volume spike with a very wide-spread bar (buying climax - strong sign of weakness). Intraday downward stations are set at the prices of $1,262.00 and $1,253.00.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,271.75

R2: 1,274.00

R3: 1,279.50

Support levels:

S1: 1,262.00

S2: 1,259.00

S3: 1,254.00

Trading recommendations for today: Be careful when buying gold at this stage and watch for potential intraday selling opportunities.

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Technical analysis of Silver for March 08 2016

Technical outlook and chart setups:

Silver is trading at $15.59 levels for now, looking to break below $15.50 to accelerate downside. Please note that the metal should remain in control of bears until prices stay below $15.93 levels. The corrective drop (3 waves), which originated from $15.93 levels earlier, is about to complete its last-leg drop towards $14.50 levels. The metal is expected to resume rally from $14.50 or $14.20 levels, which are Fibonacci 0.618 and 0.786 levels, respectively. It is hence recommended to remain short for now with risk above $15.93 levels. Immediate resistance is seen at $15.93 levels while support is at $15.40/50 levels.

Trading recommendations:

Remain short for now, stop above $15.93, target is towards $14.50.

Good luck!

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USD/CAD intraday technical levels and trading recommendations for March 8, 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 level of 1.4120 (Fibonacci Expansion 100%) remains a significant key level to be watched for further price reactions.

On the other hand, the current price zone of 1.3350-1.3370 stands as a significant support zone to be watched for a valid buy entry.

The price zone of 1.3350-1.3370 stands as a significant support zone to be watched for a valid buy entry.

The price zone of 1.3350-1.3370 corresponds to a daily uptrend line and the upper limit of the previous consolidation range (Prominent Breakout Level).

Hence, signs of a bullish rejection around it should be considered a valid buy signal.

Trading Recommendations:

Conservative traders should look for a valid bullish entry around the current price zone of 1.3350-1.3370.

S/L should be located below 1.3300. Initial T/P levels should be located at 1.3630 and 1.3750.

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Intraday technical levels and trading recommendations for GBP/USD for March 8, 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 was 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 previous weekly candlesticks maintained their bearish persistence below the depicted demand zone (below 1.4200), the next weekly demand level was located at 1.3845 (historical bottom that goes back to March 2009).

As expected, an evident bullish recovery and a bullish engulfing weekly candlestick were expressed around 1.3850 (prominent weekly demand level). Hence, a valid buy entry was suggested near the same price level.

On the other hand, the price zone of (1.4222-1.4360) now constitutes a significant supply zone to be watched for possible short-term bearish rejection.

Otherwise, further bullish advancement towards 1.4620 should be expected.

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The GBP/USD pair was trapped between 1.4620 and 1.4220 until a recent lower high was established at the level of 1.4530. This applied extensive bearish pressure to the price level of 1.4220.

Hence, an extensive bearish breakout below 1.4220 was expressed on the daily chart (GBP/USD looked oversold last week).

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 1.4220.

The broken demand zone (1.4222-1.4360) now constitutes a significant supply zone to offer bearish rejection on the short-term perspective.

Early signs of a bearish rejection have been already expressed around 1.4250 (50% Fibonacci level depicted on the daily chart).

Note that the level of 1.4030 is now standing as a prominent key level to offer bullish support if any bearish pullback occurs soon.

Trading Recommendations:

Price action should be watched around the price zone of 1.4222-1.4360 for an intraday sell entry. S/L should be placed above 1.4370. Initial T/P levels should be located at 1.4100 and 1.4050.

On the other hand, risky traders can wait for signs of bullish recovery around 1.4030 to buy the GBP/USD pair if any bearish pullback occurs soon.

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Intraday technical levels and trading recommendations for EUR/USD for March 8, 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 been 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 had previously been 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 (An 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 1.1350-1.1400 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 executed.

A bearish breakdown below 1.1000 (upper limit of the broken range) was manifested on the daily chart. A quick bearish decline was expected towards 1.0820 where the current bullish recovery was initiated.

Currently, daily fixation above 1.1000 is mandatory to allow further bullish movement towards the level of 1.1150 initially.

Once the daily fixation above 1.1000 is achieved, more bullish targets should be expected around 1.1130 and 1.1250. Otherwise, sideways consolidation will continue between 1.1000 - 1.0820.

Trading Recommendations:

For conservative traders, a valid buy entry was offered around the lower limit of the broken consolidation range around 1.0800-1.0820.

Initial T/P level is located at 1.1150, while S/L should be advanced to 1.0900 to secure some profits.

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Global macro overview for 08/03/2016

Global macro overview for 08/03/2016:

The German factory orders decreased second month in the row to the level of -0,1%. They declined a seasonally adjusted 0.1% from December. Moreover, while the domestic orders fell 1.6% in January, foreign orders climbed 1.0% ( 7% booking from the eurozne alone). In conclusion, it looks like the while the German economy is benefiting from all-time low unemployment, corporate confidence has been hit by market turbulence, global slowdown and concerns that Euro bloc's recovery might be not sustainable enough to keep the economy growing.

Let's now take a look at the EUR/USD pair technical picture in the H4 time frame. The price has re-tested the NFP high at the level of 1.1043 again and bulls are expected to have the control over the market in the near term. Nevertheless, the overall trend is bearish as sooner or later the downtrend will resume. Any breakout below the level of 1.0825 will accelerate the sell-off.

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Technical analysis of USD/JPY for March 08, 2016

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USD/JPY is expected to trade in a lower range. The US indices closed mixed on Monday. Shares in the Energy (+2.36%), Materials (+1.17%) and Pharmaceuticals, and Biotechnology & Life Sciences (+1.1%) sectors traded higher, while shares in the Software & Services (-1.29%), Consumer Durables & Apparel (-1.22%), and Food, Beverage & Tobacco (-0.84%) sectors were under pressure. The Dow Jones Industrial Average added 0.4% to 17073.95, the S&P 500 rose 0.1% to 2001.76, and the Nasdaq Composite dropped 0.2% to 4708.25.

Nymex crude oil was up $1.98 to $37.9 a barrel, while gold dropped 0.5% to $1263.2 an ounce. The yield on the 10-year Treasury notes rose to 1.902% from 1.883%.

The US dollar was bearish against most of its counterparts on Monday with the exception of the CHF and the NZD. On the economic data front, labor market conditions fell to -2.4 in February (estimated 1.0) after a 0.8 fall in January. In other news, consumer borrowing rose in January by the least since November 2013 to $10.5 B (estimated $17.0 B) in total credit following a revised $21.4 B gain in the previous month.

The euro was bearish against its major rivals with the exception of the NZD and the CHF. In Europe, the German factory orders dropped 0.1% in January from the prior month, when they slid by 0.2%.

The Australian dollar was bullish against its major rivals. The pair is currently testing its resistance base at 113.50, which has opened doors for a temporary stabilization. As long as 113.50 holds as the key resistance, further downside is expected with the next horizontal resistance and overlap set at 112.50 at first. A breakout below this level would call for further advance toward 112.10.

Trading Recommendation:

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 112.50. A break of this target will move the pair further downwards to 112.10. The pivot point stands at 113.50. In case the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, long positions are recommended with the first target at 114.25 and the second target at 114.55.

Resistance levels: 114.25, 114.55, 114.85

Support levels: 112.50, 112.10, 111.75

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Global macro overview for 08/03/2016

Global macro overview for 08/03/2016:

The Bank of International Settlements head economist Claudio Borio remarks in the latest BIS published report has warned about the coming "perfect storm", which is a situation that is way worse than financial crisis of 2008. The main arguments of Borio were related to unsustainable debt problems that were not solved since the last crisis. He indicates, that the world central banks have run out of measures that could stimulate the economy. According to Borio, the most important problem is overwhelming debts of developing markets and their economies. At the end, he stated that the negative interest rates might be dangerous in longer terms and will not bring any stimulus to the economy. The concussion for the market participant is rather clear: the global slowdown looks more serious than it appears and it might be the time to relocate assets from less riskier to more stable and safe.

The safe heaven asset is gold (and dollar, Swiss franc, Japanese yen and silver), so let's take a look at the technical picture of it in the daily time frame. It recently broke through the resistance at the level of 1263 and bulls are trying to test the next resistance at the level of 1307.

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Technical analysis of USD/CHF for March 08, 2016

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USD/CHF is expected to trade in line with a bearish outlook. The pair has struck against its major resistance at 1.0010, and is now turning downwards following yesterday's rallies. The 20-period moving average also reversed down and crossed below the 50-period one. Besides, the relative strength index is negatively oriented below its neutrality area of 50. In these perspectives, as long as 0.9960 holds on the upside, expect a limited consolidation before further moves to 0.9875 and 0.9850.

Trading Recommendations:

The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 0.9875. A break of this target will move the pair further downwards to 0.9850. The pivot point stands at 0.9960. In case the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, long positions are recommended with the first target at 0.9990 and the second target at 1.0010.

Resistance levels: 0.9990, 1.0010, 1.0030

Support levels: 0.9875, 0.9850, 0.98

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Technical analysis of NZD/USD for March 08, 2016

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NZD/USD is expected to trade with a bullish bias above 0.6730. Trading at 0.6769, the pair remains in consolidation, but still holds above its key support at 0.6730, which is expected to limit any room downside. The relative strength index lacks downward momentum. Therefore, even though a continuation of the consolidation cannot be ruled out, its extent should be limited. As long as 0.6735 holds on the downside, look for further advance to 0.6820 and 0.6860 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 0.6820 and the second one at 0.6860. In the alternative scenario, short positions are recommended with the first target at 0.6695 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 0.6640. The pivot point is at 0.6730.

Resistance levels: 0.6820, 0.6860, 0.69

Support levels: 0.6695, 0.6640, 0.6590

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Technical analysis of GBP/JPY for March 08, 2016

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GBP/JPY is expected to trade with a bullish bias above 160.30. The pair stands firmly above its nearest support at 160.30, and is likely to post a new rebound after the recent consolidation. The 20-period moving average is also turning up, and is about to cross the 50-period one. The intraday relative strength index remains bullish, calling for a new rise. Hence, as long as 160.30 is not broken, an advance is likely to challenge 162.45 in sight, if a breakout, looking for 163 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 162.45 and the second one at 163. In the alternative scenario, short positions are recommended with the first target at 159.35 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 158.60. The pivot point is at 160.30.

Resistance levels: 162.45, 163, 164

Support levels: 159.35, 158.60, 157.50

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USDX technical analysis for March 8, 2016

The US dollar index has broken the short-term support at 38% Fibonacci retracement and is moving lower to test the 50% retracement. Big support at the 61.8% Fibonacci retracement. A trend has reversed to bearish and we are now looking for a deep pullback if the 61.8% Fibonacci retracement fails to hold.

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Blue lines - bullish channel

The US dollar index has not only broken the bullish channel, but has also broken below the 38% Fibo and the Kumo (cloud) support. The trend is bearish in the short-term. Short-term resistance is seen at 97.65. If the price breaks above it, then we will see a bullish reversal.

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Blue lines - triangle pattern

In the weekly chart above, we see how the price has broken below the tenkan- and kijun-sen indicators. This implies that the Kumo (cloud) will be tested. The target is where the Kumo (cloud) and the lower triangle boundary are found. This intersection is at the level of 96. Breaking below it will open the way to a new low below 95.20.

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Gold technical analysis for March 8, 2016

Gold remains supported inside the bullish channel boundaries and this implies that at least one more new higher high should be hit. The target area remains around $1,300-$1,320, but this does not mean that we could see a top at lower levels. We are now at the final stage of a rise from $1,045.

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Blue lines - bullish channel

Gold price found support at $1,260-50 in the short-term and at $1,225 in the medium-term. Long-term support at a low of $1,045 last year. Gold is moving higher in an impulsive pattern. A new high is expected over the coming days.

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Blue lines - downward sloping wedge

Yellow line - long-term resistance

The price remains well above the downward sloping wedge and the Kumo (cloud) support that was resistance. The price continues to move higher in a bullish short-term trend. However, the entire formation tells me that this upward reversal is a longer-term bullish reversal and that after the upcoming pullback towards $1,200-$1,100 we should be buyers again.

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Elliott wave analysis of EUR/NZD for March 8, 2016

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Wave summary:

The pair is currently testing the resistance line from a high of 1.7222 near 1.6304. A clear breakout above this resistance line will be the first firm indication that wave [ii] has been completed with the test of 1.6085 and wave [iii] higher to 1.8551 is developing. To confirm that wave [iii] is unfolding, a breakout above resistance at 1.6633 will be needed.

Trading recommendation:

We are long EUR from 1.6125 and will move our stop higher to 1.6075. If you are not long EUR yet, then buy on a breakout above 1.6330 and use the same stop.

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Elliott wave analysis of EUR/JPY for March 8, 2016

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Wave summary:

There are no changes to our expectation. We still foresee a final rally higher to 126.24 that will end red wave c of the expanded flat correction and renewed downside pressure towards 119.90 and possibly even lower to 117.37.

The decline from a high of 149.79, reached in early December 2014, is finally nearing its end, but still has a little more downside to cover.

Trading recommendation:

We are looking for selling opportunities near 126.45 with stop placed at 127.45.

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Daily analysis of major pairs for March 8, 2016

EUR/USD: Beyond a reasonable doubt, there is a bullish signal on the EUR/USD pair. In spite of attacks from bears, the pair managed to trade higher on Monday, forming a Bullish Confirmation Pattern in the chart. This week, the pair might reach the next targets located at the resistance lines of 1.1050 and 1.1100.

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USD/CHF: This currency trading instrument has been trading largely sideways since last week, not going above the resistance level of 1.0000 and below the support level at 0.9900. There is a bound to be a breakout this week, which would take the price below the aforementioned support level or above the resistance level. Since we expect the EUR/USD pair to continue going upwards, the USD/CHF pair would most probably go downwards.

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GBP/USD: Bulls have been making commendable efforts in pushing the cable further upwards, something that occurred on Monday as well. The price first got corrected lower, but later it moved higher, rendering the effort of bears useless. The EMA 11 is above the EMA 56 as the RSI period 14 goes above the level of 50. The best line of action is to continue seeking long trading opportunities on the cable chart.

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USD/JPY: This currency trading instrument has been moving sideways since last week, the bias on the market has turned neutral in the medium-term. Unlike other JPY pairs, the USD/JPY pair has not traded upwards because the greenback is currently weak. This week, however, would determine the next direction in the market.

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EUR/JPY: There is a bullish signal leading to a Bullish Confirmation Pattern on the EUR/JPY chart. Since the EMA 11 has crossed the EMA 56 to the upside and the RSI period 14 has moved above the level of 50, it is assumed that the cross would continue trending upwards, just as it is expected in some other JPY pairs. So, a strong northward movement is expected to take place soon.

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Technical analysis of USD/CAD for March 8, 2016

General overview for 08/03/2016:

Another local low was reached as the wave (c) develops further. Nevertheless, a bullish divergence, which is being formed between the momentum oscillator and the price, indicates a possible trend reversal. To confirm this scenario, the price must break out above the level of 1.3498 and head towards the upper boundary of the neutral zone at the level of 1.3661.

Support/Resistance:

1.3733 - WR3

1.3661 - WR2

1.3498 - Technical Resistance

1.3461 - WR1

1.3396 - Weekly Pivot

1.3370 - Intraday Resistance

1.3261 - Intraday Support

1.3188 - 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 8, 2016

General overview for 08/03/2016:

The market is still trading inside of the neutral zone and there is still a chance for a possible leading diagonal structure to develop. This scenario is valid as long as the level of 123.09 is not violated. In case of violation, the odds of a downtrend resuming are high and a new low might be reached.

Support/Resistance:

127.99 - WR2

126.90 - WR1

125.55 - Intraday Resistance

124.48 - Weekly Pivot

124.25 - Intraday Support

123.41 - WS1

123.09 - Intraday Support

122.06 - Swing Low

Trading recommendations:

Buy stop orders triggered after the breakout of the level of 125.00 were profitable for some time, but currently they should be closed. 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 EUR/USD for March 08, 2016

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When the European market opens, some economic news on the Revised GDP q/q, French Trade Balance, French Gov Budget Balance, and German Industrial Production m/m is due to be released. The US will publish economic data on the NFIB Small Business Index. So amid the reports, EUR/USD will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Breakout BUY Level: 1.1072.

Strong Resistance:1.1066.

Original Resistance: 1.1055.

Inner Sell Area: 1.1044.

Target Inner Area: 1.1018.

Inner Buy Area: 1.0992.

Original Support: 1.0981.

Strong Support: 1.0970.

Breakout sell level: 1.0964.

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.

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Technical analysis of USD/JPY for March 08, 2016

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In Asia, Japan will release the Economy Watchers Sentiment, Consumer Confidence, 30-y Bond Auction, Final GDP Price Index y/y, Bank Lending y/y, Final GDP q/q, and Final GDP q/q. The US will release some economic data on the NFIB Small Business Index. So, there is a probability that the USD/JPY pair will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Resistance. 3: 113.39.

Resistance. 2: 113.17.

Resistance. 1: 112.95.

Support. 1: 112.68.

Support. 2: 112.46.

Support. 3: 112.23.

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 March 08, 2016

The USDX is trying to break the bottom formed around the zone of 97.13 and we can expect another decline towards the support level of 96.61. However, the rebounds have not been discarded yet, as the index can again correct the decline towards the 200 SMA in the H1 chart, but our short-term targets are placed in the downside.

USDXH1.png

H1 chart's resistance levels: 97.13 / 97.48

H1 chart's support levels: 96.61 / 96.29

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 96.61, take profit is at 96.29, and stop loss is at 96.91.

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Daily analysis of GBP/USD for March 08, 2016

In the H1 chart, GBP/USD is forming another bullish pattern below the resistance level of 1.4267, where bulls are still trying to break higher in order to strength the bullish bias on a short- and medium-term basis. Also, the 200 SMA in this time frame is favoring the scenario and we can eventually expect a little pullback in the process.

GBPUSDH1.png

H1 chart's resistance levels: 1.4267 / 1.4333

H1 chart's support levels: 1.4183 / 1.4069

Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the GBP/USD pair breaks a bullish candlestick; the resistance level is seen at 1.4267, take profit is at 1.4333, and stop loss is at 1.4202.

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Daily analysis of USDX for March 07, 2016

USDX is making a corrective move below the 200 SMA. The Index may be performing a decline towards the 97.13 level, where a rebound could happen. We should note that the 200 SMA is acting as a dynamic resistance.

USDXH1.png

H1 chart's resistance levels: 98.59 / 99.08

H1 chart's support levels: 98.21 / 98.08

Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the USD Index breaks with a bullish candlestick; the resistance level is 98.59, take profit is at 99.08, and stop loss is at 98.10.

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Daily analysis of GBP/USD for March 07, 2016

GBP/USD is following the bullish bias above the 200 SMA on the H1 chart and currently can make a breakout above the 1.4183 level, with a near-term target at the 1.4267 level. However, the overall scenario is calling for another pullback before a rally ends in coming hours. The MACD indicator is entering neutral territory.

1457368613_GBPUSDH1.png

H1 chart's resistance levels: 1.4183 / 1.4267

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 1.4069, take profit is at 1.3963, and stop loss is at 1.4177.

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

Daily analysis of GOLD for March 07, 2016

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Overview

Gold has been trading upward since the early session and surpassed the $1263.23 barrier again. The stochastic begins to provide a positive overlapping signal on the four-hour time frame, that supports the continuation of our bullish trend expectations efficiently in the upcoming period, opening the way towards $1300.00 barrier as the next main target. In general, the positive effect of the previously breached symmetrical triangle pattern remains valid until now. It encourages us to consider the bullish scenario in the short term, waiting for targeting the $1300.00 level as the next main station. We are aware that holding above $1226.00 and $1212.34 creates an essential condition for achieving the expected targets.

The expected trading range for today is between 1240.00 support and 1300.00 resistance.

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Daily analysis of Silver for March 07, 2016

SILVERH4.png

Overview

Silver price touched the 15.70 level, which represents the first target for the positive scenario that activated after breaching 15.35 level. The metal is trading with a bearish bias, and it might retest the breached level before resuming the bullish trend. Therefore, we will keep our bullish expectations for today if the price settles above the 15.30 level. Let me remind you that our extended target is to reach 16.35. Besides, we have to be aware that the continuation of the bullish trend depends on the stability above 15.30 and the most important above 14.67.

The expected trading range for today is between 15.00 support and 16.00 resistance.

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NZD/USD intraday technical levels and trading recommendations for March 7, 2016

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On January 28, the depicted support at 0.6400 acted as a prominent key level offering a valid buy entry. A bullish breakout above 0.6550 was executed few weeks ago.

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

The price zone of 0.6750-0.6840 constituted a significant resistance zone where recent signs of a bearish rejection were seen during the previous few weeks (Triple-Top reversal pattern).

On February 9, the NZD/USD pair failed to consolidate below the depicted support level of 0.6560.

Moreover, an obvious bullish recovery was expressed around the depicted temporary support level. Hence, the recent bullish swing towards 0.6750 was initiated.

The NZD/USD pair will remain trapped within the depicted consolidation range (0.6560-0.6750) until a breakout occurs in either direction.

Note that bullish persistence above 0.6750 (upper limit of the consolidation range) will allow further bullish advancement towards 0.6880.

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Technical analysis of Silver for March 07, 2016

Technical outlook and chart setups:

Silver is trading at $15.60 levels at the moment, looking to continue dropping lower and test $14.60 levels as well. Please note that the metal could produce a deeper correction towards $14.20 levels as well, before resuming higher. The metal seems to have 2 legs of its corrective drop that began from $15.93 levels earlier. If bears manage to hold prices below $15.93 levels going forward, the metal should remain poised to drop lower towards $14.50 levels and complete A-B-C correction before resuming the rally. It is hence suggested to remain short now with risk above $15.93 levels, targeting below $14.60 levels. Immediate support is seen at $15.20 levels, while resistance is at $15.93 levels.

Trading recommendations:

Remain short now, stop above $15.93, target is open.

Good luck!

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