Daily analysis of EUR/JPY for March 21, 2016

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Overview

The EUR/JPY pair trades steadily above the moving average 55, which keeps the 125.35 level as a critical support currently. Therefore, we will prefer the bullish bias until the price reaches the first target at 127.15. We remind you that a decline in the price below 125.35 levels will cancel the bullish overview and new bearish bias will start forming, attempting to reach 124.20 as the initial negative target.

We expect the trading range for today to be between 125.35 and 127.15.

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Daily analysis of GOLD for March 21, 2016

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Overview

The gold price shows some bearish bias in its way to potential retesting of 1,227.40 levels. We expect the positive scenario suggested in our last reports to be confirmed. A breach of the 1,282.90 level will ease movements towards the 1,300.00 barrier that represents the next main target of the current bullish wave. A break of the 1,227.40 level will stop the suggested rise and put the price under correctional bearish pressure again. We expect the trading range for today to be between 1,235.00 support and 1,280.00 resistance.

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Daily analysis of Silver for March 21, 2016

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Overview

The silver price retested 15.70 levels and traded steadily above it showing some bullish rebound signals now supported by stochastic positivity. It underpins the continuation of the bullish trend that moves inside the bullish channel depicted in the image; its next target is located at 16.35. Therefore, our bullish overview will remain valid for the upcoming period. A breach of the 16.35 level will extend the bullish wave towards 16.65 followed by 17.08 on the near-term basis. Keep in mind that holding above 15.70 and, most important, above 15.00 is needed to achieve the awaited targets.

We expect the trading range for today to be between 15.60 support and 16.35 resistance.

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NZD/USD intraday technical levels and trading recommendations for March 21, 2016

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On January 28th, 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 a 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 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 0.6550.

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

Bullish persistence above 0.6760 (upper limit of the previous consolidation range) was mandatory to allow further bullish advancement towards 0.6860 where a bearish engulfing daily candlestick was expressed Friday.

Note that a daily closure below 0.6760 is needed to allow a quick bearish decline towards 0.6550 (the depicted support level).

Otherwise, the NZD/USD pair will remain trapped between 0.6760 and 0.6860.

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USD/CAD intraday technical levels and trading recommendations for March 21, 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%) stood as a significant key level to be watched for further price reactions.

Although the price zone of 1.3170-1.3250 was expected to offer bullish support for the USD/CAD pair, temporary bearish breakdown of the same price zone is currently being manifested on the daily chart.

This price zone corresponds to the depicted weekly uptrend line and the upper limit of the previous consolidation range (prominent breakout level).

On the other hand, the price level of 1.2975 (61.8% Fibonacci level) stands as a prominent support level to be watched for significant bullish rejection.

Otherwise, bearish breakdown below 1.2975 (61.8% Fibonacci level) will allow a quick bearish decline to occur towards the price levels of 1.2770 and 1.2550.

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Intraday technical levels and trading recommendations for GBP/USD for March 21, 2016

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On January 21, 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.

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 most recent bearish swing 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). That is why, a valid buy entry was suggested near the same level.

The price zone of 1.4340-1.4488 constitutes a significant supply zone to offer evident bearish rejection.

Temporary bearish rejection was being manifested via the previous weekly candlestick until the price level of 1.4050 managed to push the pair again to the upside (Note the lower tail of the weekly candlestick).

Note that bullish persistence above the price level of 1.4488 allows further bullish advancement towards 1.4620 to take place.

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A recent lower high was achieved around the level of 1.4530. This applied extensive bearish pressure against the price level of 1.4235.

Hence, an extensive bearish breakout below 1.4235 was expressed on the daily chart (GBP/USD looked oversold few weeks ago).

That is why, signs of bullish recovery and a profitable long entry were expected around 1.3850. A recent bullish swing was expressed towards the price levels around 1.4400.

On March 14, a recent bearish movement was initiated around 1.4350 (61.8% Fibonacci level). The nearest bearish target was located around 1.4050 where the current bullish swing was initiated.

Today, the price level of 1.4488 is being challenged. It corresponds to 79.6% Fibonacci level and the backside of the depicted uptrend line.

If bullish persistence above 1.4488 is maintained, a quick bullish movement towards 1.4650 should be expected.

On the other hand, conservative traders should wait for a daily closure below 1.4350 (61.8% Fibonacci level) to SELL the GBP/USD pair.

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Intraday technical levels and trading recommendations for EUR/USD for March 21, 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 been 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 a bullish engulfing one. However, the next monthly candlesticks (September, October, and November) reflected a strong bearish rejection in the area around 1.1400.

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

Previously, the price zone of 1.1350-1.1400 acted as a significant supply zone during the previous bullish pullback. Hence, another bearish rejection should be expected around the current price zone during the current bullish swing.

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

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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 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 were depicted on the daily chart.

On February 12, a strong bearish engulfing daily candlestick was expressed near the mentioned supply zone. Hence, a quick bearish decline towards 1.1000 was executed.

A temporary bearish breakdown below 1.1000 (upper limit of the broken range) was seen on the daily chart. A quick bearish decline was expected towards 1.0820 where the most recent bullish swing was initiated.

Previously, a bullish fixation above 1.1000 was mandatory to allow further bullish movement to take place. More bullish targets were expected around 1.1320 and 1.1400 (currently being visited).

Similar to what happened on February 12, the supply zone of 1.1350-1.1400 remains a significant resistance zone for the EUR/USD pair to offer bearish rejection and a valid sell entry.

Trading Recommendation:

A valid SELL entry can be offered around the current supply zone of 1.1350-1.1400.

T/P levels should be placed at 1.1200 and 1.1070. S/L should be placed above 1.1460.

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EUR/NZD : analysis for March 21, 2016

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Overview:

Recently, EUR/NZD has been moving sideways around the price of 1.6600. At the H4 time frame, I found defined trading range between the price of 1.6475 (support) and the price of 1.6865 (resistance). Support level at the price of 1.6475 is successfully held. So, we may expect re-test of resistance. Anyway, watch for a potential breakout of trading range to confirm further movement.

Fibonacci Pivot Points:

Resistance levels:

R1: 1.6610

R2: 1.6645

R3: 1.6700

Support levels:

S1: 1.6840

S2: 1.6435

S3: 1.6355

Trading recommendation for today: Sideways market, watch for a potential breakout of trading to confirm further direction.

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Technical analysis of GBP/USD for March 21, 2016

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Overview:

  • Amid the previous events, the GBP/USD pair is still moving between the levels of 1.4360 and 1.4513. In overall, we still prefer the bullish scenario as long as the price is above the level of 1.4349. Currently, the price is moving in a bullish channel. This is confirmed by the RSI indicator signaling that we are still in a bullish trending market. The price is still above the moving average (100). Furthermore, if the GBP/USD pair is able to break out the top at 1.4513, the market will rise further to 1.4647. On the other hand, if the price closes below the strong support of 1.4349, the best location for a stop loss order is seen below 1.4283, hence, the price will fall into a bearish trend in order to go further towards the strong support at 1.4186 to test it again. The level of 1.4186 will form a strong support at the H1 time frame. Additionally, if the pair fails to pass through the level of 1.4186, the market will indicate a bearish opportunity below the level of 1.4186. So, the market will decline further to 1.4052 in order to return to the double bottom.

The weekly technical analysis of the GBP/USD pair:

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Technical analysis of EUR/USD for March 21, 2016

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Overview:

  • The EUR/USD pair is trading around the area of 1.1280 - 1.1233. Today, the level of 1.1223 represents a weekly pivot point at the H1 time frame. The pair has already formed minor resistance at 1.1308 and the strong resistance is seen at the level of 1.1388 because it represents the weekly resistance 1. So, major resistance is seen at 1.1388, while immediate support is found at 1.1223. If the pair closes below the weekly pivot point of 1.1223, the EUR/USD pair may resume it movement to 1.1103 to test the weekly support 1. From this point, we expect the EUR/USD pair to move between the levels of 1.1308 and 1.1103. Equally important, the RSI is still calling for a strong bearish market. As a result, sell below the weekly pivot point of 1.1223 with targets at 1.1103 and 1.1057 in order to form a double bottom. On the other hand, stop loss should always be taken into account, accordingly, it will be of beneficial to set the stop loss above the last bullish wave at the level of 1.1400 because the strong resistance has been already found at 1.1388.

Intraday technical levels:

  • R3: 1.1673
  • R2: 1.1508
  • R1: 1.1388
  • PP: 1.1223
  • S1: 1.1103
  • S2: 1.0938
  • S3: 1.0818
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Gold analysis for March 21 , 2016

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View :

Since our last analysis, gold has been trading downwards. As I expected, the price tested and reached our first take profit level at $1,242.00 (Fibonacci expansion 161.8%). Downward pressure started because of strong head and shoulders formation from the top and successful breakout of the neckline. Volume confirmed the HSS pattern and that is a reason for selling pressure on the market. The second take profit level is set at the price of $1,230.00.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,255.95

R2: 1,256.70

R3: 1,257.80

Support levels:

S1: 1,253.40

S2: 1,252.60

S3: 1,251.40

Trading recommendations for today: be careful when buying gold, watch for selling opportunities on rallies.

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Technical analysis of NZD/CAD for March 21, 2016

NZD/CAD has been moving sideways for almost two weeks; and this does not seem to be over as the price remains within slightly descending main channel boundaries. The Fibonacci retracement levels of the secondary channel formed at the bottom shows that the price has tested neither 261.8% nor 361.8%, while it broke above the 161.8% level.

The Fibonacci applied to the first corrective wave after the breakout of the secondary channel shows that the nearest potential target at 0.8925, being 161.8% retracement level. It also corresponds with the higher uptrend of the main channel and 361.8% retracement level of the secondary Fib channel.

Consider buying NZD/CAD while the price remains near the 0.8835 support level (S1), targeting the 0.8925 area (R1). The stop loss should be well below S2 (0.8820).

Support: 0.8820, 0.8835

Resistance: 0.8890, 0.8925

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Technical analysis of CHF/JPY for March 21, 2016

Since my original idea on CHF/JPY was published, price remained near the sell entry point - R2 (115.40). Today, price started to move lower which is likely to continue to test one of two support levels, either S2 (114.10) or S3 (113.60) being the final target for ongoing wave down.

Consider holding short positions with the stop loss just above R2, targeting S3 support level which corresponds to the 361.8% extention level of the Fibonacci channel.

Support: 114.60, 114.10, 113.60

Resistance: 114.90, 115.40

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Global macro overview for 21/03/2016

Global macro overview for 21/03/2016:

In the USA, the Thomson Reuters/University of Michigan preliminary Consumer Confidence Index dropped to 90.0 points in March, down 1.7 points from a month before. According to the report, this unexpected worsening in sentiment was caused by concerns of increasing petrol prices and mounting expenses. Moreover, another important fact is the employment situation and wages: the number of employed people is increasing steadily, but there is no chance for any increase in salaries and wages. In conclusion, the current situation is deteriorating compared to 2000 when the confidence index reached its all-time high at 112.

Let's now take a look at the US Dollar index technical picture at the daily time frame. The bears seem to be in complete control over this market as the price is trading below the 21.50 and the 100 daily moving average. Moreover, the price has recently broken below the important technical support at the level of 95.25 and currently the bears are testing this level from below. Any failure here would mean further price decrease towards the next support at the level of 94.05.

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Global macro overview for 21/03/2016

Global macro overview for 21/03/2016:

For this week there are still some important pieces of economic data that is due out, with a particular focus on the UK fundamental data release. This week should be more quiet mainly because of the upcoming Easter Bank Holiday. Nevertheless, the inflation data on Tuesday and the retail sales figures on Thursday will be watched closely by the Bank of England mainly due to the 2% inflation projection level for 2016. In conclusion, the weak data might initiate the assistance program from the BoE, despite the recent remarks made by Mark Carney. He said that the next central bank move will be more likely to increase the interest rate than to decrease it.

Let's now take a look at the technical picture of the GBP/USD pair at the daily time frame. The market has broken through the golden trend line and currently it is testing it. Moreover, it is trading just below the important support at the level of 1.4438 so the bulls are in complete control overt this market. Only a sustained break out below the level of 1.4051 would change the situation in favor for bears.

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Technical analysis of EUR/JPY for March 21, 2016

General overview for 21/03/2016:

The market is still trading inside the neutral zone and the congestion zone is getting tighter and tighter. The price fell back into the neutral zone and it is currently trading around the weekly pivot at the level of 125.39. The ongoing correction might be complex and time-consuming, but it cannot violate the 123.07 level. If it does, the alternative count will be in play, which suggests more downward wave progression towards the 122.06 level.

Support/Resistance:

127.98 - WR2

127.26 - Intraday Resistance

126.76 - WR1

125.39 - Weekly Pivot

125.58 - Intraday Resistance

124.90 - Intraday Support

124.82 - WS1

123.07 - Green Impulsive Cycle Invalidation Level

121.87 - WS2

Trading recommendations:

Day traders should buy on dips with SL below 123.07 and TP open for now.

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Technical analysis of USD/CAD for March 21, 2016

General overview for 21/03/2016:

The last leg of the corrective cycle in wave Z brown might have been completed at the level of 1.2924, but the market is still trading inside the bearish zone. To confirm the bottom is in place, the market should break out above the intraday resistance at the level of 1.3166 and enter the neutral zone in impulsive fashion.

Support/Resistance:

1.2924 - Intraday Support

1.3026 - Technical Support

1.3098 - Weekly Pivot

1.3166 - Intraday Resistance

1.3270 - WR1

Trading recommendations:

Day traders should refrain from trading and wait for a better trading setup to occur in the near term. We recommend to place buy orders again when the corrective structure is completed. In this particular case it would mean a clear break out above the level of 1.3166, ideally with a daily candle close above it.

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USDX technical analysis for March 21, 2016

The Dollar index remains in a bearish trend. Price is heading towards the 94-93.50 area. The price formation looks like an important top was formed. The trend resistance is very important at 98.50 and at 97.60.

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Red line - horizontal support

The stochastic oscillator is oversold. Price is below the Kumo (cloud). The trend is bearish as price is making lower lows and lower highs. Dollar bears should be cautious as a bounce is imminent. A short-term resistance is at 95.80 while a short-term support is at 94.55.

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Blue lines - sideways channel

Price remains trapped inside the long-term sideways channel but it is below the Kijun- and tenkan-sen indicators while it has entered inside the Kumo (cloud). This implies that price will be heading towards the lower channel boundary and the lower cloud boundary near 93. The weekly reversal with a lower high 3 weeks ago is a long-term bearish reversal pattern and will be confirmed if we break below 92.50. So long-term Dollar bulls should not ignore the bearish potential of this pattern.

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Gold technical analysis for March 21, 2016

Gold price remains in a short-term bearish trend and is making lower lows and lower highs. Price remains inside the sideways channel and as long as we remain above $1,220 there are still chances of a new high towards $1,300.

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Blue lines - bullish channel

Price has broken below the Kumo (cloud) once again on the 4 hour chart. Price remains inside the bullish channel. Price reversed from the 78.6% retracement after a big spike last week. This lower high if followed by a new low below $1,220 then we will be sure the top is in and we are heading towards $1,150.

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The weekly stochastic is overbought and diverging. This is a bearish signal. Price should at least test the Kumo (cloud) at $1,190 and the 38% Fibonacci retracement. Gold can fall even further towards $1,150. I remain neutral to bearish in the short- and medium-term trend. I believe a long-term low is in place that is why I remain bullish.

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Technical analysis of USD/JPY for March 21, 2016

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USD/JPY is expected to trade with bearish bias as the key resistance is at 112.30. Last Friday, the US stock indices settled higher again, lifted by shares in banking, health-care, and transportation sectors. The Dow Jones Industrial Average increased 0.7% to 17602, the S&P 500 gained 0.4% to 2049 - joining the DJIA in positive territory for the year, and the Nasdaq Composite was up 0.4% to 4795.

Nymex crude oil declined 1.9% to $39.44 a barrel, gold decreased a further 0.2% to $1,255 an ounce, while the benchmark 10-year Treasury yield dropped further to 1.871% from 1.903% in the previous session.

Meanwhile, the University of Michigan Sentiment Index fell to a five-month low of 90.0 in March (vs 92.2 expected) from 91.7 in February.

On the forex front, the US dollar posted a rebound against most major currencies from a five-month low, with the Wall Street Journal Dollar Index increasing 3% to 86.92. EUR/USD fell 0.4% to 1.1267 and USD/JPY rose 0.2% to 111.55. Commodities-linked currencies also gave up some gains made in the previous sessions, with USD/CAD gaining 0.2% to 1.2999, AUD/USD declining 0.6% to 0.7599, and NZD/USD losing 0.8% to 0.6794. The pair remains on the downside and below the key resistance at 112.30, lacking upward momentum. It is currently trading around the lower Bollinger band as those bands are widening. And the intraday (the 30-minute chart) relative strength index is badly directed within the selling area between 50 and 30. The intraday outlook continues to be bearish and the pair should post choppy price action targeting 111 on the downside first.

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 111. A break of this target will move the pair further downwards to 110.60. The pivot point stands at 112.30. 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 113.05 and the second target at 113.45.

Resistance levels: 113.05, 113.45, 113.80

Support levels: 111, 110.60, 110

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Technical analysis of USD/CHF for March 21, 2016

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USD/CHF is expected to trade in a lower range as key resistance is set at 0.9745. The pair remains weak below 0.9745, which acts as strong resistance. The relative strength index is above its neutrality area at 50, but lacks upward momentum. As long as the resistance at 0.9745 is not surpassed, the risk of the break below 0.9650 remains high. Our next down target is set at 0.9610.

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 0.9650. A break of this target will move the pair further downwards to 0.9610. The pivot point stands at 0.9745. 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 0.9790 and the second target at 0.9845.

Resistance levels: 0.9790, 0.9845, 0.9925

Support levels: 0.9650, 0.9610, 0.9525

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Technical analysis of NZD/USD for March 21, 2016

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NZD/USD is expected to trade in a bearish bias. The pair is in consolidation now after the recent rallies. The relative strength index is mixed, calling for caution. In the coming trading hours, the pair is likely to test its nearest resistance at 0.6830, which is expected to hold on the upside, and allow for a temporary stabilisation. To sum up, the immediate trend is mixed, and calls for caution. Below 0.6830, look for a new low to 0.6705 and 0.66660 after a limited consolidation.

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 0.6705. A break of this target will move the pair further downwards to 0.6660. The pivot point stands at 0.6830. 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 0.6880 and the second target at 0.6925.

Resistance levels: 0.6880, 0.6925, 0.6975

Support levels: 0.6705, 0.666, 0.6620

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Technical analysis of GBP/JPY for March 21, 2016

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GBP/JPY is expected to trade in a higher range as a bias remains bullish. The pair stands firmly above its nearest support at 160, and is likely to challenge its nearest resistance at 161.85. The relative strength index lacks downward momentum. Besides, the key moving averages still act as support roles. To conclude, even though a continuation of the consolidation cannot be ruled out, its extent should be limited. As long as 160 is not broken, look for a new bounce to 161.85 and 162.85 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 161.85 and the second one at 162.85. In the alternative scenario, a short position is recommended with the first target at 159 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 157.75. The pivot point is at 160.

Resistance levels: 161.85, 162.85, 163.40

Support levels: 159.00, 157.75, 156.90

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Technical analysis of Silver for March 21, 2016

Technical outlook and chart setups:

Silver rallied to fresh highs at $16.13 levels on Friday before dropping lower. The metal is seen to be trading at $15.70/75 levels for now, might be looking to hit another high around $16.30/40 levels, before reversing. It is recommended to remain flat for now, and watch out for a bearish confirmation around $16.30/35 levels before committing to short positions again. Immediate resistance is seen at $16.35 levels for now, while support is at $15.20 levels respectively. A push below $15.20 levels would confirm that a meaningful top is in place. Until then, there is still room for a push higher.

Trading recommendations:

Remain flat for now, looking to go short again.

Good luck!

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Technical analysis of Gold for March 21, 2016

Technical outlook and chart setups:

Gold is trading lower at $1,245.00/46.00 levels at this moment, looking to accelerate its drop towards $1,210.00 and $1,190.00 levels subsequently. The metal has no critical support before $1,225.00 levels now and a break below $1,220.00 would be more encouraging to bears. Please note that the yellow metal is expected to drop in a corrective manner before resuming its rally. The expected levels for a bottom formation are $1,190.00 and subsequently $1,140.00 levels respectively. It is hence recommended to hold on to short positions, with risk at $1,273.00 levels for now. Immediate resistance is seen at $1,271.00 levels, followed by $1,283.00 while support is seen through $1,220.00 levels respectively.

Trading recommendations:

Remain short for now, stop at $1,275.00, target is $1,190.00 at least.

Good luck!

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Technical analysis of EUR/JPY for March 21, 2016

Technical outlook and chart setups:

The EUR/JPY pair is seen to be consolidating between 125.20 and 126.50 levels as depicted here. The structure still remains intact till prices stay below 127.30 levels going forward. Also note that the pair has reversed from Fibonacci 50% retracement of the drop between 132.25 and 122.00 levels respectively. It is recommended to remain short for now, with risk at 127.00 levels. Immediate resistance is seen around 127.00 levels, while support is at 125.00 levels (interim) respectively. A push above 127.00 would open doors for a test of 128.00/20 resistance.

Trading recommendations:

Remain short for now, stop at 127.30 levels, target is open.

Good luck!

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Technical analysis of GBP/CHF for March 21, 2016

Technical outlook and chart setups:

The GBP/CHF pair seems to have formed a base around 1.3950 levels today, before rallying towards 1.4005 levels again. The pair is now looking set to push higher towards 1.4300 levels at least, and also has the potential to rally through 1.4600/50 levels subsequently. Bulls are expected to remain in control till prices stay above 1.3880 levels going forward. Please also note that 1.3880 levels are also near the Fibonacci 0.618 support, of the rally between 1.3730 and 1.4250/60 respectively, and hence the significance. It is recommended to remain long for now, with risk at 1.3850 levels. Immediate support is seen at 1.3880 levels, while resistance is seen through 1.4300 levels respectively.

Trading recommendations:

Remain long; stop at 1.3850, target is open.

Good luck!

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

Technical analysis of EUR/USD for March 21, 2016

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When the European market opens, some economic news will be released such as Consumer Confidence and Current Account. The US will release economic data too such as Existing Home Sales. So amid the reports, EUR/USD will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Breakout BUY Level: 1.1327.

Strong Resistance: 1.1321.

Original Resistance: 1.1310.

Inner Sell Area: 1.1299.

Target Inner Area: 1.1273.

Inner Buy Area: 1.1247.

Original Support: 1.1236.

Strong Support: 1.1225.

Breakout SELL Level: 1.1219.

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 21, 2016

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In Asia, today Japan will not release any economic data but the US will release some economic data such as Existing Home Sales. So there is a probability the USD/JPY pair will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Resistance. 3: 111.88.

Resistance. 2: 111.67.

Resistance. 1: 111.45.

Support. 1: 111.18.

Support. 2: 110.96.

Support. 3: 110.74.

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 21, 2016

EUR/USD: The EUR/USD pair broke upwards last week, moving north by 280 pips on Wednesday and Thursday. The market could continue going upwards but there is a possibility that the bears might come in and push the price downwards. The EUR could be seen weakening versus some majors this week.

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USD/CHF: This pair dropped massively last week, reaching the support level at 0.9650 and forming a Bearish Confirmation Pattern in the market. This week would see the next direction in the market, which would most probably favor the bulls, for the EUR/USD pair (which is negatively correlated to USD/CHF) might drop this week.

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GBP/USD: Last week, the Cable dropped by 320 pips from Monday to Wednesday, and rose steeply by 450 pips on Wednesday and Thursday; only to consolidate on Friday. The price has been trying to go above the distribution territory at 1.4500, which has been refusing further northward movement. That distribution territory would be broken to the upside this week, as the price moves further north.

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USD/JPY: This pair broke south on March 16, 2016. On Thursday, the price moved further southward; seriously this time around. Altogether, there was a drop of about 300 pips this week, and the demand level at 111.00 has been tested vigorously, though it seems impregnable to the bears now. There has been a slight upward bounce from that demand level, which would end up being a significant rally because the USD/JPY pair might gain lots of stamina this week.

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EUR/JPY: This cross pair simply consolidated throughout last week, without trending upwards or downwards significantly. There are mixed signals in the market: the EMA 11 is above the EMA 56 whereas the RSI period 14 is below the level 50. It is better to stay away from the market until there is a clear directional movement, which would happen this week. When this happens, it would most probably favor the bulls, for the outlook on JPY pairs is bullish this week.

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Daily analysis of USDX for March 21, 2016

USDX is being supported by the 94.69 level, where a lower low pattern formation is seen on the H1 chart. The 200 SMA on this timeframe is bearish and that scenario is still favored for at least during this week. The next targets on the downside are placed at the 93.89 and 93.00 levels. In another scenario, if the Index succeeds in breaking the 95.44 level to the upside, then we can expect a test of the 96.03 level.

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H1 chart's resistance levels: 95.44 / 96.03

H1 chart's support levels: 94.69 / 93.89

Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the USD Index breaks with a bearish candlestick; the support level is at 94.69, take profit is at 93.89, and stop loss is at 96.19.

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

Daily analysis of GBP/USD for March 21, 2016

The pair is currently working out a strong intraday bullish bias on the H1 chart, as it has been trading above the support level of 1.4423, which remains stable as a strong demand zone in a short-term basis. However, a bullish formation can be seen below the 1.4490 level and a breakout above it will produce a rally towards the 1.4555 level. The MACD indicator is at negative territory.

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H1 chart's resistance levels: 1.4490 / 1.4555

H1 chart's support levels: 1.4423 / 1.4354

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 at 1.4490, take profit is at 1.4555 and stop loss is at 1.4423.

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