NZD/USD intraday technical levels and trading recommendations for April 6, 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 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 and 0.6860 was initiated.

In March, an obvious bullish breakout above 0.6750 and 0.6860 was executed. Hence, these price levels now constitute recent support levels.

Bullish persistence above 0.6850 is mandatory to ensure further bullish advancement towards 0.7070 and 0.7170 where a prominent consolidation range was previously established in June 2015.

On the other hand, conservative traders can have a valid BUY entry around the current price level (0.6750). S/L should be located below 0.6700.

Note that a daily closure below 0.6750 invalidates the previous bullish breakout scenario allowing a quick bearish decline towards 0.6666 to occur.

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Intraday technical levels and trading recommendations for USD/CAD for April 6, 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 at 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 1.4120 level (Fibonacci Expansion 100%) stands 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 can be seen 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).

Previously, the 1.2975 level (61.8% Fibonacci level) stood as a prominent support level which provided significant bullish rejection and prevented further bearish decline.

On the other hand, the 1.3300 mark constitutes a significant resistance level as it corresponds to the 50% Fibonacci level and the backside of the broken weekly uptrend where a valid sell entry was suggested on March 24.

That's why, the USD/CAD pair will remain trapped between 1.2975 (61.8% Fibonacci level) and 1.3300 (50% Fibonacci level) until breakout occurs in either direction.

Conservative traders should wait for a daily closure below 1.2975 (61.8% Fibonacci level) to sell the USD/CAD pair. Initial T/P levels should be located at 1.2770 and 1.2550.

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Intraday technical levels and trading recommendations for GBP/USD for April 6, 2016

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On January 21, after the GBP/USD pair moved below 1.4340, evident signs of a bullish recovery were expressed around 1.4075. Hence, previous weekly candlesticks closed above 1.4340 again.

Bullish persistence above 1.4488 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 1.4340), the next demand level located at 1.3845 (historical bottom that goes back to March 2009) provided significant bullish rejection on February 26.

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.

Recently, the price zone of 1.4340-1.4488 has been a significant supply zone during the past few weeks.

That's why, a quick bearish movement towards the price levels of 1.4060 and 1.3960 is being expressed as expected in the previous articles.

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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 1.4340.

Hence, an extensive bearish breakout below 1.4340 was expressed on the daily chart. The GBP/USD pair 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 30, evident bearish rejection was expressed around 1.4350 (61.8% Fibonacci level). The nearest bearish target is located around 1.4050.

The price zone of 1.4340-1.4490 constituted a significant supply zone where a Head and Shoulders reversal pattern was expressed.

This week, daily persistence below 1.4340 (61.8% Fibonacci level) ensured further bearish decline.

Estimated bearish targets are located at 1.4060 and 1.3960.

On the other hand, if the market failed to push below the current price level of 1.4050, a bullish movement towards the price level of 1.4200 should be expected.

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Intraday technical levels and trading recommendations for EUR/USD for April 6, 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, the 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 previous bullish swing to take place towards 1.1390.

In February, 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. If not, further bullish movement towards 1.1700 should be expected.

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 (the prominent key level) ensured enough bearish momentum towards 1.0550 (the 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.

Consequently, a quick bullish movement started 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.

Recently, bullish fixation above 1.1000 has been mandatory to allow bullish movement to continue. Bullish targets were expected around 1.1320 and 1.1400.

Similar to what happened on February 12, the supply zone of 1.1320-1.1400 stands as a significant resistance zone for the EUR/USD pair to offer bearish rejection and a valid sell entry.

Daily breakdown below the depicted uptrend line (around the 1.1320 level) is needed to ensure enough bearish momentum in the market.

Trading Recommendation:

A valid sell entry can be offered around the supply zone around 1.1400. T/P levels should be placed at 1.1200 and 1.1070. S/L should be placed above 1.1460.

Conservative traders can wait for a daily closure below 1.1300 to sell the EUR/USD pair. Initial T/P levels should be located at 1.1150 and 1.1080.

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EUR/NZD analysis for April 06, 2016

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Recently, EUR/NZD has been moving downwards. As I had expected, the price tested the level of 1.6659in . EUR/NZD is trading in a clearly defined upward trend channel. Watch for buying opportunities on dips inside the channel. I found successful rejection from the lower diagonal inside an upward channel. It is a good sign for further upward movement. The first take profit level is set at the price of 1.6795. I found absorption of selling climax in the background, which is a sign that selling EUR/NZD looks very risky. The second take profit level is set at the price of 1.6850.

Fibonacci Pivot Points:

Resistance levels:

R1: 1.6780

R2: 1.6820

R3: 1.6875

Support levels:

S1: 1.6665

S2: 1.6630

S3: 1.6570

Trading recommendation for today: Watch for buying opportunities on the dips.

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Gold analysis for April 06 , 2016

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Since our previous analysis, Gold has been moving downwards. The price tested the level of $1,223.87. Since the accumulation phase in the background took the place, I am still expecting the higher price on the gold. I found strong support around the price of $1,224.00. I found the previous resistance level, which became support. Watch for buying opportunities on the dips. Take profit level is set near the price of $1,236.00.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,237.40

R2: 1,242.00

R3: 1,250.90

Support levels:

S1: 1,220.60

S2: 1,215.50

S3: 1,207.00

Trading recommendations for today: watch for buying opportunties on the dips.

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Technical analysis of USD/CHF for April 6, 2016

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Overview:

  • The USD/CHF pair rose from the level of 0.9550 towards 0.9603 yesterday. Now, the current price is set at 0.9600. On the H1 chart, the resistance is seen at the levels of 0.9640. Besides, the daily bottom is seen at the level of 0.9550. Today, the USD/CHF pair is continuing moving in a bullish trend from the new support level of 0.9550 to form a bullish channel. Amid the previous events, we expect the pair to move between 0.9550 and 0.9640. Therefore, buy above the level of 0.9550 with the first target at 0.9640 in order to test the daily resistance 1. Nevertheless, if the pair fails to pass through the level of 0.9640, the market will indicate a bearish opportunity below the level of 0.9640. The market will decline further to 0.9550 in order to return to the double bottom. Additionally, a breakout of that target will move the pair further downwards to 0.9492.

Weekly technical levels:

  • R3: 0.9950
  • R2: 0.9868
  • R1: 0.9721
  • PP: 0.9639
  • S1: 0.9492
  • S2: 0.9410
  • S3: 0.9263
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Technical analysis of NZD/USD for April 6, 2016

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Overview:

  • The NZD/USD pair continues moving downwards from the level of 0.6845. Yesterday, the pair dropped from the level of 0.6852 (this level of 0.6852 coincides with the ratio of 61.8% Fibonacci retracement levels) to the bottom around 0.6758. The current price is seen at 0.6790. Today, the first resistance level is seen at 0.6845 followed by 0.6852, while daily support 1 is found at 0.6723. Currently, the price is moving in a bearish channel. This is confirmed by the RSI indicator signaling that we are still in a bearish trending market. The price is still below the moving average (100) and (50). From this point, if the pair keeps trading below the minor support (0.6845), the price will fall into the bearish market in order to continue further towards the strong support at 0.6723. Also, the double bottom is seen at the level of 0.6758. If the trend is buoyant, then the currency pair strength will be defined as following: NZD is in an uptrend and USD is in a downtrend.

Trading recommandations:

  • The resistance is seen at the level of 0.6845. Moreover, the market is still in a downtrend. We still prefer a bearish scenario. Then, sell deals are recommended below the level of 0.6845 with the first target at 0.6758. If the trend breaks the support level of 0.6758, the pair is likely to move downwards continuing the development of a bearish trend to the level 0.6758.
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Technical analysis of EUR/CAD for April 06, 2016

According to my yesterdays' analysis, EUR/CAD started moving higher after rejecting the S1 (1.4850)support and the 200 Moving Average. Pair broke above R1 (1.4960) once again confirming a bullish trend.

Consider holding on entering long positions from the current level targeting R2 (1.5130) resistance, which is 0% retracement level of the Fibonacci applied to the channel breakout point. The stop loss should be just below S1 (1.4850).

Support: 1.4850, 1.4760, 1.4670

Resistance: 1.4960, 1.5130

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Technical analysis of NZD/CAD for April 06, 2016

NZD/CAD is trading in a clear range where 2 key levels can be seen. The resistance is near 0.9090, and the support is near 0.8910. Overall, price broke above the 200 Moving average and currently is rejecting it.This could be a signal that the rate is preparing to go further up.

However, it is better to wait for the confirmation,which could be a trend line breakout, to enter a long position. Therefore consider buying NZD/CAD on the trend line breakout, targeting the nearest resistance area around 0.9090 and stop loss just below the 0.8900.

Support: 0.8910

Resistance: 0.9090

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Global macro overview for 06/04/2016

Global macro overview for 06/04/2016:

The American Petroleum Institute reported yesterday a decrease in the US oil inventories by the level of -4300K. This number was way below the market expectations of 2900K, which would be another increase from 2600K a week ago. Moreover, another oil news is scheduled for release today, Crude Oil Inventories at 02:30 GMT. Last time the released number was way above the market expectation that resulted in oil sell-off. This time the market is expecting a smaller rise in the stockpiles, up to the level of 2850K from 2229K a week ago. In conclusion, the never ending story in oil market regarding the supply glut will be still playing a vital role in the price movements as long as there are doubts about a potential oil-freeze deal between large OPEC members such as Russia and Iran.

Let's now take a look at the crude oil technical picture in the daily time frame. Bears managed to push the prices lower towards the 38%Fibo at the level of 36.00, just below the technical support at the level of 36.10. The 100 DMA provided the support as well, and currently the market is trying to trade higher, but the bulls move looks weak and only temporary. Bulls would have to break back above the 38.50 level to regain the control over this market.

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Global macro overview for 06/04/2016

Global macro overview for 06/04/2016:

The US services sector reported a higher economic activity in March. The Institute for Supply Management reported that the ISM Non-Manufacturing index increased to 54.5 in March from 53.4 in the preceding month. Non-manufacturing industries account for more than 80% of the US economy. The sector was growing for six years, though its expansion cooled earlier this winter. In conclusion, the index is still above the 50-point level, so expectations concerning future are still positive and the GDP revisions might be to the upside.

Let's now take a look at the US Dollar index technical picture in the daily time frame. The longer term chart shows another lower low has been made since the top at the level of 100.50. It looks like the golden trend line is being tested from the downside now any failure to break out higher would result in another downward rally. Bears are still in control over this market.

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Technical analysis of USD/CAD for April 6, 2016

General overview for 04/04/2016:

Another higher high has been made in this market as bulls are making their way towards the important technical resistance at the level of 1.3292. Currently, the bottom for the wave Z brown is confirmed as the market moved to the bullish zone. The golden trend line is providing the dynamic support and as long as this trend line is not violated the outlook remains bullish.

Support/Resistance:

1.2814 - WS1

1.2850 - Swing Low

1.3048 - Weekly Pivot

1.3124 - Intraday Support

1.3146 - WR1

1.3218 - Intraday Resistance

1.3241 - WR2

Trading recommendations:

Day traders should place buy stop orders at the level of 1.3148 with SL below the level of 1.3000 and TP open for now. Any big, impulsive, long hourly candle that breaks out above the intraday resistance might suggest that bulls are back in control and we will try to join them.

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Technical analysis of EUR/JPY for April 6, 2016

General overview for 06/04/2016:

The most appropriate way to count the current wave progression is a triple zig-zag correction as the wave 2. The grey rectangular zone is a line in the sand for bulls, because any break out lower will eventually result in testing of the recent lows. Please note that the alternative count still points out more complex and time-consuming corrective cycle, labeled as (a) (b) (c) blue. Moreover, any violation of the level of 124.66 will invalidate the bullish impulsive count.

Support/Resistance:

124.66 - Blue Impulsive Cycle Invalidation Level

125.41 - WS2

125.36 - Intraday Support

126.03 - Projected Target For Wave c

126.24 - WS1

126.44 - Intraday Resistance

126.95 - Intraday Resistance

127.22 - Weekly Pivot

128.05 - WR1

128.21 - Local High

Trading recommendations:

Traders should refrain from trading and wait for another trading setup to occur .

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Technical analysis of USDX for April 6, 2016

The Dollar index continued its sideways movement with no clear direction. The trend remains bearish. Dollar bears should better wait for a bounce before selling right away. Dollar bulls should be patient as the short-term trend remains bearish.

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Black line - trend line resistance

Blue area - support zone

The Dollar index remains in a bearish trend as the price is still below the 4-hour Kumo (cloud). The price is trading around the 94.50 support but there is still no breakdown. We could see a bounce towards 95 which is the short-term resistance lowered as days go by and the price moves sideways.

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Blue lines - trading range

The weekly chart shows how the price remains trapped inside the trading range. The short-term trend is bearish as the price has entered the Kumo (cloud). Support is at 93 at the lower boundary of the Kumo and the lower range boundary. The bigger trend is neutral as the price remains trapped in this big range.

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Technical analysis of Gold for April 6, 2016

Gold bulls tried to push the price higher yesterday but the price still remains inside the bearish channel and the most probable outcome remains a move towards $1,190 before a bigger bounce.

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Blue lines - bearish channel

Blue area - support

Yellow area - resistance

Gold got rejected by the 4-hour Kumo (cloud) resistance and is turning lower early today. The price remains below the cloud and inside the downward sloping channel. The trend remains bearish. Support is at $1,215 and resistance at $1,232 for the short-term.

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The weekly chart continues to show that there are many chances the entire rise is complete, but unless we break below the upper cloud boundary we cannot be certain. As long as the price is above the Kumo we could still see a new higher high. My longer-term view remains bullish but I would prefer to go long below $1,170.The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of USD/JPY for April 06, 2016

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USD/JPY is expected to trade with a bearish bias as key resistance is at 111.05. Overnight, US stocks continued their decline as investors turned to perceived safe-haven assets like US Treasuries, gold and the Japanese yen. The Dow Jones Industrial Average dropped 0.8% to 17603, the S&P 500 lost 1.0% to 2045, and the Nasdaq Composite was down 1.0% to 4843. Utilities and financial shares were the worst performers.

On the economic data front, the US trade deficit rose to a six-month high of $47.1 billion in February (vs $46.2 billion deficit expected) from $45.9 billion in January. The Markit US Services PMI was 51.3 in March (vs 51.2 expected, 51.0 in February), and the ISM Non-Manufacturing Composite Index was at 54.5 in March (vs 54.2 expected, 53.4 in February).

Nymex crude oil gained 0.5% to $35.89 a barrel, gold surged 1.3% to $1,231 an ounce, while the benchmark 10-year Treasury yield declined further to 1.727% from 1.779% in the previous session.

On the forex front, the US dollar slid further against the yen, with USD/JPY falling 0.9% to 110.31, the lowest level since October 31, 2014. On the other hand, the pound reversed course and fell 0.7% to 1.4159. Those commodities-linked currencies continued to be under pressure, with USD/CAD rising 0.4% to 1.3135 (day-high at 1.3217), AUD/USD dropping 0.8% to 0.7543 and NZD/USD being down 0.4% to 0.6803. Meanwhile, EUR/USD edged down 8 points to 1.1382.The pair keeps trading on the downside while being capped by a declining trend line. The intraday bearish bias is maintained by the descending 20- and 50-period (30-minute chart) moving averages. A break below the psychological 111.05 level would bring the pair to the first downside target at 109.90 (around yesterday's low) and then to the second one at 109.50 (last seen on October 31, 2014).

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 109.90. A break of this target will move the pair further downwards to 109.50. The pivot point stands at 111.05. 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 111.40 and the second target at 111.75.

Resistance levels: 111.40, 111.75, 112.00

Support levels: 109.90, 109.50, 109

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Technical analysis of USD/CHF for April 06, 2016

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USD/CHF is expected to trade in a lower range as key resistance is at 0.9600. From a technical view, the pair remains weak, and is also capped by its falling 20-period and 50-period moving averages. The key horizontal resistance at 0.9600 maintains strong selling pressure on the prices. Besides, the relative strength index is mixed to bearish below its neutrality area at 50. In these perspectives, as long as the resistance at 0.9600 is not surpassed, the risk of a break below 0.9525 remains high. Our next down target is set at 0.9500.

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 0.9525. A break of this target will move the pair further downwards to 0.9500. The pivot point stands at 0.9600. 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 0.9625 and the second target at 0.9650.

Resistance levels: 0.9625, 0.9650, 0.9675

Support levels: 0.9525 , 0.9500, 0.9465

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Technical analysis of NZD/USD for April 06, 2016

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NZD/USD is under pressure and expected to trade in a lower range. The pair remains under pressure below its key resistance at 0.6850, and is likely to challenge its nearest support at 0.6755 (April 5 low). The risk of a break below this threshold remains high, as the relative strength index lacks upward momentum and the 50-period moving average is still heading downward. To sum up, as long as 0.6850 is resistance, look for further decline to 0.6755 and 0.6725 in extension.

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 0.6775. A break of this target will move the pair further downwards to 0.6725. The pivot point stands at 0.6850. 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 0.6885 and the second target at 0.6925.

Resistance levels: 0.6885, 0.6925, 0.6965

Support levels: 0.6775, 0.6725, 0.6675

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Technical analysis of GBP/JPY for April 06, 2016

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GBP/JPY is expected to trade in a lower range as the pair is under pressure. The pair stays below its resistance at 157.15 and has been capped by its descending 50-period moving average. The relative strength index stays below its 50% neutrality area and lacks upward momentum. The first target to the downside is set at the horizontal support and overlap at 155.35. A break below this level would open way to further weakness toward 154.55.

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 155.35. A break of this target will move the pair further downwards to 154.55. The pivot point stands at 157.15. 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 158.35 and the second target at 158.90.

Resistance levels: 158.35, 158.90, 159.55

Support levels: 155.35, 154.55, 154

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Elliott wave analysis of EUR/NZD for April 6 - 2016

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Wave summary:

We are still looking for support near 1.6640 to protect the downside for a rally above 1.6833 confirming upside acceleration towards 1.7220 on the way higher to 1.8550.

Even if minor support at 1.6640 should be broken, back-up support is seen near 1.6578. It will take an unexpected break below support at 1.6430 to question this rally.

Trading recommendation:

We are long in EUR from 1.6250 with stop placed at 1.6600. If you are not long in EUR yet, then buy near 1.6640 or upon a break above 1.6800 and use the same stop at 1.6600.

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Elliott wave analysis of EUR/JPY for April 6 - 2016

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Wave summary:

The decline from 128.22 does have all the earmarks of being an impulsive decline. We are currently looking for a minor consolidation before the next decline below support at 125.22 and, more importantly, a break below support at 124.64 confirming a new test of the 122.06 low on the way towards the ideal downside target at 117.38.

Trading recommendation:

We are short in EUR from 127.35 and will move our stop lower to 126.50. As we missed our take profit at 125.05, we have removed it. If you are not short yet, then sell near 125.88 or upon a break below 125.22 and use the same stop at 126.50.

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Technical analysis of EUR/USD for April 06, 2016

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When the European market opens, some economic news will be released such as the Retail PMI and German Industrial Production m/m. The US will release economic data too such as Crude Oil Inventories. So amid the reports, EUR/USD will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Breakout BUY Level: 1.1435.

Strong Resistance: 1.1428.

Original Resistance: 1.1417.

Inner Sell Area: 1.1406.

Target Inner Area: 1.1379.

Inner Buy Area: 1.1352.

Original Support: 1.1341.

Strong Support: 1.1330.

Breakout SELL Level: 1.1323.

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 April 06, 2016

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In Asia, Japan will release the Leading Indicators and the US will release some economic data such as Crude Oil inventories. 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: 110.90.

Resistance. 2: 110.69.

Resistance. 1: 110.47.

Support. 1: 110.20.

Support. 2: 109.99.

Support. 3: 109.77.

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 April 6, 2016

EUR/USD: Since the EUR/USD pair tested the resistance line at 1.1400, it has been difficult for the price to go above that line. The bulls have continued battering that line of defense (an action that started last week). The resistance line has now become a formidable barrier that must be breached to the upside so that the uptrend could continue; otherwise a large pullback might occur.

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USD/CHF: The USD/CHF pair has been consolidating to the downside so far this week. The support level at 0.9550 has been tested and it would soon be breached to the downside. This is because the outlook on the market is bearish for this week: as long as the EUR/USD pair continues to show its bullishness, the USD/CHF pair would remain under bearish pressure.

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GBP/USD: The Cable went downwards on Tuesday, which led to a bearish signal on the 4-hour chart. The EMA 11 is below the EMA 56 and the RSI period 14 is below the level 50. The price could go on to reach the accumulation territories at 1.4100 and 1.4050. As long as the price does not go above the distribution territory at 1.4350, the bearish signal would be valid.

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USD/JPY: The bearish journey of the USD/JPY pair keeps getting stronger and stronger. Since the beginning of this week, the price has moved south, testing the demand level at 110.00. That demand level would soon be breached to the downside, as bears target another demand level at 109.00, which could be tested this week.

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EUR/JPY: There is a "sell" signal on the EUR/JPY pair and there is a valid Bearish Confirmation Pattern on the 4-hour chart. The EMA 11 is below the EMA 56; and the RSI period 14 is below the level 50. The next targets to be reached by bears are the demand zones at 125.00 and 124.50.

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Daily analysis of USDX for April 05, 2016

The USDX remains trapped above the support level of 94.40, which is showing some strength and pushing higher to the Index. Currently, a breakout above the 94.85 level cannot be discarded yet as the USDX may retest the 200 SMA before resuming the downside movements. However, our targets remain placed around the 93.95 level.

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H1 chart's resistance levels: 94.85 / 95.12

H1 chart's support levels: 94.40 / 93.95

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 94.40; take profit is at 93.95; and stop loss is at 94.85.

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Daily analysis of GBP/USD for April 05, 2016

The GBP/USD pair remains very weak against the overall structure, which is still favoring the downside as the pair is consolidating once again below the 200 SMA on the H1 chart. Currently, if the pair does a breakout below the 1.4118 level, then we can expect another decline towards the 1.4062 level. The MACD indicator is in negative territory.

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H1 chart's resistance levels: 1.4176 / 1.4267

H1 chart's support levels: 1.4118 / 1.4062

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 1.4176; take profit is at 1.4267; and stop loss is at 1.4086.

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