NZD/USD intraday technical levels and trading recommendations for May 3, 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. The 0.6550 level was broken above a few weeks ago.

Bullish persistence above 0.6550 (depicted recent support) was necessary 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 at 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 to be watched for valid buy entries.

Conservative traders were advised to have a BUY entry around the 0.6760 level. S/L should be raised to 0.6880 to secure more profits.

The recent bearish pullback towards 0.6850 was considered as another valid signal to BUY the NZD/USD pair.

This week, bullish persistence above 0.6850 (recent support) is mandatory to maintain enough bullish momentum in the market. Bullish targets are projected towards 0.6960, 0.7050, and 0.7150.

On the other hand, a daily closure below the 0.6850 level enhances a quick bearish movement towards 0.6750.

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Intraday technical levels and trading recommendations for EUR/USD for May 3, 2016

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In January 2015, the EUR/USD pair moved below the major demand levels near 1.2100 and 1.2000 where historical bottoms had 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 1.1500 and 1.1600.

In February, the depicted price levels around 1.1500-1.1550 acted as a significant supply zone during the previous bullish pullback.

Hence, another bearish rejection should be expected around the mentioned price zone. If not, further bullish movement towards 1.1700 should be expected.

In the long-term prospect, the level of 0.9450 will remain a projected bearish target if a monthly candlestick comes to close below the depicted monthly demand level of 1.0570.

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On December 2015, 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. Bullish fixation above 1.1000 was mandatory to allow bullish movement to continue.

Similar to what happened on October 2015, the supply zone of 1.1410-1.1550 should constitute a significant resistance zone for the EUR/USD pair.

Currently, the price level of 1.1600 corresponds to the backside of the broken uptrend line depicted on the chart. That's why, the current bearish rejection is being manifested.

Today, daily persistence below the price level of 1.1400 is needed to ensure further bearish momentum in the market. Otherwise, the EUR/USD pair may remain trapped between 1.1410 and 1.1520.

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

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Since January 2016, bullish persistence above 1.4500 was mandatory to maintain enough bullish strength in the market.

However, as the previous weekly candlesticks maintained their bearish persistence below the depicted weekly supply zone (below 1.4470), the next demand level located at 1.3845 (historical bottom that goes back to March 2009) provided a significant bullish rejection on February 26.

As expected, an evident bullish recovery and a bullish engulfing weekly candlestick were expressed around 1.3845 (a prominent weekly demand level) where a significant bullish swing was initiated on March 1.

The price zone of 1.4475-1.4670 was a significant supply zone during the past few weeks.

This week, the depicted downtrend line comes to meet the GBP/USD pair around the same price zone.

That is why, a bearish rejection should be expected again around the upper limit of it (1.4670 level).

The nearest destinations for the GBP/USD pair would be located at 1.4475, 1.4300, 1.4220 and finally, 1.3845.

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A lower high was recently achieved around the level of 1.4530. This applied extensive bearish pressure against the price level of 1.4470.

The GBP/USD pair looked oversold when the previous bearish decline extended below 1.4040 (temporary support).

That is why signs of a bullish recovery and a profitable long entry were suggested around 1.3845. A recent bullish swing was expressed towards the price levels around 1.4470.

The price zone of 1.4470-1.4670 constituted a significant supply zone where the depicted Head and Shoulders reversal pattern was expressed.

On April 7, the market failed to push below the price level of 1.4050. Hence a bullish movement was executed again towards the price levels of 1.4670 and 1.4750 (slightly above the 61.8% Fibonacci level).

That's why, the current shooting-star daily candlestick is being expressed indicating significant bearish rejection around 1.4700-1.4750.

This week, daily persistence below 1.4470 will be needed to enhance further bearish decline towards 1.4380 and 1.4170.

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EUR/NZD analysis for May 03, 2016

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Recently, EUR/NZD has been moving upwards. As I expected, the price tested the level of 1.6587 in a high volume. My upward targets at the price of 1.6425 and 1.6590 were met. According to the 15M time frame, I found weakness, which is a sign that buying EUR/NZD at this stage looks risky. I expected a downward correction at least on this pair. I have placed the Fibonacci expansion to find potential downward targets. I got the Fibonacci expansion of 61.8% at the price of 1.6535, the Fibonacci expansion of 100% at the price of 1.6515, and the Fibonacci expansion of 161.8% at the price of 1.6485. Watch for selling opportunities on the rallies. Anyway, if the price breaks the level of 1.6590 in a high volume, we may see potential testing of 1.6700.

Fibonacci Pivot Points:

Resistance levels:

R1: 1.6455

R2: 1.6485

R3: 1.6530

Support levels:

S1: 1.6360

S2: 1.6330

S3: 1.6285

Trading recommendation for today: Be careful when buying EUR/NZD and watch for selling opportunities on the rallies.

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Gold analysis for May 03 , 2016

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Since our previous analysis, gold has been moving sideways at the price of $1,293.00. According to the 4H time frame, I found a strong sign of weakness. Bullish bar is in a very high volume but closes in the middle. I also found a broken upward diagonal, which is a sign that buying looks risky. There is also consolidation of trading range between the price of $1,303.00 (resistance) and the price of $1,287.00 (support). I would like to see the breakout of support or resistance to confirm further direction. Since I found the weakness according to the 4H time frame, I would like to see breakout of support. The first take profit level is set at the price of $1,275.00.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,302.00

R2: 1,305.90

R3: 1,312.00

Support levels:

S1: 1,289.50

S2: 1,285.40

S3: 1,279.30

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

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Technical analysis of NZD/USD for May 03, 2016

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Overview:

  • The NZD/USD pair movement was debatable as it took place in a narrow sideways channel for a while. The market showed signs of instability. According to the previous events, the price is still moving between the levels of 0.7056 and 0.6959. The daily resistance and support are seen at the levels of 0.7056 and 0.7088 respectively. In consequence, it is recommended to be cautious while placing orders in this area. Thus, we should wait until the sideways channel has completed. The price spot of 0.7050 remains a significant resistance zone. Therefore, there is a possibility that the NZD/USD pair will move to the downside and the fall structure does not look corrective. The price spot of 0.6747 remains a significant resistance zone. Therefore, there is a possibility that the NZD/USD pair will move to the downside and the fall structure does not look corrective. So, sell below 0.7050 with the first target at 0.6960. In overall, we still prefer the bearish scenario as long as the price is below the level of 0.7050. Furthermore, if the NZD/USD pair is able to break out the bottom at 0.6960, the market will decline further to 0.6914. However, it would also be safe to consider where to place a stop loss; this should be set above the second resistance of 0.7075.
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Technical analysis of USD/CHF for May 03, 2016

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Overview:

  • The USD/CHF pair dropped from the level of 0.9509 to the bottom around 0.9443. Today, the first resistance level is seen at 0.9509 followed by 0.9578, while daily support 1 is seen at 0.9425. Additionally, the price is in a bearish channel now. Amid the previous events, the pair is still in a downtrend. From this point, the USD/CHF pair is continuing in a bearish trend from the new resistance of 0.9509. Thereupon, the price spot of 0.9509 remains a significant resistance zone. Therefore, a possibility that the USD/CHF pair will have downside momentum is rather convincing and the structure of a fall does not look corrective. In order to indicate a bearish opportunity below 0.9509, sell below 0.9509 with the first targets at 0.9425. If the trend is able to break the first support at the level of 0.9425, then the market will continue falling towards the next support at 0.9369. However, the stop loss should be located above the level of 0.9578.
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Technical analysis of USD/JPY for May 03, 2013

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USD/JPY is under pressure. Overnight, US stocks rebounded, led by shares in retailing, consumer services and real estate sectors. The Dow Jones Industrial Average rose 0.7% to 17891, the S&P 500 added 0.8% to 2081, and the Nasdaq Composite was up 0.9% at 4817.

Nymex crude oil dropped a further 2.5% to $44.78 a barrel, gold slid 0.2% to $1,291 an ounce (day-high at $1,304), silver fell 1.6% to $17.53 an ounce (day-high at $18.01), and the benchmark 10-year Treasury yield climbed to 1.866% from 1.821% in the previous session.

On the forex front, the US dollar continued to fall against other major currencies. EUR/USD charged up another 0.7% to 1.1529, back above the 1.1500 level for the first time since last August. GBP/USD rose another 0.4% to 1.4671, and USD/JPY stabilized at 106.40.

Meanwhile, commodities-linked currencies were broadly stronger, with USD/CAD declining 0.2% to 1.2527, AUD/USD rising 0.8% to 0.7665 and NZD/USD gaining 0.7% to 0.7018. The pair is pressing to the downside lacking upward momentum. It is also trading around the lower Bollinger band, suggesting a possible downside acceleration. And the bearish bias is maintained by the descending 50-period moving average. At the same time, the intraday relative strength index remains within the selling area between 50 and 30. If the pair break below the immediate support at 105.50, it would sink further toward 104.70.

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 105.50. A break of this target will move the pair further downwards to 104.70. The pivot point stands at 106.85. 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 107.85 and the second target, at 108.75.

Resistance levels: 107.85, 108.75, 109.90

Support levels: 105.50, 104.70, 104

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Technical analysis of USD/CHF for May 03, 2016

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USD/CHF is under pressure. The pair has been capped by a negative trend line since April 28 and remains on the downside. Meanwhile, the relative strength index lacks upward momentum. The first target to the downside is therefore set at 0.9500. A break below this level would open the way to further weakness toward the horizontal support and overlap at 0.9475 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 0.950. A break of this target will move the pair further downwards to 0.9475. The pivot point stands at 0.9605. 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 this scenario, long positions are recommended with the first target at 0.9655 and the second one, at 0.9700.

Resistance levels: 0.9655, 0.9700, 0.9730

Support levels: 0.95, 0.9475, 0.9435

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Technical analysis of USDX for May 3, 2016

The Dollar index remains in a bearish trend and has already reached our 92.50 target we mentioned yesterday and moved even lower as its major component, the EUR/USD, is rallying above 1.15. The trend is bullish but Dollar bears should remain on high alert and use tight stops.

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Black lines - sideways channel broken

The Dollar index remains below both the tenkan- and kijun-sen indicators and, of course, below the Kumo (cloud). The trend remains bearish. The RSI and stochastic are oversold signaling that the bears should be on high alert and use tight stops. Our 92.50 target was surpassed. The price has reached important long-term support as shown on the weekly chart below.

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The Dollar index has broken below the weekly Kumo (cloud) and this is a worrying sign for the longer-term trend. However, the price has reached important long-term support of the 38% Fibonacci retracement of the rise since 2013. The medium- and short-term trends are bearish. However, this decline could be part of the bigger sideways consolidation since 2014 before the last upward breakout.The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of Gold for May 3, 2016

Gold made a shallow pullback yesterday but remains inside a short-term bullish trend targeting $1,325. The price has some more upside left but as I said in previous posts, Gold bulls need to be very cautious.

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Red line - resistance

Black line support

Yellow area - overbought signal

Gold has broken below the short-term support by the tenkan-sen and is trying to break above it again today. Resistance is at $1,297. The next support is at $1,270. The stochastic is overbought and turning lower as the RSI also is. We could spot another bearish divergence in these oscillators before a meaningful bearish reversal in the price.

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Red line - resistance/price target projection

The gold price is expected to reach the upward sloping red trend line that touches the two previous highs. The stochastic is diverging and I believe a new high in the area of $1,325 will be the final one before a pullback towards $1,150. The trend remains bullish for now with no reversal signal yet. Important short-term support is at $1,270.

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Technical analysis of NZD/USD for May 03, 2016

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NZD/USD is expected to trade with a bullish bias. The pair remains on the upside within its bullish channel. The nearest support at 0.6930 maintains strong buying pressure on the prices. Besides, the relative strength index is heading upward and stays above its neutrality area at 50. To sum up, as long as 0.6930 holds on the downside, look for further advance to 0.7025 and 0.7055 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 0.7025 and the second one at 0.7055. In the alternative scenario, short positions are recommended with the first target at 0.6890 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 0.6865. The pivot point is at 0.6930.

Resistance levels: 0.7025, 0.7055, 0.71

Support levels: 0.6890, 0.6865, 0.6835

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Technical analysis of GBP/JPY for May 03, 2016

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GBP/JPY is still under pressure. The pair stays below its key resistance at 157.15 and remains under pressure. Meanwhile, the relative strength index is negatively oriented. As long as 157.15 is not broken up, the first target to the downside is set at 154. A break below this level would open the way to further weakness toward 153.15.

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 154. A break of this target will move the pair further downwards to 153.15. 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 158.40 and the second target at 159.10.

Resistance levels: 158.40, 159.10, 159.95

Support levels: 154, 153.15, 152.20

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Global macro overview for 03/05/2016

Global macro overview for 03/05/2016:

In his recent remarks on Monday at the Milken Institute Global Conference, John Williams, president of the Federal Reserve Bank of San Francisco, reiterated his view that the US economy is ready for higher interest rates. In his opinion, the gradual return to more normal interest rate levels over the next couple of years would make more sense as that would be a sign of strength for the global economy. Moreover, he added that the biggest systemic financial risk is the possibility that "broad sets of assets are going to see big movements downward" as interest rates rise. Nevertheless, he insisted on the fact, that the Fed has made an amazing progress in the recent years, and they are prepared for the ongoing global headwinds. In conclusion, the hawkish tone of Williams' speech might shed some light on the Fed's possible further policy towards interest rates hike, but please remember that he is known for being the leader of the Fed's hawks camp for years now.

Let's now take a look at the US Dollar index technical picture on the daily timeframe. The market is trading right at the level of 92.47, which is the 38% Fibo support and technical support as well. As the long-term of the US Dollar index is bullish, now might be the time for the bulls to step in, reverse the short-term trend and push the prices higher. Growing bullish divergence supports the view.

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Global macro overview for 03/05/2016

Global macro overview for 03/05/2016:

The Reserve Bank of Australia (RBA) has cut its interest rates by 0.25% to 1.75% for the first time in 12 months this morning. In its announcement, the RBA said: "Inflation has been quite low for some time and recent data was unexpectedly low. While the quarterly data contain some temporary factors, these results, together with ongoing very subdued growth in labour costs and very low cost pressures elsewhere in the world, point to a lower outlook for inflation than previously forecast". In conclusion, it looks like the RBA could not tolerate the low inflationary pressures anymore and this is the reason for the rate cut.

Let's now take a look at the EUR/AUD technical picture on the daily timeframe. After the news release, the bulls managed to push the price above the technical resistance at the level of 1.5204, and now the market is trading just below the 50% Fibo at the level of 1.5335. In case of a breakout above this resistance, the next resistance is seen at the level of 1.504, but the growing bearish divergence on this and lower timeframes points to a possible corrective cycle to the downside before new highs are made.

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Technical analysis of USD/CAD for May 3, 2016

General overview for 03/05/2016:

Not much has changed in this pair since yesterday: the market is still trading above the intraday support and there is still a possibility that the ending diagonal pattern is forming right now in this market. It will act as a final wave of the whole corrective structure in wave Z. To confirm this scenario, the market must make one more sub-wave to the downside and then strongly rebound to the upside, targeting the first the intraday resistance at the level of 1.2587 and then the level of 1.2756. Otherwise the corrective wave progression will evolve into a more complex and time-consuming pattern.

Support/Resistance:

1.2434 - WS1

1.2498 - Intraday Support

1.2574 - Weekly Pivot

1.2587 - Intraday Resistance

1.2651 - WR1

1.2694 - Intraday Resistance

1.2756 - Wave XX High

1.2792 - WR2

1.2873 - WR3

Trading recommendations:

Day traders should consider opening buy orders only if the level of 1.2587 is clearly violated (H1 candle close above this level), with SL below the level of 1.2498 and TP at the level of 1.2694.

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Technical analysis of EUR/JPY for May 3, 2016

General overview for 03/05/2016:

The weekly pivot at the level of 122.97 has proven to be a tough nut to crack so far as the price was rejected two times already. Nevertheless, from the Elliott wave perspective the outlook is still the same: two counts are possible here. The main count indicates an (a)(b)(c) irregular flat corrective cycle with the (c) leg yet to unfold. The (b) leg of this cycle is currently completed with the bottom at the level of 121.68. The alternative count, however, indicates that the top for the big wave B is already in place at the level of 126.45 and since then the impulsive structure in big wave C started to develop to the downside. Wave 1 of this cycle is completed, and now the market should develop an internal corrective cycle to the upside, targeting the levels of 122.97 and if broken, 124.30. Please notice that the growing bullish divergence between the price and momentum oscillator supports both views at the time of writing.

Support/Resistance:

119.54 - WS1

121.68 - Intraday Support

122.32 - Intraday Support

122.97 - Weekly Pivot

122.95 - Intraday Resistance

124.30 - WR1

126.45 - Swing High

Trading recommendations:

The 122.32 level has been broken, but so far the bulls were too weak to push the price higher into the neutral zone. We still keep our trade open with SL below the level of 121.68 and TP at the level of 123.67.

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

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Wave summary:

The rally of the 1.6196 low is not yet convincing in any way, but as long as this low is able to protect the downside, we will let the bullish outlook have the benefit of doubt and look for more upside pressure towards 1.6592 and higher towards 1.6874.

In the short term, we must allow for a minor set-back to 1.6314 before a new test of the minor resistance at 1.6465 is expected and above here calls for a test of 1.6592 and higher.

Only an unexpected break below 1.6196 will invalidate the bullish outlook and call for a move closer to 1.6100.

Trading recommendation:

We are long in EUR from 1.6365 with our stop placed at 1.6225. If you are not long in EUR yet, then buy near 1.6314 and use the same stop at 1.6225.

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

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Wave summary:

The extremely erratic decline from 141.06 could have bottomed at 121.66, but if this is the case, then a break above minor resistance at 122.95 should be seen soon and, more importantly, a break above resistance at 124.04 will confirm the low for a new rally back to 126.47.

That said, we have to be aware of the possibility of more downside pressure to below 121.66 for a move closer to 117.99 as long as minor resistance at 122.95 is able to protect the upside.

Trading recommendation;

We are long in EUR from 122.95 with stop placed at 121.65. If you are not long in EUR yet, then buy a break above 122.95 and use the same stop at 121.65 expecting to move it higher soon,

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Technical analysis of EUR/JPY for May 03, 2016

Technical outlook and chart setups:

The EUR/JPY pair rallied through 122.90 levels yesterday before pulling back lower. As it was discussed yesterday, the pair should extend its retracement towards 123.30 levels at least. Please note that the pair could have also formed a double bottom at 121.50 levels, but that would be confirmed on a break above 126.40 levels. In either case, a rally should be unfolding through fibonacci 0.382 or 0.618 resistance levels as depicted on the chart here. It is hence recommended to remain long for now, with risk at 121.00 levels. Immediate support is seen at 121.50 levels, while resistance is at 123.30 levels respectively.

Trading recommendations:

Remain long for now, stop at 121.40, targets are 123.30 and 124.50.

Good luck!

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Technical analysis of EUR/USD for May 03, 2016

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When the European market opens, some economic news will be released such as the PPI m/m. The US will release economic data too such as Total Vehicle Sales. So amid the reports, EUR/USD will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Breakout BUY Level: 1.1578.

Strong Resistance: 1.1571.

Original Resistance: 1.1560.

Inner Sell Area: 1.1549.

Target Inner Area: 1.1522.

Inner Buy Area: 1.1495.

Original Support: 1.1484.

Strong Support: 1.1473.

Breakout SELL Level: 1.1466.

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 May 03, 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 Total Vehicle Sales. So there is a probability the USD/JPY will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Resistance. 3: 106.76.

Resistance. 2: 106.55.

Resistance. 1: 106.34.

Support. 1: 106.10.

Support. 2: 105.89.

Support. 3: 105.68.

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 GBP/CHF for May 03, 2016

Technical outlook and chart setups:

The GBP/CHF pair is seen to be trading lower at 1.3995 levels at the moment, looking to resume its rally towards 1.4300 levels before producing a meaningful retracement lower. The wave structure indicates that GBP/CHF might have just resumed its rally as wave 5, towards 1.4300 levels, by bouncing off the fibonacci 0.50% support levels around 1.3920 levels earlier. It is hence recommended to remain long for now and also look to add further on dips ahead of 1.3900 levels, with risk at 1.3900 respectively. Bulls are poised to remain in control till the prices stay above 1.3900 levels. Immediate support is seen through 1.3900 levels, while resistance is seen at 1.4300 levels respectively.

Trading recommendations:

Remain long for now, stop at 1.3900 levels, target is open.

Good luck!

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

Technical analysis of Silver for May 03, 2016

Technical outlook and chart setups:

Silver is trading at $17.60/70 levels for now after hitting fresh highs at $18.00 levels yesterday. The metal might have formed a meaningful top around $18.00 levels or would push through $18.40/50 levels before reversing lower again. Please note that $18.40/50 levels is a major weekly resistance level, and that the metal should remain poised to produce a meaningful retracement after breaking the same level. It is recommended to initiate 50% short positions at $17.70/80 and the remaining at $18.40 if the prices manage to reach there, with risk at $18.75 levels. Immediate resistance is seen at $17.80 levels, while support is at $17.00 levels respectively. Bears should be poised to regain control any time soon now.

Trading recommendations:

Remain 50% short at $17.70/80 levels, the remaining at $18.40, stop at $18.75, target is open.

Good luck!

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Technical analysis of Gold for May 03, 2016

Technical outlook and chart setups:

Gold is seen to be trading at $1,292.00 levels at the moment, after hitting fresh highs at $1,303.00/04.00 levels yesterday. The yellow metal is expected to face resistance at $1,295.00/96.00 levels during intraday rallies. Please note that Gold prices can push higher through $1,307.00/10.00 levels to take out major weekly resistance before reversing lower. It is hence recommended to take 50% short positions around $1,295.00/96.00 levels and the remaining around $1,307.00/10.00 levels with risk at $1,320.00. Immediate resistance is at $1,295.00/96.00 levels, while support is seen at $1,287.00 levels respectively.

Trading recommendations:

Stay 50% short at $1,295.00/96.00 and the remaining at $1,307.00/10.00 levels, stop at $1,320.00 levels, target is open.

Good luck!

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

Daily analysis of major pairs for May 3, 2016

EUR/USD: The EUR/USD went upwards on Monday, in solidarity with the bullish signal that started last week. As it was forecasted, the price has gone above the support line at 1.1500, targeting the resistance line at 1.1550; which would be broken to the upside very soon. The bias on the market is bullish.

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USD/CHF: The USD/CHF went downwards on Monday, in solidarity with the bearish signal that started last week. As it was forecasted, the price has gone below the resistance level at 0.9600, targeting the support level at 0.9500; which would be broken to the downside very soon. The bias on the market is bearish.

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GBP/USD: The GBP/USD has gone above the accumulation territory at 1.4650, targeting the distribution territory at 1.4700. There is a Bullish Confirmation Pattern in the market, and further bullish movement is possible. This week, the distribution territories at 1.4750 and 1.4800 would be overcome.

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USD/JPY: This pair moved sideways yesterday, in the context of a downtrend. The EMA 11 has gone below the EMA 56, while the RSI period 14 is below the level 50. The price is expected to go further south, reaching the demand levels at 106.00 and 105.50. This bearishness would also be visible on other JPY pairs this month.

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EUR/JPY: At the beginning of this week, this cross bounced slightly upwards in the context of a downtrend. The upward bounce pales into insignificance when compared to the recent bearish outlook on the market. Further bearish movement is possible, and the "sell" signal cannot be jeopardized unless the price goes upwards by 300 pips (which seems unlikely right now).

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Daily analysis of USDX for May 03, 2016

USDX continues to extend the strong decline below the 200 SMA on the H1 chart, which is also strongly pointing to the downside. Currently, the Index is finding a bottom around the 92.56 level, where a small rebound can happen to test the resistance at the 92.91 level, in a corrective way. The MACD indicator is still hovering on the neutral territory, which could be the indicator that a correction is coming soon.

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H1 chart's resistance levels: 92.91 / 93.26

H1 chart's support levels: 92.56 / 91.91

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 92.56, take profit is at 91.91, and stop loss is at 93.20.

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

Daily analysis of GBP/USD for May 03, 2016

During Monday's session, the pair had a breakout day above the resistance zone of 1.4633, in an effort to reach the 1.4722 level. If the Cable does a pullback around it, then we can expect a decline towards the 1.4633 level and maybe another lower breakout toward the 200 SMA on the H1 chart. By the way, the main outlook remains bullish.

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H1 chart's resistance levels: 1.4722 / 1.4792

H1 chart's support levels: 1.4633 / 1.4549

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 1.4722, take profit is at 1.4792 and stop loss is at 1.4650.

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

Intraday technical levels and trading recommendations for GBP/USD for May 2, 2016

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Since January 2016, bullish persistence above 1.4500 was mandatory to maintain enough bullish strength in the market.

However, as the previous weekly candlesticks maintained their bearish persistence below the depicted weekly supply zone (below 1.4470), the next demand level located at 1.3845 (historical bottom that goes back to March 2009) provided a significant bullish rejection on February 26.

As expected, an evident bullish recovery and a bullish engulfing weekly candlestick were expressed around 1.3845 (a prominent weekly demand level) where a significant bullish swing was initiated on March 1.

Recently, the price zone of 1.4475-1.4670 has been a significant supply zone during the past few weeks.

This week, the depicted downtrend line comes around the same price zone.

That is why, a bearish rejection should be expected again around the upper limit of it (1.4650-1.4670 levels).

The nearest destination for the GBP/USD pair would be located at 1.3845.

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A lower high was recently achieved around the level of 1.4530. This applied extensive bearish pressure against the price level of 1.4470.

The GBP/USD pair looked oversold when the previous bearish decline extended below 1.4040 (temporary support).

That is why signs of a bullish recovery and a profitable long entry were suggested around 1.3845. A recent bullish swing was expressed towards the price levels around 1.4470.

The price zone of 1.4470-1.4670 constituted a significant supply zone where the depicted Head and Shoulders reversal pattern was expressed.

On April 7, the market failed to push below the price level of 1.4050. Hence a bullish movement was executed again towards the price levels of 1.4470 and recently 1.4670.

This week, daily persistence below 1.4470 will be needed to enhance further bearish decline towards 1.4380 and 1.4170.

Otherwise, the GBP/USD pair will extend up to the price level of 1.4680 (61.8% Fibonacci level) where the depicted downtrend comes to meet the pair as well. This is where a significant bearish rejection should be expected.

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