Analysis of gold for May 5, 2016

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Since our previous analysis, gold has been moving upwards. The price tested the $1,285.78 level in a high volume. On the 4H time-frame chart, I found broken downward channel (bullish flag) in a high volume, which is a sign that selling looks risky. On the 5M time-frame chart, I found successful testing of supply in a low volume. Watch for buying opportunities on the dips. Take profit level is set at $1,301.50.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,289.00

R2: 1,293.00

R3: 1,299.50

Support levels:

S1: 1,276.00

S2: 1,272.00

S3: 1,265.50

Trading recommendations for today: be careful when selling gold at this stage and watch for potential buying opportunities on the dips.

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EUR/NZD analysis for May 05, 2016

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Recently, EUR/NZD has been moving downwards. The price tested the level of 1.6524 in a high volume. According to the 5M time frame, I found strong selling pressure and weak demand on the market. Watch for selling opportunities on the rallies. The take profit level is set at the price of 1.6420 (Fibonacci retracement 61.8%). According to the 4H time frame, I found supply in a very high volume. Price broke 21 SMA according to the 4H time frame, which is also a sign that EUR/NZD changed trend dynamic from bullish to bearish.

Fibonacci Pivot Points:

Resistance levels:

R1: 1.6735

R2: 1.6775

R3: 1.6840

Support levels:

S1: 1.6600

S2: 1.6560

S3: 1.6495

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

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USD/CAD intraday technical levels and trading recommendations for May 5, 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 (upper limit of the recent consolidation range) enhanced the bullish side of the market. Hence a bullish visit to the resistance at 1.4120 (Fibonacci Expansion 100%) occurred.

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%) stood as a significant resistance level where a significant bearish rejection was applied.

Although the area of 1.3050-1.3250 was expected to offer bullish support for the USD/CAD pair, the same price zone was broken below as depicted on the daily chart.

As expected, the 1.3300 level stood as a significant resistance 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.

Since then, the USD/CAD pair has been trapped within the consolidation range between 1.3300 and 1.2970 until a bearish breakout took place on April 11.

Shortly after the quick bearish decline took place, signs of bullish recovery were expressed around 1.2460.

Conservative traders are advised to consider any pullback towards 1.2970 (61.8% Fibonacci level) as a valid signal to sell the USD/CAD pair. S/L should be placed above 1.3050.

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NZD/USD intraday technical levels and trading recommendations for May 5, 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.

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.

For risky traders, any bearish pullback towards 0.6850 should be considered as a valid signal to BUY the NZD/USD pair.

However, a daily closure below the 0.6850 level enhances a quick bearish movement towards 0.6750 where a better BUY entry with a higher risk/reward ratio can be offered.

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Intraday technical levels and trading recommendations for GBP/USD for May 5, 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 (prominent weekly demand level) where a significant bullish swing was initiated on March 1.

The price zone of 1.4475-1.4670 has been standing as a significant supply zone during the past few weeks.

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

That is why, significant bearish rejection was expected around the upper limit of it (1.4670 level).

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

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 1.4750 (slightly above the 61.8% Fibonacci level).

That's why, a strong bearish shooting-star daily candlestick was 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 1.4250.

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Intraday technical levels and trading recommendations for EUR/USD for May 5, 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, next monthly candlesticks (September, October, and November) reflected a strong bearish rejection in the price area around 1.1400.

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

Hence, another bearish rejection should be expected around the current price levels. 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.

This week, the price level of 1.1600 corresponded to the backside of the broken uptrend line depicted on the chart.

That's why, the depicted shooting-star daily candlestick was expressed indicating significant bearish rejection.

Hence, daily persistence below the price level of 1.1400 is needed to ensure further bearish momentum 1.1330, 1.1210, and 1.1150.

Otherwise, the EUR/USD pair may remain trapped between 1.1410 and 1.1520 until breakout occurs.

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Technical analysis of NZD/USD for May 05, 2016

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Overview:

  • The NZD/USD pair movement was debatable as it took place in a narrow sideways channel this week. The market showed signs of instability. Amid the previous events, the price is still trapping between the levels of 0.6950 and 0.6814. The daily resistance and support are seen at the levels of 0.6950 and 0.6814 respectively. In consequence, it is recommended to be cautious while placing orders in this area.Thus, we should wait until the sideways channel is completed. So, the strong support has been already faced at the level of 0.6814 and the pair is likely to try to approach it in order to test it again and form a double bottom. If the pair succeeds in passing through the level of 0.6814, the market will indicate a bearish opportunity below the level of 0.6814. A breakout of that target will move the pair further downwards to 0.6756. Sell orders are recommended below the area of 0.6950 or 0.6814 with the first target at the level of 0.6756, and continue towards 0.6687. On the other hand, if the NZD/USD pair fails to break out through the resistance level of 0.6950, then this scenario may be invalidated. Overall, we still prefer the bearish scenario.
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Technical analysis of USD/CHF for May 05, 2016

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Overview:

  • The USD/CHF pair broke resistance, which turned into strong support at the level of 0.9577 yesterday. The level of 0.9577 coincides with a golden ratio (38.2% of Fibonacci), which is expected to act as major support today. The Relative Strength Index (RSI) is considered overbought because it is above 30. This would suggest a bullish market because the RSI indicator is still in a positive area and does not show any trend-reversal signs. So, the market is likely to show signs of a bullish trend around the spot of 0.9577. In other words, buy orders are recommended above the spot of 0.9577 or 0.9600 with the first target at the level of 0.9662, and continue towards 0.9719 (the weekly resistance 1). On the other hand, if the USD/CHF pair fails to break through the resistance level of 0.9719 today, the market will decline further to 0.9577 in order to test it again. The pair is expected to drop lower towards at least 0.9577 with a view to test the weekly pivot point. Also, it should be noted that the weekly pivot point will act as minor support today. Accordingly, the pair is still in the uptrend from the area of 0.9577 and 0.9719. The USD/CHF pair is trading in a bullish trend from the last support line of 0.9577 towards the targets of 0.9662 and 0.9719.
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Global macro overview for 05/05/2016

Global macro overview for 05/05/2016:

The PMI services data from the United Kingdom was released and it was worse than expected. The investors anticipated a 0.1 point decline from the last month's level of 53.7 points, but the issued number was 52.3 points. The index is important because the U.K. services industry accounts for more than three quarters of the U.K. economy. The recent set of data on the manufacturing and construction PMI was disappointing as well. It seems that the U.K. economy is slowing down ahead of the EU referendum in June 26th this year. In conclusion,the GDP figures for the second quarter might be downwardly revised and the U.K. economy might face a very tough period.

Let's now take a look at the GBP/USD technical picture in the 4H time frame. The market was capped at the 113%Fibo expansion of the last swing up at the level of 1.4770. Since then the clear impulsive sell-off towards the next important support made bulls to question their control over this market. Nevertheless, as long as the price stays above the golden trend line support and the level of 1.4000 (higher low) bulls are still in control over this market.

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Global macro overview for 05/05/2016

Global macro overview for 05/05/2016:

The crude oil Inventories data was released yesterday and it was better than expected. The market participants anticipated a slight downward revision of 600K barrels only after the 1,999K barrels build up in the last week, but the inventories rose to 2,784K barrels, its highest surplus in three weeks. Moreover, an oil summit in Qatar ended without an agreement on capping production, leaving room for prices to drop. The next OPEC meeting is scheduled for June 2 and the OPEC members will likely revisit the problem of freezing production again in order to raise prices. In conclusion, the worldwide glut of oil continues to weigh on oil prices and rising stockpiles might be the next issue for global oil production.

Let's now take a look at the crude oil technical picture in 4H time frame. The bulls managed to make another higher high (46.78) and another higher low (43.19), so the bulls still have control over this market. Moreover, the price trades above 21, 50 and 100 moving average without a sign of a bearish divergence. In conclusion, higher prices or at least a double top formation are expected in this market in the short-term period.

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Technical analysis of USD/CAD for May 5, 2016

General overview for 05/05/2016:

The impulsive wave progression to the upside might just have been finished and now a corrective cycle is due. The first target level for wave (ii) is technical support at the level of 1.2758, but the correction might extend even lower. When the corrective cycle is completed, the impulsive rebound upward should take the price above the recent intraday resistance at the level of 1.2883 and ultimately targeting the levels above 1.3000 before any meaningfully correction will occur.

Support/Resistance:

1.2434 - WS1

1.2574 - Weekly Pivot

1.2651 - WR1

1.2759 - Wave XX High | Intraday Support |

1.2792 - WR2

1.2873 - WR3

1.2883 - Intraday Resistance

Trading recommendations:

Day traders should consider openштп buy orders from the level of 1.2758 with tight SL (10-15 pips) and TP open for now. We expect a rebound upwards once the corrective cycle is completed.

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Technical analysis of EUR/JPY for May 5, 2016

General overview for 05/05/2016:

The market is still trading around the weekly pivot at the level of 122.99, but according to the Elliott wave rules there should be one more wave to the downside - wave (c) blue. The intraday resistance at the level of 123.35 is still the key level to the upside. Currently, bears might want to break out below the dashed intraday trend line and test the recent low at the level of 121.66. Please notice that the market is still trading inside the pink bearish zone.

Support/Resistance:

126.45 - Swing High

124.27 - WR1

123.35 - Intraday Resistance

122.98 - Weekly Pivot

121.67 - Intraday Support

Trading recommendations:

The day traders should consider opening sell orders from the current market levels with SL above the level of 123.51 and TP at the level of 121.66.

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Technical analysis of USDX for May 5, 2016

The Dollar index has started a bullish reversal. This reversal will be big as long as we hold above the 91.90 lows. This reversal has the potential to bring the index even towards 96-98 but it is still too early to tell. For now we have an impressive daily bullish hammer pattern and if this week ends like this we could have a bullish hammer in the weekly candle.

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Black line - resistance trend line

The price is below the Kumo (cloud) on the 4 hour chart. The price has broken above the kijun- and tenkan-sen. Support is at 92.80. Resistance is at 93.40. The stochastic is overbought and this could justify a pullback.

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On the daily chart, the stochastic is turning upwards from oversold levels confirming that this bounce has more room to go. The candle from two days ago is a bullish hammer reversal pattern. Yesterday's candle was the follow-through that supported this bullish reversal scenario. Resistance is critical by the kijun- and tenkan-sen at 93.55. Bulls need a daily close above those levels.The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of Gold for May 5, 2016

Gold pulled back towards our support area of $1,270 yesterday and is now trading $10 higher. The trend remains bearish in the short term, and this is the opportunity to go long for aggressive traders as I mentioned a few days back when the price was at $1,293. Personally I prefer to be neutral in Gold.

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Red line - resistance

Black line -support

Yellow area - oversold stochastic

Gold remains above the Kumo on the 4-hour chart but has broken below the kijun- and the tenkan-sen indicators providing a bearish signal. However, the price remains above the cloud yet and the stochastic oscillator is turning upwards from oversold levels. Short-term support at $1,270 and resistance at $1,285.

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Red line - trend line connecting previous highs

The weekly chart remains bullish but with the stochastic oversold and together with the RSI diverging relative to the new highs in the price, I believe the risk reward for being long at current levels is not worth it. Shorter-term and more aggressive traders with tighter stops might find a tradable opportunity targeting $1,325.

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Technical analysis of USD/JPY for May 05, 2013

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USD/JPY is expected to trade in a higher range as the bias remains bullish. Overnight US stock indices continued to drift lower, weighed down by reignited concerns over global growth and weaker-than-expected ADP private payrolls data. The Dow Jones Industrial Average declined 0.6% to 17651, the S&P 500 dropped 0.6% to 2051, and the Nasdaq Composite was down 0.8% to 4725. Biotech was among the worst-performing sectors.

Nymex crude oil added 0.3% to $43.78 a barrel, gold fell another 0.5% to $1,279 an ounce, and the benchmark 10-year Treasury yield eased to 1.786% from 1.800% in the previous session.

The ADP jobs report showed that private firms in the US hired 156,000 workers in April (vs +195,000 expected, +194,000 in March), the lowest level in 3 years.

On the forex front, the US dollar extended its rally against other major currencies, with the Wall Street Journal Dollar Index rising 0.4% to 85.70. USD/JPY re-took the 107.00 level by climbing 0.4%, EUR/USD edged down 0.1% to 1.1485, and GBP/USD was down another 0.3% to 1.4491.

The Canadian dollar posted another steep dive against the greenback as Canada's merchandise trade deficit was reported to have widened to C$3.4B in March from C$2.5B in February. USD/CAD surged 1.2% to 1.2867.The pair has recovered from yesterday's consolidation, which brought it down to 106.22 (still above the key resistance at 106.10). Currently the pair is trading above the 20-period moving average, while being supported by the 50-period one. And the intraday relative strength index stays above the neutrality level of 50 lacking downward momentum. The intraday outlook continues to be bullish, and the pair should return to the first upside target at 107.45 (a key resistance seen on April 29).

Trading Recommendation:

The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. Therefore, long positions are recommended with the first target at 107.45 and the second one at 107.85. In the alternative scenario, short positions are recommended with the first target at 105.50 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 104.70. The pivot point is at 106.10.

Resistance levels: 107.45, 107.85, 108.75

Support levels: 105.50, 104.70, 104

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Technical analysis of USD/CHF for May 05, 2016

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USD/CHF is expected to trade with a bearish bias. The pair stands firmly above its key horizontal support at 0.9530 and is likely to post further advance to 0.9605 at first. The relative strength index is mixed to bullish, and also lacks downward momentum. The rising 50-period moving average plays well a support role. Therefore, as long as 0.9530 is not broken, look for further upsides to 0.9605 and 0.9655 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 0.9605 and the second one at 0.9655. In the alternative scenario, short positions are recommended with the first target at 0.9490 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 0.9435. The pivot point is at 0.9530.

Resistance levels: 0.9605, 0.9655, 0.9700

Support levels: 0.9490, 0.9435, 0.94

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Technical analysis of NZD/USD for May 05, 2016

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NZD/USD is under pressure. The pair remains under pressure below its key resistance at 0.6945. Even though a technical rebound cannot be ruled out at the current stage, its extent should be very limited. Besides, both the 20-period and 50-period moving averages are still heading downward, which should confirm a bearish outlook. The relative strength index is still below its neutrality area at 50. Hence, as long as 0.6945 holds on the downside, look for a new pullback to 0.6860 and 0.6830 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 0.6860. A break of this target will move the pair further downwards to 0.6830. The pivot point stands at 0.6945. 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 0.6980 and the second target at 0.7020.

Resistance levels: 0.6980, 0.7020, 0.7055

Support levels: 0.6860, 0.6830, 0.6795

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Technical analysis of GBP/JPY for May 05, 2016

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GBP/JPY is expected to trade in a lower range. The pair remains weak and is likely to challenge its nearest support at 154.40 in sight. The risk of a slide below this threshold remains high, as the falling 50-period moving average maintains strong selling pressure and should push the prices lower. In this case, as long as 156 is not surpassed, a decline to 154.40 and 153.15 is likely 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 154.40. A break of this target will move the pair further downwards to 153.15. The pivot point stands at 156.00. 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 156.70 and the second target at 157.50.

Resistance levels: 156.70, 157.50, 158.40

Support levels: 154.40, 153.15, 152.20

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

Technical analysis of Silver for May 05, 2016

Technical outlook and chart setups:

Silver is seen to be trading at $17.45 levels at this moment after having bounced off the fibonacci 0.618 retracement levels as depicted here. The metal might be looking to continue higher towards $18.40/50 levels, which are a major resistance on the weekly chart (not seen here). The metal has dropped below the immediate line of support, but a push above $17.60 levels would bring it back above the same level. As an alternate though, a break below $16.80 levels would indicate that a meaningful top is in place at $18.00 levels. It is recommended to remain long now with risk at $16.80 levels. Immediate resistance is seen at $18.00 levels, while support is at $16.80 levels respectively.

Trading recommendations:

Remain long now, stop at $16.80, target is $18.40/50.

Good luck!

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

Technical analysis of Gold for May 05, 2016

Technical outlook and chart setups:

Gold has formed a bottom around $1,271.00/72.00 levels yesterday before turning higher again. Please note that the metal has bounced off the fibonacci 0.382 support as expected and discussed earlier. The recent drop can be labelled as corrective wave 4, according to the wave structure. A high probability remains for a rally (wave 5), through $1,307.00 levels at least. The yellow metal is seen to be trading at $1.282.00/83.00 levels at present and set to remain in control of bulls till the prices stay above $1,271.00 levels going forward. It is recommended to remain long now, with risk below $1,271.00 levels. Immediate support is at $1,271.00 levels, while resistance is seen at $1,303.00 levels respectively.

Trading recommendations:

Remain long for now, stop at $1,250.00, target is $1,307.00.

Good luck!

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

Technical analysis of EUR/JPY for May 05, 2016

Technical outlook and chart setups:

The EUR/JPY pair seems to be pushing above 123.00 levels at this moment, looking to rise through 124.50 levels at least before reversing lower. The pair is expected to remain in control of bears till the prices stay below 126.40 levels for now. At present, the pair has faced resistance at fibonacci 0.382 levels (123.35) and needs a push higher to confirm further acceleration towards 124.50 levels. Please note that the sloping line of resistance has also been tested twice at 128.25 and 126.40 levels, and it still holds well. It is hence recommended to sell on rallies through 124.50 levels going forward, with risk above 126.40 levels. Immediate resistance is seen at 124.50 levels, while support is at 121.50 levels respectively.

Trading recommendations:

Remain flat now and look to short at 124.50 levels again, stop at 126.50, target is open.

Good luck!

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

Elliott wave analysis of EUR/NZD for May 5 - 2016

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Wave summary:

We now have a clear break above the red resistance line from 1.7223 confirming that wave [iii] of 3 is developing, so it should only be a question of time before the real upside acceleration is seen. This is the part of the impulsive wave where the prices rally so strongly that it becomes almost vertical.

In the short term, a break above resistance at 1.6874 should kick the prices quickly higher to 1.7223 and above for a continuation higher to 1.8420

Trading recommendation:

We are long in EUR from 1.6365 with stop placed at 1.6415. If you are not long in EUR yet, then buy near 1.6570 or a break above 1.6745 and use the same stop at 1.6415.

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

Technical analysis of GBP/CHF for May 05, 2016

Technical outlook and chart setups:

The GBP/CHF is seen to be trading at 1.3900/10 levels, unchanged from yesterday. But please note that the pair has re-tested lows at 1.3815/20 levels and bounced back. This might be an indication of an intermediary bottom formation and a potential rally towards 1.4700/50 levels as discussed yesterday. Please also note that the pair may be setting up to produce a bullish morning star candlestick pattern today. It is recommended to remain long for now, with risk around 1.3800 levels. Bulls seem to be determined to stage a rally (countertrend) towards 1.4700 levels at least before giving in to bears again. Immediate support is seen at 1.3820 levels, while resistance is at 1.4300 levels respectively.

Trading recommendations:

Remain long for now, stop at 1.3800, target is 1.4700.

Good luck!

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

Elliott wave analysis of EUR/JPY for May 5 - 2016

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Wave summary:

The big question remains whether or not an important bottom is in place at the 121.66 low. The rally of the 121.66 level is in no way impressive, which raises the odds of one more decline below 121.66 for a move closer to 117.99.

That said, it will not take much to secure the 121.66 low and indicate that the bottom is in place. It will only take a break above minor resistance at 123.53 to indicate that this is the case and a new impulsive rally to above 126.47 is developing.

Trading recommendation:

We are long in EUR from 122.95 with stop placed at 122.20. If you are not long in EUR yet, then buy a break above 123.53 and use the same stop at 122.20 expecting to move it higher soon.

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Daily analysis of major pairs for May 5, 2016

EUR/USD: This pair went down by 150 pips at the start of this week and later got corrected lower after testing the resistance line at 1.1600. The correction is significant, since the Williams' % Range period 20 is now sloping downwards, but the EMA 11 is still above the EMA 56. Would this be a sustained reversal or temporary dip? Today would reveal the answer.

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USD/CHF: This currency trading instrument hit the support level at 0.9450 and then bounced upwards. However, the Bearish Confirmation Pattern is valid in the market, providing that the price does not go above the resistance levels at 0.9650 and 0.9700. It is expected that the price would fall from this area today or tomorrow.

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GBP/USD: After testing the distribution territory at 1.4750, the GBP/USD dropped by 250 pips, now below the distribution territory at 1.4500. There cannot be any jeopardy to the bearish outlook unless the price drops further by another 150 pips this week – an act that could lead to a bearish signal.

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USD/JPY: The USD/JPY traded higher on Wednesday, in the context of a downtrend. Unless the price goes above the supply level at 109.00 (which would require a serious rally), there cannot be an end to the current bearish bias. Right now, the rally that was seen yesterday would be an opportunity to sell short at a better price. Some fundamental figures are expected today and they could have some impact on the markets.

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EUR/JPY: The EUR/JPY cross is still making some bullish attempts in the context of a downtrend, and as a result of this, there are mixed signals in the market. On the 4-hour chart, the RSI period 14 is above the level 50; whereas the EMA 11 is still below the EMA 56. The movement of the market today would reveal whether the bullish attempt would be a short-selling opportunity or not.

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Daily analysis of USDX for May 05, 2016

USDX continues to move sideways, but it's still trading into a corrective tone above the support zone of 92.91. The H1 chart is showing us that the price is close to the 200 SMA, where it could pull back to resume the decline. However, if the Index succeeds in breaking the support level of 92.91, then it could extend the fall toward the 92.56 price zone.

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H1 chart's resistance levels: 93.26 / 93.52

H1 chart's support levels: 92.91 / 92.56

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 92.91, take profit is at 92.56, and stop loss is at 93.26.

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Daily analysis of GBP/USD for May 05, 2016

The H1 chart structure is calling for a short-term bearish consolidation below the 200 SMA on the H1 chart, after the pair found resistance around the 1.4549 level. Rebounds can happen in coming hours as the Cable needs to perform bigger corrective moves from the decline held since the May 3rd session. The MACD indicator is in positive territory, supporting a possible bullish correction.

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H1 chart's resistance levels: 1.4549 / 1.4633

H1 chart's support levels: 1.4430 / 1.4316

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 1.4549, take profit is at 1.4633 and stop loss is at 1.4465.

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