USD/CAD intraday technical levels and trading recommendations for May 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 (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 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. 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 0.6800 should be considered as a valid BUY signal.

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 6, 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).

As anticipated, significant bearish rejection was expressed around the price zone of 1.4700-1.4750 (61.8% Fibonacci level) resulting in a strong bearish shooting-star daily candlestick.

This week, daily persistence below 1.4470 will be needed to enhance further bearish decline towards 1.4380 and 1.4250.

Otherwise, a bullish pullback towards 1.4570 shouldn't be excluded.

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

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

Otherwise, the EUR/USD pair may remain trapped between 1.1410 and 1.1520 levels until breakout occurs (most probably to the downside).

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Gold analysis for May 06 , 2016

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Since our previous analysis, gold has been moving sideways at the price of $1,280.00. On the 4H time-frame chart, I found a broken downward channel (bullish flag) in a high volume, which is a sign that selling looks risky. I also found rejection from pivotal point at the price of $1,269.00, which is a strong sign that gold can rise. Watch for buying opportunities on the dips. The first take profit level is set at the price of $1,302.50.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,284.50

R2: 1,288.00

R3: 1,293.90

Support levels:

S1: 1,272.90

S2: 1,269.30

S3: 1,263.50

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 06, 2016

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Recently, EUR/NZD has been moving upwards. The price tested the level of 1.6704 in a high volume. According to the 15M time frame, I found successful testing of supply in a low volume, which is sign that an upward price is possible. Watch for buying opportunities on the dips. The take profit level is set at the price of 1.6740 . According to the 4H time frame, EUR/NZD is in an upward trend.

Fibonacci Pivot Points:

Resistance levels:

R1: 1.6673

R2: 1.6720

R3: 1.6790

Support levels:

S1: 1.6525

S2: 1.6480

S3: 1.6405

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

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Technical analysis of NZD/USD for May 06, 2016

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Overview:

The NZD/USD pair was trading in a narrow sideways channel, the market showed signs of instability. Amid the previous events, the price is still moving between the levels of 0.6872 and 0.6815. Resistance and support are seen at the levels of 0.6872 (also, the double top is set at the point of 0.6880) and 0.6815 respectively. Therefore, it is recommended to be cautious while placing orders in this area. So, we need to wait until the sideways channel is completed. The current price is seen at 0.6842, which represents the key level today. The level of 0.6872 will act as the first resistance today. Hence, if the price fails to pass through the level of 0.6633, the market will indicate a bearish opportunity below the strong resistance level of 0.6872. Sell deals are recommended below the level of 0.6872 with the first target at 0.6815. If the trend breaks the support level of 0.6815, the pair is likely to move downwards continuing the development of the bearish trend to the levels of 0.6758 and 0.6688. On the contrary, in case a reversal takes place, and the NZD/USD pair breaks through the resistance level of 0.6900, then a stop loss should be placed at 0.6943

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Technical analysis of USD/CHF for May 06, 2016

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Overview:

  • The USD/CHF pair faced resistance at the level of 0.9700, while minor resistance is seen at 0.9666. Support is found at the levels of 0.9619 and 0.9574. Also, it should be noted that a daily pivot point has already set at the level of 0.9651. Equally important is that the USD/CHF pair is still moving around the key level at 0.9651, which represents a daily pivot in the H1 time frame at the moment. Yesterday, the USD/CHF pair continued moving upwards from the level of 0.9619. The pair rose from the level of 0.9619 (this level of 0.9800 coincides with the double bottom today) to the top around 0.96695. In consequence, the USD/CHF pair broke resistance, which turned into strong support at the level of 0.9619. The level of 0.9619 is expected to act as major support today. From this point, we expect the USD/CHF pair to continue moving in the bullish trend from the support level of 0.9619 towards the target level of 0.9700. If the pair succeeds in passing through the level of 0.9700, the market will indicate the bullish opportunity above the level of 0.9700 in order to reach the second target at 0.9795. However, if a breakout happens at the support level of 0.9619- 0.9600, then this scenario may be invalidated. Today, you should notice that there are some major economic events for the US dollar such as the NFP release, so your stop loss should always be taken into account.
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Global macro overview for 06/05/2016

Global macro overview for 06/05/2016:

In its recent Monetary Policy Statement, the Reserve Bank of Australia revised sharply downwards its inflation forecasts after slashing interest rates just days earlier due to weak first-quarter inflation data. The data was revised from expectations that the underlying inflation will remain within the target range to 1-2% underlying CPI inflation for 2016, and 1.5-2.5% inflation for the rest of the forecast period. The new forecast is much lower than the previous projection, but the GDP forecasts are still in the range of 2.5 - 3.5% in the longer term. In conclusion, Australian dollar's sharp depreciation over the last few years is expected to continue to put upward pressure on prices.

Let's now take a look at the AUD/USD technical picture in the daily time frame. The market is trading at the technical support at the level of 0.7383 and any daily candle close below it might be a strong bearish signal. Moreover, the brown trend line was broken. This fact supports the view, that bears are currently in control over this market.

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Global macro overview for 06/05/2016

Global macro overview for 06/05/2016:

The main event of the week has finally arrived, the non-farm employment change and unemployment rate data is scheduled for release at 12:30pm GMT today. The market expects the unemployment to stay at the same 5.0% level and the NFP figures to decline slightly from 215K month ago to 203K. Moreover, it is worth to notice that the Wednesday's ADP employment data fell well short of expectations at 156K and this number doesn't really encourage markets to expect any better figures from NFP as well. There is one more important set of data to be released today: the average hourly earnings ( 0.3% m/m; 2.4% y/y expected; 0.3% m/m; 2.3% y/y prior). The indicator is important because inflation is the main concern for the Fed as wages are not growing as much as the policy makers would like to see. In conclusion, very important jobs reports will be published today, please keep an eye on the data.

Let's now take a look at the technical picture of EUR/USD in the 4H time frame ahead of the NFP payrolls release. The market is currently bouncing from the support at the level of 1.1396, but if the data is good enough to buy the USD, this level should be violated and market will head towards the next support at the level of 1.1311. Nevertheless, the most important technical support is at the level of 1.1211 and as long as it is not broken, bulls are in control over this market.

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Technical analysis of USD/JPY for May 06, 2016

USD/JPY continues trading downwards after breaking the major support area at 116.00.

Fibonacci applied to the first corrective wave after the support breakout shows that pair broke below the 161.8% retracement level and did not teste next support at 261.8%.

Consider selling USD/JPY while price is near the 107.00 psychological resistance, targeting the S1 (104.90) support. Stop loss should be well above 108.00.

Support: 104.90

Resistance: 108.60

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Technical analysis of US Oil for May 06, 2016

After breaking the descending channel the US oil continued rising and met the resistance at 46.00 which is the 23.6% Fibonacci applied to the channel breakout point.

This level was rejected twice. This should result in the US oil weakness in the mid term. The rate could retrace back to retest the 200D Moving Average near the S2 (39.00) support.

Consider selling the US oil at the current rate (44.00) targeting the S2 support, which is the channel breakout point. The stop loss should be just above R1 (46.00)

Support: 42.10, 39.00, 36.00

Resistance: 46.00

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Technical analysis of EUR/JPY for May 6, 2016

General overview for 06/05/2016:

The market is slowly, but it is surely dropping lower towards the intraday support at the level of 121.66 as the wave (c) is developing. 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 sell orders from the beginning of the week might now move the SL just above the 122.30 level, but TP remains at the level of 121.66.

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Technical analysis of USD/CAD for May 6, 2016

General overview for 06/05/2016:

The wave b of the possible irregular correction was made, and now the market is ready for drop. The first target level for wave c of 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 target 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 opening sell orders from the current price levels with tight SL (10-15 pips) and TP at the level of 1.2757. This is a trade setup for the last leg down in the corrective structure.

Besides, they should consider opening 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 USDX for May 6, 2016

The Dollar index continued rising yesterday despite worse than expected jobless figures. The dollar reached an important short-term resistance. Taking into account that we expect NFP to be announced later today, I prefer to close dollar longs and be neutral.

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Black line - resistnace

The Dollar index reached the Kumo resistance and nearly the 61.8% Fibonacci retracement of the decline from 95.20. The short-term trend is bullish but a reversal is possible if price breaks below 93.50.

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On the daily chart, price broke above the tenkan- and kijun-sen indicators. We could see a back test before more upside as we are overbought in the short-term time frames. Support is at 93.50-93.30. The upside potential for the Dollar index is at 95.80.The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of USD/JPY for May 06, 2013

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USD/JPY is expected to trade in a higher range as pair is moving upwards. Overnight, the U.S. stock indices were little changed as investors remained on the sidelines awaiting the April jobs report to be released tonight. The Dow Jones Industrial Average added 9 points to 17,660, the S&P 500 was broadly flat at 2,050, and the Nasdaq Composite slid 0.2% to 4,717.

Nymex crude oil settled 1.2% higher at $44.32 a barrel, after rising as high as $46.07 earlier. Gold eased 0.1% to $1,276 a troy ounce, and the benchmark 10-year Treasury yield declined further to 1.756% from 1.786% in the previous session.

On the forex front, the U.S. dollar kept rallying against the euro and the yen as traders squared positions against the greenback ahead of the key U.S. employment data. EUR/USD lost another 0.7% to 1.1404 (a day-low at 1.1384), and USD/JPY gained 0.2% to 107.24. At the same time, USD/CHF surged 1.1% to 0.9675.

The British pound continued to fall against the dollar as the Markit/CIPS UK Services PMI dropped to 52.3 in April (vs 53.5 expected) from 53.7 in March. GBP/USD was down 0.1% to 1.4481.The pair continues on its rally with upward momentum. Currently, it is trading above the 20-period (30-minute chart) moving average. Further support is provided by the ascending 50-period moving average. Also the intraday relative strength index stays above the neutrality level of 50 lacking downward momentum. Therefore the intraday outlook remains bullish and the pair is expected to challenge the immediate resistance at 107.85. The key support was raised to 106.50.

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 107.50 and the second one, at 107.85. In the alternative scenario, short positions are recommended with the first target at 106.10 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 105.50. The pivot point is at 106.50.

Resistance levels: 107.50, 107.85, 108.75

Support levels: 106.10, 105.50, 104.70

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Technical analysis of USD/CHF for May 06, 2016

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USD/CHF is expected to trade in a higher range as target 0.9735 is in sight. The pair remains on the upside and is expected to post further rebound. The 20-period and 50-period moving averages are playing support roles. Besides, the relative strength index is still above 50. Further upside is therefore expected with the next horizontal resistance and overlap set at 0.9735 at first. A break above this level would call for further advance towards 0.9765.

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 0.9735 and the second one, at 0.9765. In the alternative scenario, short positions are recommended with the first target at 0.9570 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 0.9530. The pivot point is at 0.9620.

Resistance levels: 0.9735, 0.9765, 0.9815

Support levels: 0.9570, 0.9530, 0.9490

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Technical analysis of Gold for May 6, 2016

Gold is showing signs of a short-term low in place and, combined with the NFP announcement today, we could see a bullish reversal and a push towards $1,300 again. The price is above the support levels, and this support could help bulls push the price higher.

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Black line - previous low support

Blue line - trend line support

Gold is still above the Ichimoku cloud (Kumo), and the stochastic is turning upwards from oversold levels. We could see another push towards the $1,285 resistance today, and if this level is broken, we should expect new highs to come.

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Red line - trend line connecting previous highs and possible target of a new high

The weekly chart remains bullish as the price is above the tenkan-sen (red line indicator). The stochastic is oversold and diverging. The RSI is not diverging. A new high near $1,325 could be what we need in order to see a divergence in the RSI. I continue to believe that only short-term and aggressive traders should consider long positions now targeting $1,285 first and then $1,325. Otherwise I prefer to be neutral and wait for a deep pullback towards $1,150.

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Technical analysis of NZD/USD for May 06, 2016

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NZD/USD is expected to trade in a lower range as the pair is under pressure. The pair remains under pressure below its horizontal resistance at 0.6920. Both the 20-period and 50-period moving averages are playing resistance roles as well. At the same time, the relative strength index stays below its neutrality area at 50 and lacks upward momentum. Below 0.6920, the risk of a slide below 0.6830 remains high. Our next down target is set at 0.6800.

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 0.6830. A break of this target will move the pair further downwards to 0.6800. The pivot point stands at 0.6920. 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 0.6945 and the second target at 0.6980.

Resistance levels: 0.6945, 0.6980, 0.7020

Support levels: 0.6830, 0.6830, 0.6795

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Technical analysis of GBP/JPY for May 06, 2016

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GBP/JPY is under pressure. The pair is turning down, while the 20-period moving average has broken the 50-period one. Meanwhile, the relative strength index stays below 50 and lacks downward momentum. The first target to the downside is set at the horizontal support and overlap 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 154.40. 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

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Technical analysis of Silver for May 06, 2016

Technical outlook and chart setups:

Silver turned lower from $17.60 levels yesterday after facing the back side of the trendline, which is resistance now. The metal had earlier bounced off fibonacci 0.618 support around $17.20 levels and should be considered bullish till prices stay above the same level. On the other hand, a drop below $17.20 and subsequently $16.80 levels would indicate that a meaningful top is in place at $18.00 levels and the medium-term trend would be lower from here. It is recommended to remain long with risk at $16.80 levels for now. Immediate support is seen at $16.80 levels, while resistance is at $18.00 levels respectively. Please note that a little sideways movement here would be in favor of bulls.

Trading recommendations:

Remain long for now, stop at $16.80, target is $18.40

Good luck!

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Technical analysis of Gold for May 06, 2016

Technical outlook and chart setups:

Gold has formed yet another low at $1,270.00 levels yesterday before pulling back higher again. The yellow metal is seen to be trading at $1,278.00 levels at this moment, looking to rally further towards $1,307.00 levels before reversing. On the flip side, a continued drop from current levels and a subsequent break below the trendline support would confirm that a meaningful top is in place and that the metal is ready to produce a meaningful retracement. It is recommended to remain long for now, with risk at $1,250.00 levels. Immediate support is seen at $1,270.00 levels, while resistance is at $1,303.00 levels respectively.

Trading recommendations:

Remain long for now, stop at $1,268.00, target is $1,309.00

Good luck!

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Technical analysis of EUR/JPY for May 06, 2016

Technical outlook and chart setups:

The EUR/JPY pair has dropped a bit lower from yesterday's range and is now trading at 122.20 levels. Please note that the pair remains bullish in the short term and the probability is towards 124.50 levels till prices stay above 121.50 levels respectively. No doubt that the major trend remains bearish, but the pair is expected to produce a countertrend rally towards 124.50 levels and then reverse. On the flip side, a break above 126.30/40 levels would change the medium-term outlook for the pair. It is recommended to remain long for now, with risk at 121.50 levels. Immediate support is seen at 121.50 levels, while resistance is seen through 124.50 levels respectively.

Trading recommendations:

Remain long for now, stop at 121.50, target is 124.50.

Good luck!

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

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Wave summary:

EUR/NZD is still trying every dirty trick in the playbook to wipe us out. With a quick and deeper than expected correction to 1.6479, the next strong rally should now be expected for a break above minor resistance at 1.6745 for a continuation higher to 1.7220 and 1.8405 in the longer term.

In the short term, we will ideally see strong support at 1.6575 protect the downside for the break above 1.6745 confirming a continuation higher.

Trading recommendation:

We are long in EUR from 1.6315 and will move our stop higher to 1.6475. If you are not long in EUR yet, then buy near 1.6575 or upon a break above 1.6745 and use the same stop at 1.6475.

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

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Wave summary:

This cross is doing nothing at the moment.

Is a bottom building? Or is it just at consolidation before more downside pressure is seen? The failure to rally will normally have us call for more downside towards 117.99, but then the long term erratic decline from 141.06 could have bottomed. However, to indicate this is the case, a break above minor resistance at 123.53 will be needed. So for now, we will just have to be patient and let the Market show us its mind.

Trading recommendation:

Our stop at 122.20 was hit for a small loss. We will only buy upon a break above 123.53. We have no interest in being short as the risk of a bottom is too big.

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Technical analysis of GBP/CHF for May 06, 2016

Technical outlook and chart setups:

The GBP/CHF pair is seen to be trading at 1.4040 levels at this moment, looking to continue rallying towards 1.4709 levels going forward. Also note that the pair has formed a morning star candlestick pattern on the daily chart as seen here, indicating a potential reversal ahead. The current rally that has begun from 1.3400 levels is only a countertrend rally, which is expected to terminate at 1.4700/50 levels going forward. It is hence recommended to remain long for now, with risk at 1.3800 levels. Immediate support is seen at 1.3800 levels, while resistance is at 1.4700 levels respectively. Bulls are expected to remain in control till the prices stay above 1.3800 levels.

Trading recommendations:

Remain long for now, stop at 1.3800 levels, target is open.

Good luck!

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Daily analysis of major pairs for May 6, 2016

EUR/USD: After testing the resistance line at 1.1600, the EUR/USD has gone down by almost 190 pips. This has become a threat to the recent bullish bias in the market, and a movement below the support line at 1.1300 would result in a clean bearish signal.

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USD/CHF: After testing the support level at 0.9450, the USD/CHF has gone up by almost 230 pips. This has become a threat to the recent bearish bias in the market, and a movement above the support line at 1.1300 would result in a clean bullish signal. By then, a Bullish Confirmation Pattern would have been formed on the chart.

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GBP/USD: After testing the distribution territory at 1.4750, the GBP/USD dropped by 270 pips, now below the distribution territory at 1.4500. This kind of perpetual reversal has already resulted in a bearish outlook on the market. The EMA 11 has crossed the EMA 56 to the downside as the RSI period 14 goes below the level 50.

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USD/JPY: The USD/JPY traded negligibly higher on Thursday 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; unless otherwise indicated by the price action.

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EUR/JPY: This cross pair has given way to gravity again, though not significantly, it was enough to show that the bears are still willing to push the price lower. This would be in conjunction with the existing bearish outlook on the market. The indicators on the 4-hour chart favor further southward journey. The price might reach the demand zones at 122.00 and 121.50 today or next week.

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Daily analysis of USDX for May 06, 2016

On the H1 chart, USDX continues to recover above the 200 SMA, and it could pull back from the resistance zone of 93.80 in order to resume the overall bearish bias. However, that scenario could change when a breakout happens above the 94.06 level in order to extend the rally towards the highs from the April 27th session.

USDXH1.png

H1 chart's resistance levels: 93.80 / 94.06

H1 chart's support levels: 93.52 / 93.26

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 93.52, take profit is at 93.26, and stop loss is at 93.79.

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Daily analysis of GBP/USD for May 06, 2016

The current structure of the Cable is calling for a bearish continuation below the 200 SMA, and the H1 chart is showing us that the level of 1.4430 could provide a strong support on a short-term basis. If GBP/USD succeeds in breaking that zone to the downside, then we can expect a decline toward the 1.4316 level. The MACD indicator is in positive territory.

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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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Daily analysis of Gold for May 05, 2016

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Overview

Gold price showed bearish bias to approach after testing the bullish support line that is located at 1,268.90, which met the EMA50 to strengthen it. Stochastic is moving bullishly in the four-hour time frame. Therefore, we believe that there are chances to resume the bullish trend in the upcoming sessions. The price needs to breach 1,282.92 – 1,284.75 levels to confirm opening a way towards the targeted levels of 1,344.85. Breaking of the 1,268.90 level will push the price to suffer more losses and test the most important support at 1,227.40 before any new attempt to rise.

The expected trading range for today is between the 1,266.00 support and the 1,310.00 resistance.

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Daily analysis of Silver for May 05, 2016

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Overview

Silver price shows slight bearish bias in an attempt to move away from the EMA50. The price is waiting for breaching 17.55 then the 18.00 level to reinforce the expectations of more upside moves in the upcoming period. Therefore, we will keep the positive scenario valid on the intraday and short- term basis supported by the EMA50, and the next target located at 18.60. To achieve the target, the price should hold above the 16.99 level.

The expected trading range for today is between the 17.00 support and the 18.00 resistance.

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