USD/CAD intraday technical levels and trading recommendations for May 11, 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.

Shortly after, 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 were advised to consider the recent pullback towards 1.2970 (61.8% Fibonacci level) as a valid signal to sell the USD/CAD pair.

This position is already running in profits. Target levels should be located at 1.2700 and 1.2550 while S/L should be placed above 1.3050.

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NZD/USD intraday technical levels and trading recommendations for May 11, 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, obvious bullish breakouts above 0.6750 and 0.6860 were executed. Hence, the price level of 0.6750 constitutes a significant support level to be watched for a valid buy entry.

The previous daily closure below the 0.6850 level (Friday) enhanced a quick bearish movement towards 0.6750 where a valid BUY entry was offered yesterday. S/L can be set as a daily closure below 0.6750. T/P levels to be located at 0.6850 and 0.6920.

This week, bullish persistence above 0.6850 is mandatory to maintain enough bullish momentum in the market. Otherwise, sideways consolidations should be expected between the price levels of 0.6750 and 0.6850.

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Intraday technical levels and trading recommendations for GBP/USD for May 11, 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) which allowed further bearish decline to occur.

The prominent 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.

On the other hand, the price zone of 1.4475-1.4670 has been standing as a significant supply zone during the past few weeks.

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

Hence, significant bearish rejection and a bearish weekly candlestick were executed 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 1.3845.

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On February 2016, a lower high was 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, a significant bullish recovery and a profitable long entry were suggested around 1.3845.

On April 7, the market failed to push below the price level of 1.4050. Moreover, 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 1.4670 should not be excluded.

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Intraday technical levels and trading recommendations for EUR/USD for May 11, 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 around the area of 1.1400-1.1500.

In February, the depicted price levels around 1.1400-1.1500 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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In 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 in October 2015, the supply zone of 1.1410-1.1550 should constitute a significant resistance zone for the EUR/USD pair.

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

That's why, the depicted shooting-star daily candlestick appeared, indicating significant bearish rejection around 1.1600.

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

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

On the other hand. a bearish pullback towards 1.1000 (depicted uptrend line and previous consolidation range) should be considered as a valid BUY entry.

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EUR/NZD analysis for May 11, 2016

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Recently, EUR/NZD has been moving downwards. The price tested the level of 1.6656 in a high volume. According to the 1H time frame, I found a volume spike (selling climax in the background). I was a bearish bar in an ultra high volume but it closed well of the low, which indicates strength. I also found few signs of strength later on, which is a sign that selling looks risky. Watch for buying opportunities on the dips. Take profit level is set at the price of 1.6920.

Fibonacci Pivot Points:

Resistance levels:

R1: 1.6900

R2: 1.6930

R3: 1.6990

Support levels:

S1: 1.6785

S2: 1.6750

S3: 1.6690

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

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Gold analysis for May 11, 2016

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Since our previous analysis, gold has been moving upwards. As I expected, the price tested the level of $1,274.32 in a high volume. According to the 30M time frame, I found that strength came in near the level of $1,270.00. According to the 15M time frame, I found the inverted head and shoulders formation (bottoming). The price has broke the neckline at the level of $1,271.00 and the price is ready to go higher. Be careful when selling and watch for buying opportunities on the dips. The first take profit level is set at the price of $1,280.80. The second take profit level is set at the price of $1,287.00.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,268.00

R2: 1,270.30

R3: 1,274.00

Support levels:

S1: 1,260.65

S2: 1,258.40

S3: 1,254.60

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

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Technical analysis of NZD/USD for May 11, 2016

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Overview:

  • Yesterday, the NZD/USD pair dropped sharply from the level of 0.6816 towards 0.6715. But the pair has rebounded from the bottom of 0.6715 to close at 0.6820. Now, the price is set at 0.6790. On the H1 chart, the resistance is seen at the level of 0.6816 and 0.6870. It should be noted that volatility is very high for that the NZD/USD pair is still moving between 0.6870 and 0.6715 in coming hours. Moreover, the price spot of 0.6870 remains a significant resistance zone. Therefore, there is a possibility that the NZD/USD pair will move downside and the structure of a fall does not look corrective. In order to indicate the bearish opportunity below 0.6870, sell below 0.6870 with the first target at 0.6715 in order to test yesterday's bottom. Additionally, if the NZD/USD pair is able to break out the bottom at 0.6715, the market will decline further to 0.6687 in order to test the weekly support 2. Overall, we still prefer the bearish scenario which suggests that the pair will stay below the area of 0.6870 today.
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Technical analysis of USD/CHF for May 11, 2016

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Overview:

  • As expected the USD/CHF pair continues to move upwards from the level of 0.9694. Yesterday, the pair rose from the level of 0.9694 to the top around 0.9766. Today, the first resistance level is seen at 0.9821 followed by 0.9917, while daily support 1 is seen at 0.9694. According to the previous events, the USD/CHF pair is still moving between the levels of 0.9694 and 0.9821 as the price is still above the moving average (100). Moreover, this would suggest a bullish market because the RSI indicator is still in a positive area and does not show any trend-reversal signs. Consequently, the first support is set at the levels of 0.9694 - 0.9725. So, the market is likely to show signs of a bullish trend around the spot of 0.9694 - 0.9725. In other words, buy orders are recommended above the levels of 0.9694 - 0.9725 with the first target at the level of 0.9821. If the pair succeeds to pass through the level of 0.9821, the market will continue towards the next objective around the zone of 0.9917. However, if a breakout happens at the support level of 0.9694, then this scenario may be invalidated.
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Technical analysis of CAD/CHF for May 11, 2016

CAD/CHF found the bottom at 0.7420, after which it moved higher producing higher high and higher low. At the same time, the pair broke above the downtrend trendline with the 4H close above it, suggesting that rate might be ready to move higher.

There are two very strong resistance areas formed by the price that corresponds to the Fibonacci levels applied to the channel breakout point.

Consider buying CAD/CHF today while rate is near S1 (0.7520), targeting either R3 (0.7615) or R4 (0.7675). Stop loss should be just below S2 (0.7480)

Support: 0.7520, 0.7480

Resistance: 0.7550, 0.7580, 0.7615, 0.7675

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Technical analysis of AUD/JPY for May 11, 2016

AUD/JPY formed a massive support area around 79.80, while on the top there is strong resistance around 86.00 and AUD/JPY is clearly ranging between these levels.

The RSI oscillator formed a bullish divergence on the 4H time frame and the pair is currently trading right in the support area. This could be the signal the pair is about to go up to test strong resistance formed near 81.70.

Consider buying AUD/JPY while the pair is near S1 (79.80) targeting R1 (81.70) resistance area. Stop loss should be well below the S2 (79.20).

Support: 79.80, 79.20

Resistance: 81.70

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Technical analysis of EUR/JPY for May 11, 2016

Technical outlook and chart setups:

The EUR/JPY pair has almost touched expected resistance at 124.50 levels yesterday before reversing lower. The pair is seen to be trading at 123.75 levels for now, looking to resume lower from here. Please note that it is still possible that the pair could re-test 124.50 levels and another high is printed before finally reversing lower. It is recommended to remain flat for now and wait for another high or re-test of 124.50 levels to go short. Immediate resistance is seen at 124.50 levels, while support is at 123.25 levels respectively. Bears should take control and resume downtrend soon now.

Trading recommendations:

Remain flat for now. Look to go short around 124.50 levels.

Good luck!

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Daily analysis of major pairs for May 11, 2016

EUR/USD: This market has consolidated so far this week. There is going to be a breakout soon, most probably to the downside. The Williams' % Range period 20 is around the oversold area while the EMA 11 is below the EMA 56.

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USD/CHF: This pair briefly went above the resistance level at 0.9750 and later dipped a little. However, the bullish bias is still valid owing to the bullish confirmation pattern on the 4-hour chart. The price might trend higher from here.

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GBP/USD: This currency trading instrument has consolidated so far this week in the context of a downtrend. The EMA 11 is below the EMA 56 and the RSI period 14 is below the level 50. When a breakout does occur in the market, it would probably take the price below accumulation territories at 1.4350 and 1.4300. This means that the breakout might favor the bears.

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USD/JPY: There is a bullish signal on USD/JPY since the price has gone upwards by 240 pips this week. There is also an interesting bearish correction right now, which might proffer opportunities for long trades alongside the existing bullish bias in the market. As long as the price does not go below the demand levels at 107.00 and 106.50, the bullish signal would be rational.

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EUR/JPY: There is a bullish signal on EUR/JPY, since the price has gone upwards by 240 pips this week. There is also an interesting bearish correction right now, which might provide opportunities for long trades alongside the existing bullish bias in the market. As long as the price does not go below the demand zones at 122.00 and 121.50, the bullish signal would be rational.

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Technical analysis of GBP/CHF for May 11, 2016

Technical outlook and chart setups:

The GBP/CHF pair is seen to be trading at 1.4040 levels at the moment, after facing resistance at 1.4100 levels in early trades today. The pair looks to resume its downtrend as expected and discussed earlier. The daily chart wave structure reveals (not shown here) that the pair had completed wave 4 at 1.4200/20 levels earlier, hence bears are now expected to remain in control till prices stay below 1.4220 levels going forward. It is recommended to remain short and look to add further with risk at 1.4250 levels. Immediate resistance is seen at 1.4100 levels now, while support is at 1.3800 levels (intermediary).

Trading recommendations:

Remain short for now, stop at 1.4250 levels, target is open.

Good luck!

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Technical analysis of Silver for May 11, 2016

Technical outlook and chart setups:

Silver is trading at $17.30 levels at this moment after bouncing off $16.88 levels yesterday. The metal might be looking to retrace lower towards $17.00 levels from here, before resuming rally. Please note that, possibility still remains for a drop to $16.70/80 levels since the fibonacci 0.382 support is also around those levels as depicted here. It is recommended to book profits if long positions were taken yesterday and remain flat for now. Bears are expected to gain control for short term but support is expected to come in through $16.70/80 levels. Immediate support is seen at $16.80 levels, while resistance is at $17.60 levels respectively.

Trading recommendations:

Remain flat for now, look to buy at lower levels ($16.80-$17.00).

Good luck!

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Technical analysis of Gold for May 11, 2016

Technical outlook and chart setups:

Gold is seen to be trading at $1,272.00 levels at this moment, after having bounced off a major support at $1,256.00 levels yesterday. The wave which began from $1,256.00 levels seems to be loosing steam now, and the metal is preparing for a pullback/drop lower from current levels. It is expected to correct lower at least up to $1,262.00/63.00 levels. The structure is looking encouraging for bulls for the moment but $1,256.00 lows should hold for bulls to remain in control. It is recommended to remain book profits if long positions were taken yesterday and remain flat for now. Watch out for a bullish reaction at $1,263.00 levels to go long again. Immediate support is now at $1,256.00 levels (intermediary), while resistance is seen at $1,295.00 levels respectively.

Trading recommendations:

Please book profits on long positions if taken yesterday and remain flat for now. Look to go long again at $1,263.00 levels on a bullish bounce.

Good luck!

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Technical analysis of USDX for May 11, 2016

The Dollar index is showing signs of a reversal and a short-term top in the making. I prefer to be neutral at current levels and wait and see if the pullback that I expect is supported and at which level buyers step in. We could have seen a long-term low in the Dollar index and we could be at the beginning of a new upward move.

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The Dollar index is expected to pull back at least towards the 38% Fibonacci retracement and the upper cloud boundary near 93.20-93.30 area. We cannot rule out a deeper pull back towards the 61.8% Fibonacci retracement but for that we have to be patient. Stochastic is overbought and diverging and crossing below 80. This is a sell signal so Dollar bulls need to be very cautious.

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Red line - resistance trend line

The Dollar index has reached the downward sloping trend line in the Daily chart and shows signs of rejection. This is a warning for bulls and as prices have risen back towards the consolidation area of 93-94, this is a neutral area and possible reversal area too. Another reason why Dollar bulls need to be very cautious.

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Global macro overview for 11/05/2016

Global macro overview for 11/05/2016:

The weekly crude oil inventories data are scheduled for release at 02:30pm GMT today and they will provide a further insight regarding the stockpiles activity. Market participants are expecting a drop in inventories to the level of 750k barrels, down from 2784k barrels last week. This means the last week data were far above average and now it is time to revise it down, but there is no change in global oil policy recently and the oversupplied oil market conditions did not change a little since the last data release.

Let's now take a look at Crude Oil technical picture in 4H time frame. The market is stuck inside the congestion zone between the technical resistance at the level of 46.78 and technical support at the level of 43.19. Nevertheless, the recent price action might suggest that a lower high and a lower low had been made. Both of them are marginal and can not be taken as granted, especially if the golden trend line is still not violated. Bulls and bears fight for dominance continues.

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Global macro overview for 11/05/2016

Global macro overview for 11/05/2016:

The Reserve Bank of New Zealand had released its Financial Stability Review overnight and it warns that the risks to New Zealand's financial system have increased in the past six months. The main factors responsible for this situation are slowing global growth, low dairy prices and rising house prices. Moreover, Bank Governor Graeme Wheeler says in his speech, that the outlook for the global economy has "deteriorated" in recent months. Even the lower interest rates and low oil prices have not been enough to prevent a slowdown in the economies of a number of New Zealand's trading partners. In conclusion, the review is rather pessimistic about the future of the global and internal economy, so the pressure on RBNZ to further cut the interest rates in order to stimulate the economy will grow during the next six months.

Let's now take a look at the NZD/USD technical picture in the daily time frame. Recently, bears had managed to break out below the golden trend line and now the test from the up side is taking place. Nevertheless, the daily hammer candle might provide a temporary relief rally towards 0.6900 level if bulls will manage to close the daily candle above the resistance at the level of 0.6806.

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Technical analysis of Gold for May 11, 2016

Gold price as expected has bounced towards $1,270-80 area. Price has reached the first important short-term resistance at the 38% Fibonacci retracement of the decline from recent highs. This upward bounce could continue higher.

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Blue line - broken channel

Price has entered the Kumo area where opening a position should be avoided as this is neither a bull or a bear area. Price has also reached the 38% Fibo. Support is at the tenkan-sen (red line indicator) at $1270. Next support is at $1,264. Resistance is here at $1,275 and next at $1,277 at the 50% retracement.

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Blue lines - bullish channel

Gold price remains inside the blue bullish channel and above the daily kijun-sen (yellow line indicator) support. A break above the daily tenkan-sen (red line indicator) could suggest that new highs could be seen. At this point a new higher high will be expected to overshoot above the bullish channel and we could even see price towards $1,400.

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Technical analysis of USD/JPY for May 11, 2016

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USD/JPY is expected to trade in a higher range as the pair is bullish above 108.20. Overnight U.S. stock indexes rose over 1% posting their biggest gains in two months. Stocks climbed across the board, led by those in the capital goods, energy and materials sectors. The Dow Jones Industrial Average climbed 1.3% to 17928, the S&P 500 added 1.3% to 2084, and the Nasdaq Composite was also up 1.3% to 4809.

Nymex crude oil rebounded 2.8% to $44.66 a barrel, gold gained 0.2% to $1266 an ounce, while the benchmark 10-year Treasury yield was little changed at 1.760%.

Regarding forex trading, the US dollar stayed firm against other major currencies. The Japanese yen kept weakening as Japanese Finance Minister Taro Aso repeatedly mentioned intervention against the yen's recent sharp appreciation. USD/JPY rose another 0.9% to 109.25

EUR/USD slide another 0.1% to 1.1368, USD/CHF was up 0.5% to 0.9757, while GBP/USD rallied 0.2% to 1.4440.

At the same time commodities-linked currencies rebounded along with oil prices, with USD/CAD dropped 0.4% to 1.2910, AUD/USD rallied 0.7% to 0.7362.

The pair ran up to 109.34 overnight before entering a consolidation. Although the intraday relative strength index has fallen below the neutrality level of 50 indicating the possibility of an extended consolidation, the pair has managed to locate support from the ascending 50-period moving average. In case the pair emerges on the upside upon completing the consolidation, it should proceed toward the first upside target at 109.90 (a key resistance seen in April 20-21).

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 109.40 and the second one, at 109.90. In the alternative scenario, short positions are recommended with the first target at 107.40 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 107. The pivot point is at 108.20.

Resistance levels: 109.40, 109.90, 110.45

Support levels: 107.40, 107, 106.55

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Technical analysis of USD/CAD for May 11, 2016

General overview for 11/05/2016:

The intraday resistance at the level of 1.3015 had held the line and the market has reversed downwards. After the three wave internal correction the price is now trading just above the intraday support at the level of 1.2898, but the breakout lower is expected here. The first target is weekly pivot at the level of 1.2818, but bears might push the price even lower towards the technical support at the level of 1.2758.

Support/Resistance:

1.3015 - Intraday Resistance

1.2897 - Intraday Support

1.2818 - Weekly Pivot

1.2758 - Technical Support

1.2675 - WS1

Trading recommendations:

Sell orders should now be in play already with SL above the level of 1.3015 and TP open for now (might extend to around 1.2758).

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Technical analysis of USD/CHF for May 11, 2016

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USD/CHF is expected to continue its upside movement. The pair stands firmly above its key horizontal support at 0.9680, and is challenging its nearest resistance at 0.9765. At the same time, both 20-period and 50-period moving averages are playing support roles and the relative strength index stays above its neutrality area at 50. Further upside is therefore expected with the next horizontal resistance and overlap set at 0.9765 at first. A break above this level would call for further advance toward 0.9795.

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 0.9765 and the second one, at 0.9795. In the alternative scenario, short positions are recommended with the first target at 0.9655 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 0.9620. The pivot point is at 0.9680.

Resistance levels: 0.9765, 0.9795, 0.9850

Support levels: 0.9655, 0.9620, 0.9570

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Technical analysis of EUR/JPY for May 11, 2016

General overview for 11/05/2016:

The typical retracement level for the wave c of the wave (b) had been hit and now it looks like the market has reversed. To confirm the reversal is true, the price must drop below the intraday support at the level of 123.50 and then below 123.23 technical support. Extension to the upside is possible only of the price will break out above the local high at 124.40 in an impulsive fashion. Otherwise, lower prices are expected in this market.

Support/Resistance:

120.33 - WS2

121.20 - WS1

122.36 - Weekly Pivot

123.23 - WR1

123.53 - Intraday Support

124.37 - WR2

124.66 - Intraday Resistance

125.25 - WR3

Trading recommendations:

Day traders should consider opening sell orders from the current market levels with a tight SL (10-15 pips) and TP open for now (might extend to around 120.33). Please use a tight SL because there are three different targets for the wave (b) to complete and at this stage of progression it is impossible to tell on which one the wave ends.

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Technical analysis of NZD/USD for May 11, 2016

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NZD/USD is turning up and expected to trade in a bullish bias. The pair is likely to post further rebound. At the same time, the 20-period moving average has crossed above the 50-period one, calling for further upside as well. As long as 0.6740 is not broken below, we are positive and expect a bounce to 0.6860 at first.

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 0.6860 and the second one, at 0.6890. In the alternative scenario, short positions are recommended with the first target at 0.6710 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 0.6650. The pivot point is at 0.6740.

Resistance levels: 0.6860, 0.6890, 0.6920

Support levels: 0.6710, 0.6650, 0.66

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Technical analysis of GBP/JPY for May 11, 2016

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GBP/JPY is expected to post further gains. The pair has been supported by its rising 20-period and 50-period moving averages and is looking for a higher top. Meanwhile, the relative strength index still stays above 50. As long as 123.20 is not broken down, further upside is expected with the next horizontal resistance and overlap set at 158.45 at first. A break above this level would call for further advance toward 159.50 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 158.45 and the second one, at 159.50. In the alternative scenario, short positions are recommended with the first target at 155.90 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 155.90. The pivot point is at 156.45.

Resistance levels: 158.45, 159.50, 160.25

Support levels: 155.90, 155.35, 154.35

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Elliott wave analysis of EUR/NZD for May 11, 2016

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Wave summary:

Support at 1.6610 should ideally be able to protect the downside for the next rally closer to 1.7273 and higher. A break below 1.6610 will be of concern and question the rally from the 1.6063 low. A break below 1.6610 will shift the preferred count to a leading diagonal and call for a decline to 1.6479 before moving higher again.

Trading recommendation:

We are long EUR from 1.6315 with stop placed at 1.6600. If our stop is triggered, we will re-buy EUR at 1.6485

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

Elliott wave analysis of EUR/JPY for May 11, 2016

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Wave summary:

The big question here is whether we only have seen red wave [iii] at 124.45 and red wave [iv] to maximum 123.24 now is unfolding or whether we already have seen the top of wave [i] at 124.45.No matter which of the two scenarios that will prove correct, we can say that the rally of the 121.46 low is impulsive and more upside should follow a correction. The deciding factor whether we only have seen red wave [iii] or wave [i] at 124.45 and whether support at 123.25 will protect the downside or not.

Trading recommendation:

We are long EUR from 122.55 and will move our stop to 123.20 securing a profit no matter which scenario proves correct.

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

Technical analysis of EUR/USD for May 11, 2016

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When the European market opens, no economic news will be released from the euro zone today. However, the US will release several economic reports such as Federal Budget Balance, 10-y Bond Auction, and Crude Oil Inventories. So amid the reports, EUR/USD will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Breakout BUY Level: 1.1429.

Strong Resistance:1.1422.

Original Resistance: 1.1411.

Inner Sell Area: 1.1400.

Target Inner Area: 1.1373.

Inner Buy Area: 1.1346.

Original Support: 1.1335.

Strong Support: 1.1324.

Breakout SELL Level: 1.1317.

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 11, 2016

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In Asia, Japan will release the leading indicators. The US will release some economic data such as Federal Budget Balance, 10-y Bond Auction, and Crude Oil Inventories. So there is a probability the USD/JPY pair will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Resistance. 3: 109.52.

Resistance. 2: 109.30.

Resistance. 1: 109.09.

Support. 1: 108.82.

Support. 2: 108.61.

Support. 3: 108.40.

Disclaimer: Trading Forex (foreign exchange) on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

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

Daily analysis of USDX for May 11, 2016

USDX is still trading in a bullish tone on H1 chart and a rally is expected to test the resistance zone of 94.56. The overall structure remains pointing to the upside as long as the Index breaks the strong resistance around the 94.56 level in order to rally toward the 94.84 level. 200 SMA is slightly bullish in this time frame, so we can expect more bullish moves in coming days, but be aware of possible deeper corrections.

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H1 chart's resistance levels: 94.56 / 94.84

H1 chart's support levels: 94.06 / 93.80

Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the USD Index breaks with a bullish candlestick; the resistance level is at 94.56, take profit is at 94.84, and stop loss is at 94.26.

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

Daily analysis of GBP/USD for May 11, 2016

The pair found a temporal support around the 1.4430 level, but still we can see that a bearish tone is placed below the 200 SMA. However, a breakout above the resistance zone of 1.4549 will push the cable higher to test the 1.4635 level. A bullish bias is likely to be followed afterwards in the medium term. MACD indicator is entering the negative territory.

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H1 chart's resistance levels: 1.4549 / 1.4635

H1 chart's support levels: 1.4430 / 1.4316

Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the GBP/USD pair breaks a bearish candlestick; the support level is at 1.4430, take profit is at 1.4316 and stop loss is at 1.4542.

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