Technical analysis of EUR/JPY for May 23, 2016

EUR/JPY continues trading near the 122.00 support area. At the same time, it fails to produce a higher high which is a sign that the trend is still bearish.

The pair rejecting the downtrend trendline and remains below the 200 Moving Average. Consider selling EUR/JPY on small pullbacks near 123.00, targeting 161.8% Fibs applied to the first corrective wave after the 128.00 support breakout. The stop loss should be well above the R1 (124.70).

Support: 122.00, 118.80

Resistance: 124.70, 127.30

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Technical analysis of EUR/NZD for May 23, 2016

EUR/NZD finally broke below the strong support near 1.6580 with the H4 close below the 200 Moving Average. The pair rejected the downtrend trend line and broke below the uptrend trend line.

The Fibonacci applied to the uptrend trend line's breakout shows the potential downside target at 0% Fibs - S2 (1.6370). Consider selling EUR/NZD at the current rate (1.6540) targeting S2 (1.637). The stop loss should be just above R1 (1.6580).

Support: 1.6500, 1.6370

Resistance: 1.6582, 1.6650, 1.6715

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USD/CAD intraday technical levels and trading recommendations for May 23, 2016

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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 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 1.3300 until a bearish breakout took place on April 11.

Shortly after the quick bearish decline took place below 1.3000, signs of bullish recovery were expressed around 1.2460.

The current bullish pullback towards 1.3000 (61.8% Fibonacci level) was expected to offer a valid signal to sell the USD/CAD pair. However, lack of significant bearish rejection was manifested during last week's consolidations.

Bullish persistence above 1.3000 (61.8% Fibonacci level) opens the way towards 1.3300 (50% Fibonacci level) where price action should be watched for a better SELL position.

On the other hand, bearish persistence below 1.3000-1.2970 (61.8% Fibonacci level) will be needed to maintain enough bearish momentum in the market.

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NZD/USD Intraday technical levels and trading recommendations for May 23, 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 a few weeks ago.

Bullish persistence above 0.6550 (depicted recent support) was necessary to keep the price moving towards higher bullish targets.

During February's consolidations, the price zone of 0.6760-0.6840 constituted a significant resistance zone where signs of a bearish rejection were seen (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 0.6760 and 0.6860 was initiated.

In March, obvious bullish breakouts above 0.6760 and 0.6860 were executed. Hence, the price level of 0.6750 constituted a significant support level where a bullish hammer daily candlestick was expressed on May 10.

Recently on May 6, a daily candlestick closure below the 0.6850 level enhanced a quick bearish movement towards 0.6760 where bullish rejection was expected to be applied.

That is why, bullish persistence above 0.6760 and 0.6850 is mandatory to maintain enough bullish momentum in the market.

On the other hand, bearish persistence below 0.6760 allows a quick bearish decline towards 0.6670.

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EUR/NZD analysis for May 23, 2016

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Recently, EUR/NZD has been moving downwards. As I expected, the pair tested the level of 1.6470 in a high volume. According to the 1H time frame, I found a sign of strength. A bearish bar in a high volume but closed in the middle. For me, this is a big warning for sellers. After the strength came in, I saw the reaction from buyers, which is a good sign that buyers are in control today. Watch for buying opportunities on the dips. Take profit level is set at the price of 1.6585.

Fibonacci Pivot Points:

Resistance levels:

R1: 1.6610

R2: 1.6631

R3: 1.6665

Support levels:

S1: 1.6545

S2: 1.6522

S3: 1.6490

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

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Gold analysis for May 23, 2016

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Since our previous analysis, gold has been trading sideways at the price of $1,249.00. According to the M1 time frame, I found a massive volume spike (selling climax), which is a sign of strength. A wide-spread bearish bar is in an ultra-high volume, but notice that the bar closed in the middle. If professional traders are bearish, the bar should not close in the middle, especially not in an ultra-high volume. This is a potential accumulation phase by professional money. So, watch for buying opportunities on dips. The take profit level is set at the price of $1,251.30.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,253.20

R2: 1,254.00

R3: 1,255.40

Support levels:

S1: 1,250.40

S2: 1,249.60

S3: 1,248.00

Trading recommendations for today: Massive volume spike (selling climax). Selling looks very risky. Watch for buying opportunities.

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Technical analysis of GBP/USD for May 23, 2016

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Overview:

  • The GBP/USD pair broke support which turned to strong resistance at the level of 1.4500. The level of 1.4500 is expected to act as major resistance today. From this point, we expect the GBP/USD pair to continue moving in a bearish trend from the resistance level of 1.4500. Currently, the price is moving in a bearish channel. This is confirmed by the RSI indicator signaling that we are still in the bearish trending market. Consequently, the first support is set at the level of 1.4338 (double bottom). So, the market is likely to show signs of a bearish trend around the spot of 1.4500 - 1.4537. In other words, buy orders are recommended above the spot of 1.4500 - 1.4537 with the first target at the level of 1.4410; and continue towards 1.4338. This would suggest a bearish market because the moving average (100) is still in a positive area and does not show any trend-reversal signs at the moment. Moreover, if the GBP/USD pair succeeds to break through the strong support at 1.4338. Then the market will decline further to 1.4169. The pair is expected to drop lower towards at least 1.4169 in order to for a new double bottom this week.

Intraday technical levels:

  • R3: 1.5000
  • R2: 1.4831
  • R1: 1.4669
  • PP: 1.4500
  • S1: 1.4338
  • S2: 1.4169
  • S3: 1.4007
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Technical analysis of EUR/USD for May 23, 2016

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Overview:

  • The EUR/USD pair is trading around the area of 1.1200. Today, the level of 1.1200 represents a daily pivot point in the H1 time frame. The pair has already formed minor resistance at 1.1250 and the strong resistance is seen at the levels of 1.1320 and 1.1348 (the level of 1.1348 represents the double top). So, major resistance is seen at 1.1320 - 1.1348, while immediate support is found at 1.1179. If the pair closes below the level of 1.1179, the EUR/USD pair may resume it movement to 1.1151. From this point, we expect the EUR/USD pair to move between the levels of 1.1151 and 1.1320 in coming days. Equally important, the RSI is still calling for a strong bearish market as well as the current price is also below the moving average 100. Thus, the major support is seen at 1.1151. On the other hand, if the EUR/USD pair fails to break through the level of 1.1151 today, the market will move upwards continuing the development of the bullish trend to the level 1.1250. As a result, buy above the support of 1.1151 with targets at 1.1250, 1.1320, and 1.1348.
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Global macro overview for 23/05/2016

Global macro overview for 23/05/2016:

Crude Oil Inventories data from last week showed an unexpected increase in stockpiles to 1,310K barrels (-3,500k expected and -3,410k prior). Currently, commodity market participants are preparing for the next OPEC meeting on June 2, where the following issues will be discussed: wildfire in Canada, a sharp drop in Nigerian production due to sabotage, turmoil in Venezuela, Saudi Arabia new oil minister, and Iran refusal to decrease the production output. This is why the unity of OPEC group is now in the spotlight more than ever, as the ongoing direct altercation between Saudi Arabia and Iran is getting more tense. The proposal by Kuwaiti deputy foreign minister Khaled Jarallah for the member nations to freeze production is a feeble attempt to support prices. In conclusion, the meeting with very uncertain outcome might get the oil prices very violate again. It is worth to keep an eye on the meeting conclusion.

Let us now take a look at the crude oil technical picture on the H4 time frame. Another higher high in the sequence has been made with the top at the level of 48.93. The price is still trading above the 21,50 and 100 moving average, above the golden trend line and above the last important support at the level of 46.77. Clearly bulls are in control over this market.

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Global macro overview for 23/05/2016

Global macro overview for 23/05/2016:

A series of PMI Manufacturing data has been released this morning and it looks like the eurozone recovery might pick up some steam at last. Among all major European countries only the French Manufacturing PMI was below the expectations (48.3 vs. 49.0 and 48.0 prior) and the rest of the indices, both on manufacturing and services sectors, were better than expected ( with Germany leading the way). Nevertheless, the composite PMI for the whole eurozone was lower than expected ( 52.9 vs. 53.2 and 53.0 prior). In conclusion, the PMI readings are still above 50 (the number that is a gauge for the overall performance), which means the services and manufacturing sectors are still expanding slowly, but surely.

Let us now take a look at the EUR/USD technical picture on the 4H time frame. The important support at the level of 1.1215 had been violated last week and now is being tested again. The market rally then was capped below the dashed black trend line as bears took back the control over the market. The next support is seen at the level of 1.1142 and in case of a breakout, another one is at the level of 1.1056.

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Technical analysis of USD/CAD for May 23, 2016

General overview for 23/05/2016:

The anticipated wave iv corrective cycle is currently unfolding just above the weekly pivot at the level of 1.3056. One more higher high is still being anticipated as well, because wave v is still not completed. The projected target for wave v is at the level of 1.3218, but it might get extended to the level of 1.3276.

Support/Resistance:

1.3276 - WR1

1.3218 - Projected target for wave v

1.3162 - Intraday Resistance

1.3056 - Weekly Pivot

1.3014 - Intraday Support

1.2951 - WS1

1.2771 - Technical Support

Trading recommendations:

All buy orders from last week should be still kept open as the target hasn't been hit yet. The projected TP is still at the level of 1.3218.

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Technical analysis of EUR/JPY for May 23, 2016

General overview for 23/05/2016:

The alternative count has been invalidated and the current Elliott wave count is the correct one. It indicated an anticipated downward wave progression in order to complete the wave (c) of the corrective cycle. The most important level is now the intraday support at the level of 122.63, because any break out lower will confirm the current structure and put the level of 122.63 for test. Please notice that the projected target at the level of 121.47 might be extended lower towards the levels of 121.00 and 120.50.

Support/Resistance:

121.47 - Projected Target Level

121.92 - WS2

122.63 - Intraday Support

122.77 - WS1

122.91 - Intraday Resistance

123.46 - Weekly Pivot

124.34 - WR1

Trading recommendations:

All sell orders from last week should be still kept open as the target hasn't been hit yet. More sell orders might be added after the level of 122.63 is violated.

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Intraday technical levels and trading recommendations for GBP/USD for May 23, 2016

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

However, 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.

On May 3, the depicted long-term downtrend line came to meet the GBP/USD pair around the same price zone. Hence, significant bearish rejection and bearish weekly candlesticks were executed around the upper limit of it (1.4670 level).

As long as the GBP/USD pair keeps trading below 1.4680, the next bearish destinations for the pair will be located at 1.4300, 1.4220 and 1.4050.

Bearish persistence below 1.4475 is needed to maintain enough bearish momentum.

On the other hand, a weekly candlestick closure above 1.4680 allows a quick bullish movement to occur towards 1.4950 initially.

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In 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.

Daily persistence below 1.4470 was needed to enhance further bearish decline initially towards 1.4350, 1.4220 and 1.4050.

However, On May 16, lack of enough bearish momentum below 1.4330-1.4350 resulted in the current bullish breakthrough above 1.4470.

Please note that the price zone of 1.4700-1.4750 corresponds to 61.8% Fibonacci level and the depicted downtrend line. Hence, significant bearish rejection and a valid SELL entry can be offered around these price levels.

Please note that the GBP/USD pair may become trapped between the price levels of 1.4480 and 1.4700 (61.8% Fibonacci level) until a breakout occurs (most likely a bearish one).

Daily persistence below 1.4470 is needed to enhance further bearish decline towards 1.4350 and 1.4220.

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Intraday technical levels and trading recommendations for EUR/USD for May 23, 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 was 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 constituted a significant resistance zone for the EUR/USD pair.

On May 5, the 1.1600 level corresponded to the backside of the broken uptrend line depicted on the chart where the shooting-star daily candlestick appeared, indicating significant bearish rejection.

Recently, daily persistence below the 1.1400 level was needed to ensure further bearish momentum towards 1.1330 level.

A strong bearish daily candlestick was achieved on May 12. Hence, a quick bearish decline towards 1.1210 and 1.1100 levels should be expected as long as the EUR/USD pair keeps trading below 1.1400.

Please note that any bearish pullback towards the level of 1.1000 (depicted uptrend line and previous consolidation range) should be considered for a valid BUY entry. S/L should be placed below 1.0950.

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Technical analysis of Silver for May 23, 2016

Technical outlook and chart setups:

Silver has just hit another low at $16.29 levels, and should find support around $16.00 levels going forward. Please also note that fibonacci 0.618 support level of rally between $14.80 and $18.00 levels is also seen at $16.00/05 as depicted here on the 4H chart view. Please note that the drop from $18.00 levels through $16.29 looks to be corrective in nature and a bullish reversal at $16.00 levels should be looked upon as opportunity to initiate fresh long positions. It is hence recommended to remain long for now, with risk below $16.00 levels. Immediate resistance is seen at $16.65/70 levels, while support is seen through $16.00 levels respectively.

Trading recommendations:

Remain long for now, stop at $15.50 levels, a target is open.

Good luck!

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Technical analysis of Gold for May 23, 2016

Technical outlook and chart setups:

Gold is seen to be trading at $1,252.00/53.00 levels, testing its trend line support again. The metal seems to be looking to drop lower around $1,242.00 levels and complete its correction, before turning bullish again. Please note that structurally, the metal is looking to form an up gartley and should find support at $1,242.00 or $1,226.00 levels going forward. Only a break below $1,226.00 levels should be encouraging to bears and might change the intermediary trend to lower. It is hence recommended to remain long for now with risk at $1,220.00 levels, and also look to add around $1,226.00 if prices turn bullish from there. Immediate support is seen at $1,237.00 levels, while resistance is seen at $1,280.00 levels respectively.

Trading recommendations:

Remain long for now, stop at $1,220.00, a target is open.

Good luck!

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Technical analysis of EUR/JPY for May 23, 2016

Technical outlook and chart setups:

The EUR/JPY pair continues to drift in a range between 123.00 and 124.00 levels as depicted here. The pair is now seen to be trading at 123.00 levels, looking to break below the range support. It is expected to continue dropping lower below 121.40 levels going forward. The wave structure indicates that EUR/JPY has carved out a lower low at 124.00 levels last week and has completed a flat correction. The pair looks to have resumed its downtrend towards fresh lows. It is hence recommended to remain short for now, with risk at 124.75 levels. Immediate resistance is seen at 124.60 levels, while support is seen at 122.50 levels respectively.

Trading recommendations:

Remain short with stop at 124.75/85, target below 121.40.

Good luck!

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Technical analysis of USDX for May 23, 2016

The Dollar index remains supported but there are more signs of a possible bearish short-term reversal ahead. So Dollar bulls should be very cautious if not willing to take profits at current levels.

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Blue lines - bullish channel

The Dollar index is testing the lower boundary of the bullish channel. The stochastic has already given a sell signal in the 4 hour chart after turning below 80 from overbought levels. Price is expected to pull back at least towards the Kumo (cloud) support.

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The Dollar index has given a reversal signal 3 weeks ago after bouncing off the 38% Fibonacci retracement. Stochastic oscillator has turned upwards above 20 from oversold levels. This was an important buy signal. A short-term pull back is overdue to bulls need to be cautious. I prefer taking profits from longs at current levels.The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of Gold for May 23, 2016

Gold price remains in a bearish trend and despite the pause in the decline from $1,290, I expect price to move lower over the coming weeks as the weekly chart shows more weakness should be expected towards $1,200.

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Black line - trend line resistance

Blue lines - bearish channel

Gold price is trading inside the bearish channel and below both the black trend line and the Ichimoku cloud. Support is at $1,245 and resistance at $1,260. Breaking below support will push price towards $1,220-30. Breaking above resistance will push price towards $1,275.

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Last week's candle closed below the tenkan-sen (red line indicator). This is a bearish sign. I now expect Gold price to move lower towards the upper cloud boundary near $1,180. Only a move above $1,290 will cancel this bearish view.The material has been provided by InstaForex Company - www.instaforex.com

Elliott wave analysis of EUR/NZD for May 23, 2016

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Wave summary:

The break below 1.6479 has invalidate the previous count. The new count has moved red wave [i] up to 1.6931 and the ongoing correction is red wave [ii], which is expected to terminate in the support area between 1.6353 - 1.6411 from where a new impulsive rally to above 1.6931 is foreseen.

Short-term minor resistance is seen at 1.6548 with back up resistance at 1.6614.

Trading recommendation:

We will buy EUR at 1.6420 with stop placed at 1.6195

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Elliott wave analysis of EUR/JPY for May 23, 2016

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Wave summary:

The failure to break above resistance at 124.18 indicates that the correction in wave [ii] is still unfolding as a complex double zig-zag. This also means that the "old" 122.10 target has been revived. Once this target has been tested, a new impulsive rally to above 126.43 should be expected.

Short-term minor resistance is seen at 123.45 with backup resistance seen at 123.64.

Trading recommendation:

We are long EUR from 123.30 and will move our stop higher to 1.2310 and close at break-even if possible.

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Technical analysis of GBP/CHF for May 23, 2016

Technical outlook and chart setups:

The GBP/CHF pair still has room left on higher side, while it is trading at 1.4365 levels at this moment. The pair is expected to drop to 1.4280 levels before reversing higher again. Please also note that fibonacci 0.382 support of the rally between 1.3950 and 1.4490 levels is passing through 1.4280 respectively. A bullish reversal is expected here, and the pair should push higher towards 1.4700/25 levels at least before turning lower again. It is hence recommended to turn long again from 1.4280/90 levels, with risk just below the lows. Immediate support is seen at 1.4280 levels, while resistance is at 1.4490 levels respectively.

Trading recommendations:

Remain flat for now and look to go long around 1.4280 levels.

Good luck!

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Technical analysis of EUR/USD for May 23, 2016

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When the European market opens, some economic news will be released such as Consumer Confidence, Flash Services PMI, Flash Manufacturing PMI, German Flash Services PMI, German Flash Manufacturing PMI, French Flash Services PMI, and French Flash Manufacturing PMI. Besides, the US will release an economic report, in particular Flash Manufacturing PMI. So amid the reports, EUR/USD will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Breakout BUY Level: 1.1276.

Strong Resistance:1.1269.

Original Resistance: 1.1258.

Inner Sell Area: 1.1247.

Target Inner Area: 1.1220.

Inner Buy Area: 1.1193.

Original Support: 1.1182.

Strong Support: 1.1171.

Breakout SELL Level: 1.1164.

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

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Technical analysis of USD/JPY for May 23, 2016

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In Asia, Japan will release the All Industries Activity m/m, Flash Manufacturing PMI, and Trade Balance. The US will also release an economic report, in particular Flash Manufacturing PMI. 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: 110.28.

Resistance. 2: 110.06.

Resistance. 1: 109.85.

Support. 1: 109.58.

Support. 2: 109.37.

Support. 3: 109.15.

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

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Daily analysis of major pairs for May 23, 2016

EUR/USD: Compared to USD/CHF, EUR/USD moved in the opposite direction last week. The price closed below the resistance line at 1.1250, as it threatens to test the support line at 1.1200. This support line, including another support line at 1.1150, might be tested this week. Nevertheless, it is possible that the EUR would rally this week – an event that could hamper the extant bullishness in the market.

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USD/CHF: As it was forecasted, the USD/CHF pair was able to move upwards by 160 pips last week, closing above the support level at 0.9900. The next target should be the resistance level at 1.0000, which means a parity area for USD versus CHF. However, there is one challenge bulls might face this week, and that is the anticipated rally in CHF, which would make it difficult for bulls to push the price far higher.

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GBP/USD: This pair moved upwards by 300 pips last week, and later dropped by 140 pips to close at 1.4506. There would have been a Bullish Confirmation Pattern on the 4-hour chart, but the bearish correction is conspicuous enough to force the market back into a neutral zone. Nevertheless, the most probably direction this week is northwards.

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USD/JPY: This market is bullish – having moved upwards by 170 pips last week. The EMA 11 is above the EMA 56, while the RSI period 14 is above the level 50. Further upwards movement is anticipated. The price is now above the demand level at 110.00, and the next target is the supply level at 111.00. Other JPY pairs could also go bullish this week.

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EUR/JPY: The EUR/JPY pair has moved sideways throughout last week, with the price not going above the supply zone at 124.50 or going below the demand zone 122.50. A breakout would happen this week, which would take the market out of the equilibrium zones. The higher probability is a breakout in favor of bulls.

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Daily analysis of USDX for May 23, 2016

The index still trades sideways to higher levels, consolidating gains above the support at 95.22, where we expect to see a rebound to test the next resistance placed around 95.68 area. A breakout above it will open doors to reach new highs, the first target lies at 96.14 level. MACD indicator, however, is entering into negative territory, so be cautious when adding more long orders at the current stage.

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H1 chart's resistance levels: 95.68 / 96.14

H1 chart's support levels: 95.22 / 94.89

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 95.68, take profit is at 96.14, and stop loss is at 95.20.

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Daily analysis of GBP/USD for May 23, 2016

It can be seen on the H1 chart that GBP/USD has been trading in corrective mode, trying to resume rally to key levels such as the H1 chart shows. That's why we would like to see some upward moves in the nearest future, at least in the coming days. However, the decline can be extended toward the 1.4430 level, where we will see another bullish attempt.

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H1 chart's resistance levels: 1.4549 / 1.4622

H1 chart's support levels: 1.4430 / 1.4335

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 1.4622 and stop loss is at 1.4477.

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