Technical analysis of GBP/JPY for June 02, 2016

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GBP/JPY is expected to trade with bearish bias as key resistance is at 158.75. The pair was capped by its descending 50-period moving average and it remains on the downside. The relative strength index stuck against 50 and lacks upward momentum. As long as 158.75 is not broken above, the pair is expected to test yesterday's low at 155.90 at first.

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 155.90. A break of this target will move the pair further downwards to 155. The pivot point stands at 158.75. 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 159.75 and the second one at 160.70.

Resistance levels: 159.75, 160.70, 161.50

Support levels:155.90, 155, 154.25

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NZD/USD Intraday technical levels and trading recommendations for June 2, 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 0.6750-0.6840 constituted a significant resistance zone where signs of a bearish rejection were seen (triple-top reversal pattern).

However, on February 9, the NZD/USD pair failed to consolidate below the depicted support level at 0.6550.

In early March, temporary bullish breakouts above 0.6750 and 0.6860 were executed. That's why, these price levels stood as temporary support levels.

On May 6, daily candlestick closure below the 0.6850 level enhanced a quick bearish movement towards 0.6750 where bullish rejection was expected to be applied.

However, obvious bearish closure below 0.6750 was achieved on May 24 (bearish breakout of the depicted bullish channel).

Obvious bullish recovery was expressed around the price level of 0.6675. That's why, a recent bullish pullback is currently taking place above 0.6760.

Note that the current bullish breakout above 0.6760 invalidates the previous bearish scenario allowing a quick bullish movement to occur towards 0.6860.

On the other hand, the current price zone between 0.6760 - 0.6860 remains a significant resistance zone (corresponds to the backside of the broken channel as well).

Hence, a valid SELL entry can be offered around the current price levels.

However for conservative traders, a bearish closure below 0.6760 is needed to ensure further bearish decline.

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USD/CAD intraday technical levels and trading recommendations for June 2, 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 recent bullish pullback towards 1.3000 (61.8% Fibonacci level) was expected to offer a valid signal to sell the USD/CAD pair. However, a lack of significant bearish rejection was manifested during recent consolidations.

Recently, temporary bullish fixation above 1.3000 (61.8% Fibonacci level) opened the way towards the 1.3180 level where significant bearish pressure was previously originated.

That's why, bearish persistence below 1.3000-1.2970 (61.8% Fibonacci level) is needed to enhance bearish momentum in the market. Initial T/P levels should be located at 1.2770 and 1.2650.

Otherwise, further bullish advancement towards the price level of 3.290 shouldn't be excluded.

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

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

However, 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 1.4670, the next bearish destinations for the pair will be located at 1.4300, 1.4220, and 1.4050.

The current bearish persistence below 1.4480 should be maintained to keep enough bearish momentum in the market.

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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 1.4670-1.4700 corresponded to the 61.8% Fibonacci level and the depicted downtrend line.

Hence, significant bearish rejection and a valid SELL entry were suggested around these price levels. It's already running in profits now.

Daily persistence below the level of 1.4480 enhances further bearish decline towards 1.4350 and 1.4220.

Otherwise, the GBP/USD pair may become trapped again between the price levels of 1.4480 and 1.4700.

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Intraday technical levels and trading recommendations for EUR/USD for June 2, 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.

That's why, another bearish rejection was expected around the current price levels (Note the previous monthly candlestick of May).

In the long-term prospect, the level of 0.9450 will remain a projected bearish target if the current 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.

Daily persistence below the 1.1400 level was needed to ensure enough bearish momentum towards the 1.1200 level.

As long as the EUR/USD pair keeps trading below the price level of 1.1200 (recently-broken demand level and a valid level to sell the pair), bearish decline should be expected towards 1.1100 and 1.1000 levels.

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

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Gold analysis for May 02 , 2016

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Since our previous analysis, gold has been sideways at the price of $1,216.60. According to the daily time frame, I found a reversal candle pattern, the Morning Star formation. Notice the volume on the bearish bar. It is very low, and this is a sign that sellers lost power and that reversal is possible. Stochastic oscillator is showing oversold level, which confirms the strength. Watch for buying opportunities. According to the 4H time frame, I found bullish harami candle pattern from the bottom. It is a good sign of a potential change in the trend dynamic. Upward targets are set at the price of $1,239.00 and $1,263.00.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,219.50

R2: 1,222.50

R3: 1,228.00

Support levels:

S1: 1,208.00

S2: 1,204.70

S3: 1,199.25

Trading recommendations for today: Be careful when selling gold and watch for buying opportunities.

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EUR/NZD analysis for June 02, 2016

Recently, EUR/NZD has been moving upwards. The price tested the level of 1.6505. I found a strong base (bottoming) near the level of 1.6355. According to the 30M time frame, I found a sign of strength. There are few down bars but with weak closing (in the middle), which is a sign of strength. I found successful testing of supply in a low volume, which is another sign of strength. Watch for buying opportunities on the dips. Upward targets are set at the price of 1.6640 and 1.6680.

Fibonacci Pivot Points:

Resistance levels:

R1: 1.6450

R2: 1.6480

R3: 1.6530

Support levels:

S1: 1.6345

S2: 1.6315

S3: 1.6560

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

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Global macro overview for 02/06/2016

Global macro overview for 02/06/2016:

The OPEC members meet in Vienna today, where they will try to solve the current growing tension between Saudi Arabia and Iran in constructive and polite manner. As we know, in the recent months, Iran has been stubbornly refusing to cut the output levels, preventing members from reaching an agreement to lower or freeze production in order to boost low oil prices. Moreover, Iran reiterated its policy on Wednesday, saying it would not sign off on any commitment regarding output levels. That is why the OPEC members are now free to set any output limits alone or not to do it at all as every member is responsible only for its own market. In conclusion, a very interesting meeting ahead of the global investors and Crude Oil Inventories data later at 03:00pm GMT might even provide more volatility if the meeting conclusion will not be approved by the market.

Let's now take a look at the Crude Oil technical picture in the 4H time frame. This is a clear bull market with consecutive higher highs and higher lows being done since the 26.06 bottom. The market still traders above the golden trend line and above the 21,50 and 100 moving average, so there is no need to jump before the bull train yet.

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Global macro overview for 02/06/2016

Global macro overview for 02/06/2016:

The European Central Bank interest rate decision and Mario Draghi press conference are the main macro events of the day that are scheduled at 11:45am GMT. For the last two months the interest rates has been left at the level of 0.0% and today the market participants expect no change in the rates as well. Nevertheless, it is worth noticing that the eurozone growth remains sluggish ( except Germany) and the economy is struggling with deflation. The question remains if there are enough reasons for Mario Draghi to take the action and introduce the negative interest rates or increase the ECB asset purchase program? In my opinion, the interest rates will be kept at the same level, but Draghi might reiterate to act if economic conditions, namely growth and inflation indicators, point downwards.

Let's now take a look at the EUR/USD technical picture as it has been edging up ahead of the ECB interest rate decision. The market had made a lower low just before rallying slightly to the next important resistance at the level of 1.1215. Nevertheless, bears remain in control over this market, but further corrective rally is possible up to the level of 1.1282.

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Technical analysis of EUR/JPY for June 2, 2016

General overview for 02/06/2016:

Since the wave X top is at the level of 124.20, the Elliott wave progression develops just as anticipated. The wave (a) and wave (b) of the overall three wave downside move are now in place, so currently only wave (c) must be developed in order to complete the structure. The projected target for this wave is at the level of 121.47.

Support/Resistance:

124.85 - WR3

124.65 - Wave (b) High

124.23 - WR2

123.42 - WR1

122.82 - Weekly Pivot

122.63 - Intraday Resistance

121.99 - WS1

121.89 - Intraday Support

121.48 - Black Impulsive Count Invalidation Level

121.40 - WS2

Trading recommendations

All sell orders should be still kept open as the impulsive structure to the downside might still unfold anytime. The SL is still at the same place, above the level of 124.13.

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Technical analysis of USD/CAD for June 2, 2016

General overview for 02/06/2016:

Another sub-cycle inside of the wave i black might be counted as the impulsive wave ( labeled as the wave -i- ), so now the market should develop a corrective cycle in wave -ii- . Nevertheless, the top of the wave (i) at the level of 1.3190 still hasn't been violated. This kind of price action might suggest that the corrective cycle in wave ii is still not completed, and it might evolve into a more complex and time-consuming structure. The invalidation line for this cycle is still at the level of 1.2910. The final confirmation of the bullish impulsive wave development comes with a new high above the level of 1.3190.

Support/Resistance:

1.3190 - Wave (i) High

1.3164 - WR1

1.3132 - Intraday Resistance

1.3035 - Weekly Pivot

1.2997 - Intraday Support

1.2888 - WS1

1.2836 - Green Impulsive Count Invalidation Level

1.2761 - WS2

Trading recommendations

All buy orders should be still kept open as the impulsive structure to the upside might still unfold anytime. Currently, the market is in the corrective cycle, so additional buy limit orders might be set within the buying zone between the levels of 1.3094 - 1.2997. The SL orders should be placed below the level of 1.2836

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Technical analysis of EUR/JPY for June 02, 2016

Technical outlook and chart setups:

The EUR/JPY pair is seen to be trading at 122.20 levels after pulling back from 121.90 levels earlier. The wave structure indicates that the pair might be unfolding as an expanding triangle from 124.50 through 121.89 levels. It seems that it has completed its consolidation at the Fibonacci 0.786 support levels of the rally between 121.40 and 124.50 levels as depicted here. Therefore, bulls should be poised to remain in control till prices stay above 121.40 levels from here on. It is hence recommended to remain long from here, with risk at 121.40 levels. Immediate support is seen at 121.40 levels, while resistance is seen at 124.00 levels respectively.

Trading recommendations:

Remain long now, stop is at 121.20, target is 126. 50 levels.

Good luck!

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

Technical analysis of USDX for June 2, 2016

The dollar index has broken below the bullish channel. As expected, the dollar is weakening and sellers put pressure on the index. The price should continue lower over the coming days as a correction at current levels is justified.

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Blue lines - bullish channel

The Dollar index is testing short-term support by the Kumo (cloud) at 95.25. The 95.25-95 area is an important short-term support area, so a break below it will open the way for a move towards at least 94.40 where the 38% Fibonacci retracement of the entire rise is found.

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On the weekly chart, we see the weekly candle get rejected at the kijun-sen weekly resistance (yellow line indicator) as initially expected. This is an important support, and in order for dollar bulls to break above it, a pullback to gather strength is needed. The longer-term view remains bullish as long as the price is above 92. However, this is the place where bulls should cover their longs and protect themselves.The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of GBP/CHF for June 02, 2016

Technical outlook and chart setups:

The GBP/CHF pair is seen to be trading at 1.4250/55 levels after bouncing off 1.4175 lows during early hours today. The pair seems to have formed an interim support at 1.4175 levels but should be looking to drop lower from the current levels or from 1.4300 levels. Please note that 1.4300 levels is also fibonacci 0.382 resistance as depicted here. Also note that past resistance (wave 4 of one lesser degree) was also at 1.4268 levels, hence a bearish reversal from here is a high probability. The recommendation is to remain flat for now and look to sell higher on rallies. Immediate resistance is seen at 1.4300 levels while support is at 1.4175 levels respectively.

Trading recommendations:

Remain flat for now.

Good luck!

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Technical analysis of Gold for June 2, 2016

Gold is trading above the $1,200 level and near the $1,220 short-term resistance. The price is expected to make a strong bounce towards $1,260 at least. However we might first see a small decline and a new low near $1,190 before this bounce.

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Black trend line - resistance trend line

Blue lines - bearish channel

Red line - support trend line

Black lines - price projection

Gold is trading below the Kumo on the 4-hour chart and has also broken the red trend line support. This implies that we should continue lower to new lows. My target is between $1,200 and $1,190. However, it is not necessary to make a new low before bouncing towards $1,260 which is my medium-term target for the next few weeks.

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The weekly chart shows the price has paused the decline just above the 38% Fibonacci retracement. Is the entire correction over? We cannot know this yet but I feel we should start looking for long positions, especially if the price breaks below $1,200. My medium-term target is $1,260.The material has been provided by InstaForex Company - www.instaforex.com

Elliott wave analysis of EUR/NZD for June 2 - 2016

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Wave summary:

Despite all the disappointments, we remain optimistic in regard to this currency pair in the longer term. However, for the short term it looks as more corrective weakness should be seen towards 1.6248 before the corrective decline from 1.6931 is over. From 1.6248 or upon a break above 1.6487, renewed upside pressure is expected for a test of important short-term resistance at 1.6654, and a move above here will confirm that a low is in place for a rally towards 1.6931 and above.

Only an unexpected break below support at 1.6196 will make us very cautious, while a break below 1.6062 will invalidate the bullish view.

Trading recommendation:

Buy EUR at 1.6255 or upon a break above 1.6487 with a stop at 1.6195.

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

Technical analysis of Silver for June 02, 2016

Technical outlook and chart setups:

Silver is seen to be trading at $15.97 levels for now after bouncing off $15.81 levels yesterday. The metal now seems to have formed an intermediary low at $15.81 levels and is looking to rally from here. Please note that the metal has bounced off the fibonacci support/convergence around $15.80/16.00 levels as depicted here. Also note that the past resistance turned support is also passing through the same region. A bullish turn around from here remains a high probability, and hence the recommendation is to remain long now, with risk below $15.50 levels. Immediate support is seen at $15.80 levels, while resistance is at $16.55 levels respectively.

Trading recommendations:

Remain long, stop below $15.50 levels, target is open.

Good luck!

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

Elliott wave analysis of EUR/JPY for June 2 - 2016

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Wave summary:

Our view remain bullish as long as the low at 121.46 stays untouched. To indicate that a corrective low has been seen at 121.85, a break above minor resistance at 122.83 will be needed, while a break above resistance at 123.32 confirms the low and that a new impulsive rally is developing for a rally towards 124.19 on the way higher to important resistance at 126.47 and above.

Only an unexpected break below 121.46 will invalidate our bullish outlook and call for further decline towards the 118.75 - 119.15 area.

Trading recommendation:

We are long in EUR from 122.37 with stop placed at 121.45. If you are not long in EUR yet, then buy a break above 122.83 and use the same stop at 121.45.

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

Technical analysis of Gold for June 02, 2016

Technical outlook and chart setups:

Gold is seen to be trading at $1,214.00/15.00 levels at this moment. It may be looking to print one last low around $1,197.00 levels before turning bullish. The metal is looking to produce a countertrend rally after forming a base around $1,197.00 levels. On the flip side, the metal may push higher towards $1,235.00 levels before dropping lower. Structurally the metal needs to retrace the entire rally from $1,046.00 through $1,303.00 levels, hence it is recommended to sell on rallies through $1,235.00 and $1,250.00/60.00 levels from here. Immediate support is seen at $1,199.00 levels (interim), while resistance is seen through $1,240.00/50.00 levels respectively.

Trading recommendations:

Aggressive: Long now, stop at $1,190.00, target $1,250.00/60.00.

Conservative: Flat now. Sell around $1,250.00/60.00 levels, stop above $1,303.00, target is open.

Good luck!

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Daily analysis of major pairs for June 2, 2016

EUR/USD: Since Monday till now, the EUR/USD has been making some bullish attempt, which, however, pales into insignificance when compared to the current bearish outlook in the market. The bulls have gained 90 pips so far this week, but unless the price moves above the resistance line at 1.1300, the shallow rally would be taken as a short-selling opportunity.

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USD/CHF: The USD/CHF consolidated yesterday. The bulls are still willing to push the price northward, and there is a possibility that the resistance levels at 0.9950 and 1.0000 (a parity zone) would be tested. This is because the EMA 11 is above the EMA 56; though the Williams' % Range period 20 is in the oversold region. Today would determine whether the price would go upwards, or come downwards to invalidate the recent bullish bias.

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GBP/USD: A bearish signal has been generated on the GBP/USD, because a Bearish Confirmation Pattern has already formed on the 4-hour chart. After testing the distribution territory at 1.4700, the price has come down by almost 300 pips, testing the accumulation territory at 1.4400. Some fundamental figures are expected today, and they can have a huge impact on the markets.

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USD/JPY: This pair trended downwards on Wednesday – a serious threat to the current bullish outlook on the market. In case the price moves downwards by additional 100 pips, the bias would turn bearish, and the market would trend further downwards.

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EUR/JPY: Because of its decline, the EUR/JPY cross has had a Bearish Confirmation Pattern formed on it. The EMA 11 is below the EMA 56, while the RSI period 14 is below the level 50. It is possible for the price to reach the demand zones at 121.50 and 121.00. It is even possible for the price to go beyond those demand zones.

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Technical analysis of EUR/USD for June 02, 2016

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When the European market opens, some economic news will be released such as the Minimum Bid Rate, ECB Press Conference, French 10-y Bond Auction, and Spanish Unemployment Change. The US will release economic data too such as the Crude Oil Inventories, Natural Gas Storage, FOMC Member Powell Speech, Unemployment Claims, Challenger Job Cuts y/y, and ADP Non-Farm Employment Change. So amid the reports, EUR/USD will move with medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Breakout BUY Level: 1.1240.

Strong Resistance: 1.1234.

Original Resistance: 1.1223.

Inner Sell Area: 1.1212.

Target Inner Area: 1.1186.

Inner Buy Area: 1.1160.

Original Support: 1.1149.

Strong Support: 1.1138.

Breakout SELL Level: 1.1132.

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 June 02, 2016

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In Asia, Japan will release the Consumer Confidence, 10-y Bond Auction, and Monetary Base y/y. The US will release some economic data such as the Crude Oil Inventories, Natural Gas Storage, FOMC Member Powell Speech, Unemployment Claims, Challenger Job Cuts y/y, and ADP Non-Farm Employment Change. So there is a probability the USD/JPY will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Resistance. 3: 109.93.

Resistance. 2: 109.71.

Resistance. 1: 109.50.

Support. 1: 109.23.

Support. 2: 109.02.

Support. 3: 108.80.

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 NZD/USD for June 02, 2016

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Overview:

  • According to the previous events, the NZD/USD pair is still moving between the levels of 0.6773 and 0.6850. Overall, we still prefer the bullish scenario as long as the price is above the level of 0.6773. Currently, the price is moving in a bullish channel. This is confirmed by the RSI indicator signaling that we are still in a bullish trending market. The price is still above the moving average (100). Furthermore, if the NZD/USD pair is able to break out of the top at 0.6820, the market will rise further to 0.6893. On the other hand, if the price closes below the strong support of 1.4349, the best location for a stop loss order is seen below 0.6773, hence, the price will fall into a bearish trend in order to go further towards the strong support at 0.6730 to test it again. The level of 0.6730 will form a strong support on the H1 time frame. Additionally, if the pair fails to pass through the level of 0.6730, the market will indicate a bearish opportunity below the level of 0.6730. So, the market will decline further to 0.6674 in order to return to the double bottom.
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Technical analysis of USD/CHF for June 02, 2016

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Overview:

  • The USD/CHF pair continues to move downwards from the areas of 0.9954 and 0.9900. Yesterday, the pair dropped from the level of 0.9954 to 0.9860. Today, resistance is seen at the levels of 0.9954 and 0.9900. So, we expect the price to set below the strong resistance at the levels of 0.9955 and 0.9900; because the price is in a bearish channel now. Amid the previous events, the price is still moving between the levels of 0.9955 and 0.9860. Overall, we still prefer the bearish scenario as long as the price is below the level of 0.9860. In other words, buy orders are recommended below the spot of 0.9954 or 0.9900. Then, the pair is likely to begin a descending movement to 0.9844 and further to the 0.9811 levels. The level of 0.9811 will act as strong support, and the double bottom is already set at 0.9758 (61.8% Fibonacci retracement). On the other hand, the daily strong resistance is seen at 0.9955. If the USD/CHF pair is able to break out from the level of 0.9955, the market will rise further to 1.0000 today.

Intraday technical levels:

  • R3: 1.0049
  • R2: 0.9999
  • R1: 0.9972
  • PP: 0.9922
  • S1: 0.9895
  • S2: 0.9845
  • S3: 0.9818
The material has been provided by InstaForex Company - www.instaforex.com

Daily analysis of USDX for June 02, 2016

USDX is showing weakness on a short-term basis, as it's currently testing the 200 SMA price zone on the H1 chart. However, the next strong support can be found around the 95.22 level, which acted as a barrier for sellers during the May 23th session. If the greenback is able to resume the bullish bias, it can rally toward the 96.35 level.

USDXH1.png

H1 chart's resistance levels: 95.68 / 96.03

H1 chart's support levels: 95.22 / 94.62

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 96.03, and stop loss is at 95.32.

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

Daily analysis of GBP/USD for June 02, 2016

GBP/USD had a very weak session yesterday after posting new lows. Currently it's testing the support level of 1.4408. A rebound can be expected to re-test the resistance zone of 1.4464, but all the indicators on the H1 chart are pointing to the downside, as the 200 SMA is supporting that bearish scenario. A breakout below the 1.4408 level will open the doors to test the 1.4342 level, the lows from May 16th.

GBPUSDH1.png

H1 chart's resistance levels: 1.4464 / 1.4540

H1 chart's support levels: 1.4408 / 1.4342

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 1.4464, take profit is at 1.4540 and stop loss is at 1.4387.

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