USD/CAD intraday technical levels and trading recommendations for June 3, 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 on May 18, temporary bullish fixation above 1.3000 (61.8% Fibonacci level) opened the way towards the 1.3180 level where significant bearish pressure was originated.

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 3, 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 is needed to enhance further bearish decline towards 1.4350 and 1.4220.

However, lack of enough bearish pressure was manifested below the level of 1.4380. Hence, another bullish pullback is being expressed above 1.4470.

Note that the GBP/USD pair may become trapped again between the price levels of 1.4480 and 1.4700 until breakout occurs.

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Intraday technical levels and trading recommendations for EUR/USD for June 3, 2016

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In January 2015, the EUR/USD pair moved below the major demand levels near 1.2100 where historical bottoms were previously set in July 2012 and June 2010. Hence, a long-term bearish target was projected towards 0.9450.

In March 2015, the EUR/USD bears challenged the next monthly demand level around 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. However, next monthly candlesticks (September, October, and November) reflected a strong bearish rejection around the area of 1.1400-1.1500.

In February 2016, 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.

A monthly candlestick closure above 1.1400 invalidates this scenario on the intermediate-term.

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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 levels of 1.1400 and 1.1200 was needed to ensure enough bearish momentum towards the 1.1100 and 1000 levels.

On the other hand, any bullish closure above 1.1200 (currently happening) enhances further bullish advancement towards 1.1400 where price action should be considered again.

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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Global macro overview for 03/06/2016

Global macro overview for 03/06/2016:

The US jobs market data in the form of NFP Payrolls is the main event of the day as all market participants are waiting for this news release at 12:30pm GMT today. The global investors are expecting another acceptable reading at the level of 159k vs. 160k reading a month ago. The unemployment rate should decrease to 4.9% from 5.0% a month ago as well. In conclusion, this key reading could help determine the course for interest rates in the world's largest economy. Currently, the FED policymakers are a little hawkish as they insist on at least two more rate hikes this year, but it is all data dependent.

Let's now take a look at the US Dollar index technical picture in the daily time frame ahead of the data release. Bulls managed to push the price up to the 100 moving average, making the first higher high in the sequence. Currently, the next resistance is seen at the level of 96.41. Any breakout above this level will possible make the golden trend line the next target for bulls.

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Global macro overview for 03/06/2016

Global macro overview for 03/06/2016:

Yesterday's ECB rate decision did not surprise market participants as all three main interest rates were left on hold in line with the majority of economists' expectations. The central bank's key interest rate, remains at a record low of 0%, while the deposit rate, in turn, will stay at minus 0.4%, which means that commercial banks continue to pay to park funds with the central bank overnight. Moreover, during the press conference, ECB president Mario Draghi revealed he is ready to act again if inflation doesn't pick up decisively, however, the need for patience is necessary as previously announced stimulus measures take effect. In conclusion, very calm and steady press conference outcome unveiled the ECB plans for actions to increase the inflation levels.

Let's now take a look at the EUR/USD technical picture after the ECB rate decision has been revealed. The resistance at the level of 1.1216 had capped the bull rally and now the market is trading below this level, just around the long-term down trend line. The next support is seen at the level of 1.1096.

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Technical analysis of EUR/JPY for June 3, 2016

General overview for 03/06/2016:

The projected target for the wave (c) of C was reached just as anticipated, so the overall structure might be now completed and the market might be ready to resume the long-term uptrend. To confirm this possibility, the price must breakout above the intraday resistance at the level of 121.89 and head higher in impulsive fashion.

Support/Resistance:

124.85 - WR3

124.65 - Wave (b) High

124.23 - WR2

123.42 - WR1

122.82 - Weekly Pivot

121.99 - WS1

121.89 - Intraday Resistance

121.48 - Black Impulsive Count Invalidation Level

121.40 - WS2

121.04 - Intraday Support

Trading recommendations

All sell orders hit the TP levels and they should now be closed with profit. More trading opportunities to occur shortly.

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Technical analysis of USD/CAD for June 3, 2016

General overview for 03/06/2016:

The corrective cycle is evolving into a more complex and time-consuming pattern, so more patience is needed. Nevertheless, the top of the wave (i) at the level of 1.3190 still hasn't been violated, but it is still possible for bulls to take this top out. 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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Gold analysis for June 03 , 2016

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Since our previous analysis, gold has been sideways at the price of $1,211.00. 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 an oversold level, which confirms the strength. Anyway, according to the 30M time frame, I found trading range between the price of $1,206.30(support) and the price of $1,217.50 (resistance). Watch for buying opportunities on dips with the first target at the price of $1,217.00.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,215.10

R2: 1,217.00

R3: 1,220.00

Support levels:

S1: 1,209.00

S2: 1,207.10

S3: 1,204.00

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

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EUR/NZD analysis for June 03, 2016

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Recently, EUR/NZD has been moving downwards. The price tested the level of 1.6248 in a high volume. According to the daily time frame, I found strong supply in the background in a high volume. Watch for selling opportunities on the pullbacks. Downward targets are set at the price of 1.6215 and 1.6100. According to the 30M time frame, I found strong downward trend and few up-thrust bars (sign of weakness continuation),

Fibonacci Pivot Points:

Resistance levels:

R1: 1.6470

R2: 1.6510

R3: 1.6570

Support levels:

S1: 1.6350

S2: 1.6315

S3: 1.6255

Trading recommendation for today: Watch for selling opportunities on the pullbacks.

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Technical analysis of NZD/USD for June 03, 2016

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Overview:

  • TThe NZD/USD pair faced resistance at 0.6850, while strong resistance is seen at 0.6893. Support is found at the 0.6770 and 0.6730 levels. Today, the NZD/USD pair continues moving downwards from the 0.6850 level. So, the 0.6850 level is expected to act as minor resistance. Moreover, the 0.6850 - 0.6893 mark remains a significant resistance zone. Thus, the trend will probably rebound again from the 0.6850 level as long as this level is not breached. Hence, we expect the NZD/USD pair to continue moving in the bearish trend from the 0.6850 level towards the target at 0.6773. In the long term, if the pair succeeds in passing through the 0.6773 level, the market will indicate the bearish opportunity below 0.6773 level in order to reach the second target at 0.6730 in the H4 time frame. On the other hand, if the NZD/USD pair fails to rebound from the area of 0.6850 - 0.6893, the market will move upwards continuing the development of the bullish trend to the level of 0.6938 (double top). But in overall, we still prefer the bearish scenario.
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Technical analysis of USD/CHF for June 03, 2016

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Overview:

  • As expected the USD/CHF pair continues moving downwards from the level of 0.9858. Yesterday, the pair rose from the level of 0.9858 (this level of 0.9858 represents double top) to the top around 0.9907. Today, the price is 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). So, the first resistance level is seen at 0.9922 followed by 0.9955, while daily support 1 is seen at 0.9895. According to the previous events, the USD/CHF pair is still moving between the levels of 0.9895 and 0.9955. We expect a range of 60 pips at least on the 3rd of June 2016. If the USD/CHF pair fails to break through the support level of 0.9895, the market will rise further to 0.9955. This would suggest a bullish market because the RSI indicator is still in a positive area and is not showing any trend-reversal signs. The pair is expected to climb higher towards at least 0.9955 with a view to test the double top. On the contrary, the trend will probably rebound again from the 0.9555 level as long as this level is not breached.
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Elliott wave analysis of EUR/NZD for June 3 - 2016

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Wave summary:

We have to admit that it has been a nightmare to track the correction lower from the 1.6931 high. So we have been back to the drawing board looking at the different scenarios. An important low was seen at 1.5813 and a new impulsive rally is building and if this count is correct, the important short-term support at 1.6104 must be able to protect the downside for a new rally above minor resistance at 1.6510 and more importantly above resistance at 1.6654 confirming renewed upside pressure.

If important support at 1.6104 is broken, the outlook shifts to a bearish one. This calls for more downside pressure towards 1.4950.

Trading recommendation:

Buy the EUR at 1.6225 and place stop at 1.6100.

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

Elliott wave analysis of EUR/JPY for June 3 - 2016

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Wave summary:

The break below important support at 121.46 told us that the corrective decline from 141.06 is not over yet and calls for more downside movement towards the 117.95 - 118.20 area before the long-term correction from 149.56 finally is over. Thus, we really do not feel very comfortable about the downside trend. The very complex decline from 141.06 with lots of overlapping waves is destined to terminate soon and once it does, it could trigger one stop-loss after another and cause a very speedy rally back to 141.06 and above.

In a short-term prospective, it will take a break above minor resistance at 122.60 to indicate that a low is in place, while a break above the resistance line near 124.19 will confirm the bottom and call for a rally towards 127.21 as the first larger hurdle on the way higher.

Trading recommendation:

Our stop at 121.45 was hit for a small loss. We are reluctant to join the downside trend as it seems very limited. Instead we will buy the EUR at 118.25 upon a break above 122.60.

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Technical analysis of USDX for June 3, 2016

The Dollar index is trading sideways near its highs inside a trading range of 96-95. With Non-Farm Payrolls announced today, I expect the index to break out of this trading range.

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Blue lines - bullish channel

The Dollar index has broken out and below of the bullish channel. The price reached cloud support and bounced back up to re-test the channel but the lower channel boundary is acting as resistance now and has stopped the rise of the index. Whatever the NFP number comes out, I believe it is more probable to see prices fall towards at least the 38% Fibonacci retracement.

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The weelky chart remains bullish but with the stochastic in the neutral area and the price hitting the kijun-sen (yellow line indicator) resistance, it is clear that a pullback is needed before bulls pick up some strength and try to push the index higher. So a pause to the uptrend is expected.The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of Gold for June 3, 2016

Gold is trading above the $1,200 area and has made a double bottom at $1,206. Breaking below this level will push the price towards $1,190. Upside targets are $1,230 and $1,260. We are close to a bullish reversal. Gold has already bottomed or is very close to making an important low.

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Black line - long-term resistance

Blue lines - bearish channel

Gold is trading inside the bearish channel. The upper channel resistance is at $1,230. This is also where the Kumo is found. The trend remains bearish but with several indications that we could soon see a bullish reversal. Non-Farm payrolls are announced today so we should expect the price to start a trend at the time of the announcement.

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The weekly candle remains above the 38% Fibonacci retracement, and the stochastic has fallen from overbought levels. The price remains above the weekly Kumo (cloud) and this area will possibly provide a bullish bounce towards at least $1,260. Even if the price breaks below $1,200, I will see this as an opportunity to buy.The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of USD/JPY for June 03, 2016

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USD/JPY is expected to trade in a bearish bias. Overnight, US stock indices recorded another stronger session while volumes remained muted. The Dow Jones Industrial Average rose 0.3% to 17838, the S&P 500 advanced 0.3% to 2105, and the Nasdaq Composite was up 0.4% to 4971. Healthcare, pharmaceutical and biotech shares were market leaders.

On the economic front, the ADP private payrolls in the US increased 173,000 in May (as expected, vs +166,000 in April). Meanwhile, all eyes are on May non-farm payrolls (vs +155,000 expected, +160,000 in April) and the jobless rate (expected to drop to 4.9% from 5.0%) to be reported Friday.

As expected, the European Central Bank left interest rates unchanged. President Mario Draghi stressed that further action will be taken if inflation remains below the target.

Nymex crude oil rebounded 0.3% to $49.17 a barrel, after it marked a day-low at $47.97 earlier in the session as OPEC members did not reach an output cap deal. Gold slid 0.2% to $1,210 an ounce, and the benchmark 10-year US treasury yield declined to 1.811% from 1.844% in the previous session.

In forex trading, the Japanese yen continued to strengthen against the US dollar following Prime Minister Shinzo Abe's plans to delay a sales tax hike and to unveil a fiscal plan. USD/JPY shed another 0.6% to 108.85 (day-low at 108.49), the lowest level in two weeks.

As the ECB provided no surprises, EUR/USD swung to a day-low of 1.1140 from a day-high of 1.1219 before ending the session 0.3% lower at 1.1149.

Meanwhile, the British pound showed signs of stabilization yesterday after plunging a combined 1.5% in the prior two sessions, with GBP/USD edging up 0.1% to 1.4422. The pair posted a rebound, which has brought it above the 20-period moving average (30-minute chart). Currently the pair is challenging the descending 50-period moving average. However, as long as the key resistance at 109.30 (a level of overlapping support and resistance) is not surpassed, the intraday outlook remains bearish, and the pair stands a high chance of retesting the first downside target at 108.50. Below that level the next support would be found at 108.20 (around the low of May 12).

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 108.50. A break of this target will move the pair further downwards to 108.20. The pivot point stands at 109.30. 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 109.70 and the second one at 110.15.

Resistance levels: 109.70, 110.15, 110.40

Support levels: 108.50, 108.20, 107.75

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Technical analysis of USD/CHF for June 03, 2016

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USD/CHF is likely to trade with a bullish outlook. The pair bounced off its major horizontal support at 0.9865 and is expected to post further advance. Additionally, the 20-period moving average has crossed above the 50-period one, calling for further upsides as well. As long as 0.9865 is not broken, we are positive and expect a new bounce to 0.99235 at first.

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 0.9935 and the second one at 0.9975. In the alternative scenario, short positions are recommended with the first target at 0.9830 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 0.98. The pivot point is at 0.9865.

Resistance levels: 0.9935, 0.9975, 1.0010

Support levels: 0.9830, 0.9800, 0.9740

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Technical analysis of NZD/USD for June 03, 2016

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It is expected that NZD/USD extends its upside movement as the bias remains bullish. The pair remains positive on an intraday basis. A strong support base at 0.6770 (since June 1) has formed and allowed for a temporary stabilization. Besides, a bullish cross is identified between the 20-period and 50-period moving averages. Further upside is therefore expected with the next horizontal resistance set at 0.6850 at first and then at 0.6870.

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 0.6850 and the second one at 0.690. In the alternative scenario, short positions are recommended with the first target at 0.6735 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 0.6705. The pivot point is at 0.6770.

Resistance levels: 0.6850, 0.69, 0.6950

Support levels: 0.6735, 0.6705, 0.6675

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

Technical analysis of GBP/JPY for June 03, 2016

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GBP/JPY is expected to trade with a bearish bias. The pair remains on the downside and is looking for a lower bottom. The relative strength index has been capped by a negative trend line since May 30 and lacks upward momentum. As long as 158.75 is not broken above, target 155.90 as the next support.

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

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

Technical analysis of EUR/USD for June 03, 2016

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When the European market opens, some economic news will be released such as the Retail Sales m/m, Final Services PMI, German Final Services PMI, French Final Services PMI, Italian Services PMI, and Spanish Services PMI. The US will release economic data too such as the Factory Orders m/m, ISM Non-Manufacturing PMI, Final Services PMI, Trade Balance, Unemployment Rate, Non-Farm Employment Change, and Average Hourly Earnings m/m. So amid the reports, EUR/USD will move with medium to high volatility during this day.

TODAY'S TECHNICAL LEVELS:

Breakout BUY Level: 1.1204.

Strong Resistance: 1.1198.

Original Resistance: 1.1187.

Inner Sell Area: 1.1176.

Target Inner Area: 1.1150.

Inner Buy Area: 1.1124.

Original Support: 1.1113.

Strong Support: 1.1102.

Breakout SELL Level: 1.1096.

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 03, 2016

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In Asia, Japan will release the Average Cash Earnings y/y, and the US will release some economic data such as the Factory Orders m/m, ISM Non-Manufacturing PMI, Final Services PMI, Trade Balance, Unemployment Rate, Non-Farm Employment Change, and Average Hourly Earnings m/m. So there is a probability the USD/JPY will move with medium to high volatility during this day.

TODAY'S TECHNICAL LEVELS:

Resistance. 3: 109.56.

Resistance. 2: 109.35.

Resistance. 1: 109.13.

Support. 1: 108.87.

Support. 2: 108.66.

Support. 3: 108.44.

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 AUD/NZD for June 03, 2016

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1.0590 is a major fibonacci projection level and also a graphical support level seeing how the price has bounced off it twice forming an impending double/triple bottom formation. This is in line with our AUD strength we're expecting (see AUD/USD analysis) as we expect a bounce from here. 1.0625 is the 23% fibonacci retracement (+ graphical resistance) and 1.0650 is the 38% retracement and graphical resistance.

Trading recommendations :

Buy now and add onto your position if the price drops to 1.0590 again. 1st take profit: 1.0625. 2nd take profit: 1.0650. Stop loss: 1.0550.

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

Technical analysis of AUD/USD for June 03, 2016

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The price has made a triple bottom bullish exit along with an exit on its bearish channel triggering a rise up to 0.7300. The RSI (34) is also on an ascending support line that supports our bullish view given how well the price has bounced off correspondingly on those levels.

Trading recommendations:

Buy now. Take profit at 0.7300. Stop loss at 0.7185.

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

Daily analysis of major pairs for June 3, 2016

EUR/USD: The price action on this pair reveals that it is logical to sell transitory rallies in the market. The outlook is bearish: the EMA 11 is below the EMA 56, and the Williams' % Range period 20 is sloping into the oversold region. This shows the presence of disgruntled bears, who are bent on pushing the price further south.

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USD/CHF: Bulls are yet to be pummeled on the USD/CHF. The EMA 11 is above the EMA 56; though the Williams' % Range period 20 is in the oversold region. This could be taken as a signal to go long when there is a short-term decline in the context of an uptrend.

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GBP/USD: This is a bear market. The price is below the accumulation territory at 1.4450, which has been tested and would be tested again. The price is expected to go below that accumulation territory, targeting another accumulation territory at 1.4350.

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USD/JPY: Just like the EUR/JPY, the USD/JPY also first moved around the supply level at 111.00. The price moved above that supply level briefly, but it could not stay above it. This was followed by a decline of 230 pips, which has essentially resulted in a Bearish Confirmation Pattern on the chart. More southward journey could take the price towards the demand levels at 108.00 and 107.50.

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EUR/JPY: The EUR/JPY made a rally attempt at the beginning of this week, reached the supply zone at 124.00 on Tuesday and then declined by 280 pips later in the week. There is a bearish bias on this market, and the price is supposed to continue going lower and lower. Right now, the price is below the supply zone at 121.50, and the next targets to be reached are the demand zones at 121.00 and 120.50.

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Daily analysis of USDX for June 03, 2016

The index recovered from Wednesday's losses and is now looking to do a consolidation back above the 200 SMA. It could break the resistance zone of 95.68. If a breakout happens above it, then we can expect another rally to possibly reach the 96.03 level, and the index could ride a bullish bias in coming days, but be aware of today's US NFP release.

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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 03, 2016

The pair is still finding support around the 1.4408 level, which remained solid after BoE Governor Carney's speech during yesterday's session, and eventually it could do a rebound toward the 1.4464 level. If a breakout happens above it, then it can rally to the 1.4540 level, where the 200 SMA on the H1 chart is located. The MACD indicator is entering negative territory, favoring further weakness.

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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

Daily analysis of Gold for June 02, 2016

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Overview

The gold price retested the previously breached resistance line of the falling wedge that met the key support at $1,205.80. The price succeeded to hold above this level rebounding bullishly in attempt to resume the bullish trend on an intraday and short-term basis. The price is supported by stochastic positivity that appears clearly on the four-hour time frame. Therefore, these factors make us still expect the bullish trend in the upcoming sessions, which targets begin at $1,243.17. A break of the $1,205.80 level will stop the positive scenario and put the price into the correctional bearish track again.

The expected trading range for today is between the $1,190.00 support and the $1,243.17 resistance.

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Daily analysis of Silver for June 02, 2016

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Overview

The silver price steadily fluctuates above the key support at 15.87. Stochastic heads upwards providing a positive factor that supports a rise continuation in the upcoming period. Therefore, our bullish overview will remain valid and active on an intraday basis. The first target is represented by testing the 16.37 level, a break of which represents the key to extend the bullish wave towards 17.00. The bullish bias will remain active unless breaking 15.87 levels and holding below it. The expected trading range for today is between the 15.80 support and the 16.40 resistance.

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

Technical analysis of USD/JPY for June 02, 2016

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USD/JPY is expected to trade with bearish bias. Overnight US stock indices managed to close with small gains after erasing losses earlier in the session. The Dow Jones Industrial Average added two points to 17,789, the S&P 500 rose 0.1% to 2,099, and the Nasdaq Composite was also up 0.1% to 4,952.

On the economic front, the ISM Manufacturing PMI rose to 51.3 in May (vs 50.3 expected) from 50.8 in April, and the Markit U.S. Manufacturing PMI edged up to 50.7 in May from the preliminary reading of 50.5. On the other hand, U.S. auto sales dropped 6% YoY to 1.54M vehicles in May, mainly due to two fewer selling days in the month.

Meanwhile investors are watching closing ADP employment report tonight and payrolls data tomorrow for clues about the next interest-rate rise by the Federal Reserve.

Nymex crude oil settled down 0.2% at $49.01 a barrel although it once went down to $47.75 in the session. Gold declined 0.2% to $1,212 an ounce, and silver continued showing weakness, being down 0.3% to $15.94 an ounce. The benchmark 10-year U.S. treasury yield edged up to 1.844% from 1.834% in the previous session.

On the forex front, the US dollar slumped against the Japanese yen yesterday as Japanese Prime Minister Shinzo Abe announced a delay of a planned sales-tax increase and called for a fiscal stimulus package to be passed. Investors took those comments as a signal of the Bank of Japan shifting away from monetary easing measures. USD/JPY plunged 1.1% to 109.52 (intraday-low is at 109.03).

The British pound remains under pressure as "Brexit" fears were reignited by recent poll results on Britain's June 23 European Union membership referendum. GBP/USD gave up another 0.4% to settle at 1.4414 yesterday.

And the Australian dollar surged up to 0.7299 against the greenback yesterday (from 0.7179 in the previous day) on Australia's stronger-than-expected Q1 GDP growth (+3.1% YoY vs +2.8% expected, +1.1% QoQ vs +0.8% expected). AUD/USD finally rose 0.4% to 0.7258.

At the same time, EUR/USD firmed up Wednesday, gaining 0.5% to 1.1185, as investors are keeping an eye on the European Central Bank's policy meeting Thursday night while the central bank is expected to maintain its monetary policy unchanged.The pair lost the 110.00 level yesterday before plunging swiftly down to 109.03. Currently, the latest rebound from the low has lost momentum, and the pair is trading below the 20-period (30-minute chart) moving average. The intraday relative strength index remains below the neutrality level of 50 lacking upward momentum. Therefore the intraday outlook continues to be bearish and the pair should return to the first downside target at 108.20. A break below this level would open a path towards the next support at 107.75.

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 108.20. A break of this target will move the pair further downwards to 107.75. The pivot point stands at 107.70. 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 110.15 and the second one at 110.40.

Resistance levels: 110.15, 110.40, 111

Support levels: 108.20, 107.75, 107.20

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Technical analysis of USD/CHF for June 02, 2016

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USD/CHF is expected to trade with bullish bias. The pair is accelerating on the upside and is looking for a higher top. Both 20-period and 50-period moving averages are rising and should play support roles. Thus, further upside is expected with the next horizontal resistance and overlap set at 0.9935. A break above this level would call for further advance towards 0.9975 and 1.0010 in extension.

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 0.9935 and the second one at 0.9975. In the alternative scenario, short positions are recommended with the first target at 0.9830 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 0.98. The pivot point is at 0.9855.

Resistance levels: 0.9935, 0.9975, 1.0010

Support levels: 0.9830, 0.9800, 0.9740

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Technical analysis of NZD/USD for June 02, 2016

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It is expected the upside movement of NZD/USD will prevail. The pair is above its nearest support at 0.6770, and it is expected to post a new rise. Meanwhile, both the rising 20-period and 50-period moving averages are playing support roles. Last but not the least, the process of higher highs and lows remains intact. Hence, as long as 0.6770 is not broken down, further upside movement is expected with the next horizontal resistance and overlap set at 0.6870 at first, and then, at 0.690.

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 0.6870 and the second one at 0.690. In the alternative scenario, short positions are recommended with the first target at 0.6735 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 0.6705. The pivot point is at 0.6770.

Resistance levels: 0.6870, 0.69, 0.6950

Support levels: 0.6735, 0.6705, 0.6675

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