Intraday technical levels and trading recommendations for GBP/USD for June 6, 2016

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

However, 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 strong 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, on June 2, Lack of enough bearish pressure was manifested below the level of 1.4380. Hence, another bullish pullback is expressed towards the price level of 1.4470.

Note that any bullish closure above 1.4470 opens the way directly towards the next supply zone (1.4670-1.4700) where the 61.8% Fibonacci level is located.

In other words, the GBP/USD pair may become trapped between the price levels of 1.4470 and 1.4700 until breakout occurs.

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Intraday technical levels and trading recommendations for EUR/USD for June 6, 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 is 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.

On the other hand, note that 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. However, lack of enough bearish pressure was manifested by the end of last week's consolidations.

On the other hand, any bullish closure above 1.1200, enhances further bullish advancement towards 1.1400 where price action should be considered for a better SELL entry. S/L should be placed above 1.1450.

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 possible BUY entry. S/L should be placed below 1.0950.

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EUR/NZD analysis for June 06, 2016

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Recently, EUR/NZD has been moving upwards. The price tested the level of 1.6414 in an average volume. According to the 4H time frame, I found an evening-star formation, which is a sign that buying looks risky. Watch for potential selling opportunities on pullbacks. Take profit level is set at the price of 1.6230. If the price breaks the level of 1.6415, the evening-star formation will be invalid and the price may continue higher to test 1.6500.

Fibonacci Pivot Points:

Resistance levels:

R1: 1.6385

R2: 1.6425

R3: 1.6490

Support levels:

S1: 1.6255

S2: 1.6215

S3: 1.6150

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

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Gold analysis for June 06, 2016

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Since our previous analysis, gold has been moving upwards. The price tested the level of $1,248.54 in a high volume. According to the 5M time frame, I found upward pressure and successful testing of supply in a low volume. Watch for buying opportunities on dips. The trend is upward. Intraday take profit level is set at the price of $1,248.40. The second upward target is set at the price of $1,257.00.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,251.10

R2: 1,252.50

R3: 1,254.90

Support levels:

S1: 1,246.30

S2: 1,244.80

S3: 1,242.40

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

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Technical analysis of GBP/USD for June 06, 2016

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Overview:

  • The GBP/USD pair continues moving upwards from the level of 1.4363. Today, the first support level is currently seen at 1.4363, the price is moving in a bullish channel now. Furthermore, the price set above the strong support at the level of 1.4363. This support was rejected twice confirming the veracity of an uptrend. According to the previous events, we expect the GBP/USD pair to trade between 1.4363 and 1.4543. So, the support is found at 1.4363 while daily resistance is seen at 1.4543. Therefore, the market is likely to show signs of a bullish trend around the spot of 1.4363. In other words, buy orders are recommended above the spot of 1.4363 with the first target at the level of 1.4543. Additionally, if the GBP/USD pair succeeds to break through the resistance level of 1.4543, the market will rise further to 1.4702 so as to continue a bullish market this week. On the other hand, it would also be wise to consider where to place stop loss; this should be set below the second support of 1.4204.

The weekly technical analysis of the GBP/USD pair:

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Happy Ramadan 1437 (2016)!

  • I would like to wish a happy Ramadan for all Muslims around the world, faith replenishing, insightful and enlightenment.
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Technical analysis of EUR/USD for June 06, 2016

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Overview:

  • The EUR/USD pair faced strong resistances at the level of 1.1373 because this price represents a double top on the H1 chart. So, the strong resistance is already seen at the level of 1.1373 and the pair is likely to try to approach it in order to test it again. However, if the pair fails to pass through the level of 1.1373, the market will indicate a bearish opportunity below the new strong resistance level of 1.1373. Moreover, the RSI starts signaling a downward trend, but the trend is still showing strength above the moving average (100). Thus, the market is indicating a bearish opportunity below 1.1373 as long as the trend is not able to break the double top at the point of 1.1373. So it will be good to sell at 1.1370 with the first target of 1.1280. If the pair succeeds to pass through the level of 1.1280, the market will indicate a bearish opportunity below the level of 1.1280, in order to call for a downtrend in order to continue towards 1.1184. The weekly strong support is seen at 1.1184. However, the stop loss should always be taken into account. It will be reasonable to set your stop loss at the level of 1.1460.

Weekly technical levels:

  • R3: 1.1736
  • R2: 1.1554
  • R1: 1.1460
  • PP: 1.1278
  • S1: 1.1184
  • S2: 1.1002
  • S3: 1.0908

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Happy Ramadan 1437 (2016)!

  • I would like to wish a happy Ramadan for all Muslims around the world, faith replenishing, insightful, and enlightenment.
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Technical analysis of USDX for June 6, 2016

As we had expected, the Dollar index made a pullback through our first target of the 38% retracement and even reached the 50% Fibonacci retracement. The trend is bearish for the short-term.

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Blue lines - bullish channel

The bullish channel was broken from last week and we noted promptly that a correction was near and our first target was the 38% Fibonacci retracement. The dollar weakened amid a drop in NFP numbers announced on Friday. This caused a breakdown.

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The weekly candle reached the lower cloud boundary after being rejected by the kijun-sen (yellow line indicator). This rejection was noted and a warning was given to dollar bulls last week. A weekly close below and out of the cloud area will be a longer-term bearish signal. This will mean that the correction

is not ended at the 38% Fibonacci retracement of the rise from 2014, but could extend lower towards the 50% or even the 61.8% Fibonacci retracement.

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Technical analysis of Gold for June 6, 2016

As we expected gold price started a new trend after the Non-Farm payrolls announcement last Friday. In our previous analysis we noted that the downside potential was limited and a bounce towards the $1,250-60 area at least was expected. Gold price spiked upwards and gave a short-term buy signal.

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Blue lines - bearish channel (broken)

Black line - long-term resistance trend line

Gold price broke above the Kumo (cloud) resistance and the bearish channel on the 4-hour chart. However, the price remains below the long-term resistance trend line at $1,255. Following the bad NFP numbers announced last week, gold strengthened as the dollar weakened. Support is at $1,228. Resistance was formed at $1,255-60.

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As mentioned in the previous post, gold price was holding just above the 38% Fibonacci retracement. The price bounced strongly as expected and reached the tenkan-sen (red line indicator resistance). A weekly close above it will be a bullish signal. Overall gold price is bullish for the long-term as long as price is above $1,045. If we make a new high above $1,295 the critical support level will rise to $1,200. The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of USD/JPY for June 06, 2016

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USD/JPY is expected to continue its downside movement.On Friday, US stock indices posted only modest losses although the May jobs report came out as much weaker-than-expected. The Dow Jones Industrial Average declined 0.2% to 17,807, the S&P 500 fell 0.3% to 2,099, while the Nasdaq Composite was down 0.6% to 4,942. Financial shares took the biggest hit, while utilities attracted bids.

The market was stunned by the US Labor Department's report that nonfarm payrolls rose just 38K in May (vs +158K expected), the weakest growth since September 2010. And payrolls in April were revised down to +123K from +160K previously estimated. The jobless rate dropped to 4.7% in May (vs 4.9% expected), the lowest level since November 2007, from 5.0% in April as a large number of Americans gave up searching for work.

On top of the dismal May jobs report, the ISM non-manufacturing index fell to 52.9 in May, the lowest level since February 2014, from 55.7 in April. Investors therefore expected the U.S. Federal Reserve to have a hard time finding reasons to raise interest rates in the summer. As a result, the U.S. dollar slumped, the U.S. government bond yields dropped sharply, while precious metals saw heavy bidding.

Gold soared 2.8% to $1,244 an ounce, the biggest one-day gain since February 11. And silver was up 2.6% to $16.40 an ounce. At the same time, the US 10-year yield sank to 1.707% from 1.811% on Thursday. Meanwhile, Nymex crude oil lost 1.1% to settle at $48.62 a barrel.

Along with the slump in the US dollar on Friday, the ICE U.S. Dollar Index gave up 1.6%, the largest one-day drop since December 3, 2015, to settle at a 3-week low of 94.03.

EUR/USD rose 1.9% to 1.1365, the biggest one-day surge since December 3. The pair also shot back above its 20-day moving average that had been lost since May 13.

USD/JPY dived 2.2% to 106.51, the largest one-day loss since April 28. The pair given back most of its gains from the rebound from 105.52 (seen on May 3) to 111.43 (May 30).

At the same time, USD/CHF plunged 1.2% to 0.9755 losing its 200-day moving average, USD/CAD slid 1.2% to 1.2932, AUD/USD surged 1.9% to 0.7364, and NZD/USD soared 2.1% to 0.6954.

While GBP/USD managed to gain 0.7% to 1.4519 (one-day high at 1.4581) on Friday, the pair reversed course swiftly this morning, reaching down to 1.4350, as weekend polls on Britain's June 23 European Union membership referendum continued showing that people favored "Brexit". Currently, the pair is off Friday's close at 106.51 while trading around the 20-period (30-minute chart) moving average, which stands far below the 50-period one. Meanwhile the intraday relative strength index rose back to levels above 30, showing a temporary relief from heavy downside momentum seen on Friday. However, the pair is still below the key resistance at 107.95 (the 61.8% Fibonacci retracement from the low) and the intraday outlook remains bearish. In case the pair fails to gain upward momentum, it could decline further towards the immediate support at 105.70 (last seen on May 3).

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 106.40. A break of this target will move the pair further downwards to 105.70. The pivot point stands at 107.95. 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 108.50 and the second one at 109.10.

Resistance levels: 108.50, 109.10, 109.70

Support levels: 106.40, 105.70, 105

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Global macro overview for 06/06/2016

Global macro overview for 06/06/2016:

The Brexit fears have hit the British pound as the recent weekend poll in the United Kingdom revealed the Brexit possibility is getting momentum. The ITV poll showed that Brexit supporters are currently ahead of 45% to 41% and the TNS poll data showed 43% to 41% in favor of Brexit supporters as well. In conclusion,it is getting more and more clear, that June 23 referendum in Britain will throw global markets into turmoil and undermine confidence in the 28-nation trading bloc.

In the response to the latest polls, the GBP/USD pair slumped to a three-week low. So let's take a look at the technical picture of GBP/USD in the 4H time frame. The latest sequence of lower highs and lower lows might suggest that the top at the level of 1.4770 might be a long-term high for some period. This point of view will be confirmed when bears will push the market lower towards the 1.4298 level and violate it.

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Technical analysis of USD/CHF for June 06, 2016

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USD/CHF is expected to trade with bullish bias. The pair accelerated on the downside following the bearish penetration of its key horizontal level at 0.9850, and is currently challenging its next support at 0.9745. Furthermore, both the 20-period and 50-period moving averages are heading downward, and call for further decline. In addition, the relative strength index is badly directed below its neutrality area at 50. To conclude, a break below 0.9745 would trigger a drop towards 0.9695 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 0.9745 and the second one at 0.9695. In the alternative scenario, short positions are recommended with the first target at 0.9895 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 0.9925. The pivot point is at 0.9850.

Resistance levels: 0.9895, 0.9925, 0.9975

Support levels: 0.9745, 0.9695, 0.9625

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Global macro overview for 06/06/2016

Global macro overview for 06/06/2016:

The last Friday's US job market data was unexpectedly disappointing for global investors as the NFP Payrolls revealed the weakest figures in six years. According to the report, the non-farm payrolls advanced by a seasonally adjusted 38,000 for the previous month, strongly below expectations for an acceleration of about 160,000. Moreover, the April figures were revised down to 123,000 only. The only good data from the report came in a form of declined unemployment rate, which went down to 4.7%. In conclusion, the unexpected decline in NFP numbers has significantly decreased the possibility of a rate hike at the Fed meeting in June. According to CME Group FedWatch tool, the implied probability of June interest rate hike is at the level of 3.8% only.

Let's now take a look at the US Dollar index technical picture in the daily time frame after the NFP data was released. A clear sell-off can be seen here after the 100 DMA was hit and a possible higher high had been made. Currently, the market is trading at the support level of 93.80 and despite the recent possible higher high the bears seem to be still in control over this market.

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Technical analysis of NZD/USD for June 06, 2016

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NZD/USD is expected to trade with bullish bias above 0.6880. The pair bounced off its major horizontal support at 0.6835, and is currently challenging its nearest resistance at 0.6960. Even though a continuation of the consolidation cannot be ruled out at the current stage, its extent should be limited. Additionally, both the 20-period and 50-period moving averages are heading upwards and calling for further upsides as well. To sum up, as long as 0.6880 (the current 50-period moving average) is not broken, expect a new bounce to 0.6960 at first, and then to 0.6990.

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 0.6960 and the second one at 0.6990. In the alternative scenario, short positions are recommended with the first target at 0.6835 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 0.6795. The pivot point is at 0.6880.

Resistance levels: 0.6960, 0.6990, 0.67050

Support levels: 0.6835, 0.6795, 0.6735

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Technical analysis of GBP/JPY for June 06, 2016

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GBP/JPY is expected to prevail its downside movement. The pair was capped by a negative trend line and remains on the downside. Meanwhile the relative strength index stays below 50 and lacks upward momentum. As long as 155.90 is not broken above, target 152.55 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 152.55. A break of this target will move the pair further downwards to 151.35. The pivot point stands at 155.90. 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 157.25 and the second one at 158.75.

Resistance levels: 157.25, 158.75, 159.50

Support levels:152.55, 151.35, 150.75

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Technical analysis of USD/CAD for June 6, 2016

General overview for 06/06/2016:

The simple corrective structure has evolved into a WXY complex corrective pattern that is currently being developed in wave (ii). There is, however, a possibility that as long as the level of 1.2836 is not clearly violated, the current pattern might evolve into an even more complex WXYXXZ pattern, and this cycle will take even more time than the current one. On the other hand, only a clear, impulsive breakout above the wave (i) top at the level of 1.3188 will confirm the bottom for wave (ii) is in place and the market is developing wave (iii) to the upside.

Support/Resistance:

1.2825 - WS1

1.2836 - Green Count Invalidation Level

1.2910 - Intraday Support

1.2984 - Weekly Pivot

1.3054 - WR1

1.3074 - Intraday Resistance

1.3188 - Wave (i) High

1.3210 - WR2

Trading recommendations:

Day traders should keep an eye on the level of 1.2836 and place all SL orders for buy orders just below this level. The market is still in the corrective cycle, but buying the dips is the way to trade it now.

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

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Wave summary:

We continue to look for a corrective low for red wave ii. Our preferred count remains that an important low was seen at 1.6062 and a new larger impulsive rally is building. However, the rally of the 1.6062 waves has been overlapping, and the only impulsive wave that allows for overlapping waves is the leading diagonal. The decline in red wave ii from 1.6931 is also slow, and overlapping adds confidence in this being a corrective wave, so once the bottom is in place near 1.6200, a new impulsive rally is expected. To confirm this new impulsive rally, a break above minor resistance at 1.6510 is needed.

Trading recommendation:

We bought EUR at 1.6225 and will place our stop at 1.6100 for now.

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

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Wave summary:

The break below 121.46 calls for more downside pressure towards the 117.95 - 118.20 area before a long bottom for the corrective decline from 149.56 should be expected. That being said, the failure to build on the break below 121.46 could indicate that the potential downside potential is limited.

No matter whether a decline to the 117.95 - 118.20 area is seen or a low is seen before that, we must be aware that all requirements for the decline from 141.06 have been fulfilled, which means an important low could be found any time now.

However, to confirm that an important bottom is in place, a break above resistance at 124.19 will be needed, while a break back above minor resistance at 121.68 will indicate a failure break below 121.46 has been seen and will be the first indication of a possible bottom being in place already.

Trading recommendation:

We are looking for new buying opportunities and will buy EUR at 118.25 or upon a break above 121.68. If our buy order at 121.68 is triggered, our stop will be placed 5 pips below the most recent low.

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Technical analysis of EUR/JPY for June 6, 2015

General overview for 06/06/2016:

As anticipated last week, the wave C corrective cycle has developed to the downside and made a new local low. The pattern that unfolded in wave C is a zig-zag, so now the whole corrective structure on the bigger time frame might be completed as well. The market might be ready to change from the current wave progression to an impulsive one, but first it needs a breakout above the intraday resistance at the level of 121.89. Only if this level is clearly violated in an impulsive fashion, the bottom at the level of 120.81 will be confirmed as a long-term bottom.

Support/Resistance:

120.56 - WS3

120.81 - Intraday Support

121.78 - Weekly Pivot

121.89 - Intraday Resistance

122.74 - WR1

Trading recommendations:

Swing traders should close all their long-term swing orders as the market might be ready to establish a long-term bottom and reverse upward.

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Technical analysis of EUR/USD for June 06, 2016

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When the European market opens, some economic news will be released such as the Sentix Investor Confidence, Retail PMI, and German Factory Orders m/m. The US will release economic data too such as a speech by Fed Chair Yellen and the Labor Market Conditions Index m/m. So amid the reports, EUR/USD will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Breakout BUY Level: 1.1406.

Strong Resistance: 1.1399.

Original Resistance: 1.1388.

Inner Sell Area: 1.1377.

Target Inner Area: 1.1350.

Inner Buy Area: 1.1323.

Original Support: 1.1312.

Strong Support: 1.1301.

Breakout SELL Level: 1.1294.

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 06, 2016

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In Asia, Japan will not release any economic data today, but the US will release some economic data such as the Labor Market Conditions Index m/m and a speach of Fed Chair Yellen. So there is a probability the USD/JPY will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Resistance. 3: 107.22.

Resistance. 2: 107.02.

Resistance. 1: 106.81.

Support. 1: 106.55.

Support. 2: 106.34.

Support. 3: 106.13.

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

AUD/NZD Elliott Wave trading recommendations for 6th June 2016

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AUD/NZD broke a major support level previously, and its wave iv retracement is at a perfect 38% (fibonacci retracement). This gives us good confidence in a drop to 1.0500. The RSI has also reacted well below the 50% level giving us further confidence in the drop from here.

Trading recommendations:

Sell now, add to your position if the price rises to 1.0610.

Take profit at 1.0500

Stop loss at 1.0670

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

AUD/USD Elliott Wave trading recommendations for 6th June 2016

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The price reached our profit target on 3rd June 2016 completing the triple bottom bullish exit as expected and bouncing off our RSI ascending support perfectly.

Today we turn bearish because the price has reached the wave iv potential of 38% (fibonacci retracement), and we expect a drop from here towards 0.7225. The RSI has also dropped below it's key 71% resistance level with good downside potential to 0.7225.

Trading recommendation:

Sell now, add another position if the price rises to 0.7375.

Stop loss: 0.7500

Take profit: 0.7225

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Daily analysis of GBP/USD for June 06, 2016

Friday was a very volatile session for US Dollar pairs, but GBP/USD later retraced from gains and, it's now trying to consolidate again below the 200 SMA on the H1 chart. A bearish trend line from May 31th highs has been formed, and the Cable is doing a breakout of last week's lows after the recent polls released in early Monday's Asian session, which showed that the odds are favoring a possible exit of the United Kingdom from the European Union. If the pair extends the decline below the 1.4338 level, then it could test the 1.4278 level. Also, be cautious with a bearish gap left at the weekly opening.

It should be noted that before the Brexit referendum, uncertainty produced by the polls will drive mainly the GBP/USD moves, so it's recommended to follow the latest news about Brexit and to include them into the technical analysis for GBP/USD, in our case.

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H1 chart's resistance levels: 1.4408 / 1.4464

H1 chart's support levels: 1.4338 / 1.4278

Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the GBP/USD pair breaks a bearish candlestick; the support level is at 1.4338, take profit is at 1.4278 and stop loss is at 1.4398.

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

Daily analysis of major pairs for June 6, 2016

EUR/USD: This pair shot upwards on Friday, overturning the bearish outlook on the market. Since the price has moved upwards by 220 pips, a bullish signal has been formed. However, EUR needs to continue to be stronger than USD for this pair to continue moving upwards; otherwise things could reverse in favor of bears. After all, the outlook on EUR is bearish for the month of June.

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USD/CHF: The USD/CHF consolidated from Monday to Friday and then plummeted on Friday. The bearish movement was very serious – occurring opposite to the direction of the EUR/USD. Further bearish movement could cause the price to reach the support levels at 0.9700 and 0.9650 this week.

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GBP/USD: The Cable went up towards the distribution territory at 1.4700, where the further rally was halted as the price declined towards the accumulation territory at 1.4400. That was a 300-pip movement. Despite determined efforts from bears, the price was unable to go below the accumulation territory at 1.4400, and as such, there is a rally expectation on the GBP/USD. GBP pairs would move seriously this month – in bearish and bullish modes.

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USD/JPY: The USD/JPY dropped 450 pips last week, testing the demand level at 106.50. The next target to be reached is the demand level at 105.50, since there is a Bearish Confirmation Pattern in the market. There is also a possibility of bullish reversal this week.

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EUR/JPY: This cross tested the supply zone at 124.00 and then dropped by 300 pips last week. The price closed at 121.07 on Friday, just below the supply zone at 121.50. Further decline is possible, which might take the price towards demand zones at 120.50 and 120.00. There is also a possibility of a reversal this week.

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Daily analysis of USDX for June 06, 2016

USDX reacted negatively to the worse-than-expected NFP numbers released in the United States last Friday, and now it's already trading far below the 200 SMA on the H1 chart, favoring the bearish scenario on a short and mid-term basis. Support can be found around the 93.89 level, where a breakout should happen for another decline toward the 93.50 level.

USDXH1.png

H1 chart's resistance levels: 94.30 / 94.62

H1 chart's support levels: 93.89 / 93.50

Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the USD Index breaks with a bearish candlestick; the support level is at 93.89, take profit is at 93.50, and stop loss is at 94.28.

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