NZD/USD Intraday technical levels and trading recommendations for June 7, 2016

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

In February and March, signs of bearish rejection (triple-top reversal pattern) were expressed around the price level of 0.6750 until April when a bullish breakout above 0.6750 and 0.6860 was executed.

Later 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.

On May 30, obvious bullish rejection was expressed around the price level of 0.6675 (the lower limit of the depicted channel). That's why, a recent bullish breakout is taking place above 0.6860.

Currently, the price zone between 0.6760 - 0.6860 constitutes a significant support zone to offer bullish rejection and a valid BUY entry if a bearish pullback occurs soon.

As long as the NZD/USD pair keeps trading above 0.6860, further bullish advancement should be expected towards the price levels of 0.7050 and 0.7150.

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USD/CAD intraday technical levels and trading recommendations for June 7, 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.

The current bearish persistence below 1.3000-1.2970 (61.8% Fibonacci level) should be maintained to enhance more bearish momentum in the market. Initial T/P levels should be located at 1.2770 then 1.2650.

On the other hand, the price zone of 1.2400-1.2500 constitutes a significant support zone to be watched for possible BUY entries if enough bearish pressure is applied below 1.2650.

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Intraday technical levels and trading recommendations for GBP/USD for June 7, 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.

Bearish persistence below 1.4480 should be achieved to maintain 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 7, 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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Technical analysis of USD/JPY for June 07, 2016

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USD/JPY is expected to trade with bearish bias as Key resistance is at 107.95. Overnight U.S. stocks charged higher as rising oil prices boosted energy shares. The Dow Jones Industrial Average rose 0.6% to 17,920, the S&P 500 gained 0.5% to 2,109, the highest closing level since November 3, while the Nasdaq Composite was up 0.5% to 4,968. Nymex crude oil jumped 2.2% to $49.69 a barrel, the highest since July 21.

Gold edged up 0.1% to $1,245 an ounce, and the US 10-year yield climbed to 1.723% from 1.707% on Friday.

U.S. Federal Reserve Chairwoman Janet Yellen insisted that interest rates stay on the way up. "I see good reasons to expect that the positive forces supporting employment growth and higher inflation will continue to outweigh the negative ones...I continue to think that the federal funds rate will probably need to rise gradually over time to ensure price stability and maximum sustainable employment in the longer run," she said. She added that Friday's jobs report was disappointing but commented, "One should not attach too much significance to a single report."

Benefiting from the rise in oil prices, the Canadian dollar strengthened against the U.S. dollar, with the USD/CAD plunging another 0.9% to a three-week low of 1.2815.

The British pound continued to be weighed down by Brexit fears and GBP/USD declined 0.6% to 1.4436 (one-day low at 1.4350).

Meanwhile EUR/USD eased 0.1% to 1.1351, and USD/JPY rebounded 1.0% to 107.55, USD/CHF decreased another 0.5% to 0.9702, and NZD/USD was down 0.5% to 0.6917.

The Australian dollar was broadly flat at 0.7366 against the greenback. On Tuesday, the Reserve Bank of Australia will set its cash rate target, expected to stay unchanged at 1.75%.

The pair is encountering resistance at levels near to the key resistance at 107.95. It has dropped below the 20-period (30-minute chart) moving average and is seeking support from the 50-period one underneath. The intraday relative-strength index is below the neutrality level of 50 showing a lack of upward momentum for the pair. As long as 107.95 is not surpassed, the pair could return to the first downside target at 106.85.

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 106.85. A break of this target will move the pair further downwards to 106.40. 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: 106.85, 106.40, 105.70

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EUR/NZD analysis for June 07, 2016

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Recently, EUR/NZD has been moving downwards. As I expected, the price tested the level of 1.6273 in a high volume. According to the 4H time frame, I found another bearish engulfing pattern in a high volume. Be careful when buying EUR/NZD at this stage, since we may see futher downward continuation. Take profit level is set at the price of 1.6226 (previous swing low).

Fibonacci Pivot Points:

Resistance levels:

R1: 1.6420

R2: 1.6445

R3: 1.6490

Support levels:

S1: 1.6325

S2: 1.6295

S3: 1.6250

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

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Technical analysis of USD/CHF for June 07, 2016

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USD/CHF is under pressure. The pair failed to break above its horizontal resistance at 0.9780 on Monday, and it also remains capped by its descending 20-period and 50-period moving averages. Besides, the relative strength index is still negative below its neutrality area at 50, and calls for further downside. To conclude, as long as 0.9745 is not surpassed, look for a new pullback to 0.96350, and then to 0.9590.

Trading recommendation:

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 0.9635. A break of this target will move the pair further downwards to 0.9590. The pivot point stands at 0.9745. 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 0.9780 and the second one at 0.9810.

Resistance levels: 0.9780, 0.9810, 0.9895

Support levels: 0.9635, 0.9590, 0.9535

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Gold analysis for June 07 , 2016

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Since our previous analysis, gold has been moving downwards. The price tested the level of $1,236.30 in a high volume. According to the 30M time frame, I have found changes in the trend dynamic from bullish to bearish. There is a buying climax in the background and today I found no demand bars that is a sign that sellers are in control. Watch for selling opportunities on the pullbacks. I placed Fibonacci retracement to find potential downward targets. I got Fibonacci retracement 38.2% at the price of $1,232.85, Fibonacci retracement 50% at the price of $1,228.00, and Fibonacci retracement 61.8% at the price of $1,223.00.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,248.60

R2: 1,250.60

R3: 1,253.80

Support levels:

S1: 1,242.00

S2: 1,240.00

S3: 1,236.70

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

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Technical analysis of NZD/USD for June 07, 2016

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NZD/USD is expected to trade with bullish bias. The pair remains above its horizontal support at 0.6880, which should allow a temporary stabilization. Even though a continuation of the consolidation cannot be ruled out at the current stage, its extent should be limited. To sum up, as long as 0.6880 holds on the downside, the intraday outlook remains positive with targets at 0.6990 and 0.7020 in extension.

Trading recommendations:

The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. Therefore, long positions are recommended with the first target at 0.6990 and the second one at 0.7020. 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: 0.6990, 0.7020, 0.67050

Support levels: 0.6835, 0.6795, 0.6735

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Technical analysis of GBP/JPY for June 07, 2016

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GBP/JPY is expected to continue its rebound and trade above the trend line. The pair has continued its bounce and now it is trading within a bullish trend channel. The bias remains bullish and further upside is expected with 158.75 and 160.75 as targets.

Trading Recommendations:

The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. Therefore, long positions are recommended with the first target at 158.75 and the second one at 160.75. In the alternative scenario, short positions are recommended with the first target at 154.10 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 152.90. The pivot point is at 154.90.

Resistance levels: 158.75, 159.50, 160.75

Support levels: 154.10, 152.90, 151.35

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Technical analysis of NZD/USD for June 07, 2016

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Overview:

  • The NZD/USD pair is showing signs of strength following a breakout of the highest levels of 0.6908 - 0.6893. On the H4 chart, the level of 0.6908 coincides with the 61.8% of Fibonacci, which is expected to act as minor support today. Since the trend is above the 61.8% Fibonacci level, the market is still in an uptrend. But, major support is seen at the level of 0.6893. Furthermore, the trend is still showing strength above the moving average (100). Thus, the market is indicating a bullish opportunity above the above-mentioned support levels, for that the bullish outlook remains the same as long as the 100 EMA is headed to the upside. Therefore, strong support will be found at the level of 0.6893 providing a clear signal to buy with a target seen at 0.6973. If the trend breaks the minor resistance at 0.6973, the pair will move upwards continuing the bullish trend development to the level 0.7008 in order to test the daily resistance 2. Consequently, buy orders are recommended above the area of 0.6908 - 0.6893 with the first target at the level of 0.6973; and continue towards 0.7008.
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Technical analysis of USD/CHF for June 07, 2016

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Overview:

  • The USD/CHF pair fell from the level of 0.9699 to the bottom at 0.9650 yesterday. Today, the USD/CHF pair faced strong support at the level of 0.9637. So, the strong support has been already faced at the level of 0.9637 and the pair is likely to try to approach it in order to test it again and form a double bottom. For this reason, the USD/CHF pair continues to trade in a bearish trend below the new support level of 0.9637 to form a bearish channel. According to the previous events, we expect that the pair will move between 0.9699 and 0.9564 in coming hours. Also, it should be noted that major resistance is seen at 0.9759, while immediate resistance is found at 0.9699. Then, we may anticipate that potential testing of 1.9637 will take place soon. Therefore, if the pair succeeds in passing through the level of 0.9637, the market will indicate a bearish opportunity below the level of 0.9637. A breakout of that target will move the pair further downwards to 0.6554. Nevertheless, if a breakout happens at the resistance level of 0.9759, then this scenario may be invalidated

Comment:

  • The trend will become bearish in order to go further towards the strong support at 0.6554 to test it again. The level of 0.6554 will form a double bottom.
  • Resistance is seen at the levels of 0.9699 and 0.9759.
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Elliott wave analysis of EUR/NZD for June 7, 2016

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Wave summary:

We are still waiting for EUR/NZD to decline closer to 1.6169 to terminate the red wave ii and set the stage for a new strong rally higher. Only a direct break above minor resistance at 1.6510 will indicate that the red wave ii will have already terminated at 1.6206 and a new impulsive rally towards 1.6931 and 1.7220 is developing.

Trading recommendation:

We are long EUR from 1.6225 with stop placed at 1.6100 for now, but be ready to move the stop higher soon. If you are not long EUR yet, then buy near 1.6169 and use the same stop at 1.6100.

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Elliott wave analysis of EUR/JPY for June 7 - 2016

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Wave summary:

As we said yesterday, failure to build on the break below 121.46 could indicate that downside potential is very limited (bear-trap). It looks like an ending diagonal is developed and the break to 121.46 was the final low in this ending diagonal. If this count is correct, then a quick rally and break above the ending diagonal resistance line near 123.54 should be expected. If a break above the ending diagonal resistance line and more importantly a break above resistance at 124.19 can be seen so we will call for a quick return to the origin of the ending diagonal at 128.05 and more importantly call for the completion of the corrective decline from 149.56.

Short-term support is seen at 121.64 with back-up support at 120.80.

Trading recommendation:

We bought the EUR at 121.70 with our stop placed at 120.75. If you are not long on the EUR yet, then buy near 121.64 and use the same stop at 120.75

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Global macro overview for 07/06/2016

Global macro overview for 07/06/2016:

The Reserve Bank of Australia left the interest rate at the level of 1.75% yesterday, just as market participants had expected. The main reason for the RBA's decision was a robust first-quarter report of gross domestic product (GDP) for the January-March period that showed expansion by 3.1% on-year. Moreover, among other factors underlining the case for steady policy are oil prices that moved higher from their recent lows. The crude oil current price is oscillating around $50 per barrel, which is good news for energy exporting countries like Australia. In conclusion, there is no reason for the RBA to justify another urgent rate cut, but if the economic outlook deteriorate, further rate cut would be made to stimulate the economy.

Let's now take a look at the AUD/USD technical picture in the daily time frame. Since the recent low at the level of 0.7132 bulls took the control over the market and managed to move the price higher up to the level of 0.7412, just shy of the 200D MA at the level of 0.7480. The bullish rally is fueled by good economic news, but only a sustained breakout above the level of 0.7546 would change the medium-term outlook in their favour.

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Technical analysis of USDX for June 7, 2016

The Dollar index is trading around the 50% Fibonacci retracement after its sharp decline from last week's disappointing NFP numbers. The short-term trend is bearish, however, a move lower could put the larger trend in danger.

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The trend is bearish as long as the price is below the Ichimoku cloud. The stochastic and RSI are diverging on the 4-hour chart so we could soon see a bounce in the Dollar index. The next important support is the 61.8% Fibonacci retracement. Short-term resistance is at 94.30.

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The weekly candle is testing the weekly tenkan-sen (red line indicator) and the lower Kumo (cloud) boundary support. A break above the kijun-sen (yellow line indicator) will open the way for a push higher towards 98 at least. A weekly close below and out of the Kumo will be a bearish sign.

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Technical analysis of Gold for June 7, 2016

Gold is consolidating sideways and may be forming a bullish flag pattern. The price has stopped its rise right under the daily Ichimoku cloud resistance. I believe a major low is in place, and a new uptrend has started.

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Black lines - bullish flag pattern

This is a promising bullish flag pattern. If the price breaks above $1,248, we might see another explosive upward move towards $1,300. If support at $1,239 fails to hold, we should expect the price to pull back towards the 61.8% Fibonacci retracement of the rise near $1,223.

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On the daily chart, the price remains below the Ichimoku cloud after a bounce off the 38% Fibonacci retracement. The short-term trend is bullish while the medium-term trend is neutral as long as the price is below the Kumo (cloud). The long-term trend has reversed to bullish after the major low at $1,045.The material has been provided by InstaForex Company - www.instaforex.com

Global macro overview for 07/06/2016

Global macro overview for 07/06/2016:

In her yesterday's speech at the World Affairs Council of Philadelphia's luncheon, Federal Reserve Chair Janet Yellen almost confirmed that the policymakers will not hike the short-term interest rates at the June or July meeting. This is quite an important change from the latest remarks when Fed officials were almost convinced that at least two interest rate hikes will happen by the end of 2016. The reason for this change in tone from hawkish to dovish is possibly the latest NFP figures that came way below the market expectations. In conclusion, the chances for the Fed's interest rate hike are minimal and in response to that, we should see the US Dollar weakening over the coming weeks.

Let's now take a look at the EUR/USD technical picture on the 4H time frame. The bulls have managed to push the prices just above the 50% Fibo at the level of 1.1357, and now the price looks to be capped there. Please notice that the lower low in the sequence has been made as well, so if the bulls are too weak to break out above the swing high at the level of 1.1615, we might see a bearish trend continuation soon.

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Technical analysis of EUR/JPY for June 7, 2016

General overview for 07/06/2016:

As anticipated yesterday, the bottom for the wave C looks to have been found, and now the market might unfold an impulsive structure to the upside. The price is trading inside of the green bullish zone, and as long as the intraday support at the level of 121.87 is not clearly violated, the odds for another move upward are high. The confirmation of a bullish trend change comes with the level of 121.61 breakout.

Support/Resistance:

120.56 - WS3

120.81 - Intraday Support

121.78 - Weekly Pivot

121.89 - Intraday Support

122.74 - WR1

Trading recommendations:

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

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Technical analysis of USD/CAD for June 7, 2015

General overview for 07/06/2016:

The corrective cycle in wave (ii) retraced deeper than previously anticipated as the wave v is now rather close to the key zone between the levels of 1.2772 - 1.2754. Any breakout below this zone will invalidate the green bullish impulsive count. 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

1.2772 - Green Count Invalidation Level

1.2910 - Intraday Resistance

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 1.2772 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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Technical analysis of EUR/USD for June 07, 2016

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When the European market opens, some economic news will be released such as the Revised GDP q/q, French Trade Balance, French Gov Budget Balance, and German Industrial Production m/m. The US will release economic data too such as the Consumer Credit m/m, IBD/TIPP Economic Optimism, Revised Unit Labor Costs q/q, and Revised Nonfarm Productivity q/q. So amid the reports, EUR/USD will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Breakout BUY Level: 1.1417.

Strong Resistance: 1.1410.

Original Resistance: 1.1399.

Inner Sell Area: 1.1388.

Target Inner Area: 1.1361.

Inner Buy Area: 1.1334.

Original Support: 1.1323.

Strong Support: 1.1312.

Breakout SELL Level: 1.1305.

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

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Technical analysis of USD/JPY for June 07, 2016

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In Asia, Japan will release the Leading Indicators and 30-y Bond Auction, and the US will release some economic data such as the Consumer Credit m/m, IBD/TIPP Economic Optimism, Revised Unit Labor Costs q/q, and Revised Nonfarm Productivity q/q. So there is a probability the USD/JPY will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Resistance. 3: 107.94.

Resistance. 2: 107.73.

Resistance. 1: 107.52.

Support. 1: 107.26.

Support. 2: 107.05.

Support. 3: 106.84.

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

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AUD/USD Elliott Wave trading recommendations for 7th June 2016

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AUD/USD is starting to look good for a drop from here since our analysis yesterday. The RSI has formed a bearish divergence vs the price and gives us more confidence of a drop from here to 0.7225. We're also at a key fibonacci retracement level now.

Trading recommendations:

Sell now

Take profit at 0.7225

Stop loss at 0.7500

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AUD/NZD trading recommendation for 7th June 2016

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AUD/NZD is right on our stop loss level from yesterday forming a very bearish reversal candlestick pattern. We will raise our stop loss slightly to 1.0400 which is a fractal resistance level based on multiple fibonacci levels and play a position down to 1.0620 for a low-risk, high-reward trade. The RSI is also on a major resistance level.

Trading recommendations:

Sell now and add a position if the price reaches 1.0700.

Take profit 1.0620

Stop loss 1.0740

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Daily analysis of major pairs for June 7, 2016

EUR/USD: This pair simply went flat on June 6, but a closer look at the market reveals that bulls are still willing to push the market further upwards. Since there is a Bullish Confirmation Pattern in the market, the resistance lines at 1.1400, 1.1450 and 1.1500 would be tested as the price goes further upwards.

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USD/CHF: The USD/CHF traded lower on Monday, going below the resistance level at 0.9750. The price is now close to the support level at 0.9700, which would be broken to the downside as the price goes further downwards to another support level at 0.9650.

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GBP/USD: This currency trading instrument is quite choppy right now, though in the context of a downtrend. The EMA 11 is below the EMA 56, and the RSI period 14 is below the level 50. These are mixed signals, but it also means that when the price becomes predictable and directional again, it might be in favor of the bears.

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USD/JPY: The USD/JPY rallied by 100 pips on Monday – in the context of a downtrend. Further rally is possible, though there would be some opposition from bears. The bearish outlook on the market would be valid as long as the price does not go above the supply level of 109.50 (a situation that would require strong buying pressure).

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EUR/JPY: There was a rally yesterday, which moved the EUR/JPY cross pair above the demand zone at 122.00. Since the RSI period 14 is above the level 50, it is easy for the bias to turn bullish once the price goes above the supply zone at 123.50. However, bulls would meet a serious opposition on the way upwards; and in case they are not determined enough, they would be overpowered as the price declines further from there.

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Daily analysis of USDX for June 07, 2016

USDX is still forming a lower low pattern below the resistance level of 94.30 on the H1 chart, without major moves after the Fed's Yellen speech, during yesterday's session. The greenback could be looking to break the support level of 93.89, in order to extend the decline toward the 93.50 level. However, a corrective rebound should happen until the 94.62 level, only if the Index is able to break the 94.30 level.

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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.

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Daily analysis of GBP/USD for June 07, 2016

The cable found a bottom around the 1.4351 level after the recent polls that showed a small favoritism by the "Brexit" option, and it pushed the pair lower without filling the bearish gap in the weekly opening. Currently, GBP/USD is looking to fill that space, which coincides with the 200 SMA, where a pullback could happen to resume the overall bearish bias, respecting the bearish trend line plotted on the H1 chart.

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H1 chart's resistance levels: 1.4464 / 1.4530

H1 chart's support levels: 1.4408 / 1.4338

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 1.4408, take profit is at 1.4338 and stop loss is at 1.4479.

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Daily analysis of gold for June 06, 2016

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Overview

Gold price managed to touch our first target at 1,243.17 and closed above it last week, which opens the way to continue the bullish wave on the longer term basis. It can help to reach the previously recorded top at 1,303.58 as the next main target. The price needs to build good support base above 1,243.17 level to ease the mission of continuing the bullish trend the next target of which is located at 1,303.58. The expected trading range for today is between 1,230.00 support and 1,270.00 resistance.

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Daily analysis of Silver for June 06, 2016

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Overview

Silver price gained good profit last Friday, having reached the first target at 16.37. Currently, the price advances further, reinforcing the expectations of the continuation of the bullish trend on the longer term basis, especially after silver closed last week's trading above the mentioned level. Therefore, we believe that the way is open to head towards our next main target at 17.00. On the other hand, breaking 16.37 level and holding below it might push the price to visit areas around 15.87 before it attempts to decline again.

The expected trading range for today is between 16.15 support and 16.80 resistance.

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USD/CAD intraday technical levels and trading recommendations for June 6, 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.

The current bearish persistence below 1.3000-1.2970 (61.8% Fibonacci level) should be maintained to enhance more bearish momentum in the market. Initial T/P levels should be located at 1.2770 and 1.2650.

On the other hand, the price zone of 1.2400-1.2500 constitutes a significant support zone to be watched for possible BUY entries if enough bearish pressure is applied below 1.2650.

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