NZD/USD Intraday technical levels and trading recommendations for June 10, 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, the recent bullish breakout is taking place above 0.6860.

As long as the NZD/USD pair keeps trading above 0.6860, further bullish advancement should be expected towards the price zone of 0.7150 - 0.7200 (the upper limit of the depicted channel).

Price action should be watched around the current price zone of 0.7150 - 0.7200 for a valid SELL entry if enough signs of bearish rejection is expressed.

On the other hand, 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.

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EUR/NZD analysis for June 10, 2016

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Recently, EUR/NZD has been moving downwards. As I expected, the price tested the level of 1.5839 in a high volume. Anyway, according to the daily time frame, I found a swing low from December 2015 at the price of 1.5835. The level of 1.5835 is on the test and selling looks very risky at this stage. I expect at least correction to the level of 1.6090. Watch for buying opportunities. Only if the price breaks critical support we may see downward continuiation.

Fibonacci Pivot Points:

Resistance levels:

R1: 1.6140

R2: 1.6225

R3: 1.6370

Support levels:

S1: 1.5850

S2: 1.5760

S3: 1.6620

Trading recommendations for today: Strong support is on the test. So, watch for buying opportunities.

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Gold analysis for June 10 , 2016

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Since our previous analysis, gold has been moving upwards. The price tested the level of $1,271.48 in a high volume. The trend is upward. According to the 30M time frame, I found a delta level at the price of $1,264.50. The level of $1,264.50 looks like a solid support. Watch for potential buying opportunities on the dips. The first take profit level is set at the price of $1,271.00. Anyway, if the price breaks the level of $1,264.50, we may see downward movement and potential testing of $1,257.20.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,271.55

R2: 1,274.90

R3: 1,280.35

Support levels:

S1: 1,260.70

S2: 1,257.00

S3: 1,251.40

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

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Technical analysis of NZD/USD for June 10, 2016

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Overview:

  • The NZD/USD pair movement was clear as it took place in an uptrend channel for a while. The trend showed signs of a bullish market. Amid the previous events, the price is still moving between the levels of 0.7053 and 0.710. The daily resistance and support are seen at the levels of 0.7053 and 0.6966 respectively. Hence, the NZD/USD pair is continuing to trade in a bullish trend from the new support level of 0.7053; to form a bullish channel. Besides, it should be noted major resistance is seen at 0.7217, while immediate resistance is found at 0.7150. Then, we may anticipate potential testing of 0.7150 to take place soon. Moreover, if the pair succeeds in passing through the level of 0.7150, the market will indicate a bullish opportunity above the level of 0.7150. A breakout of that target will move the pair further upwards to 0.7217. Buy orders are recommended above the area of 0.7053 with the first target at the level of 0.7150 ; and continue towards 0.7217. On the other hand, if the NZD/USD pair fails to break out through the resistance level of 0.7150; the market will decline further to the level of 0.6966.
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Technical analysis of USD/CHF for June 10, 2016

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Overiew:

  • The USD/CHF pair continues to move downwards from the 0.9699 level. This week, the pair dropped from the 0.9699 level, which coincides with the double top, to the bottom around 0.9566. The current price is seen at 0.9637. Today, the first resistance level lies at 0.9699 followed by 0.9759, while daily support 1 is found at 0.9564.
  • Additionally, the 0.9637 level represents a daily pivot point as it is acting as a key level today.
  • Amid the previous events, the USD/CHF pair is still in a downtrend, because it is trading in a bearish mode from the new resistance line of 0.9699 towards the first support level at 0.9637 in order to test it.
  • If the pair succeeds to pass through the level of 0.9637, the market will indicate a bearish opportunity below the level of 0.9637. So, sell again below the level of 0.9637 with the next objectives at 0.9503 and 0.9443.
  • However, if a breakout happens at the resistance level of 0.9700, then this scenario may be invalidated.
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Technical analysis of Silver for June 10, 2016

Technical outlook and chart setups:

Silver rose above $17.00 levels, as expected and discussed earlier and is seen to be stalling ahead of $17.30 levels at this moment. The metal should be looking to reverse lower from the current levels and push through $15.30 levels at least. The structure looks similar to that of Gold and the entire rally from $13.65 through $18.00 levels needs to be retraced before the rally could resume. The counter trend drop that began from $18.00 levels is set to push lower in its last leg, and terminate towards $15.30 levels. As an alternate though, the pair can retest $16.00 levels before turning bullish again. It is hence recommended to book profits on long positions taken earlier and turn bearish from here, with risk above $18.00 levels. Immediate resistance is seen at $18.00 levels, while support is at $15.75 (intermediary).

Trading recommendations:

Remain short from here, stop is above $18.00, target is $15.30 levels.

Good luck!

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Technical analysis of Gold for June 10, 2016

Technical outlook and chart setups:

Gold is seen to be trading at $1,267.00/68.00 levels at this moment, and it should set up to drop lower to complete the counter trend as depicted on the daily chart view. The structure indicates that the entire rally from $1,046.00 through $1,303.00 levels needs to be retraced before resuming the trend. The entire drop from $1,303.00 should unfold into 3 waves. The first and second waves seem to be complete at $1,271.00 levels yesterday. The third wave lower is expected to begin any moment and it should potentially drag prices towards $1,140.00/50.00 levels from here. It is hence recommended to remain short from here, with risk above $1,303.00 levels. Immediate resistance is seen at $1,290.00 levels, while support is at $1,200.00 levels respectively. Bears are expected to remain in control from here, till prices stay below $1,303.00 levels.

Trading recommendations:

Remain short from here, stop is above $1,303.00, target is $1,150.00 levels.

Good luck!

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Technical analysis of EUR/JPY for June 10, 2016

Technical outlook and chart setups:

The EUR/JPY pair is printing marginal lows since last few trading sessions as seen on the 4H chart view here. The pair dropped lower to 120.35 levels yesterday before pulling back higher and is seen to be trading at 120.90 levels. Please note that the pair is bouncing of the sloping triangle support trend line that connects April 2016 lows. The wave structure reveals that a highly probable wave setup should be on the north side from here. It is hence recommended to remain long now, with risk below 120.30 levels. Immediate support is seen at 120.30 levels for now, while resistance is at 122.50/60 levels respectively. Bulls are expected to remain in control till prices stay above 120.00 levels broadly.

Trading recommendations:

Remain long now, stop is below 120.30, target is open.

Good luck!

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Technical analysis of GBP/CHF for June 10, 2016

Technical outlook and chart setups:

The GBP/CHF pair is seen to be trading close to 1.3900 levels at this moment, after printing fresh lows at 1.3862 levels yesterday. Please note that the pair has dropped almost 800 pips since last few trading sessions. The Fibonacci 0.50 retracement levels proved to be quite a resistance for the pair and bears should remain in control from here on, till prices stay below 1.4600 levels. Also note that intraday/interday pullback rallies are possible towards 1.4300 levels but those should be considered as fresh opportunities to go short. It is recommended to take profits on short positions for now and wait for a counter trend rally to materialize. Immediate support is seen at 1.3800 levels, while resistance is at 1.4600 levels (intermediary).

Trading recommendations:

Please book profits on short positions taken earlier and look to sell again on rallies towards 1.4300/400 levels.

Good luck!

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USD/CAD intraday technical levels and trading recommendations for June 10, 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 (the Fibonacci Expansion 100%) occurred.

Bullish persistence above 1.4150 enhanced the bullish side of the market towards 1.4650 ( the 141.4% Fibonacci expansion) where an evident bearish rejection was expected (bearish engulfing weekly candlestick).

The 1.4120 level (the 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 (the 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.

That's why, On May 18, temporary bullish fixation above 1.3000 (the 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 (the 61.8% Fibonacci level) should be maintained to enhance enough bearish momentum in the market. Initial T/P levels should be located at 1.2770, 1.2650 then 1.2450.

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 10, 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 (the 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 June 2, 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 (the 61.8% Fibonacci level and the depicted downtrend line) stood as a significant supply zone, which offered many valid SELL opportunities over the past few weeks.

That's why, daily persistence below the level of 1.4480 is needed to enhance further bearish decline towards 1.4350 and 1.4220

Otherwise, the GBP/USD pair will remain trapped between the price levels of 1.4470 and 1.4700.

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Intraday technical levels and trading recommendations for EUR/USD for June 10, 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.

On the other hand, note that a monthly candlestick closure above 1.1400 invalidates this bearish outlook 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 1.000 levels. However, lack of enough bearish pressure was manifested by the end of last week's consolidations.

The recent bullish closure above 1.1200, enhanced further bullish advancement towards 1.1420 where the price action should be considered for a better SELL entry. S/L should be placed above 1.1470.

As anticipated, recent signs of bearish rejection are being expressed around the price level of 1.1400. Initial bearish target would be located around 1.1220 (recent key level).

On the other hand, 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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Elliott wave analysis of EUR/NZD for June 10, 2016

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Wave summary:

The break below important support at 1.6233 and more importantly below support at 1.6062 indicated that the correction from 1.9023 is over and more downside pressure towards 1.5003 is expected, before the next impulsive rally can begin.

Short term, we are looking for resistance near 1.6042 with back-up resistance at 1.6115 to protect the upside for the next part of the decline closer to 1.5693 as the next downside target.

Trading recommendation:

We missed the selling opportunity at 1.6150 and will try to sell at 1.6062 with stop place at 1.6286 expected to move the stop lower soon.

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

Elliott wave analysis of EUR/JPY for June 10, 2016

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Wave summary:

We have now seen an underthrow below the ending diagonal support line followed by a return back above the support line, which is a strong indication that the ending diagonal terminated at 120.28. We will now be looking for support at the ending diagonal support line near 120.60 for a break above minor resistance at 121.35 as a confirmation that the low is in place and a new strong rally to the ending diagonal resistance is currently at 123.40 and above is developing.

Trading recommendation:

We are long EUR from 120.85 with stop placed at 120.00. If you are not long EUR yet, then buy near 120.60 and use the same stop at 120.00

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Technical analysis of USDX for June 10, 2016

As we had expected the US dollar index reversed upwards. The weakness in the dollar did not continue so the dollar bulls still hope that a new uptrend have started. The reversal occurred right at the most important support and at the last minute.

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The dollar index reversed from the 61.8% Fibonacci as we had expected and now it is challenging the Kumo (cloud) resistance on the 4 hour chart. The price is above both the tenkan- and kijun-sen indicators. Support is at yesterday's lows at 93.40. Resistance is at 94.45 and 94.80.

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The weekly candle is reversing and price is entering the Ichimoku cloud once again. This is a reversal and bullish sign for the index. I remain bullish since yesterday when I first signaled that a reversal would occur very soon. If the long-term uptrend resumes, the dollar index should at least break above the recent high at 95.95 and eventually break above the weekly Kumo at 97.50.The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of Gold for June 10, 2016

Gold price continued its upward movement towards a new higher high at $1,272.50. The trend remains short-term bullish as long as price is above $1,257. Gold is expected to pull back towards $1,245 at least and then resume its upward move.

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Black line - long-term resistance (broken)

Red line - short-term support

Gold price is trading above the Kumo (cloud) confirming a short-term bullish trend. Price has also broken above the downward sloping black trend line resistance. Now I expect a pullback to test at least the 38% Fibonacci retracement.

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On the daily chart, gold price has broken out and above the Kumo. Today's candle looks like a back test candle to confirm breakout. I remain bullish and expect to see the price above $1,400. The medium-term stop for bulls is at $1,200. The long-term stop for bulls is at $1,045.The material has been provided by InstaForex Company - www.instaforex.com

Global macro overview for 10/06/2016

Global macro overview for 10.06/2016:

The New Zealand electronic card retail sales declined 0.3% in May from the seven-month high. According to the Statistics New Zealand,electronic card transactions rose 3.3% after a 7.8% increase in the 12 months through April. Electronic card transactions is a good measure of a monthly performance of New Zealand's retail sector, which has significant implications on consumer spending. When the electronic card transactions increase, then the consumer sentiment improves as people tend to think more optimistically about the economy. In conclusion, the consumer spending is critical to New Zealand's economy as it still struggles to gain the momentum despite the RBNZ rate cuts since 2015.

Let's now take a look at the GBP/NZD technical picture in the daily time frame. The downtrend from the August 2015 is obvious, but the current outlook is not that clear. Bulls managed to make a higher high at the level of 2.2000 and the price almost hit the 100 DMA. Nevertheless, they lost it again as the new marginal low was made shortly after the rally, putting bears back in control over the market. Please notice there is still unfilled gap at the level of 2.0630, so the bulls might try again to rally higher.

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Technical analysis of USD/JPY for June 10, 2016

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USD/JPY is expected to continue its rebound. On Thursday, US stock indices ended slightly lower as the afternoon rebound helped them pare some losses seen earlier in the session. The Dow Jones Industrial Average edged down 0.1% to 17,985, the S&P 500 declined 0.2% to 2,115, and the Nasdaq Composite was down 0.3% to 4,958. Losses in financial and material shares were partly offset by rallying utilities and telecom firms.

After gaining 5.4% in the prior three sessions, Nymex crude oil reversed course and shed 1.3% to settle at $50.56 a barrel. Gold added another 0.5% to $1,268 and silver rose 1.5% further to 17.28. The benchmark 10-year treasury yield dropped to 1.678%, the lowest closing level since February 11, from 1.706% on Wednesday.

The US dollar rebounded as the euro lacked upward momentum to push further above the 1.1400 level. EUR/USD fell 0.7% to 1.1314. At the same time USD/JPY stabilized and edged up 0.1% to 107.08 (a day low at 106.24), and GBP/USD was down 0.3% to 1.4457.

Most commodity-linked currencies were under pressure. USD/CAD snapped a losing streak of 4 straight sessions that cost 3.1% by rebounding 0.2% to 1.2719. AUD/USD lost 0.6% to close at 0.7427.

Although, NZD/USD once surged 2.0% up to 0.7146 earlier in the session yesterday, after the New Zealand's central bank surprised the market by holding its key interest rate unchanged at 2.25%, it ended at 0.7098. Overnight, the pair broke above a declining trend line initiated on June 7. Currently, it continues trading on the upside while being supported by the ascending 20-period (30-minute chart) moving average, which crossed above the 50-period one. Also the intraday relative strength index stays above the neutrality level of 50 suggesting upward momentum for the pair. The immediate resistance is found at 107.45 (a level of over-lapping support and resistance seen on June 7-8), and the next one at 107.95 (around the high of June 7).

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 107.45 and the second one at 107.95. In the alternative scenario, short positions are recommended with the first target at 106.35 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 106. The pivot point is at 106.65.

Resistance levels: 107.45, 107.95, 108.50

Support levels: 106.35, 106.00, 105.50

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Global macro overview for 10/06/2016

Global macro overview for 10.06/2016:

The US job market data surprised the market participants again as unemployment claims posted figures that are better than expected. According to the US Labor Department, initial unemployment claims fell to the level of 264k which is 5,000 less than the anticipated figure of 269K for the last week. Moreover, continuing claims declined as well to the level of 2095K from 2172K a week ago. This is an almost 16-year low in claims and it is clearly pointing to the strengthening of the US labor market despite poor NFP data revealed last Friday. In conclusion, despite the fact that in a separate report the US Labor Department revealed that May was the worst month for hiring in almost six years, an upward revision of last NFP number is highly anticipated next month, so the current job market situation might get even better. The Fed's policymakers will be closely watching next NFP data.

Let's now take a look at the US dollar Index technical picture in the 4H time frame. After a possible higher high was made at the level of 95.98, the market declined just below the 50 periods moving average and now bulls are trying to regain the control over this market. The bounce from the 61% Fibo at the level of 93.42 looks quite strong for now, but still bulls must rally higher in order to break out above the level of 95.21 and then 95.98.

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Technical analysis of USD/CHF for June 10, 2016

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USD/CHF is expected to trade with bullish bias and continue its rebound. The pair bounced off its horizontal support base around 0.9605, and it is likely to challenge its next resistance at 0.9690. Meanwhile, a bullish cross was identified between the 20-period and 50-period moving averages that suggests that a new rebound should continue. Besides, the relative strength index stays bullish above its neutrality area at 50. To sum up, as long as 0.9605 is not broken, there is a possibility of an advance to 0.9690 and 0.9715 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 0.9690 and the second one at 0.9715. In the alternative scenario, short positions are recommended with the first target at 0.9570 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 0.9530. The pivot point is at 0.9605.

Resistance levels: 0.9690, 0.9715, 0.9750

Support levels: 0.9570, 0.9550, 0.9530

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Technical analysis of NZD/USD for June 10, 2016

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NZD/USD is expected to trade in a higher range as a bias remains bullish. The pair stands firmly above its horizontal support at 0.7030, and is likely to post further advance. At the same time, the 50-period moving average is on the upside, which indicates that the prices may still have upside potential to go. Besides, the relative strength index is bullish above its neutrality area at 50, and lacks downward momentum. Hence, as long as 0.7030 holds on the downside, the intraday outlook stays positive with targets at 0.7150 and 0.7185 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 0.7150 and the second one at 0.7185. In the alternative scenario, short positions are recommended with the first target at 0.6980 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 0.6940. The pivot point is at 0.7030.

Resistance levels: 0.7185, 0.7230, 0.7285

Support levels: 0.6980, 0.6940, 0.69

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Technical analysis of GBP/JPY for June 10, 2016

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GBP/JPY is expected to trade in a lower range as the key resistance is at 155.55. The pair is posting a rebound but remains capped by its negative 50-period moving average. Meanwhile the relative strength index lacks upward momentum. As long as 155.55 holds as the key resistance, targets are seen at 153.60 and 152.60 as the next supports.

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 153.60 and the second one at 152.40. In the alternative scenario, short positions are recommended with the first target at 156.35 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 157.25. The pivot point is at 155.55.

Resistance levels: 156.35, 157.25, 158.75

Support levels: 153.60, 152.40, 151.75

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Technical analysis of EUR/JPY for June 10, 2016

General overview for 10/06/2016:

The count has been slightly changed after the wave (c) had made one more local low at the level of 120.30. Moreover, this level might be the bottom of the bigger time frame cycle labeled as wave C. If this scenario is correct, then the price should break out above the intraday resistance at the level of 121.33 in impulsive fashion and head towards the level of 122.74. On the other hand, if the price reverses at this level, then another lower low should be expected and the whole structure in wave (c) will be an ending diagonal pattern.

Support/Resistance:

120.31 - Intraday Support

120.56 - WS3

121.33 - Intraday Resistance

121.78 - Weekly Pivot

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 upwards.

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Technical analysis of USD/CAD for June 10, 2016

General overview for 10/06/2016:

The technical support is still preventing the price to rally higher towards the level of 1.2800. Once this level is violated, the market will enter the neutral zone as the growing bullish divergence between the price and momentum oscillator supports the view that an upside rally is the next possible wave development. The first confirmation comes with the intraday resistance at the level of 1.2721 breakout

Support/Resistance:

1.2653 - Intraday Support

1.2678 - 1.2700 - Projected Target For Wave X

1.2721 - Intraday Resistance

1.2825 - WS1

1.2984 - Weekly Pivot

1.3054 - WR1

1.3188 - Wave (i) High

1.3210 - WR2

Trading recommendations:

Day traders should keep an eye on the level of 1.2460 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 10, 2016

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When the European market opens, some economic news will be released such as Italian Industrial Production m/m, French Industrial Production m/m, German WPI m/m, and German Final CPI m/m. The US will release the economic data too such as Federal Budget Balance, Prelim UoM Inflation Expectations, and Prelim UoM Consumer Sentiment. So amid the reports, EUR/USD will move with low to medium volatility this session.

TODAY'S TECHNICAL LEVEL:

Breakout BUY Level: 1.1366.

Strong Resistance:1.1359.

Original Resistance: 1.1348.

Inner Sell Area: 1.1337.

Target Inner Area: 1.1310.

Inner Buy Area: 1.1283.

Original Support: 1.1272.

Strong Support: 1.1261.

Breakout SELL Level: 1.1254.

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 10, 2016

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In Asia, Japan will release the Tertiary Industry Activity m/m and PPI y/y. The US will also release some economic data such as Federal Budget Balance, Prelim UoM Inflation Expectations, and Prelim UoM Consumer Sentiment. So there is a probability the USD/JPY pair will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Resistance. 3: 107.73.

Resistance. 2: 107.52.

Resistance. 1: 107.30.

Support. 1: 107.04.

Support. 2: 106.83.

Support. 3: 106.62.

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/USD trading recommendations for 10th June, 2016

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AUD/USD reversed right below our stop loss of 0.7500 since our analysis on 8th June, 2016. This forms the head-and-shoulders reversal which is a very strong reversal pattern. Price has just crossed the neckline confirming the move and this lines up well with RSI crossing below its ascending support line. We expect to see a big correction here all the way down to 0.7365.

Trading recommendation:

Sell now

Take profit at 0.7365

Stop loss at 0.7470

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EUR/AUD trading recommendations for 10th June, 2016

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Price made a bounce and reached our first target of 1.5300 yesterday before retracing and forming a really nice inverse head & shoulders reversal pattern. This goes very well in line with our bullish exit from our RSI's channel signalling a good rise from here. If price surpasses 1.5300 (which is still our first target), we can expect a much bigger correction from here to the 1.5400 area.

Trading recommendations:

Entry now

Take profit at 1.5330

Stop loss at 1.5175

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Daily analysis of major pairs for June 10, 2016

EUR/USD: In the context of an uptrend, this pair experienced a pullback. The price went downwards yesterday by more than 90 pips, almost testing the support line at 1.1300. There is another support line at 1.1250, which ought to check further weakness in the market. It is possible that price would trend higher from here, which would mean that the bearish correction of yesterday was an opportunity to buy.

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USD/CHF: On Thursday, there was a shallow bullish effort on this pair; though the Bearish Confirmation Pattern on the 4-hour chart remains valid. Unless the price goes above the resistance levels at 0.9800 and 0.9850, any rallies here would be taken as short-selling opportunities. A further decline is a possibility.

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GBP/USD: This currency trading instrument is now choppy and there is no directional movement in the market, save short-term upswings and downswings, which could be misleading. However, a closer look at the market reveals that bears' hands are stronger than bulls' hands. Therefore, the market would likely go further down when there is a directional movement.

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USD/JPY: There is still a Bearish Confirmation Pattern on the USD/JPY 4-hour chart. The EMA 11 is below the EMA 56, and the RSI period 14 is below the level 50. No matter what the market does, the overall outlook is bearish and the price is expected to trend further south. The demand level at 106.50, which was tested last week, has also been tested this week. The price is expected to trend below that demand level, going further south.

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EUR/JPY: The bearish trend on the EUR/JPY cross is getting stronger and stronger. The price has tested the demand zone at 120.50, and it would retest the demand zone, breaking it to the downside, while targeting another demand zone at 120.00. This is expected to happen today or next week.

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Daily analysis of USDX for June 10, 2016

USDX made a rebound from the support zone of 93.50, and we should note that a breakout above the 93.89 level will put the Index inside a sideways range which should extend until the end of the week at least. Eventually, it may test the 200 SMA on H1 chart, where there is the last chance for sellers to resume the bearish trend.

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H1 chart's resistance levels: 94.30 / 94.63

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 10, 2016

The pair is still looking to trade lower below the 200 SMA, as the cable is struggling to push higher and its gains remain limited. A breakout is currently happening at the 1.4464 level and that would open the doors for more declines toward the 1.4402 level. By the way, we're still expecting some sideways price action this Friday at least.

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H1 chart's resistance levels: 1.4530 / 1.4649

H1 chart's support levels: 1.4464 / 1.4402

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 1.4464, take profit is at 1.4402 and stop loss is at 1.4528.

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