EUR/NZD analysis for June 17, 2016

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Recently, EUR/NZD has been moving sideways at the price of 1.5960. According to 30M time frame, I found a successful test of supply trendline. The trend is downward. My advice is to watch for selling opportunities since the price successful tested the supply trendline. The first take profit level is set at the price of 1.5840.

Fibonacci Pivot Points:

Resistance levels:

R1: 1.6015

R2: 1.6050

R3: 1.6120

Support levels:

S1: 1.5885

S2: 1.5845

S3: 1.5780

Trading recommendations for today: Watch for selling opportunities on pullbacks since I found a successful test of the supply trendline.

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Gold analysis for July 17, 2016

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Since our previous analysis, gold has been moving downwards. The price tested the level of $1,276.46 in a high volume. The trend is bullish. According to the 30M time frame, I found rounding bottom (saucer pattern) and also there is flat horizontal base. I found that the high volume value area from yesterday is at the price of $1,308.00. The level of $1,308.00 is the target profit for today.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,307.50

R2: 1.316.00

R3: 1,329.00

Support levels:

S1: 1,280.00

S2: 1,271.60

S3: 1,257.90

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

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NZD/USD Intraday technical levels and trading recommendations for June 17, 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 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 the current bearish pullback succeeds to push further below 0.7000.

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USD/CAD intraday technical levels and trading recommendations for June 17, 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 was 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.

A 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.

On May 18, temporary bullish fixation above 1.3000 (61.8% Fibonacci level) opened the way towards the 1.3180 level where significant bearish pressure was originated.

Bearish persistence below 1.3000-1.2970 (61.8% Fibonacci level) was needed to enhance more bearish momentum in the market.

However, On June 9, recent signs of bullish recovery was manifested around the price level of 1.2650.

The current bullish pullback towards the price level of 1.3000-1.3070 (61.8% Fibonacci level) should be considered for another SELL entry. S/L should be placed above 1.3120.

On the other hand, the price zone of 1.2400-1.2500 constitutes a significant support zone to be watched for 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 17, 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 June 7, the depicted long-term downtrend line came to meet the GBP/USD pair around the price zone (1.4475-1.4670).

Hence, significant bearish rejection and a strong bearish weekly candlestick were executed around the upper limit of it (1.4670 level).

As long as the GBP/USD pair keeps trading below the levels of 1.4670 and 1.4480, next bearish destinations will be located at 1.4100, 1.4050, and probably 1.3900.

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The price zone of 1.4678-1.4670 (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.

As anticipated, daily persistence below the level of 1.4470 enhanced further bearish decline towards 1.4350, 1.4220, and 1.4040.

For traders who missed the initial SELL entry around 1.4670, the price zone of 1.4380-1.4400 (recent supply zone) should be watched for another valid entry if any bullish pullback occurs soon.

On the other hand, the nearest demand level comes to meet the GBP/USD pair around 1.4040 where price action should be watched for a possible short-term buy entry. It's already running in profits today. T/P levels to be located at 1.4330, 1.4420 and 1.4470.

Currently, the price zone between 1.4330-1.4470 should be watched for a valid SELL entry if significant bearish rejection is expressed.

On the other hand, bearish persistence below 1.4040 allows a quick bearish decline towards 1.3845 (Prominent Demand Level that goes back to February 2016).

This is where a better BUY entry with a lower risk/reward ratio can be offered. S/L should be placed below 1.3800.

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Intraday technical levels and trading recommendations for EUR/USD for June 17, 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, recent 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.

Later on May 18, daily persistence below the levels of 1.1400 and 1.1200 was needed to ensure enough bearish momentum towards the 1.1100 and 1.1000 levels. However, lack of enough bearish pressure was manifested on June 1.

Hence, the recent bullish closure above 1.1200 enhanced further bullish advancement towards 1.1400 where evident signs of bearish rejection and a valid SELL entry were suggested. S/L should be lowered to 1.1320.

Currently, bearish persistence below 1.1220 (recent key-level) is needed to maintain enough bearish momentum towards 1.1000. Otherwise, the EUR/USD pair may remain trapped between the levels of 1.1200 and 1.1400.

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

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Technical analysis of NZD/USD for June 17, 2016

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Overview:

Amid the previous events, the price is still trading between the levels of 0.6915 and 0.7170. The NZD/USD pair movement was controversial as it took place in a narrow sideways channel for a while (approximately for five days). The market showed signs of instability. On the H1 chart, the daily resistance and support are seen at the levels of 0.6915 and 0.7170 respectively. In consequence, it is recommended to be cautious while placing orders in this area. Thus, we should wait until the sideways channel is completed. The price spot of 0.7170 remains a significant resistance zone. Subsequently, there is a chance that the NZD/USD pair will move to the downside. The fall structure does not look corrective. Resistance is seen at the level of 0.7170 today. So, sell below 0.7170 with the first target at 0.6965 to test yesterday's bottom.

In overall, we still prefer the bearish scenario as long as the price is below the level of 0.6965. Furthermore, if the NZD/USD pair is able to break out the bottom at 0.6915; the market will decline further to 0.6776. Nevertheless, stop loss should always be taken into account, accordingly, it will be of beneficial to set the stop loss above the last bullish wave at the level of 0.7170.

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Technical analysis of USD/CHF for June 17, 2016

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Overview:

  • The USD/CHF pair set above strong support at the level of 0.9557, which coincides with daily support 1. This support has been rejected for confirming uptrend veracity. Thus, major support is seen at the level of 0.9557 because the trend is still showing strength above it. Accordingly, the pair is still in the uptrend from the area of 0.9557 and 0.9571. The USD/CHF pair is trading in a bullish trend from the last support line of 0.9557 towards minor resistance level at 0.9666 in order to test the daily pivot point. This is confirmed by the RSI indicator signaling that we are still in the bullish trending market. Now, the pair is likely to begin an ascending movement to the point of 0.9666 and further to the level of 0.9755. The level of 0.9755 will act as the first resistance and the double top is already set at the point of 0.9775. At the same time, if a breakout happens at the support levels of 0.9557 and 0.957, then this scenario may be invalidated. But in overall, we still prefer the bullish scenario as long as the trend is still above the spot of 0.9557 and 0.957.

Intraday technical levels:

  • R3: 0.9953
  • R2: 0.9864
  • R1: 0.9755
  • PP: 0.9666
  • S1: 0.9557
  • S2: 0.9468
  • S3: 0.9359
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Technical analysis of Silver for June 17, 2016

Technical outlook and chart setups:

Silver has finally reversed from $17.75 levels yesterday as we expected. The metal did not exceed its resistance above $18.00 levels and hence looking at the wave counts, there is a high probability for an A-B-C correction. As labelled on the chart here, the metal might have just begun Wave C, which should unfold into 5 sub waves pushing prices lower towards at least $15.00 levels. As an alternate wave count (less probable), the metal could find support around $16.60 levels forming wave 2 of the presumed wave 3 (labelled). In either case, the metal is expected to produce a short-term correction and hence it is recommended to remain short from yesterday, with risk above $18.00 levels. Immediate resistance is at $18.00 levels (interim at $17.75 levels), while support is seen at $17.00 levels respectively.

Trading recommendations:

Remain short now, stop is above $18.00 levels, and target is at least $16.60.

Good luck!

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Global macro overview for 17/06/2016

Global macro overview for 17/06/2016:

The US consumer price index data was published yesterday and it slightly missed the expectations. According to the Labor Department, the CPI index advanced 0.2% in May after rising 0.4% in April.Moreover, on a yearly pace, CPI increased 1.0% after accelerating 1.1% in April. Nevertheless, the increase in housing and healthcare costs is still supporting inflation and this situation could lead the Federal Reserve to raise interest rates during the current year. In conclusion, the Fed is now nowhere near to its yearly inflation target at the level of 2% and a possibility of the immediate rate hike at the next Fed's meeting is rather low.

Let's now take a look at the EUR/USD technical picture in the daily time frame. The golden trend line is still providing the dynamic support for bulls as the market is trading inside the congestion zone between the 100 and 200 moving averages. To re-gain the control over the market, bears will have to break out below the important technical support at the level of 1.1098, making another lower low in the sequence.

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Technical analysis of Gold for June 17, 2016

Technical outlook and chart setups:

Gold has reacted with a huge bearish reversal as we expected yesterday. The metal is seen to be trading/drifting sideways between $1,276.00 and $1,282.00 levels respectively and should be looking to print one more low before producing a meaningful retracement higher. By all probabilities, the metal should remain below $1,315.00 levels at least for a short term. Looking at the wave counts, the metal might drop lower towards $1,242.00 levels, forming wave 2 (within wave 3 higher); or drop below $1,200.00 levels completing an extended flat A-B-C corrective drop as depicted here on charts. Otherwise, it is recommended to remain short from yesterday (no positions to be added at current levels), with risk above $1,320.00 levels. Immediate resistance is seen at $1,315.00 levels, while support is at $1,235.00/40.00 levels respectively. Short term rallies should remain capped below $1,315.00 levels from here on.

Trading recommendations:

Remain short from yesterday, stop is at $1,320.00, target is at least $1.240.00

Good luck!

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Elliott wave analysis of EUR/NZD for June 17 - 2016

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Wave summary:

There is no change in view here.

We are still looking for more downside pressure to 1.5604 to end the first impulsive decline in wave C. Once this first impulsive decline is in place, we should expect a minor correction back to 1.6095 before the price goes lower again towards 1.4700 in wave 3 of C. The ideal downside target for wave C is seen at 1.4472, from where a new rally is expected, but for now we should remain focused on the downside movement.

Trading recommendation:

We are short on the EUR from 1.6010 with our stop placed at 1.6025. We will place take profit at 1.5625. If you are not short on the EUR yet, then sell near 1.6010 and use the same stop.

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Elliott wave analysis of EUR/JPY for June 17 - 2016

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Wave summary:

Yesterday's decline extended more than we had expected and the low was not seen before 115.46. But the rally that followed this low, looks very promising. It is clearly a five-wave rally, which indicates that a low is in place and is likely to be a long-term corrective low that we have been looking for.

In a short term, we expect that support in the 116.46 - 116.77 area will be able to protect the downside for the next rally above the minor resistance at 117.48 and more importantly above resistance at 118.10 adding confidence to the low being in place at 115.46.

Thus, we have to be aware that wave two corrections often become very deep and are allowed to correct 100% from the first impulsive wave, but they can never break the starting point of the first impulsive rally.

Trading recommendation:

Our stop at 116.50 was hit, but we will be looking for a new buying opportunity at 116.50 or upon a break above 117.48 with stop placed at 115.40.

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Global macro overview for 17/06/2016

Global macro overview for 17/06/2016:

Yesterday, the Bank of England policy makers kept the benchmark interest rate at its record low of 0.5% together with the asset purchase facility at 375bln pounds. Moreover, the policy members voted 0-0-9, just as expected as well. Nevertheless, this data was overshadowed by the BoE fresh warning regarding the uncertainty about the EU referendum next week. The BoE claims that Brexit threats knocking Britain's economic growth, pushing the pound dramatically lower, as well as presents the "largest immediate risk" for global financial markets. If Britons were to vote to leave the world's largest trading bloc, the adverse effect could severely slow down the global economy, the BoE rate setters said. The officials again reiterated that Brexit could lead to inflation, which would increase largely on the back of a dramatic deprecation of the British currency, while the economic growth and labor market would suffer a blow from falling investments. In conclusion, the Brexit is not really welcomed by the BoE policy makers and the overall British economy.

Let's now take a look at the GBP/USD technical picture in the daily time frame. A hammer candlestick formation confirms that the technical support at the level of 1.4012 is the main support level for bulls as they are trying to test the next resistance at the level of 1.4322. Nevertheless, the market is still trading below the 55,100, and 200 DMA, so it could stay within this range until the national referendum results on the 23rd of June, 2016.

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Techncial analysis of EUR/JPY for June 17, 2016

General overview for 17/06/2016:

As it was anticipated yesterday, another lower low was made at the level of 115.50 and it was labeled as wave (a) of the wave Y. The internal corrective sub-wave have managed to retrace up to the level of 118.15 and it was labeled as wave (b). Currently one more wave down is being expected to complete the overall structure, but it is worth to mention that on the weekly time frame the 61%Fibo at the level of 115.50 was hit as well, so wave (c) might be an ending diagonal pattern.

Support/Resistance:

115.50 - Intraday Support

117.20 - WS3

118.15 - WS2

118.50 - Intraday Resistance

119.23 - WS1

120.95 - Weekly Pivot

122.02 - WR1

123.74 - WR2

Trading recommendations:

All swing traders should get ready to close their long-term sell orders as the market is approaching a possible reversal zone. Day traders and swing traders might consider opening buy orders from the current levels with tight SL and TP open for now.

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Techncial analysis of USD/CAD for June 17, 2016

General overview for 17/06/2016:

The five-wave impulsive structure has been completed and now the market is in corrective cycle. The current internal wave progression indicates a three-wave down zig-zag structure to develop shortly. The projected target for wave c of this correction is at the level of 1.2800. When the corrective structure is completed, then the uptrend should resume.

Support/Resistance:

1.2614 - WS1

1.2654 - Wave X Low

1.2800 - Weekly Pivot

1.2876 - Intraday Support

1.2940 - WR1

1.2982 - Intraday Resistance

1.3083 - Intraday Resistance

1.3122 - WR2

Trading recommendations:

All swing traders should get ready to close their long-term sell orders as the market is approaching a possible reversal zone.

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Technical analysis of USD/JPY for June 17, 2016

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USD/JPY is expected to trade with bearish bias. The pair continues its rebound from yesterday's low at 103.58 and it is challenging the key resistance at 105.00 (the 61.8% Fibonacci retracement from yesterday's low relative to a resistance at 106.00).On Thursday, U.S. stocks erased early losses to settle higher, snapping a losing streak covering the prior five sessions. The Dow Jones Industrial Average gained 0.5% to 17,733, the S&P 500 rose 0.3% to 2,077, and the Nasdaq Composite was up 0.2% to 4,844.

While Britain's June 23 referendum on whether to leave the European Union remains the most important factor that rattles markets, the situation has been complicated by the assassination of British Member of Parliament Jo Cox, a Labour Party lawmaker who had been supporting the "Remain" camp. Campaigning for the referendum has been suspended by both sides.

U.S. government debt kept rallying in price, sending the benchmark 10-year treasury yield to 1.563%, the lowest closing level since August 2012, from 1.594% on Wednesday.

Nymex crude oil fell for the sixth session plunging 3.7% to a one-month low of $46.21 a barrel. At the same time gold posted a roller-caster session as it surged 1.9% to $1,316 an ounce, the highest intraday level since August 2014, before crashing down to settle at $1,279, down 1.0% on day and ending a 6-day winning streak. Similarly, silver closed 2.0% lower at $17.15 an ounce after reaching as high as $17.86.

European stocks rallied in the last hour of trading with the Stoxx Europe 600 trimming loss to only 0.7%.

The U.S. dollar gave back most of its heavy gains against other major currencies, particularly the British pound and the euro, after the assassination of the U.K. lawmaker. GBP/USD, which was down 1.4% to 1.4010, ended broadly flat at 1.4201. EUR/USD surged from its one-day low of 1.1129 to close at 1.1223, down only 0.3% on day.

The Japanese yen surged yesterday as the Bank of Japan decided to stand pat on interest rates and offered no further easing measures to fight the surging currency and weakening inflation. USD/JPY slumped to a low of 103.58, the lowest level since August 2014, before settling at 104.24, down 1.7% on day.

Boosted by the strength of the greenback as well as the weakness of oil prices, USD/CAD reached a session high of 1.3085 yesterday before closing at 1.2966, up 0.4% on day. This morning, the pair turned to the downside and struggled to hold the 1.2900 handle.

Intraday technical indicators (20-, 50-period moving averages, relative strength index on a 30-minute chart) are positive suggesting a further rebound. A break above 105.00 would turn the intraday outlook bullish and call for a bounce toward the next resistance at 105.60 (a key support seen in June 14-16). However, if 105.00 is not surpassed, expect a return to 103.70 (around yesterday's low).

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 103.70. A break of this target will move the pair further downwards to 103.20. The pivot point stands at 105.00. 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 105.60 and the second one, at 106.00.

Resistance levels: 105.60, 106.00, 106.40

Support levels: 103.70, 103.20, 102.85

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Technical analysis of USD/CHF for June 17, 2016

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USD/CHF is expected to trade with a bullish bias above 0.9615. The pair reversed up and remains bullish above its horizontal support at 0.9615. Further upsides are likely to challenge the nearest resistance at 0.9685. Additionally, a bullish cross has been identified between the 20-period and 50-period moving averages. In addition, the relative strength index lacks downward momentum. Hence, as long as 0.9615 holds on the downside, the intraday outlook stays positive with targets at 0.9685 and 0.9705 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 0.9685 and the second one at 0.9705. In the alternative scenario, short positions are recommended with the first target at 0.9590 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 0.9570. The pivot point is at 0.9615.

Resistance levels: 0.9685, 0.9705, 0.9745

Support levels: 0.9590, 0.9570, 0.9530

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Technical analysis of NZD/USD for June 17, 2016

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NZD/USD is expected to trade in a lower range as the bias remains bearish. The pair failed to break above its horizontal resistance and overlap at 0.7085 after having tested it for at least two times yesterday. Meanwhile, a bearish cross has been identified between the 20-period and 50-period moving averages, which should call for further decline. To conclude, as long as 0.7085 is not surpassed, look for a new pullback to 0.7030 and then to 0.7005.

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 0.7005. A break below this target will move the pair further downwards to 0.6970. The pivot point stands at 0.7085. 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 0.7120 and the second one at 0.7150.

Resistance levels: 0.7120, 0.7150, 0.72

Support levels: 0.7005, 0.6970, 0.6940

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Technical analysis of GBP/JPY for June 17, 2016

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GBP/JPY is turning up and is expected to trade with a bullish bias. The pair has broken above the key resistance at 147.60 and is on its way to return to 149.50. It is currently trading above the 50-period moving average as the relative strength index stays above the neutrality level of 50. The intraday outlook has turned bullish, and the pair is expected to bounce toward 151.30 upon taking 151.30.

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 149.80 and the second one at 151.30. In the alternative scenario, short positions are recommended with the first target at 146.50 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 145.30. The pivot point is at 147.60.

Resistance levels: 149.80, 151.30, 152.35 Support levels: 146.50, 145.30, 144.25

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Technical analysis of EUR/USD for June 17, 2016

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When the European market opens, some economic news will be released such as the Italian Trade Balance, ECOFIN Meetings, Current Account, and a speech by ECB President Draghi. The US will release economic data too such as Housing Starts and Building Permits. So amid the reports, EUR/USD will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Breakout BUY Level: 1.1325.

Strong Resistance: 1.1319.

Original Resistance: 1.1308.

Inner Sell Area: 1.1297.

Target Inner Area: 1.1271.

Inner Buy Area: 1.1245.

Original Support: 1.1234.

Strong Support: 1.1223.

Breakout SELL Level: 1.1217.

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 17, 2016

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In Asia, today Japan will not release any economic data but the US will release some economic data such as Housing Starts and Building Permits. So there is a probability the USD/JPY will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Resistance. 3: 105.18.

Resistance. 2: 104.97.

Resistance. 1: 104.77.

Support. 1: 104.52.

Support. 2: 104.32.

Support. 3: 104.11.

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

USD/JPY Trading Recommendations for 17th June 2016

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The price has formed a double bottom pattern with the neckline at the 104.50 level. We look to buy from here to play a rise to the double bottom exit potential of 105.30. Stop loss is close to the previous swing low of 103.75.

The RSI has also crossed back above a previous strong support line showing signs of a potential recovery if it manages to hold above it. 105.30 is also a fibonacci retracement level of the recent move down.

Trading recommendations:

Entry now

Take profit at 105.30

Stop loss at 103.75

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NZD/USD Trading Recommendations 17th June 2016

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NZD/USD dropped perfectly as expected and hit our profit target before bouncing up again. Now we're looking to sell on strength closer to the 0.7100 level for a drop again to 0.6975. The stochastic (21) is reaching resistance once again, where we expect the price to drop off correspondingly.

0.7110 is a graphical resistance of the first wave i in close and 0.7110 is a 1.0 fibonacci projection of wave iv.

Trading recommendation:

Sell at 0.7100

Stop loss at 0.7150

Take profit at 0.6975

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

Daily analysis of major pairs for June 17, 2016

EUR/USD: The EUR/USD is in a bearish mode, but the market is quite volatile now. The price has reached a high of 1.1300 and a potential low of 1.1130. The EMA 11 is below the EMA 56 while the Williams' % Range period 20 is just moving out of the oversold region. The likelihood of the market going south is thus greater than the likelihood of it going north.

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USD/CHF: This market has moved only sideways from Monday till now – all in the context of a downtrend. This pair is quiet choppy right now, but it is essentially in an equilibrium phase. There is a need for the price to move upwards or downwards by over 300 pips before a directional bias can emerge.

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GBP/USD: The GBP/USD has fluctuated wildly this week but stays in the context of a downtrend. There is still a Bearish Confirmation Pattern on the 4-hour chart, which shows that bears remain in control in spite of bulls' desperation. For bears to prove their mettle, they need to push the price below the accumulation territory at 1.4000.

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USD/JPY: This currency has moved downwards by 300 pips this week, emphasizing the existing bearish signal in the market. The price is currently making attempt to trend sideways, but further directional movement is anticipated. The demand level at 103.50 would likely be tested today or next week – a target for bears before there could be any reversal.

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EUR/JPY: The EUR/JPY dropped by more than 400 pips this week, reaching the demand zone at 115.50. That demand zone could be the low of this week unless the price breaches it to the downside. We may witness some bullish attempts today, but the bearish outlook on the market is still a valid thing. So the bearish trend could resume next week.

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Daily analysis of USDX for June 17, 2016

USDX is being supported by the 200 SMA on the H1 chart, after it did a strong pullback around the 95.19 level, where it erased the gains made during yesterday's morning session. The Index's overall view remains bullish, as the major supports on an intraday basis are still in place. However, a downside continuation towards the 94.30 level cannot be discarded.

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H1 chart's resistance levels: 94.68 / 95.19

H1 chart's support levels: 94.30 / 94.07

Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the USD Index breaks with a bullish candlestick; the resistance level is at 94.68, take profit is at 95.19, and stop loss is at 94.16.

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

Daily analysis of GBP/USD for June 17, 2016

Yesterday was a very volatile day for USD pairs, and GBP/USD did a false breakout around the psychological level of 1.4100. Currently, it's hovering at the 1.4200 price zone, after it found strong resistance at the 1.4247 level. The price action is still favoring for downside, as the 200 SMA is still above, but the sideways trend is in place, and we could see some irregular moves during today's session, so it's not highly advisable to trade it at this stage.

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H1 chart's resistance levels: 1.4247 / 1.4327

H1 chart's support levels: 1.4171 / 1.4100

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 1.4171, take profit is at 1.4100 and stop loss is at 1.4247.

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