Daily analysis of Gold for June 22, 2016

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Overview

The gold price confirmed a break of the 1,277.85 level after closing the daily candlestick below it, thus activating the negative effect of the triple top pattern that appears in the minor image. It places the price under temporary negative pressure that we expect to push the trading towards 1,243.17 before an attempt to regain the main bullish trend. We remind you that we are waiting for a bullish rebound after touching the mentioned target. The main positive targets are located at 1,303.58 and extend to 1,344.85. A break of the 1,243.17 level will push the price to suffer more losses than its next targets reach to 1,205.80. The expected trading range for today is between the 1,243.17 support and the 1,300.00 resistance.

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Daily analysis of Silver for June 22, 2016

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Overview

The silver price continues moving around the EMA50; and as long as it trades steadily above the key support 17.00, the positive scenario will be still valid until now and the price will be likely to test the recently recorded top at 18.00 as the first main station. Note that a break of 17.00 levels will make the price return to the correctional track again. The negative targets will begin at 16.37 before any new attempt to rise. The expected trading range for today is between the 17.00 support and the 18.00 resistance.

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Technical analysis of USD/CHF for June 22, 2016

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Overview:

  • As expected, the USD/CHF pair fell sharply from the level of 0.9639 towards 0.9570. Now, the price is set at 0.6615. The resistance is seen at the level of 0.6641 and 0.6581. Moreover, the price area of 0.9639 - 0.9699 remains a significant resistance zone. Therefore, there is a possibility that the USD/CHF pair will move downside; and the structure of a fall does not look corrective. The trend is still below the 100 EMA as the bearish outlook remains the same as long as the 100 EMA is headed downwards. For this reason, amid the previous events, the price is still moving below the levels of 0.9639 and 0.9699. If the USD/CHF pair fails to break through the resistance level of 0.9639, the market will decline further to 0.9564 as the first target. This would suggest a bearish market because the RSI indicator is still in a negative spot and does not show any trend-reversal signs. The pair is expected to drop lower towards at least 0.9503 so as to test the daily support 2. On the contrary, if a breakout takes place at the resistance level of 0.9699, then a stop loss should be placed at 0.9758.
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EUR/NZD analysis for June 22, 2016

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Recently, EUR/NZD has been moving sideways at the price of 1.5770. According to the 1H time frame, I found a descending triangle (continuation pattern) in creation. Be careful when buying EUR/NZD and watch for a potential breakout of the descending triangle. The breakout of 1.5740 in a high volume will confirm further downward continuation. The projected target from the descending triangle is set at the price of 1.5675. The major near-term target is set at the price of 1.5500.

Fibonacci Pivot Points:

Resistance levels:

R1: 1.5910

R2: 1.5950

R3: 1.6030

Support levels:

S1: 1.5750

S2: 1.5700

S3: 1.5620

Trading recommendations for today: Watch for selling opportunities if the price breaks support of the descending triangle.

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Technical analysis of NZD/USD for June 22, 2016

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Overview:

  • Movements of the NZD/USD pair were controversial as they took place in a narrow sideways channel; the market showed signs of instability. Amid the previous events, the price is still moving between the levels of 0.7169 and 0.7125. Also, it should be noted that the double top is seen at the price of 0.7169. Hence, the daily resistance and support are seen at the levels of 0.7169 and 0.7125, respectively. Currently, the price is in a bullish channel because yesterday the market came off its bottom at 0.7125 and continued to rise towards the top of 0.7169. Accordingly, the market is likely to show signs of a bullish trend. In other words, buy orders are recommended above 0.7125 with the first target at the level of 0.7169. If the trend breaks the double top at the level of 0.7169, then the market will continue rising towards the weekly resistance 2 at 0.7210. On the other hand, if the NZD/USD pair fails to break through the resistance level of 0.7169, the market will decline further to 0.7090. The pair is expected to drop lower towards at least 0.7066 with a view to test the weekly support.
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Gold analysis for June 22 , 2016

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Since our previous analysis, gold has been trading downward. As I expected, the price tested the level of $1,261.08 in a high volume. The analysis from yesterday is still active and it is a good progress so far. I found a massive sell-off in a heavy volume in the background, which is a sign that buying looks very risky and that selling opportunities are preferable. According to the 4H time frame, there is testing of Fibonacci expansion 100% at the price of $1,262.00. If the price breaks the level of $1,262.00 in a high volume, we may see further downward continuation and potential testing of $1,240.00.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,287.90

R2: 1.294.50

R3: 1,304.90

Support levels:

S1: 1,266.80

S2: 1,260.30

S3: 1,249.70

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

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USD/CAD intraday technical levels and trading recommendations for June 22, 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 had 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.

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 bearish momentum in the market.

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

The recent bullish pullback towards the price level of 1.3000-1.3070 (61.8% Fibonacci level) was considered for another SELL entry. It's already running in profits now. S/L should be lowered to 1.3000 to offset the associated risk.

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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NZD/USD Intraday technical levels and trading recommendations for June 22, 2016

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Bullish persistence above 0.6550 (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 is 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 (the upper limit of the depicted channel) for a valid SELL entry if significant 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 persists below 0.7000.

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Intraday technical levels and trading recommendations for GBP/USD for June 22, 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.

Hence, significant bearish rejection and a strong bearish weekly candlesticks were executed around the upper limit of it (1.4670 level) for many successive weeks.

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.

On the other hand, bullish fixation above 1.4670 brings further bullish advancement initially towards 1.4950 ( Inverted Head and Shoulders reversal pattern ).

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The price zone of 1.4670-1.4700 (61.8% Fibonacci level and depicted downtrend line) stood as a significant supply zone which offered many valid SELL opportunities over the past few weeks.

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

As anticipated, the depicted demand level around 1.4040 offered a profitable BUY entry. It is already running in profits today.

Currently, the price zone between 1.4670-1.4700 (61.8% Fibonacci level) should be watched for another valid SELL entry if significant bearish rejection is expressed (Yesterday's inverted hammer candlestick indicates bearish rejection).

Bearish persistence below 1.4470 will be needed to enhance further bearish decline towards 1.4200 and 1.4050. Otherwise, the bearish scenario will be invalidated for some time.

On the other hand, bullish persistence above 1.4670-1.4700 allows further bullish advancement towards 1.4950 initially.

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Intraday technical levels and trading recommendations for EUR/USD for June 22, 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 is why, recent bearish rejection was expected around the current price levels (note the previous monthly candlestick of May).

In the long term, 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 an intermediate-term basis.

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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, a lack of 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 previously suggested. That's why, temporary bearish breakdown of 1.1200 took place on June 16

However, evident bullish rejection around 1.1130 (depicted uptrend line) brought the EUR/USD pair above 1.1200 again.

Any bullish pullback towards the zone of 1.1400 should be watched for a valid SELL entry. S/L should be placed above 1.1460.

On the other hand, bearish persistence below 1.1220 (recent key level) is needed to maintain enough bearish momentum towards 1.1000.

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Global macro overview for 22/06/2016

Global macro overview for 22/06/2016:

The oil investors will watch for weekly U.S. crude inventory data releases by American Petroleum Institute at 08:30pm GMT. Market participants are expecting another draw in the stockpiles down to the level of -1500k from -933k a week ago. The reason for this might be investors' worries about the possibility of global crude supplies tightening due to the economic crisis in Venezuela. According to OPEC data, the output from Venezuela, one of the largest crude oil producers and exporters, which sits atop the world's biggest oil reserves, was 2.37 million barrels per day in May, down 5 percent from April and 11 percent from last year's average. In conclusion, the ongoing crisis in Venezuela and OPEC's inability to find an agreement regarding the output levels will drain the stockpiles even more and might increase the price of crude oil even further.

Let's now take a look at the crude oil technical picture in the 4H time frame. The sequence of higher high that was supporting the uptrend is now violated as the recent low at the level of 45.81 is a clear lower low. Nevertheless, bulls have managed to break out above the 100 and 200 moving average and even gapped up to the level of next technical resistance at the level of 50.19, showing the strength of the bull camp. For now only another higher high above the level of 51.65 might prove that bulls are still in control over this market, otherwise, the test of the recent lower low will come soon.

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Global macro overview for 22/06/2016

Global macro overview for 22/06/2016:

In her yesterday's speech, the Fed Chairperson Janet Yellen said that there is 'considerable uncertainty' in the US growth outlook. The overall outlook is still positive for the US economy, but there are certain factors that might seriously influence this view. One of these factors is a possible Brexit. Moreover, according to Yellen, the US economy is expected to reach full employment and its 2% inflation target within the next few years. She also said that the interest rates has not been raised yet mostly due to temporary disappointing readings from the US job market, but the Fed is closely monitoring the data and is ready to act if necessary. In conclusion, good old "wait and see" approach seems to continue for some time now.

Let us now take a look at the US Dollar Index technical picture on the daily time frame. Despite the higher high in place, the bull camp has not managed to make another higher high yet in order to change to trend direction. The market is still trading below the 55, 100, and 200 DMAs, but just above the important technical support at the level of 93.42. The next resistance is seen at the level of 95.34.

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Technical analysis of EUR/JPY for June 22, 2016

General overview for 22/06/2016:

As anticipated yesterday, the wave (b) top looks to be in place, so now there is only wave (c) to the downside left to complete the overall structure. Currently, the price is trading just around the weekly pivot at the level of 117.71, so to confirm this count the market should impulsively break out below the intraday support at the level of 117.30 and head towards the wave (a) bottom. On the other hand, any violation of the level of 119.46 would mean the bottom for the wave Y brown would be in place at the level of 115.48, and the current upward wave progression would be the beginning of a new impulsive structure.

Support/Resistance:

115.06 - WS1

115.48 - Local Low

117.30 - Intraday Support

117.72 - Weekly Pivot

119.46 - Intraday Resistance

119.94 - WR1

122.54 - WR2

124.18 - Wave X Top

Trading recommendations:

If the level of 119.46 is clearly violated, then all swing sell orders should be closed, because the market might be at the turning point, when the bigger time frame cycles had bottomed and a new, impulsive cycle to the upside might have started.

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Technical analysis of USD/CAD for June 22, 2016

General overview for 22/06/2016:

The growing bullish divergence between the price and momentum oscillator is indicating a possible sharp move upward, which supports the view about the upward trend renewal. The bottom for the wave c of the wave 2 seems to be in place, but the market might evolve into a more complex correction anyhow. Only a clear violation of the level of 1.2653 would invalidate the bullish view.

Support/Resistance:

1.2654 - Wave X Bottom

1.2678 - WS1

1.2762 - Intraday Support

1.2818 - 61%Fibo

1.2830 - Intraday Resistance

1.2860 - Intraday Resistance

1.2881 - Weekly Pivot

1.3015 - WR1

1.3080 - Wave 1 Top

Trading recommendations:

The first impulsive wave has been made after a long-term corrective cycle had bottomed, so the bias is to the upside. Buying the dips in this market with SL below the level of 1.2654 is the way to trade it now.

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Technical analysis of USDX for June 22, 2016

The Dollar index made a double bottom around the 93.35 area and bounced towards 94. The trend remains bearish for the short term after the bearish reversal we saw last week. An important resistance and trend change level is at 94.70.

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Red line - resistance

The UK referendum will certainly affect the price and rate expectations for the US. Volatility is expected to spike, and we expect to see big swings in prices. It is hard to predict the outcome of the referendum and thus what the index will do thereafter. Therefore, we prefer to stay neutral and in cash.

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On a weekly basis, the price got rejected at the lower cloud boundary, and this is a bearish sign. A huge weekly support is at the 92 price area, where we find the previous important weekly low and the 38% Fibonacci retracement. The result of the UK referendum will be a huge influence on what the index does, and it is best to wait until after the referendum to open positions to follow the trend.The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of Gold for June 22, 2016

Gold continued to move lower towards $1,260 yesterday after breaking below the support of $1,270-75. The trend is bearish as we have a medium-term reversal signal from last week implying that more downside should be expected. However, I prefer to stay in cash and not short the precious metal.

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Gold is testing the 4-hour cloud support and the 50% retracement after breaking down below the 38% Fibonacci support. The short-term trend is bearish with an important short-term top at $1,317 and an important reversal. A break below $1,225 will open the way for a test of the $1,200 lows.

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With a triple bearish divergence in the weekly stochastic, I remain neutral in Gold as I expect the price to continue the pullback towards at least the weekly tenkan-sen (red line indicator) at $1,255. However, depending on the UK referendum, we could even see a push lower towards $1.180-60. My longer-term view remains bullish targeting above $1,400-$1,500.

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Elliott wave analysis of EUR/NZD for June 22 - 2016

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Wave summary:

We continue to look for a test of support at 1.5604 before a relief rally back to 1.5955 and maybe slightly higher, but from here the next decline towards 1.4702 will be expected, with the ideal target for wave C seen at 1.4471.

In the short term, a break below minor support at 1.5709 should trigger a decline to 1.5604.

Trading recommendation:

Stay short and move stop lower to 1.5960; upon a break below 1.5709 move the stop lower to 1.5815. Place take profit at 1.5625. Wait to sell EUR again near 1.5955.

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Elliott wave analysis of EUR/JPY for June 22 - 2016

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Wave summary:

We continue to expect support at 117.30 will be able to protect the downside for a break above minor resistance at 117.97 and, more importantly, above resistance at 118.25 for upside acceleration towards 122.14 and likely higher.

If, however, support at 117.30 gives way, that will leave us with a three-wave rally from 115.46 and call for a re-test of this support and ultimately a break below.

Trading recommendation:

We are long in EUR from 117.50 with stop placed at 117.25. If you are not long yet, then buy near 117.45 and use the same stop at 117.25.

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EUR/JPY Technical Analysis for June 22, 2016.

Technical outlook and chart setups:

The EUR/JPY pair is seen to be trading lower today at 117.60 levels, looking to drop lower forming yet another low before turning bullish. Yesterday, we presented a long-term weekly chart setup, while today we will have a closer look on the 4H chart setup. The wave structure depicted here indicates that the pair is facing channel resistance at 118.50/119.00 levels and is expected to drift lower at least in the short term. Please note that the previous rally from 115.50 through 119.00 levels was corrective in nature (3 waves) and reversed from 119.00 levels (channel resistance). Therefore, the probability still remains for another low around 115.00 levels before turning bullish again. It is hence recommended to exit long positions and remain flat for now waiting for further clarifications on the chart. Immediate resistance is seen at 119.00 levels, while support is at 115.50 levels respectively.

Trading recommendations:

Exit long positions taken yesterday and please remain flat for now.

Good luck!

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Technical analysis of USD/JPY for June 22, 2016

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USD/JPY is expected to trade in a higher range as the bias remains bullish. The pair broke above the key resistance at 104.05 yesterday and climbed up to 105.05 before entering a consolidation. Currently, it is trading around the 20-period (30-minute chart) moving average, while the bullish bias is maintained by the ascending 50-period moving average. The intraday relative strength index is around the neutrality level of 50, showing a lack of downward momentum for the pair and a limited extent for the consolidation.

On Tuesday, US stocks posted small gains in a range-bound session with low volumes. The Dow Jones Industrial Average edged up 0.1% to 17829, the S&P 500 rose 0.3% to 2088, and the Nasdaq Composite was up 0.1% to 4843. Energy and technology shares were winners.

European stocks remained positive with the Stoxx Europe 600 advancing 0.7%.

US Federal Reserve Chairwoman Janet Yellen reiterated her optimistic view on the country's economy when speaking before the US Senate.

The benchmark 10-year US treasury yield rallied further to 1.699% from 1.670% Monday. Nymex crude oil declined 1.1% to $48.85 a barrel, while gold dropped 1.4% further to $1268 an ounce, and silver was down 1.2% to $17.27 an ounce.

On the forex front, as expectations stayed high of the UK voting to remain in the European Union in Thursday's referendum, the British pound ran up to a high of 1.4781 against the US dollar, a level last seen at the start of the year, before slipping and closing at 1.4645, down 0.3% compared to the prior session.

Meanwhile, EUR/USD declined 0.6% to 1.1240, and USD/JPY rebounded 0.8% to 104.73.

The New Zealand dollar rose to a one-year-high of 0.7169 against the greenback before settling at 0.7116, flat compared to the previous day. AUD/USD declined 0.2% to 0.7444, although it reached as high as 0.7512 in the session. In case the pair manages to take out the first upside target at 105.10 (around yesterday's high), it should bounce further toward 105.60 (a key support seen on June 14-15). Key support is set at 104.15.

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 105.10 and the second one at 105.60. In the alternative scenario, short positions are recommended with the first target at 103.70 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 103.20. The pivot point is at 104.05.

Resistance levels: 105.10, 105.60, 106.00

Support levels: 103.70, 103.20, 102.45

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Daily analysis of major pairs for June 22, 2016

EUR/USD: Following the gap-up that happened on Monday, the EUR/USD has come down by 120 pips, affecting the neutrality of the market. For a bullish bias to form, the price needs to go above the resistance line at 1.4000; and for a bearish bias to form, the price needs to go below the support line at 1.1150. This is what would bring a Bearish or a Bullish Confirmation Pattern.

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USD/CHF: This market is still in a sideways mode. The bias has become neutral in the short term and bearish in the medium term. There is a Bearish Confirmation Pattern on the 4-hour chart, and it is supposed that the price would continue its southward journey when a breakout occurs in the market. However, a serious bearish movement on the EUR/USD could cause the USD/CHF to rally.

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GBP/USD: The Cable is in a bullish mode – the price has gone upward by 300 pips since the beginning of this week. The distribution territory at 1.4750 has been tested before the current shallow bearish correction. Since the EMA 11 is above the EMA 56, and the RSI period 14 is above the level 50, it is possible for the price to go above the distribution territory at 1.4750. The worst thing that can happen this week is for the gap to be filled, i.e. the price moving below the accumulation territory at 1.4300.

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USD/JPY: This currency trading instrument merely moved sideways on Tuesday. There is going to be a breakout this week, which would most probably favor bears, since the outlook on JPY pairs remains bearish. The demand levels at 104.50 and 103.50 would be reached.

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EUR/JPY: There is a valid Bearish Confirmation Pattern on the EUR/JPY cross, though there is yet to be a strong movement this week. This cross might test the demand zones at 117.00, 116.00, and 115.50. The demand zones at 117.00 and 116.00 were tested last week, and they could be re-tested this week.

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Technical analysis of USD/CHF for June 22, 2016

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USD/CHF is expected to trade in a lower range as the key resistance is at 0.9630. The pair remains under pressure below its nearest horizontal resistance at 0.9630, which should limit the upside potential. Even though a continuation of the technical rebound cannot be ruled out, its extent should be limited. In conclusion, as long as 0.9630 holds on the upside, the pair is likely to return to its June 20 low at 0.9570, and then to 0.9545.

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 0.9570. A break below this target will move the pair further downwards to 0.9545. The pivot point stands at 0.9630. 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 0.9660 and the second one at 0.9685.

Resistance levels: 0.9660, 0.9685, 0.9705

Support levels: 0.9570, 0.9545, 0.9500

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Technical analysis of NZD/USD for June 22, 2016

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NZD/USD is expected to trade with a bullish bias above 0.7095. The pair remains on the upside. A support base at 0.7095 has formed and allowed for a temporary stabilization. Even though a continuation of consolidation cannot be ruled out at the current stage, its extent should be very limited before a new bounce. In this case, as long as 0.7095 is not broken, further upside is expected with the next horizontal resistance and overlap set at 0.7170 and 0.7200 in extension.

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 0.7170 and the second one at 0.72. In the alternative scenario, short positions are recommended with the first target at 0.7075 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 0.7035. The pivot point is at 0.7095.

Resistance levels: 0.7170, 0.72, 0.7245

Support levels: 0.7075, 0.7035, 0.7005

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Technical analysis of GBP/JPY for June 22, 2016

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GBP/JPY is expected to trade in a higher range as there is bullish bias above 151.85. The pair stays above its support base at 155.85 and the relative strength index lacks downward momentum. Further bounce is expected with 155.10 and 156.30 as targets. However, if the pair turns down and breaks below the horizontal support at 151.85, it would open the way to further drop toward 150.80 and 149.80 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 155.10 and the second one at 156.30. In the alternative scenario, short positions are recommended with the first target at 150.80 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 149.80. The pivot point is at 151.85.

Resistance levels: 155.10, 156.30, 157 Support levels: 150.80, 149.80, 148.10

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Technical analysis of EUR/USD for June 22, 2016

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When the European market opens, some economic news will be released such as the Consumer Confidence, Long Term Refinancing Option, and German 30-y Bond Auction. The US will release economic data too such as Crude Oil Inventories, Existing Home Sales, Fed Chair Yellen Testifies, and the HPI m/m. So amid the reports, EUR/USD will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Breakout BUY Level: 1.1302.

Strong Resistance: 1.1296.

Original Resistance: 1.1285.

Inner Sell Area: 1.1274.

Target Inner Area: 1.1248.

Inner Buy Area: 1.1222.

Original Support: 1.1211.

Strong Support: 1.1200.

Breakout SELL Level: 1.1194.

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 22, 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 Crude Oil Inventories, Existing Home Sales, Fed Chair Yellen Testifies, and the HPI m/m. So there is a probability the USD/JPY will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Resistance. 3: 104.51.

Resistance. 2: 104.31.

Resistance. 1: 104.10.

Support. 1: 103.85.

Support. 2: 103.65.

Support. 3: 103.44.

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

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

GBP/CHF Technical Analysis for June 22, 2016.

Technical outlook and chart setups:

The GBP/CHF pair is seen to be trading at 1.4110 levels at this moment, looking to continue pushing lower. Please note that the pair has formed a bearish evening star candlestick pattern on the 4H chart view yesterday, indicating a potential bearish move ahead. Also, the short rally from 1.4020 through 1.4130 levels seems to be a pullback, so the pair should accelerate lower from here. Looking into the structure, the pair seems to have completed its 3 wave corrective rally that began from 1.3500 levels yesterday and should resume its down move from here on. It is hence recommended to remain short with risk above 1.4350 levels. Immediate support is seen at 1.4022 levels, while resistance is at 1.4200 levels respectively.

Trading recommendations:

Remain short now, stop above 1.4350, target below 1.3500.

Good luck!

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

EUR/USD Trading Recommendation (1 week view) for 22nd June 2016

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EUR/USD is in a strong ascending channel and is close to pullback support. We can see strong support on the RSI (21), too, showing that we are in a bullish configuration with little resistance expected. 1.1080 is close to the 50% fibonacci retracement and, importantly, is a key graphical overlap support which is why it is our stop loss.

We play a move all the way up to 1.1500 before 1.1640 because those are the 2 key graphical resistance levels.

Trading recommendations:

Buy now

Stop loss at 1.1080

1st take profit at 1.1500

2nd take profit at 1.1640

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

USD/CHF Trading Recommendations for 22nd June 2016

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We can see USD/CHF is making a bullish exit of its triangle support and is on pullback support now (great entry level). The RSI is on pullback support whilst seeing good support, too. We look to take an entry now to play a rise all the way to the top of the range.

Trading recommendations:

Buy now

Stop loss at 0.9675

Take profit at 0.9675

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

Silver Technical Analysis for June 22, 2016.

Technical outlook and chart setups:

Silver is seen to be trading lower at $17.25 levels for now, looking to break below $17.00/10 levels going forward. Please note that the metal has produced a bearish evening star candlestick pattern on the daily chart yesterday, indicating that the next move could be lower from here. The wave structure indicates that Silver might be preparing to complete a 3 wave correction by pushing lower towards $15.00/30 levels from here. Please note that the rally from $13.60 through $18.00 levels unfolded in 5 waves, and hence the most probable move should be a 3 wave corrective drop (a-b-c). The metal could retrace the entire rally and form a base around fibonacci 0.618 levels at $15.30. It is hence recommended to remain short for now, with risk above $18.00 levels. Immediate resistance is seen at $18.00 levels, while support is at $17.00 levels.

Trading recommendations:

Remain short for now, stop above $18.00 levels, target is at $15.30.

Good luck!

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

Gold Technical Analysis for June 22, 2016.

Technical outlook and chart setups:

Gold has dropped lower as expected and is trading at $1,269.00 levels at this moment. The yellow metal has now broken below the consolidation support at $1,275.00 levels and should be looking to push towards $1,240.00/50 levels at least. The wave structure indicates that a medium term top is now in place at $1,315.00 levels and that the metal should be looking to retrace the entire rally between $1,046.00 and $1,315.00 levels, as depicted here. Please note that the fibonacci 0.618 retracement is passing through $1,149.00 levels, and a bullish bounce there should be bought. But the metal needs to push below $1,200.00 levels at least to confirm the above wave count. It is recommended to remain short for now, with risk above $1,315.00 levels. Immediate support is seen through $1,200.00 levels, while resistance is at $1,315.00 levels respectively.

Trading recommendations:

Remain short for now, stop at $1,315.00, target is $1,150.00

Good luck!

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

Daily analysis of USDX for June 22, 2016

On the H1 chart, USDX is still moving into a bullish bias above the support level of 93.43, which remains solid into a week of uncertainty because of the Brexit referendum. The Index is close to the 200 SMA price zone, where a pullback should happen technically to resume the overall bearish trend. However, if USDX does a breakout above the 94.07 level, then it can rally towards the 94.54 level.

USDXH1.png

H1 chart's resistance levels: 94.07 / 94.54

H1 chart's support levels: 93.82 / 93.43

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 94.07, take profit is at 94.54, and stop loss is at 93.61.

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

Daily analysis of GBP/USD for June 22, 2016

The cable keeps trading higher ahead of the Brexit referendum, and we can highlight the resistance found around the 1.4730 level. Currently, the pair targets to decline toward the 1.4597 level, where a breakout should happen for another lower move to the 1.4464 level, which also coincides with the 200 SMA on the H1 chart. The MACD indicator is favoring the bearish scenario as it's showing negative signs.

GBPUSDH1.png

H1 chart's resistance levels: 1.4730 / 1.4806

H1 chart's support levels: 1.4597 / 1.4464

Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the GBP/USD pair breaks a bullish candlestick; the resistance level is at 1.4730, take profit is at 1.4806 and stop loss is at 1.4652.

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

Daily analysis of Gold for June 21, 2016

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Overview

The gold price tested the EMA50 that formed a good support base against the last negative attempts, while stochastic begins to provide a positive overlapping signal on the four-hour time frame. This gives the price a positive motive that we expected to reinforce the expectations for further gains on a short-term basis. Therefore, we believe that the chances for breaching the 1,303.58 level in the upcoming sessions are relatively high; the level will form the key for heading to 1,344.85 as the next main station. The continuation of the positive scenario depends on the stability above 1,276.40 and 1,243.17 levels. The expected trading range for today is between the 1,270.00 support and the 1,320.00 resistance.

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

Daily analysis of Silver for June 21, 2016

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Overview

The silver price provided slight positive trading yesterday in an attempt to move away from the EMA50. Meanwhile, stochastic provides a positive signal now, waiting for the price to resume the main bullish wave, which targets begin at 18.00 and extend to 18.63. In general, the bullish trend is still expected in the upcoming period unless breaking the 17.00 level and holding below it. A break of this level represents a negative factor that will push the price to return to the bearish correctional track. The expected trading range for today is between the 17.00 support and the 18.00 resistance.

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