USD/CAD intraday technical levels and trading recommendations for July 22, 2016

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On May 16, 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 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 1.3150. Initial T/P levels should be located at 1.2820 and 1.2710.

DAILY fixation above 1.2980 (61.8% Fibonacci level) allows a quick bullish movement towards 1.3300 (50% Fibonacci Level) where price action should be watched for bearish rejection.

On the other hand, daily fixation below 1.3000 is needed to allow further bearish decline.

Note that the price zone of 1.2400-1.2500 constitutes a significant support zone to be watched for BUY entries when enough bearish pressure is applied below 1.2650.

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NZD/USD Intraday technical levels and trading recommendations for July 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 (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 kept trading above 0.6860, further bullish advancement was expected towards the price zone around 0.7200 (upper limit of the depicted channel).

The price action should have been watched around the price zone of 0.7150 - 0.7200 (upper limit of the depicted channel) for a valid SELL entry. T/P levels should be located at 0.6970, 0.6900, and 0.6850. S/L should be lowered to 0.7070.

On the other hand, the price zone between 0.6760 - 0.6860 constitutes a significant support zone to offer a bullish rejection and a valid BUY entry if the current bearish swing extends below 0.7000.

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Intraday technical levels and trading recommendations for GBP/USD for July 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 and a bullish engulfing weekly candlestick on February 26.

Bullish fixation above 1.4670 allowed further bullish advancement initially towards 1.4950 (weekly supply) where significant bearish rejection was expressed.

The price zone between 1.3845 and 1.3550 (historical bottoms in January 2009) was considered a significant demand zone to be watched for bullish recovery.

However, by the end of June, a significant bearish breakdown below 1.3550 was expressed as depicted on the charts.

Note that the price zone of 1.3845-1.4040 now constitutes the recent supply zone to be watched for new SELL entries if any bullish pullback extends above 1.3550.

On the other hand, bearish persistence below the demand level at 1.3550 enhances the bearish scenario.

Bearish decline should be expected towards 1.2700 (nearest bearish projection target) where price action should be watched for a possible short-term BUY entry.

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Intraday technical levels and trading recommendations for EUR/USD for July 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.

Again in February 2016, the depicted price levels around 1.1400-1.1500 acted as a significant supply zone during the bullish pullback.

That is why, recent bearish rejection was expected around the current price levels (note the monthly candlesticks of May and June).

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 (low probability).

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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.

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 is why, obvious 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.

As anticipated, the recent bullish pullback towards the zone of 1.1400 offered a valid SELL entry. All T/P levels were successfully reached.

The long-term outlook for the EUR/USD pair remains bearish as the monthly chart shows. Bearish fixation below 1.1000 is needed to enhance this bearish scenario.

On July 8, recent bullish recovery has been manifested around the price zone of 1.1000-1.0950 (previous consolidation range) until July 15 when significant bearish pressure was applied around 1.1150.

This week, bearish fixation below 1.1000 allows a quick bearish decline towards 1.0820 where price action should be considered.

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EUR/NZD analysis for July 22, 2016

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Recently, EUR/NZD has been moving sideways at the price of 1.5745. According to the 30M time frame, I found a supply trend line, which is holding very successfully. I also found reversal bars (upthrust) at the trend line, which is a sign that buying looks risky. My advice is to watch for selling opportunities. The take profit level is set at the price of 1.5640.

Fibonacci Pivot Points:

Resistance levels:

R1: 1.5815

R2: 1.5860

R3: 1.5925

Support levels:

S1: 1.5685

S2: 1.5645

S3: 1.5575

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

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Gold analysis for July 22, 2016

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Since our previous analysis, gold has been trading upwards. As I expected, the tested level of $1,333.70 is in a low volume. My upward target at $1,332.00 has been reached. Anyway, the price went into bearish correction from the $1,333.70 level. I placed Fibonacci retracement to find the potetential end of downward correction and I got Fibonacci retracement 50% at the price of $1,322.00 and found support cluster at the price of $1,321.60. Watch for buying opportunities. Take profit level is set at the price of $1,333.70.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,330.60

R2: 1,334.60

R3: 1,341.00

Support levels:

S1: 1,317.90

S2: 1,313.95

S3: 1,307.60

Trading recommendations for today: selling looks risky, watch for buying opportunities.

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Technical analysis of NZD/USD for July 22, 2016

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Overview:

  • The NZD/USD pair broke support at the level of 0.7076 which acts as a resistance now.
  • According to the previous events, the NZD/USD pair is still moving between the levels of 0.7076 and 0.6923 in coming hours.
  • The trend is still below the 100 EMA for that the bearish outlook remains the same as long as the 100 EMA is headed to the downside.
  • Hence, the price spot of 0.7076 remains a significant resistance zone. Consequently, there is a possibility that the NZD/USD pair will move downside.
  • The structure of a fall does not look corrective. In order to indicate a bearish opportunity below 0.7070, sell below 0.7070 with the first target at 0.6923.
  • The level of 0.7070 coincides with 61.8% of Fibonacci, which is expected to act as a major resistance today. Since the trend is below the 61.8% Fibonacci level, the market is still in a downtrend.
  • Overall, we still prefer the bearish scenario.
  • On the other hand, 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 0.7090.
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Technical analysis of USD/CHF for July 22, 2016

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Overview:

  • The USD/CHF pair fell from the level of 0.9906 to bottom at 0.9847 yesterday. Today, the USD/CHF pair has faced strong support at the level of 0.9840. So, the first support has been already faced at the level of 0.9840 and the pair is likely to try to approach it in order to test it again and form a double bottom. Thus, the USD/CHF pair keeps trading in a bullish trend from the support level of 0.9840. According to the previous events, we expect the pair to move between 0.9840 and 0.9906. The major resistance is seen at 0.9906, while immediate resistance is found at 0.9873. Then, we may anticipate potential testing of 0.9873 to take place soon. Moreover, if the pair succeeds in passing through the level of 0.9873, the market will indicate a bullish opportunity above the level of 0.9873. A breakout of that target will move the pair further upwards to 0.9906. The price of 0.9906 represents a double top.

Trading recommendations:

  • Buy orders are recommended above the area of 0.9840 (support) with the first target at the level of 1.9873; and continue towards 0.9906. On the other hand, if the USD/CHF pair fails to break out through the resistance level of 0.9840; the market will decline further to the level of 0.9788.
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Technical analysis of USDX for July 22, 2016

The Dollar index is trading above the breakout area at 96.70. The price came back down to re-test the breakout area after being rejected at 97.30, where the longer-term upper channel boundary is found. As long as the price is above the consolidation area and the breakout level of 96.70, bulls still have hopes of another strong upward move.

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Blue lines - trading range

Red line - upper boundary of bullish long-term channel

The Dollar index is trading above the 4-hour Kumo (cloud) and is holding above the 96.70 breakout level. Resistance is at 97.30, and a break above it will confirm the breakout and push the index towards our target of 97.70. Bears want to see the price get rejected and break back inside the trading range.

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Red line - resistance (broken)

The Dollar index is in an upward trend after breaking above the downward sloping trend line from 100. Bulls have managed to hold the price close to the weekly cloud and back inside it. The Dollar index remains in a big trading range since March of 2015, when it topped. This yearly consolidation could very soon be over with a breakout above or below the trading range of 100-92. Current price action favors bulls and increases the chances of an upward breakout as long as the price is above 96.30. A break below it will be a bearish reversal sign.

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Technical analysis of Gold for July 22, 2016

Gold bounced yesterday higher towards $1,340, but the important resistance and trend change level of $1,350 was not broken upwards. The price is now turning back down, and a test of the recent low will be decisive of whether we would see another test of $1,375 or a break below $1,300.

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Gold is trading below the Kumo on the 4-hour chart. The price bounced towards it yesterday and got rejected. Short-term resistance is at the $1,340-50 area, and only a break above it will open the way for a new high towards $1,400. But the rejection so far favors bears and a move to new lows towards at least the 38% Fibonacci retracement. The 61.8% Fibonacci retracement is at $1,270.

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On the daily chart, the price is trapped between the declining tenkan-sen (red line indicator) and the kijun-sen (yellow line indicator) support. A break of either will be decisive for the trend over the next few days. I believe that the price will eventually break lower towards the daily Kumo (cloud) near $1,270-80.The material has been provided by InstaForex Company - www.instaforex.com

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

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Wave summary:

We continue to look for one more spike higher to the ideal 1.5941 target, from where a corrective decline to the low of wave [iv] at 1.5530 is expected before the next impulsive rally higher towards at least 1.6381 and likely even higher to the first extension target at 1.6917.

Short-term support is seen at 1.5636, which ideally will be able to protect the downside for a rally to 1.5941.

Trading recommendation:

We are waiting for a new EUR buying opportunity at 1.5540 with stop placed at 1.5400.

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

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Wave summary:

We keep looking for one more decline to just below 115.45 to complete wave [ii] and set the stage for the next impulsive rally towards at least 120.47 and, most likely, closer to 122.76.

Short term, a minor triangle consolidation is developing, this should eventually give away towards the downside for the decline to 115.45, from where the next impulsive rally higher is expected.

A break below minor support at 116.48 confirms the decline to 115.45.

Trading recommendation:

Buy EUR at 115.55 with stop placed at 114.85

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Global macro overview for 22/07/2016

Global macro overview for 22/07/2016:

After two consecutive months of growth, British retail sales dropped significantly in June. The Office for National Statistics (ONS) revealed yesterday that retail sales declined 0.9% on a monthly basis, while market analysts had anticipated a decrease of 0.4%. On a yearly basis, retail sales dropped 4.3% from a year earlier, and this number looks even worse if we compare it with the 5.7% y/y advance in May. It fell behind analysts' expectations of a 5.0% rise. The main factor behind the June retail sales deterioration is a drop in sales of footwear and clothing by 1.8% m/m and 6.1% y/y. In conclusion, British consumers might be simply tightening the belt after Brexit, and it might have a bad influence on the next quarter GDP.

Let's now take a look at the technical picture of GBP/USD on the daily time frame. The most important resistance at the level of 1.3537 hasn't been violated, and now the market has dropped into the congestion zone between this level and technical support at the level of 1.3067. The higher time frame trend is still bearish, and so far there are no signs of any trend reversal yet.

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Technical analysis of USD/JPY for July 22, 2016

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USD/JPY is under pressure. The pair broke below the key level at 106.50, which becomes a resistance now and is consolidating on the downside. Meanwhile, the descending 50-period moving average is playing a resistance role and limits the upside potential. Besides, the relative strength index is bearish below its neutrality area at 50 and lacks upward momentum. To conclude, as long as 106.50 holds on the upside, look for a further drop towards 105.40 and even 105.00 in extension.

Market Commentary:

On Thursday, US stocks pulled back, weighed down by airline, energy, commodities, and industrial shares. The Dow Jones Industrial Average slid 0.4% from its record high to 18517 snapping a winning streak that spanned the prior nine sessions. The S&P 500 fell 0.4% to 2165, and the Nasdaq Composite was down 0.3% to 5073.

European stocks were little changed with the STOXX Europe 600 edging down less than 0.1%. Germany's DAX added 0.1% while the UK's FTSE 100 was down 0.4%.

US government bonds rebounded pressing the benchmark 10-year Treasury yield to 1.563% from 1.582% in the previous session. Gold bounced 1.2% to $1331 an ounce. Silver gained 1.9% to $19.76 an ounce, halting a five-session losing streak. Meanwhile, Nymex crude oil settled down 2.2% at $44.75 a barrel.

On the economic front, the US Labor Department reported that initial jobless claims declined slightly to 253,000 in week ended July 16 (vs. 265,000 expected) from 254,000 in the previous week. The National Association of Realtors said existing home sales gained 1.1% month-on-month to an annual rate of 5.57 million units in June (vs. 5.48 million units expected), the highest level in 9-1/2 years.

As expected, the European Central Bank decided to hold interest rates steady. ECB President Mario Draghi said the central bank is ready to act if necessary but it needs more data before considering further action. The euro was little changed and closed 0.1% higher at 1.1023.

The Japanese yen surged against the US dollar yesterday after BBC Radio 4 broadcast an interview with Bank of Japan Governor Haruhiko Kuroda, in which the central banker played down the idea of "helicopter money" - direct cash injection to businesses and consumers. USD/JPY dived swiftly to 105.41 from the levels around 106.80. BBC later made a clarification saying the interview was conducted in mid-June. USD/JPY eventually settled at 105.80, down 1.0% on the day.

At the same time, GBP/USD gained 0.2% to 1.3232. As a result, the ICE Dollar Index declined 0.2% to 97.00.

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 105.40. A break below this target will move the pair further downwards to 105 The pivot point stands at 106.50. 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 106.80 and the second one, at 107.45.

Resistance levels: 106.80, 107.45, 108

Support levels: 105.40, 105.00, 104.60

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Technical analysis of USD/CHF for July 22, 2016

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USD/CHF is expected to trade with a bullish bias above 0.9825. The technical picture remains positive above its key support at 0.9825, which should limit downward attempts. Even though a continuation of the consolidation cannot be ruled out, its extent should be limited. On the economic front, the US Labor Department reported that initial jobless claims declined slightly to 253,000 in week ended July 16 (vs. 265,000 expected) from 254,000 in the previous week. The National Association of Realtors said existing home sales gained 1.1% month-on-month to an annual rate of 5.57 million units in June (vs. 5.48 million units expected), the highest level in 9-1/2 years.

As long as 0.9825 is not broken, further advance is expected with the horizontal resistance at 0.9900. A break above this level would open the way to further upside toward the next resistance at 0.9920.

Resistance levels: 0.9900, 0.9920, 0.9975

Support levels: 0.9805, 0.9780, 0.9760

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Technical analysis of NZD/USD for July 22, 2016

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NZD/USD is under pressure as the key resistance is at 0.7040. The pair is posting some rebound, and the 50-period moving average is turning up. Nevertheless, the prices failed to break above the key resistance at 0.7040, and the upward potential is likely to be limited by the threshold. As long as 0.7040 holds as the key resistance, the pair is likely to return to 0.6950. A break below this level would open the way to further weakness toward the horizontal support at 0.6920.

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 0.6950. A break below this target will move the pair further downwards to 0.6920. The pivot point stands at 0.7040. 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 0.7065 and the second one, at 0.7085.

Resistance levels: 0.7065, 0.7085, 0.7125

Support levels: 0.6950, 0.6920, 0.6875

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GBPCHF Technical Analysis for July 22, 2016.

Technical outlook and chart setups:

The GBP/CHF pair had pushed higher and made a fresh intermediary top at 1.3100 levels earlier. Since then, there has not been much change with respect to price action, and the pair has been drifting sideways, with a positive momentum though. The pair is seen to be trading at 1.3025/35 levels at the moment and should be looking to break higher. The wave structure still indicates that the pair is expected to push higher through 1.3250 levels, which is major resistance on higher timeframes (4H, not seen here). Please note that 1.2875 levels were the termination of wave 4 within the 5 waves rally that begun from 1.2500 levels earlier. Bulls should remain poised to stay in control till prices trade above 1.2875 levels going forward. It is hence recommended to remain long with risk below 1.2850 levels. Immediate resistance is seen at 1.3200 levels, while support is at 1.2875 levels respectively.

Trading recommendations:

Remain long for now, stop at 1.2850, and target 1.3250.

Good luck!

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

Global macro overview for 22/07/2016

Global macro overview for 22/07/2016:

The European Central Bank decided to leave interest rates unchanged at the level of 0.0%, together with the deposit facility rate at -0.40% and marginal lending facility at 0.25%. During the press conference, ECB head Mario Draghi signaled that he is prepared to add more monetary stimulus later in the year if needed. Moreover, he mentioned that the Brexit had added to "headwinds" for the eurozone's economy, which, as a result, increased geopolitical uncertainty. In conclusion, the ECB meeting and interest rate decision were in line with market expectations, and Draghi reiterated the well-known issues, not really adding anything surprising or new.

Let's now take a look at the EUR/USD technical picture on the daily time frame after the interest rate decision. Not much directional movement can be observed, but the price is trading below all moving averages and below the trend line. This kind of price action suggests more downside pressure. The next support is seen at the level of 1.0910.

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Technical analysis of GBP/JPY for July 22, 2016

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GBP/JPY is under pressure. The pair is turning down and remains under pressure below the 50-period moving average. Meanwhile, the relative strength index lacks upward momentum. As expected, the European Central Bank decided to hold interest rates steady. ECB President Mario Draghi said the central bank is ready to act if necessary but it needs more data before considering further action. The euro was little changed and closed 0.1% higher at 1.1023. As long as 140.80 holds as the key resistance, a drop toward 138.30 is possible.

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 139. A break below this target will move the pair further downwards to 13.30. The pivot point stands at 140.80. 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 141.30 and the second one, at 142.45.

Resistance levels: 141.30, 142.45, 143.25

Support levels: 130.00, 139.30, 138.30

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EURJPY Technical Analysis for July 22, 2016.

Technical outlook and chart setups:

The EUR/JPY pair has finally dropped lower after reversing from 118.47 levels, just a few pips higher than projected earlier. Please note that EUR/JPY may be carving out a flat A-B-C structure and could possibly drop lower towards 115.30 levels at least. The pair is seen to be trading at 116.50/60 levels, looking to slip lower at least towards interim support as depicted here. The wave structure also reveals that the pair has unfolded into 5 waves from 109.50 levels and it should produce a meaningful retracement lower towards 113.50 levels, if not further. It is hence recommended to remain short from here, with risk above 118.40/50 levels. Immediate intermediary support is seen at 115.20 levels, while resistance is at 118.40 levels respectively. Bears are expected to remain in control till prices stay below 118.40/50 levels going forward.

Trading recommendations:

Remain short now; stop at 118.40/50, target is 113.50.

Good luck!

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

Technical analysis of EUR/JPY for July 22, 2016

General overview for 22/07/2016:

The top for the wave b has been established at the level of 118.38, and now the market should start to develop one more wave to the downside in order to complete the whole structure in wave b green. The projected target for wave c of wave b green is at the technical support at the level of 114.81. Please notice that the wave b might still evolve into a more complex and time-consuming pattern.

Support/Resistance:

122.91 - WR2

122.67 - Technical Resistance

120.11 - WR1

118.40 - Intraday Resistance

115.54 - Weekly Pivot

115.48 - Intraday Support

114.75 - Technical Support

112.85 - WS1

110.83 - Technical Support

Trading recommendations:

Due to the unclear outlook, investors should refrain from trading and wait for a better trading setup to occur shortly.

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Technical analysis of USD/CAD for July 22, 2016

General overview for 22/07/2016:

The wave (b) has evolved into a triple-three pattern, a more complex and time-consuming corrective cycle. Currently, the market should start to develop another wave to the downside, and any violation of the level of 1.3011 will be the first clue that the wave (c) is in progress. The growing bearish divergence between the price and momentum oscillator is supporting the view.

Support/Resistance:

1.2087 - WS1

1.2972 - Weekly Pivot

1.3011 - Intraday Support

1.3035 - 61% Fibo

1.3085 - WR1

1.3112 - Intraday Resistance

1.3138 - Local High

Trading recommendations:

Day traders should consider opening sell orders from the level of 1.3013 with tight SL and TP open for now. The reason for the trade is wave (c) to the downside anticipation.

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Silver Technical Analysis for July 22, 2016.

Technical outlook and chart setups:

Silver is seen to be trading higher at $19.75 levels for now, after bottoming out around $19.25 levels yesterday. The metal looks to be carving out a regular flat now, having tested $19.20/25 levels, and it should rally to produce a lower high ahead of $21.13 levels. Please note that a meaningful top is already in place at $21.13 levels, and bears would remain in control till prices stay below. The wave structure also indicates that a flat is underway, and one should find Silver turning lower from around $20.75/80 levels. It is recommended to remain flat for now and look to go short at higher levels; aggressive traders may initiate longs with risk below $19.25 levels. Immediate interim support is seen at $19.20 levels, while resistance is at $21.13 levels respectively.

Trading recommendations:

Aggressive traders may remain long, stop below $19.25. Conservative traders look to go short at $20.75/80 levels.

Good luck!

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

Gold Technical Analysis for July 22, 2016.

Technical outlook and chart setups:

Gold dropped to $1,310.00 levels yesterday before pulling back sharply, as expected and discussed earlier. Please note that the metal might just have begun a countertrend rally towards $1,350.00/60.00 levels going forward. The wave structure also indicates that the drop from $1,375.00 through $1,310.00 levels is an impulse (5 waves), and hence a countertrend rally is most probable to unfold. The metal is seen to be trading around $1,327.00/28.00 levels at this moment, looking to push through at least $1,335.00/40.00 levels, which is also fibonacci 0.382 resistance of an earlier drop, as depicted here. It is hence recommended to remain long (aggressive trade setup) for now with risk below $1,315.00 levels. Immediate support is seen at $1,315.00 levels, while resistance is at $1,334.00 levels respectively.

Trading recommendations:

Short target hit. Turn bullish now, stop at $1,315.00, target $1,335.00/40.00 at least.

Good luck!

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NZD/USD Trading Recommendations 22nd July 2016

We are seeing a very perfect 5 wave down elliott wave structure. We are playing the graphical overlap resistance at 0.7015 as our main selling area for a drop down to 0.6920 (wave 5 projection). We're keeping a tight stop loss at 0.7040 to give us a low-risk high-reward trade.

We can see stochastics reversing below our 81% resistance level too.

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Trading Recommendations:

Sell now and below 0.7015

Stop loss at 0.7040

Take profit at 0.6920

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AUD/NZD Trading Recommendation for 22nd July 2016

We are playing a bullish wave 5 rise to 1.0800, which is a fibonacci projection level + fibonacci retracement level. Our stop loss is at 1.0655, which is the first graphical overlap support and also a fibonacci retracement level. It is worth noting that 1.0550 is a major support level on a long-term basis.

The RSI has also made a bullish exit of its descending channel and is returning to pullback support, which supports our view of seeing a bounce on AUD/NZD from here.

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Trading Recommendations:

Buy now

Stop loss at 10655

Take profit at 1.0800

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Technical analysis of EUR/USD for July 22, 2016

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When the European market opens, some economic news will be released such as the Italian Retail Sales m/m, Flash Services PMI, Flash Manufacturing PMI, German Flash Services PMI, German Flash Manufacturing PMI, French Flash Services PMI, and French Flash Manufacturing PMI. The US will release economic data too such as the Flash Manufacturing PMI. So amid the reports, EUR/USD will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Breakout BUY Level: 1.1084.

Strong Resistance: 1.1078.

Original Resistance: 1.1067.

Inner Sell Area: 1.1056.

Target Inner Area: 1.1030.

Inner Buy Area: 1.1004.

Original Support: 1.0993.

Strong Support: 1.0982.

Breakout SELL Level: 1.0976.

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 July 22, 2016

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In Asia, Japan will release the Flash Manufacturing PMI, and the US will release some economic data such as the Flash Manufacturing PMI. So there is a probability the USD/JPY will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Resistance. 3: 106.26.

Resistance. 2: 106.05.

Resistance. 1: 105.84.

Support. 1: 105.59

Support. 2: 105.38.

Support. 3: 105.17.

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

Daily analysis of major pairs for July 22, 2016

EUR/USD: There is a bearish signal on the EUR/USD, for the price has gone downwards a bit this week. The EMA 11 is below the EMA 56, and the Williams' % Range period 20 is not far from the oversold territory. Should the price fail to trend strongly today or next Monday, the price would enter another tight equilibrium phase.

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USD/CHF: This pair tested the resistance level at 0.9900 and got corrected lower. The indicators on the 4-hour chart point to a possibility of further northward journey. But the resistance level at 0.9900 would pose a formidable challenge to bears. The risk of a bearish movement is present.

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GBP/USD: The Cable has become a flat market, and the bias on it has turned neutral. It is possible that this equilibrium phase would continue to hold. Nonetheless, a breakout is imminent, which would push the price upwards or downwards significantly. Until that happens, this market should be avoided.

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USD/JPY: The USD/JPY experienced a bearish correction yesterday. However, the bias is still bullish, and unless the price goes below the support level at 103.00, the bullish bias would hold. It is possible that bulls would push the price upwards from here, testing the supply levels at 106.50 and 107.00 again. There is a Bullish Confirmation Pattern on the chart.

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EUR/JPY: There are mixed signals on this cross right now. The RSI period 14 has gone below the level 50, showing some weakness in the market. On the other hand, the EMA 11 is still above the EMA 56, showing that the situation is not totally helpless for bulls. One would need to wait until there is a clearer signal: either the RSI would cross the level 50 to the upside to conform to the EMAs, or the EMA 11 would cross the EMA 56 to the downside to conform to the RSI.

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Daily analysis of USDX for July 22, 2016

On the H1 chart, USDX is still capped by the resistance zone of 97.27, and now it looks like a decline will take place towards the 200 SMA, around the support level of 96.60. If the index succeeds in breaking it, the door will be opened to test the next key level at the 95.89 area on a short-term basis. The MACD indicator is favouring the bearish scenario, but a rebound can be seen anyways.

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H1 chart's resistance levels: 97.27 / 97.74

H1 chart's support levels: 96.60 / 95.89

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 97.27, take profit is at 97.74 and stop loss is at 96.81.

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

Daily analysis of GBP/USD for July 22, 2016

The pair moved mostly sideways yesterday, and we can still see some hovering around the 200 SMA price zone on the H1 chart. Immediate resistance can be found at the psychological level of 1.3300, where the bulls should make a breakout in order to reach the 1.3459 level. However, we're still expecting slow moves ahead of the end of the week.

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H1 chart's resistance levels: 1.3300 / 1.3459

H1 chart's support levels: 1.3148 / 1.3001

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 1.3300, take profit is at 1.3459 and stop loss is at 1.3139.

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Daily analysis of Gold for July 21, 2016

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Overview

The gold price approaches from the bullish bias now after approaching from the targets mentioned in our last reports, where the price was affected by stochastic positivity. This provides signals for curving to the upside and an attempt to resume the main bullish trend after the temporary decline that controlled the last trading. Therefore, the bullish trend will be preferred in the upcoming sessions. A breach of 1,331.00 levels will confirm the continuation of the bullish wave on the short- term basis; positive targets begin at 1,375.00. A break of the 1,297.75 level will stop the suggested positive scenario and make the price decline to 1,249.95 mainly.

The expected trading range for today is between the 1,300.00 support and the 1,340.00 resistance.

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Daily analysis of Silver for July 21, 2016

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Overview

The silver price shows positive trading now. We found out that yesterday's decline stopped at the 23.6% Fibonacci level by measuring Fibonacci correction for the last rise from 13.75 to 21.08. This signals that the price has attempted to resume the main bullish trend. Therefore, we believe that the chances of positive trading on the intraday and short-term bases are relatively high; the awaited targets begin at 20.20 and extend to 22.00. A break of the 19.35 level and holding with a daily close below it will extend the bearish wave to target the 18.28 area before any new attempt to rise. The expected trading range for today is between the 18.70 support and the 20.20 resistance.

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