USD/CAD intraday technical levels and trading recommendations for September 5, 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 a 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 1.2830 on August 18.

Conservative traders should consider the current bullish pullback towards 1.3000-1.3100 (61.8% Fibonacci level) as a valid SELL entry. S/L should be set as a daily candlestick closure above 1.3100.

Daily persistence below 1.2950 (61.8% Fibonacci level) should be defended in order to enhance the bearish side of the market.

On the other hand, note that daily fixation above 1.3000 (61.8% Fibonacci level) opens the way towards the price level of 1.3300 (50% Fibonacci level) where price action should be watched for a better SELL entry with a lower risk/reward ratio.

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NZD/USD Intraday technical levels and trading recommendations for September 5, 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 advance was expected towards the price zone around 0.7400 (upper limit of the depicted channel).

The price zone of 0.7350 - 0.7400 (upper limit of the depicted channel) should offer a valid SELL entry. Initial T/P levels should be located at 0.7100, 0.7000, and 0.6900. S/L should be set as a daily candlestick closure above 0.7400.

Confirmation of the depicted Head and Shoulders reversal pattern requires a DAILY candlestick closure below 0.6970 (neckline). Projection targets extend down to 0.6760 and 0.6690 levels.

On the other hand, the price zone between 0.6760-0.6700 constitutes a support zone to be watched for a possible 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 September 5, 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 seen on the depicted charts.

Bearish persistence below the demand level at 1.3550 enhances the bearish scenario towards 1.2700 (nearest bearish projection target) where price actions should be watched for a possible short-term BUY entry.

On the other hand, the price zone of 1.3845-1.4040 constitutes the recent supply zone to be watched for new SELL entries if any bullish pullback extends above 1.3550 (significant supply level to be watched).

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Intraday technical levels and trading recommendations for EUR/USD for September 5, 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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The long-term outlook for the EUR/USD pair remains bearish as the monthly chart illustrates. Bearish fixation below 1.1000 is needed to enhance this bearish scenario.

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

This week, bearish fixation below 1.1000 will be needed to allow a bearish decline to 1.0820 (key level 2) where price actions should be watched for a possible short-term BUY entry.

On July 27, the EUR/USD pushed above the price zone of 1.1000-1.0950 (previous consolidation range). Hence, further bullish advance towards 1.1250 was executed as expected.

A temporary bullish breakout was expressed above the price zone of 1.1250 (Supply Level 1). However, significant bearish rejection was expressed on August 26.

Re-closure below 1.1250 (Supply Level 1) maintains enough bearish pressure and enhances the bearish side in the market. Initial bearish targets are located at 1.1050 and 1.0990.

As anticipated, the bullish pullback towards 1.1250 (Supply Level 1) was considered for a valid SELL entry when signs of bearish rejection were expressed on Friday.

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EUR/NZD analysis for September 05, 2016

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Recently, EUR/NZD has been moving sideways at the price of 1.5250. According to the 30M time frame, I found 2 fractals today. Up fractal at the price of 1.5262 and down fractal at the price of 1.5230. My advice is to place a pending order (buy stop) at the price of 1.5262 with stop loss at the price of 1.5215. The upward target is set at the price of 1.5305. You can also place a pending order (sell stop) at the price of 1.5230 and stop loss at 1.5262 and a target at 1.5155.

Fibonacci Pivot Points:

Resistance levels

R1: 1.5360

R2: 1.5390

R3: 1.5440

Support levels:

S1: 1.5250

S2: 1.5225

S3: 1.5170

Trading recommendations for today: Buy if the price reach 1.5262 and sell if the price reach the 1.5230.

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Gold analysis for September 05, 2016

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Since our previous analysis, Gold has been trading upwards. The price tested the level of $1,329.89 in an ultra high volume. The price spiked upward after the Non-Farm employment change data. Anyway, it is very risky to buy at this stage since I found a potential ending diagonal. My advice is to watch for selling opportunities with targets at $1,315.80 and $1,307.15. Only if the price breaks the level of $1,329.89, the price may continue higher.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,328.04

R2: 1,328.65

R3: 1,329.65

Support levels:

S1: 1,326.05

S2: 1,325.45

S3: 1,224.40

Trading recommendations for today: Watch for selling opportunities as long the price doesn't go above $1,329.89.

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Technical analysis of GBP/USD for September 05, 2016

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Overview:

  • Last week, The GBP/USD pair broke resistance which turned to strong support at the level of 1.3241. The level of 1.3241 coincides with 61.8% of Fibonacci, which is expected to act as major support today. Since the trend is above the 61.8% Fibonacci level, the market is still in an uptrend. From this point, the GBP/USD pair is continuing in a bullish trend from the new support of 1.3241. Currently, the price is in a bullish channel. According to the previous events, we expect the GBP/USD pair to move between 1.3141 and 1.3536 (1.618% Fibonacci). On the H1 chart, resistance is seen at the levels of 1.3435 and 1.3536. Also, it should be noticed that, the level of 1.3357 represents the daily pivot point. Therefore, the price of 1.3250 will be formed at the level of 1.3250 providing a clear signal to buy with the targets seen at 1.3445. If the trend breaks the support at 1.3445 (first resistance) the pair will move upwards continuing the development of the bullish trend to the level 1.3536 in order to test the daily resistance 2. However, stop loss is to be placed below the level of 1.3210.
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Global macro overview for 05/09/2016

Global macro overview for 05/09/2016:

Better than expected PMI Services and PMI Composite data from the United Kingdom has made the pound rally across the board. The market expectations of 49.1 points of PMI Services index were beaten by the released data of 52.9 points, way better than the previous month figure of 47.4. A similar situation can be spotted at PMI Composite index, where the expected score of 50.8 points was beaten by the revised 53.6, again much better than 47.5 points last month. Moreover, according to IHC Markit/CIPS company, the main reason for a contraction in this index in July (especially in output and new business) were strongly related to the EU referendum. At present, the latest data signalled a return to growth as companies reported that uncertainty has flickered out somewhat. In conclusion, despite pretty good post-Brexit figures from the UK service sector, market participants must wait and see whether this is not a one-off situation, mainly caused by a holiday season.

Let's now take a look at the GBP/USD technical picture in 4H time frame. The market rally after the news release was capped by the technical resistance at the level of 1.3375 and it looks like the price will get back to the horizontal congestion zone. The next important support is a cluster of moving averages around the level of 1.3181 - 1.3114 and the techncial support at the level of 1.3062.

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Technical analysis of EUR/USD for September 05, 2016

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Overview:

  • The EUR/USD pair movement was controversial as it 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 1.0949 and 1.1363 this week. Also, the daily resistance and support are seen at the levels of 1.1363 and 1.0949 respectively. Therefore, it is recommended to be cautious while placing orders in this area. So, we need to wait until the sideways channel has completed. last week, the market moved from its top at 1.1363 and continued to fall towards the bottom of 1.1156. Today, in the four-hour chart, the current drop will remain within a framework of correction. Moreover, the resistance is seen at the levels of 1.1274 - 1.1363 (the level of 1.1363 coincides with the double top too). If the pair fails to pass through the first level of 1.1274, the market will indicate a bearish opportunity below the first resistance level of 1.1274. Since there is nothing new in this market, it is not bullish yet. In the long term, sell deals are recommended below the level of 1.1274 with the first target at 1.1046. If the trend breaks the support level of 1.1046, the pair is likely to move downwards continuing the development of a bearish trend to the level 1.0949 in order to test the double bottom in the H4 time frame.
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Daily analysis of major pairs for September 5, 2016

EUR/USD: The EUR/USD pair underwent bearish activity last week. Bulls made an attempt to push up the market on Thursday and Friday, but bears prevented that from happening as they halted further an upward movement, thus saving the current bearish signal. Unless price goes above the resistance line at 0.9850, the bearish signal would be intact.

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USD/CHF: The USD/CHF pair underwent bullish activity last week. Bears made an attempt to push the market down on Thursday and Friday, but bulls prevented that from happening as they halted further downside movement, thus saving the current bullish bias. Unless price goes below the support level at 0.9650, the bullish bias would be intact.

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GBP/USD: The Cable went sideways from Monday to Wednesday and started going upwards on Thursday and Friday. This was an upwards movement of 280 pips, and price has already tested the distribution territory at 1.3350. The bias on the market is bullish in the near-term and bearish in the long term. Other GBP pairs are also bullish (while EUR/GBP is bearish), and therefore, high volatility is expected this week.

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USD/JPY: The USD/JPY cross has continued the bullish journey it started on August 26, 2016. Since then, price has gone upwards 400 pips, now around the supply level at 104.00, which was tested last week and could be retested this week. This bias on this pair, as well as other JPY pairs, is bullish. Until there is a noteworthy change in the market, long trades would be logical.

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EUR/JPY: The protracted equilibrium phase that occurred on this cross ended on August 26, 2016. Since then, price has gone upwards by 300 pips, now testing the supply zone at 116.00. Once price goes above that supply zone, the next target for bulls are at the supply zones at 116.50 and 117.00.

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Global macro overview for 05/09/2016

Global macro overview for 05/09/2016:

The final reading of the Eurozone PMI Services has been published early this morning and it was rather disappointing for the market participants. The PMI Services from the eurozone's power horse, Germany, turned out to be worse than expected (51.7 vs. 53.5 and 53.3 prior), together with overall Eurozone PMI (52.8 vs. 53.1 and 53.1 prior). In conclusion, the euro area's economy continued to expand at a broadly steady pace in August. The rate of the increase edged down to a 19-month low, however, mainly due to a weaker rate of expansion in Germany.

Let's now take a look at the EUR/USD technical picture on the H4 time frame. The clear rejection of the technical resistance at the level of 1.1243 might suggest that bears are in control over this market, but to confirm this, the bear camp must break out below the next support at the level of 1.1127. Otherwise the range-bound price action is anticipated.

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Technical analysis of EUR/JPY for September 5, 2016

General overview for 05/09/2016:

The wave (1) top had been established at the level of 116.32, and currently the market is developing a corrective cycle in wave (2). The projected min. target for this wave is at the level of 115.01 (the previous wave 4 low), but the correction might get more complex and time-consuming. Moreover, the alternative count is still indicating a possible (a) (b) (c) horizontal structure in progress, but so far the impulsive labeling has been fitting better to the market situation.

Support/Resistance:

116.32 - Intraday Resistance

115.58 - Weekly Pivot

115.01 - Intraday Support

114.80 - WS1

113.09 - WS2

Trading recommendations:

The main part of the downward movement has been done already, so day traders should refrain from trading and wait for a better trading setup to occur shortly.

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Technical analysis of USD/CAD for September 5, 2016

General overview for 05/09/2016:

A clear three wave up move to the level of 1.3147 has been labeled as the wave a green and the previous impulsive count has been invalidated. Since then, the market has moved lower towards the next technical support and broke below it. Currently, five waves to the downside in the latest move have almost been completed and the next wave development should be wave b purple progression to the upside. Please notice, the golden trend line will still be providing dynamic support around the level of 1.2900 level.

Support/Resistance:

1.3191 - WR2

1.3147 - Technical Resistance

1.3069 - WR1

1.3025 - Weekly Pivot

1.2982 - Intraday Resistance

1.2903 - WS1

1.2859 - WS2

Trading recommendations:

The main part of the move down has been already done, so day traders should refrain from trading and wait for a better trading setup to occur shortly.

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NZD/USD profit target reached perfectly. Look to sell on strength

Price rose as expected right above our buying entry level and hit our profit target perfectly bagging us good profit. We now look to sell on strength below 0.7340 major resistance (Fibonacci retracement, horizontal resistance) for a drop to at least 0.7271.

RSI (21) is approaching resistance level at 70%.

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Sell below 0.7340. Stop loss is at 0.7400. Take profit is at 0.7271.

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EUR/CHF approaching major support, buy now

Price is approaching major support at 1.0925 (a descending support line, horizontal overlap support, Fibonacci retracement) where we expect a bounce from to at least 1.0975.

Stochastics (21,5,3) is also approaching major support level at 13% where we expect a similar bounce from.

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Buy above 1.0925. Stop loss is at 1.0900. Take profit is at 1.0975.

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Technical analysis of USDX for September 5, 2016

The Dollar index is trapped inside a trading range. Last week, I favored a pullback towards 95 in order to try a bullish setup as price remains above the 4-hour cloud support and the weekly chart supports the view of a continuation of the uptrend.

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Blue line - support

Short-term resistance is at 96.50 and support is at 95. Critical support is seen at 94.50 and a break below it will cancel any chance for a move towards 97 and higher. A rejection and reversal at the current levels will increase the chances of the creation of a lower high and a possible right hand shoulder. That is why the 94.50 level is of critical importance. Both a neckline and a trend line support.

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Green line - long-term trend line support

This week's candle has opened below the tenkan-sen (red line indicator). A pullback towards the green trend line support will not be a good sign. Price is below the weekly Ichimoku cloud. A break below the green trend line will a big bearish signal. This will put the 92 level to the test. This will also signal that a lower high is in place confirming bearish weekly trend.

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Technical analysis of Gold for September 5, 2016

Gold price has reached the short-term resistance levels by the Ichimoku cloud and this is the first important test for bulls. A breakout above the cloud and specially above the $1,350 resistance will open the way for a push to new highs. A rejection here will open the way for a deep decline towards $1,200-$1,250.

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Black line - trend line resistance

Gold price is below the 4-hour Kumo (cloud). Price already once reached the Kumo and got rejected. Now the price is back up there testing short-term resistance at $1,330. A breakout above the cloud will be a bullish sign. Support is at $1,315.

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Blue lines -bullish channel

Price remains inside the long-term bullish channel and above weekly kijun-sen indicator (yellow line). The long-tailed bullish candle of last week could very well be a bullish reversal hammer that will bring Gold to new highs. Bulls need to show some follow through and break $1,350 resistance to increase the chances of this candlestick pattern to get validated.

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Elliott wave analysis of EUR/NZD for September 5, 2016

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Wave summary:

This is a most painful experience watching the extremely slow decent, which keeps the uncertainty about the preferred count high. We do not expect any real reason to change our preferred count that a long-term important low was seen at 1.5072, but we just have to accept that wave ii is dragging on much longer than expected. Under the Elliott Wave Principle second waves are allowed to correct 100% of the first wave, which means, we must allow for a second test of 1.5072, but under no circumstance can support at 1.5072 be broken as this will force a recount of the decline from 1.9023.

In the short term, only a break above minor resistance at 1.5400 will ease the downside pressure.

Trading recommendation:

We are long EUR from 1.5370 with stop placed at 1.5180. Only buy EUR at 1.5105 or upon a break above 1.5400 and start by placing your stop at 1.5060.

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Elliott wave analysis of EUR/JPY for September 5, 2016

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Wave summary:

The rally of 113.11 low continue to unfold just as expected. We were looking for a top for red wave [iii] at 116.36 and this is exactly where it peaked. Now red wave [iv] is unfolding for a corrective decline to 115.44 before the next rally higher to at least 117.00 and likely closer to 117.96 and possibly even to 118.54 before this impulsive rally comes to an end and a correction to 115.44 should be expected.

For now, look for a corrective low near 115.44 for the next impulsive rally higher to at least 117.00.

Trading recommendation:

We are long EUR from 114.05 with stop placed at 114.90 when minor resistance at 116.36 breaks the stop will be moved to 115.40. If you are not long EUR yet, then buy near 115.44 and place stop at 114.90, but move your stop to break-even upon a break above 116.36 and consider taking profit near 117.00.

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Technical analysis of USD/JPY for September 05, 2016

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USD/JPY is expected to advance further. The pair holds on the upside, and is likely to challenge the nearest resistance at 104.45. The rising 50-period moving average plays a support role and maintains a bullish bias. Furthermore, a support base at 102.80 (Sept 2 bottom) has formed, and is expected to limit any downside attempts. In addition, the relative strength index stands firmly above its neutrality area at 50, and lacks downward momentum. On the economic data front, a change in nonfarm payrolls reached 151k in August (forecasted 180k) compared with 275k in the previous month (revised from 255k). On the other hand, an unemployment rate in August remained unchanged at 4.9% (estimated 4.8%). In other news, factory orders improved to 1.9% in July (forecasted 2%) from a decrease of 1.8% a month earlier (revised from -1.5%). Finally, the trade balance improved with a deficit of $39.5B in July (estimated $41.5B) from a deficit of 44.7B in the previous month (revised from $44.5B).

To conclude, as long as 102.80 is not broken, look for further advance to 104.45 and even to 104.95 as possible.

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 104.45 and the second one at 104.95. In the alternative scenario, short positions are recommended with the first target at 102.40 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 102.10. The pivot point is at 102.80.

Resistance levels: 104.45, 104.95, 105.50

Support levels: 102.40, 102.10, 101.65

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Technical analysis of USD/CHF for September 05, 2016

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USD/CHF is expected to trade with a bearish bias as the key resistance is set at 0.9820. The pair is now posting some consolidations. The relative strength index is above its neutrality area at 50, but lacks upward momentum. Last but not the least, 0.9820 (Sept 2 top) represents a significant resistance, and the upside potential should be limited by this level. On the economic data front, a change in nonfarm payrolls reached 151k in August (forecasted 180k) compared with 275k in prior month (revised from 255k). On the other hand, an unemployment rate in August remained unchanged at 4.9% (estimated 4.8%). In other news, factory orders improved to 1.9% in July (forecasted 2%) from a decrease of 1.8% a month earlier (revised from -1.5%). Finally, the trade balance improved with a deficit of $39.5B in July (estimated $41.5B) from a deficit of 44.7B in the previous month (revised from $44.5B).

In these perspectives, as long as 0.9820 is not broken up, the pair is likely to pull back to test its next support at 0.9760, if breakout, look for further decline to 0.9730.

Resistance levels: 0.9855, 0.9885, 0.9935

Support levels: 0.9760, 0.9730, 0.9685

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Technical analysis of NZD/USD for September 05, 2016

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NZD/USD is expected to trade in higher range as bias remains bullish. The pair stands firmly above its horizontal key support at 0.7255, and the downside potential should be limited by this level. The U.S. dollar dropped sharply after the release of jobs data, but recovered by the mid-day session, and closed slightly higher. Even though a continuation of the consolidation cannot be ruled out, its extent should be limited. In addition, the relative strength index is around its neutrality area at 50 and lacks downward momentum. To conclude, as long as 0.7255 is not broken, look for further advance to 0.7340. A break above this level would open the way to further upside toward the next resistance at 0.7380.

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 0.7340 and the second one at 0.7380. In the alternative scenario, short positions are recommended with the first target at 0.7220 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 0.7200. The pivot point is at 0.7255.

Resistance levels: 0.7340, 0.7380, 0.7415

Support levels: 0.7220, 0.7200, 0.7160

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Technical analysis of GBP/JPY for September 05, 2016

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GBP/JPY is expected to trade in a higher range as the bias remains bullish. The pair recorded a succession of higher tops and higher bottoms since Aug 30, which confirms a positive view. The upward momentum is further reinforced by its rising 50-period moving average, which acts as a support role and maintains the upside bias. The relative strength index is above its neutrality level at 50 and lacks downward momentum. As long as 136.80 holds on the downside, look for further upside toward 139.55 and 140.75 in extension.

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 139.55 and the second one at 140.75. In the alternative scenario, short positions are recommended with the first target at 135.90 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 135.35. The pivot point is at 136.80.

Resistance levels: 139.55, 140.75, 141.40

Support levels: 135.90, 135.35, 134.25

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Technical analysis of EUR/USD for Sept 05, 2016

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When the European market opens, some economic data will be released such as Retail Sales m/m, Sentix Investor Confidence, Final Services PMI, German Final Services PMI, French Final Services PMI, Italian Services PMI, and Spanish Services PMI. Today the US will not release any economic Data. So amid the reports, EUR/USD will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Breakout BUY Level: 1.1210.

Strong Resistance:1.1204.

Original Resistance: 1.1193.

Inner Sell Area: 1.1182.

Target Inner Area: 1.1156.

Inner Buy Area: 1.1130.

Original Support: 1.1119.

Strong Support: 1.1108.

Breakout SELL Level: 1.1102.

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 Sept 05, 2016

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In Asia, Japan will release the Average Cash Earnings y/y. Today, the US will not release any economic data. So there is a probability the USD/JPY pair will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Resistance. 3: 104.46.

Resistance. 2: 104.25.

Resistance. 1: 104.05.

Support. 1: 103.80.

Support. 2: 103.59.

Support. 3: 103.39.

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

Daily analysis of USDX for September 05, 2016

USDX managed to consolidate gains above the 200 SMA, following the US NFP release during last Friday. Weaker-than-expected data didn't have a major impact on overall index's structure and currently, we're expecting a rally to test the resistance zone of 96.14. If USDX achieves in break it, then the next target would be the 96.51 level, as the 200 SMA provided a good dynamic support.

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H1 chart's resistance levels: 96.14 / 96.51

H1 chart's support levels: 95.79 / 95.49

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 96.14, take profit is at 96.51 and stop loss is at 95.75.

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

Daily analysis of GBP/USD for September 05, 2016

GBP/USD is still performing a higher consolidation above the 200 SMA on H1 chart, following the less-than-expected NFP figure in the United States last Friday. Currently, we should expect a test of the resistance zone of 1.3360, where a breakout should open the doors to rally towards the 1.3480 level. MACD indicator remains on negative territory and possibly is calling for a correction in coming days.

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H1 chart's resistance levels: 1.3360 / 1.3458

H1 chart's support levels: 1.3358 / 1.3270

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 1.3360, take profit is at 1.3458 and stop loss is at 1.3241.

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