USD/CAD intraday technical levels and trading recommendations for September 7, 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 recent 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. Initial bearish targets are located at 1.2670 and 1.2580.

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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Intraday technical levels and trading recommendations for GBP/USD for September 7, 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 (the nearest bearish projection target) where price action 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 the current bullish pullback extends above 1.3550 (Significant Supply level to be watched as well).

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Intraday technical levels and trading recommendations for EUR/USD for September 7, 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.

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) is needed to maintain enough bearish pressure to enhance 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) should be considered for a valid SELL entry when enough signs of bearish rejection is expressed.

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EUR/NZD analysis for September 07, 2016

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Recently, EUR/NZD has been moving downwards.As I expected, the price tested the level of 1.5036 in a high volume. My downward target at the price of 1.5130 has been reached. According to the M30 time frame, I found one down fractal at the price of 1.5073 (already reached) today. My advice is watch for selling opportunities with target at the price of 1.4950 and stop loss level at the price of 1.5145. The trend is downward. According to the volume analysis, I found supply in a high volume and no signs of potential strength.

Fibonacci Pivot Points:

Resistance levels

R1: 1.5235

R2: 1.5260

R3: 1.5300

Support levels:

S1: 1.5160

S2: 1.5135

S3: 1.5095

Trading recommendations for today: Watch for selling opportunities.

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Gold analysis for September 07, 2016

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Since our previous analysis, gold has been trading upwards. As I expected, the price tested the level of $1,352.22 in a high volume. Gold reached my take profit from yesterday at the price of $1,341.50. Anyway, today I found weak demand and potential topping formation according to the 15M time frame. My advice is to be careful when buying and watch for selling opportunities. The breakout of $1,346.80 (down fractal) will confirm potential downward movement and testing of $1,341.85 - $1,339.50.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,349.10

R2: 1,354.75

R3: 1,363.90

Support levels:

S1: 1,330.75

S2: 1,325.10

S3: 1,315.95

Trading recommendations for today: Watch for potential selling opportunities.

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Technical analysis of NZD/USD for September 07, 2016

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Overview:

  • The NZD/USD pair continued moving upwards from the level of 0.7380. Yesterday, the pair rose from the level of 0.7380 to the top around 0.7466. Today, the first support level is seen at 0.7425 followed by 0.7380, while daily resistance is seen at 0.7489. According to the previous events, the NZD/USD pair is still moving between the levels of 0.7425 and 0.7489. This would suggest a bullish market because the RSI indicator is still in a positive area and does not show any trend-reversal signs. Furthermore, if the trend is able to break out through the first resistance level of 0.7489, we should see the pair climbing towards the new double top (0.7525) to test it. On the contrary, if a breakout takes place at the support level of 0.7380, then this scenario may become invalidated. Remember to place a stop loss; it should be set below the second support of 0.7380. Generally, the trend will continue moving upwards as long as the price of 0.7380 is not breached. In overall, we still prefer the bullish scenario above the area of 0.7380 - 0.7425.
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Technical analysis of USD/CHF for September 07, 2016

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Overview:

  • The USD/CHF pair continues to move downwards from the levels of 0.9792 and 0.9744. Yesterday, the pair dropped from the levels of 0.9792 and 0.9744 (these levels coincide with the ratios of 61.8% and 50% Fibonacci retracement) to the bottom around 0.9889. Today, the first resistance level is seen at 0.9744 followed by 0.9792, while daily support 1 is seen at 0.9635. According to the previous events, the pair is still moving between the levels of 0.9744 and 0.9635. Moreover, the RSI starts signaling a downward trend, as the trend is still showing strength below the moving average (100). Thus, the market is indicating a bearish opportunity below 0.9700 for that it will be good to sell at 0.9700 with the first target of 0.9635. It will also call for a downtrend in order to continue towards 0.9586. The daily strong support is seen at 0.9586. However, the stop loss should always be taken into account, for that it will be reasonable to set your stop loss at the level of 0.9744. If a breakout takes place at the resistance level of 0.9744, then this scenario may become invalidated.
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Global macro overview for 07/09/2016

Global macro overview for 07/09/2016:

The eurozone GDP data released yesterday came in line with expectations. According to Eurostat, final GDP for the second quarter was at the level of 0.3% (0.3% prior) and 1.6% on year-to-year basis (1.6% prior). The main reason behind the slowdown in the second quarter was weakness in domestic demand in countries like France, Italy, and Finland, flat gross investment (0.4% only), and weak consumer spending (0.2%). In conclusion, the economic growth in the eurozone is barely above the inflation, so now all eyes on third-quarter GDP reports from Germany and France.

Let us now take a look at the EUR/GBP technical picture on the daily time frame. Bulls have managed to make another higher high with the top at the level of 0.8723, but currently the market is in the corrective decline. Nevertheless, the long-term trend is still bullish with the key support at the level of 0.8115. The next resistance is seen at the level of 0.8469.

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Global macro overview for 07/09/2016

Global macro overview for 07/09/2016:

The Bank of Canada interest rate decision is scheduled for release today at 14:00 GMT. The market participants expect the BOC to leave the interest rate unchanged at the level of 0.50%. As we remember, BOC Governor Stephen Poloz introduced two separate interest rate cuts in 2015, but since then no more rate cuts have been made. The main reason behind this behavior is the wait-and-see approach for the results of the government's stimulus. In conclusion, the recent slight growth slowdown in the Canadian economy is visible, but any rate cut would not be beneficial at this stage.

Let us now take a look at the GBP/CAD technical picture on the daily time frame. The long-term trend is clearly down as the consecutive sequence of lower highs and lower lows are clearly visible since December 2015. Currently, the market is trading below all moving averages and below the short-term golden trend line as well. The next support is seen at the level of 1.7160 and the next resistance is seen at the level of 1.7544.

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Technical analysis of USD/CAD for September 7, 2016

General overview for 07/09/2016:

The full five waves in sub-wave a are now completed, so the next wave progression should develop to the upside in the form of wave b. The projected target is recently violated the golden trend line zone, just above the intraday resistnace at the level of 1.2886. The clearly visible bullish divergence between the price and momentum oscillator supports the view.

Support/Resistance:

1.3191 - WR2

1.3147 - Technical Resistance

1.3069 - WR1

1.3025 - Weekly Pivot

1.2903 - WS1

1.2886 - Intraday Resistance

1.2859 - WS2

1.2831 - Intraday Support

Trading recommendations:

Daytraders should consider opening buy orders from current price levels with SL just below the intraday support at the level of 1.2831 and TP at the level of 1.2900.

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Technical analysis of EUR/JPY for September 7, 2016

General overview for 07/09/2016:

The wave c of the overall corrective structure has been completed. This means we should now see impulsive wave progression to the upside that should take out the last swing high at the level of 116.36. If there is no visible impulsive wave development to the upside, then the alternative count is still indicating a possible (a) (b) (c) horizontal structure in progress. Nevertheless, so far the impulsive labeling has been fitting better to the market situation.

Support/Resistance:

116.32 - Swing High

115.58 - Weekly Pivot

115.01 - Intraday Resistance

114.80 - WS1

113.86 - Intraday Support

113.09 - WS2

Trading recommendations:

Day traders should consider opening buy orders with SL just below the intraday support at the level of 113.85 and TP open for now.

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Technical analysis of USDX for September 7, 2016

ISM non-manufacturing PMI was announced yesterday. A weaker than expected score for August triggered a big sell-off in the Dollar index and widespread selling of the Dollar. The Dollar index is now testing important medium-term support.

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Black line - trend line resistance

Blue line - support trend line.

The Dollar index has broken below the 4-hour cloud and is approaching the medium-term trend line support at 94.50. As I mentioned yesterday, the Dollar index was range bound and this holds true even now after the sharp decline from yesterday. Price remains above critical support but also below important resistance levels. A medium-term trend is neutral. A short-term trend is bearish.

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Green line - trend line support

The Dollar index is testing the weekly trend line support. A break below this trend line will put the previous lows to the test with increased chances of breaking even below 92. The weekly chart shows clearly a weekly rejection at 97.50 and the start of lower lows and lower highs in play. With price being rejected twice by the cloud the chances favor the Dollar to continue its decline. An important trend change level is the 96.50 area.

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Technical analysis of Gold for September 7, 2016

Since last week, I warned Gold bears that Gold was about to make a strong rally towards at least $1,330-40. Yesterday we saw Gold price break above $1,350, but the most important is the structure of the rise from $1,302 that is impulsive.

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Black line -trend line resistance

Gold price has broken above the black trend line resistance and the Ichimoku cloud on the four-hour chart. This is a bullish sign. The form of the rise is impulsive implying more upside is expected after a pullback. There is no sign yet of a pullback but once it comes I believe it should be bought.

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Blue lines - bullish channel

The bullish reversal hammer candlestick from last week is given the follow through bulls needed. Price has broken above the weekly tenkan-sen (red line indicator) implying that the recent highs will be tested. Price remains inside the bullish channel. With the bounce coming this high and the decline from $1,375 being clearly corrective, a break below $1,300 will open the way for a move to $1,200 which is the next buy level for a long-term move up. For now we assume the decline is over and the most probable scenario is that any pull back will not break below $1,300.

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Elliott wave analysis of EUR/NZD for September 7, 2016

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Wave summary:

The break below 1.5187 invalidated our bullish count and we have to go back to the long-term chart to view the options. We still feel confident that a long-term important low was seen at 1.3884 and the upside pressure eventually will get the upper hand. However, for now we need to accept that the correction from 1.9023 is still unfolding and the next possible downside target is seen at 1.4748. Only from this support or upon a 1.5271 should renewed upside pressure be expected.

Trading recommendation:

Our stop at 1.5180 was hit for a loss. We will be looking to buy at 1.4755 or upon a break above resistance at 1.5271.

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Elliott wave analysis of EUR/JPY for September 7, 2016

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Wave summary:

The break below minor support at 114.98 questioned the previous count and we have instead adopted an even more long term bullish count. This count shows that we completed blue wave (i) at 116.37 and the ongoing corrective decline is blue wave (ii). This count remains valid as long as we stay above support at 113.11.

Focusing on blue wave (ii) it does not yet look complete, calling for a move closer to 113.48 before the next possible low.

That said, remember that second waves are allowed to correct 100% of the first wave, but never ever is allowed to break below the starting point of the first wave.

Trading recommendation:

Our stop at 114.90 was hit for a nice profit. We will buy EUR again at 113.50 with stop placed at 113.05.

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Technical analysis of USD/JPY for September 07, 2016

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USD/JPY is expected to trade in a lower range. The pair broke below 102.20, representing a horizontal key level. The previous support now acts as resistance, which should limit any upside potential. The downside momentum is further reinforced by its descending 50-period moving average, which maintains a bearish bias. In addition, the relative strength index broke down its 30 level, and lacks upward momentum. To conclude, as long as 102.20 is not surpassed, the pair is likely to drop to its next support at 100.80. A break below this level would open the way to further weaknesses toward 100.50.

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 100.80. A break below this target will move the pair further downwards to 100.50. The pivot point stands at 102.20. 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 103.15 and the second one, at 103.80.

Resistance levels: 103.15, 103.80, 104.25

Support levels: 100.80, 100.50, 100

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Technical analysis of USD/CHF for September 07, 2016

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USD/CHF is expected to extend its downside movement. The pair accelerated on the downside yesterday after the failure of the break above its key resistance at 0.9810, which maintains the bearish bias. Both the 20-period and 50-period moving averages are heading downward. The relative strength index broke below its 30 level, and lacks upward momentum. On the economic data front, the ISM non-manufacturing composite index fell to 51.4 in August (estimated 54.9) from 55.5 in the previous month. The U.S. dollar tumbled on weak business data.

To sum up, as long as 0.9810 holds on the upside, the pair is likely to drop to 0.9645 at first, and then to 0.9590.

Resistance levels: 0.9855, 0.9885, 0.9935

Support levels: 0.9645, 0.9590, 0.9525

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Technical analysis of NZD/USD for September 07, 2016

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NZD/USD is expected to continue its upside movement. The pair stands firmly above its horizontal support at 0.7350 and is likely to challenge the nearest resistance at 0.7445 in sight. The rising 50-period moving average is playing a support role, and should limit the downward attempts. In addition, the relative strength index is still above its neutrality area at 50. Therefore, as long as 0.7350 holds as support, look for a new rise to 0.7445 and 0.7500 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 0.7445 and the second one at 0.7500. In the alternative scenario, short positions are recommended with the first target at 0.7300 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 0.7255. The pivot point is at 0.7350.

Resistance levels: 0.7445, 0.7500, 0.7560

Support levels: 0.7300, 0.7255, 0.7200

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Technical analysis of GBP/JPY for September 07, 2016

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GBP/JPY is expected to trade with a bearish bias as the pair is capped by a negative trend line. The technical picture is negative below a declining trend line, which emerged on Sep 2. The downward momentum is further reinforced by its descending 50-period moving average, which acts as resistance and maintains the downside bias. The RSI is below its neutrality level at 50 and lacks upward momentum. Below 136.80, look for a further drop toward 135.35 and even 134.50 in extension.

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 135.35. A break below this target will move the pair further downwards to 134.50. The pivot point stands at 136.80. 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 138.35 and the second one, at 138.80.

Resistance levels: 138.35, 138.80, 139.55

Support levels: 135.35, 134.50, 133.65

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Technical analysis of EUR/USD for Sept 07, 2016

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When the European market opens, some economic data will be released such as German 10-y Bond Auction, French Trade Balance, and German Industrial Production m/m. The US will release economic data too such as Beige Book and JOLTS Job Openings. So amid the reports, EUR/USD will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Breakout BUY Level: 1.1298.

Strong Resistance:1.1292.

Original Resistance: 1.1281.

Inner Sell Area: 1.1270.

Target Inner Area: 1.1244.

Inner Buy Area: 1.1218.

Original Support: 1.1207.

Strong Support: 1.1196.

Breakout SELL Level: 1.1190.

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 07, 2016

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In Asia, Japan will release the leading Indicators. The US will is to publish a series of reports such as Beige Book and JOLTS Job Openings. 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: 101.91.

Resistance. 2: 101.71.

Resistance. 1: 101.51.

Support. 1: 101.26.

Support. 2: 101.17.

Support. 3: 100.86.

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

EUR/CHF right on support, buy now.

Price is approaching major support once again at 1.0900 (Fibonacci retracement, horizontal overlap support) and we look to buy above this level for a small bounce to 1.0975.

Stochastics (34,5,3) is in an oversold zone signalling a reversal is approaching.

RSI (21) is right above ascending support signalling a bounce is impending.

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Buy above 1.0900. Stop loss is at 1.0875. Take profit is at 1.0975.

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USD/CHF approaching major support, look to buy

Price is approaching major support at 0.9675 (Fibonacci retracement, Fibonacci projection) where we expect a bounce from to at least 0.9765.

Stochastics (21,5,3) is also seeing major support at 7% where we expect a bounce from.

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Buy above 0.9675. Stop loss is at 0.9615. Take profit is at 0.9765.

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EUR/JPY approaching support, buy now

Price is approaching major support at 114.00 (Horizontal overlap support, Fibonacci retracement) where we expect a bounce from to at least 115.15.

Stochastics (34,5,3) is right on major support at 12% too where we expect a similar bounce from.

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Buy above 114.00. Stop loss at 112.85. Take profit at 115.15.

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EUR/USD approaching major resistance, sell now.

We have reached our profit target perfectly from yesterday again. We now turn bearish below 1.1270 fractal resistance (horizontal pullback resistance, Fibonacci projection, Fibonacci retracement, Elliott Wave Structure) for a drop to 1.1190.

Stochastics (21,5,3) is also seeing major resistance at 92% where we expect a drop from.

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Sell below 1.1270. Stop loss at 1.1300. Take profit at 1.1190.

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Daily analysis of major pairs for September 7, 2016

EUR/USD: The EUR/USD pair moved upwards on Monday, which is a considerable amount of threat to the recent bearish outlook on the market. A movement above the resistance line at 1.1350 would result in a bullish signal, but a movement below the support level at 1.1150 would reinforce the recent bearish bias, which is now under a threat.

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USD/CHF: The USD/CHF pair trended lower yesterday, which is a considerable amount of threat to the recent bullish bias on the market. A movement below the support level at 0.9600 would result in a bearish signal, but a movement above the resistance level at 0.9850 would strengthen the recent bullish bias, which is now under a threat.

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GBP/USD: Since September 1, 2016, the cable has gone upwards by 310 pips, now very close to the distribution territory at 1.3450. It is expected that the distribution territory would be breached to the upside, as price targets another distribution territory at 1.3500. Price would even go beyond this territory eventually.

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USD/JPY: The USD/JPY pair has experienced a large pullback this week – which is a threat to the current bullish outlook. The RSI period 14 is below the level 50; and once the EMA 11 goes below the EMA 56, there would be a Bearish Confirmation Pattern in the market, which would signal further bearish movement.

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EUR/JPY: This cross has come down by 120 pips since the beginning of this week, but the bullish outlook on the market is not totally overturned. The EMA 11 is still above the EMA 56, though the RSI period 14 is below the level 50. Today would show whether the current price action would be a temporary pullback in the market or a beginning of a new downtrend.

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Daily analysis of USDX for September 07, 2016

USDX is consolidating below the 200 SMA following the weak data from the United States, in particular ISM Non-Manufacturing PMI. Currently, the greenback is hovering at the support zone of 94.78 after a strong decline seen during Tuesday's session. The index is poised to continue trading lower. If the index manages to break that zone, then it can decline towards the 94.29 level.

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H1 chart's resistance levels: 95.49 / 95.79

H1 chart's support levels: 94.78 / 94.29

Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the USD Index breaks with a bearish candlestick; the support level is at 94.78, take profit is at 94.29 and stop loss is at 95.27.

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Daily analysis of GBP/USD for September 07, 2016

GBP/USD is climbing across the board and looking to reach the resistance level of 1.3480. Currently, the bullish momentum is helping the sterling to break the post-Brexit range in which it has been trapped since then.The 200 SMA on H1 chart is providing a good dynamic support and eventually, the pair can test the 1.3685 on a mid-term basis.

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H1 chart's resistance levels: 1.3480 / 1.3685

H1 chart's support levels: 1.3360 / 1.3258

Trading recommendations for today: Based on the H1 chart, buy (long) orders only if the GBP/USD pair breaks a bullish candlestick; the resistance level is at 1.3480, take profit is at 1.3685 and stop loss is at 1.3270.

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

Technical analysis of USD/JPY for September 06, 2016

USDJPYM30.png

USD/JPY is expected to trade with a bearis bias. The pair recorded a succession of lower tops and lower bottoms since September 2, which confirmed a bearish outlook. The descending 50-period moving average acts as resistance, which should continue to push the prices lower. Furthermore, the relative strength index is still below its neutrality area at 50. As long as 103.15 is not surpassed, the pair is likely to drop toward 102.10 and even to 101.70 as possible.

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 102.10. A break below this target will move the pair further downwards to 101.70. The pivot point stands at 103.15. 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 103.80 and the second one, at 104.35.

Resistance levels: 103.80, 104.35, 104.95

Support levels: 102.10, 101.70, 101.20

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