USD/CAD intraday technical levels and trading recommendations for October 4, 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) is needed to enhance bearish momentum in the market.

However, On August 18, signs of bullish recovery were manifested around the price level of 1.2830 which led to the current bullish breakout above 1.3000.

This week, daily persistence below 1.2950 (61.8% Fibonacci level) should be achieved 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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NZD/USD intraday technical levels and trading recommendations for October 4, 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 upper limit of the depicted channel around 0.7400.

On July 12, the price zone of 0.7350 - 0.7400 (upper limit of the depicted channel) enhanced a quick bearish decline towards the price levels of 0.6960 where the current bullish swing was initiated.

Recently, the price zone between 0.7470-0.7500 has been corresponding to the upper limit of the depicted movement channel where bearish rejection and a valid SELL entry were expressed a month ago.

S/L should be lowered to 0.7400. T/P levels should be located at 0.7240, 0.7160 and 0.7060.

On the other hand, the price zone between 0.6960-0.6860 constitutes a significant support zone to be watched for a valid BUY entry if the current bearish swing extends below 0.7100.

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Intraday technical levels and trading recommendations for GBP/USD for October 4, 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 (Fundamental Reasons).

Bearish persistence below the demand level at 1.3550 enhances the bearish scenario towards 1.2700 (nearest bearish projection target) where price action should be watched for a 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 for sell entries as well).

Otherwise, the GBP/USD pair will remain trapped within the depicted consolidation range between 1.2700 and 1.3550.

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Intraday technical levels and trading recommendations for EUR/USD for October 4, 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, June and August).

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 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 seen on August 26.

On September 6, evident bullish recovery and a temporary bullish breakout above 1.1250 were expressed, but evident bearish pressure was expressed on the EUR/USD pair on September 16.

Bearish closure below 1.1250 (supply level 1) should be defended to maintain enough bearish pressure and enhance the bearish side in the market again. Initial bearish targets should be located at 1.1050 and 1.0990.

On the other hand, a daily candlestick closure above 1.1250 (Supply level 1) allows bullish advance towards 1.1400 (Supply level 2) where a better SELL entry can be offered (a low probability scenario).

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Gold analysis for October 04, 2016

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Since our previous analysis, gold has been trading downwards. The price tested the level of $1,306.63. According to the 4H time frame, I found a large falling wedge formation (bullish formation). The price is in the middle of the falling wedge. Anyway, according to the 30M time frame and using market profile analysis, I found a point of control for yesterday at the price of $1,315.50. Today, I found successful test of supply at the level of $1,307.45, which is a sign that Gold may rise. Only if the price breaks the level of $1,307.50, we may see downward continuation.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,314.60

R2: 1,316.65

R3: 1,319.95

Support levels:

S1: 1,308.00

S2: 1,306.00

S3: 1,302.75

Trading recommendations for today: Watch for buying opportunities. Take profit level is set at the price of $1,315.50.

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EUR/NZD analysis for October 04, 2016

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Recently, EUR/NZD has been moving downwards. The price tested the level of 1.5305 in an average volume. According to the daily time frame, the price has broken supply trendline and is testing the 21SMA. It is still bullish according to the daily time frame. The 1H time frame shows the price has broken the trading range, but there is still upward trendline in the background, which the price needs to break to confirm downward continuation. My advice is to watch for potential buying positions. If the price gets back into the trading range (create fake breakout) and breaks the previous swing lows, EUR/NZD may go upward. The breakout of 1.5370 may confirm upward movement. Upward targets are set at the price of 1.5400 and 1.5460.

Fibonacci Pivot Points:

Resistance levels

R1: 1.5460

R2: 1.5475

R3: 1.5505

Support levels:

S1: 1.5400

S2: 1.5386

S3: 1.5360

Trading recommendations for today: watch for buying opportunities above 1.5370.

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Technical analysis of NZD/USD for October 04, 2016

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Overview:

  • The NZD/USD pair was argumentative as it was trading in a narrow sideways channel, the market showed signs of instability. Amid the previous events, the price is still moving between the levels of 0.7238 and 0.7332. Resistance and support are seen at the levels of 0.7332 and 0.7238 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. The current price is seen at 0.7258 which represents a key level today. Also, the daiy pivot is already set at the point of 0.7258. The level of 0.7332 will act as the first resistance today. Hence, if the pair fails to pass through the level of 0.7332, the market will indicate a bearish opportunity below the strong resistance level of 0.7332. Sell deals are recommended below the level of 0.7332 with the first target at 0.7238 . If the trend breaks the support level of 0.7238, the pair is likely to move downwards continuing the development of a bearish trend to the level 0.7180.
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Technical analysis of USD/CHF for October 04, 2016

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Overview:

  • The USD/CHF pair continues to move upwards from the level of 0.9750. Yesterday, the pair rose from the level of 0.9750 to a top around 0.9797. Today, the first resistance level is seen at 0.988 followed by 0.9860, while daily support 1 is seen at 0.9750 (61.8% Fibonacci retracement). According to the previous events, the USD/CHF pair is still moving between the levels of 0.9750 and 0.9860; so we expect a range of 110 pips. Furthermore, if the trend is able to break out through the first resistance level at 0.9797, we should see the pair climbing towards the double top (0.9818) to test it. Therefore, buy above the level of 0.9797 with the first target at 0.9818 and further to 0.9860 in order to test the daily resistance 1. Also, it might be noted that the level of 0.9860 is a good place to take profit because it will form a new double top. On the other hand, in case a reversal takes place and the USD/CHF pair breaks through the support level of 0.9750, a further decline to 0.9707 can occur which would indicate a bearish market. Overall, we still prefer the bullish scenario which suggests that the pair will stay above the zone of 0.9750 today.
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Global macro overview for 04/10/2016

Global macro overview for 04/10/2016:

The PMI Construction data from Britain has just been released and it is better than expected. Market participants anticipated the figure to be below the fifty points level just as a month ago (49.1 points exactly), but the released score was at the level of 52.3 points, a way better than expected. The British PMI data, both from construction and manufacturing sectors remain strong ad no real damage has been done to the UK economy so far. The reason behind such good figures might lay in a fact that the UK is still formerly a part of the eurozone as the official separation from the EU has been scheduled for March 2017. Nevertheless, Brexit uncertainty still prevails regardless of the better data.

Let's now take a look at the GBP/USD technical picture in 4H time frame after the data was published. As we can see, the GBP/USD pair posted a new, 31-year lows of 1.2757 despite the better than expected data. The pair is still trading inside the golden channel, below the key resistance at the level of 1.2801.

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Global macro overview for 04/10/2016

Global macro overview for 04/10/2016:

The Reserve Bank of Australia decided to keep the target 'cash rate' unchanged at the level of 1.50%, just as expected. In the statement, Governor Philip Lowe, said the global economy is growing at a slower pace than anticipated and Chinese economic growth seems to be moderating as well. This was the main reason behind the interest rate decision, as RBA says steady rate are consistent with GDP growth and inflation targets. Moreover, Governor Lowe said that the rising Australian Dollar could complicate economic adjustment as the inflation is expected to remain low for some time. In conclusion, plenty of dovish remarks from the RBA board suggest the RBA might wait for a FED decision until December to see whether they will hike the interest rate first.

Let's now take a look at the AUD/USD technical picture after the RBA interest rate decision. The reaction was somewhat muted so far, but the spike down after the news has been almost fully retraced. Currently, on the bigger time frame, the market is still trading below the golden trend line which suggests the bull camp still did not throw the towel. The next key resistance is seen at the level of 0.7708 - 0.7763 and the key support is seen at the level of 0.7441.

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Technical analysis of USD/CAD for October 4, 2016

General overview for 04/10/2016:

The two key levels, marked as gray rectangles, have not been tested yet as the market is trading sideways. The wave (2) might evolve into a more complex and time-consuming structure. When this corrective cycle is completed, the wave (3) to the downside should start. The longer-term bias is bearish and one more wave to the downside should be expected in this pair.

Support/Resistance:

1.2910 - WS2

1.3000 - Technical Support

1.3028 - 1.3048 - Demand Zone

1.3066 - Intraday Support

1.3144 - Weekly Pivot

1.3191 - Intraday Resistance

1.3241 - WR1

1.3261 - 1.3281 - Supply Zone

Trading recommendations:

Day traders should refrain from trading until a clearer trading setup occurs.

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Technical analysis of USD/JPY for October 04, 2016

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Upside movements are expected to prevail in USD/JPY. The pair broke above the upper boundary of the Bollinger Bands, which should indicate a continuation of the bullish trend. The upward momentum is further reinforced by a rising 50-period moving average, which acts as a support. At the same time, the relative strength index is supported by a rising trend line since Sept 29, and calls for further upside.

On Monday, U.S. stocks pulled back after Friday's rally, with shares in real estate and utilities sectors posting the biggest losses. The Dow Jones Industrial Average declined 54 points (-0.3%) to 18,253, the S&P 500 fell 7 points (-0.3%) to 2,161, and the Nasdaq Composite was down 11 points (-0.2%) to 5,300. On the economic front, the U.S. Institute for Supply Management said its manufacturing index showed an expansion reading of 51.5 in September (vs. 50.4 expected), up from a contraction reading of 49.4 in August.

To sum up, as long as 101.50 holds on the downside, look for a new rise toward 102.80 and then to 103.15.

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 102.80 and the second one at 103.15. In the alternative scenario, short positions are recommended with the first target at 101.25 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 100.90. The pivot point lies at 101.50.

Resistance levels: 102.80, 103.15, 103.45

Support levels: 101.25, 100.90, 99.60

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Technical analysis of EUR/JPY for October 4, 2016

General overview for 04/10/2016:

The intraday resistance at the level of 114.38 has been taken out, but so far the bullish rally does not look so much impulsive as it should. Nevertheless, the market trades above all moving averages and above the weekly pivot, so the intraday outlook is still bullish. Only a clear, sustained break out below the weekly pivot would invalidate the bullish outlook.

Support/Resistance:

112.07 - Technical Support

112.25 - Intraday Support

112.83 - WS1

113.50 - Weekly Pivot

114.38 - Intraday Resistance

114.78 - WR1

115.54 - WR2

Trading recommendations:

Day traders should refrain from trading until a more clearer trading setup occurs.

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Technical analysis of USDX for October 4, 2016

The Dollar index has broken short-term resistance levels and is testing horizontal resistance where a previous double top rejection occurred. Short-term trend is bullish with increased chances of making medium-term trend bullish again as we are heading towards 96.50 resistance.

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Red line - resistance

Black line - horizontal resistance

Blue line -support

The Dollar index is above the 4-hour Ichimoku cloud and is breaking above and out of the triangle pattern. Next resistance is at the previous highs at 96.50. A clear break above that level will open the way for a push towards 97.50. Support is found at 95.70. The next one is at 95.

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Green line - important medium-term support

The Dollar index is holding above the green trend line support and is now testing the Ichimoku cloud resistance at 96.50. A break above it will be a bullish sign. Bulls will need to defend the green trend line support no matter what. Otherwise a huge wave of sellers will come. A break out above the weekly cloud will open the way for new highs.

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Technical analysis of gold for October 4, 2016

Gold price remains very weak making lower lows and lower highs just above the $1,300 support area. The fact that Gold has not reversed yet to the upside decreases the chances of that happening and increases the chances of a move towards $1,280 before any upside bounce.

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Blue line - support

Red line -resistance

Gold price has broken through the short-term support trend line as it continues to be in a short-term down trend. Short-term support is now at $1,300 and resistance at $1,325. Only a break above $1,325 will change short-term trend and only a break above the red trend line resistance could signal a longer-term breakout.

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Black line - medium-term trend support trend line

Red lines - trading range

Gold price is below the Daily Ichimoku cloud and this is not a good sign for bulls. Although price remains inside the downward sloping trading range, price has broken the upward sloping trend line support from $1,045. Next important daily support is at $1,200-$1,250 area if we fail to hold above $1,300.

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Technical analysis of USD/CHF for October 04, 2016

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USD/CHF is expected to trade with bullish bias above 0.9700. The pair remains on the upside within a bullish channel, which emerged on September 30. At the same time, the 50-period moving average is heading upward, and acts as a support role. The relative strength index is above its neutrality area at 50, and lacks downward momentum. The US Institute for Supply Management said its manufacturing index showed an expansion reading of 51.5 in September (vs. 50.4 expected), up from a contraction reading of 49.4 in August.

To sum up, as long as 0.9700 holds on the downside, look for a further advance to 0.9790 and even to 0.9820 in extension.

Resistance levels: 0.9790, 0.9825, 0.9845

Support levels: 0.9670, 0.9645, 0.9605

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Technical analysis of NZD/USD for October 04, 2016

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NZD/USD is expected to trade in a higher range as the bias remains bullish. The pair is consolidating after having broken below its 20-period moving average. The relative strength index is below its neutrality level at 50 and lacks upward momentum. Nevertheless, the rising 50-period moving average is playing a support role and maintains the upside bias. Additionally, 0.7260 represents a significant key support level, which should limit the downside potential. As long as 0.7260 is not broken, look for a technical rebound toward 0.7330. A break above this level would call for a further upside toward 0.7350.

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 0.7330 and the second one at 0.7350. In the alternative scenario, short positions are recommended with the first target at 0.7225 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 lies at 0.7260.

Resistance levels: 0.7330, 0.7350, 0.7405

Support levels: 0.7225, 0.7200, 0.7175

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Technical analysis of GBP/JPY for October 04, 2016

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GBP/JPY is expected to continue its upside movement. The pair broke above the upper boundary of the Bollinger Band with strong momentum. The relative strength index is bullish above its neutrality level at 50 and is heading upward. A support base has been formed around 130.30, which should limit the downside potential. Additionally, the 20-period moving average is turning up. As long as the key level at 130.30 is not broken, look for a further upside toward 131.95 and even 132.45 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 131.95 and the second one at 132.45. In the alternative scenario, short positions are recommended with the first target at 130.05 if the price moves below its pivot point. A break of this target is likely to push the pair further downwards, and one may expect the second target at 129.65. The pivot point lies at 130.30.

Resistance levels: 131.95, 132.45, 132.80

Support levels: 130.05, 129.65, 129.10

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Silver Technical Analysis for October 04, 2016.

Technical outlook and chart setups:

Silver rallied through $19.60/70 levels last week as expected and discussed and reversed sharply from there as seen on the 4H chart view. The metal has dropped to fresh lows at $18.70 levels and is seen to be trading at $18.86 levels for now. The wave structure also indicates that the metal has now completed its 3-wave corrective rally towards $19.60/70 levels and is expected to drop lower unfolding into 5 waves towards $18.20 levels at least. Please note that the metal might produce intraday rallies from current levels but they should remain well capped below $19.60/70 levels and it should be viewed as an opportunity to add further short positions ($19.30 levels). It is recommended to remain short for now and also look to add further at higher levels. Immediate resistance is seen at $20.10 level, while support is at $18.65 level respectively.

Trading recommendations:

Remain short for now, stop is above $20.05, a target is open.

Good luck!

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Gold Technical Analysis for October 04, 2016.

Technical outlook and chart setups:

Gold has hit yet another low at $1,307.00 just a few hours back before pulling higher. The yellow metal is seen to be trading at $1,311.00/12.00 levels for now, looking to produce a counter trend rally towards $1,330.00/31.00 levels before resuming lower again. The wave structure also indicates that the metal has unfolded into 5 waves from $1,343.00 through $1,307.00 level and is expected to produce a 3-wave corrective rally. Please note that fibonacci 0.618 resistance is also passing through $1,332.00 level as depicted here and a bearish reaction is expected if prices manage to reach there. It is recommended to take profits on short positions now and wait for opportunities to go short at higher levels. Immediate resistance is now seen at $1,340.00/43.00 levels, while support is at $1,306.00 levels respectively.

Trading recommendations:

Please book profits on short positions taken earlier. Aggressive trade long now, with stop at $1,302.00 and a target at $1,332.00

Good luck!

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Elliott wave analysis of EUR/NZD for October 4, 2016

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Wave summary:

Minor resistance at 1.5509 once again capped the upside keeping the sideways consolidation between 1.5298 - 1.5509 alive. We are still looking for a break above minor resistance at 1.5509 as the trigger for the next impulsive rally higher to 1.5969 and likely even higher to 1.6491.

Short term, we must accept the possibility of a spike below support at 1.5298 for a move closer to 1.5254 to complete wave [ii] and set the stage for wave [iii] higher.

Trading recommendation:

We are long EUR from 1.5515 with stop placed at 1.5120. If you are not long EUR yet, then buy near 1.5255 or upon a break above 1.5509 and use the same stop at 1.5120.

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Elliott wave analysis of EUR/JPY for October 4, 2016

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Wave summary:

The correction in wave ii is extending closer to the 61.8% corrective target at 114.54 and might even spike this resistance slightly, but wave ii should be close to completion for the next impulsive decline towards the ideal target near 104.15 to complete the long-term corrective decline from 149.56.

Short term, a break below minor support at 113.59 will indicate that wave ii is complete and wave iii lower to 108.03 has taken over on the way to 104.15.

Trading recommendation:

We are short EUR from 112.85 with stop placed at 115.45. If you are not short EUR yet, then sell near 114.90 or upon a break below 113.59 and use the same stop at 115.45.

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Technical analysis of EUR/USD for Oct 04, 2016

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When the European market opens, some economic data will be released such as PPI m/m, Spanish Unemployment Change, and Consumer Confidence. Today no economic reports are due in the US. Therefore, EUR/USD will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Breakout BUY Level: 1.1264.

Strong Resistance:1.1258

Original Resistance: 1.1247.

Inner Sell Area: 1.1236.

Target Inner Area: 1.1210.

Inner Buy Area: 1.1184.

Original Support: 1.1173.

Strong Support: 1.1162.

Breakout SELL Level: 1.1156.

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 Oct 04, 2016

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In Asia, Japan will release the 10-y Bond Auction and Monetary Base y/y. However, today the US will not released 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: 102.46.

Resistance 2: 102.26.

Resistance 1: 102.06.

Support 1: 101.81.

Support 2: 101.61.

Support 3: 101.41.

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 October 4, 2016

EUR/USD: The EUR/USD pair has become neutral in the short and long terms. The market did nothing significant last week (plus on Monday), save testing the resistance line at 1.1250 and the support line at 1.1150. A rise in momentum would force the market to go above that resistance line or below the support line, which may happen this week.

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USD/CHF: This pair is making some bullish attempt, which has triggered a new "buy" signal in the market. Although price may not trend upwards significantly, the resistance levels at 0.9750 could be tested and breached to the upside. A strong buying pressure is needed for the resistance level at 0.9800 to be reached.

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GBP/USD: Following the volatility contraction that was seen on the Cable last week, price trended downwards yesterday in tune with the dominant bearish bias. Price went down by 100 pips yesterday and it could go further south today. Any rallies here would be transitory in nature and would bring good opportunities to sell short.

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USD/JPY: By all indication, it is logical to seek long trades in USD/JPY right now. Price has been making some slow and steady bullish attempt, and this has resulted in a Bullish Confirmation Pattern on the 4-hour chart, which reveals that bulls are still willing to push price further upwards.

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EUR/JPY: The situation around this cross pair is similar to that of USD/JPY. Price has been making some slow and steady bullish attempts, and this has resulted in a Bullish Confirmation Pattern on the 4-hour chart, which reveals that bulls are still willing to push price further upwards.

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Daily analysis of USDX for October 04, 2016

USDX has been doing rebounds above the 200 SMA. It's looking for a clear direction on a short-term basis, as the index is facing the resistance zone of 95.79. A breakout higher should expose the 96.27 price level, which should strengthen the bullish bias. However, if USDX manages to pull back below the 95.00 zone, then it can reach the 94.50 level.

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H1 chart's resistance levels: 95.79 / 96.27

H1 chart's support levels: 95.49 / 95.01

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 95.79, take profit is at 96.27 and stop loss is at 95.31.

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

Daily analysis of GBP/USD for October 04, 2016

GBP/USD is finding support at the 1.2849 level, following UK Prime Minister Theresa May's remarks on the timing for "Brexit" next year. The pound sterling weakened across the board and refreshed its post-Brexit range's low. Now it is poised to test the psychological level of 1.2800. If the pair manages to do a rebound at the current levels, then it can reach the 1.2901 level.

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H1 chart's resistance levels: 1.2901 / 1.2948

H1 chart's support levels: 1.2849 / 1.2800

Trading recommendations for today: Based on the H1 chart, sell (short) orders only if the GBP/USD pair breaks a bearish candlestick; the support level is at 1.2849, take profit is at 1.2800 and stop loss is at 1.2897.

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