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

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Wave summary:

We have finally seen the expected acceleration higher from 1.5271. We will continue to look for more upside and upside acceleration towards 1.5969 and likely even closer to 1.6491 as the next upside targets.

In the short term, the support is seen at 1.5515 and then at 1.5460.

In the longer term, much more upside progress is expected for a rally back to and above the 1.9023 high.

Trading recommendation:

We are long EUR from 1.5515 and will move our stop higher to 1.5260. If you are not long EUR yet, then buy near 1.5515 and use the same stop at 1.5260.

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Elliott wave analysis of EUR/JPY for October 5 - 2016

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Wave summary:

The rally is back above the triangle resistance-line near 115.20 is not consistent with the expected final decline to 104.15. The break above resistance at 115.20 has revived the "old" bull scenario indicating the long term corrective decline from 149.56 was completed with the test of 109.48 in late June and all the price-action since then has been part of a new impulsive rally.

In the short term, we would like to see resistance at 116.37 and more importantly at 118.47 be taken out too, as it will confirm the impulsive rally back to and above the mid-May 2014 high at 149.56.

Short-term support is now seen at 112.96, and this support should act as a floor for the next rally above 116.37 and even better 118.47.

Trading recommendation:

As we have been stopped out, we will be looking for a new buying opportunity at 113.20 with stop placed at 112.00.

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Technical analysis of NZD/CAD for October 5, 2016

NZD/CAD is clearly trading down after breaking the consolidation channel. The pair broke below both the Moving Averages 50 and 200 and is currently trading right at the 50MA which should act as a strong resistance.

After the channel breakout, the distance down can be equal to the first wave down which is reflected on the Fibonacci applied to the overall trend.

Consider selling NZD/CAD while it is trading near 0.9505 resistance level, targeting either 23.6% (0.9410) or 0% (0.9327). The stop loss should be just above 200 MA, approximately at 0.9550.

Support: 0.9464, 0.9411, 0.9327

Resistance: 0.9506, 0.9550

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Technical analysis of AUD/CAD for October 5, 2016

Seemingly, AUD/CAD has found the strong resistance near 1.0150 and after forming double top started to move lower. The pair broke below the ascending channel and both the 50 and 200 Moving Averages.

Fibonacci applied to the channel breakout point shows that AUD/CAD broke below the 23.6% support level (1.0035) and after a corrective wave up rejected 61.8% Fibs (1.0095).

Overall, it looks like the trend is about to change to the downside, or at least a correction down can be expected. Consider selling AUD/CAD at the current level (1.0070) targeting 0% Fibs (1.0000) which is also a strong psychological support level. The stop loss should be just above 1.1000.

Support: 1.0058, 1.0035, 1.0000

Resistance: 1.0077, 1.0095

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EUR/NZD analysis for October 05, 2016

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Recently, EUR/NZD has been moving upwards. As I expected, the price tested the level of 1.5644 in a high volume. The 1H time frame shows the price has broken the trading range (re-accumulation) and may go higher. Be careful when selling EUR/NZD at this stage and watch for buying opportunities on the dips. Target level is set at the price of 1.5825 and 1.5920

Fibonacci Pivot Points:

Resistance levels

R1: 1.5640

R2: 1.5650

R3: 1.5665

Support levels:

S1: 1.5615

S2: 1.5610

S3: 1.5595

Trading recommendations for today: watch for buying opportunities on the dips.

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NZD/USD intraday technical levels and trading recommendations for October 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 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 0.7250 to secure some profits. T/P levels should be located at 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 when the current bearish swing extends below 0.7100.

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

Bearish persistence below the demand level at 1.3550 enhanced the bearish scenario towards the current price levels around 1.2700 (nearest bearish projection target).

Today, price action should be watched for a short-term BUY entry. Initial bullish targets should be located at 1.2800 and 1.2900. S/L is recommended to be set as daily closure below 1.2700.

On the other hand, the GBP/USD pair remains trapped inside the depicted consolidation range between 1.2700 and 1.3550 until breakout occurs in either direction.

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Analysis of gold for October 05, 2016

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Since our previous analysis, gold has been trading downwards. The price tested the level of $1,266.35 in a high volume. Using the market profile analysis, I found strong downward momentum and peak area (resistance) at the price of $1,274.94 on the 30M time frame. The price is respecting that level, which is a sign that we may see downward continuation. I placed simple moving average with 48 period and found successful rejection. Watch for selling opportunities. Besides, there is an intraday upward trendline. Watch for breakout to confirm downward continuation. Downward target is set at the price of $1,250.79.

30 minutes Fibonacci pivot points:

Resistance levels:

R1: 1,276.70

R2: 1,277.05

R3: 1,277.75

Support levels:

S1: 1,275.30

S2: 1,274.90

S3: 1,274.25

Trading recommendations for today: Watch for selling opportunties. Take profit level is set at the price of $1,250.79.

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

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Technical analysis of NZD/USD for October 05, 2016

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Overview:

  • As expected the NZD/USD pair continues to move downwards from the level of 0.7238. Yesterday, the pair dropped from the level of 0.7238 (this level of 0.7238 is coincides with the ratio of 38.2% Fibonacci Expansion) to the bottom around 0.7120. Today, the first resistance level is seen at 0.7238 followed by 0.7332, while daily support 1 is seen at 0.7133. According to the previous events, the NZD/USD pair is still moving between the levels of 0.7238 and 0.7133; for that we expect a range of 105 pips. If the NZD/USD pair fails to break through the support level of 0.7133, the market will decline further to 0.7086 in order to test the double bottom. This would suggest a bearish market because the RSI indicator is still in a negative area and does not show any trend-reversal signs. The pair is expected to drop lower towards at least 0.7133 with a view to test the first support. On the contrary, if a breakout takes place at the resistance level of 0.7332 (the double top), then this scenario may become invalidated.
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Technical analysis of USD/CHF for October 05, 2016

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Overview:

  • The USD/CHF pair continues moving upwards from the level of 0.9750. This week, the pair rose from the level of 0.9750 to a top around 0.9818. Right now, the price is seen at 0.9768. There are no changes to my technical outlook. The bias remains bullish in nearest term testing 0.9860 or higher. Today, the first resistance level is seen at 0.988 followed by 0.9860, while daily support 1 lies 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 manages 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. Additionally, 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 will 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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Daily analysis of major pairs for October 5, 2016

EUR/USD: The EUR/USD pair is volatile and directionless, having tested the support line at 1.1150 and the resistance line at 1.1250 (last week). Price needs to go above the resistance line or below the support line, to form a bearish or bullish bias. This is what is expected before the end of the week.

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USD/CHF: This pair shot upwards and rammed into the resistance level at 0.9800, after which there was some bearish correction. The EMA 11 is above the EMA 56, and the Williams' % Range period 20 is around the overbought region, which shows that bulls are very active in the market. Further bullish movement is expected, though bulls would experience a stubborn challenge at the resistance level of 0.9900.

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GBP/USD: The Cable has gone upwards by 220 pips this week. Price trended downwards on Monday and Tuesday and the pair is poised to go further downwards, targeting the accumulation territories at 1.2700 and 1.2650, which might be breached today or tomorrow.

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USD/JPY: The USD/JPY pair has trended upwards by 160 pips this week, which has resulted in a nice bullish bias. The EMA 11 is above the EMA 56 and the RSI period 14 has gone above the level 50. The next target for bulls are located at the supply levels of 103.00, 103.50, and 104.00. Immediate demand levels would resist any bearish attempts on the way.

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EUR/JPY: This cross pair rallied seriously on Tuesday, following a bullish signal that was noticed on Monday. There is now a clean Bullish Confirmation Pattern on the chart, which signals more northwards movement. Bulls would soon target the supply zones at 115.50 and 116.00 today or tomorrow.

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Global macro overview for 05/10/2016

Global macro overview for 05/10/2016:

The ADP Non-Farm Employment Change is the most important data release ahead of NFP due on Friday. The market participants expect a slight drop in newly employed people to 166k from 177k a month ago. That's a respectable advance, but a softer gain will stoke questions about Friday's official payrolls release. Moreover, it looks like the last quarter job creations may be lower than most market analysts suggest, and the 5% unemployment rate will not decrease any further. Nevertheless, the FED policymakers will keep an eye on both ADP and NFP data in order to justify the interest rate hike in December.

Let's now take a look at the US Dollar technical picture on the daily time frame. The market is patiently trading inside the contracting triangle and waiting for a breakout. None of the important levels has been violated, so the next support is seen at the level of 95.05 and the next resistnace lies at the level of 96.52.

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Global macro overview for 05/10/2016

Global macro overview for 05/10/2016:

The PMI Composite data for the Eurozone has been released this morning, and it negatively surprised the market participants. The Final Eurozone Composite Output Index came at 52.6 (Flash: 52.6, August Final: 52.9), and the Final Eurozone Services Business Activity Index was released at 52.2 (Flash: 52.1, August Final: 52.8). The rate of economic expansion across the Eurozone eased to a 20-month low in September. Growth slowed in Germany, Italy, Spain and Ireland, offsetting a mild acceleration in France. "France was the only one of the 'big-four' nations to signal an accelerated increase in economic output in September", IHS Markit reported. In conclusion, it is not good data for the Eurozone economy for the last month, and it will definitely influence the global markets behavior.

Let's now take a look at the EUR/USD technical picture on the 4H time frame chart after the data was released. A marginal new low was made yesterday, but so far, no following action from the bear camp side has been seen. The market is still trading inside of the congestion zone between the technical support at 1.1120 and technical resistance at 1.1254. We are waiting for a breakout.

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EUR/AUD profit target reached, continue to buy

Price has reached our profit target from yesterday. We look to buy above 1.4715 support (channel exit) for a push up to 1.4885.

RSI (21) has made a bullish exit as expected and this keeps our bullish view on EUR/AUD.

Buy above 1.4715. Stop loss at 1.4570. Take profit at 1.4885.

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NZD/USD profit target reached, prepare to sell again

Price dropped perfectly to our profit target from yesterday. We look to continue to sell below major resistance at 0.7220 (Fibonacci retracement, pullback resistance) for a further drop to 0.7120.

RSI (21) has made multiple bearish exits signalling a big bearish move is in progress.

Sell below 0.7220. Stop loss at 0.7300. Take profit at 0.7120.

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USD/JPY profit target reached, continue to buy

Price has made a push up and reached our profit target from yesterday. We look to continue to buy above 102.45 support for a further push up to 103.60.

RSI (34) has made a bullish exit from which signalled our bullish view on USD/JPY very well.

Buy above 102.45. Stop loss at 101.85. Take profit at 103.60.

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AUD/NZD surpassed strong resistance, time to start buying

Price has broken significant resistance at 1.0570 which opens the door up to 1.0675. Our stop loss is at 1.0510 which is the last swing low.

RSI (21) has made a bullish exit signalling that a bullish move is in progress.

Buy above 1.0570. Stop loss at 1.0510. Take profit at 1.0675.

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Technical analysis of USD/CAD for October 5, 2016

General overview for 05/10/2016:

The wave (2) have evolved into a more complex and time-consuming structure that has been labeled as (a) (b)(c) pattern with a top at the level of 1.3215. 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

1.3215 - 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 EUR/JPY for October 5, 2016

General overview for 05/10/2016:

The top for the wave -iii- looks to be in place, so now it is time for wave -iv- to develop to the downside. The first projected target level for this corrective wave is at the level of 114.66 and any break out below this level will be considered bearish. Please notice, that the overall impulsive bullish wave progression to the upside hasn't been completed yet and higher price levels are expected when the correction is completed.

Support/Resistance:

112.07 - Technical Support

112.83 - WS1

113.50 - Weekly Pivot

114.66 - Intraday Support

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 5, 2016

The Dollar index has managed to break above short-term resistance levels and has reached the 96.50 level only to get rejected once again. Important weekly resistance is found at 96.50, so we expect to find it difficult for this level to be broken upwards with only one try.

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Red line - upper triangle boundary

Blue line - lower triangle boundary

Black line - horizontal resistance

The Dollar index has broken above the red trend line resistance and is now back testing it. The horizontal black trend line is important and only a daily close above it will be a confirmed bullish signal. Trend remains bullish for the short-term as prices make higher highs and higher lows.

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Green line - important trend line support

The weekly candle holds above the important green trend line support but also below the weekly Ichimoku cloud. Price is trading alongside the upward sloping green trend line and as long as it does, bulls will be in control. However another rejection at 96.50 will be a bearish signal.

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Technical analysis of gold for October 5, 2016

For the last few weeks I've been bullish about Gold as long as price was above $1,300. I warned several times that a break below $1,300 would be a bearish sign and that prices would need to make a deeper pullback towards $1,250-$1,200. Yesterday we saw support fail and Gold crash.

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Red line - resistance

Blue line - support (broken)

Gold price has broken through the $1,300 price level which was my important medium-term support. Price crashed towards $1,270. Bulls only needed to hold above $1,300 to have hopes for resuming the uptrend. They did not succeed in holding above support. On the other hand, heavy selling pushed price downwards towards $1,270.

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What does this decline imply? This decline implies that the entire move from $1,045 to $1,375 is complete and over. A correction has already started. The 38% Fibonacci retracement is at $1,250 and this is the first level I expect to see the decline to stop and mount a reversal to the upside. However if we are only in the first part of the downward correction in Gold, we are now near completion of wave A, waiting for a wave B bounce and a wave C decline. My longer-term view remains bullish as I believe Gold has made a long-term reversal low at $1,045.The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of USD/JPY for October 05, 2016

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Further advance is expected in USD/JPY. The pair is showing strong upward momentum, and is likely to challenge its resistance at 103.15. Meanwhile, the rising 50-period moving average acts as a support, and should continue pushing the prices higher. Besides, a key support base at 102.00 has been formed, and the downside potential should be limited by this level. In addition, the relative strength index is above its neutrality area at 50, and lacks downward momentum.

On Tuesday, US stocks extended their losses while the U.S. dollar strengthened as expectations of the Federal Reserve raising interest rates sooner rather than later grew. The Dow Jones Industrial Average dropped 85 points (-0.5%) to 18,168, the S&P 500 declined 10 points (-0.5%) to 2,150, and the Nasdaq Composite was down 11 points (-0.2%) to 5,289.

Utilities, telecoms and real estate shares led the market to the downside.

Tuesday's decline in stocks followed hawkish comments from Cleveland Fed President Loretta Mester and Richmond Fed President Jeffrey Lacker, who argued in favor of raising interest rates sooner.

To conclude, as long as 102.00 holds on the downside, we expect a new bounce to 103.15 and even to 103.65.

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 103.15 and the second one at 103.65. In the alternative scenario, short positions are recommended with the first target at 101.60 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 101.25. The pivot point lies at 102.00.

Resistance levels: 103.15, 103.65, 103.95

Support levels: 101.60, 101.25, 100.90

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Technical Analysis of Silver for October 05, 2016.

Technical outlook and chart setups:

Silver has broken below the consolidation structure around $18.60 levels and is still expected to continue decline to $16.00 level at least. The wave structure also indicates that the metal is in its C wave correction within the 3 wave A-B-C drop that began from $21.10 levels earlier. Please note that the metal may produce intraday rallies towards $18.20/30 levels which should be considered as opportunities to sell again. The metal looks to be in its 3rd wave within 5 waves into the C wave as depicted here, hence expect lower levels. It is recommended to remain short for now and look to add further at higher levels. Immediate resistance is seen at $20.10 levels, while support lies at $17.00 levels.

Trading recommendations:

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

Good luck!

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Technical analysis of USD/CHF for October 05, 2016

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USD/CHF is expected to trade with a bullish bias above 0.9750. Despite the recent consolidation, the pair is still in an uptrend. Meanwhile, a support base at 0.9750 has been formed, and the downside room should be limited by this level. Meanwhile, the 50-period moving average is heading upward, and maintains the bullish bias. Additionally, the relative strength index lacks downward momentum. U.S. government bonds weakened again with the benchmark 10-year Treasury yield advancing to 1.683% from 1.624% Monday.

The firmer U.S. dollar caused gold to plunge 3.3% to $1,267 an ounce, the biggest slide since 2013. The yellow metal was last seen at levels below $1,300 on June 24. It is now below its 200-day moving average, the first time since early February. Silver sank 5.1% to $17.78 an ounce.

Therefore, as long as 0.9750 holds on the downside, look for a new rise to 0.9830 at first. A break above this level would open the path to further advance toward 0.9900 as possible.

Resistance levels: 0.9830, 0.9900, 0.9945

Support levels: 0.9715, 0.9690, 0.9645

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Technical analysis of NZD/USD for October 05, 2016

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NZD/USD is likely to extend a downside movement. The pair is showing strong downward momentum after the bearish breakout of a rising trend line since September 30. In addition, the process of lower highs and lower lows remains intact, which should confirm a negative outlook. Besides, the descending 50-period moving average is playing a resistance role. In addition, the relative strength index broke below its 30 level. To sum up, as long as 0.7250 holds on the upside, the pair is likely to drop to 0.7155 at first, and then to 0.7130 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 0.7155. A break below this target will move the pair further downwards to 0.7130. The pivot point stands at 0.7250. In case the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, long positions are recommended with the first target at 0.7300 and the second one at 0.7330.

Resistance levels: 0.7300, 0.7330, 0.7350

Support levels: 0.7155, 0.7130, 0.7095

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Technical analysis of GBP/JPY for October 05, 2016

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GBP/JPY is expected to continue its rebound. The pair recorded a succession of higher tops and higher bottoms, which confirms a positive view. The rising 20-period and 50-period moving averages are playing support roles and should push the prices higher. A support base at 130.30 has been formed and should limit the downside potential. In addition, the relative strength index is bullish above its neutrality level at 50 and lacks downward momentum. As long as 130.30 holds on the downside, look for a further upside toward 131.35 and even 131.95 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 131.35 and the second one at 131.95. In the alternative scenario, short positions are recommended with the first target at 129.95 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: 131.35, 131.95, 132.45

Support levels: 130.05, 129.65, 129.10

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Gold Technical Analysis for October 05, 2016.

Technical outlook and chart setups:

Gold finally broke below $1,302.00 level yesterday as expected earlier but it did not produce the counter trend rally towards $1,330.00 levels!! The metal broke out of the triangle structure and rushed through $1,370.00 levels before pulling back. The metal is seen to be trading at $1,274.00/75.00 levels for now, looking to rally through $1,390.00 before finding resistance. The wave structure indicates that the metal is expected to drop lower at least through $1,250.00 level before it produces a meaningful retracement. Please note that the metal is setting up for a deeper correction lower before the rally resumes. It is recommended to remain flat now and look to sell around $1,390.00/92.00 levels again. Immediate resistance is now seen at $1,305.00/10.00 levels, while support is at $1,250.00 levels respectively.

Trading recommendations:

Remain flat for now. Look to short at $1,390.00/92.00 levels, stop above $1,310.00 levels, target $1,250.00

Good luck!

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

Technical analysis of EUR/USD for Oct 05, 2016

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When the European market opens, the economic calendar will be replenished with some reports such as German 10-y Bond Auction, Retail Sales m/m, Final Services PMI, German Final Services PMI, French Final Services PMI, Italian Services PMI, and Spanish Services PMI. The US will release the economic data too such as Crude Oil Inventories, Factory Orders m/m, ISM Non-Manufacturing PMI, Final Services PMI, Trade Balance, and ADP Non-Farm Employment Change. So amid the reports, EUR/USD will move swith medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Breakout BUY Level: 1.1261.

Strong Resistance:1.1255

Original Resistance: 1.1244.

Inner Sell Area: 1.1233.

Target Inner Area: 1.1207.

Inner Buy Area: 1.1181.

Original Support: 1.1170.

Strong Support: 1.1159.

Breakout SELL Level: 1.1153.

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

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

Technical analysis of USD/JPY for Oct 05, 2016

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In Asia, today Japan will not release any economic data, but the US will release a string of reports such as Crude Oil Inventories, Factory Orders m/m, ISM Non-Manufacturing PMI, Final Services PMI, Trade Balance, and ADP Non-Farm Employment Change. 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: 103.33.

Resistance 2: 103.13.

Resistance 1: 102.92.

Support 1: 102.68.

Support 2: 102.47.

Support 3: 102.27.

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 USDX for October 05, 2016

The index strengthened during yesterday and now it's facing the resistance level of 96.27, where a breakout should happen in order to extend gains toward the 96.74 resistance zone. However, if the pullback is strong enough at this stage, then we can expect a decline to test the 95.79 level, where the 200 SMA lies on H1 chart.

USDXH1.png

H1 chart's resistance levels: 96.27 / 96.74

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 96.27, take profit is at 96.74 and stop loss is at 95.79.

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

Daily analysis of GBP/USD for October 05, 2016

The sterling refreshed it's 30-year low in Tuesday's session and the weakness worsened across the board, as the pair is well consolidated below the 200 SMA on H1 chart. However, the oversold conditions are easily recognized at this stage. One could expect a rebound, at least towards the psychological level of 1.2800, but a breakout below the 1.2717 zone should open the doors to test the 1.2650 price level.

GBPUSDH1.png

H1 chart's resistance levels: 1.2800 / 1.2850

H1 chart's support levels: 1.2717 / 1.2650

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 1.2717, take profit is at 1.2650 and stop loss is at 1.2782.

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