USD/CAD intraday technical levels and trading recommendations for October 17, 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, 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.

Otherwise, daily persistence 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 17, 2016

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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 recent bullish swing was initiated.

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

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.

Note that the price zone between 0.6960-0.6860 corresponds to the depicted long-term bullish channel. That's why, bullish rejection is anticipated.

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Intraday technical levels and trading recommendations for GBP/USD for October 17, 2016

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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).

Note that the GBP/USD pair was trapped inside the depicted consolidation range above 1.2700 until a bearish breakout took place on October 6.

Daily persistence below 1.2700 confirms the bearish Flag pattern.

A bearish projection target would be located around 1.2020 if enough bearish pressure is maintained below 1.2700.

On the other hand, any bullish pullback towards 1.2700 should be considered for a valid SELL entry. S/L should be set as daily closure above 1.2700.

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Intraday technical levels and trading recommendations for EUR/USD for October 17, 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.

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 again, but evident bearish pressure was expressed on the EUR/USD pair on September 16.

The recent 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 were located at 1.1050 and 1.0990.

Price action should be watched around the current price level of 1.0990 (Key-Level-1) for bullish rejection to be expressed.

On the other hand, daily persistence below 1.0990 allows a quick bearish decline towards 1.0825 (Key-Level-2) where price action should be considered again.

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EUR/NZD analysis for October 17, 2016

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Recently, EUR/NZD has been moving downwards. The price tested the level of 1.5412 in an average volume. Using the market profile analysis, I found today's point of control at the price of 1.5460. Anyway, I still expect lower price on EUR/NZD since the price broke trading range in the background, which is a sign of weakness. Watch for selling opportunities on the pullbacks. Take profit level is set at the price of 1.5350 and 1.5310.

Fibonacci Pivot Points:

Resistance levels

R1: 1.5560

R2: 1.6600

R3: 1.5650

Support levels:

S1: 1.5450

S2: 1.5425

S3: 1.5370

Trading recommendations for today: Watch for selling opportunities on the pullbacks.

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Gold analysis for October 17, 2016

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Since our previous analysis, gold has been trading sideways at the price of $1,253.00. On the 30M chart, I found Friday's point of control at the price of $1,255.77, using the market profile. The price respected Friday's point of control and sellers came in on the market. My advice is to watch for potential selling opportunities. First downward target is set at the price of $1,250.40 and second take profit level at $,1246.10. A short-term trend is bearish.

Fibonacci pivot points:

Resistance levels:

R1: 1,254.20

R2: 1,254.90

R3: 1,256.00

Support levels:

S1: 1,251.85

S2: 1,251.10

S3: 1,249.95

Trading recommendations for today: Watch for selling opportunities. First take profit level is set at the price of $1,250.40.

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Technical analysis of AUD/CHF for October 17, 2016

AUD/CHF seems to establish an uptrend after breaking the descending channel and rejecting 200- and then 50-Moving Averages. Based on the Fibonacci applied to the channel breakout point, the pair yet to test the nearest resistance at 23.6% Fibs (0.7567) and if broken could continue climbing even further up.

Currently AUD/CHF is trading right at the 38.2% Fibs (0.7506) support level that could invite more buyers. Consider buying AUD/CHF while the price is near the 0.7500 psychological level, targeting either 23.6% (0.7567) or 0% Fibs (0.7666). Stop loss should be just below the 50% Fibs (0.7456).

Support: 0.7506, 0.7456, 0.7407

Resistance: 0.7567, 0.7666

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Technical analysis of EUR/AUD for October 17, 2016

Clearly EUR/AUD is trending down but according to our Fibs applied to the channel breakout point, the pair is yet to test the nearest support at 23.6% Fibs (1.4366).

Consider holding short positions from 1.4730 or adding new short positions at the current rate (1.4440) targeting 23.6% Fibs (1.4365). Stop loss should be well above the 1.4500 psychological resistance.

Support: 1.4365

Resistance: 1.4505, 1.4618

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Technical analysis of USD/JPY for October 17, 2016

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USD/JPY is expected to trade with a bullish bias above 103.75. The pair stands firmly above its horizontal support at 103.75, which should limit the downside potential. At the same time, the 50-period moving average is heading upward, and maintains the bullish bias. Besides, the relative strength index is above its neutrality area at 50, and lacks downward momentum.

On Friday, U.S. stocks posted modest gains driven by financial shares. Better-than-expected earnings reported by JPMorgan, Citigroup and Wells Fargo, as well as solid economic data, which supported the case for a December rate increase, helped buoy the financial sector. The Dow Jones Industrial Average rose 39 points (+0.2%) to 18,138, the S&P 500 edged up less than 1 point to 2,132, and the Nasdaq Composite also added less than 1 point to 5,214.

On the economic data front, the U.S. Commerce Department reported that September retail sales increased 0.6% on month in September (as expected, vs. -0.2% in August). The Labor Department said producer-price index (PPI) was up 0.3% on month in September (vs. +0.2% expected, +0.0% in August). On the other hand, the University of Michigan released its October consumer sentiment index at 87.9 (vs. 91.8 expected, 91.2 in September), the lowest level since September 2015.

The U.S. dollar regained strength as robust September retail sales and PPI data reinforced expectations of the Federal Reserve moving toward a December rate increase. The currency help up well despite a subdued October University of Michigan consumer sentiment index.

The ICE U.S. Dollar Index gained 0.5% to 98.019 reclaiming all grounds lost on Thursday. The previous time the index closed above the 98.000 level was on March 2. It gained 2.7% in the past two weeks, the most since May 2015.

Therefore, as long as 103.75 is not broken, we expect a new rise to 104.65 at first, if breakout, open the path to further advance toward 105.00 as possible.

Trading Recommendation: The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. Therefore, long positions are recommended with the first target at 104.65 and the second one at 105.00. In the alternative scenario, short positions are recommended with the first target at 103.30 if the price moves below its pivot points. A break of this target is likely to push the pair further downwards, and one may expect the second target at 102.80. The pivot point lies at 103.75.

Resistance levels: 104.65, 105.00, 105.45

Support levels: 103.30, 102.75, 102.40

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Technical analysis of USD/CHF for October 17, 2016

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USD/CHF is expected to trade in a higher range as a bias remains bullish. The pair broke above its 20-period and 50-period moving averages and is holding on the upside. The relative strength index is above its neutrality level at 50 and lacks downward momentum. Additionally, 0.9870 represents a significant key support level, which should limit the downside potential.

As long as 0.9870 is support, look for a further upside toward 0.9925. A break above this level would call for a further advance toward 0.9945.

Resistance levels: 0.9925, 0.9945, 0.9985

Support levels: 0.9840, 0.9810, 0.9790

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Global macro overview for 17/10/2016

Global macro overview for 17/10/2016:

The most anticipated event of the week will be the ECB interest rate decision and asset purchase target this Thursday at 11:45am GMT. Moreover, the ECB press conference should be interesting to watch as ECB President Mario Draghi might face the question regarding the future of quantitative easing and a possible timing of tapering the program. Most of economists agree that Draghi will have to extend the QE program even longer mainly due to a lack progress in inflation increase: consumer prices are barely rising. The other side of the coin is a rather fragile economic recovery, that mostly depends on Germany. In conclusion, a highly anticipated economic event which might increase the volatility if the ECB will act differently than market participants expect.

Let's now take a look at the EUR/USD technical picture in 4H time frame. The price has dropped to the level of 1.0965, almost touching the important support at the level of 1.0958. Bears seem to be in full control over this market, but the growing bullish divergence between the price and momentum oscillator might suggest a temporary correction. The next resistance is seen at the level of 1.1043.

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Global macro overview for 17/10/2016

Global macro overview for 17/10/2016:

In his latest comments in the BBC Radio interview, Bank of England Deputy Governor Ben Broadbent said the UK inflation will likely to rise even above 2% over the two-year period. Moreover, he added: "Having a flexible currency is an extremely important thing, especially in an environment when your economy faces shocks that are different from your trading partners", which was clearly related to Brexit and the consequences for the financial markets. In conclusion, Broadbent is rather optimistic when he speaks about the inflation target as it seems to be quite overshoot. It has been years now when BoE was trying to increase the inflation target over 2%, but so far they were a mile away from reaching this level and there is no reason why this time it is different.

Let's now take a look at the GBP/USD technical picture in the hourly time frame. The market still trades in a narrow horizontal zone, just below all moving averages and the bigger time frame outlook supports the bearish view. The next support is seen at the level of 1.2087 and the next resistnace is seen at the level of 1.2273.

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Technical analysis of NZD/USD for October 17, 2016

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NZD/USD is expected to trade in higher range as the bias remains bullish. The pair has broken below its 20-period and 50-period moving averages and is consolidating on the downside. Nevertheless, 0.7070 is playing a key support role, which should limit the downside potential. The relative strength index is around its neutrality level at 50 and lacks downward momentum. As long as 0.7070 is not broken, look for a further upside toward 0.7145. A break above this level would call for a further advance toward 0.7175.

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 0.7145 and the second one at 0.7175. In the alternative scenario, short positions are recommended with the first target at 0.7030 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 0.7000. The pivot point lies at 0.7050.

Resistance levels: 0.7145, 0.7175, 0.7225

Support levels: 0.7030, 0.7000, 0.6970

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Technical analysis of GBP/USD for October 17, 2016

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Overview:

  • The GBP/USD pair continues moving downwards from the level of 1.2190 this morning. This week, the first resistance level is currently seen at 1.2272, the price is moving in a bearish channel now. According to the previous events, we expect the GBP/USD pair to trade between 1.2272 and 1.2091. So, the support stands at 1.2091, while daily resistance is found at 1.2272. Therefore, the market is likely to show signs of a bearish trend around the spot of 1.2200-1.2190. In other words, sell orders are recommended below the spot of 1.2190 with the first target at the level of 1.2091 and continue towards 1.2030 in order to test the double bottom on the daily chart. It should be noted that volatility is very high for that the GBP/USD pair is still moving between 1.2091 and 1.2272 in coming days. On the other hand, if the GBP/USD pair fails to break through the major resistance level of 1.1272 later, the market will move upwards continuing the development of the bullish trend to the level 1.2357 this week.
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Technical analysis of USD/CAD for October 17, 2016

General overview for 17/10/2016:

The market is trading around the weekly pivot at the level of 1.3169 after the golden trend line has been violated. The key level for bulls is the intraday resistance at the level of 1.3185. Currently, the wave (b) is in progress and this means the correction to the upside might be complex and time-consuming. Nevertheless, the near-term outlook is still bearish as there are uncompleted wave structures.

Support/Resistance:

1.3022 - WS1

1.3102 - Intraday Support

1.3169 - Weekly Pivot

1.3185 - Intraday Resistance

1.3236 - WR1

Trading recommendations:

As long as the intraday resistance is not clearly violated, day traders should consider opening sell orders as close as possible to the intraday resistance at the level of 1.3185. TP level should be set at the intraay support at the level of 1.3102.

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Technical analysis of EUR/JPY for October 17, 2016

General overview for 17/10/2016:

The market is still trading inside the horizontal congestion zone between the levels of 115.15 and 114.00. This is the main reason why the current down move does not look too much impulsive anymore: the market has spent too much time inside of this zone. Nevertheless, the downward wave progression can still be continued, at least according to the bigger time frame picture. The near-term bias is down as there are still uncompleted wave structures.

Support/Resistance:

116.49 - WR2

115.43 - WR1

115.15 - Intraday Resistance

114.62 - Weekly Pivot

114.00 - Intraday Support

113.46 - WS1

112.74 - WS2

Trading recommendations:

As long as the golden trend line is not clearly violated, day traders should consider opening sell orders as close as possible to the intraday resistance at the level of 115.15. TP level is open for now, but if the level of 114.00 is broken then the next support is seen at the level of 113.67 (61% Fibo).

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Elliott wave analysis of EUR/NZD for October 17, 2016

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EUR/NZD - Daily

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EUR/NZD - 4 Hourly

Wave summary:

We are currently seeing the expected corrective decline closer to 1.5245, from where we expect a new impulsive rally above 1.5764 for a continuation towards 1.6395 and above.

As long as minor resistance at 1.5525 is able to cap the upside, we will be looking for a little more downside pressure closer to the ideal corrective target at 1.5245. From a classical technical point of view, we currently see an Inverse S/H/S bottom developing and a break above the neckline resistance at 1.5764 will activate the bottom-formation for a measured rally towards 1.6564.

Trading recommendation:

We are looking for a buying opportunity at 1.5285 or upon a break above 1,5550.

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Elliott wave analysis of EUR/JPY for October 17, 2016

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EUR/JPY - Daily

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EUR/JPY - 4-Hourly

Wave summary:

We continue to wait for more upside pressure and a break above minor resistance at 115.05 will be the first good indication that the next impulsive rally to above 116.16 is developing for a rally to 119.99 and above.

The long-term count saw a corrective low at 109.48 and ultimately a rally above the December 2014 high at 149.56 is expected.

Trading recommendation:

We are long EUR from 114.56 with stop placed at 113.90. If you are not long EUR yet, then buy near 114.33 or upon a break above resistance at 115.05 and use the same stop at 113.90.

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Technical analysis of GBP/JPY for October 17 , 2016

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GBP/JPY is expected to continue its downside movement. The technical picture of GBP/JPY is negative. The pair recorded a succession of lower tops and lower bottoms since Oct 14 and is consolidating on the downside. The downward momentum is further reinforced by its declining 20-period and 50-period moving averages, which play resistance roles and maintain the downside bias. The relative strength index is bearish below its neutrality level at 50 and calls for further downside. To conclude as long as 127.80 holds on the upside, look for a further drop toward 125.90 and 124.80 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 125.90. A break below this target will move the pair further downwards to 124.80. The pivot point stands at 127.80. 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 128.70 and the second one at 130.00.

Resistance levels: 128.70, 130.00, 131.00

Support levels: 125.90, 124.80, 123.40

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Technical analysis of EUR/USD for October 17, 2016

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Overview:

  • The EUR/USD pair continues to move downwards from the level of 1.1063. The pair dropped from the level of 1.1063 to the bottom around 1.0980. But the pair has not rebounded from the price of 1.0980. Today, the first support level is seen at 1.0934, the price is moving in a bearish channel now. Furthermore, the price is set below the strong resistance at the level of 1.1063, which coincides with the 508% Fibonacci retracement level. This resistance has been rejected several times confirming the veracity of a downtrend. Since the trend is below the 50% Fibonacci level, the market is still in a downtrend. Additionally, the RSI starts signaling a downward trend. As a result, if the EUR/USD pair is able to break out the first support at 1.0934, the market will decline further to 1.0853 in order to test the weekly support 2. Consequently, the market is likely to show signs of a bearish trend. So, it will be good to sell below the level of 1.1000 with the first target at 1.0934 and further to 1.0853. However, stop loss is to be placed above the level of 1.1085.
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Technical analysis of USDX for October 17, 2016

The Dollar index continues to trade in a short-term upward sloping channel but I believe there is no more fuel for bulls left. I believe we should see a pullback towards 96 at least. I'm bearish around 98.

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Blue lines - bullish channel

Green line - important long-term support

Yellow line - expected price path

The Dollar index has already given some bearish divergence signals in the RSI and the stochastic. This is a warning and I believe we will not see a new higher high. I believe a short-term top is in. I expect price to break the bullish channel and move towards the Ichimoku cloud.

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In the weekly chart price has made a clear breakout above the Ichimoku cloud and above the red downward sloping trend line resistance. A backtest is expected. So a pullback towards cloud support should not be ruled out. However a break below last week's low and a close inside the cloud will be bearish. The form of the rise from the 91.90 lows does not look impulsive but corrective. This entire upward move could very well be part of a bigger correction of the longer-term rally from the 80 levels. There is also a chance of a bigger correction in play here where we could push lower towards the 200 MA near 90 first before continuing the uptrend to new highs.The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of Gold for October 17, 2016

Gold price continues to trade sideways between $1,262 and $1,250. Last week we witnessed two fake breakdowns towards $1,247 only to be reversed upwards within the same hour. This is a bullish sign. Gold is very likely to start a new upward move from current levels.

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Red lines - trading range

Green rectangles- fake breakdowns

Price is below the Ichimoku cloud in the 4-hour chart. Price has been moving sideways for the last few sessions. Price has now reached the Ichimoku cloud resistance again in the 4-hour chart. In the next couple of sessions we will find out if we see a break above or below the range.

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In the weekly chart price remains at the 38% Fibonacci retracement of the rise from $1,045 to $1,375. A bounce at least towards the $1,280-90 level where we find the weekly kijun- and tenkan-sen is expected. There will be the first important test for bulls.The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of EUR/USD for Oct 17, 2016

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When the European market opens, some economic data will be released such as final core CPI y/y, final CPI y/y, and Italian trade balance. The US will also publish some news such as industrial production m/m, capacity utilization rate, Empire State manufacturing index. Thus, amid the reports EUR/USD will move in a low to medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Breakout BUY Level: 1.1019.

Strong Resistance:1.1013.

Original Resistance: 1.1002.

Inner Sell Area: 1.0991.

Target Inner Area: 1.0966.

Inner Buy Area: 1.0941.

Original Support: 1.0930.

Strong Support: 1.0919.

Breakout SELL Level: 1.0913.

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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US Dollar Index Technical Analysis for October 17, 2016.

Technical outlook and chart setups:

The US Dollar Index had made yet another high at 98.17 level before pulling back lower. It had dropped lower towards 97.50 level forming the first leg for a corrective drop. The index is trading at 98.06 level for now, looking to drop lower further towards 97.00 level at least. Please also note that 97.00 is the fibonacci 0.382 support as depicted here. It seems that the index has completed 5-wave rally from 94.50 level. The current pullback would be considered as a retracement which is expected to terminate at 96.95 level. It is hence recommended to exit long positions and remain flat for now. Aggressive traders might want to go short now, with stop at 98.50 targeting 97.00 level. Immediate resistance is at 98.13 level, while support is seen at 96.95 level respectively.

Trading recommendations:

Remain flat for now. Aggressive traders might want to remain short, stop at 98.50, target is at 97.00

Good luck!

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EUR/USD Technical Analysis for October 17, 2016.

Technical outlook and chart setups:

The EUR/USD pair prints yet another intraday low today at 1.0963 level before pulling back. The pair is seen to be trading at 1.0985 level for now, looking to push through higher. Please note that probability still remains for yet another low before bulls take control back. Meanwhile, if the pair rallies and takes out 1.1060 level, it would confirm that bulls are back and this could be the beginning of much awaited counter trend rally. Please note that the daily chart patterns and oscillators are showing extreme bullish divergence and prices should reverse any time now. Looking at the wave structure, the pair looks to be preparing for yet another run towards 1.1085 and 1.1120 levels. The pair is expected to face resistance around 1.1120 levels. It is hence recommended to remain long, with risk at 1.0945 levels. Immediate resistance is seen at 1.1107 levels, while support is seen at 1.0950 levels respectively.

Trading recommendations:

Remain long, stop at 1.0945, target is open.

Good luck!

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Silver Technical Analysis for October 17, 2016.

Technical outlook and chart setups:

Silver had dropped to $17.30 level on Friday before pulling back. The metal is seen to be trading at $17.45 level for now, looking to stage a counter trend rally towards $18.50/19.00 levels. Please note that it is quite possible that the metal may resume its long term rally from here, since the metal has bounced from a multi-month trend line support. The wave structure also indicates that the metal is expected to produce a counter trend rally at least towards $18.50 level. If the metal reverses from $18.50/19.00 levels, then it would form base around $16.50/60 levels which is also the fibonacci 0.618 support of the entire rally between $13.70 and $21.10 levels respectively. It is recommended to remain flat for now and look for opportunities to short again on rallies. Immediate resistance is seen at $18.50/19.00 levels, while support is at $17.00 levels respectively.

Trading recommendations:

Remain flat for now. Aggressive traders may remain long, with stop at $17.00 and targeting $18.50 at least.

Good luck!

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Gold Technical Analysis for October 17, 2016.

Technical outlook and chart setups:

Gold had dropped lower towards $1,245.00 level on Friday before pulling back. The metal is seen to be trading at $1,254.00 level for now and should be looking to rally from here. The wave structure also indicates that the counter trend rally is expected to terminate around the past support turned resistance zone at $1,304.00/10 levels, which is fibonacci 0.50% of the entire drop between $1,375.00 and $1,240.00 levels as depicted here. Also note that the broken support trend line would act as resistance now around the same levels. It is recommended to remain flat now and look to sell around $1,300.00/10.00 levels again, while aggressive traders should look to go/remain long with risk below $1,240.00. Immediate resistance is now seen at $1,305.00/10.00 levels, while support is at $1,240.00 level respectively.

Trading recommendations:

Remain flat for now. Aggressive traders remain long now with stop at $1,240.00 level, targeting $1,310.00.

Good luck!

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Technical analysis of USD/JPY for Oct 17, 2016

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In Asia, Japan will release the revised industrial production data, and the US will also publish some economic news such as industrial production m/m, capacity utilization rate, Empire State manufacturing index. So there is a probability the USD/JPY will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Resistance. 3: 104.62.

Resistance. 2: 104.42.

Resistance. 1: 104.21.

Support. 1: 103.96.

Support. 2: 103.75.

Support. 3: 103.55.

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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EUR/JPY reached profit target, trend turns bullish

The price dropped perfectly as expected and reached our profit target. We turn bullish above 114.11 major support (Fibonacci retracement, Fibonacci projection, horizontal support) for a push up to 116.19.

RSI (34) is on support.

Stochastics (21,5,3) is also on support signalling a bounce is impending.

Buy above 114.11. Set stop loss at 113.34 and take profit at 116.19.

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AUD/JPY faces major support, time to buy

The price is right above the major support at 79.02 (Fibonacci retracement, Fibonacci projection, horizontal pullback support) where we expect a bounce and a push up to the 79.98 level.

RSI (55) is at the pullback support signalling a bounce is impending from here.

Buy above 79.02. Set stop loss at 78.53 and take profit at 79.98.

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Daily analysis of major pairs for October 17, 2016

EUR/USD: The EUR/USD went down by 220 pips last week, closing below the resistance line at 1.1000. There is a strong Bearish Confirmation Pattern on the 4-hour chart, which means further bearish movement is expected this week, and that could take the price towards the support lines at 1.0950 and 1.0000. However, it is unlikely that the great support line at 1.0000 would be breached.

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USD/CHF: Just as predicted last week, this pair trended upwards 125 pips, testing the resistance level at 0.9900. Importantly, bulls have repeatedly failed to go above the resistance level. However, due to the extant buying pressure in the market, the resistance level might be breached to the upside, and the price may not go significantly upwards following that.

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GBP/USD: This instrument remains bearish, both in long-term and short-term outlook. There is a huge Bearish Confirmation Pattern in the market, and any bullish effort should be taken as short sell opportunities. Thep rice is currently consolidating, but a breakout is imminent this week or next.

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USD/JPY: There is still a bullish signal in his market, and there is a Bullish Confirmation Pattern on the chart. As long as the price is above the demand level at 101.50, the bullish signal will remain valid. Bulls might be able to target the supply levels 105.00 and 105.50 this week.

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EUR/JPY: It is better to stay away from this market right now, because there is no directional movement (except one is trading on a very low timeframe, going for quick gains). A close look at the market shows the possibility of price going further south this week due to the weakness of EUR.

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Daily analysis of USDX for October 17, 2016

The US dollar index is still riding a bullish trend across the board, consolidating gains above the 200 SMA. Eventually we may expect another rally attempt towards the 98.53 level. However, the first day of the week should be key for the trend development, as we're seeing a kind of pattern that should deliver strong movements in coming days and one cannot discard a pullback towards the 97.00 level.

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H1 chart's resistance levels: 98.53 / 99.21

H1 chart's support levels: 98.01 / 97.71

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 98.53, take profit is at 99.21 and stop loss is at 97.85.

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Daily analysis of GBP/USD for October 17, 2016

The pair is still showing weakness on the mid and short-term basis, and a bearish trend line projected on the H1 chart is supporting this scenario. Currently, GBP/USD is struggling to break the support level of 1.2179, which should open the doors to test a key area around the 1.2112 level. If a bearish consolidation happens below that zone, then we can expect another fall below the 1.20 handle.

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H1 chart's resistance levels: 1.2229 / 1.2312

H1 chart's support levels: 1.2179 / 1.2112

Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the GBP/USD pair breaks a bearish candlestick; the support level is at 1.2179, take profit is at 1.2112 and stop loss is at 1.2239.

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