USD/CAD intraday technical levels and trading recommendations for October 20, 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.

Otherwise, the USD/CAD pair remains trapped between the price levels of 1.3000 (61.8% Fibonacci level) and 1.3300 (50% Fibonacci level) until breakout occurs in either direction (probably to the downside).

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NZD/USD Intraday technical levels and trading recommendations for October 20, 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.

The price zone between 0.6960-0.6860 constitutes a significant support zone to be watched for a valid BUY entry if any bearish pullback extends below 0.7100.

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

On the other hand, the mark of 0.7245 is the key level to determine the next destination for the NZD/USD pair.

Evident bearish rejection would be a valid signal for a possible SELL entry around 0.7250.

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Intraday technical levels and trading recommendations for GBP/USD for October 20, 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 20, 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 previous 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.

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

The recent bearish closure below 1.1250 (supply level 1) maintained enough bearish pressure and enhanced the bearish side in the market again. Initial bearish targets were reached at 1.1050 and 1.0990.

Price action should be watched around the price level of 1.0990 (Key Level 1) either for bullish rejection (low probability) or extensive bearish pressure (which is being expressed Today).

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 for a valid BUY entry.

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Gold analysis for October 20, 2016

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Since our previous analysis, gold has been trading sideways around the price of $1,270.00. According to the 30M time frame, I found strong upward momentum. I placed an upward trend line and the price respecting very well the upward trend line, which is a sign of strength. Using the market profile analysis, I found yesterday's point of control at the price of $1,269.70. My advice is to watch for potential buying opportunities. I placed Fibonacci expansion to find potential upward targets. I got Fibonacci expansion 61.8% at the price of $1,275.00 and Fibonacci expansion 100% at the price of $1,280.00.

Fibonacci pivot points:

Resistance levels:

R1: 1,270.70

R2: 1,272.40

R3: 1,276.60

Support levels:

S1: 1,264.15

S2: 1,262.30

S3: 1,258.80

Trading recommendations for today: Intraday upward trend. Watch for buying opportunties on the dips.

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EUR/NZD analysis for October 20, 2016

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Recently, EUR/NZD has been moving sideways at the price of 1.5190. According to the 30M time frame, I found an absorption volume in the background and changing in intraday trend behaivor from bearish to bullish. Be careful when selling EUR/NZD at this stage. My advice is to watch for potential buying opportunities on the dips. First take profit level is set at the price of 1.5235 and second take profit level at 1.5260.

Fibonacci Pivot Points:

Resistance levels

R1: 1.5240

R2: 1.5275

R3: 1.5330

Support levels:

S1: 1.5135

S2: 1.5100

S3: 1.5050

Trading recommendations for today: Watch for potential buying opportunties.

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Technical analysis of NZD/USD for October 20, 2016

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Overview:

  • The NZD/USD pair continued to move upwards from the level of 0.7145. Since the market opened this week, the pair rose from the level of 0.7145 (the level of 0.7145 coincides with the ratio of 38.2% Fibonacci Expansion) to the top around 0.7261. In consequence, the NZD/USD pair broke resistance at 0.7145, which turned into strong support. In the H4 time frame, the level of 0.7145 is expected to act as major support today. Currently, the price is moving in a bullish channel. This is confirmed by the RSI indicator signaling that we are still in a bullish market. The price is still above the moving average (100). From this point, we expect the NZD/USD pair to continue moving in the bullish trend from the support level of 0.7145 towards the target level of 0.7210. If the pair succeeds in passing through the level of 0.7210, the market will indicate the bullish opportunity above the level of 0.7210so as to reach the second target at 0.7261. Also, it should be noted that the major resistance is seen at the price of 0.7315. At the same time, if the NZD/USD pair is able to break out the level of 0.7200, the market will decline further to 0.7145 (daily support 2).
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Global macro overview for 20/10/2016

Global macro overview for 20/10/2016:

The Australian jobs market data surprised market participants after the unemployment rate was published last night. The global investors did not anticipate any changes from the last month 5.7% unemployment level, but the print revealed was at the level of 5.6%, better than expected. Moreover, the Australian economy lost 9,800 jobs, while markets had expected a 15,200 jobs gain after last month loss of 8,600 jobs. In conclusion, the proportion of people looking for work tumbled, so the unemployment rate is currently flat.

Let's now take a look at the AUD/USD technical picture in the daily time frame. The key resistance zone between the levels of 0.7708 - 0.7763 has not been violated and now the market is reversing its gains. The golden trend line is still providing additional resistance, so this zone might be quite tough to violate. It looks like the market will come back to the congestion zone again before the next rally attempt will happen. The next support is seen at the level of 0.7441.

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Technical analysis of USD/CHF for October 20, 2016

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Overview:

  • The USD/CHF pair has broken resistance at the level of 0.9874, which acts as support now. So, the pair has already formed minor support at 0.9874. The strong support is seen at the level of 0.9844 because it represents the weekly pivot. In the H1 time frame, the RSI and the moving average (100) are still pointing to the upside. Therefore, the market indicates a bullish opportunity at the level of 0.9874. Buy above the minor support of 0.9874 with a target at 0.9913 (this price is coinciding with the double top). If the pair succeeds in passing through the level of 0.9913, the market will indicate the bullish opportunity above the level of 0.9962 in order to reach the second target at 0.9937. However, the price spot of 0.9937 - 0.9960 remains a significant resistance zone. Thus, the trend will probably be rebounded again from the price of 0.9960 as long as it is not breached. On the other hand, if the pair closes below the minor support (0.9874), the price will fall into the bearish market in order to go further towards the strong support at 0.9874. According to the previous events, we expect the USD/CHF pair to trade between 0.9874 and 0.9960.
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Global macro overview for 20/10/2016

Global macro overview for 20/10/2016:

In the last televised debate with Hillary Clinton on Wednesday night in Las Vegas Donald Trump did not change his provocative attitude and did not cancel controversial opinions, which caused a storm of criticism and resulted in the loss of support of some voters as the preliminary polls show Clinton to lead in this debate. The Republican candidate once again refused a declaration that he considers any outcome of the election, questioned the findings interview that Russia had broken into American computer systems and denied that sexually assaulted women. Though his objections were supported by recordings of conversations Trump boasted that he did so with impunity through his fame celebrity. Moreover, the Republican Party candidate, who had encouraged his followers to control the voting process, which according to experts is threatening incidents of violence, is the most widely commented moment of the third debate. Its observers from CNN and MSNBC made the opinion that it buried Trump's chances of winning. Fox News well-known conservative columnist Charles Krauthammer called Trump's statement "a terrible mistake, and political suicide".

Let's now take a look at the USD/MXN technical picture at the H4 time frame after the presidential debate is done. The Mexican Peso is probably the highest correlated currency to the US Presidential Elections.

We can see a sudden drop during overnight's Asian trading session, which is the key indicator, that the financial markets do not not appreciate Trump's rhetorics. The next support is seen at the level of 18.254 and the next resistance is seen at the level of 19.091. Mind the gap please.

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Technical analysis of EUR/USD for October 20, 2016

EUR/USD continues to produce lower highs and lower lows. The pair rejected the downward trendline and bounced off the 50 Moving Average.

The trend down is likely to continue and today EUR/USD might fall substantially. Fibonacci applied to the corrective wave up where pair rejected the 200 Moving Average shows that the nearest downside target is 261.8% Fibs (1.0940) that hasn't been tested yet. However, this level is likely to be broken and a range will go further down to test 361.8% Fibs (1.0840).

Consider selling EUR/USD at the current rate (1.0977) targeting 361.8% Fibs (1.0840). The suggested stop loss is 1.1020.

Support: 1.0940, 1.0840

Resistance: 1.1040

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Technical analysis of EUR/AUD for October 20, 2016

Based on our previous analysis EUR/AUD is expected to continue the downtrend to test 0% Fibs (1.4365) after breaking below the 23.6% Fibs support.

The final wave down can take place this week and therefore consider selling EUR/AUD at the current rate (1.4315), targeting 1.4140. The stop loss should be just above the nearest resistance at 1.4365

Support: 1.4340

Resistance: 1.4365, 1.4505, 1.4618

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Technical analysis of USD/CAD for October 20, 2016

General overview for 20/10/2016:

The demand zone has been violated, but the market bounced back immediately after hitting this zone and currently it trades just below the weekly pivot at the level of 1.3169. This upward wave progression is a part of a corrective cycle wave X and, according to the main count, it might even be completed. The most important level for today is the intraday resistance at the level of 1.3185.

Support/Resistance:

1.3022 - WS1

1.3169 - Weekly Pivot

1.3236 - WR1

1.3185 - Intraday Resistance

1.3139 - Intraday Support

1.3028 - 1.3045 - Demand Zone

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 support at the level of 1.3139. TP level should be set at the intraday support at the level of 1.3054.

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Technical analysis of EUR/JPY for October 20, 2016

General overview for 20/10/2016:

The top for the wave looks to be completed at the intraday resistance at the level of 113.91. Currently, there is one more wave to the downside missing, labeled on the chart as wave c purple. The near-term bias is downward as there are still uncompleted wave structures.

Support/Resistance:

116.49 - WR2

115.43 - WR1

114.62 - Weekly Pivot

114.00 - Intraday Resistance

113.67 - Intraday Support

113.11 - 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 112.97 (78% Fibo).

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Technical analysis of USD/JPY for October 20, 2016

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USD/JPY is expected to continue the rebound. The pair is turning up on the support of 103.15, while the 20-period moving average is crossing above the 50-period one, calling for a further bounce as possible. Meanwhile the relative strength index is above 50 and lacks downward momentum.

The U.S. Federal Reserve pointed out in its latest Beige Book that economic activity in the U.S. continues to expand and the labor market remains tight.

The U.S. Energy Information Administration reported a surprise drawdown of 5.2 million barrels in crude stocks in the week ended Oct. 14, against a 2.7-million barrel build expected. Crude imports to the U.S. fell 912,000 barrels to 6.47 million barrels per day, the lowest since November 2015. As a result, Nymex crude jumped 2.6% to $51.60 a barrel, the highest level since July 2015.

After a two-day rally, U.S. government bonds held relatively steady, with the benchmark 10-year U.S. Treasury yield inching higher to 1.752% from 1.748% Tuesday.

Therefore, as long as 103.15 is not broken below, further bounce is expected with 103.95 and 104.20 as the next targets.

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 103.95 and the second one at 104.20. In the alternative scenario, short positions are recommended with the first target at 102.80 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 102.40. The pivot point lies at 103.15.

Resistance levels: 103.95, 104.20, 104.85

Support levels: 102.80, 102.40, 102.00

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Technical analysis of USD/CHF for October 20, 2016

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USD/CHF is expected to trade in a higher range as the the bias remains bullish. The pair is consolidating and is trading below its 20-peiord and 50-period moving averages, which are turning down. Nevertheless, 0.9865 represents a significant key support level, which should limit the downside potential. Additionally, the relative strength index is turning up and just broke above its neutrality level at 50. Even though a continuation of consolidation cannot be ruled out, its extent should be limited.

As long as 0.9865 is not broken, look for a further upside toward 0.9915 and 0.9930 in extension.

Resistance levels: 0.9915, 0.9930, 0.9945

Support levels: 0.9850, 0.9825, 0.9790

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Technical analysis of NZD/USD for October 20, 2016

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NZD/USD is expected to post some further gains. The technical picture of the pair is positive above its rising 20-period and 50-period moving averages, which act as support and maintain the upside bias. The relative strength index is bullish above its neutrality level at 50 and lacks downward momentum. Additionally, 0.7190 represents a significant key support level, which should limit the downside potential. As long as 0.7190 is not broken, look for a further upside toward 0.7280 and even 0.7310 in extension.

The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. Therefore, long positions are recommended with the first target at 0.7280 and the second one at 0.7310. In the alternative scenario, short positions are recommended with the first target at 0.7155 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 0.7125. The pivot point lies at 0.7190.

Resistance levels: 0.7280, 0.7310, 0.7350

Support levels: 0.7155, 0.7125, 0.7070

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Technical analysis of GBP/JPY for October 20, 2016

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GBP/JPY is expected to trade with a bullish bias above 126.80. The pair is consolidating around its 20-period and 50-period moving averages, which are flat and do not show clear directions. Nevertheless, 126.80 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 the key support at 126.80 is not broken, look for a further upside toward 127.60. A break above this level would call for a further advance toward 127.90.

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 127.60 and the second one at 127.90. In the alternative scenario, short positions are recommended with the first target at 126.30 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 125.90. The pivot point lies at 126.80.

Resistance levels: 127.60, 127.90, 128.70

Support levels: 126.30, 125.90, 124.80

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Elliott wave analysis of EUR/NZD for October 20, 2016

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Wave summary:

The corrective decline in wave (ii) finally looks complete with the test of 1.5066. We will be looking for a break above minor resistance at 1.5271 as the first indication that wave (iii) higher finally has taken over for a rally to 1.5764 and higher to 1.6850.

It will take an unexpected break below support at 1.4989 to invalidate the bullish count, but even if such an unexpected break is seen the potential downside should remain limited.

Trading recommendation:

We are long EUR from 1.5285 with stop placed at 1.4985. If you are not long EUR yet, then buy a break above 1.5271 and use the same stop at 1.4985.

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Elliott wave analysis of EUR/JPY for October 20, 2016

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Wave summary:

As we said yesterday, the failure to break above resistance at 115.05 posed a risk to produce a deeper correction closer to 113.00 and that's exactly what we have seen as a test of 113.10 as the low has been seen. This correction could be enough for a new rally higher to 115.05 and 116.28 on the way higher to 122.00. The first good indication that the correction from 116.28 has completed will be a break above minor resistance at 114.16, while a break above 115.05 will confirm that the correction is complete and a new strong test of resistance at 116.28 is developing and above this resistance calls for 122.00 and above. From a classical technical point of view an Inverse S/H/S bottom could be building, with the neckline resistance seen near 116.28.

Trading recommendation:

We will buy a break above 114.16 with stop placed at 113.05.

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Technical analysis of USDX for October 20, 2016

The Dollar index continues to consolidate inside the triangle pattern. Trend remains bullish as price remains above the 4 hour Ichimoku cloud. There are several warning signs of a Dollar top here but we could still push towards 99 before turning lower.

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Green lines -bullish channel

Blue lines - triangle pattern

Red line - important long-term support

The Dollar index has broken out of the bullish channel but is trading sideways inside the triangle pattern above the Ichimoku cloud support. Short-term support is at 97.60 while resistance is at 98.20. A break of either of the two levels will produce a trading signal with 96.50 and 99 as possible targets respectively.

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Red line - support

Green line - resistance

On the daily chart, I have pointed out the two important short-term levels. Oscillators are diverging. This is a warning but only if price breaks below 97.60 we will have confirmation of a short-term trend change. A medium-term trend will change if price breaks below the Ichimoku cloud at 95.50-95.90 area. This is also where we find a very important support trend line from 91.90.

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Technical analysis of Gold for October 20, 2016

As expected Gold price has broken above the trading range and has reached $1,270. Important resistance is at $1,280 and if broken we could see Gold price reach for $1,300 and higher over the next couple of weeks. A short-term trend is bullish as long as we hold above $1,250.

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Red lines - trading range

Gold price is trading inside the Kumo (cloud). Therefore, a trend is neutral and needs to break out above the cloud to become bullish. Technically a short-term trend is bullish as price has broken above the trading range and is making higher highs and higher lows.

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On a daily basis we have a bullish reversal also shown by the oscillators and I believe that minimum target is the yellow kijun-sen indicator. Next target will be the Kumo (cloud) at $1,300-$1,325. I remain longer-term bullish. As I have been saying $1,250 was the level to be bullish Gold.The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of USD/JPY for Oct 20, 2016

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In Asia, today Japan will not release any economic data. However, the US will release a series of macroeconomic statistics such as Natural Gas Storage, CB Leading Index m/m, Existing Home Sales, Unemployment Claims, and Philly Fed Manufacturing Index. So there is a probability the USD/JPY pair will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Resistance. 3: 104.11.

Resistance. 2: 103.91.

Resistance. 1: 103.70.

Support. 1: 103.47.

Support. 2: 103.26.

Support. 3: 103.05.

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

Silver Technical Analysis for October 20, 2016.

Technical outlook and chart setups:

Silver had dropped to $17.30 levels earlier before pulling back and hit $17.77 levels hinting a break out. The metal is seen to be trading at $17.71 levels for now, looking to stage a counter trend rally towards $18.50/19.00 levels. Silver is lagging slightly behind its counterpart, gold, and it is expected to correct lower and then push above $17.77 levels. Since silver has bounced off a multi month support trend line, the trend is likely to continue from here. The wave structure also indicates that the metal is expected to produce a counter trend rally towards $18.50 levels at least. If the metal reverses from $18.50/19.00 levels, then it will 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 (not shown here). It is recommended to remain flat for now and look for opportunities to sell again on rallies. Aggressive traders should remain long with risk at $17.00 levels. Immediate resistance is seen at $18.50/19.00 levels, while support lies at $17.00 levels.

Trading recommendations:

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

Good luck!

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Technical analysis of EUR/USD for Oct 20, 2016

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When the European market opens, some news will be released such as ECB Press Conference, Minimum Bid Rate, EU Economic Summit, Spanish 10-y Bond Auction, Current Account, and German PPI m/m. The US will release a series of macroeconomic statistics such as Natural Gas Storage, CB Leading Index m/m, Existing Home Sales, unemployment Claims, and Philly Fed Manufacturing Index. So amid the reports, EUR/USD will move with medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Breakout BUY Level: 1.1024.

Strong Resistance:1.1018.

Original Resistance: 1.1007.

Inner Sell Area: 1.0996.

Target Inner Area: 1.0971.

Inner Buy Area: 1.0946.

Original Support: 1.0935.

Strong Support: 1.0924.

Breakout SELL Level: 1.0918.

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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Gold Technical Analysis for October 20, 2016.

Technical outlook and chart setups:

Gold finally broke above its resistance boundary at $1,265.00 levels and printed $1,273.00/74.00 highs yesterday. Please note that $1,265.00 will act as support now and help the metal to bounce back towards higher levels. Gold is seen to be trading at $1,272.00 levels for now and should be looking to correct lower before resuming rally. The wave structure also indicates that the counter trend rally is expected to terminate around the past support turned resistance zone at $1,304.00/10.00 levels, which is Fibonacci 0.618% of the entire drop between $1,352.00 and $1,240.00 levels as shown here. It is recommended to remain flat now and look to sell around $1,300.00/10.00 levels again, while aggressive traders should remain long with risk below $1,240.00. Immediate resistance is now seen at $1,305.00/10.00 levels, while support lies at $1,265.00 levels.

Trading recommendations:

Remain flat for now. Aggressive traders are recommended to remain long now with stop at $1,240.00 levels, targeting $1,310.00.

Good luck!

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US Dollar Index Technical Analysis for October 20, 2016.

Technical outlook and chart setups:

The US Dollar Index dropped towards 97.60 levels yesterday before pulling back. The index is trading at 97.85 levels for now, looking to drop lower further towards 97.00/96.95 levels at least. Please also note that 96.94 is the fibonacci 0.382 support of the rally between 95.00 and 98.20 levels, as depicted here. The wave structure indicates that the index has completed a 5-wave rally from 95.00 level. The current pullback would be considered as a retracement which is expected to terminate at 96.95 levels (wave 4 of a larger degree). Please also note that the channel line support is passing through the same level as depicted here. 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 levels. Immediate resistance is at 98.13 levels, while support is seen at 96.95 levels respectively.

Trading recommendations:

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

Good luck!

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EUR/USD Technical Analysis for October 20, 2016.

Technical outlook and chart setups:

The EUR/USD pair prints yet another low at 1.0954 levels before pulling back higher. The pair is seen to be trading at 1.0980 levels for now and needs to push through 1.1060 levels to confirm further upside. Please note that probability for a further lower low is reducing since the pair is holding well above 1.0950 levels. The pair is expected to rally and take out 1.1060 levels to confirm that bulls are here to remain longer but at the same time fibonacci 0.618 resistance is seen at 1.1080 levels. Please note that 1.1100 level would provide stiff resistance if prices manage to reach there. Looking at the wave structure, the pair looks to be preparing for yet another run towards 1.1085 and 1.1120 levels. It is hence recommended to remain long, with risk at 1.0945 level. Immediate resistance is seen at 1.1060 level, while support is seen at 1.0950 level respectively.

Trading recommendations:

Remain long, stop at 1.0945, a target is open.

Good luck!

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Look to sell EUR/JPY on pullback from resistance

We look to sell on pullback from major resistance at 113.93 (Fibonacci retracement, horizontal pullback resistance) for a push down to 112.75

RSI (21) is below multiple resistance levels and remains bearish although we intend to see a bounce before a further drop.

Sell below 113.93. Set stop loss at 114.70 and take profit at 112.75.

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NZD/USD is still at resistance, continue to sell

We look to sell below major resistance at 0.7226 (Fibonacci projection, horizontal overlap resistance) for a push down towards the 0.7122 level.

Stochastics (21,5,3) is also below major resistance at 90%.

Sell below 0.7226. Set stop loss at 0.7311 and take profit at 0.7122.

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USD/JPY is bullish above strong support

The price has turned bullish above major support at 103.16 (Fibonacci retracement, Fibonacci projection, horizontal support) where we again expect a bounce up to 104.02 at least.

Stochastics (34,5,3) is bouncing above major support at 4%.

Buy above 103.16. Set stop loss at 102.77 and take profit at 104.02.

analytics58081499bff47.png

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AUD/USD is at major resistance, start to sell

Price is right at major resistance (Fibonacci projection, Fibonacci retracement, horizontal resistance) from which we expect a drop to 0.7642 at least.

RSI (34) is right below descending resistance

Stochastics (34,5,3) is right below major 92% resistance

Sell below 0.7730. Set stop loss at 0.7789 and take profit at 0.7642.

analytics58081449e087d.png

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Daily analysis of major pairs for October 20, 2016

EUR/USD: There remains a Bearish Confirmation Pattern on the EUR/USD pair. The EMA 11 is below the EMA 56, and the Williams' % Range period 20 is not far from the oversold territory. Price would likely continue trending down, but it would meet some opposition at the support line of 1.0800. Some fundamental figures are expected today and they can have impact on the market.

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USD/CHF: Since last week, this pair has not been able to go above the resistance level at 0.9900. Bulls would continue to lay siege to that resistance level until they finally breach it to the upside, targeting more resistance levels above. Should bulls fail to go above the resistance level at 0.9900, that could lead to a possibility of a large pullback.

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GBP/USD: The cable has gone upwards by 150 pips this week, and this is seen as a bullish effort in the context of a downtrend. The price needs to go up by 1000 pips at least before there can be any threat to the extant long-term bearish outlook in the market. Until that happens, any rallies seen here would turn out to be opportunities to sell short. Right now, price is consolidating.

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USD/JPY: A bearish signal is also forming gradually on this market. The RSI with period 14 has already gone below the level 50, but the EMA 11 has not crossed the EMA 56 to the downside. This is what will eventually happen, as soon as price goes below the demand levels at 103.00, and 102.50.

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EUR/JPY: This pair has gone further bearish, just as it was forecasted. Further bearish movement is anticipated today, which would make price reach the demand zones at 113.00 and 112.50. This would make a stronger Bearish Confirmation Pattern to be formed on the 4-hour chart.

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Daily analysis of USDX for October 20, 2016

USDX continues to hover around the 98.00 psychological level where a breakout can happen in order to rally towards the 98.53 level. Currently, the bullish bias seems to be getting weak, while a pullback at current stage should be taken as a corrective one and it's highly likely it will not be able to consolidate below the 200 SMA on the H1 chart.

USDXH1.png

H1 chart's resistance levels: 98.01 / 98.53

H1 chart's support levels: 97.71 / 97.15

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 98.01, take profit is at 98.53 and stop loss is at 97.49.

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Daily analysis of GBP/USD for October 20, 2016

GBP/USD remained in sideways despite volatility lived during Wednesday's session. A dynamic resistance was found at the 200 SMA (H1 chart) and that should bring a bearish momentum in order to attempt a breakout below the 1.2229 level. If that happens, then we can expect a decline to the 1.2155 level. MACD indicator is entering a neutral territory.

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H1 chart's resistance levels: 1.2312 / 1.2427

H1 chart's support levels: 1.2229 / 1.2155

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 1.2229, take profit is at 1.2155 and stop loss is at 1.2301.

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