USD/CAD intraday technical levels and trading recommendations for November 7, 2016

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On May 16, a bullish pullback towards 1.3000 (61.8% Fibonacci level) was expected to offer a valid signal to sell the USD/CAD pair. However, a lack of a significant bearish rejection was manifested during recent consolidations.

On May 18, temporary bullish fixation above 1.3000 (61.8% Fibonacci level) opened the way towards the 1.3180 level where significant bearish pressure was originated.

Bearish persistence below 1.3000-1.2970 (61.8% Fibonacci level) 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) will be needed 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 will remain trapped between the price levels of 1.3000 (61.8% Fibonacci level) and 1.3360 (50% Fibonacci level) until breakout occurs in either direction.

Note that the USD/CAD pair is currently challenging the upper limit of the depicted flag pattern around 1.3360-1.3400 which constitutes a prominent resistance level.

Bearish rejection should be anticipated around the current price levels (Primary Scenario). However, bullish breakout above 1.3360 will probably liberate a quick bullish movement towards 1.3650 (Low probability scenario).

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NZD/USD Intraday technical levels and trading recommendations for November 7, 2016

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As long as the NZD/USD pair continued trading above 0.6860, further bullish advance was expected towards the upper limit of the depicted channel around 0.7400.

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 October 20, the mark of 0.7245 was a prominent key-level where significant bearish rejection was expressed.

Shortly after, the price level around 0.7100 (the lower limit of the depicted channel) stood as a solid support level where bullish recovery was expressed on October 28.

The depicted chart illustrates a double-bottom pattern. Full projection target is located around 0.7450.

Bullish persistence above 0.7250 (Neckline) is mandatory to allow further bullish advance towards 0.7350 and 0.7450.

Note that the depicted price zone (0.7250-0.7350) corresponds to a previous consolidation range.

That's why, bullish breakout above 0.7350 is needed to reach 0.7450 (Full projection of the reversal pattern). Otherwise, the NZD/USD pair will remain trapped within the consolidation range.

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Intraday technical levels and trading recommendations for GBP/USD for November 7, 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 (the 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. Hence, bearish projection target would be located around 1.2020.

Last week, recent bullish recovery was manifested around 1.2080. That's why, a bullish pullback may be executed towards 1.2700.

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 November 7, 2016

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In January 2015, the EUR/USD pair moved below the major demand levels near 1.2100 where historical bottoms were previously set in July 2012 and June 2010. Hence, a long-term bearish target was projected towards 0.9450.

In March 2015, the EUR/USD bears challenged the next monthly demand level around 1.0570, which had been previously reached in August 1997.

Later in April 2015, a strong bullish recovery was observed around the mentioned demand level. However, next monthly candlesticks (September, October, and November) reflected a strong bearish rejection around the area of 1.1400-1.1500.

Again, in February 2016, the depicted price levels around 1.1400-1.1500 acted as a significant supply zone during the bullish pullback.

That is why, recent bearish rejection was expected around the depicted supply levels (note the monthly candlesticks of May, August and October 2016).

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 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 momentum towards the price level of 1.1000 (Key-Level 1).

Bullish rejection was expected around the price level of 1.1000 (Key Level-1). However, extensive bearish pressure and significant bearish closure below 1.0900 was expressed.

Daily persistence below 1.0990 allowed a quick bearish decline towards 1.0825 (Key Level-2) where a short-term BUY entry was suggested.

As anticipated, Bullish recovery was expressed around 1.0850. This was followed by a daily breakout above 1.1000 (Key Level-1) on November 1.

Daily candlestick closure above 1.1000 (Key Level-1) enhances further bullish advance towards 1.1250 (Supply Level-1) where price action should be watched for a short-term SELL entry.

On the other hand, any bearish pullback towards 1.1000 should be watched for a possible BUY entry.

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Technical analysis of Gold for November 7, 2016

After a strong move up Gold corrected down and found a support near 38.2% Fibs (1283). Currently, the Yellow Metal trading right at the 50 and 200 Moving averages which should act as a very strong support.

This could result in another wave up to test 61.8% Fibs and potentially go higher if broken. Consider buying Gold at the current level 1,286 targeting 1,309. Suggested stop loss is 1,273.

Support: 1,283

Resistance: 1,296, 1,309

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Technical analysis of NZD/USD for November 7, 2016

NZD/USD still trading up within the ascending channel and above the 200 Moving Average. It broke above both 161.8% and 261.8% while hasn't tested 361.8% Fibs level (0.7365)

Currently pair is trading at the support (0.7295) which could result in another wave up towards 361.8% Fibs. Consider buying NZD/USD while the rate is near 0.7300, targeting 0.7365 level. The suggested stop loss 0.7270.

Support: 0.7295

Resistance: 0.7365

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Global macro overview for 07/11/2016

Global macro overview for 07/11/2016:

The Halifax House Price Index is the UK's longest running monthly house price series with data covering the whole country going back to January 1983. Today's news release have shown the UK house price has increased 1.4%, while the market participants expected only 0.3% rise, just like it was a month ago. Moreover, house prices in the three months to October were 5.2% higher than in the same three months of 2015, but the market participants expected only a 4.8% increase. Martin Ellis, Halifax housing economist said that "annual house price growth has nearly halved from a peak of 10.0% in March this year, but still remains robust. This expected slowdown appears to have been largely due to mounting affordability pressures, which have increasingly constrained housing demand. Whilst house price growth may ease further in the coming months, very low mortgage rates and a shortage of properties available for sale should help support price levels". In conclusion, it looks like the property prices in the UK after the Brexit are still rising, which is contrary to market expectations.

Let's now take a look at the GBP/USD technical picture at the 4H time frame. The market has tested the golden trend line from the bottom and now is trying to rally again. The first obstacle for bulls is the technical resistance at the level of 1.2478 and then the local top at the level of 1.2555. On the other hand, the next support is seen at the level of 1.2333. Please notice that this pair will be under the influence of the Presidental Election results tomorrow as well.

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Technical analysis of GBP/USD for November 07, 2016

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Overview:

  • The market opened below the weekly resistance of 1.2488. Last week, it continued to move downwards from the level of 1.2488 to the bottom around the spot of 1.2400. This week, the first resistance level is seen at 1.2488 followed by 1.2614, while daily support 1 is seen at the levels of 1.2314 and 1.2206. The GBP/USD pair broke support which turned to strong resistance at 1.2488 since UK vote (23rd June 2016). Right now, the pair is trading below this level. It is likely to trade in a lower range as long as it remains below the support (1.2400) which is expected to act as major resistance in coming hours. This would suggest a bearish market because the moving average (100) is still in a negative area and does not show any signs of a trend reversal at the moment. Amid the previous events, the GBP/USD pair is still moving between the levels of 1.2400 and 1.2206. Therefore, the major resistance can be found at 1.2400 providing a clear signal to sell with a target seen at 1.2400. If the trend breaks the minor support at 1.2400, the pair will move downwards continuing the bearish trend development to the levels of 1.2314 and 1.2206 on coming days. Overall, we still prefer the bearish scenario which suggests that the pair will stay below the zone of 1.2488 this week.

Comment:

  • DateTime : Tuesday, November 8th, 2016 | All Day.
  • Currency: US Dollar - (USD).
  • Impact: High impact expected.
  • Detail: Presidential Election. Voters will elect the 46th President of the United States.
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Technical analysis of USD/JPY for November 07, 2016

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USD/JPY is expected to trade with bullish bias. The pair posted a strong rebound this morning, and also broke above its previous key resistance at 103.80, which now acts as a support role. The relative strength index is displaying strong bullish momentum, calling for further advance.

On Friday, U.S. stocks remained under pressure ahead of Tuesday's presidential election where polls show a tightening race between Hillary Clinton and Donald Trump. The S&P 500 declined 3 points (-0.2%) further to 2,085 extending its losing streak to the ninth session, the longest since December 1980. The Dow Jones Industrial Average dropped 42 points (-0.2%) to 17,930, and the Nasdaq Composite was down 47 points (-0.9%) to 5,058.

Consumer staples shares performed the worst, while health-care and real estate stocks outperformed.

Concerning the October jobs report, the U.S. Labor Department reported that non-farm payrolls increased 161,000 (vs. +173,000 expected, +191,000 in September) as the jobless rate declined to 4.9% (as expected) from 5.0% in September.

However, on Sunday, FBI Director James Comey announced in a letter to Congress that the agency has found no evidence of criminality in newly discovered emails related to Hillary Clinton's private server.

Hence, as long as 103.80 is not broken, the pair is more likely to challenge its next resistance at 105.10, and if breakout, look for a continuation of the rebound to 105.50.

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 105.10 and the second one at 105.50. In the alternative scenario, short positions are recommended with the first target at 103.30 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 102.80. The pivot point lies at 103.80.

Resistance levels: 105.10, 105.50, 106

Support levels: 103.20, 102.80, 102.55

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Global macro overview for 07/11/2016

Global macro overview for 07/11/2016:

Tomorrow is the day of the Presidential Election in the United States and it will dominate the whole financial mass media news stream. For now, the polls indicate a minimum advantage of Hillary Clinton, but Trump certainly in the last few days managed to catch up strongly. On the other hand, representatives of the FBI announced yesterday that there is still no reason to put Clinton criminal charges for the use of its private e-mail for business purposes. The timing of FBI Director James Comey's disclosure has once again dealt a serious blow to Donald Trump's chances of securing the White House, something the markets have responded very positively to. So we can say that at the finish Hilary Clinton also got a plus in the note.

Let's now take a look at the US Dollar index technical picture at the daily time frame. The recent corrective sell-off has been stopped at the level of 96.89 after a gap up this morning. Currently, there are two scenarios for the index to move and they both depend on who will win the elections. If Hilary Clinton will win, the dollar will rally, if Donald Trump will win, the dollar will fall. It is rather hard to say what levels will be hit, but the key levels for this market from a near-term perspective are technical resistance at the level of 100.48 and technical support at the level of 91.92.

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Technical analysis of USD/CHF for November 07, 2016

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AUD/USD is expected to trade with bullish bias above 0.9710. The pair stands firmly above its key horizontal level at 0.9710, and seems likely to post some consolidations before further advance. The relative strength index is mixed to positive. In addition, a support base at 0.9710 has formed and has allowed for a temporary stabilization.

Concerning the October jobs report, the U.S. Labor Department reported that non-farm payrolls increased 161,000 (vs. +173,000 expected, +191,000 in September) as the jobless rate declined to 4.9% (as expected) from 5.0% in September. Despite a relatively healthy jobs report, the U.S. dollar continued to be weighed down by election uncertainty on Friday. The ICE U.S. Dollar Index eased 0.1% further to 97.065, making a losing streak of four straight sessions.

To sum up, as long as 0.9710 is not broken, look for further advance to 0.9815 and 0.9850 in extension.

Resistance levels: 0.9815, 0.9850, 0.9870

Support levels: 0.9670, 0.9635, 0.9600

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Technical analysis of EUR/USD for November 07, 2016

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Overview:

  • The EUR/USD pair has faced strong resistances at the levels of 1.1114 because support had become resistance. So, the strong resistance has been already formed at the level of 1.1114. Also, it should be noted that the market has opened below the 1.1114 level. The first resistance is seen at the 1.1087, for that the pair is likely to try to approach it in order to test it again. However, if the pair fails to pass through the level of 1.1087, the market will indicate a bearish opportunity below the new strong resistance level of 1.1087 (the level of 1.1087 coincides with a ratio of 50% Fibonacci). Moreover, the RSI starts signaling a downward trend, as the trend is still showing weakness below the moving average (100). Thus, the market is indicating a bearish opportunity below 1.1087, so, it will be good to sell at 1.1087 with the first target of 1.1031. It will also call for a downtrend in order to continue towards 1.0962. The weekly strong support is seen at 1.0906. However, the stop loss should always be taken into account, for that it will be reasonable to set your stop loss at the level of 1.1160.
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Technical analysis of NZD/USD for November 07, 2016

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NZD/USD is expected to trade with bullish bias. The pair is trading around its 20-period and 50-period moving averages, which are flat and do not show any clear directions. The relative strength index is around its neutrality level at 50. Nevertheless, 0.7270 is playing a key support role, which should limit the downside potential. As long as this key level is not broken, we keep our positive view unchanged with up target at 0.7340. A break above this level would call for a further advance toward 0.7370.

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 0.7340 and the second one at 0.7370. In the alternative scenario, short positions are recommended with the first target at 0.7230, 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 0.7190. The pivot point lies at 0.7270.

Resistance levels: 0.7340, 0.7370, 0.7405

Support levels: 0.7230, 0.7190, 0.7155

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Technical analysis of GBP/JPY for November 07, 2016

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GBP/JPY is expected to trade with bullish bias. The pair broke below its 20-period and 50-period moving averages with a bearish gap. The relative strength index is below its neutrality level at 50 and is heading downwards. However, 128.80 is playing a key support role. As long as the key level at 128.80 is not broken, we keep our positive view unchanged with up target at 130.55 first.

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 130.55 and the second one at 131.60. In the alternative scenario, short positions are recommended with the first target at 127.95, 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 127.55. The pivot point lies at 128.80.

Resistance levels: 130.55, 131.00, 132

Support levels: 127.95, 127.55, 126.80

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Technical analysis of USD/CAD for November 7, 2016

General overview for 07/11/2016:

The current wave development suggests a more complex and time-consuming structure unfolding currently on this pair. The Elliott wave count has been updated and now it indicates an uncompleted structure to the upside, labeled as the blue wave c. On the other hand, the structure in wave b may not have been completed yet and if the demand zone is clearly violated, the market might extend fall towards the level of 1.3000.

Support/Resistance:

1.3503 - WR2

1.3465 - Intraday Resistance

1.3433 - WR1

1.3392 - Weekly Pivot

1.3353 - Intraday Support

1.3319 - WS1

1.3280 - WS2

Trading recommendations:

The current market structure is not clear enough to justify trading. Day traders should refrain from placing orders and wait for another trading setup to occur shortly.

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Technical analysis of EUR/JPY for November 7, 2016

General overview for 07/11/2016:

The bottom for the blue wave (b) had been established at the level of 114.00 and currently the market is developing another upward wave. The invalidation level is at the top of the purple wave 1 at the level of 114.71, so any violation of this level will invalidate the bullish impulsive count. The triangle structure for the purple wave 4 is currently in progress as well, so the intraday horizontal price action is being expected.

Support/Resistance:

115.88 - Intraday Resistance

115.77 - WR1

115.29 - Intraday Support

114.89 - Weekly Pivot

114.71 - Invalidation Level

114.12 - WS1

113.22 - WS2

Trading recommendations:

The impulsive structure does not look completed yet, so day traders should consider to open buy orders with SL set just below the level of 114.71.

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NZD/USD at major resistance, time to start selling

Price made a strong push up and is now at major resistance at 0.7345 (Fibonacci retracement, Fibonacci projection, horizontal resistance) from where we expect a strong drop towards 0.7190.

RSI (34) is also at major resistance where the previous major reversal occurred.

Sell below 0.7345. Place stop loss at 0.7375 and take profit at 0.7190.

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EUR/JPY profit target reached perfectly, time to turn bearish

Price spiked up perfectly to our profit target as expected. We now turn bearish below 115.66 major resistance (horizontal resistance, Fibonacci projection) for a drop towards 114.83.

RSI (34) is facing a long-term descending resistance which caps our move.

Sell below 115.66. Place stop loss at 116.00 and take profit at 114.83.

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Technical analysis of USDX for November 7, 2016

The US dollar is strengthening as expected. Last week I said that it was time for the dollar index to bounce to form a countertrend against the downward move that has started. This bounce is expected to be short lived.

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Black lines - bearish channel

The Dollar index had broken out of the bearish channel last Friday and was trading on top of the upper boundary. Today we saw prices gap up higher towards the kijun-sen resistance (yellow line indicator). Price remains below the Ichimoku cloud on the 4 hour chart. I expect the cloud area to be tested.

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On a weekly basis prices have reached the 38% Fibonacci retracement already and this week's candle is promising for some more upside at least for 2 more days. I do not expect the dollar index to make a higher high. It is likely to make a lower high and reverse. The 98-98.30 area is very possible to be the lower high area.The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of gold for November 7, 2016

Gold price got rejected near its recent highs above $1,305 and is turning lower. With the dollar strengthening from last Friday, gold is expected to break recent low and move lower towards $1,270. My longer-term view remains bullish.

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Red line - resistance

Gold price has already broken the kijun-sen (yellow line indicator) on the 4 hour chart with a gap down. The move towards $1,270 has started. I expect to see this decline stop around the Ichimoku cloud levels of $1,270.

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Blue line - resistance

Weekly resistance at $1,310 provided a rejection and price is now pulling back towards the weekly Tenkan- and Kijun-Sen (red and yellow line indicators). A weekly close below $1,270 will be a bearish sign and could imply that the entire correction may be not over yet and we may see a deeper pull back towards $1,200. If the price breaks above the blue resistance line, we should expect $1,350 to be challenged.

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Daily analysis of major pairs for November 7, 2016

EUR/USD: This market was able to go further upward, following the rally attempt it began on October 28. Since then, price has gone upwards by 240 pips, leading to a bullish outlook on the market. Further rally is anticipated this week, as bulls will attempt to target the resistance lines at 1.1150, 1.1200 and 1.1250. The only threat to the current bullish signal is when USD gathers vivid stamina.

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USD/CHF: Since this pair could not go above the key psychological level at 1.0000 (even an attempt to reach it on October 25 was forestalled), price dropped sharply last week. The market closed below the resistance level at 0.9700, forming a strong Bearish Confirmation Pattern on the 4-hour chart. Unless USD gathers lots of stamina this week, further bearish movement is possible.

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GBP/USD: The GBP/USD went upwards by 370 pips last week, testing the distribution territory at 1.2550. This has led to a bullish bias in the short term, and additional movement of 1,000 pips to the upside would also result in bullish bias on a bigger timeframe like the daily chart. Unless USD gains strong momentum this week, bulls would attempt to reach the distribution territories at 1.2600 and 1.2650.

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USD/JPY: The USD/JPY went flat on Monday, and then began to decline on Tuesday. Price was near to test the demand level at 102.50, and it is likely to make another attempt to test it this week (it could even breach it to the downside). The recent bullish bias has been rendered invalid because of the decline that was witnessed last week. However, this does not rule out a possibility of bullish attempts on JPY pairs.

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EUR/JPY: This currency trading instrument did not do anything significant last week. Price merely underwent some bearish correction in the middle of last week, and then ended with a bullish candle on Friday. By the end of this week, price would have gone above the supply zone at 115.50; or below the demand zone at 113.00.

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

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EUR/NZD - Daily

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EUR/NZD - 4 Hourly

Spiked lower to 1.5008 in early Far East trading hours. The break below 1.5066 has forced us to change our short term count slightly and move the low of wave (ii) to the 1.5008 low. We still favor that the September low at 1.5006 will continue to act as a floor for the next impulsive rally higher.

That said, we have some major hurdles to cross before we can say with confidence that the long-term corrective low has been seen. First we need to see a break above minor resistance at 1.5225 and more importantly a break above resistance at 1.5454 that will secure the 1.5006 low for now.

Trading recommendation:

Our stop at 1.5060 was hit. We will re-buy EUR on a break above 1.5225 and place our stop at 1.5000.

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

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EUR/JPY - Daily

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EUR/JPY - 4 Hourly

The 61.8% corrective target of the rally from 112.57 to 115.68 seen at 113.75 held without problems for the next rally above 115.68 calling for more upside towards important resistance (neckline resistance of the inverse S/H/S bottom) at 116.28. A break above this resistance will strongly favor our bullish count and call for a continuation towards 118.47 and 122.00.

Only an unexpected break below support at 113.97 will again question our preferred bullish count.

Trading recommendation:

We are long EUR from 114.75 and have placed our stop at 113.95. If you are not long EUR yet, then buy near 114.80 and use the same stop at 113.95.

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Technical analysis of EUR/USD for Nov 07, 2016

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When the European market opens, some Economic Data will be released such as Eurogroup Meetings, Retail Sales m/m, Sentix Investor Confidence, Retail PMI, German Factory Orders m/m. The US will release the economic data, too, such as Consumer Credit m/m, Loan Officer Survey, Labor Market Conditions Index m/m, so, amid the reports, EUR/USD will move in a low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Breakout BUY Level: 1.1153.

Strong Resistance:1.1147.

Original Resistance: 1.1136.

Inner Sell Area: 1.1125.

Target Inner Area: 1.1099.

Inner Buy Area: 1.1073.

Original Support: 1.1062.

Strong Support: 1.1051.

Breakout SELL Level: 1.1045.

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

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Technical analysis of USD/JPY for Nov 07, 2016

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In Asia, Japan will release the Average Cash Earnings y/y, Monetary Policy Meeting Minutes and the US will release some Economic Data such as Consumer Credit m/m, Loan Officer Survey, Labor Market Conditions Index m/m. So, there is a probability the USD/JPY will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Resistance. 3: 104.63.

Resistance. 2: 104.42.

Resistance. 1: 104.22.

Support. 1: 103.97.

Support. 2: 103.76.

Support. 3: 103.56.

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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Daily analysis of USDX for November 07, 2016

USDX is currently doing a breakout below the 97.12 level, which is opening the doors to test the 96.47 level. However, because the US presidential elections are coming this Tuesday, the index may be performing under sideways moves, but still, we see a bearish bias strengthening across the board, below the 200 SMA at H1 chart. If USDX does a rebound at the current stage, it can go towards the 97.62 level.

USDXH1.png

H1 chart's resistance levels: 97.62 / 98.01

H1 chart's support levels: 97.12 / 96.47

Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the USD Index breaks with a bearish candlestick; the support level is at 97.12, take profit is at 96.47 and stop loss is at 97.75.

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

Daily analysis of GBP/USD for November 07, 2016

The pair is gaining ground above the 1.2500 psychological level, ahead of the US presidential elections, which will take place on Tuesday. Currently, GBP/USD is being favored by the bullish momentum after recent UK High Court ruling about Brexit, but further gains could be capped ahead of the US elections, as the markets could start to trade in a wait-and-see mode. A support zone is located at the 1.2465 level.

GBPUSDH1.png

H1 chart's resistance levels: 1.2605 / 1.2740

H1 chart's support levels: 1.2465 / 1.2413

Trading recommendations for today: Based on the H1 chart, buy (long) orders only if the GBP/USD pair breaks a bullish candlestick; the resistance level is at 1.2605, take profit is at 1.2740 and stop loss is at 1.2471.

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