USD/CAD intraday technical levels and trading recommendations for November 18, 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) was 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.

The USD/CAD pair was trapped between the price levels of 1.3000 (61.8% Fibonacci level) and 1.3360 (50% Fibonacci level) until bullish breakout took place two weeks ago.

Note that the USD/CAD pair was challenging the upper limit of the depicted flag pattern around 1.3360-1.3400 which failed to apply enough bearish pressure on the pair.

Bullish persistence above 1.3360 will probably liberate a quick bullish movement towards 1.3650 unless the pair comes to close below 1.3360 before the end of the current week.

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Intraday technical levels and trading recommendations for NZD/USD for November 18, 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.

During August and September, a consolidation range was established from the price level of 0.7250 up to 0.7350.

Later on October 20, the lower limit of the consolidation range (0.7250) stood as a temporary resistance which initiated a bearish movement towards 0.7100 (lower limit of the depicted channel).

Bullish recovery was expressed around the price level of 0.7100 on October 28. Hence, a double-bottom pattern was expressed on the chart.

Bullish fixation above 0.7250 and 0.7350 was needed to allow further bullish advance towards the projected target of the reversal pattern around 0.7450.

However, significant signs of a bearish reversal were expressed around the upper limit of the price range (0.7350).

The bearish breakdown of 0.7250 (lower limit of the depicted range) enhanced the bearish side of the market towards the price level of 0.7100 (recent bottom of October 28) which was recently challenged.

Bearish persistence below 0.7100 allows quick bearish decline towards 0.6960 (BUY ZONE) where bullish rejection and a valid BUY entry should be expected. S/L should be placed below 0.6900.

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Intraday technical levels and trading recommendations for GBP/USD for November 18, 2016

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The price zone between 1.3845 and 1.3550 (historical bottoms set in January 2009) was considered a significant demand zone to be watched for bullish recovery.

However, by the end of June a significant bearish break 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 confirmed the bearish Flag pattern. That's why, bearish projection target would be located around 1.2020.

Recently, bullish recovery was manifested around 1.2080. That is why, a bullish pullback was being executed towards 1.2700.

The recent bullish pullback towards 1.2700 was suggested to be watched for a valid SELL entry.

S/L should be set as a daily closure above 1.2700. T/P levels should be located at 1.2330 and 1.2130.

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Intraday technical levels and trading recommendations for EUR/USD for November 18, 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 longer term, the level of 0.9450 will remain a projected bearish target when 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 persistence below 1.0825 is needed to enhance this bearish scenario.

In September 2016, temporary bullish breakout above 1.1250 was expressed again, but evident bearish pressure was applied on the EUR/USD pair on September 16.

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).

On November 9, obvious bearish breakdown of the 1.1000 price level occurred (Shooting Star daily candlestick). Moreover, further bearish decline below 1.0825 (Fibonacci Expansion 100%) was expressed earlier this week.

The current bearish persistence below 1.0825 allowed further bearish decline to occur towards 1.0570 (demand level) where price action should be watched for short-term bullish recovery and a possible BUY entry.

On the other hand, bearish closure below the depicted demand level around 1.0570 allows further bearish decline. Initial bearish target would be located around 1.0220.

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Technical analysis of EUR/NZD for November 18, 2016

After consolidation EUR/NZD is now trading below both 50- and 200-Moving Averages suggesting that it might be finally ready to continue going lower.

The pair broke below the uptrend trendline and rejected the downtrend trendline. Fibonacci applied the corrective wave after breaking the support at 1.5170 shows that the nearest downside target is at 1.4960 area.

Consider selling EUR/NZD on small corrective waves up near 1.5080, targeting 161.8% Fibs (1.4960) Suggested stop loss is 1.5130.

Support: 1.5050, 1.4960

Resistance: 1.5140

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Technical analysis of CAD/JPY for November 18, 2016

According to our previous analysis, after breaking above the 81.40 resistance, CAD/JPY is yet to test the next upside target at 82.55. Currently it is trading near 261.8% Fibs which could act as support and provide a good entry point to go long.

Consider buying CAD/JPY at the current price (81.40) targeting 82.55. Suggested stop loss is 80.50.

Support:81.40, 80.30

Resistance: 82.55

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EUR/NZD analysis for November 18, 2016

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Recently, EUR/NZD has been moving sideways at the price of 1.5070. Using the market profile in the 15M time frame, I found today's point of control at the price of 1.5085. The price is trading below 21SMA, which is a sign of weakness. I also found a support cluster at the price of 1.5050 and would like to see a breakout to confirm the downward direction. Watch for selling opportunities. The downward target is set at the price of 1.5015 (Fibonacci expansion 161.8%).

Fibonacci Pivot Points:

Resistance levels

R1: 1.5150

R2: 1.5175

R3: 1.5215

Support levels:

S1: 1.5070

S2: 1.5050

S3: 1.5000

Trading recommendations for today: Watch for potential selling opportunities.

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Gold analysis for November 18, 2016

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Since our previous analysis, gold has been trading downwards. The price tested the level of $1,202.76 in a high volume. Using the market profile on 15M time frame, I found today's point of control at the price of $1,208.20. I found signs of a trend dynamic from bearish to bullish. Price is trading above 21SMA, which indicates strength. Besides, a down bar closed in the middle of the background is another sign of strength. Watch for potential intraday buying oppportunities.

Resistance levels:

R1: 1,226.45

R2: 1,331.30

R3: 1,239.00

Support levels:

S1: 1,210.70

S2: 1,205.40

S3: 1,198.15

Trading recommendations for today: Watch for potential buying opportunities.

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Global macro overview for 18/11/2016

Global macro overview for 18/11/2016:

ECB President Mario Draghi was a keynote speaker at the 26th European Banking Congress in Frankfurt. During the speech, he assured that ECB will continue to act as warranted by using all instruments available within the mandate. He mentioned, that eurozone recovery still relies to a considerable degree on monetary policy and it has been more broad-based with less difference in economic performance across countries. Moreover, he added that inflation convergence towards 2% needs to be durable, even with a reduction in monetary accommodation. In conclusion, Mario Draghi delivered a typical speech, especially remarks about inflation expectations. Otherwise, some hawkish statements have been made many times previously regarding the eurozone recovery and ECB quantitative easing program.

Let's now take a look at the EUR/CAD technical picture in the daily time frame. The market reverses after the US presidential election results and now the bears are in full control over this market. The price is trading below all of the moving averages and it looks like the bears might want to test the near-term technical support at the level of 1.4247 soon. If this level is clearly violated, then the next technical support will be seen at the level of 1.4180.

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AUD/JPY bearish move in progress

We remain bearish below major resistance at 81.91 (Fibonacci retracement, Fibonacci projection, horizontal resistance) for a further drop to 80.27 (Fibonacci retracement, horizontal overlap support, recent swing low support) as the first big level to play to.

RSI (21) is seeing major resistance from 72%.

Sell below 81.91. Stop loss at 82.65. Take profit at 80.27.

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NZD/USD turn bullish above key support

We turn bullish above support at 0.7010 (Fibonacci projection, bullish divergence) looking for a push up to at least the 0.7112 level (Fibonacci retracement, recent swing high resistance).RSI (34) is also seeing a bounce from support at 36% and bullish divergence vs price is signalling a bullish reversal is approaching.

Buy above 0.7010. Stop loss at 0.6950. Take profit at 0.7112.

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Global macro overview for 18/11/2016

Global macro overview for 18/11/2016:

According to the US Labor Department, the Consumer Price Index advanced more than a month ago. Market participants expected CPI to increase to 0.4% m/m and 1.6% y/y, which was more than last month reading of 0.3% m/e and 1.5% y/y. The CPI at the level of 1.6% means it is the largest annual increase since October 2014. Another CPI sub-index, Core CPI, which excludes prices for volatile items like energy and food, stayed unchanged at the level of 0.1%, while market participants expected an increase to 0.2%. In conclusion, higher inflation and good situation on the US jobs market will encourage the FED to hike the interest rate in December. Currently, the CME Group FedWatch Tool is pricing the probability of the rate increase at 90.6%.

Let's now take a look at the EUR/USD technical picture in the 4H time frame. The growing bullish divergence between the price and the momentum oscillator suggests a corrective relief rally to occur soon. The next resistance is seen at the level of 1.0666 and the local support is seen at the level of 1.0580.

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Technical analysis of USD/CHF for November 18, 2016

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Overview:

  • The USD/CHF pair continues to move upwards from the level of 0.9989. Yesterday, the pair rose from the level of 0.9989 to a top around 1.0090. Today, the first resistance level is seen at 1.0138 followed by 1.0179, while daily support 1 is seen at 0.9989 (61.8% Fibonacci retracement). According to the previous events, the USD/CHF pair is still moving between the levels of 0.9989 and 1.0138. Furthermore, if the trend is able to break out through the first resistance level at 1.0138, we should see the pair climbing towards the double top (1.0179) to test it. Therefore, buy above the level of 1.0060 with the first target at 1.0138 in order to test the daily resistance 1 and further to 1.0179. Besides, it might be noted that the level of 1.0179 is a good place to take profit because it will form a double top. On the other hand, in case a reversal takes place and the USD/CHF pair breaks through the support level of 1.0056, a further decline to 0.9989 can occur which would indicate a bearish market. Additionally, currently, the price is in a bearish channel. This is confirmed by the RSI indicator signaling that we are still in a bullish trending market.
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Technical analysis of USD/CAD for November 18, 2016

General overview for 18/11/2016:

The top for the wave Z (brown) will get invalidated if the price violates the level of 1.3589. The dynamic rebound of the market from the level of 1.3398 might suggest wave b (green) is in progress (or it is done), but to confirm this scenario, the price must break out below the gray rectangle zone between the levels of 1.3496 - 1.3507. Otherwise, another leg upward is quite possible.

Support/Resistance:

1.3663 - WR1

1.3507 - Intraday Resistance

1.3464 - Weekly Pivot

1.3398 - Intraday Support

1.3378 - WS1

1.3290 - 13312 - Demand Zone

1.3265 - Wave (b) Low

Trading recommendations:

Bearing in mind the good risk/reward ratio supported by the current short-term Elliott wave count, day traders should consider opening sell orders with tight SL and TP open for now.

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Technical analysis of NZD/USD for November 18, 2016

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Overview:

  • The NZD/USD pair:
  • The bias remains bearish in the nearest term testing 0.7034 or lower. Immediate support is seen around 0.7076. A clear break below that area could lead price to the neutral zone in the nearest term. Price will test 0.7034, because in general, we remain bearish on November 17th, 2016. Yesterday, the market moved from its bottom at 0.7034 in order to try breaking it. Today, on the four-hours chart, the current rise will remain within a framework of correction. However, if the pair fails to pass through the level of 0.7122 (the first resistance), the market will indicate a bearish opportunity below the level of 0.7122 (the level of 0.7122 coincides with tha ratio of 23.6% Fibonacci retracement). Since there is nothing new in this market, it is not bullish yet. Sell deals are recommended below the level of 0.7122 with the first target at 0.7034 so as to test the double bottom. If the trend breaks the double bottom level of 0.7034, the pair is likely to move downwards continuing the development of a bearish trend to the level of 0.6980 in order to test the daily support 3. Besides, it should be noted that the strong support has already seen at the level of 0.6980 today.

Daily key levels:

  • Major resistance: 0.7175
  • Minor resistance: 0.7122
  • Intraday pivot point: 0.7076
  • Minor support: 0.7034
  • Major support: 0.6980
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Technical analysis of EUR/JPY for November 18, 2016

General overview for 18/11/2016:

The top for the wave -ii- or b is now in place, so the market should start to fall towards intraday support at the level of 116.24. On the other hand, the intraday resistance at the level of 117.49 should act as an invalidation level for the count, so any violation of this level will invalidate the current bearish scenario. Nevertheless, at least one more wave to the downside is still being anticipated in order to complete the cycle.

Support/Resistance:

117.49 - Intraday Resistance

117.19 - WR1

116.24 - Intraday Support

115.45 - Weekly Pivot

114.37 - WS1

112.66 - WS2

Trading recommendations:

Bearing in mind the good risk/reward ratio supported by the current short-term Elliott wave count, day traders should consider opening sell orders with SL just above the level of 117.49 and TP open for now.

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Technical analysis of USDX for November 18, 2016

The Dollar index made new highs yesterday and continues to rise. Price remains in a bullish trend in all time frames. Overbought conditions and divergence signs are still there providing a warning. 100 price level is important junction for a short-term trend reversal.

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Black lines - bullish channel

The Dollar index continues to trade above the Ichimoku cloud and inside the bullish channel. Short-term support is at 100 where the cloud support is found. Price is very close to the upper channel boundary. At current price levels I would not only look to protect longs but also look to short this index. A pullback is warranted and justified.

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Blue line - previous highs

Red lines - trading range

Green line - important support trend line

The Dollar index is breaking to new multi-year highs with an impressive breakout and very strong bullish trend. On a weekly basis there are important bearish divergence signals in the stochastic oscillator. A pull back towards 98 could be justified. However the bullish trend will be in danger if prices break below the green trend line support.

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Wave analysis of gold for November 18, 2016

With the new low yesterday at $1,203 Gold price most probably completed wave C down and 5 wave down from the post election high. Gold price action is placing the last puzzle pieces of the entire correction that started from the highs at $1,375. I remain long-term bullish about Gold.

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On the 4-hour chart above, we can seen a 5-wave decline from the highs since after the US election results were out. This is a typical wave C formation of 5 waves. This is the last part of a wave 2 decline. Most Gold traders share bearish sentiment as wave 2 would suggest. People are talking again about new lows in Gold as the Dollar strength is expected to continue through the roof. Not by me.

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The final pieces of the wave structure puzzle are being placed. Wave 2 is already complete or will soon be completed. Through the last few months my analysis was that if $1,240 was broken Gold would push towards $1,220-$1,180 to complete wave 2. Gold made an impulse rise from $1,045 to $1,375 and a corrective decline from that high to yesterday's low. I now expect Gold price to reverse strongly upwards.The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of USD/JPY for November 18, 2016

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USD/JPY is expected to trade in a higher range. The pair recorded a succession of the higher tops and higher bottoms since Nov 15, and is now accelerating on the upside. The new challenge to its next resistance at 110.6 seems more likely to occur. The upward momentum is further reinforced by its rising 20-period and 50-period moving averages, which play support roles and maintain the upside bias. The relative strength index stands firmly above its neutrality area at 50, and is positively oriented.

The U.S. Labor Department reported that CPI advanced 1.6% on year in October (as expected), the fastest growth since October 2014. It also announced that initial jobless claims dropped 19,000 to 235,000 for the week ended November 12 (vs. 257,000 expected), the lowest level in over 40 years.

In addition, the Commerce Department reported that housing starts jumped 25.5% on month to a seasonally adjusted annual rate of 1.32 million units (vs. 1.16 million units expected), the biggest percentage increase since July 1982.

In a testimony before the Joint Economic Committee of the Senate and the House, Yellen pointed out, "At our meeting earlier this month, the Committee judged that the case for an increase in the target range had continued to strengthen and that such an increase could well become appropriate relatively soon if incoming data provide some further evidence of continued progress toward the Committee's objectives. The evidence we have seen since we met in November is consistent with our expectation of strengthening growth and improving labor markets and inflation moving up, U.S. economic growth appears to have picked up."

Above 109.50, look for further upside with 111.10 and 111.65 as 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 111.10 and the second one at 111.65. In the alternative scenario, short positions are recommended with the first target at 108.65 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 107.75. The pivot point lies at 109.50.

Resistance levels: 111.10, 111.65, 112.05

Support levels: 108.65, 107.75, 106.90

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Technical analysis of USD/CHF for November 18, 2016

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USD/CHF is expected to post some further upside movement. The pair is trading above its rising 20-period and 50-period moving averages, which are acting as support roles, so the pair maintains the upside bias. The relative strength index stands firmly above its neutrality level at 50 and calls for further upside.

The U.S. Labor Department reported that CPI advanced 1.6% on year in October (as expected), the fastest growth since October 2014. It also announced that initial jobless claims dropped 19,000 to 235,000 for the week ended November 12 (vs. 257,000 expected), the lowest level in over 40 years.

Additionally, 1.0025 is playing key support role, which should limit the downside potential. Above 1.0025, look for a further upside toward 1.0115 and 1.0145 in extension.

Resistance levels: 1.0115, 1.0145, 1.0170

Support levels: 0.9990, 0.9940, 0.9900

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Technical analysis of NZD/USD for November 18, 2016

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NZD/USD is under pressure. The pair broke below its 20-period and 50-period moving averages and consolidated 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 below its neutrality level at 50 and lacks upward momentum. As long as 0.7060 holds on the upside, look for a further drop toward 0.6975 and 0.6935 in extension.

The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 0.6975. A break below this target will move the pair further downwards to 0.6935. The pivot point stands at 0.7060. In case the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, long positions are recommended with the first target at 0.7110 and the second one at 0.7140.

Resistance levels: 0.7110, 0.7140, 0.7180

Support levels: 0.6975, 0.6935, 0.6875

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Technical analysis of GBP/JPY for November 18, 2016

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GBP/JPY is expected to trade with bullish bias as the key support lies at 135.90. The pair is trading below its 20-period and 50-period moving averages, which play resistance roles, while the 20-period moving average crossed below the 50-period one. The relative strength index is below its neutrality level at 50 and lacks upward momentum. Nevertheless, 135.90 represents a significant key support level, 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 137.85 first. A break above this level would call for a further advance toward 138.50.

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 137.85 and the second one at 138.50. In the alternative scenario, short positions are recommended with the first target at 134.95 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 134.15. The pivot point lies at 135.90.

Resistance levels: 137.85, 138.50, 139.25

Support levels: 134.95, 134.15, 133.40

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Elliott wave analysis of EUR/NZD for November 18, 2016

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Wave Summary:

We are going nowhere here. We have consolidated within the 1.5016 - 1.5266 area for the week now. Hopefully, this cross is building up energy to make a break for a firm test and likely breach above the ending diagonal resistance line near 1.5450 that will confirm a return to the origin of the ending diagonal at 1.5838.

That said, we have to be aware that a break below support at 1.5016 will call for more downside pressure to 1.4812 and maybe even slightly below. Nevertheless, we think the downside potential remains limited.

Trading recommendation:

We are long EUR from 1.4950 with stop placed at 1.5000. If you are not long EUR yet, then buy upon a break above 1.5200 and use the same stop at 1.5200.

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Elliott wave analysis of EUR/JPY for November 18, 2016

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Wave summary:

We continue to look for a break above minor resistance at 117.49 to confirm more upside pressure towards 118.59 and 122.00 as the next upside targets.

A clear break above 117.49 will also mean a clear break above the pitchfork mid-line and give us a 80% likelihood of a continuation higher to the pitchfork resistance line, which is currently seen near 121.60. Short term, support is seen at 116.60 and should ideally protect the downside for the break above 117.49. If support at 116.60 fails to protect the downside, more sideways consolidation should be expected.

Trading recommendation:

We are long EUR from 115.04 with stop placed at 116.04. If you are not long EUR yet, then buy a break above 117.49 and place your stop at 116.50.

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Technical analysis of EUR/USD for Nov 18 2016

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When the European market opens, some economic data will be released such as Current Account and German PPI m/m. The US will present the economic report too, namely CB Leading Index m/m. So amid the reports EUR/USD will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Breakout BUY Level: 1.0665.

Strong Resistance:1.0659.

Original Resistance: 1.0648.

Inner Sell Area: 1.0637.

Target Inner Area: 1.0612.

Inner Buy Area: 1.0587.

Original Support: 1.0576.

Strong Support: 1.0565.

Breakout SELL Level: 1.0559.

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 18, 2016

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In Asia, Japan today will not release any economic data. However, the US will release th CB Leading Index m/m. 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: 111.13.

Resistance 2: 110.91.

Resistance 1: 110.69.

Support 1: 110.43.

Support 2: 110.21.

Support 3: 109.99.

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 major pairs for November 18, 2016

EUR/USD: The EUR/USD pair has been declining further and further. Since the high of November 9, the market has gone downwards by 670, now below the resistance line at 1.0650, and targeting the support line at 1.0600.

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USD/CHF: This pair has been edging higher and higher, forming a clearer Bullish Confirmation Pattern on the 4-hour chart. Price is now above the support level at 1.0050, and bulls may target the resistance levels at 1.0100 and 1.0150, which is attainable today or next week.

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GBP/USD: A constant presence of bears in this market has already become a threat to the recent bullish bias. Things are now turning gradually bearish, and a movement of another 100 pips to the downside would result in a bearish signal in the short and long terms. Further southwards movement would result in a confirmed bearish outlook.

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USD/JPY: The USD/JPY pair has been going from strength to strength. Since the low of November 9, the market has gone upwards by 880 pips, now above the demand level at 110.00, and targeting the supply level at 110.50.

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EUR/JPY: In spite of dull activities on this currency cross, there remains a Bullish Confirmation Pattern in the market. The EMA 11 is above the EMA 56 and the RSI period 14 is above the level 20. This means when things become strong again in the market, it would most probably favor bulls. It is interesting to watch the supply zones at 117.50 and 118.00.

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Daily analysis of USDX for November 18, 2016

USDX remains strongly bullish, as we're not seeing a top in the near term. Currently, it's challenging the 101.00 psychological level, where a breakout should unleash more bullish force towards the 101.74 level. However, if the index manages to do a pullback at the current stage, then we can expect a decline to test the 99.92 level. MACD indicator remains supporting the bullish idea.

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H1 chart's resistance levels: 101.00 / 101.74

H1 chart's support levels: 99.92 / 99.11

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 101.00, take profit is at 101.74 and stop loss is at 100.30.

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Daily analysis of GBP/USD for November 18, 2016

GBP/USD is looking for a clear direction in the short term as the pair is trapped inside a sideways range across the board, hovering around the 200 SMA zone. If we see a breakout above the resistance level of 1.2516, then we can expect an advance towards November 11th highs, because the support area of 1.2377 seems to be a very strong demand zone.

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H1 chart's resistance levels: 1.2434 / 1.2516

H1 chart's support levels: 1.2377 / 1.2254

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 1.2434, take profit is at 1.2516 and stop loss is at 1.2351.

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