Technical analysis of GBP/CHF for December 2, 2016

GBP/CHF found strong support at 50-Moving Average that it has been rejecting for a number of times. It looks very much like an uptrend will continue at least to test 0% Fibs applied to the ascending channel breakout.

Consider buying GBP/CHF on small pullbacks to target 0% Fibs (1.2908). Suggested stop loss is below 50-Moving Average. If it manages to break above the 0% Fibs target, price might go much further up.

Support: 1.2670

Resistance: 1.2908

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Technical analysis of CAD/CHF for December 2, 2016

CAD/CHF continues to trade up and currently is above both 50- and 200-Moving Averages. Price broke above the descending channel where Fibonacci applied to the channel breakout point indicates that nearest target is 0.7622 which hasn't been tested yet. If broken, CAD/CHF could go further up to test 0% Fibs (0.7795).

Consider buying CAD/CHF on small pullbacks targeting either 23.6% or 0% Fibs. Suggested stop loss is below 50-Moving Average.

Support: 0.7115

Resistance: 0.7622, 0.7795

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Gold analysis for December 02, 2016

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Since our previous analysis, gold has been moving sideways at the price of $1,171.00. Using the market profile on 30M time frame, I found yesterday's point of control at the price of $1,167.00. Price is trading below 21SMA, which is a sign of weakness. Be careful when buying and watch for potential selling opportunities. The first downward target is set at the price of $1,160.80 (swing low).

Fibonacci pivot points:

Resistance levels:

R1: 1,172.75

R2: 1,176.20

R3: 1,181.80

Support levels:

S1: 1,161.60

S2: 1,158.20

S3: 1,152.60

Trading recommendations for today: Sellers are in control today, so watch for selling opportunities.

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EUR/NZD analysis for December 02, 2016

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Recently, EUR/NZD has been moving upwards. As I expected, the price tested the level of 1.5063 in a high volume. Anyway, using the market profile chart on 30M time frame, I found that buyers lost power near the price of 1.5063 and that buying at this stage looks risky. I found a breakout of the upward trendline and price is trading below 21SMA, which is a sign of weakness. Be careful when buying EUR/NZD and watch for potential selling opportunities. A dDownward target is set at the price of 1.4935.

Fibonacci Pivot Points:

Resistance levels

R1: 1.5065

R2: 1.5095

R3: 1.5145

Support levels:

S1: 1.4965

S2: 1.4935

S3: 1.4880

Trading recommendations for today: watch for selling opportunities.

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USD/CAD intraday technical levels and trading recommendations for December 2, 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 a bullish breakout took place three 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 persists below the price level of 1.3360 until the weekly closure.

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Global macro overview for 02/12/2016

Global macro overview for 02/12/2016:

The key fundamental data of the week, the US non-farm employment change report, is scheduled to be released at 01:30 pm GMT today. However, all eyes are on the Sunday's risk events: Italy's referendum and Austria's tight presidential election. The latest median forecast for nonfarm payroll increase in November calls for 177K – slightly higher than a rise of 161K in October. Clearly enough that the Federal Reserve will proceed with its interest rate hike. Moreover, the US unemployment is expected to remain unchanged at 4.9% and average hourly wages to rise by 0.2% from a month ago.The odds of the Fed hiking rates at its December meeting are almost 100% according to the CME FedWatch Tool. In conclusion, even if today's jobs data misses some arbitrary threshold level, the Fed is likely to make a move in December.

Let's now take a look at the EUR/USD technical picture on the 4H time frame ahead of the NFP release. Bulls have managed to break out of the triangle slightly, but the technical resistance at 1.0687 has capped the rally. The market got back to the trading range as it awaits the data release.

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NZD/USD Intraday technical levels and trading recommendations for December 2, 2016

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As long as the NZD/USD pair continued trading above 0.6860, a 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 (the 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 a 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 broken as well.

Bearish persistence below 0.7100 allows a quick decline towards 0.6960 (BUY zone) where bullish rejection and a valid BUY entry was expected. All T/P levels were successfully achieved.

On the other hand, the recent bullish pullback towards 0.7120 was considered for selling the NZD/USD pair as it constituted a recent resistance level. The shooting-star daily candlestick of yesterday enhances this bearish scenario.

S/L should be set as daily closure above 0.7150 to minimize the associated risk.

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Intraday technical levels and trading recommendations for GBP/USD for December 2, 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 a 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).

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 is why, a bearish projection target can be located around 1.2020.

Recently, a bullish recovery was manifested around 1.2080. Therefore, a bullish pullback is being executed towards 1.2700-1.2750.

The current bullish pullback towards the price zone of 1.2700-1.2750 should be considered for a valid SELL entry.

The recent bearish engulfing weekly candlestick enhances this bearish scenario. T/P levels should be located at 1.2300 and 1.2100.

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Intraday technical levels and trading recommendations for EUR/USD for December 2, 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 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 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) applied enough downward 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.

The current bearish persistence below 1.0825 allowed further decline to occur towards 1.0570 (demand level) where bullish rejection and a valid BUY entry were expected by the end of last week. Recent bullish recovery was manifested on Friday.

The price level of 1.0825 (Fibonacci Expansion 100%) constitutes a recent supply level to be watched for a SELL entry if the current bullish pullback persists above 1.0700.

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

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Global macro overview for 02/12/2016

Global macro overview for 02/12/2016:

The manufacturing PMI data from the UK were released yesterday and they fell short of the market expectations. The index unexpectedly fell to 53.4 in November, while market participants expected the score of 54.4 points after the previous 52.2 figure. Nevertheless, the rate of expansion is still "solid" according to IHS Markit. This was the second month of decline in the UK's manufacturing sector, but the index still remains above the 50 mark which separates contraction from expansion. In conclusion, the UK economy was widely expected to experience a strong shock and decline significantly after the Brexit, but confidence quickly recovered to the pre-referendum levels and has been improving so far.

Let's now take a look at the GBP/USD technical picture on the 4H time frame. Bulls managed to break above the technical resistance at the level of 1.2532 which turned into support and tested the next technical resistance at 1.2676. Currently, the market is reversing slightly, but the support at the level of 1.2532 has not been violated so far, as traders are expecting more news from US this afternoon.

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Technical analysis of USD/CAD for December 2, 2016

General overview for 02/12/2016:

The bottom for the wave c (green) moved a little lower to the level of 1.3286. That means the wave a (blue) has been completed as well. The level of 1.3355 is now acting as an intraday resistance, so if the count is correct, the market will move higher towards the golden trend line resistance around the level of 1.3500. A possible wave (b) is developing, so this structure might get complex and time-consuming.

Support/Resistance:

1.3588 - Local High

1.3583 - WR1

1.3482 - Weekly Pivot

1.3429 - WS1

1.3355 - Intraday Resistance

1.3323 - WS2

1.3286 - Intraday Support

Trading recommendations:

As the corrective cycle is still unfolding, daytraders should open only sell deals around the level of 1.3482 as there is incomplete wave progression to the downside. The first TP should be set at the level of 1.3233.

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Technical analysis of EUR/JPY for December 2, 2016

General overview for 02/12/2016:

The impulsive cycle in wave (iii) (green) is completed, so now a larger correction in wave (iv) (green) is anticipated. The pattern anticipated in wave four is a triangle, but the correction might evolve into more complex structure. No signs of any kind of a trend reversal yet as there is still one more wave of a higher degree to be completed before the current impulsive wave progression is terminated.

Support/Resistance:

122.07 - WR2

121.90 - Intraday Resistance

121.16 - WR1

120.82 - Intraday Support

119.23 - Weekly Pivot

118.32 - WS1

116.37 - WS2

Trading recommendations:

The TP at the level of 121.16 has been hit and all buy orders should be closed with profit. Currently, the daytraders should refrain from trading and wait for a better trading setup to occur shortly.

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GBP/USD at major resistance, time to sell

Price is seeing major resistance at 1.2685 (Fibonacci projection, horizontal pullback resistance, previous swing high, Fibonacci retracement) and we expect a drop from this level towards 1.2303.

Stochastic (21,5,3) is seeing major resistance at 94% where we expect a drop from.

RSI (34) is seeing major resistance at 70% where we expect a similar drop from.

Sell below 1.2685. Stop loss at 1.2894. Take profit at 1.2303.

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AUD/USD dropping perfectly from our selling area, remain bearish

Price has risen as expected towards our selling area yesterday. We remain bearish looking to sell on strength below 0.77430 resistance (Fibonacci retracement, horizontal pullback resistance) for a further push down to 0.7317.

RSI (34) is seeing horizontal resistance at 61%.

Sell below 0.7430. Stop loss at 0.7504. Take profit at 0.7317.

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Technical analysis of USD/CHF for December 02, 2016

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Overview:

  • The USD/CHF pair movement was mixed as it took place in a narrow sideways channel for a while.
  • There are no changes in our technical outlook. The market showed signs of instability when it reached the top of 1.0191.
  • Amid the previous events, the price is still moving between the levels of 1.0054 and 1.0191.
  • The daily resistance and support are seen at the levels of 1.0191 and 1.0054 respectively.
  • In consequence, it is recommended to be cautious while placing orders in this area.
  • We should wait until the sideways channel has completed. On the H4 chart, the price spot of 1.0191 remains a significant resistance zone.
  • Therefore, there is a possibility that the USD/CHF pair will move to the downside and the fall structure does not look corrective.
  • Resistance is seen at the level of 1.0191 today. So, sell below 1.0191 with the first target at 1.0100.
  • In overall, we still prefer the bearish scenario as long as the price is below the level of 1.0191.
  • Furthermore, if the USD/CHF pair is able to break out the bottom at 1.0100, the market will decline further to 1.0053.
  • On the other hand, if a breakout takes place at the resistance level of 1.0230, then this scenario may become invalidated. Remember to place a stop loss; it should be set below the second support of 1.0260.
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Technical analysis of NZD/USD for December 02, 2016

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Overview:

  • The NZD/USD pair continues to move downwards below the level of 0.7178. Yesterday, the pair dropped from the level of 0.7138 to the bottom around 0.7073. Today, the first resistance level is seen at 0.7136 followed by 0.7187, while daily support 1 lies at 0.7021. According to the previous events, the NZD/USD pair is still moving between the levels of 0.7136 and 0.7021. Therefore, we expect the price to move in the range between 0.7136 and 0.7021. Hence, if the NZD/USD pair fails to break through the resistance level of 0.7136, the market will decline further to the levels of 0.7050 and 0.7021. There are no changes to our technical outlook. The bias remains bearish in the nearest term, testing the 0.7021 level or lower. This would suggest a bearish market because the RSI indicator is still in a positive area and does not show any trend-reversal signs. The pair is expected to drop lower towards at least 0.6971 with a view to test the double bottom on the H4 time frame. On the contrary, if a breakout takes place at the resistance level of 0.7187 (major resistance), then this scenario may become invalidated.
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Technical analysis of USDX for December 2, 2016

The Dollar index is weakening and testing short-term support at 100.70. With NFP numbers announced today traders should be very cautious as if the economy beats the market expectations we could have the much anticipated third drive higher towards 102.50 to complete the upward cycle.

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Blue line - support trend line

The Dollar index has support at 100.70-100.80. Price is under pressure as we break below the 4-hour cloud support. This is an important support area. So a clear break below 100.70 could signal that the top is in for the Dollar index. Otherwise, if support is held we should expect new highs to be seen near 102.50.

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With oscillators overbought and the weekly candle showing reversal signs, Dollar bulls need to be very cautious. However, the weekly candle could change to bullish after the NFP announcement later today. Volatility is expected to rise today and traders should be patient.

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Technical analysis of gold for December 2, 2016

Gold remains in a bottoming process and inside the bearish short-term channel, without any confirmation yet of a trend reversal. Could the NFP numbers announced today be the reason to start the reversal? Maybe, either way Gold bulls need to be patient.

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Black lines - bearish channel

Gold price bounced off the lower channel boundary. Price is testing short-term resistance at $1,180 where the 4-hour kijun-sen is found. Price remains below the Ichimoku cloud. An exit above the channel and the cloud will be the first important bullish reversal. So bulls need to break above $1,200 to confirm breakout and trend reversal.

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Nothing new on a weekly level. Price is at important long-term support and should reverse higher from current levels. Gold is expected to make a very important long-term low and start a new up trend towards new highs above $1,375.The material has been provided by InstaForex Company - www.instaforex.com

Elliott wave analysis of EUR/JPY for December 2, 2016

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Wave summary:

A test of the pitchfork resistance-line near 121.95 is now being seen. This is close to the (iv) top at 122.00 seen on June 23. Ideally a small spike just above 122.00 will be seen, but we have entered an area, from where a wave (iv) correction towards at least 119.76 and more likely closer to the 38.2% corrective target at 118.39 could be seen anytime now.

We are only looking for a correction in wave (iv). As the correction in wave (ii) was a simple zig-zag, wave (iv) should turn into some kind of flat correction or a triangle consolidation giving us more of a sideways trading area.

Trading recommendation:

We are short EUR from 121.85 with stop placed at 122.85. If you are not short EUR yet, then sell near 122.00 or upon a break below 121.54 and use the same stop at 122.85.

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Technical analysis of USD/JPY for December 02, 2016

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USD/JPY is expected to trade with a bearish bias below 114.30. The pair remains in consolidation, but is still holding above its key resistance at 114.30. The relative strength index lacks upward momentum. Even though a continuation of the consolidation cannot be ruled out, its extent should be limited.

On Thursday, gains in blue chip stocks brought the Dow Jones Industrial Average to a fresh record high, while sharp losses in technology shares weighed down the Nasdaq. The DJIA advanced 68 points (+0.4%) to 19,191, while the S&P 500 declined 7 points (-0.4%) to 2,191 and the Nasdaq Composite shed 72 points (-1.4%) to 5,251.

Bank and financial shares posted gains, and energy shares were helped by oil prices' extended rally. Semiconductor makers fell sharply on reports that Apple may be slowing orders for its latest-generation iPhone. The S&P 500 technology index lost 2.3%, Facebook dropped 2.8%, and Microsoft was down 1.8%.

Regarding major economic data, the Institute for Supply Management (ISM) posted its November Manufacturing PMI at 53.2 (vs. 52.5 expected, 51.9 in October). The Labor Department reported 268,000 initial jobless claims for the week ended November 26, higher than 253,000 expected and 251,000 for the prior week.

The selloff in U.S. government bonds showed no signs of ending. The benchmark 10-year U.S. Treasury yield jumped to a 16-month intraday high of 2.491% before settling at 2.442%, up from 2.365% Wednesday.

To sum up, as long as the key level at 114.30 is not broken, look for a further downside toward 113.25 first.

Trading Recommendation: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 113.25. A break below this target will move the pair further downwards to 112.55. The pivot point stands at 114.30. In case the price moves in the opposite direction and bounces back from the support level, it will go 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 114.80 and the second one at 115.30.

Resistance levels: 114.80, 115.30, 115.85

Support levels: 113.25, 112.55, 112.00

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Technical analysis of USD/CHF for December 02, 2016

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USD/CHF is expected to trade with bearish bias as Key resistance at 1.0140. The pair is trading below a horizontal resistance at 1.0140, which should limit the upside potential. The relative strength index is bearish below its neutrality level at 50. Additionally, the declining 20-period and 50-period moving averages suggests that the pair still has potential for a further downside. The selloff in U.S. government bonds showed no signs of ending. The benchmark 10-year U.S. Treasury yield jumped to a 16-month intraday high of 2.491% before settling at 2.442%, up from 2.365% Wednesday.

As long as 1.0140 is not broken up, the pair is likely to return to its next support at 1.0075. A break below this level would call for a further downside toward 1.0050.

Resistance levels: 1.0175, 1.0195, 1.0220

Support levels: 1.0075, 1.0050, 1.0005

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Technical analysis of NZD/USD for December 02, 2016

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NZD/USD is expected to trade with bullish bias. The pair stands firmly above its key support at 0.7045, and is expected to challenge its next resistance at 0.7130. The relative strength index is bullish, without displaying any reversal signals.

To conclude, as long as 0.7045 is not broken down, a further bounce is preferred with 0.7130 and 0.7170 as targets.

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 0.7130 and the second one at 0.7170. In the alternative scenario, short positions are recommended with the first target at 0.7025 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 0.7000. The pivot point lies at 0.7045.

Resistance levels: 0.7130, 0.7170, 0.7200

Support levels: 0.7025, 0.7000, 0.6960

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Elliott wave analysis of EUR/NZD for December 2, 2016

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Wave summary:

The ending diagonal could have completed with the new low seen at 1.4801, but to confirm this is the case a break above minor resistance at 1.5095 and more importantly a break above resistance at 1.5121 will be needed.

As long as minor resistance at 1.5095 is able to cap the upside, we need to allow for the possibility of one more decline closer to 1.4728 before the ending diagonal finally completes and a rally back to the origin of the ending diagonal at 1.5839 is seen.

Trading recommendation:

We will buy EUR at 1.4750 or upon a break above 1.5095

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Technical analysis of GBP/JPY for December 02, 2016

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GBP/JPY is expected to trade with bullish bias above 142.60. The pair has pulled back on its key support at 142.60, representing the current 50-period moving average, which is still heading upward, and should act as a strong support role. The relative strength index is bullish above its neutrality level at 50. Even though a continuation of the consolidation cannot be ruled out, its extent should be limited. Hence, as long as 144.25 holds as the key support, the pair is expected to rise toward 145.20 at 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 144.25 and the second one at 145.20. In the alternative scenario, short positions are recommended with the first target at 141.50 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 140.00. The pivot point lies at 142.60.

Resistance levels: 144.25, 145.20, 146.05

Support levels: 141.50, 140.00, 139.25

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Technical analysis of USD/JPY for Dec 02, 2016

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In Asia, Japan will release the Monetary Base y/y, and the US will release some Economic Data, such as Unemployment Rate, Non-Farm Employment Change, and Average Hourly Earnings m/m. So, there is a probability the USD/JPY will move with medium to high volatility during this day.

TODAY'S TECHNICAL LEVEL:

Resistance. 3: 114.38.

Resistance. 2: 114.15.

Resistance. 1: 113.93.

Support. 1: 113.67.

Support. 2: 113.44.

Support. 3: 113.22.

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 EUR/USD for Dec 02, 2016

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When the European market opens, some Economic Data will be released, such as PPI m/m and Spanish Unemployment Change.The US will release the economic data, too, such as Unemployment Rate, Non-Farm Employment Change, and Average Hourly Earnings m/m, so, amid the reports, EUR/USD will move in a medium to high volatility during this day.

TODAY'S TECHNICAL LEVEL:

Breakout BUY Level: 1.0715.

Strong Resistance:1.0708.

Original Resistance: 1.0698.

Inner Sell Area: 1.0688.

Target Inner Area: 1.0663.

Inner Buy Area: 1.0638.

Original Support: 1.0628.

Strong Support: 1.0618.

Breakout SELL Level: 1.0611.

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 December 2, 2016

EUR/USD: There has not been any strong movement on the EUR/USD so far this week, and there is a faint rally attempt, which might end up being another opportunity to sell short. Only a pullback on USD/CHF would cause this market to rally. Some fundamental figures are expected today and they would have impact on the market.

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USD/CHF: This is a bull market, and despite the fact that price has not done much this week, it is trying to get corrected lower, in the context of an uptrend. The Williams' % Range period 20 is already going into the oversold territory; while the EMA 11 remains above the EMA 56. However, the Williams' % Range period 20 might go out of the oversold area, as price resumes its bullish journey.

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GBP/USD: Just as it was forecasted yesterday, the GBP/USD broke upwards significantly, moving upwards by 180 pips, and reaching a high of 1.2695, before retracing. There is already a Bullish Confirmation Pattern in the 4-hour chart; in spite of the current bearish correction, price might continue moving upwards.

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USD/JPY: The USD/JPY has consistently gone up, since the low of November 9, price has moved up 1350 pips, now above the demand level at 113.50. There is a huge Bullish Confirmation Pattern in in the 4-hour chart and the supply levels at 114.50, 115.00 and 115.50 would be the next targets. As it was correctly predicted, the outlook on JPY pairs remains bullish.

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EUR/JPY: Since Tuesday, this cross has gone upwards by 300 pips, and it is now above the demand zone at 121.50, going towards the supply zone at 122.00. After this, bulls would also target more supply zones at 122.50 and 123.00.

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Daily analysis of GBP/USD for December 02, 2016

Ahead of today's NFP, the US Dollar Index is hovering around the 200 SMA at H1 chart and remains capped by the resistance level of 101.74. Eventually, the index may attempt a decline towards the support zone of 100.53, where a demand zone is located and if it gives up in coming bearish momentum, the next obstacle to the downside would be the 99.39 level.

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H1 chart's resistance levels: 101.74 / 102.61

H1 chart's support levels: 100.53 / 99.39

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 101.74, take profit is at 102.61 and stop loss is at 100.87.

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

Daily analysis of GBP/USD for December 02, 2016

The pair had a strong bullish momentum during Thursday's session and it's expected to remain supported by the 1.2570 level across the board. However, we cannot discard a possible breakout lower to accelerate the downside move towards the 1.2504 level, where it's located a strong demand zone at H1 chart. MACD indicator is calling for that scenario.

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H1 chart's resistance levels: 1.2630 / 1.2674

H1 chart's support levels: 1.2570 / 1.2504

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 1.2630, take profit is at 1.2674 and stop loss is at 1.2586.

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