Gold analysis for December 05, 2016

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Since our previous analysis, gold has been moving downward. The price tested the level of $1,162.26. Using the market profile on 30M time frame, I found yesterday's point of control at the price of $1,174.00. The 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 $1,161.40 (Fibonacci expansion 100%).

Fibonacci pivot points:

Resistance levels:

R1: 1,188.45

R2: 1,194.65

R3: 1,199.40

Support levels:

S1: 1,177.50

S2: 1,172.80

S3: 1,166.50

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

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EUR/NZD analysis for December 05, 2016

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Recently, EUR/NZD has been moving upwards. The price tested the level of 1.5131 in a high volume. Using the market profile on 30M time frame, I found strong trend day and selling looks very risky. I found successful test of supply and the pair is trading above 21SMA. Watch for buying opportunities on the dips. An upward target is set at the price of 1.5290 (Fibonacci expansion 261.8%).

Fibonacci Pivot Points:

Resistance levels

R1: 1.5025

R2: 1.5060

R3: 1.5120

Support levels:

S1: 1.4900

S2: 1.4865

S3: 1.4810

Trading recommendations for today: Watch for buying opportunities.

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Global macro overview for 05/12/2016

Global macro overview for 05/12/2016:

Details of the November 2016 UK Markit/CIPS Services PMI report revealed better than expected figures. Market participants expected a slight drop from 54.5 points to 54.2 points, but the data beat expectations of 55.2 points for the last month. The biggest gain was noted in new orders: 54.9 versus 55.7 previously. All the data looks goods on the surface, not only the PMI for services and manufacturing, but the rest of the economic indicators are still beating expectations. Nevertheless, the sentiment is dropping lower, with politics and inflation the main reasons behind the decrease. This quote from Markit report is the perfect conclusion of the current situation: "The further upturn in the vast services sector shows that the pace of UK economic growth remains resiliently robust in the fourth quarter, despite ongoing uncertainty caused by Brexit".

Let's now take a look at the GBP/USD technical picture in the 4H time frame. The bulls have managed to break out above the technical resistance at the level of 1.2676 and it looks like they are trying to test the next technical resistance at the level of 1.2772, which is just above the 50%Fibo of the last swing down. In case of a further breakout, the next resistnace is 61%Fibo at the level of 1.2903.

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Global macro overview for 05/12/2016

Global macro overview for 05/12/2016:

Preliminary results of the referendum in Italy suggest that the constitutional amendments were rejected with the ratio of 59% -41%, which, according to the earlier declarations, should lead to the resignation of Prime Minister Matteo Renzi. This scenario was viewed as the most probable, however, the single European currency is still losing in value. Italy voted on the acceptance or rejection of the constitutional changes, through which the government of Prime Minister Renzi could enter the financial and economic reform, more or less expected by the European Union or the ECB. Nevertheless, it seems that Renzi lost this challenge as he admitted that he had failed and would resign. In conclusion, there are concerns the "No" vote could boost the prospects of opposition groups who are against keeping Italy in the Eurozone, but it is still too early to take this scenario as a certain thing.

Let's now take a look at the EUR/USD technical picture in the 4H time frame. The market continued to fall until the euro hit $1.0514, its lowest level since March 2015 and then it rebounded sharply. Currently, the market is trading above the technical resistance at the level of 1.0687 as it is slowly approaching the next technical resistance at the level of 1.0745. Please notice that the corrective cycle might extend even higher towards the level of 1.0800 and 1.0900.

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Technical analysis of USD/CAD for December 5, 2016

General overview for 05/12/2016:

The intraday resistance at the level of 1.3356 is the key level to the upside. If this level is not clearly violated, the market will be trading sideways between the weekly pivot at the level of 1.3342 and intraday support at the level of 1.3255. Please pay attention that the bullish divergence between the price and momentum oscillator supports the bullish view.

Support/Resistance:

1.3255 - Intraday Support

1.3342 - Weekly Pivot

1.3356 - Intraday Resistance

1.3431 - WR1

1.3464 - Wave b High

Trading recommendations:

Day traders should open buy orders only if the level of 1.3356 is clearly violated. Otherwise, the sideways price action do not justify engaging in any trade for now.

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Technical analysis of EUR/JPY for December 5, 2016

General overview for 05/12/2016:

A sharp decline towards the level of 118.71 was labeled as wave (iv) or a (green) and since then the market has been rallying in order to complete the last wave up. The projected target is at the level of 122.71 (weekly pivot resistance level 1), but it might extend higher towards the level of 124.00. When the impulsive structure is completed, a larger time frame correction is being expected.

Support/Resistance:

124.00 - WR2

122.71 - WR1

121.85 - Intraday Support

120.62 - Weekly Pivot

119.40 - WS1

118.71 - Technical Support

Trading recommendations:

All day traders with open buy orders should prepare to take the profits off the table at the level of 122.71 and wait for another trading setup to occur shortly.

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Technical analysis of GBP/USD for December 05, 2016

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Overview:

  • The GBP/USD pair has broken resistance at 1.2665 which acts as a support this morning. The pair is moving between the levels of 1.2665 and 1.2836. As the trend is still above the 100 EMA, a bullish outlook remains the same as long as the 100 EMA is headed to the upside. Consequently, the level of 1.2836 remains a key resistance zone. Therefore, there is a possibility that the GBP/USD pair will move upwards above 1.2665, which coincides with a ratio 61.8% of Fibonacci retracement. The falling structure does not look corrective. In order to indicate a bearish opportunity above 1.2665. So, buy above this level with the first target at 1.2836 . Moreover, if the pair succeeds to pass through 1.2836, it will move upwards continuing the bullish trend development to 1.2936 in order to test the weekly resistance 2. However, if a breakout happens at 1.2544, this scenario may be invalidated. Also, you have to note that it is likely to trade in a higher range as long as it remains above the level of 1.2544. Hence, the major support was already set at the level of 1.2544.
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Technical analysis of EUR/USD for December 05, 2016

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Overview:

  • The EUR/USD pair continues to move downwards from the level of 1.0672. last week, the pair dropped from the level of 1.0672 to the bottom around 1.0517. But the pair has rebounded from the bottom of 1.0672 to climb at 1.0640. Today, the first resistance level is seen at 1.0672, the price is moving in a bullish channel now. Furthermore, the price has been set above the strong support at the level of 1.0517, which coincides with the double bottom on the H4 chart. This support spot has been rejected several times confirming the veracity of an uptrend. Additionally, the RSI starts signaling an upward trend. As a result, if the EUR/USD pair is able to break out the first support at 1.0672, the market will rise further to 1.0720 in order to test the daily support 2. Also, it should be noted that the major resistance is seen at the 1.0768 level. Consequently, the market is likely to show signs of a bearish trend. So, it will be good to sell below the level of 1.0768 with the first target and further to 1.0672. Hence, we expect a range between the levels of 1.0565 and 1.0678 in coming days. However, stop loss is to be placed above the level of 1.0693.
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USD/CAD intraday technical levels and trading recommendations for December 5, 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 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.

However, significant bearish engulfing weekly candlestick was expressed by the end of the last week indicating strong resistance around 1.3550.

Bearish persistence below the price level of 1.3300 (61.8% Fibonacci Level) is needed to enhance further bearish decline towards 1.3200 and 1.3090.

Otherwise, bullish breakout above 1.3360 will probably liberate a quick bullish movement towards 1.3650 (Low probability).

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NZD/USD Intraday technical levels and trading recommendations for December 5, 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 (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 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 quick bearish 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 November 30 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 5, 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 is why, a bearish projection target would be located around 1.2020.

Recently, bullish recovery was manifested around 1.2080. That is why, 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.

T/P levels should be located at 1.2300 and 1.2100 while S/L should be set as daily closure above 1.2800.

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Intraday technical levels and trading recommendations for EUR/USD for December 5, 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 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.

The current bearish persistence below 1.0825 allowed further bearish 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 is being manifested on the depicted daily chart.

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 bearish decline. Initial bearish target would be located around 1.0220.

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Technical analysis of USDX for December 5, 2016

The Dollar index opened very strongly today as its main component, the EUR/USD pair, was under selling pressures after the Italian referendum. However Dollar strength has weakened substantially gradually and most of the gains are lost at the European open.

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Blue line - support

The Dollar index has bounced off the important 100.65-100.70 support level which it held on Friday. Oscillators are overbought and turning lower. The long-tailed candle being formed on the daily chart is a bearish sign. Trend change confirmation will come once price breaks below 100.65. Resistance remains at 101.50.

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Green line - long-term support trend line

Last week's weekly candle is a bearish reversal candle. However, traders need to be patient as this week's candle is promising a lot of volatility this week. A weekly close below 100.60 will be a bearish sign that should push the index towards the long-term important support green trend line. As long as the Dollar index is above the weekly cloud and the green trend line bulls remain in control.

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Technical analysis of gold for December 5, 2016

Gold price remains inside the bearish channel and in a short-term bearish trend. Bulls tried to break above short-term resistance on Friday and today in early trading but price got rejected. There is no confirmation of a trend change yet. Gold remains in a bottoming process.

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Black lines - bearish channel

Gold price is trading below the Ichimoku cloud and inside the bearish channel in the 4 hour chart. Trend is bearish as price is making lower lows and lower highs. Short-term resistance is at $1,190-$1,200 while support is at $1,160-55.

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On a weekly basis price remains at the lower boundary of the weekly cloud and at the 61.8% Fibonacci retracement. There is still no reversal sign but this area justifies a longer-term upward reversal for Gold prices. A bounce off this area could be the start of a new up trend. I am long-term bullish Gold.

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Elliott wave analysis of EUR/NZD for December 5, 2016

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Wave summary:

As we feared, one more decline closer to 1.4728 could be in store for us. We have seen a decline to 1.4737 as the lowest point. With this new low the ending diagonal finally should be complete and we should be looking for a break above minor resistance at 1.5068 to confirm this is the case and that a rally back to the origin of the ending diagonal at 1.5839 is developing.

Short term, a break above minor resistance at 1.4955 will be the first good indication that the low is in place.

Trading recommendation:

We are long EUR from 1.4750 and will place our stop at 1.4700. If you are not long EUR yet, then buy a break above 1.4955 or wait for a break above 1.5068 before engaging.

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Elliott wave analysis of EUR/JPY for December 5, 2016

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Wave summary:

We have seen the expected move lower in wave (iv). The decline close to the ideal downside target at 118.52. The speed of the decline from 121.89 indicates that wave (iv) is not complete yet and most likely will turn into a triangle consolidation before completing and setting the stage for the final rally higher towards 123.48 and maybe even closer to 125.80 if wave (v) extends.

Short term, we will be looking for a rally to 120.82 in wave b of the triangle and then a decline to 119.28 in wave c.

Trading recommendation:

We will take profit on our short position from 121.85 here at 119.95. We will be looking for a EUR-buying opportunity at 119.30.

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Technical analysis of USD/JPY for December 05, 2016

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USD/JPY is Under pressure. The pair is accelerating on the downside, capped by its descending 20-period and 50-period moving averages. Meanwhile, the relative strength index is below 50, and lacks upward momentum.

On Friday, U.S. indices closed mixed despite the stronger-than-expected jobs report. The DJIA dropped 22 points (-0.1%) to 19,170, while the S&P 500 was flat at 2,192 and the Nasdaq Composite rose 5 points (+0.1%) to 5,255.

Shares in the Automobiles & Components, Media and Banks sectors lost momentum while shares in the Semiconductors & Semiconductor Equipment, Real Estate and Utilities sectors ended higher.

On the economic data front, change in nonfarm payrolls grew 178k in November (estimated 180k) from 142k in the previous month (revised from 161k). On the other hand, change in manufacturing payrolls decreased 4k in November (forecasted -2k) compared with a decrease of 5k (revised from -9k). In other news, the unemployment rate came out to 4.6% in November (estimated 4.9%) from 4.9% in the prior month.

Thus, as long as 114.20 (a key horizontal level) holds as the resistance, the risk of a break below 112.55 remains high.

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 112.55. A break below this target will move the pair further downwards to 112.10. The pivot point stands at 114.20. 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: 112.55, 112.10, 111.60

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Technical analysis of USD/CHF for December 05, 2016

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USD/CHF is expected to further advance. The pair bounced off its support base around 1.0075 this morning, helped by a bullish gap. The relative strength index is displaying strong bullish momentum, and calls for further advance. In addition, a bullish cross has been identified between the 20-period and 50-period moving averages. On the economic data front, change in nonfarm payrolls grew 178k in November (estimated 180k) from 142k in the previous month (revised from 161k). On the other hand, change in manufacturing payrolls decreased 4k in November (forecasted -2k) compared with a decrease of 5k (revised from -9k). In other news, the unemployment rate came out to 4.6% in November (estimated 4.9%) from 4.9% in the prior month.

Hence, as long as 1.0100 is not broken, likely advance to 1.0200 and 1.0250 in extension.

Resistance levels: 1.0200, 1.0250, 1.0280

Support levels: 1.0075, 1.0050, 1.0005

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Technical analysis of NZD/USD for December 05, 2016

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NZD/USD is expected to trade with bearish bias. The pair is bearish below its declining 20-period and 50-period moving averages, which play resistance roles and maintain the downside bias. The relative strength index is bearish below its 30% level. Additionally, the pair broke below the lower boundary of the Bollinger Band, which could signal a continuation of bearish trend. As long as 0.7130 holds on the upside, look for a further drop toward 0.7065 and even 0.7045 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 0.7065. A break below this target will move the pair further downwards to 0.7045. The pivot point stands at 0.7130. 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 0.7150 and the second one at 0.7170.

Resistance levels: 0.7150, 0.7170, 0.7200

Support levels: 0.7065, 0.7045, 0.7000

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Technical analysis of GBP/JPY for December 05, 2016

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GBP/JPY is expected to trade with bullish bias above 142.60. The pair pulled back this morning to test its nearest support at 142.60, representing the current 50-period moving average. The relative strength index is below its neutrality level at 50, and calls for caution. Nevertheless, as long as 142.60 is not clearly broken, any consolidations should be limited before a new bounce toward 145.20 first. A break above 145.20 would call for further advance toward 146.10.

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 145.20 and the second one at 146.10. 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: 1145.20, 146.10, 146.95

Support levels: 141.50, 140.00, 139.25

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Daily analysis of major pairs for December 5, 2016

EUR/USD: This pair consolidate throughout last week, and a closer look reveals some consolidation to the upside. This means there could be some rally this week, which would also be checked by the strength in USD itself. There are resistance lines at 1.0750 and 1.0800. There are also support lines at 1.0550 and 1.0500.

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USD/CHF: The USD/CHF has been caught in an equilibrium phase that has lasted for one week. A closer look at the market shows bears are trying hard to push price downwards – an action that could be aided by expected stamina in CHF this week. There are resistance levels at 1.0150 and 1.0200. There are also support levels at 1.0050 and 1.0000.

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GBP/USD: The GBP/USD ended a two-week consolidation by breaking upwards significantly, just as it was already anticipated. Price went upwards 330 pips, closing above the accumulation territory at 1.2700. GBP would rally versus some majors this week, and as it is rallying versus USD (which is also strong in its own right), further bullish movement is expected.

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USD/JPY: This currency trading instrument went upwards by 300 pips last week. Price reached the supply level at 114.50, but it could not close above it, since price retraced backwards a little on Friday. The outlook on this market is bullish this week, and a resumption of bullish journey could cause the supply level at 114.50 to be eventually overcome as price goes towards the supply levels at 115.00, 115.50 and 116.00.

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EUR/JPY: This cross went upwards significantly last week. There is a Bullish Confirmation Pattern in the market, and further bullish movement could happen this week, as EUR itself is supposed to rally versus some major currencies. Price might reach the supply zones of 122.00, 122.50 and 123.00; plus the demand zones at 120.00 and 119.50 should hinder some possible bearish machinations this week.

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Technical analysis of USD/JPY for Dec 05, 2016

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In Asia, Japan will release the Consumer Confidence and the US will release some Economic Data, such as Labor Market Conditions Index m/m, ISM Non-Manufacturing PMI, and Final Services PMI. So, there is a probability the USD/JPY will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Resistance. 3: 114.25.

Resistance. 2: 114.02.

Resistance. 1: 113.80.

Support. 1: 113.54.

Support. 2: 113.31.

Support. 3: 113.09.

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 05, 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, Sentix Investor Confidence, German Final Services PMI, French Final Services PMI, Italian Services PMI, and Spanish Services PMI. The US will release the economic data, too, such as Labor Market Conditions Index m/m, ISM Non-Manufacturing PMI, and Final Services PMI. So, amid the reports, EUR/USD will move in a low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Breakout BUY Level: 1.0617.

Strong Resistance:1.0610.

Original Resistance: 1.0600.

Inner Sell Area: 1.0590.

Target Inner Area: 1.0565.

Inner Buy Area: 1.0540.

Original Support: 1.0530.

Strong Support: 1.0520.

Breakout SELL Level: 1.0513.

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

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

Daily analysis of USDX for December 05, 2016

USDX found strong resistance around 101.74 once again and it's headed to test the support zone of 100.53. A range is still playing a key role in current US Dollar's trend development and with that being said, we cannot discard a huge move to take place and the preferred scenario is the bearish one, as corrective moves could start to erase some overbought levels in the index. Next support is located at 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.

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Daily analysis of GBP/USD for December 05, 2016

The bulls are still in charge of GBP/USD situation, as the pair managed to consolidate gains above the 1.2700 level before the latest weekend. Currently, it faces a strong resistance around 1.2732, where a breakout higher should expose the next barrier at the 1.2840 level. A correction can happen during the week, but as long as GBP/USD remains above the 200 SMA, we can expect further gains.

GBPUSDH1.png

H1 chart's resistance levels: 1.2732 / 1.2840

H1 chart's support levels: 1.2625 / 1.2568

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 1.2732, take profit is at 1.2840 and stop loss is at 1.2625.

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