Daily analysis of Silver December 20, 2016

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Overview

The silver price resumes downward movements trading below 16.00, which supports the bearish scenario for the rest of the day. The price is likely to test 15.49 levels initially; a break of this level will extend the silver price losses to 13.75 as the next main station. In general, holding below 16.56 levels keeps the bearish scenario valid as a breach of it will open the way to recovery and stop the current negative pressure with positive targets at 17.43 and 18.30. The expected trading range for today is between the 15.49 support and the 16.30 resistance.

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EUR/NZD analysis for December 20, 2016

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Recently, EUR/NZD has been moving upwards. The price tested the level of 1.5057 in a high volume. Using the market profile, I found today's point of control at 1.5011 on the 30M time frame. The price is trading above the 21SMA, which is a sign of strength. My advice is to watch for buying opportunities on dips. I placed Fibonacci expansion to find potential upward targets. I got Fibonacci expansion 100% at the price of 1.5075 and Fibonacci expansion 161.8% at the price of 1.5125.

Fibonacci Pivot Points:

Resistance levels

R1: 1.5045

R2: 1.5065

R3: 1.5100

Support levels:

S1: 1.4976

S2: 1.4950

S3: 1.4920

Trading recommendations for today: watch for buying opportunities.

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Gold analysis for December 20, 2016

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Recently, the gold has been trading downwards. The price tested the level of $1,127.90 in a high volume. Using the market profile, I found today's point of control at the price of $1,132.55 on the 30M time frame. I found support at the price of $1,127.90. Watch for buying opportunities if the price rejects from support. The upward target is set at the price of $1,138.75. Anyway, if the price rejects the support, watch for selling opportunities with the first downward target at $1,122.90.

Resistance levels:

R1: 1,140.80

R2: 1,141.45

R3: 1,142.50

Support levels:

S1: 1,138.65

S2: 1,138.00

S3: 1,136.90

Trading recommendations for today: Watch the price action near the support at $1,127.90 to confirm further movement.

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Technical Analysis of the US Dollar Index for December 20, 2016.

Technical outlook and chart setups:

The US Dollar Index is seen to be carving out its wave 3 higher within 5 waves movement from November 09, 2016 lows as depicted here and there is not much change from what was discussed yesterday. The index dropped lower into wave (2) on December 08, 2016 and is carving wave (3) at this moment. Furthermore, please note that the index has carved out wave 4 terminations yesterday at 102.50 levels and bounced back higher into its potential wave 5 rally higher. The index is trading at 103.38 levels for now and if the above wave structure holds true, it must ideally remain above 101.50/60 levels. But please be aware that if the index drops below 102.50 levels and subsequently below 101.60, it would confirm that a meaningful top is in place at 103.50. It looks good to remain long around these levels, with a risk at breakeven levels. Immediate short term support is seen at 102.50 levels, while resistance is at 103.50 levels respectively.

Trading recommendations:

Long now, stop at breakeven levels, target 104.00 plus. Aggressive traders, please, book profit on long positions taken yesterday and prepare to go short.

Good luck!

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Technical analysis of EUR/USD for December 20, 2016.

Technical outlook and chart setups:

The EUR/USD pair made a meaningful top on December 8, 2016 which can safely be defined as the wave (2) of the drop from 1.1300 levels earlier. The pair seems to be working out its wave 5, within wave (3) as depicted here, after terminating the 4th wave at 1.0480 levels yesterday. If the above mentioned wave structure remains, we will see EUR/USD dropping lower towards 1.0300 and 1.0200 levels going forward. The pair is expected to finally terminate around parity levels. On the flip side, a push above 1.0500 and subsequently 1.0680 levels would take prices to 1.0900 levels before reversing lower. It is therefore good to remain short around these levels against 1.0680 or take profit on short positions placed yesterday. Immediate resistance is seen at 1.0680 levels while support lies at 1.0350 levels.

Trading recommendations:

Remain short now with stop placed around breakeven levels and target set at 1.0300 and 1.0250. Aggressive traders should take profit on short positions and prepare to go long.

Good luck!

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Global macro overview for 20/12/2016

Global macro overview for 20/12/2016:

Interesting comments from Ian McCafferty, external MPC member, regarding UK inflation had appeared at Bank of England website. He said, the BOE has limited tolerance of CPI overshoot as it depends on the second round effects. Moreover, despite the fact that the Bank of England has faced a difficult policy trade-off since the EU vote, the UK CPI will rise quite sharply and should remain above the BoE target in 2017. In conclusion, very hawkish view from MPC member McCafferty regarding the inflation expectations in 2017 and beyond. Please notice, the lack of the rise in inflation in years despite the BoE efforts has been the main concern for the UK policy members. Just recently after the Brexit, the CPI index has started to slowly pick-up, but whether it will raise any higher to the levels projected by BoE in 2017 is still a matter of anticipation not certainty.

Let's now take a look at the GBP/USD technical picture at the 4H time frame. This pair is still trading inside of the dashed black channel and the bears are trying to test the support at the level of 1.2313 - 1.2301 area. The near-term outlook still remains bearish and the lower channel boundary around the level of 1.2255 might be tested soon.

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Daily analysis of major pairs for December 20, 2016

EUR/USD: This pair was bearish last week, and it has started going downwards this week. There is a strong Bearish Confirmation Pattern in the market, and there is a possibility that EUR would reach parity with USD within the next several months.

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USD/CHF: The USD/CHF is still in a bullish mode. Price is supposed to continue going upwards this week, reaching the resistance levels at 1.0300 and 1.0350. The bullish outlook would be valid as long as price does not go below the support levels at 1.0050 and 1.0000.

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GBP/USD: The movement on the Cable is quite similar to the movement on the EUR/USD. The outlook on the market is bearish, and this is what is supposed to continue this week (and this month). The accumulation territories at 1.2350 and 1.2300 could be targeted eventually.

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USD/JPY: This is a significant bull market. There are clean Bullish Confirmation Patterns on 4-hour and daily charts. However, this does not rule out the possibility of bearish corrections in the market. Price is supposed to continue trending upwards following the correction, which should not take the price below the demand level at 115.50.

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EUR/JPY: This currency cross is not attractive at the moment. There is no directional bias.... And from now on, the direction of the market would be determined by the situation surrounding the EUR. There is a possibility that price would go into a deep correction soon.

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Technical Analysis of Silver for December 20, 2016.

Technical outlook and chart setups:

Silver has dropped to yet another low at $15.77 levels before pulling back again. Please note that the metal is trading around $15.85 levels for now and might have completed a test of recent lows discussed yesterday. The metal should remain poised to break higher from here anytime and take out initial resistance at $16.20/30 levels now. Furthermore, the metal is trading near the past resistance turned support region indicating that a bottom is near. The wave structure also indicates that the entire rally from $13.60 through $21.00 levels has been retraced to fibonacci 0.618 supports, and a turn is just round the corner. Immediate support is seen at $14.80/15.00 levels, while resistance is at $16.25 levels respectively.

Trading recommendations:

Remain flat now and look to go long after $16.20/30 is taken out.

Good luck!

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Global macro overview for 20/12/2016

Global macro overview for 20/12/2016:

The Business Climate Index data was published in Germany yesterday.The Ifo Institute said its Business Climate Index based on approximately 7,000 monthly survey responses in the manufacturing, construction, wholesale and retail sectors advanced to 111.0 points from 110.4 points seen in November. Market participants were expecting an increase to 110.7 points from 110.4 a month ago. Another Ifo sub-Index, the Current Assessment Index, increased to 116.6 points in December, following the preceding month's 115.6 points and beating the analysts' expectations of 115.9 points.The last Ifo sub-index, the Business Expectations Index, which measures how local businesses foresee the next six months, increased to 105.6 in the same month from November's 105.5, in line with market expectations. In conclusion, the overall German business sentiment rose to the highest level since February 2014. It means Donald Trump's victory in the presidential election is not seen as a threat to the German economy as anticipated.

Let's now take a look at the EUR/USD technical picture on the 4H time frame. Slow and steady pre-Christmas holiday trading conditions have trapped the price in the horizontal range between the levels of 1.0481 and 1.0363. On the bigger time frames, the bias is still bearish with a possibility of the parity test (1.0000) before any meaningful corrective rally.

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Gold Technical Analysis for December 20, 2016.

Technical outlook and chart setups:

Gold has retraced lower from yesterday's levels and is seen to be trading at $1,133.00/34.00 levels for now. The yellow metal might push lower one last time before resuming its uptrend. The metal has already retraced up to 75% of its rally between $1,046.00 and $1,375.00 levels, where it made lows last week. One should wait for yet another bottom or a test of existing low at $1,122.00 levels before looking to initiate fresh long positions. Ideally, a push above $1,165.00 levels would confirm that the metal is ready to push through higher levels. The wave structure also reveals that the recent rally from $1,122.00 to $1,142.00 levels seems to be corrective and hence the metal could drop one last time before turning higher. Immediate support is seen at $1,122.00 levels, while resistance is seen at $1,165.00 levels.

Trading recommendations:

Remain flat for now and allow a test of recent lows to initiate long positions.

Good luck!

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Technical analysis of USD/CAD for December 20, 2016

General overview for 20/12/2016:

The yesterday intraday resistance at the level of 1.3415 was violated and now it will act as an intraday support for the price. This would mean the bottom for the wave (ii) (green) might be in place at the level of 1.3322, but the bearish divergence indicates the intraday correction is going to occur shortly. Nevertheless, the next intraday resistance is seen at 78% Fibo at the level of 1.3479.

Support/Resistance:

1.3503 - WR1

1.3479 - Intraday Resistance

1.3322 - Intraday Support

1.3292 - Weekly Pivot

1.3269 - Intraday Support

1.3167 - WS1

Trading recommendations:

The buy orders should be still kept open. TP should be set at the level of 1.3479.

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Technical analysis of EUR/JPY for December 20, 2016

General overview for 20/12/2016:

The bottom of the wave c (green) or wave -iii- has been found at the level of 121.66 and now the market is in an intraday bounce. Bulls have managed to retrace almost 61% of yesterday's downswing and it looks like the market is evolving to a more complex and time-consuming corrective pattern like the triangle. Any breakout below the intraday support at the level of 121.66 will lead to the immediate test of the wave a low at the level of 120.89.

Support/Resistance:

124.43 - WR1

124.07 - Intraday Resistance

123.01 - Weekly Pivot

121.66 - Intraday Support

121.93 - WS1

120.52 - WS2

Trading recommendations:

Daytraders should consider opening sell orders only if the intraday support at the level of 121.66 is clearly violated. TP should be set at the level of 120.89.

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Technical analysis of USD/CHF for December 20, 2016

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Overview:
  • The USD/CHF pair holds above strong support at the level of 1.0266. History will repeat itself again at the level of 1.0266. This support has been rejected several times confirming strong bullish momentum. The current price is seen at 0.6616, which represents a key level, because the level of 0.6616 will act as the first resistance today 1.0290. For this reason, major support is seen at the level of 1.0266 because the trend is still showing strength above it. Accordingly, the pair is still in the uptrend from the area of 1.0266 and 1.0345. The USD/CHF pair is trading in a bullish trend from the last support line of 1.0266 toward the first resistance level at 1.0300 in order to test it. This is confirmed by the RSI indicator signaling that we are still in the bullish market. Now, the pair is likely to begin an ascending movement to the point of 1.0300 and further to the levels of 1.0345. The level of 1.0345 will act as second resistance so as to test the double top. In overall, we still prefer the bullish scenario. However, if a breakout happens at the support levels of 1.0215, then this scenario may be invalidated.
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Technical analysis of GBPUSD for December 20, 2016

GBP/USD is in a bearish trend. This downward move in GBP/USD could continue as low as 1.22-1.2350 but I'm alert as I believe the trend will change to the upside and push the GBP/USD back towards 1.30 over the next few months.

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Green line - trend line resistance

The short-term trend is bearish for GBP/USD as long as the price is below 1.2510. Short-term support is at 1.23. If it is broken, we could see a deeper decline towards 1.22. Shorter-term resistance is at 1.2435. A break above it could push the price towards 1.26.

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Red lines - channel

GBPUSD is expected to test the lower boundary of the red channel. If it is broken, we should expect the price to move towards the green horizontal line support below 1.22. This will be the last critical support for bulls. As long as the price is above 1.20, I remain longer-term optimistic for a move to 1.30.

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Technical analysis of USD/JPY for December 20, 2016

I expect the short-term trend in USD/JPY to change to bearish. The pullback is not completed yet and I expect the pair to get rejected above 118 and retrace towards 115. I'm bearish as long as the price is below 118.65 looking for a test of 115.

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USD/JPY is testing short-term resistance at 118.20-118.30 where the red trend line is found. The RSI is diverging and overbought. If

the short-term support at 117.80 is broken, it will confirm by bearish short-term scenario.

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USD/JPY is making higher highs and higher lows. However currently I expect the pairwon't be able to make a higher high and will push lower towards the 4 hour Ichimoku cloud support between 115-116. As long as price is above the upward sloping red trend line, long and medium-term trend remain bullish.The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of NZD/USD for December 20, 2016

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Overview:

  • The NZD/USD pair continued to move downwards from the level of 0.6983 to the bottom around 0.6914. The NZD/USD pair opened below the daily pivot point (0.6920). Today, the first resistance level is seen at 0.6983 followed by 0.7030, while daily support 1 is seen at 0.6865. Furthermore, the moving average (100) starts signaling a downward trend; therefore, the market is indicating a bearish opportunity below 0.6920. So it will be good to sell at 0.6920 with the first target of 0.6865. It will also call for a downtrend in order to continue towards 0.6814. According to the previous events, we expect the NZD/USD pair to trade between 0.6920 and 0.6814 in coming hours. Generally, the price area of 0.6983 remains a significant resistance zone. Thus, the trend is still bearish as long as the level of 0.6983 is not broken. On the contrary, in case a reversal takes place and the NZD/USD pair breaks through the resistance level of 0.6983, then a stop loss should be placed at 0.6703.
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Technical analysis of USDX for December 20, 2016

The Dollar index remains in a bullish trend and is approaching our next target of 104. Despite many indicators being in the overbought area with bearish divergence signs, price continues to make higher highs and higher lows. Bulls need to raise their stops to 102.50.

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Red lines - bullish channel

Blue horizontal line - support

Price is above the Ichimoku cloud and inside the bullish channel on the 4 hour chart. Oscillators are overbought and diverging. If the support at 102.50 is broken, the short-term trend will change to bearish. Resistance is at 104.25 where my upside target is found.

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Red lines - bullish channel

Green line - long-term support

Price has broken above the long-term 61.8% Fibonacci retracement resistance and continues to trade higher. Price is above the weekly cloud and inside the bullish red channel. As long as the index is above 100, the long-term trend will remain bullish. Oscillators are giving warnings for bulls. No reversal confirmation yet.

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Technical analysis of gold for December 20, 2016

Gold price remains in a bearish trend. The price can not break above the short-term resistance at $1,150 and is turning lower most probably for a new low towards $1,110. There is still no sign of a reversal and this is not a good sign for my longer-term bullish scenario.

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Red lines - bearish channel

Gold price is making lower lows and lower highs. The price remains inside the bearish channel and below the Ichimoku cloud. Short-term support is at $1,127 and short-term resistance lies at $1,143.

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Red lines - downward sloping wedge

The price remains inside the downward sloping wedge. It is approaching the 78.6% Fibonacci retracement. Oscillators are oversold and diverging. Trend remains bearish. Only a break above $1,150-60 will confirm short-term trend change.

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Technical analysis of USD/JPY for December 20, 2016

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USD/JPY is expected to trade in higher range as the bias remains bullish. The pair recorded a succession of lower tops and lower bottoms since Dec 16, which confirms a bearish view. The declining 50-period moving average is playing a supportive role, which maintains the downside bias. Additionally, the 116.90 level acts as a key support, which should limit the downside potential. As long as this key level is not broken, look for further rally toward 118.00 and even 118.40 in extension.

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 118.00 and the second one at 118.40. In the alternative scenario, short positions are recommended with the first target at 116.50 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 116.15. The pivot point lies at 116.90.

Resistance levels: 118.00, 118.40, 118.65

Support levels: 116.50, 116.15, 115.75

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

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Wave summary:

We continue to look for a deeper decline in the wave c of (iv) closer to 119.70 to complete the wave (iv) and set the stage for the next impulsive rally higher towards 126.54 to complete the wave (v) and 3.

Short-term resistance is seen at 122.45, max. 123.01 that should cap the upside for the next move lower towards 120.87 and 119.70.

Trading recommendation:

We are short EUR from 123.50 and will place our stop lower at 123.05. Take profit is set at 120.25.

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

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Wave summary:

We continue to look for a break above minor resistance at 1.5092 as the next strong indication that the ending diagonal is finished and a return to the origin of the ending diagonal at 1.5837 is unfolding.

In the short term, we expect minor support at 1.4895 will be able to protect the downside for the test and likely break above 1.5092.

Trading recommendation:

We are long EUR from 1.4830 and we will move our stop to break-even. If you are not long EUR yet, then buy near 1.4895 or upon a break above 1.5092 and use the same stop.

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Technical analysis of USD/CHF for December 20, 2016

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USD/CHF is expected to trade with bearish bias. The pair is now challenging its resistance at 1.0300 which may limit any upward attempts. The relative strength index is mixed and calls for caution. Therefore, a continuation of the consolidations cannot be ruled out at the current stage.

On the economic data front, Markit U.S. services PMI decreased in December to 53.4 in a preliminary estimate (estimated 55.2) from 54.6 in the previous month. Markit U.S. composite PMI diminished to 53.7 in December in a preliminary estimate compared with 54.9 in the prior month.

As long as 1.0300 holds on the upside, look for a return to 1.0235 & 1.0210 in extension.

Resistance levels: 1.0320, 1.0345, 1.0375

Support levels: 1.0235, 1.0210, 1.0180

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Technical analysis of NZD/USD for December 20, 2016

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NZD/USD is expected to trade with bearish bias as the pair is capped by a negative trend line. From a technical view, the pair remains under pressure, and is now heading downward, capped by a negative trend line. The process of lower highs and lows remains intact, and the relative strength index is bearish below its neutrality area at 50. To sum up, as long as 0.6965 holds on the upside, look for a return to 0.6890 and 0.6850 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 0.6890. A break below this target will move the pair further downwards to 0.6850. The pivot point stands at 0.6965. 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 0.7000 and the second one at 0.7045.

Resistance levels: 0.7000, 0.7045, 0.7080

Support levels: 0.6890, 0.6850, 0.6800

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Technical analysis of GBP/JPY for December 20, 2016

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GBP/JPY is under pressure and expected to prevail its downside movement. The pair recorded a succession of lower tops and lower bottoms since Dec 16, which confirms a negative view. 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 capped by a bearish trend line and is below its neutrality level at 50. As long as 146.55 is resistance, look for a further drop toward 144.90 and even 144.50 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 144.90. A break below this target will move the pair further downwards to 144.50. The pivot point stands at 146.55. 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 147.30 and the second one at 147.65.

Resistance levels: 147.30, 147.65, 148.15

Support levels: 144.90, 144.50, 144.00

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Technical analysis of EUR/USD for Dec 20, 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. Today, the US will not release any economic data, so, amid the reports, EUR/USD will move in a low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Breakout BUY Level: 1.0455.

Strong Resistance:1.0448.

Original Resistance: 1.0438.

Inner Sell Area: 1.0428.

Target Inner Area: 1.0403.

Inner Buy Area: 1.0378.

Original Support: 1.0368.

Strong Support: 1.0358.

Breakout SELL Level: 1.0351.

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 Dec 20, 2016

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In Asia, Japan will release the BOJ Press Conference, Monetary Policy Statement, BOJ Policy Rate, but, today, the US will not release any Economic Data. So, there is a probability the USD/JPY will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Resistance. 3: 117.89.

Resistance. 2: 117.66.

Resistance. 1: 117.43.

Support. 1: 117.15.

Support. 2: 116.92.

Support. 3: 116.69

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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EUR/USD remain bearish below key resistance

The price continues to approach our selling area at 1.0502 which is a major resistance level (Fibonacci retracement, horizontal overlap resistance, Fibonacci projection) and we expect to see a bearish reaction off this level for a drop to at least 1.0325 support (Fibonacci projection level).

RSI (34) is seeing major resistance below our descending resistance line.

Sell below 1.0502. Set stop loss at 1.0600 and take profit at 1.0325.

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NZD/USD Intraday technical levels and trading recommendations for December 20, 2016

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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 toward 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 seen on the chart.

Bullish fixation above 0.7250 and 0.7350 was needed to allow further advance toward 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 toward the price level of 0.7100 (recent bottom of October 28) which was broken as well.

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

Once again, bearish persistence below the price level of 0.7100 was needed to pursue toward lower target levels around 0.7060 and 0.6990 (upper limit of the depicted BUY zone).

Price action should be watched around the current price levels (0.6990) either for bullish rejection or bearish continuation toward 0.6860 (lower limit of the depicted BUY zone).

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USD/CAD intraday technical levels and trading recommendations for December 20, 2016

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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 one month ago.

Note that the USD/CAD pair challenged the upper limit of the depicted channel around 1.3360-1.3400 which succeeded to apply enough bearish pressure on the pair.

Shortly after, bearish engulfing weekly candlestick was expressed by the end of the week indicating strong resistance around 1.3550.

Bearish persistence below the price level of 1.3300 (50% Fibonacci Level) was achieved.

This allowed a further decline toward 1.3200, 1.3090, and 1.2990 (61.8% Fibonacci Level) where bullish rejection was expressed as anticipated.

On the other hand, the current bullish breakout above 1.3360 (50% Fibonacci level) will probably liberate a quick bullish movement toward 1.3700-1.3750 (the upper limit of the depicted channel).

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USD/CHF profit target reached, time to turn bullish

Price has dropped perfectly from our selling area and has reached our profit target. We now prepare to turn bullish above 1.0214 support (fibonacci retracement, fibonacci projection, horizontal overlap support) for a bounce to 1.0309 resistance (fibonacci retracement, horizontal swing high).

Stochastic (21,5,3) is seeing major support above the 4.5% level.

Buy above 1.0214. Stop loss at 1.0182. Take profit at 1.0309.

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GBP/USD remain bullish above key support

The price has dropped further, and we remain bullish above the support at 1.2382 (Fibonacci projection, horizontal swing low, bullish candlestick reversal) for a bounce up to 1.2555.Stochastic (55,5,3) reflects major support above our 8% level.

Buy above 1.2382. Set stop loss at 1.2290 and take profit at 1.2555.

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AUD/NZD remain bearish below major resistance

We remain bearish looking to sell on strength below the resistance at 1.0494 (horizontal swing high resistance, Fibonacci projection) for a push down to 1.0418 (Fibonacci retracement, horizontal overlap support).

RSI (34) shows major resistance below the 56% level.

Sell below 1.0494. Set stop loss at 1.0520 and take profit at 1.0418.

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Intraday technical levels and trading recommendations for GBP/USD for December 20, 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 price levels around 1.2700 (Bearish projection target).

Since then, the GBP/USD pair has been 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 was executed towards 1.2700-1.2750.

Risky traders can consider the recent bullish pullback towards the price zone of 1.2700-1.2750 for a valid SELL entry. S/L should be set at the daily closure above 1.2750. T/P levels should be located at 1.2300 and 1.2100.

This SELL entry should be carried out cautiously as the ascending bottoms around the price levels of 1.2120 and 1.2320 will probably apply significant bullish pressure on the supply zone of 1.2700-1.2750 thus threatening the suggested trade.

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Intraday technical levels and trading recommendations for EUR/USD for December 20, 2016

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

In March 2015, 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 remains a projected target if the current monthly candlestick maintains its bearish closure 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.

Closure below 1.1250 (supply level 1) maintained enough bearish pressure and enhanced the downside momentum towards the price level of 1.1000 (key level 1).

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

Bearish persistence below 1.0825 allowed a further fall to occur at 1.0570 (demand level) where bullish rejection and a valid BUY entry were expressed on November 24.

The price level of 1.0825 (Fibonacci Expansion 100%) constituted a recent supply level which offered a valid SELL entry on December 8. Stop Loss should be lowered to 1.0600 to secure some profits.

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

The price level of 1.0570 constitutes a recent supply level to be watched for SELL entries if a bullish pullback occurs above 1.0500.

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Daily analysis of USDX for December 20, 2016

On Monday USDX was supported by the 102.56 level - a strong demand zone across the board which should help to boost buyers in coming days ahead of Christmas. The next key resistance is still placed at the 103.98 level. If the index plunges below the 102.56 mark, it can reach the support area of 101.40, which is below the 200 SMA on the H1 chart.

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H1 chart's resistance levels: 103.98 / 104.69

H1 chart's support levels: 102.56 / 101.40

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 103.98, take profit is at 104.69 and stop loss is at 103.26.

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Daily analysis of GBP/USD for December 20, 2016

GBP/USD erased Friday's gains in some way during Monday's session and currently we can find a strong support around 1.2387. We expected to see a rebound above it in order to resume the corrective bias, but bear in mind that the pair did a new low during yesterday and we can see another decline towards the 1.2327 level.

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H1 chart's resistance levels: 1.2462 / 1.2564

H1 chart's support levels: 1.2387 / 1.2327

Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the GBP/USD pair breaks a bearish candlestick; the support level is at 1.2387, take profit is at 1.2327 and stop loss is at 1.2447.

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Daily analysis of Silver for December 19, 2016

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Overview

The silver price has settled around $16.00 levels after the latest decline that pushed the price to break $16.56 levels. As long as the price is below this level, the bearish trend scenario will remain active for the upcoming period and the price will test $15.49 levels as the next main station. Therefore, we still expect the bearish trend for today, unless we witness a clear breach above $16.56. The expected trading range for today is between the $15.49 support and the $16.50 resistance.

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Daily analysis of Gold for December 19, 2016

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Overview

The gold price crawls upwards gradually moving away from the key support at $1,124.88 and heading towards our first main awaited target at $1,154.75. This keeps the bullish trend scenario valid and active until now. A breach of this level will extend the gold price gains to $1,172.68 as the next main station. In general, we still expect the bullish bias in the upcoming period unless breaking and holding below $1,124.88 levels. A break of this level will stop the positive overview and push the price to the previously recorded low at $1,047.61 on the near-term basis. The expected trading range for today is between the $1,124.88 support and the $1,154.75 resistance.

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