XAU/USD bullish above major support

Price is approaching major support at $1,150.11 (Fibonacci retracement, horizontal pullback support, Fibonacci projection) and we expect a bounce above this level to at least $1,162.84.Stochastic (21,5,3) is right on the key support level at 8.3%.

Buy above 1150.11. Stop loss at 1144.05. Take profit at 1162.84.

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AUD/JPY rise in progress, remain bullish

Price is rising nicely from our buying area. We remain bullish above 84.17 support (Fibonacci retracement, horizontal pullback support) for a push up to 84.85 resistance (Fibonacci retracement, swing high resistance).

Stochastic (21,5,3) is bouncing above our 9% support.

Buy above 84.17. Stop loss at 83.72. Take profit at 84.85.

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EUR/USD Technical Analysis for January 03, 2017.

Technical outlook and chart setups:

The EUR/USD pair looks to have finally pushed through the larger trend that is down and ruled out the former probability of an expanded flat discussed yesterday. The pair has pushed lower through 1.0400/1.0380 levels today and is seen to be trading at 1.0390 level for now, testing an intermediary support trend line as depicted here. Please note that 1.0650 level should act as formidable resistance now and selling on rallies should be the preferred strategy going ahead. It is now recommended to sell through 1.0550/55 levels, which is fibonacci 0.618 resistance of the entire drop between 1.0650 and 1.0380 levels respectively, with risk above 1.0650 level. Immediate support is seen at 1.0380 level, while resistance is seen at 1.0670 level respectively.

Trading recommendations:

Sell around 1.0550 levels, stop at 1.0670, target 1.0000

Good luck!

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Technical Analysis of Silver for January 03, 2017.

Technical outlook and chart setups:

Silver looks to have finally bottomed out at $15.60 level, before turning higher. The metal is seen to be trading at $15.90 level at this moment after having pushed higher through $16.10 level during early trade today, and should be looking to resume higher from here. Ideally, the metal should remain above $15.60 level going forward and should immediately target $17.20 level, if not higher. At this moment, the metal is into its wave iii of wave (3) intermediary as depicted here. Please note that similar to Gold, the metal is carving out a counter trend rally which is likely to terminate above $21.13 level in the next few months. A break of $17.20/30 resistance would confirm that bulls are in control and each dip after that should be considered as an opportunity to go long. It is recommended to remain long now with risk around $15.00 levels. Immediate support is seen at $15.60/70 levels, while resistance is seen at $17.20/30 levels respectively.

Trading recommendations:

Remain long now, stop around $15.00 levels, target $17.30.

Good luck!

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Global macro overview for 03/01/2017

Global macro overview for 03/01/2017:

All latest economic indicators from the United Kingdom are beating market expectations. There is now difference between the latest economic indicator, Manufacturing PMI, which is a monthly gauge of manufacturing activity, and a future outlook. It is comparable to the US ISM survey, similarly based on the opinions of executives in manufacturing companies. The index released this morning came in at 56.1, better than expected figure of 53.3, and better than 53.1 from a month ago. In conclusion, despite all pessimistic forecasts regarding the UK political and economic situation after Brexit, the data released after the referendum are still better than analysts expectations.

Let's now take a look at the GPB/USD technical picture in the 4H time frame. The market is trading around the mid-term trend line (dashed black) and it looks like after the level of 1.2387 rejection, the bears are in charge of the market. The next support is seen at the level of 1.2200, which would also mean that the price has broken out of the channel line and it might be heading even lower towards the level of 1.2080.

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Gold Technical Analysis for January 03, 2017.

Technical outlook and chart setups:

Gold seems to have made a meaningful low at $1122.00 level now and is just about to continue higher through $1,165.00/70.00 levels from here. The metal is seen to be trading at $1,146.00 for now and is expected to find support ahead of $1,142.00 level before resuming higher again. Please note that $1,147.00/48.00 is also fibonacci 0.382 support of the rally between $1,125.00 and $1,163.00 levels respectively and prices still remain within its reach. Furthermore, please note that a push through $1,165.00 level would complete an impulse (5 waves) rally from $1,122.00, which confirms that the metal has formed a strong reliable bottom there. At present, the metal is seen to be carving out a wave 4 termination as depicted here. Immediate recommendations are to remain long with risk below $1,140.00 levels. Immediate support is seen at $1,144.00 levels while resistance is at $1,165.00 levels respectively.

Trading recommendations:

Remain long, stop below $1,140.00, target is $1,165.00/70.00.

Good luck!

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Global macro overview for 03/01/2017

Global macro overview for 03/01/2017:

The unemployment change data from Germany were released this morning and it were in line with market expectations. The unemployment rate remained at 6.0% in December just like a month ago, but unemployment claims (a report that tracks a change in the number of unemployed people during the previous month) decreased 17k, while market participants expected a 5k decrease after 6k decrease a month ago. The Eurozone economic powerhouse doesn't really slow down as all latest economic indicators were in line or beat market expectations. In conclusion, the jobs market and the German economy is still performing well in the very first days of the new year.

Let's now take a look at the EUR/USD technical picture in 4H time frame. The market has broken below the technical support at the level of 1.0505 and now is testing the last year's low at the level of 1.0351. The longer-term trend is still bearish and so far there are no signs of any trend reversal.

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EUR/NZD analysis for January 03, 2017

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Recently, EUR/NZD has been moving downwards. As I expected, the price tested the level of 1.4994 in an high volume. My first take profit from yesterday's analysis has been met at 1.5060. According to the 30M time frame, the price is trading below yesterday's low at 1.5050. My advice is to watch for selling opportunities on the pullbacks. I placed Fibonacci expansion to find potential downward targets. Downward target is set at the price of 1.4960 (Fibonacci expansion 161.8%).

Fibonacci Pivot Points:

Resistance levels

R1: 1.5245

R2: 1.5295

R3: 1.5380

Support levels:

S1: 1.5075

S2: 1.5020

S3: 1.4940

Trading recommendations for today: Watch for selling opportunities.

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Technical analysis of USD/CAD for January 3, 2017

General overview for 03/01/2017:

The wave a (green) of the corrective cycle looks to be completed with a low at the level of 1.3387. The 38%Fibo at the level of 1.3400 has just been tested and might act as an important intraday support. In a case of a further corrective extension to the downside, the next supports are seen at the levels of 1.3340 and 1.3278.The longer-term outlook remains bullish unless the technical support at the level of 1.03080 is clearly violated.

Support/Resistance:

1.3666 - WR2

1.3598 - Wave 1 Top

1.3539 - WR1

1.3470 - Weekly Pivot

1.3459 - Intraday Resistance

1.3400 - 38%Fibo

1.3387 - Intraday Support

1.3340 - 50%Fibo

1.3278 - 61%Fibo

Trading recommendations:

Daytraders should still consider buying the dips in this market as the upward wave progression is uncompleted.

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Technical analysis of EUR/JPY for January 3, 2017

General overview for 03/01/2017:

The corrective cycle continues to develop in very choppy trading conditions. The intraday support has moved lower to the level of 122.66 and it might act as the bottom for the wave c (purple). The most important level is the weekly pivot at the level of 122.93 and intraday support at the level of 122.83. The bias remains bullish as there are unfinished waves to the upside.

Support/Resistance:

124.28 - WR1

123.85 - Intraday Resistance

122.92 - Weekly Pivot

122.66 - Intraday Support

122.04 - WS1

Trading recommendations:

Day traders should still consider buying the dips in this market as the upward wave progression is uncompleted.

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Gold analysis for January 03, 2017

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Recently, gold has been trading downwards. As I expected, the price tested the level of $1,146.68 in an high volume volume. According to the 30M time frame and using the market profile, I found yesterday's point of control at the price of $1,159.45. Besides, there is a buying climax in the background and the price didn't sustain the higher level, which is a major sign of weakness. According to the 1H time frame, I found a confirmed head-and-shoulders formation. My advice is to watch for potential selling opportunities on the pullbacks. Targets are set at the price of $1,145.00 and $1,137.15.

Resistance levels:

R1: 1,152.70

R2: 1,153.45

R3: 1,154.70

Support levels:

S1: 1,150.20

S2: 1,149.40

S3: 1,148.30

Trading recommendations for today: Watch for potential selling opportunities due to confirmed weakness in the background.

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Daily analysis of major pairs for January 3, 2017

EUR/USD: The EUR/USD tried to trend downwards on Monday, in a bid to correct what happened last week, to go along the recent bearish bias in the market. It is possible that price would move downwards by around 100 pips this week – an event that could emphasize the recent bearish bias on the market. The bearish bias would essentially remain valid as long as price stays below the resistance line at 1.0600.

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USD/CHF: The USD/CHF pair tried to trend upwards on Monday, in a bid to recover the loss of the last week. Price is likely to move upwards by around 200 pips this week – an event that could emphasize the recent bullish bias on the market. The bullish bias would essentially remain valid as long as price stays above the support level at 1.0000.

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GBP/USD: The GBP/USD pair moved sideways last week, before making a bullish attempt at the end of the week. The outlook is still bearish (unless the distribution territory at 1.2500 is overcome), and the distribution territories at 1.2200 and 1.2150 could be tested this week because a strong bearish movement is expected in the market. There was some southward movement on January 2, 2017.

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USD/JPY: There is a bullish signal on the USD/JPY pair, owing to a clean Bullish Confirmation Pattern that is present on the 4-hour chart. Price is currently above the demand level at 117.00, and it may reach the supply level at 118.00 today or tomorrow. There is a need for price to go down by at least, 300 pips, before there could be any threats to the current bullish outlook.

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EUR/JPY: This currency trading instrument could still go further upwards this week. Since EUR made some bullish attempts last week, price went upwards, closing above the demand zone at 122.50, and generating a new bullish signal, owing to a Bullish Confirmation Pattern in the market.

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Technical analysis of USDCAD for January 3, 2017

USD/CAD requires caution from traders as it is highly probable that the highs at 1.3597 are also important medium-term highs and that another run towards 1.31 has started. Price is trading inside a long-term sideways upward sloping channel respecting the boundaries all this time.

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Red lines - bearish channel

The USD/CAD pair is trading inside the bearish channel and has broken through cloud support. Trend is bearish in the short-term. Support is at 1.3350 and resistance at 1.3455. A break out of the channel will push price towards 1.35-1.3550.

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Red lines - upward sloping trading range

There are many signs that USD/CAD has made a high of similar importance as it did last time near 1.36. The last time we saw a reversal at 1.36, prices pushed as low as the lower trading range boundary near 1.30. The lower boundary is now close to 1.31. I prefer to sell bounces and open short positions with 1.36 as stop. Once this trading range is broken, expect a strong sell-off in USD/CAD.

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Technical analysis of USD/JPY for January 3, 2017

The USD/JPY is trading right below the 118 level where the last time we saw a rejection and a pullback towards 116. The pullback is not over and price is more likely to reverse and move towards 114-112 than 120. The important level to watch out for is at 117.20-117.

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Red line - resistance

Green line - support

Short-term support and a reversal level is at 117.20-117. A break below that level will confirm that an important high is placed at 118.50 and a pullback towards 114 at least should be expected. I remain bearish about USD/JPY looking for a push below 116.

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Overbought with divergence signs by the oscillators, USDJPY bulls should be very cautious. A pullback towards the daily cloud support and the 38% Fibonacci retracement is justified and highly probable.The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of NZD/USD for January 03, 2017

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Overview:

  • The NZD/USD pair will continue rising from the level of 0.6933 in the long term. It should be noted that the support is established at the level of 0.6905 which represents the daily pivot point on the H1 chart. The price is likely to form a double bottom in the same time frame. Accordingly, the NZD/USD pair is showing signs of strength following a breakout of the highest level of 0.6933. So, buy above the level of 0.6933 with the first target at 0.6977 in order to test the daily resistance 1. The level of 0.6977 is a good place to take profits. Moreover, the RSI is still signaling that the trend is upward as it remains strong above the moving average (100). This suggests that the pair will probably go up in coming hours. If the trend is able to break the level of 0.6977, then the market will call for a strong bullish market towards the objective of 0.7009 today. On the other hand, in case a reversal takes place and the NZD/USD pair breaks through the support level of 0.6905, a further decline to 0.6861 can occur. It would indicate a bearish market.
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Technical analysis of USDX for January 3, 2017

The Dollar index is trading near its highs but I believe at least a short- to medium-term pullback towards the 100 level is justified before the resumption of the up trend. A common pullback towards the 38% retracement is expected now in the Dollar index.

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Blue line - resistance

Green line - short-term support

The Dollar index remains in a bullish short-term trend making higher highs and higher lows. Support is at 102 and if broken we should see a deeper pullback towards 100. Resistance is at 103.50.

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Green line - long-term trend line support

Overbought with divergence signs in the oscillators, price should slowly and steadily turn lower over the coming sessions towards the 38% Fibonacci retracement. Longer-term trend remains bullish but a pullback from the 102.80-103.20 area if fully justified. Bulls need to be very cautious. Long-term trend will be in danger only if price breaks below the green trend line support.

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Technical analysis of gold for January 3, 2017

Gold price is showing signs of a pullback after the breakout above the bearish short-term channel. At the same time it has broken out of the downward sloping weekly wedge pattern and right above the 78.6% Fibonacci retracement. We cannot rule out a new low yet.

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Red lines - bearish channel

Short-term support is at $1,140 where the short-term Ichimoku cloud support is found. Price has finally broken out and above the short-term cloud resistance. This is the first bullish sign after a long time. A new low cannot be ruled out yet. Price would need to break above $1,200 to confirm an important low is in.

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Red lines - downward sloping wedge

With weekly oscillators oversold, diverging and turning upwards, price is finally out of the downward sloping wedge. This justifies a big bounce in Gold price towards at least the lower boundary of the weekly cloud at $1,220. A break above it will confirm that an important low is in.

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Technical analysis of USD/CHF for January 03, 2017

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Overview:

  • The USD/CHF pair rose from the level of 1.0190 towards 1.0241 yesterday. Now, the current price is set at 1.0241. On the H1 chart, the resistance is seen at the levels of 1.0265 and 1.0290. Besides, the weekly support 1 is seen at the level of 1.0190. Today, the USD/CHF pair is continuing to move in a bullish trend from the new support level of 1.0221 to form a bullish channel. Amid the previous events, we expect the pair to move between 1.0221 and 1.0290. Therefore, buy above the level of 1.0221 with the first target at 1.0265 in order to test the daily resistance 1 and further to 1.0290. Moreover, since the trend is above the 50% Fibonacci level (1.0190), the market is still in an uptrend. Therefore, the USD/CHF pair is continuing with a bullish trend from the new support of 1.0221. On the other hand, the stop loss should always be taken into account for that it will be reasonable to set your stop loss at the level of 1.0175 (below the support 1).
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Elliott wave analysis of EUR/NZD for January 3, 2017

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Wave Summary:

EUR/NZD has failed to rally above 1.5235, which has extended the consolidation in the 1.4971 - 1.5235 area, but once this consolidation is complete a break above minor resistance at 1.5235 should be seen for a continuation higher towards the 161.8% extension target at 1.5911.

Short-term support is seen at 1.4971 and just below at 1.4945.

Trading recommendation:

We are long EUR from 1.5195 with stop placed at 1.4960. If you are not long EUR yet, then buy a break above 1.5123 and use the same stop at 1.4945. If our stop is triggered, this will be our new market order.

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Elliott wave analysis of EUR/JPY for January 3, 2017

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Wave summary:

We continue to look for a deeper correction in wave (iv). This correction will ideally make it lower to the 38.2% corrective target at 119.23 from where the final impulsive rally in wave (v) of 3 should be seen for a rally towards 126.54.

Short-term minor resistance is seen at 123.55 and just above at 123.85.

Trading recommendation:

We are looking for a EUR-buying opportunity at 119.45 or upon a break above 123.85.

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Technical analysis of USD/JPY for January 03, 2017

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USD/JPY is expected to trade with a bullish bias as the movement is supported by a rising trend line. The pair remains on the upside, backed by its intraday ascending trend line. The process of higher highs and lows remains intact, which should confirm a positive outlook. Besides, the rising 50-period moving average still plays a support role. Hence, as long as 117.15 is not broken, look for a new bounce to 117.60 and 117.80 in extension.

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 117.60 and the second one, at 117.80. In the alternative scenario, short positions are recommended with the first target at 116.90 if the price moves below its pivot points. A break of this target is likely to push the pair further downwards, and one may expect the second target at 116.70. The pivot point is at 117.15.

Resistance levels: 117.60, 117.80, 118.05

Support levels: 116.90, 116.70, 116.15

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Technical analysis of USD/CHF for January 03, 2017

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USD/CHF is expected to extend its upside movement. The pair broke above its 20-period moving average as well as the upper boundary of the Bollinger band, which could signal a continuation of bullish trend. The rising 50-period moving average suggests that the pair still has potential for a further upside.

As long as 1.0205 holds on the downside, look for a further upside toward 1.0245 and even 1.0275 in extension.

Resistance levels: 1.0245, 1.0275, 1.0295

Support levels: 1.0170, 1.0145, 1.0115

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Technical analysis of NZD/USD for January 03, 2017

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NZD/USD is expected to trade with a bullish bias above 0.6940. The pair has bounced up from another test of support at 0.6940, which is playing a key support role and should limit the downside potential. The relative strength index is rebounding around its neutrality level at 50. As long as 0.6940 is support, we keep our positive view unchanged with up targets at 0.6975 and even 0.6990 in extension.

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 0.6975 and the second one at 0.6990. In the alternative scenario, short positions are recommended with the first target at 0.6925 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 0.6915. The pivot point lies at 0.6940.

Resistance levels: 0.6975, 0.6990, 0.7025

Support levels: 0.6925, 0.6915, 0.6895

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Technical analysis of GBP/JPY for January 03, 2017

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GBP/JPY is expected to trade with a bearish bias. The pair is trading below its declining 20-period and 50-period moving averages, which play resistance roles and maintain the downside bias. The relative strength index is below its neutrality level at 50 and lacks upward momentum. As long as 144.50 holds on the upside, look for a further drop toward 143.90 and even 143.55 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 143.90. A break below this target will move the pair further downwards to 143.55. The pivot point stands at 144.50. If the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, long positions are recommended with the first target at 145 and the second one at 145.30.

Resistance levels: 145.00, 145.30, 145.60

Support levels: 143.9, 143.55, 143.15

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Technical analysis of EUR/USD for Jan 03, 2017

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When the European market opens, some economic data will be released such as German Unemployment Change, French Prelim CPI m/m, and German Prelim CPI m/m. A series of economic data is due in the US such as ISM Manufacturing Prices, Construction Spending m/m, ISM Manufacturing PMI, and Final Manufacturing PMI. So amid the reports, EUR/USD will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Breakout BUY Level: 1.0517.

Strong Resistance:1.0510.

Original Resistance: 1.0500.

Inner Sell Area: 1.0490.

Target Inner Area: 1.0465.

Inner Buy Area: 1.0440.

Original Support: 1.0430.

Strong Support: 1.0420.

Breakout SELL Level: 1.0413.

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 Jan 03, 2017

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In Asia, Japan today will not release any economic data. However, the US will publish some macroeconomic reports such as ISM Manufacturing Prices, Construction Spending m/m, ISM Manufacturing PMI, and Final Manufacturing PMI. So there is a probability the USD/JPY pair will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Resistance 3: 117.98.

Resistance 2: 117.75.

Resistance 1: 117.52.

Support 1: 117.23.

Support 2: 117.00.

Support 3: 116.77

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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USD/CAD intraday technical levels and trading recommendations for January 3, 2017

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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 and 1.3080 (the lower limit of the depicted channel) where bullish rejection was expressed as anticipated.

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) where bearish rejection should be expected.

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NZD/USD Intraday technical levels and trading recommendations for January 3, 2017

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On November 8, significant signs of a bearish reversal were expressed around the upper limit of the depicted consolidation range (0.7350).

The bearish breakdown of 0.7250 (the 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 enabled the NZD/USD pair to pursue toward lower target levels around 0.6990 (the upper limit of the depicted BUY zone).

The price level of 0.6990 failed to apply enough bullish pressure. Instead, bearish continuation was achieved toward the lower limit of the depicted BUY zone (0.6860) which provided significant bullish rejection on December 23.

The NZD/USD pair remains trapped within the depicted price range (0.6860-0.6990) until breakout occurs in either directions. That's why, the current price level (0.6960) should be watched for a possible bullish breakout.

Bullish breakout above 0.6960 will allow the pair to pursue toward the price level of 0.7100 as initial target.

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Intraday technical levels and trading recommendations for GBP/USD for January 3, 2017

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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 toward 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 toward 1.2700-1.2750.

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

This SELL entry should be monitored cautiously as the ascending bottoms around the price levels of 1.2120 and 1.2320 may apply significant bullish pressure against the supply zone of 1.2700-1.2750 thus threatening the suggested trade.

On the other hand, price action should be watched around the current price levels (1.2300-1.2260) where a previous top was recently established on October 19. Hence, bullish rejection is anticipated around the current price levels.

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Intraday technical levels and trading recommendations for EUR/USD for January 3, 2017

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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 1.0575 is needed to pursue 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.

Closure below 1.1250 (supply level 1) maintained enough bearish pressure and enhanced the downside momentum toward 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.

Bearish persistence below the depicted demand level around 1.0570 allows a further decline.

The first bearish target would be located around 1.0220.On the other hand, the price level of 1.0570 constitutes a recent supply level to be watched for a SELL entry during the current bullish pullback above 1.0500.

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Daily analysis of USDX for January 03, 2017

USDX stayed above the demand zone of 101.97 as it is awaiting further momentum in order to establish a clear path in the short term. It seems that the bears are favored in the current scenario because the index is consolidated below the 200 SMA on H1 chart and a breakout below that zone should help to extend the decline towards the 101.40 level.

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H1 chart's resistance levels: 102.53 / 103.15

H1 chart's support levels: 101.97 / 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 102.53, take profit is at 103.15 and stop loss is at 101.92.

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Daily analysis of GBP/USD for January 03, 2017

During the first trading day of 2017, GBP/USD managed to consolidate below the 200 SMA on H1 chart, as the resistance zone of 1.2384 continues to cap gains in the pair. Moreover, that moving average is providing a very solid dynamic resistance. If we see a breakout below the 1.2271 level, then we can expect a decline to take place towards the 1.2222 level.

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H1 chart's resistance levels: 1.2327 / 1.2384

H1 chart's support levels: 1.2271 / 1.2222

Trading recommendations for today: Based on the H1 chart, sell (short) orders only if the GBP/USD pair breaks a bearish candlestick; the support level is at 1.2271, take profit is at 1.2222 and stop loss is at 1.2319.

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