XAU/USD testing major resistance, remain bearish

We remain bearish below major resistance at $1,183 (Fibonacci retracement, Fibonacci projection, horizontal overlap resistance). The price can decline further to the support at $1,160 (Fibonacci retracement, horizontal overlap support).

Stochastic (34,5,3) continues to drop from our 88% resistance and has good downside potential.

Sell below $1,183. Set stop loss at $1,200 and take profit at $1,160.

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NZD/USD approaching major resistance, prepare to sell

The NZD/USD pair is approaching major resistance at 0.7044 (Fibonacci retracement, Fibonacci projection, horizontal overlap resistance) and we expect that the price will drop from this level towards 0.6951 support (Fibonacci retracement, horizontal support).

Stochastic (21,5,3) is seeing resistance at 93%.

Sell below 0.7044. Set top loss at 0.7089 and take profit at 0.6951.

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AUD/JPY faces major support, time to buy

The AUD/JPY pair has dropped and reached our profit target perfectly once again. Currently we are looking for buying opportunities above strong support at 85.07 (Fibonacci retracement, horizontal overlap support, bullish candlestick reversal) for a push up to 85.91.

Stochastic (21,5,3) is approaching support at 10%.

Buy above 85.07. Set stop loss at 84.76 and take profit at 85.91.

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AUD/USD testing major resistance, time to sell

The AUD/USD pair is testing major resistance at 0.7380 (Fibonacci retracement, Fibonacci projection, horizontal pullback resistance) and we expect the price to drop from this level to at least 0.7245 (Fibonacci retracement, horizontal pullback support).

Stochastic (34,5,3) is also showing major resistance at the 93% level.

Sell below 0.7380. Set stop loss at 0.7446 and take profit at 0.7245.

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EUR/NZD analysis for January 10, 2017

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Recently, EUR/NZD has been moving sideways at the price of 1.5120. According to the 30M time frame and using the market profile, I found yesterday's point of control at the price of 1.5120. There is potential double top formation and my advice is to be careful when buying EUR/NZD at this stage. Watch for potential selling opportunities. A potential downward target is set at the price of 1.5030.

Fibonacci Pivot Points:

Resistance levels

R1: 1.5125

R2: 1.5150

R3: 1.5195

Support levels:

S1: 1.5035

S2: 1.5008

S3: 1.4965

Trading recommendations for today: Friday's point of control on the test. Watch for selling opportunities.

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Global macro overview for 10/01/2017

Global macro overview for 10/01/2017:

Another set of data on the US jobs market is about to hit the news wires today. The US Job Openings & Labour Turnover Survey (JOLTS Job Openings) data will be released at 02:00 pm GMT and job openings are on track to improve for a second month in December, climbing to 5,590k from 5,534k a month ago. The job openings have been trending higher, reaching the 5,800k level twice in 2016, so the trend is still to the upside. Nevertheless, the evidence is mounting that the labour market has passed its peak, as today's numbers are expected to only slightly beat the expectations. In conclusion, the current jobs market in the US is starting to get overheated and much more important numbers than job creation are current prospects for the wage increase.

Let's now take a look at the US Dollar technical picture in the daily time frame. The bulls are still in control over this market, but the growing bearish divergence between the price and the momentum oscillator suggest a temporary correction occur any time now. The sequence of the higher highs and the higher lows is valid as long as the level of 99.41 is not clearly violated. The next support is seen at the level of 101.30 and 100.53.

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Gold analysis for January 10, 2017

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Recently, gold has been trading upwards. As I expected, the price tested the level of $1,187.41 in an average volume. According to the 30M time frame and using the market profile, I found yesterday's point of control at the price of $1,174.50. I found a fake breakout of yesterday's high, which is a sign of weakness. My advice is to watch for potential selling opportunities. The downward target is set at the price of $1,174.50. Anyway, if the price breaks the level of $1,187.50 in a high volume, we may see potential testing of $1,195.00

Resistance levels:

R1: 1,184.00

R2: 1,186.60

R3: 1,190.70

Support levels:

S1: 1,176.00

S2: 1,173.50

S3: 1,169.45

Trading recommendations for today: Watch for potential selling opportunities.

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Global macro overview for 10/01/2017

Global macro overview for 10/01/2017:

The Halifax House Price Index released yesterday surprised market analysts. According to the UK's biggest lender, the House Price Index grew 1.7% to £222,484 month-over-month in December, beating the 0.3% increase forecast. Moreover, the index was better than November's upwardly revised gain of 0.6% as well. This was the fourth straight monthly increase and the largest gain since March 2016. On a yearly basis measured in the three month period ended December 2016, the house prices advanced 6.5% and the average house price increased by 4000 Pounds, the fastest increase since Brexit. In conclusion, the U.K. house market is not giving up and still keeps posting decent gains ahead of the Eurozone/United Kingdom negotiations.

Let's now take a look at the EUR/GBP technical picture in the daily time frame. The bulls have managed to break out above the golden trend line and above all of the moving averages, which might indicate they are back in control over this market. Moreover, the recent technical resistance at the level of 0.8705 was violated as well and now it will act as a support. The next resistnace is seen at the level of 0.8855.

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Technical analysis of USD/CAD for January 10, 2017

General overview for 10/01/2017:

The market keeps trading inside of the congestion zone between the intraday support at the level of 1.3177 and intraday resistnace at the level of 1.3266. The growing bullish divergence between the price and momentum oscillator indicates a stronger bounce towards the 50%Fibo at the level of 1.3390. Nevertheless, the most important zone for bulls is the gray rectangular area between the levels of 1.3437 - 1.3460. Only a sustained breakout above this zone in the impulsive fashion will confirm the wave 3 is in progress and new high will be made in this market.

Support/Resistance:

1.3101 - WS1

1.3177 - Intraday Support

1.3266 - Intraday Resistance

1.3280 - Weekly Pivot

1.3383 - WR1

1.3350 - 50%Fibo

1.3437 - 61%Fibo

1.3460 - Technical Resistance

Trading recommendations:

Daytraders should consider opening buy orders only if the level of 1.3266 is clearly violated. If the low for the wave 2 or (b) is in place then the price should target the level of 1.3383.

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Technical analysis of EUR/JPY for January 10, 2017

General overview for 10/01/2017:

The intraday resistance at the level of 123.84 was clearly rejected and the price dipped below the weekly pivot level. The current labeling suggests more impulsive wave progression to come shortly, but the key to the upside levels is the wave (i) high at the level of 123.84. This line must be clearly violated so the impulsive structure could develop. Otherwise, the corrective cycle in the blue wave (4) will evolve into even more complex and time-consuming structure.

Support/Resistance:

123.97 - WR1

123.84 - Intraday Resistance

123.00 - Weekly Pivot

122.46 - WS1

122.01 - Intraday Support

121.47 - WS2

Trading recommendations:

Day traders should consider opening buy orders only if the level of 123.84 is clearly violated. The uncompleted wave progression to the upside supports this view.

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Daily analysis of major pairs for January 10, 2017

EUR/USD: This pair has been making attempts to go upwards. Price is now above the support line at 1.0550, targeting the resistance lines at 1.0600, 1.0650 and 1.0700. Since the middle of last week, the pair has gone upwards by 240 pips, and that could just be the beginning.

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USD/CHF: The pair has generated a "sell" signal in the middle of last week. However, the sell signal is valid only in the short term. The long-term sell signal can appear only when the psychological level at 1.0000 is breached to the downside. There can be bearish movements in the short-term and the current rally in the market is an indication of another short-term selling opportunity.

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GBP/USD: The cable went down on Friday, and went further downwards on Monday. In fact, GBP pairs became weak across the board, while EUR/GBP goes up. There is a Bearish Confirmation Pattern on the 4-hour chart, and further downwards movement is possible.

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USD/JPY: There is a 'sell' signal on this pair – as USD becomes weak. Price came down by 150 pips on Monday and it could come down further today, targeting the demand levels at 115.50, 115.00 and 114.50. There could be some rallies this week, but they could turn out to be opportunities to sell short.

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EUR/JPY: This cross pair has been quite choppy and turbulent. Price has been going sideways for a long time, but lately things have gone really unpredictable. It may be wise to stay away from the market until there is a clear directional movement, which is expected to happen this week or next.

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Technical analysis of USD/CHF for January 10, 2017

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Overview:

  • The USD/CHF pair faced strong support at the level of 1.0040. The USD/CHF pair continues to move downwards from the level of 1.0249. The pair dropped from the level of 1.0249 (this level of 0.9965 coincides with the double top) to the bottom around 1.0090. Moreover, the price spot of 1.0040 remains a significant support zone.
  • Therefore, there is a possibility that the USD/CHF pair will move upside and the structure of a fall does not look corrective. In order to indicate the bullish opportunity above 1.0040, buy above 1.0040 with the first target at 1.0173. Additionally, if the USD/CHF pair is able to break out the top at 1.0173, the market will rise further to 1.0249 so as to test the daily resistance 2 again. Also, it should be noticed that resistance 1 is seen at the level of 1.0173 which coincides the ratio of 78.6% Fibonacci Expansion.
  • Generally, the RSI is still signaling that the trend is upward as it remains strong above the moving average (100). This suggests the pair will probably go up in coming hours.
  • Accordingly, the market is likely to show signs of a bullish trend. In other words, buy orders are recommended above 1.0040 with the first target at the level of 1.0173. If the trend is be able to break the first resistance at the level of 1.0173, then the market will continue rising towards the daily resistance 2 at 1.0249.
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Technical analysis of NZD/USD for January 10, 2017

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Overview:

  • The NZD/USD pair faces the key resistance at the level of 0.7047, while minor resistance is seen at 0.7028. Support is found at the levels of 0.6985, 0.6966 and 0.6946. Besides, a daily pivot point has already been formed at the level of 0.7012. Equally important, the NZD/USD pair is still moving around the key level at 0.7012, which represents a daily pivot on the H1 time frame at the moment. Today, resistance is seen at the levels of 0.7047 and 0.7028. So, we expect the price to set below the strong resistance at the levels of 0.7028 and 0.7028, as it is in a bearish channel now. Amid previous events, the price is still moving between the levels of 0.7028 and 0.6946. Overall, we still prefer the bearish scenario as long as the price is below the level of 0.7028. Furthermore, if the NZD/USD pair is able to break the first support at 0.6985 and 0.6966, then the market will decline further to 0.6946 (daily support 3). Generally, the price will probably fall into a bearish trend in order to go further towards the strong support at 0.6946 to test it again. The level of 0.6946 will form a double bottom. On the other hand, if the price closes above the strong resistance of 0.7047, the best location for a stop loss order is seen above 0.7075.
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Technical analysis of USDX for January 10, 2017

As expected, the dollar index got rejected at resistance and is back near its lows made on January 4th. The reversal in the index is of a bigger degree than normal and I expect further decline in the next few days. However the 102.50 mark is a key level now.

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Green line - support (broken)

The dollar index broke below the green trend line which was an important short-term support. Price bounced to back test the breakout area and got rejected by the Ichimoku cloud and the 50% Fibonacci retracement. Short-term resistance is now at 102.50 and bulls need to break it in order to see new highs near 104.50-105.

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Green line - long-term support

The weekly candle is weakening and has broken the first important support of 102.16 which I mentioned yesterday. Next important support is at 101.28. If we break below it, we should expect a sharp move lower towards 99. Oscillators were warning for a pullback over the past few weeks and I believe the uptrend is unfolding and an important correction has started.

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Technical analysis of gold for January 10, 2017

Gold price remains near its highs after making a higher high yesterday at $1,187. However in the short-term a pullback is justified towards $1,150-60 as there are bearish divergence signs on the 4-hour chart.

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Red lines - bullish channel

Gold price is trading inside a short-term bullish channel above the 4-hour Ichimoku cloud support. Short-term support is at $1,175. If that level is broken we will assume that the pullback has started with most probable target the $1,160-50 area. Gold price could rebound towards the Ichimoku cloud for a backtest.

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The weekly chart remains bullish as oscillators are far from overbought and point to a multi-week rise ahead of us. I believe there are still chances we see a new low below $1,122 but

the odds are in favor of the bullish scenario for the Gold price. The chances of a new low will weaken once Gold price breaks above $1,220.

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Elliott wave analysis of EUR/NZD for January 10, 2017

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Wave summary:

We continue to favor a break above minor resistance at 1.5153 and more importantly above resistance at 1.5282 for upside acceleration towards the 1.5837 - 1.5869 area. That said, we have to acknowledge the possibility that the corrective decline from 1.5235 could move closer to 1.4900 before completing and setting the stage for the next impulsive rally higher.

R3: 1.5282

R2: 1.5228

R1: 1.5153

Pivot: 1.5095

S1: 1.4977

S2: 1.4960

S3: 1.4900

Trading recommendation:

We are long EUR from 1.5123 with stop placed at 1.4955. If you are not long EUR yet, then buy near 1.4977 or upon a break above 1.5282 and use the same stop at 1.4955.

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Elliott wave analysis of EUR/JPY for January 10, 2017

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Wave summary:

Our preferred outlook remains that the triangle consolidation in wave (iv) is completed at 122.00 and the final impulsive rally towards 126.54 is developing. This means that support at 122.00 must hold firm and protect the downside for a break above 123.85 confirming the next part of the rally higher towards 126.54.

A break below 122.00 will indicate that the triangle is still unfolding, but the downside should be limited 121.88 before the final rally in wave (v) kicks in.

R3: 123,72

R2: 123,07

R1: 122,92

Pivot: 122,57

S1: 122,30

S2: 122,00

S3: 121,88

Trading recommendation:

We are long EUR from 123,13 with stop at 121.75. If you are not long EUR yet, then buy near 122.30 or upon a break above 123,07 and use the same stop at 121,75.

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Technical analysis of USD/JPY for January 10, 2017

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USD/JPY is expected to trade with a bearish bias. The pair is turning down now, and remains capped by its falling 20-period moving average. The relative strength index is negative below its neutrality area at 50. Last but not least, the key horizontal resistance at 116.30 maintains the strong selling pressure on the prices.

To sum up, below 116.30, look for a new pullback to 115.15 and 114.70 in extension.

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 115.15. A break below this target will move the pair further downwards to 114.70. The pivot point stands at 116.30. 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 116.75 and the second one at 117.15.

Resistance levels: 116.75, 117.15, 117.45

Support levels: 115.15 114.70, 114.25

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Technical analysis of USD/CHF for January 10, 2017

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USD/CHF is expected to extend its downside movement. The pair broke below its 20-period and 50-period moving averages, which are playing resistance roles now, and consolidated on the downside. The relative strength index is below its neutrality level at 50 and lacks upward momentum. Additionally, 1.0165 is playing a key resistance role, which should limit the upside potential.

As long as this key level holds on the upside, look for a further drop towards 1.0090 and 1.0055 in extension.

Resistance levels: 1.0195, 1.0220, 1.0240

Support levels: 1.0090, 1.0055, 1.0020

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Technical analysis of EUR/USD for Jan 10, 2017

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When the European market opens, some economic data will be released such as French Industrial Production m/m. The US will release the economic news too such as Final Wholesale Inventories m/m, JOLTS Job Openings, and NFIB Small Business Index. So amid the reports, EUR/USD will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Breakout BUY Level: 1.0640.

Strong Resistance:1.0633.

Original Resistance: 1.0623.

Inner Sell Area: 1.0613.

Target Inner Area: 1.0588.

Inner Buy Area: 1.0563.

Original Support: 1.0553.

Strong Support: 1.0543.

Breakout SELL Level: 1.0536.

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 10, 2017

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In Asia, Japan will release the Consumer Confidence. The US will release a series of economic data such as Final Wholesale Inventories m/m, JOLTS Job Openings, and NFIB Small Business Index. 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: 116.43.

Resistance 2: 116.21.

Resistance 1: 115.98.

Support 1: 115.70.

Support 2: 115.48.

Support 3: 115.25.

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

Technical analysis of NZD/USD for January 10, 2017

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NZD/USD is expected to trade with a bullish bias. The pair is trading above its rising 20-period and 50-period moving averages, which play support roles and maintain the upside bias. The relative strength index stands firmly above its neutrality level at 50. As long as 0.7000 is support, look for a further upside toward 0.7070. A break above this level would call for a further advance toward 0.7100.

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 0.7070 and the second one at 0.7100. In the alternative scenario, short positions are recommended with the first target at 0.6975 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 0.6945. The pivot point is at 0.700.

Resistance levels: 0.7070, 0.7100, 0.7145

Support levels: 0.6940, 0.6925, 0.6885

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Technical analysis of GBP/JPY for January 10, 2017

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GBP/JPY is under pressure. The pair broke above its 20-period moving average but is still trading below the declining 50-period one, which is still playing a resistance role and maintains the downside bias. The relative strength index is around its neutrality level at 50. Even though a continuation of technical rebound cannot be ruled out, its extent should be limited. As long as 141.65 is resistance, the pair is likely to return to its previous low at 139.85. A break below this level would call for a further drop toward 139.10.

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 139.85. A break below this target will move the pair further downwards to 139.10. The pivot point stands at 141.65. 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 142.45 and the second one at 143.00.

Resistance levels: 142.45, 143.00, 143.75

Support levels: 139.85, 139.10, 138.45

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NZD/USD Intraday technical levels and trading recommendations for January 10, 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 was trapped within the depicted price range (0.6860-0.6990) until breakout occurred. That's why, the current bullish breakout above 0.6990 should be maintained and defended by the bulls.

A bullish breakout above 0.6960 will allow the pair to head initially for the price level of 0.7100 where bearish rejection is expected.

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USD/CAD intraday technical levels and trading recommendations for January 10, 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, a 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.

A bullish breakout above 1.3360 (50% Fibonacci level) allows a bullish movement toward 1.3700-1.3750 (the upper limit of the depicted channel) where bearish rejection should be expected.

On the other hand, the current bearish pullback toward 1.3300 - 1.3250 (50% Fibonacci Level) should be watched for bullish rejection and a possible BUY entry. S/L should be placed below 1.3170.

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Intraday technical levels and trading recommendations for GBP/USD for January 10, 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 lowered to 1.2500 to secure some profits. T/P level should be located at 1.2100.

This SELL entry should be monitored cautiously as the ascending bottoms around the price levels of 1.2120 and 1.2320 may generate significant bullish pressure thus threatening the suggested trade.

On the other hand, price action should be watched around the current price levels (1.2150-1.2100) where previous bottoms were established. 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 10, 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 toward 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 further bearish 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.

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

Daily analysis of USDX for January 10, 2017

The index found dynamic resistance at 200 SMA (H1 chart) and that helped to block the bulls' advance across the board during Monday's session. The support zone of 101.96 is being challenged and a consolidation below that area should expose the next key support around 101.39, which should help to strengthen the bears in the short-term. To the upside, the next resistance lies at the 102.30 level.

USDXH1.png

H1 chart's resistance levels: 102.29 / 102.81

H1 chart's support levels: 101.96 / 101.39

Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the USD Index breaks with a bearish candlestick; the support level is at 101.96, take profit is at 101.39 and stop loss is at 102.54.

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

Daily analysis of GBP/USD for January 10, 2017

The pair posted another session with losses as the GBP was under pressure, following Theresa May's comments on Brexit. Currently, GBP/USD is on its way to test the flash-crash low made during October 2016, around the 1.2033 level. Before that, the pair should perform a breakout below the 1.2123 level in order to reach that zone, while a rebound at the current stage should take the Sterling to test the 1.2203 area.

GBPUSDH1.png

H1 chart's resistance levels: 1.2167 / 1.2203

H1 chart's support levels: 1.2123 / 1.2033

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 1.2123, take profit is at 1.2033 and stop loss is at 1.2214.

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