Global macro overview for 16/01/2017

Global macro overview for 16/01/2017:

European Central Bank governing council member and Bank of France governor Francois Villeroy de Galhau has hit the news wires today with the interesting comments regarding infaltion expectations. According to him, inflation concerns are "greatly exaggerated" as "we (ECB) aren't even at our target of 2 percent". Moreover, he said that the acceleration in euro area inflation will be "gradual" and expects inflation rates of the euro area countries to converge during 2017. The ECB Governing Council holds a monetary policy meeting this week at Thursday, 19th of January at 12:45 pm GMT (Interest Rate decision) and 01:30 pm GMT (press conference). No change in the key interest rate is expected (0.00%), but some more hawkish members of the ECB might start to suggest a pause/termination in the quantitative easing program. Another scenario will come as a huge surprise for market participants.

Let's now take a look at the EUR/USD techncial picture in 4H time frame. The price is quitetly trading around the weekly pivot at the level of 1.0600 as the US markets are closed today. Please notice the growing bearish divergence between the price and the momentum oscillator. It suggest that the down trend should resume soon and any breakout below the golden trend line will be considered as a first clue. The next support is seen at the level of 1.0453 and the next resistance is seen at the level of 1.0670.

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Global macro overview for 16/01/2017

Global macro overview for 16/01/2017:

On Monday morning, the main market move on Forex was the British pound plunge, as fears of a "hard Brexit" has mounted in the recent week. According to reports from The Sunday Times, a speech by British Prime Minister Theresa May slated for Tuesday is widely expected to focus on the negotiations with the EU. Her main goals are the immigration control and liberation from the influence of the European Court of Justice. Tough stance on these matters by Mrs. May accounts for the loss of access to the UK single European market, which will be a serious blow to the UK economy.

Let's now take a look at the GBP/USD technical picture in 4H time frame after it slupmed below the level of 1.2000. Despite all of the concerns, the weekend gap down between the levels of 1.2085-1.2170 is likely to be filled soon and the growing bullish divergence between the price and the momentum oscillator supports the view. The next support is seen at the level of 1.2038 and the next resistance is seen at the level of 1.2121.

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Technical analysis of USD/CAD for January 16, 2017

General overview for 16/01/2017:

The bottom of the wave a (purple) seems to be in place and now the market is trading around the weekly pivot at the level of 1.3143. It looks like the wave b (purple) is currently unfolding. Any violation of the intraday resistance at the level of 1.3293 will immediately invalidate the main count and the alternative scenario will replace it.

Support/Resistance:

1.2994 - WS1

1.3026 - Intraday Support

1.3143 - Weekly Pivot

1.3259 - WR1

1.3293 - Intraday Resistance

1.3408 - WR2

Trading recommendations:

Day traders should consider opening buy orders only if the level of 1.3293 is clearly violated. TP should be left open for now, while the first logical level is the weekly pivot resistance at the level of 1.3408.

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Technical analysis of EUR/JPY for January 16, 2017

General overview for 16/01/2017:

The low of the wave c (green) of the wave 4 (blue) seems to be in place now at the level of 120.75. The confirmation of the bottom will come with the intraday resistance at the level of a 121.18 breakout. Please notice, that according to the Elliott wave count, there is still one more big wave to the upside missing - wave (5) blue.

Support/Resistance:

120.75 - Intraday Support

120.89 - Technical Support

121.18 - Intraday Resistance

122.01 - Weekly Pivot

122.82 - WR1

123.85 - Swing High

Trading recommendations:

Day traders should consider opening buy orders only if the level of 121.18 is clearly violated. TP should be set at the level of 122.01.

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Gold analysis for January 16, 2017

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Recently, gold has been trading upwards sideways at the price of $1,203.00. According to the 15M time frame, I found bearish divergence in the Moving Average Oscilator. The price made a higher high and the oscilator made a lower high. My advice is to watch for potential selling opportunities. Downward targets are set at the price of $1,197.40 (point of control) and $1,188.25.

Resistance levels:

R1: 1,204.85

R2: 1,206.70

R3: 1,209.65

Support levels:

S1: 1,198.95

S2: 1,197.00

S3: 1,194.15

Trading recommendations for today: Bearish divergence on the oscilator. Watch for potential selling opportunities.

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EUR/NZD analysis for January 16, 2017

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Recently, EUR/NZD has been moving sideways at the price of 1.4943. I found a fake breakout of the support, which is a sign of strength. According to the 30M time frame, I found bullish divergence on a moving average oscilator. My advice is to watch for buying opportunities. Take profit levels are set at the price of 1.4995 and 1.5065. Using the market profile, I found a P-shape, which is a sign of strength.

Fibonacci Pivot Points:

Resistance levels

R1: 1.4980

R2: 1.5000

R3: 1.5040

Support levels:

S1: 1.4900

S2: 1.4875

S3: 1.4835

Trading recommendations for today: Watch for potential buying opportunties.

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AUD/JPY remain bearish

We remain bearish below 86.08 resistance (Fibonacci retracement, recent swing high resistance, Fibonacci projection) for a short-term push down to 85.04 support.

Stochastic (21,5,3) is seeing major resistance at 91%.

Sell below 86.08. Stop loss at 86.44. Take profit at 85.04.

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XAU/USD at major resistance, time to sell

We turn bearish below $1,198 resistance (Fibonacci retracement, horizontal resistance) as we prepare to see a strong move down to $1,176 support (Fibonacci retracement, recent swing low support, Fibonacci projection).Stochastic (21,5,3) is seeing strong resistance below 92% and we also are starting to see the bearish exit of stochastic signalling a strong drop is expected soon.

Sell below $1,198. Stop loss at $1,205. Take profit at $1,176.

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USD/CHF potential double bottom, prepare to buy

Price has formed a really nice potential double bottom pattern and we expect price to surpass 1.0111 resistance (Fibonacci retracement, neckline resistance) for a push up all the way to 1.0184.

Stochastic (21,5,3) is seeing bullish divergence vs price and also support above the 9% level which tells us a big bounce is coming soon.

Buy above 1.0111. Stop loss at 1.0052. Take profit at 1.0184.

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AUD/USD remain bearish below major resistance

We remain bearish below major resistance at 0.7522 (Fibonacci retracement, Fibonacci projection, horizontal resistance) and we expect a strong drop from this level to at least 0.7353 support (Fibonacci retracement, horizontal overlap support).

Stochastic (21,5,3) remain at 92% resistance where we expect a drop from.

Sell below 0.7522. Stop loss at 0.7576. Take profit at 0.7353.

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Technical analysis of GBP/USD for January 16, 2017

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Overview:

  • The market has opened below the first resistance of 1.2083 (look the gap). Today, probably, it continues to move downwards from the level of 1.2083 to the bottom around 1.1982. The first resistance level is seen at 1.2083 followed by 1.2130, while daily support levels are seen at 1.1982 and 1.1946. Furthermore, the moving average (100) starts signaling a downward trend; therefore, the market is indicating a bearish opportunity below 1.2080. So it will be good to sell at 1.2080 with the first target of 1.1982. It will also call for a downtrend in order to continue towards 1.1946. The strong daily support is seen at the 1.1946 level. According to the previous events, we expect the GBP/USD pair to trade between 1.2080 and 1.1950 in coming hours. The price area of 1.2080 remains a significant resistance zone. Thus, the trend is still bearish as long as the level of 1.2080 is not broken. On the contrary, in case a reversal takes place and the GBP/USD pair breaks through the resistance level of 1.2080, then a stop loss should be placed at 1.2150
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Technical analysis of EUR/USD for January 16, 2017

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Overview:

  • The EUR/USD pair faced resistance at the level of 1.0684, while minor resistance is seen at 1.0643. Support is found at the levels of 1.0512 and 1.0471 in the H1 time frame at the moment. Besides, it should be noted that a weekly pivot point has already seen at the level of 1.0512. Equally important, the EUR/USD pair is still moving around the key level at 1.0595. Last week, the pair dropped from the level of 1.0684 to 1.0595, Today, resistance is seen at the levels of 1.0684 and 1.0643. So, we expect the price to set below the strong resistance at the levels of 1.0684 and 1.0643; because the price is in a bearish channel now. Amid the previous events, the price is still moving between the levels of 1.0643 and 1.0512. In overall, we still prefer the bearish scenario as long as the price is below the level of 1.0643. Furthermore, if the EUR/USD pair is able to break weekly pivot at 1.0512, the market will decline further to 1.0471 (weekly support 2 is seen at 1.0379). Hence, the price will fall into a bearish trend in order to go further towards the strong support at 1.0379 to test it again. The level of 1.0339 will form a double bottom. On the other hand, if the price closes above the strong resistance of 1.0643, the best location for a stop loss order is seen above 1.0690.
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Technical analysis of USDX for January 16, 2017

The Dollar index continues to make lower lows and lower highs. Price is in a bearish channel. As long as price remains below 102.65, trend is bearish and we are heading towards 100 and maybe lower. Trend change will be confirmed in the short term for a break above 102.65.

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Black lines- Bearish channel

Price is trading inside the black channel and below the Ichimoku cloud. There is no significant divergence sign yet, so I would not rule out a new lower low today or this week. Short-term resistance is at 101.80 and next at 102.20. Support is at 100.40.

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On a daily basis price is trading below the kijun-sen (yellow line indicator) and is trying to break up above it. Price has made an important low at 100.70 last week and if we break below it we should see price move towards 100 or even marginally below it. Important resistance on a daily basis is found at 102.20. A daily close above it will open the way for a move towards the important trend resistance of 102.65.The material has been provided by InstaForex Company - www.instaforex.com

USD/CAD intraday technical levels and trading recommendations for January 16, 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) was expected to allow a further advance toward 1.3700-1.3750 (the upper limit of the depicted channel). However, significant bearish rejection was expressed around 1.3580 (recent established top).

The price level of 1.3300 (50% Fibonacci Level) failed to provide enough support for the recent bearish pullback.

That's why, a further decline towards 1.3000 (61.8% Fibonacci level) should be watched for a possible BUY entry if enough bearish pressure is applied below 1.3150 (the lower limit of the depicted channel).

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Technical analysis of gold for January 16, 2017

Gold price remains inside the bullish channel making higher highs and higher lows. However there are several short-term warning signs that a pullback is imminent. Bulls need to be very careful especially if price breaks below $1,187.

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Red lines - bullish channel

Price is above the Ichimoku cloud. The 4-hour RSI is diverging. A pullback is very close. We should at least see price move towards $1,170. Trend remains bullish. The 38% Fibonacci retracement of the entire rise is at $1,175. The 61.8% Fibo is at $1,155.

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Gold price has also reachedthe 38% Fibonacci retracement resistance of the decline from the post election highs to the $1,122 lows. Price remains below the daily cloud resistance. A rejection here will be a bearish sign but also justified. The bigger question is whether we will make a higher low or break below $1,122.The material has been provided by InstaForex Company - www.instaforex.com

NZD/USD Intraday technical levels and trading recommendations for January 16, 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).

A 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 of that, bearish movement continued 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 a bullish breakout occurred.

A bullish breakout above 0.7000 allowed the pair to head towards the price level of 0.7100 (Sell Entry 2) where a valid sell entry can be taken.

Initial bearish targets would be located around 1.7030 and 0.6960. S/L should be set as a daily closure above 0.7150.

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Intraday technical levels and trading recommendations for EUR/USD for January 16, 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).

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.

Bearish persistence below the depicted demand level around 1.0570 allows a further decline. The first bearish target would be located around 1.0220.

Note that the price level of 1.0600 constitutes a recent supply level to be watched during the current bullish pullback above 1.0500.

On the other hand, bullish breakout above 1.0600 allows further bullish advance towards 1.0825 (Fibonacci Expansion 100%) where bearish rejection should be anticipated.

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Intraday technical levels and trading recommendations for GBP/USD for January 16, 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 to be a valid SELL entry. S/L should be lowered to 1.2400 to secure profits.

Note that successive lower highs were established around the price levels of 1.2700 and 1.2400. These may generate significant bearish pressure against the demand level of 1.2000.

Price action should be watched around the current demand level of 1.2000 for bullish rejection. Otherwise, the next bearish destination would be located around 1.1200 (Fibonacci Expansion 100%).

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Daily analysis of major pairs for January 16, 2017

EUR/USD: The EUR/USD pair went upwards seriously last week, resulting in a Bullish Confirmation Pattern in the market. Price topped at 1.0684, and it could still go further than that. Although the market is quite choppy, further upward movement is anticipated and the resistance lines at 0.0700, 0.0750, and 0.0800 would be tested this week.

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USD/CHF: The USD/CHF pair went downwards seriously last week, resulting in a Bearish Confirmation Pattern in the market. Price hit the low of 1.0042, and it could still go further than that. Although the market is quite choppy, further downwards movement is anticipated and the support level 1.0000 could tested this week. It could also be breached to the downside, but that would require a massive selling pressure.

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GBP/USD: This pair attempted to make some bullish movement last week – an effort that was rejected at the distribution territory at 1.2300. This shows that rallies in this market should be approached with caution and would be better taken as opportunities to sell short at better prices. The reason is because the major outlook on the market remains bearish.

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USD/JPY: The USD/JPY pair is now in a bearish mode. Price moved downwards significantly last week, reaching the demand level at 114.00. Although there is an upwards bounce in the market, the demand level would be tested again, very soon. The market is expected to continue going downwards this week.

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EUR/JPY: The EUR/JPY pair is now in a clear bearish trend. Price has gone down by 230 pips last week, and the upwards bounce that is currently unfolding is shallow. A further bearish movement is anticipated, which may take price towards the demand zones at 121.00, 120.50, and 120.00.

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Elliott wave analysis of EUR/NZD for January 16, 2017

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Wave summary;

EUR/NZD tried to take out minor resistance at 1.5007, but failed at 1.5003, which has kept the short-term pressure to the downside, but a low should is most likely in place at 1.4841, but we still need a break above 1.5007 to confirm this is the case. A break above 1.5007 will call for a continuation higher towards 1.5193 and a break above here will leave no doubt that the correction in wave ii/ finally has completed and more upside towards 1.5837 is unfolding.

R3: 1.5143

R2: 1.5045

R1: 1.5007

Pivot: 1.4966

S1: 1.4897

S2: 1.4841

S3: 1.4811

Trading recommendation:

Our stop at 1.4850 was hit. We will only buy a break above 1.5007.

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Elliott wave analysis of EUR/JPY for January 16, 2017

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Wave summary;

EUR/JPY rallied to 122.42 and then turned around to take out, unexpectedly, the 121.16 low. This does open for a move slightly lower to 120.87 to complete wave (iv). It however, also reopens the outside possibility of a corrective decline closer to support at 119.05 before wave (iv) is complete. The first good indication of wave (iv) being complete will be a break above minor resistance at 121.68, while a break above resistance at 122.42 will confirm that wave (iv) is complete and wave (v) towards 126.54 has taken over.

R3: 122,62

R2: 122.42

R1: 121.68

Pivot: 121.10

S1: 120.87

S2: 120.48

S3: 120.16

Trading recommendation:

Our stop at 121.05 was hit. We will only buy a break above 121.68.

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Technical analysis of USD/JPY for January 16, 2017

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USD/JPY is Under pressure. The pair pulled back last Friday, and is now testing its nearest support at 114.00. The risk of a slide below this level remains high, as the relative strength index is badly directed, without showing any reversal signals.

The U.S. dollar showed some signs of rebounding energy upon the release of economic data. However, the upward momentum proved unsustainable. The ICE U.S. Dollar Index finally ended at 101.18 (day-high at 101.67), down 0.2% on day and extending its losing streak to a third session.

In which case, as long as 114.80 holds on the upside, further decline seems to be on the cards toward 113.75 (Jan 12 low).

Recommendation:

The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 113.75. A break below this target will move the pair further downwards to 113.40. The pivot point stands at 114.65. 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 115.20 and the second one at 115.65.

Resistance levels: 115.20, 156.65, 116.05

Support levels: 113.75, 113.40, 113.00

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Technical analysis of USD/CHF for January 16, 2017

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USD/CHF is expected to rebound. The pair broke above its 20-period and 50-period moving averages. The relative strength index stands firmly above its neutrality level at 50 and lacks downward momentum. Additionally, a support base at 1.0075 has formed and should limit the downside potential.

The U.S. Commerce Department reported that retail sales increased 0.6% on month in December (vs. +0.7% expected). The Labor Department announced that the producer-price index excluding food and energy gained 0.2% on month in December (vs. +0.1% expected). The University of Michigan consumer sentiment index (preliminary reading) dipped to 98.1 in January (vs. 98.5 expected) from 98.2 in December.

As long as this key level is not broken, look for a further upside toward 1.0130 and even 1.0155 in extension.

Resistance levels: 1.0130, 1.0155, 1.0180

Support levels: 1.0040, 1.000, 0.9975

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Technical analysis of NZD/USD for January 16, 2017

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NZD/USD is expected to trade with bearish bias as the key resistance at 0.7145. The pair failed to break above its key resistance at 0.7145 and is consolidating on the downside. The relative strength index is around its neutrality level at 50 and lacks upward momentum. Even though a continuation of technical rebound cannot be ruled out, its extent should be limited. The upward potential should be limited by its key resistance at 0.7145. As long as this key level holds on the upside, look for a further drop toward 0.7065 and even 0.7040 in extension.

The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 0.7065. A break below this target will move the pair further downwards to 0.7040. The pivot point stands at 0.7145. 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 0.7175 and the second one at 0.7200.

Resistance levels: 0.7175, 0.72, 0.7245

Support levels: 0.7060, 0.7040, 0.7

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Technical analysis of GBP/JPY for January 16, 2017

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GBP/JPY is expected to prevails its downside movement. The pair broke below its former key support at 1.2140, which becomes a resistance now, with a bearish gap and is holding on the downside. The relative strength index is bearish below its 30% level and calls for a further drop. The downward momentum is further reinforced by its declining trend line, which emerged on Jan 12, as well as its descending 20-period and 50-period moving averages. As long as 138.90 holds on the upside, look for a further drop toward 136.60 and even 135.30 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 136.60. A break below this target will move the pair further downwards to 135.30. The pivot point stands at 138.90. 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 139.75 and the second one at 140.50.

Resistance levels: 139.75, 140.50, 141.50

Support levels: 136.60, 135.30, 134.45

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Technical analysis of EUR/USD for Jan 16, 2017

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When the European market opens, the Economic Data that will be released is Trade Balance, but, 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: 1.0684.

Strong Resistance: 1.0677.

Original Resistance: 1.0666.

Inner Sell Area: 1.0655.

Target Inner Area: 1.0629.

Inner Buy Area: 1.0602.

Original Support: 1.0591.

Strong Support: 1.0580.

Breakout SELL Level: 1.0573.

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 16, 2017

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In Asia, Japan will release the Prelim Machine Tool Orders y/y, Tertiary Industry Activity m/m, PPI y/y and Core Machinery Orders m/m, 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: 114.75.

Resistance. 2: 114.53.

Resistance. 1: 114.31.

Support. 1: 114.03.

Support. 2: 113.80.

Support. 3: 113.58.

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

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

Daily analysis of USDX for January 16, 2017

The index is still suffering from the USD weakness across the board, as Trump's rhetoric isn't helping to give a clearer path to the greenback in the short-term. However, USDX is supported by the 100.80 level and if that area gives up, we can expect a decline toward the 100.00 level, where a strong rebound could happen, but bear in mind that zone could act as a key pivot. To the upside, we can find a resistance around 101.76.

USDXH1.png

H1 chart's resistance levels: 102.29 / 102.81

H1 chart's support levels: 100.80 / 100.01

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 100.80, take profit is at 100.01 and stop loss is at 101.58.

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

Daily analysis of GBP/USD for January 16, 2017

Friday was quite volatile in terms of price action for GBP/USD, but the pair managed to stay inside the narrow channel established between the 200 SMA at H1 chart and the demand zone of 1.2123. The overall scenario remains bearish and it's possible to see a downside continuation during this week and a confirmation of that should be a breakout below the January 11st session.

GBPUSDH1.png

H1 chart's resistance levels: 1.2247 / 1.2293

H1 chart's support levels: 1.2175 / 1.2123

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 1.2175, take profit is at 1.2123 and stop loss is at 1.2228.

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