EUR/NZD analysis for January 17, 2017

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Recently, EUR/NZD has been moving downward. The price tested the level of 1.4849 in a high volume. I found a fake breakout of the support, which is a sign of strength. According to the 30M time frame, I found bullish candle formation (morning star) and later on a pin bar, which are signs of potential strength. The trend is still downward, but I expect the price to correct on the upside. My upward targets are set at the prices of 1.4982, 1.4915, and 1.4950.

Fibonacci Pivot Points:

Resistance levels

R1: 1.4960

R2: 1.4980

R3: 1.5020

Support levels:

S1: 1.4880

S2: 1.4860

S3: 1.4820

Trading recommendations for today: Watch for potential buying opportunities.

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Daily analysis of GBP/JPY for January 17, 2017

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Overview

The GBP/JPY pair traded downwards yesterday and closed near the 50% Fibonacci level around 137.50, affected by stochastic rally above 50 levels. The price stability above the current price might force it to show mixed trading and attempt to test 138.80 levels until gaining new negative momentum and renewing the negative attack to our main target at 135.30. In general, the main bearish bias will remain valid depending on the 138.80 barrier. The contradiction between the major indicators is the main factor of the current sideways fluctuations, so the price is likely to gather the required momentum in the near and medium term. The expected trading range for today is between 138.90 and 136.10.

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Daily analysis of Gold for January 17, 2016

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Overview

The gold price shows slight positive trading gradually approaching our first awaited target at 1,211.31 and keeps moving inside the bullish channel shown on the chart. The EMA50 protects trading inside this channel, providing positive chances of breaching the mentioned level followed by opening the way to 1,249.94. Therefore, we still expect the bullish trend in the upcoming sessions conditioned by the price stability above 1,193.50, as a break of this level represents a negative factor that will push the price to test 1,172.68 before any new attempt to rise. The expected trading range for today is between the 1,193.50 support and the 1220.00 resistance.

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Daily analysis of Silver for January 17, 2017

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Overview

The silver price continues to move within a tight range around 16.80. Stochastic has been getting rid of its negativity gradually approaching the oversold areas. This forms a positive factor that we are waiting to make the price resume the bullish trend in the upcoming period, which next main target is located at 17.43. Therefore, our positive overview will remain active for today unless a break of 16.56 levels that will push the price to test 15.49 areas before any new positive attempt. The expected trading range for today is between the 16.56 support and the 17.20 resistance.

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Analysis of gold for January 17, 2017

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Recently, gold has been trading sideways at the price of $1,218.80, heading upwards. On the 15M time frame, I found a bearish engulfing pattern and price action resistance. There is also a broken upward trendline, which is a sign that buyers lost power. Intraday trend is still upward but I see potential downward corection. Downward targets are set at the levels of $1,212.40 and $1,209.40.

Resistance levels:

R1: 1,207.00

R2: 1,209.00

R3: 1,212.20

Support levels:

S1: 1,200.95

S2: 1,198.00

S3: 1,195.30

Trading recommendations for today: broken upward trendline and bearish enguling bars can be seen on the 15M time frame. Watch for potential selling opportunties.

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Technical analysis of USD/JPY for January 17, 2017

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USD/JPY is trading under pressure. The pair remains in consolidation now, but is still under pressure below its key horizontal resistance at 114.40. Besides, the 50-period moving average is heading downward, without showing any reversal signal. In this case, as long as 113.80 is not surpassed, the risk of the break below 112.50 remains high.

Recommendation:

The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 112.50. A break below this target will move the pair further downwards to 112.00. The pivot point stands at 113.80. 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 114.25 and the second one at 114.65.

Resistance levels: 114.25, 114.65, 115

Support levels: 112.50, 112.00, 111.65

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Technical analysis of USD/CHF for January 17, 2017

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USD/CHF is expected to further decline. The pair is heading downward within its intraday falling channel in place. The relative strength index is bearish below its neutrality area at 50. In addition, both the 20-period and 50-period moving averages are turning down, and should confirm a negative outlook.

Hence, as long as 1.0050 holds on the upside, expect a new pullback to 0.9990 and 0.9950 in extension.

Resistance levels: 1.0080, 1.0120, 1.0180

Support levels: 0.9990, 0.9950, 0.9900

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Technical analysis of GBP/JPY for January 17, 2017

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GBP/JPY is under pressure. The pair is consolidating on the downside below its key resistance at 138, which should limit the upside potential. The downward momentum is further reinforced by declining 20-period and 50-period moving averages, which play resistance role and maintain the downside bias. Additionally, the 20-period moving average just crossed below the 50-period one. The relative strength index is below its neutrality level at 50 and lacks upward momentum. As long as 138 holds on the upside, look for a further drop toward 136.60 and even 136 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 135.00. The pivot point stands at 138.00. 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 138.45 and the second one at 139.00.

Resistance levels: 138.45, 139.00, 139.75

Support levels: 136.60, 136, 135.30

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Technical analysis of NZD/USD for January 17, 2017

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NZD/USD is expected to trade with the overall upward bias. The pair has been supported by an intraday rising trend line, as well as the 20-period and 50-period moving averages. Meanwhile, the relative strength index still stays above 50 and lacks downward momentum. Even though a continuation of the consolidation cannot be ruled out, its extent should be limited. As long as 07140 is not broken below, a further bounce is expected with 0.7190 as the next target.

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 0.7190 and the second one at 0.7216. In the alternative scenario, short positions are recommended with the first target at 0.7110 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 0.7090. The pivot point is at 0.7140.

Resistance levels: 0.7190, 0.7215, 0.7245

Support levels: 0.7110, 0.7090, 0.7060

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Global macro overview for 17/01/2017

Global macro overview for 17/01/2017:

The Center for European Economic Research (ZEW) polls financial experts throughout Europe every month in order to make a medium-term forecast about the economic situation. The ZEW Current Situation index reflects this approach as it jumped to 77.3 points from 63.5 points a month ago, which is better than 65.0 expected figure. Moreover, the ZEW Economic Sentiment index increased to 23.2 points from 18.1 points a month ago and hasn't beaten market expectations of 24.3. The ZEW experts say that the sharp rise in sentiment is triggered by the improved economic situation in European countries and fairly good flash German GDP numbers and Eurozone industrial production in November. In conclusion, today's mixed bag of data shows, that investors are still nervous about the future, but are ready to invest if those fears don't materialize.

Let's now take a look at the EUR/USD technical picture in 4H time frame after the data were published. After the bounce from the weekly pivot at the level of 1.0598, the market is flirting with the technical resistance at the level of 1.0670. So far no decisive break out has happened. Judging by the waning momentum, this might be the beginning of a reversal for this pair. However, in case of a further breakout, the next technical resistance is seen at the level of 1.0874.

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Technical analysis of USD/CHF for January 17, 2017

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Overview:

  • The USD/CHF pair continues to move downwards from the level of 1.0173. The pair dropped from the level of 1.0173 to the bottom around 1.0075. This week, the first resistance level is seen at 1.0173 followed by 1.0173, while daily support 1 is found at 1.0040. Current price is seen at 1.0040. Besides, the level of 1.0040 represents a weekly pivot point for that it is acting as major support this week. Amid the previous events, the USD/CHF pair is still in a downtrend, because it is trading in a bearish trend from the new resistance line of 1.0173 towards the first support level at 1.0040 in order to test it. If the pair succeeds to pass through the level of 1.0040, the market will indicate a bearish opportunity below the level of 1.0040. Sell orders are recommended below the area of 1.0040 with the first target at the level of 1.0000; and continue towards 0.9946. However, if a breakout happens at the resistance level of 1.0173, then this scenario may be invalidated. Overall, we still prefer the bearish scenario which suggests that the pair will stay below the zone of 1.0173 this week.
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Technical analysis of NZD/USD for January 17, 2017

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Overview:

  • The NZD/USD pair continues to move upwards from the level of 0.7095. Yesterday, the pair rose from the level of 0.7095 (the level of 0.7095 coincides with a ratio of 61.8% Fibonacci retracement) to a top around 0.7180. Today, the first support level is seen at 0.7157 followed by 0.7095, while daily resistance 1 is seen at 0.7194. According to the previous events, the NZD/USD pair is still moving between the levels of 0.7157 and 0.7238; for that we expect a range of 81 pips (0.7238 - 0.7157). Currently, the price is moving in a bullish channel. This is confirmed by the RSI indicator signaling that we are still in a bullish trending market. The price is still above the moving average (100). On the four-hour chart, immediate resistance is seen at 0.7194. Therefore, if the trend is able to break out through the first resistance level of 0.7194, we should see the pair climbing towards the daily resistance at 0.7238 to test it. It would also be wise to consider where to place stop loss; this should be set below the second support of 0.7049.
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Global macro overview for 17/01/2017

Global macro overview for 17/01/2017:

The UK macroeconomic data release at 09:30 am GMT and Prime Minister Theresa May speech later on are the main market movers for the pound sterling. The first series of data from the UK are PPI Input, PPI Output, and CPI Core. These reports are quite important for Bank of England monetary policy projections. Market participants expect CPI to increase slightly to the level of 0.3% from 0.2% a month ago, which means higher inflationary pressure that is welcomed by BoE. On the other hand, Theresa May's speech can once again cause fear among investors about the so-called "hard Brexit" and it will definitely weaken the British Pound.

Let's now take a look at the GBP/USD technical picture in 4H time frame. From a technical point of view, the clear downward trend prevails, so strong statements about the UK exit from the EU can very easily bring the market back down again. Besides, keep in mind that good data (better than expected) and a neutral speech by Theresa May can cause temporary strengthening of the Pound against the Dollar. The consequence of this might be at least a major upward correction of GBP/USD. Currently, the market is trying to close the weekend gap between the levels of 1.2085 - 1.2169. The next immediate resistnace is seen at the level of 1.2121 and the next support is seen at the level of 1.2038.

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Technical analysis of USD/CAD for January 17, 2017

General overview for 17/01/2017:

The high of the wave b (purple) has been made at the level of 1.3188 and now the market is trying to unfold the last wave down - c (purple).The most important level of the day is intraday support at the level of 1.3026 that will act as an invalidation level for the alternative green impulsive count as well. On the other hand, 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

1.3188 - Intraday Resistnace

1.3259 - WR1

1.3293 - Techncal 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 17, 2017

General overview for 17/01/2017:

Another marginal lower low has been made in this market, but the overall outlook does not change. The new bottom has been made at the level of 120.64 and 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:

120.64 - 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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Technical analysis of USDX for January 17, 2017

The dollar index is still inside the bearish channel on a short-term basis. Price is heading towards 100 where the medium-term support is found. If the index breaks above 102.65, the trend can change to bullish targeting 105-106.

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Black lines - bearish channel

Price is making lower lows and lower highs. The fact that it is trading below the Ichimoku cloud confirms the bearish trend. Short-term support is at 100.50 while resistance lies at 102. Bulls need to break above 102.65 in order to confirm a bullish trend reversal. However there are still no signs of a bullish divergence on the 4 hour chart, so the dollar index may continue to be pressured.

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Green line - long-term support

On a weekly basis, we can see the index closed last week below the Tenkan-Sen (red line indicator). A lower low this week will open the way for a move lower towards the Kijun-sen (yellow line indicator) at 99 where critical long-term support is found. The oscillators are turning lower from overbought levels and this is a bearish long-term sign. The long-term green trend line remains the most important support of the longer-term trend.

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Daily analysis of major pairs for January 17, 2017

EUR/USD: This pair is in a bullish mode, and because of the current Bullish Confirmation Pattern on the 4-hour chart, it is possible that price would continue going upwards this week, reaching the resistance lines at 1.0650 and 1.0700 soon. The resistance line at 1.0650 was tested last week, and it may be tested again 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, a further downwards movement is anticipated and the support level 1.0000 could tested this week.

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GBP/USD: This GBP/USD pair opened with a gap-down this week and later moved sideways on Monday. The bias remains bearish and a further downward movement is anticipated this week, for price may reach the accumulation territories at 1.1950 and 1.1900 this week, but that would require a strong selling pressure.

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USD/JPY: This currency trading instrument did not move significantly yesterday – though a bearish signal has already formed on it. The current sideways movement may continue for some time (or days) but a breakout would happen soon, which would most probably be in favor of the bears.

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EUR/JPY: The EUR/JPY pair also gapped down at the beginning of this trading week. The outlook on the market has turned bearish since last week, and as price trended further downwards on Monday, the bearish outlook has been strengthened further. The next targets are the demand zones at 120.50 and 120.00; to be attained soon.

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Technical analysis of gold for January 17, 2017

As expected, gold is making higher highs this morning as the price remains inside the bullish channel. There are several warning signs as the RSI is diverging which justifies a pullback in the short term. This pullback will be confirmed once the price breaks below $1,193.

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Red lines - bullish channel

Black line - divergence

Gold price is trading above both the Tenkan- and Kijun-sen (red and yellow line indicators). Trend remains bullish in the short term. Price has reached our target at $1,200-$1,220 which acts as a key medium-term resistance. I expect a rejection from this area as there are also bearish divergence signs on the 4 hour chart.

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On a weekly basis, the gold price reached the lower boundary of the Kumo cloud as was initially expected. The oscillators are just turning upwards and this is a bullish long-term sign. Gold may find the current resistance too strong to be broken and might pull back for a couple of weeks. Bulls need to be cautious.The material has been provided by InstaForex Company - www.instaforex.com

Elliott wave analysis of EUR/NZD for January 17, 2017

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Wave summary:

We continue to look for evidence that the double zig-zag correction from 1.5235 is complete. The first solid evidence, will be a break above minor resistance at 1.5007, while a break above resistance at 1.5193 confirms that the wave iii/ higher toward 1.5837 and above longer term has taken over. That said, we have to acknowledge the risk of a third zig-zag unfolding. If this is the case, then more downside toward 1.4778 could be seen before the next impulsive rally finally takes over.

R3: 1.5193

R2: 1.5050

R1: 1.5007

Pivot: 1.4895

S1: 1.4841

S2: 1.4810

S3: 1.4778

Trading recommendation:

We will only buy a break above 1.5007

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Elliott wave analysis of EUR/JPY for January 17, 2017

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Wave summary:

We continue to look for evidence that the correction from 123.19 has completed. The first good evidence, will be a break above minor resistance at 121.68, while a break above resistance at 122.42 will confirm the completion of wave (iv) and call for a rally higher toward 126.54 in wave (v) to complete wave 3. This also means, that as long as minor resistance at 121.68 is able to cap the upside, we must allow for a move slightly lower to 120.40 and maybe even closer to 119.05 before wave (iv) finally terminates and wave (v) will be ready to take over.

R3: 122.42

R2: 121.68

R1: 121.20

Pivot: 120.92

S1: 120.72

S2: 120.40

S3: 119.05

Trading recommendation:

We will only buy a break above 121.68.

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Technical analysis of EUR/USD for Jan 17, 2017

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When the European market opens, some Economic Data will be released, such as ZEW Economic Sentiment, German ZEW Economic Sentiment, Italian Trade Balance and French Gov Budget Balance. The US will release the economic data, too, such as Empire State Manufacturing Index, so, amid the reports, EUR/USD will move in a low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Breakout BUY Level: 1.0658.

Strong Resistance:1.0651.

Original Resistance: 1.0641.

Inner Sell Area: 1.0631.

Target Inner Area: 1.0606.

Inner Buy Area: 1.0581.

Original Support: 1.0571.

Strong Support: 1.0561.

Breakout SELL Level: 1.0554.

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 17, 2017

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In Asia, Japan will release the Revised Industrial Production m/m, and the US will release some Economic Data, such as Empire State Manufacturing Index. So, there is a probability the USD/JPY will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Resistance. 3: 114.74.

Resistance. 2: 114.52.

Resistance. 1: 114.30.

Support. 1: 114.02.

Support. 2: 113.79.

Support. 3: 113.57.

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

NZD/USD Intraday technical levels and trading recommendations for January 17, 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 toward 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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USD/CAD intraday technical levels and trading recommendations for January 17, 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 toward 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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Intraday technical levels and trading recommendations for GBP/USD for January 17, 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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Intraday technical levels and trading recommendations for EUR/USD for January 17, 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 persistence above 1.0600 allows further bullish advance toward 1.0825 (Fibonacci Expansion 100%) where bearish rejection should be anticipated.

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Daily analysis of USDX for January 17, 2017

USDX is doing a recovery above the support level of 100.80, despite the U.S holiday with thin volatility in the markets during the American session. So far, the index is trying to approach the 200 SMA at H1 chart and a breakout above that area can expose the next key level of 102.29, which should help to strengthen the bullish bias in the short-term.

USDXH1.png

H1 chart's resistance levels: 101.76 / 102.29

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.

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Daily analysis of GBP/USD for January 17, 2017

Following the strong bearish gap is seen on Monday's Asia opening, GBP/USD managed to recover above the 1.2000 handle and it's now being supported by the 1.2040 level. If the rebound extends in coming days, we can expect a rally's attempt toward the 1.2132 level, which is very close to the 200 SMA at H1 chart to fill the gap. MACD indicator is favoring that scenario, as it stays in the positive territory.

1484598899_GBPUSDH1.png

H1 chart's resistance levels: 1.2132 / 1.2212

H1 chart's support levels: 1.2040 / 1.2000

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 1.2040, take profit is at 1.2000 and stop loss is at 1.2082.

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