Gold analysis for January 20, 2017

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Recently, gold has been trading sideways at the price of $1,203.00. In the 4H time frame and using the Ichimoku cloud, I found that there is potential space for a downward correction. I found cross Tenkan sen-Kijun sen which is a sign for potential weakness and it is weak sell signal on 4H time frame. Anyway, according to the 1H time frame, I found that price has broken the Ichimoku cloud for downside, which is also a sign of weakness. Pay attention on downward levels at $1,195.85 and $1,178.55. Watch for potential selling opportunities.

Resistance levels:

R1: 1,203.35

R2: 1,205.30

R3: 1,208.45

Support levels:

S1: 1,197.10

S2: 1,195.15

S3: 1,192.05

Trading recommendations for today: Watch for selling opportunities.

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EUR/NZD analysis for January 20, 2017

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Recently, EUR/NZD has been upwards. The price tested the level of 1.4913. According to the 4H time frame and using the Ichimoku, I found potential upawrd corection on EUR/NZD. The price is trading above Kijun and Tenkan sen, which is a sign that there is strength at the moment. According to the 1H time frame, the price went above the Cloud and this is another sign of strength on a lower frame. There is also a double bottom formation in the background. My advice is to watch for buying opportunities with a target at the price of 1.4980.

Fibonacci Pivot Points:

Resistance levels

R1: 1.4900

R2: 1.4940

R3: 1.4997

Support levels:

S1: 1.4780

S2: 1.4745

S3: 1.4685

Trading recommendations for today: Watch for potential buying opportunities.

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USD/CAD intraday technical levels and trading recommendations for January 20, 2017

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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.

The 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, the recent bearish pullback toward 1.3000 (61.8% Fibonacci level) offered a valid BUY entry as expected in previous articles.

This week, a bullish breakout above 1.3300 (50% Fibonacci Level) is needed to enhance bullish advance towards 1.3440 and 1.3550. Otherwise, the USD/CAD pair remains trapped within the current consolidation range (1.3000 - 1.3300).

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NZD/USD intraday technical levels and trading recommendations for January 20, 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 (Key-Level) which failed to provide sufficient bearish pressure on the pair.

Instead, bullish persistence above 0.7100 (Key-Level) allows further bullish advance towards 0.7250 (SELL-ENTRY) where bearish rejection and a valid SELL entry can be offered.

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Technical analysis of USD/JPY for January 20, 2017

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USD/JPY is expected to trade with bullish bias above 114.70. The pair stands firmly above its key support at 114.80 and remains on the upside, backed by its rising 50-period moving average. In addition, the relative strength index is above its neutrality level at 50.

The recent US economic data were robust. The Commerce Department reported the housing starts increased by 11.3% on month to seasonally adjusted annual rate of 1.23 million (vs. +10.1% to 1.20 million expected). Moreover, the Labor Department said the initial jobless claims decreased to 234,000 in the week ended January 14 (vs. 252,000 expected).

Hence, as long as 114.80 holds as a key support, look for a further rise to 115.60, and even to 116.00 as possible.

Recommendation:

The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. Therefore, long positions are recommended with the first target at 115.60 and the second one at 116.00. In the alternative scenario, short positions are recommended with the first target at 114.40 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 113.80. The pivot point is at 114.80.

Resistance levels: 115.60, 116.00 , 116.45

Support levels: 114.40 , 113.80, 113.40

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Technical analysis of USD/CHF for January 20, 2017

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USD/CHF is expected to extend its upside movement. The pair broke above its previous key resistance at 1.0050, which becomes a key support now, and accelerated on the upside. The upward momentum is further reinforced by its rising 20-period and 50-period moving averages. The relative strength index is bullish above its neutrality level at 50 and lacks downward momentum.

U.S. economic data released were robust. The Commerce Department reported that housing starts increased 11.3% on month to seasonally adjusted annual rate of 1.23 million (vs. +10.1% to 1.20 million expected). The Labor Department said initial jobless claims amounted to 234,000 in the week ended January 14 (vs. 252,000 expected).

As long as the key level at 1.0055 is support, look for a further upside toward 1.0120 and 1.0135 in extension.

Resistance levels: 1.0120, 1.0135, 1.0180

Support levels: 1.0030, 1.0010, 0.9975

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Technical analysis of NZD/USD for January 20, 2017

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NZD/USD is under pressure. The pair broke below its 20-period and 50-period moving averages, which play resistance roles now and maintain the downside bias, and accelerated on the downside. The relative strength index is capped by a bearish trend line and is below its neutrality level at 50. Additionally, 0.7205 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 toward 0.7115 and even 0.7090 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 0.7115. A break below this target will move the pair further downwards to 0.7090. The pivot point stands at 0.7205. 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 0.7225 and the second one at 0.7245.

Resistance levels: 0.7225, 0.7245, 0.7275

Support levels: 0.7115, 0.7090, 0.7060

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Daily analysis of major pairs for January 20, 2017

EUR/USD: There is a bullish signal on the EUR/USD. The EMA 11 is above the EMA 56 and the Williams' % Range period 20 is trying to slope upwards, after just leaving the overbought region. Further upwards movement is anticipated and the resistance lines at 1.0650, 1.0700 and 1.0750 would soon be tested.

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USD/CHF: There is a Bearish Confirmation Pattern on the USD/CHF 4-hour chart. The price has been going downwards since last week, and the support level at 1.0000 has been tested this week. That support level is important because it needs to be tested again and get breached to the downside. Price must go below it so that the current bearish signal can be saved; otherwise a strong rally would occur.

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GBP/USD: The GBP/USD pair is now in a bullish mode, and bulls have been able to hold price above the accumulation territory at 1.2250. The EMA 11 is above the EMA 56 and the RSI period 14 is above the level 50. The bullish mode would hold out as long as price does not go below the accumulation territory at 1.2100.

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USD/JPY: The USD/JPY pair has rallied this week, following the bearish attempt that was seen at the beginning of the week. There is still a Bearish Confirmation Pattern in the market, which would be rendered invalid only when price goes above the supply level at 116.50.

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EUR/JPY: This cross pair has already generated a strong bullish signal, for the EMA 11 has crossed the EMA 56 to the upside as the RSI period 14 is above the level 50. The recent rally has already overturned the bearish signal that used to be in the market. Now, the supply zones at 123.00, 123.50 and 124.00 could be tested.

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Technical analysis of GBP/JPY for January 20, 2017

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GBP/JPY is expected to extend its upside movement. The pair has formed a round bottom, and is staying above its resistance at 140.85. Both rising 20-period and 50-period moving averages should play support roles, while the relative strength index is also positively oriented. As long as 140.85 is not broken down, a further bounce is preferred with 142.20 and 143.00 as targets.

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 142.20 and the second one at 143.00. In the alternative scenario, short positions are recommended with the first target at 140.50 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 140.00. The pivot point is at 140.85.

Resistance levels: 142.20, 143.00, 143.75

Support levels: 140.50, 140, 139.15

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Global macro overview for 20/01/2017

Global macro overview for 20/01/2017:

One of the most influential rating agency, Standard & Poor's, just affirmed New Zealand AA foreign currency rating. The S&P justified the decision, saying New Zealand outlook reflects expectations that New Zealand will maintain or improve fiscal performance over a medium term. Moreover, New Zealand has monetary and fiscal flexibility, a resilient economy and institutions sensitive to swift and decisive policy measures, though its high external debt offsets these strengths. In conclusion, good news from S&P about New Zealand might soon find its reflection in financial markets.

Let's now take a look at the NZD/USD technical picture in the daily time frame. The bulls have managed to push the price just below the technical resistance at the level of 0.7241, but now it looks like the bear camp is trying to get the control back over this market. Any breakout below the technical support at the level of 0.7149 will confirm the strength of the bearish pressure and a daily candle close below it might increase the decline towards the level of 0.7044 in the near future.

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Global macro overview for 20/01/2017

Global macro overview for 20/01/2017:

The European Central Bank left the interest rates unchanged yesterday at the level of 0.0%. At the press conference that followed the interest rate decision, the ECB President Mario Draghi said, that the Eurozone's economic growth is unlikely to gain momentum and it still remains subdued. The main reason for this statement was the lack of structural reforms and bad fiscal policy that is not supporting the Eurozone's economic recovery. Nevertheless, Draghi said he expects the inflation to pick up in the coming months (mainly driven by the energy prices) and he hopes the core inflation will increase in the medium term as well. In conclusion, the interest rate decision was unchanged as widely expected and the press conference tone was mildly-hawkish, especially regarding the inflation expectations. Overall, nothing new from ECB at this meeting for market participants.

Let's now take a look at the EUR/USD technical picture in the 4H time frame. The bulls have managed to push the price higher to the level of 1.0719, just below the weekly pivot resistance at the level of 1.0742. The golden trend line is still providing support, but the characteristic of this move up looks more corrective than impulsive. As long as the golden trend line is not clearly violated, the bulls will still try to push the price higher.The next important resistance is seen at the level of 1.0874 and the next support is seen at the level of 1.0598.

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Intraday technical levels and trading recommendations for GBP/USD for January 20, 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.

On October 25, Bullish recovery was initiated around the price level of 1.2080. That is why, a bullish pullback was executed toward 1.2700-1.2750.

Risky traders considered this bullish pullback toward the price zone of 1.2700-1.2750 to be a valid SELL entry. All T/P levels were successfully reached.

On January 16, the bullish price action was expressed around the demand level of 1.2000. That's why, a bullish engulfing candlestick was expressed on Tuesday.

Initial bullish target is located around 1.2550 provided that early bullish breakout above 1.2430 is achieved.

Otherwise, the next bearish destination would be located around 1.1200 (Fibonacci Expansion 100%) if bearish momentum is resumed.

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Intraday technical levels and trading recommendations for EUR/USD for January 20, 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 further fall to occur at 1.0570 (demand level) where bullish rejection and a valid BUY entry were expressed on November 24.

Shortly after, the Fibonacci Expansion 100% (1.0825) constituted a recent supply level which offered a valid SELL entry on December 8.

Bearish persistence below the depicted demand level (1.0570) was expected to allow further decline towards 1.0220. However, significant bullish recovery was expressed around the price level of 1.0340 on January 3.

Bullish persistence above 1.0600 allows further bullish advance toward 1.0825 (Fibonacci Expansion 100%) where bearish rejection should be anticipated.

Bullish breakout above 1.0570-1.0600 was executed on January 12. Hence, the price level of 1.0600 now constitutes a recent demand level to be watched for bullish rejection if any bearish pullback occurs.

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Technical analysis of EUR/JPY for January 20, 2017

General overview for 20/01/2017:

The Elliott wave count suggests, that wave progression from the low at the level of 120.53 is in three waves, but it has an impulsive structure. The invalidation of this structure will come with the level of intraday support at 121.39 violation, but as long as this level is not hit, the outlook remains bullish. Currently, the market is unfolding the wave four triangle pattern as a part of the intraday corrective cycle. The projected target for wave -v- is at the level of 122.82.

Support/Resistance:

120.89 - Technical Support

122.01 - Weekly Pivot

122.41 - Intraday Support

122.82 - WR1

123.85 - Swing High

Trading recommendations:

The day traders with open buy orders should place the SL just below the triangle at the level of 122.27 and set the TP at the level of 122.82.

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Technical analysis of NZD/USD for January 20, 2017

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Overview:

  • The NZD/USD pair continues to move upwards from the levels of 0.7095 and 0.7157. Currently price is seen at 0.7157. The bias remains bullish in the nearest term testing 0.7238 or higher. The pair rose from the level of 0.7095 to a top around 0.7180. 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. 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). However, 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 because it represents a major support today.
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Technical analysis of USD/CAD for January 20, 2017

General overview for 20/01/2017:

The pair has broken above the 50% Fibo at the level of 1.3308 and now the bulls are trying to test the next resistance at the level of 1.3377. There are still two scenarios in this market and so far none of them has been invalidated. Importantly, there is a bearish divergence between the price and the momentum oscillator, which supports the bearish outlook for today as well.

Support/Resistance:

1.2883 - WS2

1.2994 - WS1

1.3143 - Weekly Pivot

1.3259 - WR1

1.3284 - Intraday Support

1.3358 - IntradayResistance

1.3377 - 61%Fibo

1.3408 - WR2

Trading recommendations:

Day traders who set the TP at the level of 1.3308 should have gained profit by now. Those who are still waiting for TP2 at the level of 1.3377, should move the SL for this trade to the level of 1.3283.

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Technical analysis of USD/CHF for January 20, 2017

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Overview:

  • The USD/CHF pair fell from the level of 1.0148 towards 1.0027. Now, the price is set at 1.0068. On the H4 chart, the resistance of USD/CHF pair is seen at the level of 1.0088 and 1.0148. It should be noted that volatility is very high so that the USD/CHF pair is still moving between 1.0088 and 0.9952 in coming hours. Moreover, the price spot of 1.0088 and 1.0148 remains a significant resistance zone. Therefore, there is a possibility that the USD/CHF pair will move downside and the structure of a fall does not look corrective. In order to indicate the bearish opportunity below 1.0088 and 1.0148, sell below 1.0088 with the first target at 0.9995. Additionally, if the USD/CHF pair is able to break out the bottom at 0.9995, the market will decline further to 0.9952 in order to test the weekly support 2. Also, it should be noedt that the third support is seen at 0.9891. However, it would also be sage to consider where to place a stop loss; this should be set above the second resistance of 1.0148.
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Technical analysis of USDX for January 20, 2017

The Dollar index bounced strongly yesterday after the comments made by ECB President Mario Draghi. However price never managed to break above the important cloud resistance we mentioned and this bounce was a perfect opportunity to sell the index again.

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The Dollar index formed an upper long shadow candlestick on the 4-hour chart when price reached the Ichimoku cloud resistance. Price got rejected and this reversal signal confirmed that the upward move was just a corrective wave inside a bigger downward move that started above 103.50. Price continues to make lower highs below the Ichimoku cloud and there is no divergence on the 4-hour chart that justifies trend change.

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Green line - long-term support

The weekly candle back tested the tenkan-sen (red line indicator) and got rejected. I continue to expect the Dollar index to move lower towards the kijun-sen (yellow line indicator) at 99. The weekly oscillators however point to much lower targets and even below the long-term support green trend line.

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Technical analysis of gold for January 20, 2017

Gold price so far has made a shallow correction as low as $1,194 where prices reached the 4-hour Ichimoku cloud support and bounced back above $1,200. Gold price could see $1,210-15 today but bulls need to be very cautious as a break below $1,194 will open the way for a push towards $1,180-70.

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Red lines - bullish channel

Gold price has broken out and below the bullish channel implying that Gold is in a corrective phase. This correction could push Gold price even towards $1,160 and still hold our bullish long-term scenario valid. Cloud support is at $1,194. If broken Gold price should move towards $1,180. Resistance is at $1,220.

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Gold price is testing daily cloud resistance. Price is trying to break inside the daily cloud. Price pulled back yesterday but the daily tenkan-sen (red line indicator) supported price. The oscillators are near overbought area but there is no divergence on the daily chart. Daily kijun-sen (yellow line indicator) is found at our important support of $1,160. Pull backs are to be bought. I do not expect Gold to make new lows below $1,122.The material has been provided by InstaForex Company - www.instaforex.com

Elliott wave analysis of EUR/NZD for January 20, 2017

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Wave summary:

The decline from 1.5235 continues to push lower and has tested support at 1.4750 (the low has been seen at 1.4735). It's clear that this decline is loosing momentum, but we need a break above minor resistance at 1.4927 to ease the downside pressure or we might risk a move even closer to 1.4720 and maybe even closer to 1.4654 before the corrective low is in place. This is one of the nasty things about second waves, they are lowed to correct 100% of the first wave, but they can never ever move below the start of wave 1, so we can test 1.4654, but not break below here.

A break above minor resistance at 1.4927 will ease the downside pressure and indicate that the correction is complete, but on a break above 1.5003 will confirm the corrective low is in place for the next impulsive rally closer to 1.5837.

R3: 1.5003

R2: 1.4927

R1: 1.4872

Pivot: 1.4835

S1: 1.4780

S2: 1.4735

S3: 1.4720

Trading recommendation;

We are long EUR from 1.4886 with stop placed at 1.4650. If you are not long EUR yet, the buy a break above 1.4972 or more conservatively a break above 1.5003 and use the same stop at 1.4650.

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Elliott wave analysis of EUR/JPY for January 20, 2017

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Wave summary:

We have seen a nice impulsive rally from 120.50 to 122.75 indicating that a new rally to above 124.09 is unfolding. Short term, we could see a minor set-back towards 121.75 before the next impulsive rally higher towards at least 123.97 and possibly even closer to 125.34 should be expected.

Our long-term target for wave v and 3 is still seen at 126.54.

R3: 123,73

R2: 122,93

R1: 122,75

Pivot: 122,41

S1: 122.26

S2: 122.05

S3: 121.75

Trading recommendation:

We are long EUR from 121.40 with stop placed at 120.45. If you are nor long EUR yet, then buy near 121.75 and use the same stop at 120.45

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Technical analysis of EUR/USD for Jan 20, 2017

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When the European market opens, some economic data will be released such as German PPI m/m. Today the US will not release any economic reports. So against this background, EUR/USD will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Breakout BUY Level: 1.0706.

Strong Resistance:1.0699.

Original Resistance: 1.0689.

Inner Sell Area: 1.0679.

Target Inner Area: 1.0654.

Inner Buy Area: 1.0629.

Original Support: 1.0619.

Strong Support: 1.0609.

Breakout SELL Level: 1.0602.

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 USD/JPY for Jan 20, 2017

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Today, Japan and the US will not release any economic reports. 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: 115.24.

Resistance 2: 115.01.

Resistance 1: 114.79.

Support 1: 114.52.

Support 2: 114.29.

Support 3: 114.07.

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 20, 2017

The index is hovering now around the 200 SMA area at H1 chart, looking to develop more bullish patterns across the board. However, USDX didn't manage to break above the key resistance level of 101.76, in a move that could open the doors to test the 102.46 level. If the support area of 101.03 gives up today, then another test of the 100.00 handle is likely to happen.

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H1 chart's resistance levels: 101.06 / 101.76

H1 chart's support levels: 101.03 / 100.00

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 101.03, take profit is at 100.00 and stop loss is at 102.05.

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

Daily analysis of GBP/USD for January 20, 2017

The pair holds gains above the 200 SMA on H1 chart, but the upside is limited by the strong resistance at the 1.2343 level. If GBP/USD attempts a rally above that area, we can expect a re-test of January 18th highs around 1.2416. However, the Cable is still within a very complex structure for the short term, as it's trapped inside a wide sideways range.

GBPUSDH1.png

H1 chart's resistance levels: 1.2343 / 1.2416

H1 chart's support levels: 1.2371 / 1.2291

Trading recommendations for today: Based on the H1 chart, buy (long) orders only if the GBP/USD pair breaks a bullish candlestick; the resistance level is at 1.2343, take profit is at 1.2416 and stop loss is at 1.2268.

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