Technical analysis of USD/CHF for January 23, 2017

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USD/CHF is under pressure. The pair recorded a succession of lower tops and lower bottoms since Jan 20 and is heading downwards. The downside momentum is further reinforced by its declining 20-period and 50-period moving averages, which play resistance roles and maintain the downside bias. The relative strength index is bearish and has broken below its 30% level. Additionally, 1.0015 is playing a key resistance role, which should limit the upside potential.

The U.S. dollar fell as Trump's inauguration speech still could not provide investors with clarity on his tax reform and fiscal spending plans. Trump's speech also reiterated protectionism which investors thought would hurt the dollar

As long as this key level holds on the upside, look for a further drop toward 0.9960 and even 0.9935 in extension.

Resistance levels: 1.0030, 1.0050, 1.0070

Support levels: 0.9950, 0.9935, 0.9900

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Analysis of EUR/NZD for January 23, 2017

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Recently, EUR/NZD has been upwards. As I expected, the price tested the level of 1.4947. Using the Ichimoku, I found potential upward continuation in EUR/NZD on the 15M time frame. The price is trading above Kijun and Tenkan sen, which is a sign that there is strength at the moment. I have placed Fibonacci expansion to find potential upward targets. I found Fibonacci expansion 61.8% at the price of 1.4985 and Fibonacci expansion 100% at the price of 1.5050. Watch for buying opportunities.

Fibonacci Pivot Points:

Resistance levels

R1: 1.4940

R2: 1.4980

R3: 1.5045

Support levels:

S1: 1.4815

S2: 1.4775

S3: 1.4710

Trading recommendations for today: watch for potential buying opportunities.

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Global macro overview for 23/01/2017

Global macro overview for 23/01/2017:

During the weekend, the OPEC's monitoring committee met to supervise and update the recent oil cut deal. Saudi Energy Minister Khalid al-Falih who spoke with the media following the meeting, said the implementation of the agreed cuts had been "fantastic" and he hopes for 100% compliance in February. Russian Energy Minister Alexander Novak also sounded positive noting that the results were above expectations. Moreover, the new body of control had been made to monitor the implementation, which is called the Technical Joint Committee (JTC). It will cooperate with the OPEC Secretariat in compiling production data. This data is due to be presented to the ministerial Monitoring Committee by the 17th of every month and the next JTC meeting will be in March in Kuwait.

Let's now take a look at Crude Oil technical picture on the 4H time frame. The bulls tried three times to break above 53.50 and failed. The price reversed back to the trading range between the levels of 53.50 and 50.90. The two recent higher lows at the levels of 50.68 and 50.90 might suggest the bulls did not say the last word. However, any break below this zone will result in an immediate drop to the key techncial support at the level of 49.57.

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Technical analysis of NZD/USD for January 23, 2017

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NZD/USD is expected to trade with a bullish bias. The pair broke above its 50-period moving average and is holding on the upside. The 20-period moving average is turning up and is playing support role. The relative strength index is supported by a rising trend line and is above its neutrality level at 50. As long as 0.7155 is support, look for a further upside toward 0.7225 and even 0.7245 in extension.

The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. Therefore, long positions are recommended with the first target at 0.7225 and the second one at 0.7245. In the alternative scenario, short positions are recommended with the first target at 0.7145 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 0.7115. The pivot point is at 0.7165.

Resistance levels: 0.7225, 0.7245, 0.7275

Support levels: 0.7145, 0.7115, 0.7090

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Technical analysis of GBP/JPY for January 23, 2017

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GBP/JPY is under pressure. The pair has broken below its 20-period and 50-period moving averages, and remains on the downside. Meanwhile, the relative strength index has been capped by a negative trend line. As long as 141.90 holds as the key resistance, the risk of a break below 140.50 is high.

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 140.50. A break below this target will move the pair further downwards to 140.05. The pivot point stands at 141.90. 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 142.65 and the second one at 143.20.

Resistance levels: 142.65, 143.20, 143.75

Support levels: 140.50, 140.05, 139.15

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Technical analysis of USD/JPY for January 23, 2017

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USD/JPY is under pressure. The pair is staying below its key resistance at 114.00 and remains on the downside. Moreover, the bearish cross between 20-period and 50-period moving averages has been identified. Furthermore, the relative strength index is capped by the descending trend line and is below its neutrality at 50.

To sum up, as long as 114.00 holds as resistance, look for a further drop to 113.15 and even 112.85 in extension.

Recommendation:

The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 113.15. A break below this target will move the pair further downwards to 112.85. The pivot point stands at 114. 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 114.40 and the second one at 114.80.

Resistance levels: 114.40, 114.80 , 115.15

Support levels: 113.15 , 112.85, 112.40

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Global macro overview for 23/01/2017

Global macro overview for 23/01/2017:

The UK Retail Sales data surprised market participants as they fell the most since April 2012. The Office for National Statistics reported that UK retail sales dropped 1.9% in December, worse than an expected 0.1% fall, while the November gain of 0.2% was revised down to –0.1%. This weak data will have an impact on the economic growth forecast for the last quarter of 2016. The reason behind this is the fact, that since June 2016 the British economy was growing mainly due to consumer spending. The second reason is a very high yearly shop price inflation that has reached 0.9%, the highest level since 2013. In conclusion, despite the good Chrismas sales period, major retailers are struggling as the sales are slowly diminishing, so the Q4 UK GDP report will be likely lower than market expectations.

Let's now take a look at EUR/GBP technical picture in the daily time frame. The recent lower low in the overall sequence might suggest the up trend is curretnly in a correcive cycle. The price is trading just at 100 DMA, just below the technical resistance at the level of 0.8672. The next technical support is seen at the level of 0.8446. If this level is broken, the next one is the all-important lower low at 0.8302.

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Gold analysis for January 23, 2017

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Recently, gold has been trading upwards. The price tested the level of $1,219.15. In the 4H time frame and using the Ichimoku cloud, I found that there is potential re-continuation of the upward trend. I found cross Tenkan sen-Kijun sen which is a sign for potential strength. According to the 1H time frame, I found that price is trading above Ichimoku cloud and that gold may go higher. Pay atention to the level of $1,219.50. If the price breaks the level of $1,219.50, Gold may test the level of $1,233.00. Watch for buying opportunities. The first target is set at the price of $1,219.15 and the second target is at $1,233.00.

Resistance levels:

R1: 1,215.75

R2: 1,217.30

R3: 1,219.75

Support levels:

S1: 1,210.80

S2: 1,209.30

S3: 1,206.80

Trading recommendations for today: Watch for buying opportunities.

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Technical analysis of USD/CAD for January 23, 2017

General overview for 23/01/2017:

Two possible counts are still valid as the wave progression continues on this market. The top for the wave 1/a had been established at the level of 1.3386, just above the 61% Fibo at the level of 1.3377. Currently, the market is unfolding an internal corrective cycle and it looks like the wave a of this correction had been made already. Moreover, the market might be in progress of head and shoulders pattern, but the right arm of this pattern hasn't been completed yet. Any break out above the level of 1.3386 again will invalidate the pattern, invalidate the main count and make the alternative count the correct one to follow.

Support/Resistance:

1.3018 - Technical Support

1.3137 - WS1

1.3189 - Technical Support

1.3252 - Intraday Support

1.3261 - Weekly Pivot

1.3386 - Intraday Resistance

1.3507 - WR1

Trading recommendations:

Day traders should consider opening sell orders only due to possible head and shoulders pattern unfolding. The SL for all open orders should be placed above the level of 1.3386 and TP should be placed at the level of 1.3189.

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Video Technical Analysis on EUR/USD for 23rd January 2017

We take an in-depth look on EUR/USD to see if there are any trading opportunities available for us to generate profits in this market. We explain clearly how we utilize a range of analytical approaches from Fibonacci retracements to Fibonacci extensions, price action and oscillators to determine such trading opportunities.

If you have any questions on other currency pairs or methods of technical analysis, feel free to leave a comment and I'll get back to you.

Join us and learn how to seize good trading opportunities through technical analysis!

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Technical analysis of EUR/JPY for January 23, 2017

General overview for 23/01/2017:

The top for the wave 1/a (green) has been established at the level of 122.94 and the market is not unfolding in an internal corrective cycle. The invalidation level for this cycle is the bottom of the wave (4) (blue) at the level of 120.53. The sharp decline towards the old weekend gap (marked on a chart as a gray rectangle) has been labeled as wave 2/b. Currently, the market is trading below the weekly pivot at the level of 122.14 and only an impulsive v-shape reversal from current levels above the wave 1/a top would indicate the corrective cycle is over and wave 3 (green) is in progress.

Support/Resistance:

123.74 - WR1

122.94 - Intraday Resistance

122.14 - Weekly Pivot

121.65 - Intraday Support

121.34 - WS1

120.53 - Invalidation Level

Trading recommendations:

Day traders should consider opening buy orders only due to uncompleted wave progression to the upside. The SL for all open orders should be placed below the level of 120.53 and TP should be left open for now.

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USD/JPY remain bearish

We remain bearish on USDJPY below 114.78 (Fibonacci retracement) with price reacting really nicely below our long-term descending resistance line. Our profit target is 113.60 (Fibonacci retracement, horizontal overlap support). Stochastic (21,5,3) is seeing strong resistance at 96% level.

Sell below 114.78. Stop loss at 115.71. Take profit at 113.60.

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AUD/USD remain bearish below major resistance

We remain bearish below major resistance at 0.7580 (Fibonacci retracement, Fibonacci projection, horizontal overlap resistance) and we expect a steep continued drop from this level to at least 0.7447 support (Fibonacci retracement, swing low support).

Stochastic (21,5,3) remain at 92% resistance and sees bearish divergence vs price signalling a reversal is fast approaching.

Sell below 0.7580. Stop loss at 0.7644. Take profit at 0.7447.

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USD/CHF profit target reached, time to turn bullish

Price dropped perfectly from our selling area and has reached our profit target. We turn bullish above 1.0000 support (Fibonacci projection, big figure, recent swing low) for a push up to 1.0077 (Fibonacci retracement, Fibonacci projection, descending resistance).

Stochastic (21,5,3) is seeing strong support above the 5% level.

Buy above 1.0000. Stop loss at 0.9959. Take profit at 1.0077.

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EUR/USD profit target reached, prepare to turn bearish

EUR/USD made a push up towards our profit target. We now turn bearish below strong resistance at 1.0733 (Fibonacci projection, Fibonacci retracement) for a push down to 1.0623 (Fibonacci retracement, recent swing low). Stochastic (21,5,3) is seeing strong resistance at 88%.

Sell below 1.0733. Stop loss at 1.0803. Take profit at 1.0634.

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Technical analysis of USDX for January 23, 2017

As expected, the Dollar index got rejected at the 101.60 resistance where the Ichimoku cloud was formed. The rejection has pushed the index towards 100.20 for a new lower low. Remember from our last analysis that since the latest low was confirmed by the RSI, a new low was expected.

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Blue lines - bearish channel

The Dollar index remains in a bearish trend inside the bearish blue channel and below the Ichimoku cloud resistance. A reversal could be expected once price reaches the lower channel boundary near 99.70. Resistance is at 101.50. If broken, we should expect the Dollar index to start a new up trend for new highs.

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Green line - long-term support trend line

Last week I said that the rejection at the tenkan-sen (red line indicator) would be a bearish sign. I could see this downward move continue lower towards the kijun-sen (yellow line indicator) but Dollar bears should also use tight stops. Another early week bounce should not be ruled out.

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Technical analysis of gold for January 23, 2017

Gold price bounced strongly towards its recent highs but what I see is a backtest of the broken channel. Price however remains in a bullish short-term trend as long as we are trading above $1,195.

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Red lines -bullish channel

Gold price continues to trade above the 4-hour Ichimoku cloud. Support is at $1,200 and at $1,195. If this support is broken, we should expect a pullback towards $1,180 at least if not at $1,160. Resistance is at $1,218. If broken, we could see a continuation of the up trend towards $1,230-40.

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On a weekly basisGold price is still struggling at the lower cloud boundary at $1,220. This is a very important resistance level. A rejection from this area will push Gold towards $1,160. This is my preferred scenario before the next upward move towards $1,300-$1,400.The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of GBP/USD for January 23, 2017

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Overview:

  • On the four-hours chart, the GBP/USD pair continues moving in a bullish trend from the support levels of 1.2287 and 1.2380. Currently, the price is in a bullish channel. This is confirmed by the RSI indicator signaling that we are still in a bullish trending market. As the price is still above the moving average (100), immediate support is seen at 1.2380, while the weekly strong support is found at 1.2287. Consequently, the first support is set at the level of 1.2380. The market is likely to show signs of a bullish trend around the spot of 1.2380 - 1.2450. In other words, buy orders are recommended above the 1.2450 level with the first target at the level of 1.2605. Furthermore, if the trend is able to break through the first resistance level of 1.2605, we will see the pair climbing towards the double top (1.2774) to test it in coming days (this week). Thus, the market is indicating a bullish opportunity above the support levels of 1.2380 - 1.2450, for that the bullish outlook remains the same as long as the 100 EMA is headed to the upside. It would also be wise to consider where to place a stop loss; this should be set below the second support of 1.2287.
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Technical analysis of EUR/USD for January 23, 2017

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Overview:

  • The EUR/USD pair is trading around the area of 1.1280 - 1.1233. Today, the level of 1.1223 represents a weekly pivot point in the H1 time frame. The pair has already formed minor resistance at 1.1308 and the strong resistance is seen at the level of 1.1388 because it represents the weekly resistance 1. So, major resistance is seen at 1.1388, while immediate support is found at 1.1223. If the pair closes below the weekly pivot point of 1.1223, the EUR/USD pair may resume it movement to 1.1103 to test the weekly support 1. From this point, we expect the EUR/USD pair to move between the levels of 1.1308 and 1.1103. Equally important, the RSI is still calling for a strong bearish market. As a result, sell below the weekly pivot point of 1.1223 with targets at 1.1103 and 1.1057 in order to form a double bottom. On the other hand, stop loss should always be taken into account, accordingly, it will be of beneficial to set the stop loss above the last bullish wave at the level of 1.1400 because the strong resistance has been already found at 1.1388.
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Elliott wave analysis of EUR/NZD for January 23, 2017

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EUR/NZD - Daily

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EUR/NZD - 4-Hourly

Wave summary:

The correction in wave ii/ is likely to complete near the 88.6% corrective target seen at 1.4720 and wave iii/ higher towards 1.5837 is now unfolding. We have seen the first minor indication that a corrective low is in place, with the break above minor resistance at 1.4927, but we need more evidence to confirm this is the case. Therefore we would like to see resistance at 1.5003 and more importantly resistance at 1.5193 broken too, which will confirm the rally towards 1.5837 as the next target.

R3: 1.5172

R2: 1.5003

R1: 1.4945

Pivot: 1.4914

S1: 1.4857

S2: 1.4830

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, then buy a break above 1.4943 or upon 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 23, 2017

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EUR/JPY - Daily

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EUR/JPY - 4 Hourly

Wave summary:

We are currently looking for a minor correction in the red wave ii towards 121.46 before the next impulsive rally in the red wave iii can be expected towards 125.37. We are now in the final impulsive rally of the wave 3 towards the ideal target seen at 125,54 from where a larger correction is expected.

To indicate that the correction in the wave ii is completed, a break above minor resistance at 122.23 and more importantly a break above resistance at 122.87 is needed.

R3: 122.87

R2: 122.68

R1: 122.23

Pivot: 121.83

S1: 121.46

S2: 121.28

S3: 120.89

Trading recommendtion:

We are long EUR from 121.40 with stop placed at 120.45. If you don't have any long positions yet, then buy near 121.46 or upon a break above 122.23 and use the same stop at 120.45.

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Technical analysis of EUR/USD for Jan 23, 2017

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When the European market opens, some Economic Data will be released, such as Consumer Confidence. 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: 1.0775.

Strong Resistance:1.0769.

Original Resistance: 1.0758.

Inner Sell Area: 1.0747.

Target Inner Area: 1.0722.

Inner Buy Area: 1.0697.

Original Support: 1.0686.

Strong Support: 1.0675.

Breakout SELL Level: 1.0669.

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 23, 2017

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In Asia, Japan will release the All Industries Activity m/m, and the US will not release any Economic Data today. So, there is a probability the USD/JPY will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Resistance. 3: 114.13.

Resistance. 2: 113.91.

Resistance. 1: 113.69.

Support. 1: 113.41.

Support. 2: 113.19.

Support. 3: 112.97.

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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Daily analysis of major pairs for January 23, 2017

EUR/USD: The EUR/USD was able to maintain its bullishness last week. There is a Bullish Confirmation Pattern in the 4-hour chart, and price is currently testing the resistance line at 1.0700. The resistance line would be broken to the upside this week as price targets another resistance lines at 1.0750 and 1.0800.

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USD/CHF: The USD/CHF was able to maintain its bearishness last week. There is a Bearish Confirmation Pattern in the 4-hour chart, and price is currently below the resistance level at 1.0050. The great psychological level at 1.0000 is still a formidable threat to the current bearish outlook, and price should be able to break it to the downside this week, so that the bearish movement can continue.

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GBP/USD: The Cable rallied last week and consolidated till the end of the week, remaining volatile throughout the week. Things have turned bullish in the short-term, and it is anticipated that price would go upwards by at least, 200 pips this week. Therefore the distribution territories at 1.2400, and 1.2450 and 1.2500.

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USD/JPY: There are conflicting signals in the USD/JPY 4-hour chart. The outlook on the market is bearish, but right now, there is a kind of hesitation in the market. This week, price could go seriously upwards or further downwards to emphasize the recent bearish outlook. Whatever would happen, this week would tell.

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EUR/JPY: There is a "buy" signal in this market. Price has gone upwards - mainly because the EUR is strong. Since movements of JPY pairs would be determined by whatever happens to other currencies, this market would continue to go upwards as long as EUR is strong. The Supply zones at 123.00, 123.50 and 124.00 could be reached.

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USD/CAD intraday technical levels and trading recommendations for January 23, 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 toward 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 23, 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 (Key-Level) which failed to provide sufficient bearish pressure on the pair.

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

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Intraday technical levels and trading recommendations for GBP/USD for January 23, 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, 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 23, 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.

analytics58853095c5ca6.png

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 toward 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.

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

Daily analysis of USDX for January 23, 2017

USDX was dominated by the bears during Friday's session, as Trump's words didn't help to provide bullish momentum across the board. So far, the index is consolidating below the 200 SMA and it's possible to see a decline toward 100.00, where a breakout should deliver more bearish pressure. Without that move, USDX will remain trapped in a sideways range.

USDXH1.png

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 23, 2017

GBP/USD performed a rebound around 1.2272 ahead of Trump's inauguration speech and after that, we witnessed a USD sell-off which helped the pair to recover above the 1.2350 level. Next resistance lies around 1.2416 and if GBP/USD manages to break above that zone, another rally to test the 1.2472 is likely possible. MACD indicator's position is supporting that scenario.

GBPUSDH1.png

H1 chart's resistance levels: 1.2416 / 1.2472

H1 chart's support levels: 1.2328 / 1.2272

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 1.2416, take profit is at 1.2472 and stop loss is at 1.2359.

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