EUR/NZD analysis for February 02, 2017

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Recently, EUR/NZD has been trading upwards. The price tested the level of 1.4865. According to the 15M time frame, I found hidden bearish divergence on the moving average and head-and-shoulders formation. My advice is to watch for selling opportunities. Downward targets are set at the levels of 1.4745 and 1.4670.

Fibonacci Pivot Points:

Resistance levels

R1: 1.4780

R2: 1.4800

R3: 1.4850

Support levels:

S1: 1.4690

S2: 1.4660

S3: 1.4620

Trading recommendations for today: watch for potential selling opportunities.

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Gold analysis for February 01, 2017

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Recently, gold has been trading downwards. The price tested the level of $1,202.64. According to the 30M time frame, I found a broken upward channel, which is a sign for a potential downward price. My advice is to watch for potential selling opportunities. There is a broken support live on RSI, which is another sign of weakness. I placed Fibonacci to find potential downward target and I got Fibonacci retracement 61.8% at the price of $1,194.30.

Resistance levels:

R1: 1,213.70

R2: 1,218.00

R3: 1,226.80

Support levels:

S1: 1,197.50

S2: 1,192.90

S3: 1,184.55

Trading recommendations for today: Watch for potential selling opportunities.

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Daily analysis of major pairs for February 1, 2017

EUR/USD: In spite of the bearish correction that was witnessed on this pair, price has resumed another bullish walk. The EMA 11 is above the EMA 56 and the Williams' % Range period 20 is now in the overbought region. This means that, while a pullback is a possibility, price might likely walk further northwards.

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USD/CHF: The currency trading instrument is bearish in the outlook as price has gone further downwards this week. There is a Bearish Confirmation Pattern on the chart and further downwards movement is expected since USD is facing challenges on two fronts: a strong EUR and a strong CHF.

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GBP/USD: The downwards movement that was seen on Monday and Tuesday has proven to be a good opportunity to go long, in conjunction with the extant bullish trend. Price is currently above the accumulation territory at 1.2600, going towards the distribution territories at 1.2650 and 1.2700. These are the targets for the week.

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USD/JPY: The USD/JPY pair went down by 250 pips this week, reaching a low of 112.07. The current outlook on the market is bearish and the upward bounce may turn out to be another opportunity to sell. Price has reached a low of 112.07, and it may reach it again. That is the target for the rest of the week.

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EUR/JPY: The movement of EUR/JPY was quite similar to the movement of USD/JPY. The market went down on Monday and Tuesday (amid a considerable amount of volatility), and then started moving upwards. The bias on the market is essentially neutral and a movement above the supply zone at 116.00 would result in a bullish signal, while a movement below the demand zone at 120.00 would result in a bearish signal.

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Technical analysis of USD/JPY for Feburary 01, 2017

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USD/JPY is expected to trade with a bullish bias The pair broke above its 20-period and 50-period moving averages and accelerated to the upside. The upward momentum is further reinforced by its rising 20-period and 50-period moving averages, which play support roles and maintain the upside bias. The relative strength index is bullish above its neutrality level at 50 and lacks downward momentum.

As long as 112.60 is support, look for a further rise towards 113.95 and even 114.20 in extension.

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 113.95 and the second one at 114.20. In the alternative scenario, short positions are recommended with the first target at 112.40 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 112.05. The pivot point is at 112.60.

Resistance levels: 113.95, 114.20, 114.50 Support levels: 112.40, 112.05, 111.00

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Technical analysis of USD/CHF for February 01, 2017

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Overview:

  • The USD/CHF pair continued to move downwards from the level of 0.9960. Since yesterday, the pair has falled from the level of 0.9960 (the level of 0.9960 coincides with the ratio of 38.2% Fibonacci Expansion) to the bottom around the spot of 0.9890. In consequence, the USD/CHF pair broke support at the level 0.9960, which turned into strong resistance at the level of 0.9960. In the H1 time frame, the level of 0.9960 is expected to act as major resistance today. Currently, the price is moving in a bullish channel. This is confirmed by the RSI indicator signaling that we are still in a bullish market. The price is still below the moving average (100). From this point, we expect the USD/CHF pair to continue moving in the bearish trend from the resistance levels of 0.9960 and 0.9922 towards the target level of 0.9860. If the pair succeeds in passing through the level of 0.9860, the market will indicate the bearish opportunity below the level of 0.9860 so as to reach the second target at 0.9830. Moreover, if the USD/CHF pair is able to break out the level of 0.9830, the market will decline further to 0.9800.
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Technical analysis of NZD/USD for February 01, 2017

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Overview:

  • The support level for the NZD/USD pair is seen at 0.7261. The pair has formed a double bottom at 0.7221.
  • According to previous events, the double bottom also coincides with the major support this week.
  • Additionally, the RSI is still calling for a strong bullish market as well as the current price is also above the support levels of 0.7261 and 0.7221.
  • It will be advantageous to buy above the support area of 0.7261 with the first target at 0.7312 so as to test the double top in the H1 chart.
  • Additionally, if the pair breaks the price of 0.7312, then it will continue towards 0.7350 with a view to test the weekly resistance 1.
  • However, the stop loss has always been taken into account. Thus, it will be useful to set it below the support at the level of 0.7221.
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Technical analysis of USDX for February 1, 2017

The Dollar index made new lows yesterday as the Dollar was in the center of selling pressures after remarks made for the fx markets by POTUS Donald Trump. Technically speaking, the decline either ended yesterday or there is small room to the downside left, at least for the short term.

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Red lines - downward sloping wedge

The Dollar index got rejected at the cloud resistance and at the downward sloping trend line. The RSI is diverging. The stochastic is oversold and turning upwards. Price has formed a bullish wedge. Resistance is at 100.80. Breaking above it will open the way for a bounce towards 102.

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Green line - trend line support

On a weekly basis I still favor the scenario that the entire upside move is not over and incomplete. However this will change if price overlaps the high of wave 1 at 97.50. Price is still holding above the kijun-sen (yellow line indicator). The deeper the pullback now...the worst for the long-term picture of the index.

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Technical analysis of gold for February 1, 2017

Gold price has moved higher yesterday due to a weaker Dollar following remarks made by POTUS Donald Trump. Gold however did not make a new higher high above $1,220. The short-term bearish scenario is still open with a pull back towards $1,160.

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Red line - short-term support trend line

Blue line- bearish divergence

Gold price has broken above the Ichimoku cloud on the 4-hour chart. Price is still diverging (RSI) and at overbought levels (Stochastic). Bulls need to break above $1,220 to move higher towards $1,285. However I favor a pull back at least towards $1,200. $1,180 is important short-term support. If broken we can see Gold near $1,160-40.

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On a weekly basis Gold price remains below the lower cloud boundary. The rejection levels from last week are being tested. I believe Gold will eventually pull back lower towards $1,160-40 to complete the corrective pattern we expect. Next weekly resistance if $1,220 is broken is at $1,250.The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of USD/CHF for Feburary 01, 2017

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USD/CHF is under pressure below its key resistance at 0.9925 and is consolidating on the downside. The declining 50-period moving average suggests that the pair still has potential for a further drop. The relative strength index is below its neutrality level at 50 and lacks upward momentum.

On Tuesday, U.S. stocks remained under pressure, dragged by losses in transportation, technology and financial shares. Investors also tried to assess how President Donald Trump's new policies would drive economic growth.

The U.S. dollar nose-dived as Trump's administration voiced again its preference for a weaker currency. Peter Navarro, Trump's top trade adviser, said in a newspaper interview that the under-valued euro gives Germany an edge over the U.S. and its European Union partners. Later, at the end of a meeting with top drug-firm executives, Trump criticized China and Japan for taking advantage of the U.S. by devaluing their currencies.

Additionally, the upward potential should be limited by its key resistance at 0.9925. As long as this key level holds on the upside, look for a further downside to 0.9880 and even 0.9865 in extension.

Resistance levels: 0.9965, 1.000, 1.0015

Support levels: 0.9860, 0.9860, 0.9815

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Technical analysis of NZD/USD for Feburary 01, 2017

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NZD/USD Intraday: further downside. The pair broke below its previous support at 0.7310, which becomes a resistance now. Additionally, the prices also broke below its 20-period and 50-period moving averages as well as the lower boundary of the Bollinger Band, which could signal the continuation of bearish acceleration. The relative strength index is bearish below its neutrality level at 50 and is heading downwards. As long as 0.7295 is resistance, look for a further drop to 0.7245 and even 0.7230 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 0.7245. A break below this target will move the pair further downwards to 0.7230. The pivot point stands at 0.7295. 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 0.7315 and the second one at 0.7345.

Resistance levels: 0.7315, 0.7345, 0.7375

Support levels: 0.7245, 0.7230, 0.7200

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Technical analysis of GBP/JPY for Feburary 01, 2017

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GBP/JPY is expected to trade with a bullish bias. The pair broke above its 20-period and 50-period moving averages and accelerated on the upside. The rising 20-period and 50-period moving averages are playing support roles and maintain the upside bias. The relative strength index stands firmly above its neutrality level at 50 and lacks downward momentum. As long as 141.60 holds as support, look for a further rise towards 143.00 and even 143.65 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 143.00 and the second one at 143.65. In the alternative scenario, short positions are recommended with the first target at 141.20 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 140.75. The pivot point is at 141.60.

Resistance levels: 143.00, 143.65, 144.15

Support levels: 141.20, 140.75,140.00

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USD/CAD intraday technical levels and trading recommendations for February 1, 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 February 1, 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).

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.

Bullish persistence above 0.7100 allowed further bullish advance toward 0.7250-0.7350 (Sell-Zone) where a valid SELL entry can be offered if enough bearish pressure is maintained (Note the bearish engulfing daily candlestick of Thursday).

On the other hand, bullish closure above 0.7350 liberates a quick bullish movement towards 0.7450.

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Intraday technical levels and trading recommendations for GBP/USD for February 1, 2017

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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).

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 was expected near 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, a bullish engulfing candlestick was expressed around the demand level of 1.2000. That's why, another bullish breakout above 1.2430 was initiated.

The next bullish target is located around 1.2750 where bearish rejection should be expected.

On the other hand, the next bearish destination would be located around 1.1200 when bearish momentum is resumed.

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Intraday technical levels and trading recommendations for EUR/USD for February 1, 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.

In the longer term, the level of 0.9450 remains a projected target if the current monthly candlestick achieves 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) enhanced the bearish momentum toward the price level of 1.1000 (Key-Level 1).

Bearish persistence below 1.0825 (Key-Level 2) allowed further decline toward 1.0570 (demand level) where evident bullish rejection was 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 allowed further bullish advance toward 1.0825-1.0850 (Fibonacci Expansion 100%) where bearish rejection and a valid SELL entry can 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/USD for Feb 01, 2017

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When the European market opens, some Economic Data will be released, such as EU Economic Forecasts, Final Manufacturing PMI, German Final Manufacturing PMI, French Final Manufacturing PMI, Italian Manufacturing PMI, and Spanish Manufacturing PMI. The US will release the economic data, too, such as Federal Funds Rate, FOMC Statement, Total Vehicle Sales, Crude Oil Inventories, ISM Manufacturing Prices, Construction Spending m/m, ISM Manufacturing PMI, Final Manufacturing PMI, and ADP Non-Farm Employment Change, so, amid the reports, EUR/USD will move in a medium to high volatility during this day.

TODAY'S TECHNICAL LEVEL:

Breakout BUY Level: 1.0846.

Strong Resistance:1.0839.

Original Resistance: 1.0829.

Inner Sell Area: 1.0819.

Target Inner Area: 1.0794.

Inner Buy Area: 1.0769.

Original Support: 1.0759.

Strong Support: 1.0749.

Breakout SELL Level: 1.0742.

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 Feb 01, 2017

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In Asia, Japan will release the Final Manufacturing PMI data, and the US will release some Economic Data, such as Federal Funds Rate, FOMC Statement, Total Vehicle Sales, Crude Oil Inventories, ISM Manufacturing Prices, Construction Spending m/m, ISM Manufacturing PMI, Final Manufacturing PMI, and ADP Non-Farm Employment Change. So, there is a probability the USD/JPY will move with medium to high volatility during this day.

TODAY'S TECHNICAL LEVEL:

Resistance. 3: 113.57.

Resistance. 2: 113.35.

Resistance. 1: 113.13.

Support. 1: 112.86.

Support. 2: 112.63.

Support. 3: 112.41.

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 February 01, 2017

Trumponomics is still leading the US dollar index's moves across the board, as yesterday the US President Donald Trump mentioned FX devaluation and that helped to fuel the bears in USD, currently testing the support level of 99.46. With a breakout below that zone, we can expect another leg lower to test the 98.98 level, while a rebound should be limited by the 100.00 psychological area.

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H1 chart's resistance levels: 99.80 / 100.36

H1 chart's support levels: 99.46 / 98.98

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 99.46, take profit is at 98.98 and stop loss is at 99.95.

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Daily analysis of GBP/USD for February 01, 2017

The pair had a bullish momentum dominating its overall bias during Tuesday, as it managed to rebound above the support zone of 1.2420 and the 200 SMA at H1 chart. Next target to the upside is placed around 1.2645, where a breakout higher should expose the 1.2718 level. Yesterday's move gave us a good idea of what could happen after Thursday's BoE meeting, but dovish words should weigh on GBP/USD in order to re-test the 1.2400 handle.

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H1 chart's resistance levels: 1.2645 / 1.2718

H1 chart's support levels: 1.2527 / 1.2420

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 1.2645, take profit is at 1.2718 and stop loss is at 1.2576.

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Daily analysis of USD/JPY for January 31, 2017

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Overview

The USD/JPY pair broke 113.97 level and settled below it, making the recently suggested positive scenario invalid. The price resumed its decline and attempted to return to the bearish channel, pressured by the EMA50. Therefore, we suggest the bearish bias in the upcoming sessions. The targets begin at 112.55 followed by 110.55. On the other hand, breaching the level of 113.97 will reactivate the positive scenario with the main target lying at 115.60. The expected trading range for today is between 112.50 support and 114.20 resistance.

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Daily analysis of Gold for January 31, 2016

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Overview

Gold price opened today's trade with the obvious bullish bias to breach 1,197.10 level and settled above it. This enables the positive scenario on the intraday and short-term basis, paving the way to head towards the recently recorded top at 1,218.55 as the nearest target. Therefore, the bullish trend will be suggested in the upcoming sessions supported by the EMA50, conditioned by the price stability above 1,197.10 level, as breaking this level might push the price to test 1,183.83 areas again. The expected trading range for today is between 1,190.00 support and 1,218.55 resistance.

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Daily analysis of silver for January 31, 2017

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Overview

Silver price has been fluctuating within a tight range since yesterday. Stochastic managed to get rid of its negativity and started providing positive signals. It means that the bullish trend can resume in the upcoming sessions, with the first target lying at 17.43 level. Therefore, our bullish overview remains valid on the intraday and short term basis. Breaching 17.43 level will extend the bullish wave to reach 18.30, while the price needs to hold above 16.56 level to achieve the suggested targets. The expected trading range for today is between 16.95 support and 17.43 resistance.

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Daily Video Analysis on AUD/JPY - 31st January 2017

We take an in-depth look on AUD/JPY to see if there are any trading opportunities available for us to trade off and generate potential profits from. 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.

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

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