Daily analysis of USDX for February 10, 2017

The index is resuming the bullish bias across the board, as it targets levels above the 101.00 handle. As we have noted in past analysis, USDX may rally toward 101.43, where a breakout should open the doors to visit the 102.39 level. However, because of Trump-Abe meeting, we can witness some volatility ahead of weekend and the US Dollar could plumment toward the 100.00 psycholgical level.

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H1 chart's resistance levels: 101.43 / 102.38

H1 chart's support levels: 100.01 / 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 100.01, take profit is at 98.98 and stop loss is at 101.03.

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Daily analysis of GBP/USD for February 10, 2017

The pair is struggling to consolidate above the 200 SMA at H1 chart and it's possible that we could see another decline toward 1.2414. It seems that the bears are gathering momentum to extend the leg to lower levels, but to validate such scenario, we should see a breakout below the 1.2414 level. MACD indicator is supporting the bearish bias in the short-term.

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H1 chart's resistance levels: 1.2561 / 1.2645

H1 chart's support levels: 1.2475 / 1.2414

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 1.2561, take profit is at 1.2645 and stop loss is at 1.2480.

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Daily analysis of GBP/USD for February 10, 2017

The pair is struggling to consolidate above the 200 SMA at H1 chart and it's possible that we could see another decline toward 1.2414. It seems that the bears are gathering momentum to extend the leg to lower levels, but to validate such scenario, we should see a breakout below the 1.2414 level. MACD indicator is supporting the bearish bias in the short-term.

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H1 chart's resistance levels: 1.2561 / 1.2645

H1 chart's support levels: 1.2475 / 1.2414

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 1.2561, take profit is at 1.2645 and stop loss is at 1.2480.

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GOLD Fundamental Analysis February 10, 2017

GOLD continued it bullish counter move from the late December 2016, and continuing the bullish trend in non-volatile manner after massive sell off in 2016. Yesterday, USD had some pressure after the Unemployment claims positive report which resulted the price to proceeding down toward 1,218.91. In few weeks, Trump will be revealing the tax plan where the increase in tax on assets may result to fall in GOLD again. As there is no hint of increase of rate hike in USD as of Federal Reserve President Charles Evans speech, so far it is expected that without any intervention from Trump with his new plans on assets like GOLD, GOLD is expected to show some bullish momentum against the USD.

Now let us look at the technical view, currently, market is trying to retest the support zone between 1195.80 to 1218.91. If the price rejects the bears in this support zone with any daily candle we will be looking forward to buy with a target toward 1,245 as first target and 1,299 as second target for the bullish move. On the other hand, if the price breaks and closes below the lower boundary of support zone i.e. 1,195.80, the bullish bias will be changed to bearish and we will target 1,118 as the downward target in this pair.

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Trading plan for Gold for February 10, 2017

Technical outlook:

A 4H chart view has been presented here to understand the wave structure since December 15, 2016. The yellow metal has formed a meaningful bottom at $1,122.00 level around December 15, 2016, and since then has rallied through $1,245.00 level making a series of higher highs and higher lows as seen here. According to the most probable wave counts, the metal might has completed an impulse (5 waves) at $1,218, labelled as wave 1 here. Furthermore an a-b-c expanded flat was terminated at $1,180 level, labelled as wave 2. The metal looks to have also completed the first leg of wave 3 at $1,245.00 level, labelled as wave 1. If this wave count holds to be true, a 3 wave corrective drop should be followed now, which can terminate around $1,205.00 level, which is labelled as Buy1 here. As an alternative count, it is possible that the metal can retrace the entire rally between $1,122.00 through $1,245.00 and find support at $1,170 level, which is labelled as Buy2 here. Immediate support is seen at $1,205.00, followed by $1,180.00 level, while interim resistance is at $1,245.00 level.

Trading plan:

The intermediary trend looks to be down in a corrective manner. Hence buying on dips remains a favored trade plan and strategy going forward. Aggressive traders might want to trade counter trend by selling around $1,230.00/35.00 levels with stop at $1,248.00 and targeting $1,205.00 level. A conservative strategy is:

Remain flat for now, buy at $1,205 and also add further at $1,170.00, stop at $1,122.00, targeting $1,375 plus.

Fundamental outlook:

Gold should remain under pressure in the short term due to the US Dollar strength also tax cut hopes may bring it lower, in line with the above Technical expectations. News to be watched out today should be Canadian Unemployment Rate (6.9%) at 08:30 AM EST and Michigan Confidence at 10:00 AM EST.

Good luck!

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GBP/USD Fundamental Analysis February 10, 2017

GBP/USD is already in maximum volatile situation since the end of January, and still the volatility exists in this pair due to BREXIT process. Yesterday, the bulls in the pair was rejected after the Unemployment Claims report came positive at 234k which was forecasted 249k. The market had a good leap downwards after getting closer to 1.26 level. In this pair, currently, there is no currency with a stronger momentum to take out the other one but as of a rejection with a massive sell pressure USD is expected to get much stronger in the recent moves. Today GBP had Manufacturing Production report which was forecasted 0.3% but the actual result was 2.1% which was far better than expected. The news did form a spike in the market but the sellers are said to take control again to take the GBP/USD to a much lower support toward 1.2420 level again.

Now let us look at the technical view, yesterday, with a massive selling pressure, the price dropped below the resistance area again signaling the prior bullish move as a false break. Currently price is below 1.2515-50 resistance area and it is expected that as long as market remains below this resistance area we can target 1.2420 as next support.

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Trading plan for 10/02/2017

Trading plan for 10/02/2017:

At the end of the trading week, there will be a lot of economic releases during the American trading session. Two of them will catch the attention of the global investors, i.e.Unemployment Rate from Canada and the Preliminary University of Michigan Consumer Sentiment reading. For commodity traders, there is important release regarding Baker Hughes U.S. Rig Count.

01:30 pm GMT - Unemployment Rate and Employment Change from Canada

The market participants expect the unemployment rate to remain steady at the level of 6.9%, just as a month ago. The employment change is expected to decrease -10.3K after 53.k increase a month ago. The Canadian job market had been very stable during recent years, so that very conservative estimates are no surprise here.

The volatility at the USD/CAD pair might be quite high during the news release, so good plan is needed to trade at the market today. An attempt to break below the 200-period daily moving average in USD/CAD was short-lived as a broader Dollar rally has lifted the pair higher. Despite the advance in North American trading, the Loonie has shown inherent strength as the currency has been the only one among the majors that has not posted a loss against the Greenback. On the intraday H1 chart, the most important level is the dynamic resistance provided by the golden trend line, so if the data will be in line with expectations or better than expected, then the market should reverse lower toward the support at the level of 1.3093 (red arrows scenario). Any worse than expected data will cause a rally toward the level of 1.3211 again (green arrows scenario).

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03:00 pm GMT - The Preliminary UoM Consumer Sentiment Indicator

Since April last year the sentiment among the US consumers is steady floating around the 100 level and this time the expectations are again quite similar than the statistical mean. The drop to 97.5 from 98.5 that is being expected by the market participants is virtually small and is still in the standard deviation range. The personal consumer confidence in economic activity remains steady in the US so far.

The most affected pair during the news release will be EUR/USD and if the sentiment reading will be significantly below the expectations ( 2x the standard deviation, which is around 8 points), then the EUR/USD might spike higher toward the next technical resistance at the level of 1.0704 (green arrows scenario). If the sentiment reading will be in line with expectations or significantly better, the EUR/USD pair will move even lower in order to test the next support at the level of 1.0619 (red arrows scenario).

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Market snapshot - President Donald Trump recent comments

Comments from President Donald Trump sparked Dollar demand as he signaled that an announcement would be made regarding tax reforms. Trump indicated the announcement is to be made in two to three weeks and stated it would be "phenomenal in terms of tax."

The trade-weighted Dollar index dipped as low as 100.06 earlier today but has recovered toward this week's highs near 101.02 resistance. Any violation of this level would make the bulls in control over this market and they will eye the next technical resistance at the level of 101.73. The bias is to the upside as long as the lower low at the level of 99.22 is not clearly violated.

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EUR/NZD analysis for February 10, 2017

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Recently, the EUR/NZD pair has been trading sideways at the price of 1.4820. According to the 15M time frame, I found hidden bullish divergence and potential bullish flag. My advice is to watch for buying opportunities if the price breaks bullish flag. Targets are set at the price of 1.4860 and 1.4960. Trend is bullish.

Fibonacci pivot points:

Resistance levels:

R1: 1.4855

R2: 1.4890

R3: 1.4950

Support levels:

S1: 1.4740

S2: 1.4700

S3: 1.4645

Trading recommendations for today: watch for buying opportunities.

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Global macro overview for 10/02/2017

Global macro overview for 10/02/2017:

The RBA Monetary Policy Statement released by the Reserve bank of Australia reviews economic and financial conditions determines the appropriate stance of monetary policy and assesses the risks to its long-run goals of price stability and sustainable economic growth. In the latest statement released overnight, RBA sais the overall Australian economy in the second half of 2016 remained robust and the possibility of a widely expected downturn in the Australian housing market remained low. Nevertheless, the forecasts for 2016 GDP growth were revised down, when the economy unexpectedly contracted 0.5% after two straight quarters of economic growth. The main reason behind the contraction was largely due to temporary factors, such as a slowdown in building activity related to bad weather and coal supply disruptions. In a case of inflation expectations, RBA sais the target projections are at the level of 2-3% target band until the middle of 2019. The unemployment rate should stay in the range between 5-6% until the middle of 2019 and the annual rate of the population growth at the range between 1.5% - 1.6%.

Let's now take a look at the AUD/USD technical picture at the daily time frame after the statement was released. The market is still bouncing from the technical support at the level of 0.7609 and this will be the key level for bears if they want to push the prices lower. Due to the overbought market conditions the bias remains to the downside and if the technical support at the level of 0.7609 is violated, then the next support is seen at the level of 0.7511.

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Global macro overview for 10/02/2017

Global macro overview for 10/02/2017:

The Industrial Production data from the UK has surprised the market participants today. The analysis anticipated the figure to decrease -0.2% in January after 2.0% rise two months ago, but the number was released at the level of 1.1%, way above the expectations. Moreover, on a yearly basis, the industrial production increased 4.3% already. Unfortunately, the ONS said that the numbers won't tack anything on to the Q4 GDP revision. They add that manufacturing was boosted by the Pharma sector, which is notoriously volatile. In conclusion, very strong numbers from the UK industrial production sector are yet another proof all the UK economy is doing very well in a post-Brexit environment.

Let's now take a look at the GBP/USD technical picture at the H4 time frame. The market still trades around the weekly pivot at the level of 1.2522 and the market conditions seem to be overbought. The technical resistance at the level of 1.2545 was violated, but the market reversed and no continuation occurred so far. The next support is seen at the level of 1.2411 and the most important one at the level of 1.2347.

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Gold analysis for February 10, 2017

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Recently, gold has been trading downwards. The price tested the level of $1,221.70. According to the 15M time frame, I found bullish hidden divergence in the progress. My advice is to watch for potential buying opportunities. There is a broken supply trendline in the background. I have placed Fibonacci retracement to find potential upward targets. I got Fibonacci retracement 38.2% at the price of $1,230.35 and Fibonacci retracement 61.8% at the price of $1,235.70.

Fibonacci pivot points:

Resistance levels:

R1: 1,241.50

R2: 1,245.50

R3: 1,251.70

Support levels:

S1: 1,228.50

S2: 1,224.90

S3: 1,218.60

Trading recommendations for today: watch for potential buying opportunities.

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Technical analysis of USD/JPY for Feburary 10, 2017

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USD/JPY is expected to advance further. The pair accelerated on the upside yesterday, and now is trading above its rising 20-period and 50-period moving averages, which play support roles and maintain the upside bias. The relative strength index is above its level of 70 (oversold), but has not displayed any reversal signal yet.

Hence, as long as 113.10 is support, look for a further rise to 113.95 and 114.30 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 114.30. In the alternative scenario, short positions are recommended with the first target at 112.75 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 111.30. The pivot point is at 113.10.

Resistance levels: 113.95, 114.30, and 114.60. Support levels: 112.75, 112.45, and 112.00.

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Technical analysis of NZD/USD for February 10, 2017

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Overview:

  • The NZD/USD pair continues to move downwards from the level of 0.7314.
  • The pair dropped from the level of 0.7314 to the bottom around 0.7190. Today, the first resistance level is seen at 0.7265 followed by 0.7314, while daily support 1 is seen at 0.7179.
  • According to the previous events, the NZD/USD pair is still moving between the levels of 0.7265 and 0.7118.
  • If the NZD/USD pair fails to break through the resistance level of 0.7265, the market will decline further to 0.6546.
  • This would suggest a bearish market because the RSI indicator is still in a positive area and does not show any trend-reversal signs.
  • The pair is expected to drop lower towards at least 0.7179 so as to test the first support. It will also call for a downtrend in order to continue towards 0.7118.
  • The daily strong support is seen at 0.7118.
  • On the other hand, if a breakout takes place at the resistance level of 0.7375 (the double top), then this scenario may become invalidated.
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Technical analysis of USD/CHF for Feburary 10, 2017

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USD/CHF is expected to further advance. The pair recorded a succession of higher tops and higher bottoms since Feb. 9 and is holding on 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 stands firmly above its neutrality level at 50 and lacks downward momentum.

On Thursday, the three major US stock indexes closed at record highs as investors were cheered up by President Donald Trump's comments that a major tax plan announcement would be made in a few weeks. The US dollar got a boost from Trump's comments on tax.

As long as 0.9985 is support, a further upside towards 1.0045 and even 1.0070 in extension would be seen.

Resistance levels: 1.045, 1.0070, and 1.0200

Support levels: 0.9965, 0.9930, and 0.9885

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Technical analysis of USD/CHF for February 10, 2017

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Overview:

  • On the one-hour chart, the USD/CHF pair continues moving in a bullish trend from the support levels of 1.0005 and 0.9974. 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 0.9974, which coincides with a golden ratio (61.8% of Fibonacci). Consequently, the major support is set at the level of 0.9974. So, the market is likely to show signs of a bullish trend around the spot of 1.0044 (double top). In other words, buy orders are recommended above the golden ratio (0.9974) with the first target at the level of 1.0044 (we should see the pair climbing towards the double top to test it). Furthermore, if the trend is able to breakout through the double top at 1.0044, the market will continue rising towards the weekly resistance 2 at 1.0070. On the other hand, it would also be wise to consider where to place a stop loss; this should be set below the second support of 0.9952.
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Technical analysis of NZD/USD for Feburary 10, 2017

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NZD/USD is under pressure. The pair shows further downside potential after failing to break above its key resistance at 0.7225 (Jan. 25 and 26 bottoms), which should limit the upside potential. The descending 50-period moving average is playing a resistance role and suggests that the price still has potential for a further downside. The relative strength index is below its neutrality level at 50. As long as 0.7225 is not broken, look for a further drop towards 0.7150 and even 0.7120 as targets.

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 0.7150. A break below this target will move the pair further downwards to 0.7120. The pivot point stands at 0.7225. 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 0.7280 and the second one at 0.7310.

Resistance levels: 00.7280, 0.7310, and 0.7375

Support levels: 0.7150, 0.7120, and 0.7085

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Technical analysis of GBP/JPY for Feburary 10, 2017

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GBP/JPY is expected to move further upside. The pair has continued its rebound since the low, which was hit on February 7, and is likely to continue its upleg. The 20-period moving average is currently playing a key support role, while the 50-period moving average is also rising and confirming a bullish bias. Meanwhile, the relative strength index is above its neutrality area at 50 and is positively oriented. As long as the level of 141.30 is not broken down, further bounce is preferred with 142.60 and 143.10 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 142.60 and the second one at 143.10. 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 139.90. The pivot point is at 141.30.

Resistance levels: 142.60, 143.10, and 143.75

Support levels: 140.50,139.90, and 139.45

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Wave analysis of USDX for February 10, 2017

The Dollar index is making new highs and is testing short-term resistance levels at 100.80-101. This is an important resistance area. A weekly close above it will probably increase the chances that the low of wave 4 is in.

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Black lines - bearish channel

Blue line - resistance

Red line - support

The Dollar index is making higher highs and higher lows. The price has broken above the Ichimoku cloud in the 4-hour chart. This is a bullish sign. However, the form of the rise is not impulsive and that is why I continue to believe that this bounce is still a part of the corrective decline from 103.70 and I continue to expect a move towards 99.

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Green line - long-term support

Red line - bearish weekly divergence

Blue line - projected path ahead

My favorite scenario that the decline from 103.70 is wave 4 remains valid. The price is showing reversal signs on a weekly basis. The price is bouncing off the 38% Fibonacci retracement. As long as the price is above 100, the low of wave 4 is most probably in. Next we should expect a move towards 105. The scenario of new lows before the reversal is still valid but with less chances now. Traders need to be very cautious at this stage until we get more information.

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Technical analysis of gold for February 10, 2017

Gold price made a short-term reversal yesterday. The price has broken through support and finally the bearish divergence signals from the oscillators have been confirmed. The pullback was justified and normally this is inside the medium-term uptrend we are in.

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Blue line - support (broken)

Gold price is heading towards the cloud support at $1,210. Short-term oscillators have been relieved of the overbought conditions. The price pulling back is an opportunity for the bulls. I do not see this pullback as the start of a bigger decline. $1,233-34 is now important short-term resistance. If it is broken, the chances of a new higher high are increased. I do not expect Gold to break below $1,200.

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Gold price got rejected yesterday at the kijun-sen resistance (yellow line indicator). This is natural to happen at the first try. As long as the price is inside the weekly cloud I expect the kijun-sen to be broken upwards and move towards $1,320. I remain bullish for Gold.

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Daily analysis of major pairs for February 10, 2017

EUR/USD: The EUR/USD has gone down in the short-term, generating a short-term bearish signal. Price has gone down by more than 100 pips this week, now below the resistance line at 1.0700. The next target for bears is support line at 1.0650, which might even be breached to the downside.

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USD/CHF: The USD/CHF has generated a valid bullish signal. The market moved sideways last week, and consolidated to the upside this week. Price has been able to go above the important support level at 1.0000 and it would not be easy for it to go below that level again. Further bullish movement is expected within the next several trading days.

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GBP/USD: The GBP/USD is still consolidating right now, but a significant rise in momentum is expected soon. Price might go above the distribution territory at 1.2650, generating a bullish signal; or go below the accumulation territory at 1.2350, generating a bearish signal in the market.

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USD/JPY: This pair moved sideways from Monday till Wednesday and then started to trend upwards on Thursday. That upwards movement is strong enough to generate a bullish signal, and as soon the EMA 11 crosses the EMA 56 to the upside, and the RSI period 14 crosses the level 50 to the upside, a bullish bias would be confirmed.

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EUR/JPY: The EUR/JPY moved downwards from Monday till Wednesday, reaching the demand zone at 119.50. Further downward movement has been rejected from that demand zone and price has gone upwards almost 200 pips from there. Another movement of 200 pips to the upside would result in a Bullish Confirmation Pattern in the chart.

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Technical analysis of EUR/USD for Feb 10, 2017

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When the European market opens, some Economic Data will be released, such as Italian Industrial Production m/m, French Prelim Non-Farm Payrolls q/q and French Industrial Production m/m. The US will release the economic data, too, such as Federal Budget Balance, Prelim UoM Inflation Expectation, Prelim UoM Consumer Sentiment and Import Prices m/m, so, amid the reports, EUR/USD will move in a low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Breakout BUY Level: 1.0708.

Strong Resistance:1.0701.

Original Resistance: 1.0691.

Inner Sell Area: 1.0681.

Target Inner Area: 1.0656.

Inner Buy Area: 1.0631.

Original Support: 1.0621.

Strong Support: 1.0611.

Breakout SELL Level: 1.0604.

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 10, 2017

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In Asia, Japan will release the Tertiary Industry Activity m/m and PPI y/y data, and the US will release some Economic Data, such as Federal Budget Balance, Prelim UoM Inflation Expectation, Prelim UoM Consumer Sentiment, and Import Prices m/m. So, there is a probability the USD/JPY will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Resistance. 3: 114.27.

Resistance. 2: 114.05.

Resistance. 1: 113.82.

Support. 1: 113.55.

Support. 2: 113.32.

Support. 3: 113.10.

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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USD/CAD intraday technical levels and trading recommendations for February 10, 2017

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The USD/CAD pair challenged the upper limit of the depicted channel around 1.3360-1.3400 which succeeded to apply enough bearish pressure on the pair.

Shortly after, a bearish engulfing weekly candlestick was expressed by the end of the week indicating strong resistance around 1.3550.

Bearish persistence below the price level of 1.3300 (50% Fibonacci Level) was achieved.

This allowed a further decline toward 1.3200 and 1.3080 (the lower limit of the depicted channel) where bullish rejection was expressed as anticipated.

A bullish breakout above 1.3360 (50% Fibonacci level) was expected to allow a further advance toward 1.3700-1.3750 (the upper limit of the depicted channel). However, significant bearish rejection was expressed around 1.3580 (recent established top).

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

That is why, the recent bearish pullback toward 1.2970 (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 (1.2970-1.3300).

On the other hand, DAILY closure below 1.2970 (61.8% Fibonacci level) will confirm a double top pattern with projected bearish targets at 1.2860, 1.2730, and 1.2600.

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NZD/USD Intraday technical levels and trading recommendations for February 10, 2017

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On December 16, 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 bearish price action was expressed as anticipated.

Bearish persistence below 0.7250 is needed to allow further bearish decline toward 0.7100 (Note the recent bearish DAILY candlesticks within the SELL zone).

On the other hand, any bullish pullback toward 0.7250 should be considered for SELLING the pair.

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Intraday technical levels and trading recommendations for GBP/USD for February 10, 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 is 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 10, 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.

Otherwise, the EUR/USD pair remains trapped within the depicted consolidation range (1.0570-1.1400).

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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.

On November 14, 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 Level 50% (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 Level 50%) where bearish rejection and a valid SELL entry were anticipated.

On the other hand, the current bullish breakout above 1.0570-1.0600 was executed on January 12.

That is why, the price level of 1.0570 at the moment constitutes a recent demand level to be watched for the bullish rejection if any bearish pullback occurs.

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Daily Video Analysis on EUR/JPY - 9th February 2017

We take an in-depth look on EUR/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 use 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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EUR/USD remain bearish with break of our long term support

We remain bearish with the break of our long-term ascending support-turned-resistance line. The goal is to be bearish below the 1.0711 resistance (Fibonacci retracement, horizontal overlap resistance, pullback resistance) for a drop to at least 1.0623 (Fibonacci retracement, recent swing low support).

The RSI (34) is seeing a descending resistance.

Sell below 1.0711. Stop loss at 1.0758. Take profit at 1.0623.

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EUR/JPY right above strong support, remain bullish

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We remain bullish above the 119.65 support (major horizontal support, Fibonacci retracement) for a push up to the 121.08 resistance (Fibonacci retracement, horizontal pullback resistance).

Stochastic (21,5,3) is seeing a strong support above the 6% level and also displays bullish divergence vs the price signalling a bullish reversal, which is expected soon.

Buy above 119.62. Stop loss at 118.63. Take profit at 121.08.

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AUD/JPY right above support, remain bullish

We remain bullish above the 85.34 support (Fibonacci projection, horizontal support) for a push up to at least 86.08 (Fibonacci retracement, horizontal pullback resistance).

Stochastic (21,5,3) is bouncing nicely above the strong support at 5.5%.

Buy above 85.34. Stop loss at 84.97. Take profit at 86.08.

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