USD/JPY Fundamental Analysis February 13, 2017

USD/JPY is currently in bullish bias after the market has broken above the level 112.50. Today morning, JPY high impact event Prelim GDP was forecasted to be unchanged at 0.3%, but the actual report was 0.2% which was -0.1% deficit. This deficit affected the JPY, and USD is currently seen gaining strength over the JPY without any economic events on the USD side. As of the JPY deficit GDP report and USD gaining continuous strength it is expected that USD will reach the 115.20 resistance soon.

Now let us look at the technical view of the market, after massive buying, as 112.50 event level is taken out last week, price is currently above the support area of 113.00-50 and last h4 rejected from 113.50 with bullish body. As the market remains above 113.00-50 area it is expected that the price will progress toward 115.20 but price may follow some corrective structures before reaching the resistance at 115.20.

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EUR/USD Fundamental Analysis February 13, 2017

After a massive selling off last week EUR/USD has reached the base support at 1.0627. Today, the market opened with 8 pips gap and within few hours the gap was filled as the EUR started gaining strength after hitting the support. Currently, EUR has been seen getting strength over USD and market is above the support level. Today, there is no economic event for USD where EU Economic forecast is currently undergoing and as of the market reaction EUR is seen to gain strength over the USD. Due to some pending decisions of President Mr. Donald Trump on tax related issues the market is currently in an indecisive state where USD is expected to gain power after a certain retracement on the EUR side earlier this week.

Now let us look at the technical view of the market, price has reached the near-term support level which was already respected many times in future and being respected currently. If the price remains above the support level 1.0627, it is expected that bulls will gain strength over USD for a day or two till the price pulls back to the resistance area between 1.0715-50. From the resistance area, if we see any bullish rejection from the resistance area we will be looking forward to sell as the bias is still bearish. On the other hand, if the market breaks above 1.0750 with a daily close, we will be looking forward to buy with a target toward 1.0850 as the first target and 1.1060 as the second target upwards.

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NZD/USD Intraday technical levels and trading recommendations for February 13, 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 towards 0.7250 should be considered for SELLING the NZD/USD pair.

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Gold analysis for February 13, 2017

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Recently, gold has been trading upwards. As I expected, the price tested the level of $1,237.14. According to the 30M time frame, I found head and shoulders formation (bearish), which is a sign that buying looks risky. My advice is to watch for potential selling opportunities. The first target is set at the price of $1,223.00.

Fibonacci pivot points:

Resistance levels:

R1: 1,233.50

R2: 1,234.75

R3: 1,236.40

Support levels:

S1: 1,230.50

S2: 1,229.45

S3: 1,227.60

Trading recommendations for today: watch for potential selling opportunities.

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USD/CAD intraday technical levels and trading recommendations for February 13, 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's 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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Intraday technical levels and trading recommendations for GBP/USD for February 13, 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 13, 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 the current bearish pullback persists.

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EUR/NZD analysis for February 13, 2017

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Recently, the EUR/NZD pair has been trading sideways at the price of 1.4785. According to the 30M 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. The first target is set at the price of 1.4855. There is Fibonacci retracement rejection in the background. Price respected Fibonacci retracement 38.2%, which is good sign for potential bullish continuation.

Resistance levels:

R1: 1.4815

R2: 1.4835

R3: 1.4865

Support levels:

S1: 1.4750

S2: 1.4735

S3: 1.4700

Trading recommendations for today: watch for buying opportunities.

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Technical analysis of USD/JPY for Feburary 13, 2017

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USD/JPY is expected to trade with bullish bias. The pair broke above its 20-period and 50-period moving averages with a bullish gap. The relative strength index is bullish above its neutrality level at 50 and is heading upwards. Additionally, the pair also broke above the upper boundary of the Bollinger Bands, which could signal a continuation of positive trend.

As long as 113.10 is support, look for a further upside with up targets at 114.30 and 114.60 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 114.30 and the second one at 114.60. 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 112.45. The pivot point is at 113.10.

Resistance levels: 112.75, 112.45, and 112.00. Support levels: 114.30, 114.60, and 114.95.

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Technical analysis of USD/CHF for Feburary 13, 2017

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USD/CHF is expected to trade with bullish bias. The pair is rebounding and broke above its 20-period moving average with strong momentum. The relative strength index is turning up and broke above its neutrality level at 50. Additionally, 1.000 represents a significant key support level, which should limit the downside potential.

The U.S. dollar remained firm although its strength was dampened by a worse-than-expected University of Michigan consumer sentiment index for February (posted at 95.7 vs. 98.0 expected, 98.5 in January). While U.S. President Donald Trump and Japanese Prime Minister Shinzo Abe discussed their trade relationship in a joint press conference, that did not offer much new information about how Trump will approach foreign-exchange. The dollar was still buoyed by Trump's tax-plan comments given on Thursday.

As long as this key level is not broken, look for a further upside toward 1.0060 and even 1.0095 in extension.

Resistance levels: 1.060, 1.0095, and 1.0210

Support levels: 0.9985, 0.9965, and 0.9930

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Trading plan for 13/02/2017

Trading plan for 13/02/2017:

At the beginning of the trading week, there will be a few economic releases during the European and American trading session, so let's take a look at the major fundamental events during this week. This week, the US, Britain and China publish reports on inflation. In turn, Janet Yellen, the chairman of the Federal Reserve, will testify before Congress for the first time since the Donald Trump entered the White House.

Monday, February 13

Japan will publish a preliminary reading of economic growth in the fourth quarter.

Let's take a look at the EUR/JPY technical picture to see how news is going to affect the market. The most important level now is the resistance at the level of 121.32 and any break out higher will open the road to the level of 122.51. Any failure here will make the price to go back to the sidelines mode, where the next support is seen at the level of 120.22.

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Tuesday, February 14

China will publish data on consumer sentiment and inflation in producer prices.

Germany will publish preliminary reading of economic growth for the fourth quarter and the euro zone will publish a revised reading of economic growth in the fourth quarter.

ZEW institute will publish a report on German economic sentiment.

United Kingdom publishes a report on consumer price inflation.

US will publish data on producer price inflation.

Fed Chair Janet Yellen will testify on monetary policy before the Senate Banking Committee in Washington.

Dallas Fed President Robert Kaplan will speak at an event in Houston.

The Consumer Price Index data from the United Kingdom might cause a lot of volatility in the GBP/USD pair, so it is worth to analyze the technical picture at the higher time frame, like 4H. The price is trading below the golden trendline, but it looks like the bulls want to break out above the technical resistance at the level of 1.2581. If this level is violated after the news, then the next technical resistance is seen at the level of 1.2729.

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Wednesday, February 15

The United Kingdom will publish a report on employment.

USA will publish a series of reports, among other things, inflation, retail sales, industrial production and factory activity in the region of New York.

Fed Chair Janet Yellen will testify on monetary policy before the Senate Banking Committee in Washington.

For this day the Dollar Index will be the most affected pair, especially during the Yellen testify. The most important level is the technical resistance at the level of 101.02 and any hawkish statements from Yellen might help the price to break out above this level. Only a sustained break out below the level of 100.06 would change the bullish bias before the Yellen Wednesday's testimony.

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Thursday, February 16

Australia will release the latest employment report.

The European Central Bank will publish the minutes of its last meeting.

USA will publish reports on building permits, commenced construction of houses, the initial administrations of unemployment and factory activity in the Philadelphia region.

This biggest volatility might be created during the ECB Minutes release and the most affected forex pair will be EUR/USD, so let's take a look at the daily technical picture of this pair. The current market conditions are overbounght and the price is trading at the daily support at the level of 1.0619. Any daily close below that level would open the road towards the next techncial support at the level of 1.0451.

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Friday, February 17

New Zealand will publish a report on retail sales.

United Kingdom also publishes a report on retail sales.

Canada closes week a report on purchases of foreign bonds.

Market snapshot - Cooper at multi-year highs.

Copper prices reached the highest level since May 2015 exceeding the barrier of $ 6,000 per ton. The pretext to break new peaks were the news on the beginning of a long time the announced strike of miners in Chile. At the beginning of the London session, the price of the red metal soared by 4.1%, which was way above the local highs from November and January. It is worth to mention, that strikes an ordinary thing in this industry and in the absence of an appropriate sentiment in the market rarely can create a significant and long-lasting impact on commodity prices.

Let's not take a look at the Copper futures market technical picture at the H1 time frame. After the gap up towards the level of 2.814 the bears are trying to fill the gap back. The market conditions are overbought at this time frame, so the corrective move is expected now. This is why a sell orders are preferred for intraday trading, with SL above the level of 2.814. The next support is seen at the level of 2.737 (good TP level) and a daily close below this level might suggest that some kind of topping formation is in progress.

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Technical analysis of GBP/USD for February 13, 2017

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Overview:

  • The GBP/USD pair is moving in a bullish trend from the support levels of 1.2473, 1.2380, and 1.2287. Currently, the price is in a bullish channel around the price of 1.2473. 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 and 1.2473, 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. 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 NZD/USD for Feburary 13, 2017

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NZD/USD is expected to trade with bullish bias above 0.7170. The pair is still in an uptrend, supported by its rising 50-period moving average. The nearest key level at 0.7170 should play a strong support role as well. Besides, the relative strength index lacks downward momentum, and is still above its neutrality area at 50. Hence, as long as 0.7170 is not broken, advance to 0.7240 and 0.7280 in extension is possible.

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 0.7240 and the second one at 0.7230. In the alternative scenario, short positions are recommended with the first target at 0.7150, 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 0.7120. The pivot point is at 0.7170.

Resistance levels: 0.7280 and 0.7310

Support levels: 0.7150, 0.7120, and 0.7085

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Technical analysis of EUR/USD for February 13, 2017

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Overview:

  • The EUR/USD pair continues to move downwards from the level of 1.0723. Last week, the pair dropped from the level of 1.0723 (this level of 1.0723 coincides with the ratio of 78.6% Fibonacci retracement) to the bottom around 1.0641. Today, the first resistance level is seen at 1.0723 followed by 1.0828 (the double top), while daily support 1 is found at 1.0583. Also, the level of 1.0641 represents a weekly pivot point for that it is acting as major level this week. Amid the previous events, the pair is still in a downtrend, because the EUR/USD pair is trading in a bearish trend from the new resistance line of 1.0723 towards the first key level at 1.0641 in order to test it. If the pair succeeds to pass through the level of 1.0641, the market will indicate a bearish opportunity below the level of 1.0641 with the targets of 1.0583 and 1.0526. However, if a breakout happens at the resistance level of 1.0723, then this scenario may be invalidated.
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Technical analysis of GBP/JPY for Feburary 13, 2017

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GBP/JPY is expected to trade. The pair is accelerating on the upside following the release of Japan's GDP figure, and is expected to break above its previous high at 142.65. The cross above its 50-period moving average is a bullish technical signal, which allows for further upside. And the relative strength index is well directed, showing strong upside momentum. As long as 141.75 is not broken down, further rise is preferred with 142.65 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 142.65 and the second one at 143.10. 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 140.50. The pivot point is at 141.75.

Resistance levels: 142.65, 143.10, and 143.75

Support levels: 141.20, 140.50 and 139.90

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Global macro overview for 13/02/2017

Global macro overview for 13/02/2017:

The Japanese Gross Domestic Product data for the fourth quarter had missed the expectations. The Cabinet Office said in a preliminary report published on Monday that Gross Domestic Product (GDP) expanded 0.2% in the October-December period and 1% annually that follows a 0.3% expansion in the third quarter (and 1.17 annually). Nevertheless, the Japanese economy has expanded for four consecutive quarters now, but the pace of growth has declined slightly. The recent manufacturing and employment data confirmed that the economy is gradually improving, but the main headwinds for Japan might come from deflation risk and weak domestic demand. The Bank of Japan still remains on the sideline and it is very unlikely for BoJ to terminate the stimulus any time soon.

Let's not take a look at the GBP/JPY technical picture at 4H time frame. The bulls are trying to break out above the golden trendline resistance, but the current market conditions look overbought for now. Nevertheless, the bias is to the upside and any eventual break out above the level of 142.61 will open the road towards the next resistance at the level of 144.10 and 144.76. Invalidation of this scenario comes with a clear violation of the level of 140.98.

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Global macro overview for 13/02/2017

Global macro overview for 13/02/2017:

The dollar was trading higher against the yen on Monday morning amid relief that a weekend summit meeting between U.S. President Donald Trump and Japanese Prime Minister Shinzo Abe went better than expected. In the meeting with Abe, Trump avoided repeating accusations that Tokyo uses monetary policy to devalue its currency to the disadvantage of the US and takes advantage of US security aid. They both also agreed to hold an economic dialogue after Trump canceled the US from the Trans-Pacific Partnership agreement.

Let's now take a look at the USD/JPY technical picture at the 4H time frame. The bulls have managed to break out above the golden trendline resistance, but the rally was capped just below 38%Fibo at the level of 114.28. The market conditions seem to be overbought at this time frame, but the bias is still to the upside. The next resistance is seen at the level of 114.26 and 115.60.

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Technical analysis of USDX for February 13, 2017

The Dollar index made a big bounce up last week towards the important resistance of 101. The price is still inside a bearish channel but there are also a lot of chances that the recent low at 99.24 is an important medium- to long-term low.

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Red line - support

Black line - bearish channel

The Dollar index is pulling back off channel resistance. Short-term support is at 100.45. If it is broken, I would expect the price to fall towards cloud support at 100. There are short-term bearish divergence signals. A pullback is justified. This expected pullback is very critical to the medium-term trend. Why? Because if a higher low is made, it will be a great opportunity to go long for the Dollar as the bigger picture suggests a new bullish trend could start from this area targeting 105 and higher.

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Green line - long-term support

Red line - bearish divergence

The Dollar index is bouncing on a weekly basis off the 50% Fibonacci retracement and the kijun-sen (yellow line indicator). As long as we trade above last week's low, the bulls will be in control and we would be expecting a move to new highs. A break below last week's low will push the price towards the long-term green trendline support.

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Technical analysis of gold for February 13, 2017

The price made a pullback late last week but prices bounced back up towards the first short-term resistance at $1,235. Gold remains resilient despite the Dollar strength of the last few sessions. This implies strength in Gold. Gold is in a medium-term uptrend targeting $1,280-$1,320 over the next month.

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Red line - resistance

Blue line - support

The price is trading around $1,235. Short-term resistance is at $1,235-37. Short-term support is at $1,220. The price is trying to break above the short-term Ichimoku cloud. The price is in a correction phase that could push even lower towards $1,200-10 if $1,220 is broken. On the other hand, a break above $1,237 and $1,245 will imply that the bullish trend is back in force and we should expect a move towards $1,280-$1,320.

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The price stopped the rise for a while at the weekly kijun-sen (yellow line indicator). A break above it will confirm the medium-term targets of $1,280-$1,320 I have and it increases the chances of achieving them. In the long term I am bullish for Gold.

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Elliott wave analysis of EUR/NZD for February 13, 2017

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Wave summary:

We are still looking for more upside here towards 1.4918 to complete wave [i] and set the stage for a minor correction back to 1.4695 from where a new strong rally is expected towards 1.5836 and possibly even higher. In the short term a break above minor resistance at 1.4791 will confirm the rally higher to 1.4918.

Ideally, support at 1.4695 will be able to protect the downside for the expected rally higher to 1.4918; but only a break below support at 1.4651 will question this rally.

R3: 1.4918

R2: 1.4860

R1: 1.4791

Pivot: 1.4735

S1: 1.4695

S2: 1.4675

S1: 1.4651

Trading recommendation:

We bought EUR at 1.4740 and has placed our stop at 1.4490.

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Elliott wave analysis of EUR/JPY for February 13, 2017

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Wave summary:

We continue to look for more upside pressure toward the ideal target seen at 126.54 to complete wave 3. A short-term break above minor resistance seen at 121.33 and more importantly a break above resistance at 121.77 will confirm the expected rally higher to 124.09 on the way higher to 126.54 from where a more sustained consolidation is expected.

Support is now seen at 120.22.

R3: 122.52

R2: 121.77

R1: 121.23

Pivot: 120.90

S1: 120.66

S2: 120.22

S3: 120.08

Trading recommendation:

We are long EUR at 120.15 with stop placed at 119.90. Take profit is placed at 126.25.

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Technical analysis of EUR/USD for Feb 13, 2017

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When the European market opens, some Economic Data will be released, such as German Buba Monthly Report and German WPI m/m. 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: 1.0672.

Strong Resistance:1.0665.

Original Resistance: 1.0655.

Inner Sell Area: 1.0645.

Target Inner Area: 1.0620.

Inner Buy Area: 1.0595.

Original Support: 1.0585.

Strong Support: 1.0575.

Breakout SELL Level: 1.0568.

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 13, 2017

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In Asia, Japan will release the Prelim GDP Price Index y/y and Prelim GDP q/q data, and, today, the US will not release any Economic Data. So, there is a probability the USD/JPY will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Resistance. 3: 114.50.

Resistance. 2: 114.28.

Resistance. 1: 114.05.

Support. 1: 113.78.

Support. 2: 113.55.

Support. 3: 113.33.

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 February 13, 2017

EUR/USD: The dominant bias on this market is bearish and the short-term signal is also bearish. Price moved further south last week, leading to a Bearish Confirmation Pattern as it closed below the resistance line at 1.0650 on Friday. More southwards movement is possible this week, targeting the support lines at 1.0600, 1.0550 and 1.0500.

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USD/CHF: The USD/CHF has generated a valid bullish signal. The market moved sideways, but started rising gradually in the last two days of the 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 Cable merely moved sideways last week – which has led to an equilibrium phase in the market. The sideways movement could continue this week or so... But a rise in a bearish movement is very likely and it may happen any day. There would also be a bearish movement on some other GBP pairs as well.

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USD/JPY: The bias on this market is bearish, and the rally that was seen on it toward the end of the week was merely a bullish attempt in the context of a downtrend. Nevertheless, there is a possibility that a strong rally would occur this month or next (also on JPY pairs). While the demand levels at 112.50 and 112.00 may be tested, there may soon be a rise in a bullish momentum which would push the market upwards significantly.

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EUR/JPY: The EUR/JPY trended downwards from Monday till Wednesday, and started going upwards on Thursday, before it got corrected on Friday. The medium-term bias is bearish, and further bearish movement is possible, which may see the market testing the demand zones at 120.00 and 119.50. On the other hand, a strong rally may happen soon.

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Daily analysis of USDX for February 13, 2017

USDX still rides the bullish structure above the 200 SMA at H1 chart, looking for the resistance level of 101.43. If the index manages to break such barrier, then further gains toward 102.39 are expected to happen. On the other hand, with a pullback to test the 100.00 handle, the index could be looking to consolidate below the 200 SMA and MACD indicator is favoring that scenario.

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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 13, 2017

GBP/USD is consolidating above the support level of 1.2475, waiting for another light week in terms of macroeconomic data. The 200 SMA still is pushing the pair to the downside and it is expected to see a rebound towards 1.2561 in coming hours. However, as long as GBP/USD remains capped by the upper band of the Bollinger band, then it can test the support zone of 1.2414.

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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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