EUR/USD fundamental analysis for February 20, 2017

Closing last week with a massive selling pressure on the EUR/USD pair, it has started the trading day below 1.0640-50 area. Today German PPI was published with a positive result at 0.7% which was forecasted to be 0.3%, and this data, as well as the Eurogroup meeting affected the performance of USD where EUR is gaining stronger. Due to President's day, the USA is having bank holiday which left USD having no way to show its strength against EUR. Moreover, EUR Consumer Confidence report is also going to be published today which is expected to remain unchanged at -5. In this case, if the report turns out positive EUR is expected to climb up much higher against USD.

Now let us look at the technical view, currently, the price is below the resistance 1.0640-50 and bearish bias seemed to be quite intact so far. If we see the price bouncing off from the resistance area 1.0640-50 with any bullish rejection the price action or bearish pressure off the level we will be looking forward to sell towards the next support at 1.0530. On the other hand, if the price breaks above 1.0640-50 resistance area we will not consider buying this pair until the price closes above 1.0700.

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USD/JPY analysis for February 20, 2017

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Recently, the USD/JPY pair has been trading sideways at the price of 113.15. According to the 15M time frame, I found rising wedge formation. Rising wedge formation is a bearish pattern. There is also a hidden bearish divergence, which is a sign that buying looks risky. My advice is to wait for potential breakout of lower diagonal to confirm re-continuation of the downward trend. If the price breaks the lower diagonal of the wedge, downward target will be set at the price of 112.65.

Resistance levels:

R1: 113.20

R2: 113.26

R3: 113.35

Support levels:

S1: 113.03

S2: 112.95

S3: 112.90

Trading recommendations for today: watch for potential selling opportunities.

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EUR/USD analysis for February 20, 2017

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Recently, the EUR/USD pair has been trading sideways at the price of 1.0620. According to the 15 time frame, I found potential parabolic bottoming, which is a sign that selling looks risky. There is a hidden bullish divergence on the moving average oscillator, which is another sign of potential strength. My advice is to watch for potential buying opportunities. The first target is set at the price of 1.0665 (swing high).

Resistance levels:

R1: 1.0630

R2: 1.0635

R3: 1.0645

Support levels:

S1: 1.0610

S2: 1.0603

S3: 1.0590

Trading recommendations for today: watch for potential buying opportunities.

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Trading plan for 20/02/2017

Trading plan for 20/02/2017:

The US markets will be closed today due to the President's Day, let's take a look what are the most important macroeconomic events for the week of February 20-26 and how they might influence the major pairs.

The interplay of politics, economics and market trends will be a key focus for the market participants this week. Further President Trump's rhetoric regarding the tax plans and the developments surrounding the French Presidential election will also have a significant impact.

GBP/USD analysis for 20/02/2017:

The most important event for this pair will be UK House of Lords Article 50 debate on February 20th and 21st. The upper chamber of the British Parliament will debate the Bill over the two days before it passes into the committee stage. The debate might get even more important because the British PM Theresa May still wants to trigger Article 50 around the March 9-10 EU Summit.

The debate is likely to trigger choppy GBP/USD trading conditions during the week, so this pair should trade in the range of 1.2347 to 1.2581 until some important decisions are finally made. Sideways price action is expected here then.

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EUR/USD analysis for 20/02/2017:

The most important events for the EUR/USD are Eurogroup meeting conclusions (scheduled to start on February 20th) and Eurozone PMI releases (scheduled for release on February 21st at 09:00 am GMT). During the Eurogroup meeting, the main focus will be centered on the discussion on Greece and efforts to finally conclude a review of bailout reforms which has stalled for months. The German and Dutch governments have stated that they will not continue with the bailout program unless the IMF decides to participate again. On the other hand, the PMI data release will be an important indicator of whether the stronger growth trend is likely to be sustained and whether underlying inflation pressures are increasing.

Both of the events might cause an increased volatility on the EUR/USD pair, so let's take a look at the EUR/USD technical picture at the H4 time frame. The market conditions look overbought after the bull camp has managed to break out above the golden trendline. The market can break out above the nearest technical resistance at the level of 1.0679 when PMI data will beat the expectations significantly (1-2 standard deviations) or when the Eurogroup meeting will decide to transfer another tranche of Euro to the Greece. Otherwise, the down trend will likely to continue.

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US Dollar Index analysis for 20/02/2017:

The most important events for the US Dollar Index will be the release of the Federal Reserve Meeting Minutes on Wednesday 22nd at 07:00 pm GMT. The minutes will indicate that the FED is expecting to hike the interest rates further over the next few months and the global investors will be looking for a clue whether there is any clear indication of the anticipated rate hike in March 2017. This will be the most important signal from the minutes.

The US Dollar Index is currently trading in oversold trading conditions after the bulls have managed to break out above the golden trendline. The price had managed to retrace over 50% of the recent leg down and now it is trading around the moving averages levels. The key level to the upside is the technical resistance at the level of 101.77, so any hawkish remarks in the FED minutes will likely lead to a break out above this level with ease. On the other hand, a lack of these remarks will likely cause a choppy, sideway price action and a possible test of the technical support at the level of 99.21.

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Daily analysis of the major pairs for February 20, 2017

EUR/USD: The EUR/USD pair went downwards from Monday till Wednesday and later bounced upwards. The upwards bounce could be seen as a good opportunity to go short, although a movement above the resistance line at 1.0750 would threaten the bearish outlook. Right now, the price seems to be going south, and further southward movement would bring more emphasis on the bearish outlook.

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USD/CHF: Here, it can be seen that the psychological level at 1.0000 has become insignificant because the price just goes above and below it at will, while the level offers little resistance to that play. The price went below the level at 1.0000 on Thursday and then went above it on Friday. One would need to wait to see what the price would do today.

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GBP/USD: The GBP/USD pair moved sideways throughout last week. However, there would soon be a serious breakout in the market, which would most probably push it to the downside, as the outlook on the GBP pairs remains bearish for February. Bullish attempts should be approached with caution here.

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USD/JPY: This pair also went upwards from Monday to Wednesday, and then got corrected downwards. The downward correction remains in place; and if it goes further downwards, it would generate a bearish signal (which may become particularly strong once the price goes below the supply level at 112.50).

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EUR/JPY: The EUR/JPY pair consolidated from Monday to Thursday and then broke out to the downside on Friday. The price closed below the supply zone at 120.00 on Friday, after generating a bearish signal, which may continue to hold out this week.

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Technical analysis of USD/JPY for February 20, 2017

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USD/JPY is expected to trade with bullish bias above 112.70. The pair remains on the upside, capped by its rising 50-period moving average. The nearest key support at 112.70 also acts a resistance. In addition, the relative strength index lacks strong downward momentum.

In these perspectives, as long as 112.70 holds on the downside, look for further upside to 113.50 and 113.80 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 113.50 and the second one at 113.80. In the alternative scenario, short positions are recommended with the first target at 112.15, 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 111.60. The pivot point is at 112.70.

Resistance levels: 113.50, 113.80, and 114.30

Support levels: 112.15, 111.60, and 111.25

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Technical analysis of USD/CHF for February 20, 2017

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USD/CHF is expected to continue its upside movement. The pair 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 neutrality level at 50 and lacks downward momentum. Additionally, 1.0000 is playing a key support role, which should limit the downside potential.

The U.S. dollar rebounded against most major currencies except the Japanese yen as the currency continued to be buoyed by Federal Reserve Chairwoman Janet Yellen's hawkish tones on interest rates and upbeat U.S. economic data.

As long as this key level is not broken, look for a further upside toward 1.0075 and even 1.0100 in extension.

Resistance levels: 1.0075, 1.0100, and 1.0135

Support levels: 0.9955, 0.9930, and 0.9900

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Technical analysis of GBP/JPY for February 20, 2017

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GBP/JPY is expected to trade with bullish bias above 139.80. The pair is currently posting a pullback, and is testing its 50-period moving average. Meanwhile, the 20-period moving average still stays above the 50-period one, which maintains a bullish bias. And the relative strength index is around its neutrality area at 50, lacking strong downward momentum. As long as 139.80 is not broken below, a technical bounce is expected with 139.20 and 138.50 as the next 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 141.25 and the second one at 141.95. In the alternative scenario, short positions are recommended with the first target at 139.20, 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 138.50. The pivot point is at 139.80.

Resistance levels: 141.25, 141.95, and 142.50

Support levels: 139.20,138.50, and 138.00

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Technical analysis of NZD/USD for February 20, 2017

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NZD/USD is expected to prevails the downside movement. The pair recorded a succession of lower tops and lower bottoms since Feb. 16 and is consolidating on the downside. The downward momentum is further reinforced by its declining 50-period moving average, which plays resistance role. The relative strength index is below its neutrality level at 50 and lacks upward momentum. Additionally, 0.7200 is playing a key resistance role, which should limit the upside potential. As long as 0.7210 holds on the upside, look for a further drop toward 0.7150 and even 0.7130 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 0.7150. A break below this target will move the pair further downwards to 0.7130. The pivot point stands at 0.7210. 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 0.7235 and the second one at 0.7260.

Resistance levels: 0.7235, 0.7260, and 0.7260

Support levels: 0.7150, 0.7130, and 0.7100

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Global macro overview for 20/02/2017

Global macro overview for 20/02/2017:

The Baker Hughes US Oil Rig Count data released last Friday revealed that the number of active oil rigs has increased for a fifth successive week. Currently, there are 597 active oil rigs in the US for the week ending February 17, which is a 6 more than the last week. Moreover, the total amount of oil rigs is the biggest number since the week of October 9, 2015, when the count was 605 (last week the oil-rig count rose by 8 to 591, while the total rig count increased by 12 to 741). In conclusion, the current data shows an ongoing increase in a number of active oil rigs, but there are still far away from the records highs in 2015 when over 1,600 oil rigs were active. Nevertheless, this uptrend is going to last, then the crude oil producer might have to face another problem besides global supply glut.

Let's now take a look at the Crude Oil technical picture at the H1 time frame. The bulls have managed to break out above the intraday resistance at the level of 53.71 and now they are trying to test the golden trendline around the level of 54.00. If the trendline is clearly violated, then the next level to test is the technical resistance at the level of 54.33.

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Global macro overview for 20/02/2017

Global macro overview for 20/02/2017:

The Japanese Ministry of Finance had reported overnight that Japan's trade balance turned negative in January, as imports surged and exports rose much slower than expected. The current trade deficit was £1.087 trillion in January, while the previous month surplus was at the level of £641.4 billion (market analysts expected the deficit of £636.8 billion for the reported month). Exports increased by an annualized 1.3% in January, well below forecasts calling for 4.7% increase. Exports rose in December for the first time in 15 months.In the same time, imports rose 8.5% in the 12 months through January, compared with forecasts calling for a 4.7% increase. In conclusion, the last bright spot on the Japanese economy is starting to fade away and it will be interesting to see how much percent will be added to the overall GDP for the last quarter.

Let's now take a look at the USD/JPY technical picture at the H1 time frame after the news were released. The market is currently trading inside of a narrow upwards channel after an impoulsive slide from 144.94 high. The next resistance is seen at the level of 113.49 and the next support is seen at the level of 112.84.

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Technical analysis of USDX for February 20, 2017

The Dollar index bounced off the cloud support as we expected in our last analysis. The Dollar index needs to break above 101.80 in order to confirm medium-term low at 99.25 and the start of a new uptrend targeting 105-110.

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The Dollar index bounced off the 50% retracement and off the 4 hour Ichimoku cloud support. The price is now testing the kijun-sen resistance (yellow line indicator) at 101.10. Breaking above on a 4-hour close, will open the way for a push higher above 101.70. Support is at 100.70. If it is broken we should expect the Dollar index to move towards the 61.8% Fibonacci retracement support.

analytics58aaa62643e76.pngBlack line - neckline support

Green line - long-term trendline support

On a daily basis the Dollar index is in neutral trend. The bulls need to break above 102 to regain control, while the bears need to break below the neckline in order to activate the Head and Shoulders pattern we mentioned again in our last analysis.

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Technical analysis of gold for February 20, 2017

Gold remains in bullish trend. There is no indication that a deeper pull back is coming. Short-term support is held and the precious metal is ready for a push higher toward $1,280-$1,320.

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Gold price is trading above the Ichimoku cloud in the 4 hour chart. Short-term support is at $1,230. Next support is at $1,216 and next at $1,200. Resistance is at $1,244-45. If broken we have confirmation for a move toward $1,280-$1,320.

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Black line -long-term resistance trend line

The weekly chart last week did not manage to close above the weekly kijun-sen resistance (yellow line indicator). I believe this week bulls will be able to break above it. The upside potential for Gold targets $1,280-$1,320. Trend remains bullish. Only after we reach that are should traders expect a bigger pull back.

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Technical analysis of GBP/USD for February 20, 2017

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Overview:

  • The GBP/USD pair is moving in a bullish trend from the support levels of 1.2380, and 1.2287. Currently, the price is in a bullish channel around the spot of 1.2380 and 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 EUR/USD for February 20, 2017

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Overview:

  • The EUR/USD pair continues to move downwards from the level of 1.0723.
  • 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.
  • This week, 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 a 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.
  • On the other hand, if a breakout happens at the resistance level of 1.0723, then this scenario may be invalidated.
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NZD/USD Intraday technical levels and trading recommendations for February 20, 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, the current bullish pullback toward 0.7250 should be considered for SELLING the NZD/USD pair.

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

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In January 2015, the EUR/USD pair moved below the major demand levels near 1.2100 where historical bottoms were previously set in July 2012 and June 2010.

Hence, a long-term bearish target was projected toward 0.9450.

In March 2015, the 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 long 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.

At the moment, the price level of 1.0570 stands as a prominent demand level to be watched for a valid bullish entry (note the bullish Head & Shoulders Pattern with Initial target at 1.0800).

Otherwise, further bearish decline can be executed towards 1.0400 if bearish breakdown below 1.0570 is achieved.

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

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EUR/NZD - Daily

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EUR/NZD - 4 Hourly

Wave summary:

We are still looking for a break above resistance seen at 1.4866 that confirms that a long-term low finally is at 1.4495 and a new long-term rally in wave 3 is developing. Short-term, we expect that the minor support at 1.4690 will be able to protect the downside for a break above minor resistance seen at 1.4835 and more importantly above resistance at 1.4866 that calls for a rally to 1.5282 on the way higher to 1.5836 and above.

Only an unexpected break below 1.4495 will invalidate our bullish outlook.

R3: 1.4955

R2: 1.4866

R1: 1.4835

Pivot: 1.4795

S1: 1.4738

S2: 1.4685

S3: 1.4615

Trading recommendation:

We remain long EUR from 1.4840 with stop placed at 1.4490. If you are not long EUR yet, then buy a break above 1.4835 or more importantly buy a break above 1.4866 and use the same stop at 1.4490.

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

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USD/JPY - Daily

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USD/JPY - 4 Hourly

Wave summary:

We continue to expect support at 119.30 that will be able to protect the downside for a break above minor resistance at 120.39 and more importantly a break above resistance at 121.33 that will confir, that red wave iii higher toward 123.67 is unfolding. The ideal target for wave v/ and 3 remains being seen at 126.54.

Only an unexpected break below support at 119.30 will invalidate the immediately bullish count, but no invalidate the long-term count calling for more upside closer to 126.54 to complete wave 3.

R3: 121.33

R2: 120.67

R1: 120.39

Pivot: 120.00

S1: 119.75

S2: 119.58

S3: 119.30

Trading recommendation:

Our stop at 120.15 was hit for a break-even trade. We will buy EUR again here at 120.00 with stop placed at 119.25.

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Technical analysis of EUR/USD for Feb 20, 2017

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When the European market opens, some Economic Data will be released, such as Consumer Confidence and German PPI m/m. The US today 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: 1.0669.

Strong Resistance:1.0662.

Original Resistance: 1.0652.

Inner Sell Area: 1.0642.

Target Inner Area: 1.0617.

Inner Buy Area: 1.0592.

Original Support: 1.0582.

Strong Support: 1.0572.

Breakout SELL Level: 1.0565.

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 20, 2017

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In Asia, Japan will release the Trade Balance, and the US today will not release any Economic Data. So, there is a probability the USD/JPY will move with low volatility during this day.

TODAY'S TECHNICAL LEVEL:

Resistance. 3: 113.50.

Resistance. 2: 113.28.

Resistance. 1: 113.06.

Support. 1: 112.78.

Support. 2: 112.57.

Support. 3: 112.34.

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 USDX for February 20, 2017

The index performed a rebound around the 100.44 level following another sellers' wave, but it seems that we could expect further bullish moves above the 200 SMA in th H1 chart, targeting the key resistance zone of 101.43. If the USDX makes a breakout over there, the doors will be opened for another rally towards 102.39. Meanwhile, on the downside, we can project the 99.84 level as the next key interest area.

USDXH1.png

H1 chart's resistance levels: 101.43 / 102.38

H1 chart's support levels: 100.44 / 99.84

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 100.44, take profit is at 99.84 and stop loss is at 101.06.

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Daily analysis of GBP/USD for February 20, 2017

The pair finished last week within a bearish tone as it managed to consolidate below the 200 SMA in the H1 chart after a sharp decline towards 1.2410. Currently, the GBP/USD pair is trying to extend such a fall to test the 1.2360 level, but the bears may get some bullish momentum and eventually it can perform a slight corrective rebound. The MACD indicator is still hovering in a negative territory.

1487515281_GBPUSDH1.png

H1 chart's resistance levels: 1.2480 / 1.2561

H1 chart's support levels: 1.2414 / 1.2360

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 1.2480, take profit is at 1.2561 and stop loss is at 1.2398.

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