EUR/JPY fundamental analysis for February 21, 2017

EURJPY is bearish since the price bounced off from 121.30. Currently both currencies in the pair are quite strong in fundamental perspective. Today in the Tokyo session, JPY Flash Manufacturing PMI was published at 53.5 which was expected to be 52.1. It pushed JPY into a greater strength against EUR. Later EUR also had some mixed news outcomes, German Flash Manufacturing PMI was published at 57.0 which was expected to be 56.2. French Flash Manufacturing PMI was published at 52.3 which was expected to be 53.5 and EUR Flash Manufacturing PMI at 55.5 which was expected to be 55.0. EUR is having quite positive outcomes of the fundamental events today but still JPY is strengthening against EUR and it is expected, as per price action context, that the price will reach much lower points soon.

Now let us look at the technical view of the market, the bears are in total control in the EUR/JPY pair after 121.30 was rejected with confluence to 20 EMA. At the moment the price is very close to the support level 119.50 and if the support level is broken with a daily close below, it is expected that the price will reach the 116.50-30 support area. On the other hand, if we observe any rejection off the support 119.50 we will be looking forward to buy but with caution as the bears currently control this pair.

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GBP/USD fundamental analysis for February 21, 2017

GBP had a dramatic fall today towards 1.2416 and currently is showing some volatility off the support area. Today GBP inflation report was held, where it had some negative outcome about inflation rate hike and Public Sector Net borrowing which came out at -9.8B which was expected to be -14.4B. It led to a marked fall in this pair. On the other hand, US Flash Manufacturing PMI is expected to be 54.7 which was previously 55.0 and US Flash Services PMI is expected to be 55.8 which was previously 55.6. A good amount of volatility is expected after the USD news is published in the market.

Now let us look at the technical view. At the moment the market is very corrective and showing lower highs towards the support. The price is currently rejecting from the support area between 1.2416 and 1.2385. If the price remains above the support area, it is expected that the price will move higher towards 1.2515-50 resistance area. On the other hand, if the price shows a daily close below 1.2385, the bias will be changed directly to bearish and we will target 1.2120 as the next downward target for this pair.

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Daily analysis of GBP/USD for February 21, 2017

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Overview

The GBP/USD pair keeps fluctuating near the intraday bullish channel's support, and the price faces negative pressure from the EMA50 and stochastic, which make the price mission to continue the bullish trend difficult. In general, we will keep our bullish trend expectations in the upcoming period unless breaking 1.2339 level and holding below it, where breaking this level will stop the bullish correctional scenario; it may push the price to head towards the previously recorded bottom at 1.1997, pointing that the waited positive targets begin at 1.2550 and extend to 1.2720.

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Daily analysis of USD/JPY for February 21, 2017

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Overview

The USD/JPY pair shows positive trading. Early this day the pair approached the critical resistance at 113.97. It represents one of the next trend keys besides the support that has declined to 112.30. Let us remind you that the price needs to surpass one of these levels to confirm its next targets clearly. Therefore, our neutral attitude will remain valid until now, reminding you that breaching 113.97 will lead the price to recover and target 118.00 level mainly. Breaking of the level of 112.30 will return the price to the previously breached bearish channel to head towards 111.60 then 110.00 as the next main station. The expected trading range for today is between 112.30 support and 114.70 resistance.

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Daily analysis of Gold for February 21, 2017

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Overview

The price achieved a break to the minor bullish channel's support, and stochastic provides negative signal now that supports the continuation of the decline in the upcoming period, to make the bearish bias preferred on the intraday basis, and the target is testing the main bullish channel's support at 1,218.50 mainly, pointing that we will be waiting for a bullish rebound after hitting the mentioned target to resume the main bullish trend. Therefore, we prefer the domination of the negative pressure on the upcoming trading until breaching 1,236.00 and holding above it, where this breach will allow the price to regain its bullish track, and its main targets begin at 1,249.94 and extend to 1,270.00.

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Daily analysis of Silver for February 21, 2017

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Overview

The price pushes negatively on the critical support at 17.90 to move below it now, which provides signals for potential test to the critical support at 17.43 before it returns to resume the main bullish trend. Now, monitoring the upcoming trading is important especially the stability of the price according to 17.90 level, where the price needs to step above it again to reinforce the chances for regaining the bullish track that its main targets begin at 18.30. The expected trading range for today is between 17.80 support and 18.30 resistance.

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USD/CAD intraday technical levels and trading recommendations for February 21, 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 21, 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 was needed to allow further bearish decline toward 0.7100 (note the previous bearish DAILY candlesticks within the SELL-Zone).

The current bearish pullback toward 0.7100 should be watched for possible bullish price action.

Otherwise, bearish persistence below 0.7100 will probably allow further bearish fall towards 0.6960.

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Global macro overview for 21/02/2017

Global macro overview for 21/02/2017:

The Monetary Policy Meeting Minutes from the Reserve bank of Australia had provided a few interesting remarks regarding the economy and monetary policy. The RBA maintains its view that the economy will grow around 3% annually over the next few years, as inflation gradually returns above its 2% target. Moreover, the minutes said, that the 0.5% contraction in real GDP in the third quarter reflected "some temporary factors, including disruptions to coal supply and bad weather and this weakness, was not expected to have continued into the December quarter and the forecasts for quarterly GDP growth were little changed." It is worth to mention here about the recent trade deficit data from Australia, as the falling deficit on the current account will strengthen the Aussie above the ceiling of 0.8000 USD. Thanks to the boom in commodity markets such as coal and iron ore, which are important export commodities of Australia, the current account deficit declined in the fourth quarter to 1.5% of GDP, compared with a year earlier noted down 5.5%. Nevertheless, Aussie might still be undervalued as it strengthened only 6.2% during the last 12 months, while at the same time, the Russian Ruble gained against the Dollar 29.6%, the Brazilian Real appreciated by 27.5% and the South African Rand recorded 16.3% upsurge. In conclusion, the Aussie is lagging here and might skyrocket higher if the commodity market uptrend prevails.

Let's now take a look at the AUD/USD technical picture at the H4 time frame chart. The bearish divergence has made the price to correct towards the level of 0.7660 at the time of writing, but there is still a chance for a further decline towards the next support at the level of 0.7606 before the uptrend resumes.

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Intraday technical levels and trading recommendations for GBP/USD for February 21, 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 21, 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 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 will remain trapped within the depicted consolidation range (1.0570-1.1400).

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The longer 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 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 1.0570-1.0500 stands as a prominent demand zone to be watched for a valid bullish entry (note the bullish Head & Shoulders Pattern with the initial target at 1.0800).

Otherwise, further decline can be executed towards 1.0400 if a break below 1.0570 is achieved.

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Analysis of gold for February 21, 2017

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Recently, gold has been trading downwards. The price tested the level $1,228.02. On the daily time frame, I found successful rejection from strong recistance at the price of $1,244.00. I found bearish piercing pattern, which is a sign that gold may go lower. Watch for potential selling opportunities. First downward target is set at the price of $1,221.00.

Daily Fibonacci levels:

Resistance levels:

R1: $1,239.80

R2: $1,241.40

R3: $1,243.90

Support levels:

S1: $1,234.75

S2: $1,233.15

S3: $1,230.60

Trading recommendations for today: watch for potential selling opportunities.

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Global macro overview for 21/02/2017

Global macro overview for 21/02/2017:

The Eurozone Composite PMI for February hit the highest level in 70 months. The Markit flash PMI Manufacturing Index rose to 55.5 for February from 55.2 in the previous month, while market participants expected a slight decline to 55.0. Moreover, the services sector strengthened to 55.6 versus the previous reading of 53.7, reaching the highest level for over five years. Overall, the flash PMI Composite Index rose to 56.0 from 54.4 in January and this was the strongest reading for 70 months. The main contributor to the overall PMI results was Germany again, with its Composite PMI at the level of 56.1 (versus 54.8 expected and 54.4 prior). Moreover, the German Manufacturing PMI rose to 57.0 from 56.4 in the previous month and it was the highest reading for 69 months. In conclusion, a rather upbeat data release from Eurozone is the result of strong labor market conditions and fast pace of the new business start-up (the inflation pressures continue to intensify as well).

Let's take a look at the EUR/JPY technical picture on the H1 time frame after the data was released. The price is currently testing the golden trend line around the level of 119.78, which is very close to the technical resistance at the level of 119.69 as well. Any bounce from this level would indicate a further rally towards the important resistance area between the levels of 120.22 - 120.34. On the other hand, any strong bearish pressure will lead to a violation of this support and the drop towards the next support at the level of 119.31.

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Trading plan for 21/02/2017

Trading plan for 21/02/2017:

On Tuesday 21st of February, there will be many economic releases during the European and American trading sessions and the main focus will be on the Inflation Report Hearings in the UK and Flash Manufacturing PMI data release from the US.

EUR/USD analysis for 21/02/2017:

Today's PMI Manufacturing data are expected to drop just slightly to the level of 54.7 points from 55.0 a month ago, which means that another round of support for the manufacturing rebound is expected in today's data. If the forecast is correct, the index will inch up to a 29-month high and provide more evidence that this part of the economy is again posting moderate growth on a consistent basis.

Let's take a look at the EUR/USD technical picture at the H4 time frame. The price is getting closer to the technical support at the level of 1.0519 and this support might get violated as the larger time frame trend is still bearish. Any break out below the level of 1.0519 will open the road towards the next technical support at the level of 1.0452.

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GBP/USD analysis for 21/02/2017:

The bank of England Governor Mark Carney and other policy makers will testify to the Treasury Select Committee today from 10:00 am GMT. Markets expect Carney to answer the questions currently that are currently important for UK economy, like wages, household debt and inflation. Probably some rate hike questions too with Brexit the ever present casting a shadow, so higher volatility is expected.

According to the technical picture at the H4 time frame, the GBP/USD pair might finally break out of the triangle. Any violation of the level of 1.2381 will open the road towards the levels of 1.2347 and 1.2251. On the other hand, any violation of the level of 1.2523 will open the road towards the level of 1.2581 and 1.2700.

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Market snapshot: Crude Oil breaking out of the range on Tuesday 21st February 2017

After the last week EIA stockpiles data ( better than expected) the Crude Oil prices were trading inside of the trading range between the levels of 52.70 and 53.70.Today the price is clearly breaking out from the range and it is heading towards the next technical resistance at the level of 54.32. If this level is violated, then the next technical resistance is seen at the level of 55.23.

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Technical analysis of USD/CHF for February 21, 2017

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Overview:

  • The USD/CHF pair has faced strong support at the level of 0.9974 because resistance has become support. Hence, the strong support is already seen at the level of 0.9974 and the pair is likely to try to approach it in order to test it again. However, if the pair fails to pass through the level of 0.9974, the market will indicate a bullish opportunity above the new support level of 0.9974 (the level of 0.9974 coincides with a ratio of 23.6% Fibonacci). Moreover, the RSI starts signaling a downward trend, as the trend is still showing strength above the moving average (100). Since the trend is above the 23.6% Fibonacci level, the market is still in an uptrend. From this point, the market is indicating a bullish opportunity above 0.9974 so it will be good to buy at 0.9974 with the first target of 1.0045. It will also call for an uptrend in order to continue towards 1.0101 and 1.0158. The daily strong support is seen at 0.9974. However, the stop loss should always be taken into account, thus, it will be reasonable to set your stop loss at the level of 0.9917.

Trading recommendations:

  • The support levels are seen at 0.9974 and 1.0045. Then, it is will be useful to buy above the spot of 0.9974 and 1.0045 with the targets of 1.0101 and 1.0158. On the other hand, the stop loss should be placed below the price 0.9974.
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Technical analysis of NZD/USD for February 21, 2017

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Overview:

  • The trend of the NZD/USD pair movement was controversial as it took place in a narrow sideways channel. Amid the previous events, the price is still trading between the levels of 0.7180 and 0.7057. Also, the daily resistance and support are seen at the levels of 0.7179 and 0.7057 respectively. Therefore, it is recommended to be cautious while placing orders in this area. So, we need to wait until the sideways channel is completed. This week, the market moved from its bottom at 0.7118 and continued rising towards the top of 0.7057. Today, on the one-hour chart, the current rise will remain within a framework of correction. However, if the pair fails to pass through the level of 0.7179, the market will indicate a bearish opportunity below the strong resistance level of 0.7179 (the level of 0.7179 coincides with the ratio of 61.8% Fibonacci). Since there is nothing new in this market, it is not bullish yet. Sell deals are recommended below the level of 0.7179 - 0.7118 with the first target at 0.7057. If the trend breaks the support level of 0.7057, the pair is likely to move downwards continuing the development of a bearish trend to the level 0.6982 in order to test the daily support 2.
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GBP/USD analysis for February 21, 2017

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Recently, the GBP/USD pair has been trading downwards. The price tested the level 1.2428. According to the 4H time frame, I found successful rejection from supply trendline. There is a doji candle and supply bars. My advice is to watch for potetntial selling opportunties. Downward targets are set at the price of 1.2385 and 1.2350.

Resistance levels:

R1: 1.2455

R2: 1.2460

R3: 1.2470

Support levels:

S1: 1.2437

S2: 1.2430

S3: 1.2420

Trading recommendations for today: watch for potential selling opportunities.

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Technical analysis of USDX for February 21, 2017

The Dollar index is making higher highs and higher lows in the short term. As explained in the previous analysis there are a lot of chances that the low at 99.25 was a cycle low and a new uptrend has started. Key for this bullish scenario is the level of 99.25.

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The Dollar index bounced off the 50% retracement. Resistance is the recent high at 101.80 area. Breaking above it will be a bullish sign and will decrease the chances of success of the bearish Head and Shoulders pattern explained in previous posts.

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Black line - neckline support

Green line - trendline support

As explained in the previous posts the low at 99.25 is very possible an important long-term low as the wave 4 could already be complete and the next legup can already have started. Resistance is at 101.70 at the tenkan-sen (red line indicator). Last week the prices got rejected there. We could still be forming the right hand shoulder, but the bears will soon need to break below 100.35 in order for this scenario to still be valid.

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Technical analysis of gold for February 21, 2017

Gold price remains above critical support and below short-term resistance. On a break above $1,240-45 I expect a minimum target of $1,280 to be achieved if not at $1,320. Trend remains bullish.

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Black line - resistance

Blue line - support

Gold continues to trade above the Ichimoku cloud and above the trend line support. Resistance is at $1,240-45. Breaking it will be a bullish short-term signal. Trend remains bullish despite the short-term consolidation. Bulls do not want to see support at $1,225 broken.

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Gold price is trading above the Ichimoku cloud on a daily basis. This confirms bullish trend on a daily level. If Gold price manages to break to new short-term highs our target would be an equal leg up at a minimum at $1,280. If the upward move gets extended by 1.618% we should expect $1,320 to be reached.The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of USD/JPY for February 20, 2017

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USD/JPY is expected to trade with bullish bias above 113.00. Despite the recent consolidations, the pair stands firmly above its key horizontal level at 113.00, which is likely to limit any downward attempts. The relative strength index is turning up now, and should call for a new rebound. In which case, as long as 113.00 is not broken, look for a new rise to 113.80 and 114.30 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 113.80 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 112.15. The pivot point is at 113.00.

Resistance levels: 113.80, 114.30, and 114.55

Support levels: 112.70, 112.15, and 111.60

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Technical analysis of USD/CHF for February 21, 2017

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USD/CHF is expected to trade in higher range as the bias remains bullish. The pair is consolidating but is still trading above its key support at 1.0000, which should limit the downside potential. The relative strength index is above its neutrality level at 50 and lacks downward momentum.

As long as 1.0000 holds as a support, look for a further upside toward 1.0050. A break above this level would call for a further advance toward 1.0075.

Resistance levels: 1.0075, 1.0100, and 1.0135

Support levels: 1.000, 0.9975, and 0.9930

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Technical analysis of NZD/USD for February 21, 2017

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NZD/USD is under pressure. The pair is consolidating around its 20-period and 50-period moving averages and is trading below its key resistance at 0.7190, which should limit the upside potential. The relative strength index is below its neutrality level at 50 and lacks upward momentum. Even though a continuation of technical rebound cannot be ruled out, its extent should be limited. As long as 0.7190 holds on the upside, the pair is likely to return to its next support at 0.7130. A break below this level would call for a further decline toward 0.7110.

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 0.7130. A break below this target will move the pair further downwards to 0.7110. The pivot point stands at 0.7190. 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: 0.7130, 0.7110, and 0.7070

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Technical analysis of GBP/JPY for February 21, 2017

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GBP/JPY is expecteв to trade Further upside. The pair is trading above its rising 50-period moving average, which plays support role and maintains the upside bias. The relative strength index is above its neutrality level at 50 and lacks downward momentum. Additionally, 140.80 is playing a key support role, which should limit the downside potential. As long as this key level is not broken, look for a further upside toward 141.95. A break above this level would call for a further advance toward 142.40.

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 142.40 and the second one at 142.40. 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 139.80. The pivot point is at 140.80.

Resistance levels: 141.95, 142.40, and 143.00

Support levels: 140.50,139.80, and 139.50

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Elliott wave analysis of EUR/NZD for February 21, 2017

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Wave summary:

We continue to look for a firm break above resistance at 1.4866 that finally will confirm that a long-term low is in place at 1.4495 and a new impulsive rally higher in wave 3 has begun. The first minor targets to look for is seen at 1.5282 and at 1.5516 on the way towards 1.5836 that is expected to mark the first more substantial resistance. But first we need that break above 1.4866.

R3: 1.5000

R2: 1.4945

R1: 1.4866

Pivot: 1.4800

S1: 1.4745

S2: 1.4675

S3: 1.4620

Trading recommendation:

We are long EUR from 1.4844 with stop placed at 1.4490. If you are not long EUR yet, then 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 21, 2017

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Wave summary:

We continue to look for upside acceleration in red wave iii toward 123.67, but first resistance at 120.65 and more importantly resistance at 121.28 needs to be overcome. Once resistance at 121.28 has been broken there should not be much in the way toward the 123.67 target.

Short-term, we will ideally see minor support at 119.90 be able to protect the downside, but only a break below support seen at 119.58 will indicate that red wave ii still is unfolding.

R3: 121.28

R2: 120.65

R1: 120.39

Pivot: 120.20

S1: 119.90

S2: 119.79

S3: 119.58

Trading recommendation:

We are long EUR from 120,00 with stop placed at 119.25. If you are not long EUR yet, then buy a break above 120.65 or above resistance seen at 121.28 and use the same stop at 119.25.

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Daily analysis of major pairs for February 21, 2017

EUR/USD: This pair did nothing significant on Monday: It only moved sideways in the context of a bearish outlook. Some considerable movement might occur this week, but it may not be as significant as what we would see next week. Further bearish movement is expected in the market, as price targets the support lines at 1.0600, 1.0550 and 1.0500.

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USD/CHF: Here, it can be seen that the psychological level at 1.0000 has become insignificant because price just goes above and below it at will, while the level offers little resistance to that play. 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 price would do today.

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

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USD/JPY: This currency trading instrument simply went flat yesterday, and the position of the market is currently dicey. The bias is not very bullish or very bearish (at least in the short-term). It is OK to wait for price to assume a protracted directional movement, which would most probably be in favor of bulls in the long run.

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EUR/JPY: This cross pair also did nothing significant on February 20, 2017. The near-term bias is bearish, and there is likelihood that price could go further downwards today or tomorrow, reaching the demand zones at 119.50 and 119.00. As it has often been mentioned, this does not rule out the possibility of a strong pullback that may occur very soon.

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Technical analysis of EUR/USD for Feb 21, 2017

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When the European market opens, some Economic Data will be released, such as Flash Services PMI, Flash Manufacturing PMI, German Flash Services PMI, German Flash Manufacturing PMI, French Flash Services PMI, French Flash Manufacturing PMI and French Final CPI m/m. The US will release the economic data, too, such as Flash Services PMI and Flash Manufacturing PMI, so, amid the reports, EUR/USD will move in a low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Breakout BUY Level: 1.0642.

Strong Resistance:1.0635.

Original Resistance: 1.0625.

Inner Sell Area: 1.0615.

Target Inner Area: 1.0590.

Inner Buy Area: 1.0565.

Original Support: 1.0555.

Strong Support: 1.0545.

Breakout SELL Level: 1.0538.

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 21, 2017

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In Asia, Japan will release the All Industries Activity m/m and Flash Manufacturing PMI data, and the US will release some Economic Data, such as Flash Services PMI and Flash Manufacturing PMI. So, there is a probability the USD/JPY will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Resistance. 3: 113.69.

Resistance. 2: 113.47.

Resistance. 1: 113.25.

Support. 1: 112.97.

Support. 2: 112.76.

Support. 3: 112.53.

Disclaimer: Trading Forex (foreign exchange) on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

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

Daily analysis of USDX for February 21, 2017

USDX is being supported by the 200 SMA at H1 chart after the index stayed in sideways during the US holidays on Monday. The resistance level of 101.43 is still a feasible target to the upside, as long as USDX remains trading above that moving average. However, if the index breaks the 100.44 level, then we can expect further declines to test the 99.84 level.

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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 21, 2017

GBP/USD is finding dynamic resistance across the board at 200 SMA in the H1 chart and we're expecting to see some pullbacks in coming hours. If that happens, one decline to test the 1.2414 level is highly likely to happen and a breakout below there should open the doors to test the 1.2360 zone. MACD indicator is reaching overbought conditions, favoring that scenario.

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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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Daily Video Analysis on AUD/JPY - 20th February 2017

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

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

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USD/CHF: profit target reached perfectly, prepare to turn bearish

The price shot up and reached our profit target perfectly. We now prepare to turn bearish below 1.0030 resistance (Fibonacci retracement, horizontal overlap resistance, and Fibonacci extension) for a push down to 0.9961 support (Fibonacci retracement, recent swing low support, and horizontal overlap support).

RSI (34) is approaching the major resistance at 69%.

Sell below 1.0030. Stop loss is at 1.0071. Take profit is at 0.9961.

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USD/JPY: remain bullish above strong support

We remain bullish above 112.59 support (Fibonacci retracement, Fibonacci extension, horizontal overlap support) for a push up to 113.49 resistance (Fibonacci retracement, horizontal overlap resistance).

Stochastic (21,5,3) is seeing strong support above the 8% level.

Buy above 112.59. Stop loss is at 112.29. Take profit is at 113.49.

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AUD/JPY: prepare to buy above the major support

We prepare to turn bullish above the major support at 86.34 (Fibonacci retracement, Fibonacci extension) for a push up to 87.48 resistance (Fibonacci retracement, horizontal overlap resistance).

Stochastic (21,5,3) is seeing strong support above our 6% level signaling a bounce is impending.

Buy above 86.34. Stop loss is at 85.92. Take profit is at 87.48.

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USD/JPY fundamental analysis for February 20, 2017

Last week the USD/JPY pair showed a great amount of exhaustion after the price reached near the resistance area 115.00-20. A good amount of selling pressure is still in play though USD had some positive fundamental reports last week. Today the USA is having bank holiday due to President Day but USD seemed to gain some strength against JPY due to Trade Balance deficit of JPY at 0.16T which was expected to be 0.28T. This week can be in favor of JPY because of confused atmosphere about Trump's ability to run the US government, which is making USD a bit weaker. In this case, upcoming FOMC meeting on Wednesday will be very crucial for USD to show the upcoming moves against JPY, till then JPY is expected to gain strength against USD.

Now let us look at the technical view, the price is currently rejecting from the 20 EMA resistance and 113.26 horizontal resistance level. As of the prior candles in H4 chart, the bulls seemed to be weaker while pushing against the resistance and currently the bears are taking over. It is expected that in the short term, the price will hit the support 112.50 and if 112.50 is broken with a daily close we will be looking for a lower target towards 110.60 in the future. Though there are very less chances for the bulls to get back in power, for the reverse situation. If the price breaks above 113.26, we will be looking forward for buying with a target towards 115.20 again.

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