AUD/USD fundamental analysis for March 6, 2017

After breaking below the rising channel support USD had been dominating AUD until last Friday. Having positive ISM Non-Manufacturing PMI, USD failed to gain some strength over AUD. After the weekly close of the market AUD is still stronger than USD with a push of Retail Sales positive report which met the expected percentage of 0.4% which previously was -0.1%. Though MI Inflation Gauge report was negative at -0.3% which previously was 0.6%, it did not really affect the gains of AUD today. Today USD has Factory Orders report which previously was at 1.3% but today forecasted to be at 1.1%. During the news, the pair is expected to have some volatility today and a daily close today will decide the upcoming move in this pair.

Now let us look at the technical view, the price has reached the resistance at 0.76 and currently stalling below it. As of USD Factory orders report, it is going to be published soon, a good amount of volatility is expected to hit the pair. It will be better to wait for a daily close above the resistance 0.76 to understand the bullish pressure in this pair and look for buying with a target towards 0.7690 or daily close below the last 4h low, which is at 0.7585. If it is taken out on the downside we will be looking forward to sell with a target towards 0.7530.

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Elliott wave analysis of EUR/NZD for March 6, 2017

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Wave summary:

The rally from 1.4554 is just as strong as we expected and more upside continues to be expected closer to 1.5286, where wave [iii] will be 200% of the length of wave [i]. Short-term minor support is seen at 1.4999, which ideally will protect the downside for the rally higher to 1.5286 before a shallow correction is seen in wave [iv].

R3: 1.5286

R2: 1.5193

R1: 1.5140

Pivot: 1.5100

S1: 1.5000

S2: 1.4945

S3: 1.4877

Trading recommendation:

We are long EUR from 1.4840 and we will move our stop to break-even. If you are not long EUR yet, then buy near 1.4999 or upon a break above 1.5100 and use the same stop at 1.4840.

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Elliott wave analysis of EUR/JPY for March 6, 2017

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Wave summary:

We have seen nice small five-wave rally up from the 118.19, which we count as a minor wave i and wave ii is currently unfolding for a corrective decline towards 119.97 before higher in wave iii towards 123.31 and possibly even above.

In the short term a break above minor resistance seen at 120.86 will be an indication that wave ii has completed and wave iii higher is unfolding. Even if support at 119.97 should be broken, that will extend the correction in wave ii closer to 119.30, but the overall count remains the same, calling for more upside pressure soon.

R3: 122.52

R2: 121.76

R1: 121.28

Pivot: 120.50

S1: 120.25

S2: 119.97

S3: 119.47

Trading recommendation:

We are long EUR from 119.86 with stop placed at 118.60. If you are not long EUR yet, then buy near 119.97 or upon a break above 120.86 and use the same stop at 118.60.

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EUR/USD fundamental analysis for March 6, 2017

EUR/USD showed a good bounce on Friday after the price hit the 1.0495 support. Today EUR had some low impact economic events like Retail PMI which was previously 50.1 but today published at 49.9 and SENTIX Investor Confidence which was forecasted to be at 18.8 but showed a good positive result by rising at 20.7. With EUR getting a boost after the SENTIX today EUR/USD upward rally was intact till it reached 1.0630. On other hand, USD Factory Orders report is going to be published soon today which previously was 1.3% but today it has forecasted to be at 1.1%. If the USD news comes out with a negative outcome then EUR might get much stronger in the future.

Now let us look at the technical view, today the price has rejected from the resistance of 1.0630. Currently the price is in the middle of the range of 1.0570-1.0630 and rejection on the both side signals indecision in the market. We will be looking forward to go long in this pair only when the market shows any daily close above the resistance 1.0630 with a target towards 1.08. We will be bullish in this pair. Unless the price takes out the previous support at 1.0495, it will be bullish biased.

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GBP/USD analysis for March 06, 2017

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Recently, GBP/USD has been trading sideways at the price of 1.2260. According to the 15M time frame, I found a hidden bullish divergence on the moving average oscillator, which is a sign that selling looks risky. There is also a divergent bar, which is another sign of potential strength. My advice is to watch for potential intraday buying opportunities. I placed Fibonacci retracement to find potential target. Fibonacci retracement 50% is set at the price of 1.2275 (first target). The second target is set at the price of 1.2290 (swing high).

Resistance levels:

R1: 1.2300

R2: 1.2305

R3: 1.2310

Support levels:

S1: 1.2290

S2: 1.2285

S3: 1.2280

Trading recommendations for today: watch for potential buying opportunities due to bullish divergence in the background.

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Gold analysis for March 06, 2017

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Recently, Gold has been trading downwards. As I expected, the price tested the level of $1,229.97. According to the 1H time frame, I found a bullish divergence on the moving average oscillator, which is a sign that selling looks risky. There is also a divergent bar, which is another sign of a potential strength. My advice is to watch for potential intraday buying opportunities. I have placed Fibonacci expansion to find potential targets. The first target is set at the price of $1,239.00 and the second target is set at the price of $1,243.35.

Resistance levels:

R1: $1,237.40

R2: $1,238.50

R3: $1,240.25

Support levels:

S1: $1,233.85

S2: $1,232.75

S3: $1,230.95

Trading recommendations for today: watch for potential buying opportunities due to bullish divergence in the background.

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Trading Plan for EUR/USD and USD/JPY for March 06, 2017

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Technical outlook:

The EUR/USD 4H chart presented here indicates that a lower top is either formed or should be formed soon around 1.0700 levels. The alternate count was presented last week with a probability of a EUR/USD rally toward 1.0600 levels at least. The pair has now achieved those targets and should be getting on track lower. Please take profits if not realized yet, on the long positions initialized last week. The wave structure now looks to be a bit simplified with wave (1) produced earlier into 5 waves and followed by a flat a-b-c wave (2) as labelled here. It is still early to confirm that a top is in place since the pair can push higher through 1.0700 levels as well, which is fibonacci 0.618 resistance of drop between 1.0829 and 1.0492 levels earlier. Immediate resistance is still intact at 1.0680 levels while intermediary support is seen at 1.0492. Selling on rallies from here on is a favored strategy

Trading plan:

Please take profits on long positions and remain flat. Look to sell rallies through 1.0600 and 1.0700 levels, stop at 1.0850 and target 1.0300 and lower. Please note that targets would take a few weeks to hit but short positions can be taken now.

USD/JPY chart setups:

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Technical outlook:

The USD/JPY pair is seen to be consolidating in a cone structure as presented on the 4H time frame here. As seen here, the pair has reversed from resistance trend line from 114.75 levels on Friday last after producing a wonderful rally from sub 112.00 levels. Please book profits on long positions, taken earlier, and look to enter short positions on intraday rallies. The structure is very simple and should be looking to push lower again until prices remain below 115.00 levels going forward. Immediate resistance is seen at 114.95 levels while support is at 111.70 levels respectively. The rally produced on Friday was the final leg within the consolidation. Selling intraday rallies is a favored strategy.

Trading plan:

Please book profits on longs, taken earlier, and remain flat for now. Look to sell intraday rallies toward 114.30 levels, stop at 115.00, target 112.00 at least.

Fundamental outlook:

USD Factory orders and Durable good are scheduled today at 10:00 AM EST but the impact should be medium to light. Please focus on Technical above.

Good luck!

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USD/CAD intraday technical levels and trading recommendations for March 6, 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 the previous articles.

This week, a bullish breakout above 1.3300 (50% Fibonacci Level) is needed to enhance bullish advance towards 1.3440 and 1.3550.

Otherwise, the USD/CAD pair remains trapped within the current consolidation range (1.2970-1.3300).

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NZD/USD intraday technical levels and trading recommendations for March 6, 2017

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On December 16, the price level of 0.6960 failed to apply enough bullish pressure. Instead, 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 0.6960-0.7000 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 the bearish price action should be expected.

Bearish persistence below 0.7250 is needed to allow further bearish decline toward 0.7100 (note the previous bearish DAILY candlesticks expressed within the SELL-Zone).

As anticipated, bearish persistence below 0.7100 (Key-Level) allows further bearish movement toward 0.6960 where bullish rejection may be watched for a possible BUY entry.

On the other hand, any bullish pullback towards 0.7100 should be watched for a valid SELL entry if enough bearish rejection is expressed.

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Technical analysis of USD/JPY for March 06, 2017

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USD/JPY is expected to trade with bearish bias as the key resistance at 114.15. The pair broke below its 20-period and 50-period moving averages, which play resistance roles. In addition, the 20-period moving average is turning down, and is about to cross below the 50-period one in sight. The relative strength index is heading downward. Even though a continuation of the technical rebound cannot be ruled out, its extent should be limited.

Therefore, as long as 114.15 is resistance, look for a further downside to 113.30 and even to 112.75 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 113.30. A break below this target will move the pair further downwards to 112.75. The pivot point stands at 114.15. 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 114.60 and the second one at 115.00.

Resistance levels: 114.60, 115.00, and 115.45

Support levels: 113.30, 112.75, and 112.25

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Technical analysis of USD/CHF for March 06, 2017

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USD/CHF is under pressure. The pair is trading below its declining 20-period and 50-period moving averages, which play resistance roles and maintain the downside bias. The relative strength index is below its neutrality level at 50 and lacks upward momentum.

Federal Reserve Chairwoman Janet Yellen pointed out that an interest rate increase this month would be appropriate and that rates are likely to rise faster this year. Meanwhile, Federal Reserve Vice Chairman Stanley Fischer also said that a rate increase was justified by a run of consistently solid economic data.

On the economic data front, the ISM non-manufacturing composite index improved to 57.6 in February (vs. 56.5 expected) from 56.5 January.

To conclude, as long as 1.0135 is not surpassed, look for a further drop to 1.0060 and 1.0040 in extension.

Resistance levels: 1.0150, 1.0165, and 1.0185

Support levels: 1.0060, 1.0040, and 1.000

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Technical analysis of NZD/USD for March 06, 2017

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NZD/USD is expected to trade with bearish bias below 0.7045. The pair posted a rebound, and broke below the 20-period moving average. The relative strength index is below its neutrality level at 50 and lacks upward momentum. The upside potential should be limited by the key resistance level at 0.7045.

To sum up, as long as this key level is not broken, expect a further decline to 0.7000 and even to 0.6975 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 0.7000. A break below this target will move the pair further downwards to 0.6975. The pivot point stands at 0.7045. 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 0.7070 and the second one at 0.7095.

Resistance levels: 0.7070, 0.7095, and 0.7110

Support levels: 0.7000, 0.6975, and 0.6930

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Technical analysis of GBP/JPY for March 06, 2017

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GBP/JPY is under pressure. The pair has been supported by its declining 20-period moving average, which remains below the 50-period moving average. And the relative strength index is well below its neutrality area at 50, and lacks upward momentum. The intraday bias should remain negative.

As long as 140.15 is not broken above, further decline is preferred with 139.25 and 138.90 as targets.

The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 138.25. A break below this target will move the pair further downwards to 138.90. The pivot point stands at 140.15. 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 140.45 and the second one at 140.80.

Resistance levels: 140.45, 140.80, and 141.20

Support levels: 139.24,138.90, and 138.50

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Technical analysis of EUR/USD for March 06, 2017

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Overview:

  • The EUR/USD pair is trading around the area of 1.0585. The level of 1.0585 represents a daily pivot point. Hence, the pair has already formed minor support at 1.0563 and the strong support is seen at the level of 1.0537 because it represents the daily support 2. From this point, major resistance is seen at 1.0607. If the pair closes above the price of 1.0607, the EUR/USD pair may resume it movement to 1.0638 to test the weekly resistance 2. We expect the EUR/USD pair to move between the levels of 1.0564 and 1.0638 today. Equally important, the RSI is still calling for a strong bullish market as well as the current price is also above the ratio of 38.2% Fibonacci Expansion. As a result, buy above the weekly pivot point of 1.0585 with targets at 1.0607, 1.0638 and 1.0656 in order to test the weekly support 2. On the other hand, stop loss should always be taken into account, accordingly, it will be beneficial to set the stop loss below the last bearish wave at the level of 1.0537.
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Technical analysis of GBP/USD for March 06, 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 the coming days. 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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Global macro overview for 06/03/2017

Global macro overview for 06/03/2017:

This week looks very busy with a lot of macroeconomic data release, so let's take a look at the calendar to see when the volatility will increase. The biggest event of the week is the Non-Farm Employment Change and Unemployment Rate data release that will play a major role in the highly anticipated Fed interest rate decision later this month (180k jobs expected, 4.7% unemployment rate). There is another interest rate decision, this time from European Central Bank on Thursday, but no change in policy is expected here (0.0% rate expected). The last interest rate decision comes from Australia, but again the Reserve Bank kept the official cash rate unchanged at 1.5% at their February meeting and it is expected to leave it unchanged again this month.

The list of the other events is here:

Monday, 6. March

04:00 pm GMT - USA Durable & Factory Orders

Tuesday, 7. March

03:30 am GMT - Australia Interest Rate Decision

10:00 am GMT - Q4 Euro Zone GDP

01:30 pm GMT - USA Trade Balance

Wednesday, 8. March

11:50 pm GMT - Japan Releases Q4 GDP Figures

01:15 pm GMT - ADP Employment Change from U.S.

01:30 pm GMT - Canadian Building Permits

Thursday, 9. March

01:30 am GMT - China CPI

12:45 pm GMT - ECB Intrest Rate Decision

01:30 pm GMT - ECB Press Conference

Friday, 10. March

09:30 am GMT - UK Manufacturing & Industrial Production

01:30 pm GMT - Canadian Unemployment Rate

01:30 pm GMT - NFP Payrolls

Let's now take a look at the AUD/USD technical picture as the RBA will be the first bank to decide on the interest rate this week. The market had broken out of the dashed channel and almost reached 38%Fibo retracement at the level of 0.7518. Currently, the market conditions are oversold at the H4 time frame and the price is trading around the technical resistance at the level of 0.7606. If the RBA will not hike the interest rate, as market participants expect, then the price should move downward towards the level of 0.7518 and 0.7450. On the other hand, if the RBA will hike the interest rate, then the new high above the level of 0.7740 will be made.

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Global macro overview for 06/03/2017

Global macro overview for 06/03/2017:

Last week began with markets pricing in about a 50% chance of a hike in the federal funds rate at the Federal Open Market Committee meeting this month but ended with markets almost fully pricing in a quarter-percent hike. The set of comments from FED policymakers on Friday, including FED Chairperson Janet Yellen, indicated that a rate hike was near, perhaps at next week's monetary policy meeting. Bill Dudley, New York Federal Reserve President said last Friday: "I think the case for monetary policy tightening has become a lot more compelling", and the other Fed officials remarks were as hawkish as his. Even Yellen again reiterated her hawkish statement, saying: "We currently judge that it will be appropriate to gradually increase the federal funds rate if the economic data continue to come in about as we expect", and: "Indeed, at our meeting later this month, the Committee will evaluate whether employment and inflation are continuing to evolve in line with our expectations, in which case a further adjustment of the federal funds rate would likely be appropriate". In conclusion, the hawkish statements are very popular among the Fed policymakers, so the question remains: will the Fed deliver on March 15th and how much of the rate hike expectations are already priced-in?

Let's now take a look at a Gold technical picture at the H4 time frame. The price violated the technical support at the level of 1,225, but no follow through occurred so far. The price is now trading just below the technical resistance at the level of 1,236 and due to the oversold market conditions might try to break out above this level and test the golden trend line again from the below.

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Trading plan for 06/03/2017

Trading plan for 06/03/2017:

At the beginning of the new week, let's take a look back to review last week's important macro events:

- Interest rate hike anticipated at March FOMC meeting;

- Global growth uptick continues;

- Major stock indices closed at record highs;

- The UK House of Lords seeks Brexit bill amendments.

Global equities extended gains last week, and strong global manufacturing data suggested that economic momentum continues to improve. Yields on the 10-year US Treasury note rose strongly to 2.49% from 2.32% as investors moved to price in an interest rate increase from the US Federal Reserve.

EUR/USD analysis for 06/03/2017:

The most important event of the day will be US Factory Orders released at 03:00 pm GMT. Today's data are expected to bring more good news from manufacturing sector of the economy in the US. The market participants are expecting factory orders in January rising 1.1% in the monthly comparison, which translates to an implied 3.8% year-on-year advance. If the expectations are met, then the rebound in factory orders will strengthen. This might be used by the Fed as another evidence of strong US economy and a good reason to justify the interest rate hike in March.

Let's now take a look at the EUR/USD technical picture at the H1 time frame. The bulls have managed to break out above the technical resistance at the level of 1.0630, but the overbought trading conditions and clear bearish divergence at this time frame indicate a corrective cycle that might target the next support at the level of 1.0591.

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Market snapshot - GBP/USD retreats to 61%Fibo again

The price of this pair failed to break out above the dashed channel line and retreated back to the 61%Fibo support at the level of 1.2261. The market conditions look overbought and the price might fall even lower, targeting the support at the level of 1.2251 - 12241 for a primary bounce. Any violation of the level of 1.2214 will likely extend the sell-off and then the next support is seen at the level of 1.2140 (78% Fibo support).

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Market snapshot - Crude Oil falls despite growing economic optimism

Despite growing economic optimism, oil prices fell last week on increased US inventories. The price of oil is currently trading between two important levels, the technical support at the level of 52.54 and technical resistance at the level of 53.40. Any violation of one of these levels will cause a significant move, either to the upside or to the downside.

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Technical analysis of USDX for March 6, 2017

The Dollar index got rejected at the 102 area as we expected. The price pulled back towards 101.30. Support between 101.25 and 101 is very important for the continuation of the uptrend. A break below it will put 99.25 low to the test, as the Head and Shoulders pattern will have increased its chances of success.

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Blue lines - bullish channel

The Dollar index has short-term support at 101.25-101. We could test that area of support today. Resistance is at 101.80. The bulls now need a higher low, as the pullback we expected from last week, materialized fast on Friday.

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Black line -neckline support

Green line - long-term support trend line

Blue areas - Head and Shoulder pattern

The Dollar index reached the same levels as the left hand shoulder and got rejected. We are at very important junction. As I pointed out last week, at 102 I preferred to be bearish as the overbought short-term conditions favored the pullback. The weekly oscillators however show me that we could have more downside pressures in Dollar, especially as we close in the FOMC date and the ECB meeting.

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Technical analysis of gold for March 6, 2017

Gold price made a strong pull back and new lows last week but on Friday we saw a small bullish reversal signal. Prices reversed from $1,223 to above $1,235. Support at the last minute was held; however, it remains a negative sign the fact that we have broken below the $1,245 area.

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Purple lines - bigger correction scenario

Blue lines - correction is over scenario

Gold price is trading below the Ichimoku cloud in the 4 hour chart. Trend is bearish for the short-term. Above I portray my two scenarios, both bullish for the medium to longer-term. However, the 1st scenario implies that a rejection around $1,250 could push price back towards $1,200-$1,180. A break above resistance at $1,250 could signal that an important low is in.

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Black line - long-term resistance trend line.

Very bad weekly candle was made last week; however, $1,220 support was held and as the tenkan-sen (red line indicator) is coming fast upwards from lower levels, we might find support at $1,220 stronger than initially expected and a cross between the tenkan- and kijun-sen could provide a bullish signal. Overall, my longer-term view remains bullish.

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Technical analysis of EUR/USD for Mar 06, 2017

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When the European market opens, some Economic Data will be released, such as Sentix Investor Confidence and Retail PMI. The US will release the economic data, too, such as Factory Orders m/m, so, amid the reports, EUR/USD will move in a low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Breakout BUY Level: 1.0662.

Strong Resistance:1.0655.

Original Resistance: 1.0645.

Inner Sell Area: 1.0635.

Target Inner Area: 1.0610.

Inner Buy Area: 1.0585.

Original Support: 1.0575.

Strong Support: 1.0565.

Breakout SELL Level: 1.0558.

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 Mar 06, 2017

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In Asia, today Japan will not release any Economic Data, but the US will release the Factory Orders m/m 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: 114.42.

Resistance. 2: 114.20.

Resistance. 1: 113.97.

Support. 1: 113.70.

Support. 2: 113.48.

Support. 3: 113.25.

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 major pairs for March 6, 2017

EUR/USD: This market moved slightly south last week, reaching support line at 1.0500, and then bouncing upwards on Friday. The upwards bounce is supposed to be a temporary rally in the context of a downtrend, unless price goes above the resistance line at 1.0700 (which would inevitably lead to a new bullish outlook).

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USD/CHF: There is a faint bullish signal on this pair, and price would continue going upwards only as long as the EUR/USD continues moving south (irrespective of occasional rally attempts on the latter). A movement below the support level at 1.0000 would lead to a bearish signal, while a movement above the resistance level at 1.0150 would reinforce the extant bullishness.

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GBP/USD: The GBP/USD moved south by around 230 pips last week; thus ending the recent neutral bias on the market. Price bounced upwards on Friday, but that would most probably turn out to be an opportunity to go long in the market, while things are on sale. There is a Bearish Confirmation Pattern in the market, and the outlook on other GBP pairs is also bearish for the week.

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USD/JPY: This currency trading instrument trended upwards by 250 pips last week – from the demand level at 112.00 to the supply level at 114.50. There is a clean bullish signal in the market, which has come as a result of a bullish expectation on this instrument (as well as on other JPY pairs). The supply levels at 115.00 and 115.50 could be tested this week, and those are the initial targets for this week.

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EUR/JPY: The EUR/JPY moved up by 270 pips last week, closing above the demand zone at 121.00. There is a strong Bullish Confirmation Pattern in the 4-hour chart, and further upwards movement is expected this month, which would take price toward the supply zones at 121.50, 122.00 and 122.50.

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