AUD/JPY testing major resistance, remain bearish with a tight stop

Price has continued its rise and is now testing strong resistance at 83.69 (Fibonacci extension, horizontal overlap resistance) and we expect to see a drop from here towards 82.96 support (Fibonacci retracement, horizontal overlap support). We keep our stop loss tight at 83.95 (Fibonacci retracement).

Stochastic (21,5,3) is seeing major resistance below the 93% where we expect price to continue to drop from.

Correlation analysis: We're expecting general JPY strength with EUR/JPY and USD/JPY expecting a drop too.

Sell below 83.69. Stop loss at 83.94. Take profit at 82.96.

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USD/JPY right at our selling area, time to turn bearish

Price has finally risen to our selling area. We turn bearish looking to sell below major resistance at 112.08 (Fibonacci retracement, horizontal pullback resistance, Elliott wave theory) for a drop towards 110.50 support (Fibonacci extension, horizontal overlap support).

Stochastic (55,5,3) is reversing below our 93% resistance as we expect a strong drop from here.

Correlation analysis: We're expecting general JPY strength with AUD/JPY and EUR/JPY expecting a drop too.

Sell below 112.08. Stop loss at 112.94. Take profit at 110.50.

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Technical analysis of USD/JPY for May 24, 2017

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USD/JPY is expected to trade in a higher range. The pair accelerated on the upside after breaking above the bearish trend line since May 19. The upward momentum is further reinforced by the rising 20-period and 50-period moving averages. The relative strength index also broke above the declining trend line since May 19.

Therefore, as long as 111.40 holds on the downside, look for a further rise to 112.20 and even to 112.60 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 112.20 and the second one at 112.60. In the alternative scenario, short position is recommended with the first target at 111.10 if the price moves below its pivot points. A break of this target may push the pair further downwards, and one may expect the second target at 110.80. The pivot point is at 111.40.

Resistance levels: 112.20, 112.60, and 112.80

Support levels: 111.10, 110.80, and 110.50

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Technical analysis of USD/CHF for May 24, 2017

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USD/CHF is expected to trade with a bullish outlook. The pair broke above the declining trend line since May 19, which confirmed a bullish outlook. The rising 20-period and 50-period moving averages suggest that the prices have potential for a further advance. The relative strength index is above its neutrality level at 50.

On the economic data front, Markit U.S. Manufacturing PMI reached a preliminary estimate in May of 52.5 (estimated 53) from 52.8 in the previous month. Markit U.S. Services PMI grew in a preliminary forecast to 54 in May (expected at 53.3) compared with 53.1 in the prior month. In addition, Markit U.S. Composite PMI increased to 53.9 in a preliminary estimate in May from 53.2 in April. In other news, new home sales lowered to 569k in April (estimated 610k) compared with 642k in the previous month. Finally, the Richmond Federal Manufacturing Index dropped to 1 in May (forecasted 15) from 20 a month earlier.

Hence, as long as 0.9735 is not broken, look for another upside to 0.9790 and even to 0.9800 in extension.

Resistance levels: 0.9790, 0.9825, and 0.98555

Support levels: 0.9720, 0.9700, and 0.9665

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Technical analysis of NZD/USD for May 24, 2017

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NZD/USD is expected to trade in a higher range as the bias remains bullish. Despite the pair retreating from 0.7050 (the high of May 23), the pair is still above the key support at 0.6980, which should limit the downside potential. Even though a continuation of consolidation cannot be ruled out, its extent should be limited.

Therefore, as long as 0.6980 holds on the downside, expect a rebound with a first target at 0.7050. A break above this level would bring a new rise to 0.7080.

The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. Therefore, long positions are recommended with the first target at 0.7050 and the second one at 0.7080. In the alternative scenario, the short position is recommended with the first target at 0.6960 if the price moves below its pivot points. A break of this target may push the pair further downwards, and one may expect the second target at 0.6930. The pivot point is at 0.6980.

Resistance levels: 0.7050, 0.7080, and 0.7135

Support levels: 0.6960, 0.6930, and 0.6900

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Technical analysis of GBP/JPY for May 24, 2017

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GBP/JPY is expected to move upward. The technical picture of the pair remains positive above a bullish trend line, which emerged on May 19. The relative strength index stands firmly above its neutrality level at 50 and lacks downward momentum. In addition, 145.80 is playing a key support role, which should limit the downside potential.

As long as 144.60 holds on the downside, look for a further advance toward 145.80 and even 146.00 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 145.80 and the second one at 146.00. In the alternative scenario, the short position is recommended with the first target at 144.05 if the price moves below its pivot points. A break of this target may push the pair further downwards, and one may expect the second target at 143.75. The pivot point is at 144.60.

Resistance levels: 145.80, 146.30, and 147.00

Support levels: 144.05,143.75, and 143.00

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Trading Plan for EUR/USD and GBP/USD for May 24, 2017

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Technical outlook:

The EUR/USD bullish story continued until yesterday with the 3rd wave extension hitting into 1.1263 levels before reversing lower. The pair has broken its immediate support trend line on the hourly chart and is on the verge of breaking its first price support at 1.1161 levels as well. We can expect a pullback after that and it could well be an opportunity to sell again for a drop at least towards 1.1000 levels at least. Please note that if EURUSD continues to drop further below that, it might indicate that a meaningful top is in place at 1.1263 levels and that the long term downtrend has resumed. Also please note that the pair has formed an engulfing bearish candlestick pattern on Daily chart (not seen here), which might just be the beginning of a meaningful correction or resumption of the long-term downtrend.

Trading plan:

Look to sell through 1.1210/30 levels, stop above 1.1265, target 1.1000

GBP/USD chart setups:

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Technical outlook:

The GBP/USD pair continues into consolidation after printing highs at 1.3047 levels and dropping in an impulse manner. The movement after that could be a contracting triangle unfolding into 5 waves labeled a through e, which might be complete at 1.2999 or might print yet another lower high below 1.3030 levels before reversing lower. It is more clear that until prices remain below 1.3047 levels, GBPUSD should be looking lower. A break below 1.2950 will accelerate downside into wave 3, which should drag prices lower well below 1.2800 levels. Only a break above 1.3047 levels, would delay matters for the bearish trend to resume. Resistance should be strong during any intraday rally towards 1.3010/20 levels, while immediate support is at 1.2950 levels respectively.

Trading plan:

Please look to remain on short side, stop above 1.3047 levels, target is at least 1.2800 levels.

Fundamental Outlook:

Watch out for two major events lined up today with ECB President Draghi speaking around 08:45 AM EST and FOMC later around 02:00 PM EST.

Good luck!

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Daily analysis of major pairs for May 24, 2017

EUR/USD: This currency trading instrument experienced a shallow bearish retracement after testing the resistance line at 1.1250. That resistance line is now under siege, since the price is expected to test it again, and possibly breach it to the upside, as it goes further north. The ultimate target for this week is located at the resistance line of 1.1300.

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USD/CHF: The USD/CHF did not do anything really significant on May 23. There remains a Bearish Confirmation Pattern in the market, and a further decline in the price is anticipated as price goes towards the support levels at 0.9750, 0.9700 and 0.9650. The only thing that can change the direction of the market is a large pullback on the EUR/USD.

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GBP/USD: The Cable remains a bullish market in spite of the recent consolidation on it. More and more northward movement is anticipated this week, but there would be invalidation of the existing bullish outlook, especially when the price goes southwards by about 200 pips. The market has become quite choppy lately.

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USD/JPY: The USD/JPY has moved sideways so far this week, in the context of a downtrend. A breakout is imminent, which would most probably be in favor of bulls. Since the existing downtrend is expected to be threatened, the price may go towards the supply levels at 112.00, 112.50 and 113.00 before the end of the week.

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EUR/JPY: Just like the USD/JPY, this cross pair has also consolidated so far this week. There is a bullish indication in the 4-hour chart: The EMA 11 is above 56, while the RSI period 14 is above the level 50. A breakout to the upside is expected, which may enable the supply zones at 125.50, 126.00 and 126.50 to be tested.

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Global macro overview for 24/05/2017

Global macro overview for 24/05/2017:

The Moody's rating agency downgraded China to A1 from AA3. The last time the Moody's had changed the Chinese rating was in 1989. In the statement, the rating agency said, that rating reflects expectations that China's financial strength will erode somewhat over the coming years and stable outlook reflects the assessment that at the A1 rating level risks are balanced. Moreover, regarding the future expectations, Moody's said, that they expect that Chinese economy-wide leverage will increase further over the coming years. Indirect and contingent liabilities will increase, China's growth potential to decline to close to 5% over the next five years and the government's direct debt burden to rise gradually towards 40% of GDP by 2018 and closer to 45% by the end of the decade. In conclusion, a pretty negative downgrade with an even more negative outlook for the Chinese economy will definitely make an impact on the financial markets when properly digested.

Let's now take a look at the AUD/USD technical picture at the H4 timeframe. The AUD is a commodity currency with close ties to the Chinese economy. The market reacted negatively to the downgrade news and the price retreated from the technical resistance at the level of 0.7509. Currently, the price is testing the upper boundary of the golden channel line around the level of 0.7348. The overbought market conditions and the negative momentum might suggest a further pull-back towards the next technical support at the level of 0.7394.

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EUR/USD analysis for May 24, 2017

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Recently, the EUR/USD has been trading downwards. As I expected, the price tested the level of 1.1170. Anyway, according to the 15M time frame, I found a fake breakout of yesterday's low at the price of 1.1175. There is also a hidden bullish divergence on the moving average oscillator, which is another sign of potential strength. I have placed Fibonacci retracement to find potential upward targets. I got Fibonacci retracement 50% at the price of 1.1220 and Fibonacci retracement 61.8% at the price of 1.1230. My advice is to watch for buying opportunities today.

Resistance levels:

R1: 1.1245

R2: 1.1265

R3: 1.1305

Support levels:

S1: 1.1170

S2: 1.1150

S3: 1.1110

Trading recommendations for today: watch for potential buying opportunities.

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Analysis of gold for May 24, 2017

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Recently, the gold has been trading downwards. As I expected, the price tested the level of $1,248.00. Anyway, on the 15M time frame, I found a fake breakout of the yesterday's low at the price of $1,249.80. There is also a hidden bullish divergence on the moving average osiclator, which is another sign of potential strength. My advice is to watch for buying opportunities. I have placed Fibonacci retracement to find potential upward targets. I got Fibonacci retracement 50% at the price of $1.255.55 and Fibonacci reracement 61.8% at the price of $1,257.40. The final target is set at $1,262.50.

Resistance levels:

R1: $1.261.70

R2: $1,264.80

R3: $1,270.00

Support levels:

S1: $1,251.50

S2: $1,248.40

S3: $1,243.50

Trading recommendations for today: watch for potential buying opportunities.

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USD/CAD intraday technical levels and trading recommendations for May 24, 2017

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Since April 2016, the USD/CAD pair has been trending upward within the depicted ascending channel.

In December 2016, a bullish breakout above 1.3300 (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 (recently established top).

During the bearish pullback, the price level of 1.3300 (50% Fibonacci Level) failed to provide enough support to the pair.

This allowed a further bearish movement toward the price level of 1.2970 (61.8% Fibonacci level) where a valid BUY entry was offered in February 2017.

A few weeks ago, the bullish breakout above 1.3300 (50% Fibonacci Level) enhanced a further advance toward 1.3440 and 1.3580.

As long as the USD/CAD pair maintains bullish trading above 1.3525-1.3580 (confluence of prominent tops), the market remains strongly bullish. Otherwise, bearish pullback should be expected towards 1.3300.

The expected bullish target would be located around 1.3950 and 1.4030 (the upper limit of the depicted channel and FE 100%).

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NZD/USD Intraday technical levels and trading recommendations for May 24, 2017

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In December 2016, a bullish breakout above 0.6960-0.7000 allowed the pair to head toward the price level of 0.7100 (the key level) which failed to provide sufficient bearish pressure on the pair.

Bullish persistence above 0.7100 allowed a further advance toward 0.7250-0.7350 (Sell-Zone) where the bearish price action was expected.

Bearish persistence below 0.7250 allowed a further decline toward 0.7100 then 0.6960 which failed to provide enough support for the pair.

That is why a further fall was expected toward 0.6860 (the lower limit of the depicted BUY zone) where a bullish position was suggested in previous articles.

Recently, a bullish breakout was achieved above the depicted key level (0.6960). However, the pair failed to keep enough bullish momentum above 0.7050.

That's why, the NZD/USD pair became trapped within the depicted consolidation range (0.6860-0.6960) once again.

Note the depicted bullish 1-2-3 pattern remains valid as long as bullish fixation above 0.6900-0.6850 is maintained on a daily basis.

Any daily candlestick closure below 0.6850 invalidates the bullish scenario for the current time clearing the way initially towards 0.6770.

On the other hand, the current bullish breakout above 0.6960 should be defended to enhance further bullish movement. Expected projection target for the pattern is located around 0.7250.

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Trading plan for 23/05/2017

Forex analysis review
Trading plan for 23/05/2017

Global macro overview for 24/05/2017

Global macro overview for 24/05/2017:

The Gfk Consumer Climate benchmark from Germany has hit its highest level since 2001. Market participants expected no change from the already strong level of 10.2 points, but the fresh print was at the level of 10.4 points. This figure, yesterday's Ifo data, and the recent flash data for Germany's PMI Composite Index in May might reflect a healthy growth rate in the country. It means the estimated GDP for the second quarter might easily beat market expectations. The second quarter GDP data is scheduled for release for 15th of August 2017.

Let's now take a look at the EUR/JPY technical picture on the H4 time frame. The market is trading in a very tight range between the levels of 125.39 - 124.50. The market conditions look overbought, but the price is still trading inside of the parallel channel. Without violation of the level of 124.50 the bear camp can not take the control over this market and test the next support at the level of 123.26. Moreover, the biggest support is still between the levels of 123.26 - 121.97, so the price might bounce or trade sideways for some time when it gets there. However, if this level is clearly breached, then the bears will be in full control over this market and might target the gap to finally fill it.

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Trading plan for 24/05/2017

Trading plan for 24/05/2017:

The Moody's rating agency has cut China's rating from Aa3 to A1, which made an impact on the AUD and the Shanghai Stock Exchange. However, the vast majority of financial markets was calm overnight, with the US Dollar gaining slightly and the crude oil trading near the highs as the OPEC meeting is still in progress.

On Wednesday 23rd of May, the event calendar will be bust mostly during the US trading session, so market participants will pay attention to the Bank of Canada's interest rate decision and statement, Existing Home Sales Data, Crude Oil Inventories data from the US and FOMC Meeting Minutes.

USD/CAD analysis for 23/05/2017:

The Bank of Canada's Overnight Rate is scheduled for release at 02:00 pm GMT and global investors expect no change in the current interest rate level of 0.5%. Nevertheless, the BoC statement will be interesting to read, mainly due to a possible justification of no change of the interest rates despite the growing pressure from a hot house market in major cities.

Let's now take a look at the USD/CAD technical picture on the H4 timeframe. The market has almost hit the 61%Fibo at the level of 1.3441 and bounced back up towards the next technical resistance at the level of 1.3526. The oversold market conditions and visible bullish divergence between the price and the momentum indicator support the bullish outlook. Nevertheless, to confirm the larger rebound, the price must break out above the level of 1.3569 and head towards the level of 1.3640. Any unexpected rate hike will make this scenario possible, but in case of no hike, a move sideways or down is more probable.

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Market snapshot: EUR/USD at important support

After a rally up to the level of 1.1266, the price pulled back and currently is trading at the support at the level of 1.1170. The momentum indicator is pointing south and so is the stochastic indicator, which means a possible profit taking after the 500 pips rally. If the support at the level of 1.1170 is broken, then the next support is seen at the level of 1.1075.

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Market snapshot: Crude Oil still trades near highs

The price of the Crude Oil has hit a 78%Fibo at the level of $51.56 with a high at the level of $51.76. There are rumors that the OPEC might extend the production cuts until March 2018, so market participants keep buying at low prices. Nevertheless, there is a clear bearish divergence between the price and the momentum indicator, so the price might pull back anytime. The next support is seen at the level of $50.54.

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Fundamental Analysis of NZD/USD for May 24, 2017

NZDUSD has broken above the corrective structure resistance 0.6950 with a good amount of bullish pressure. Yesterday, we saw a bullish rejection on the daily candle which signals the presence of bears currently in the pair. Today, a Trade Balance report was published in New Zealand which showed a surplus of 578M, higher than forecast for a 268M surplus. This was bullish for NZD this morning but USD is quite stronger now, so NZD could not keep the bullish pressure for long. On the USD side today, Existing Home Sales report is due later today. The report is expected to show a decline to 5.65M from 5.71M earlier. Besides, Crude Oil Inventories report is also expected to reveal a bigger deficit of -2.4M barrels from -1.8M in the previous week. To sum up, New Zealand's trade data could not push NZD higher. However, if if upcoming US news comes positive today, we might see further bearish pressure in this pair today.

Now let us look at the technical chart. Recently, the price has broken above the resistance of 0.6950 with a daily close. Currently the price is showing some bearish pressure after the bullish rejection yesterday. The price is expected to move down to 0.6950 before showing further bullish pressure in this pair with a target towards 0.7050 resistance level. Our bullish bias in this pair will only change if the price breaks below 0.6950 with a daily close.

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Fundamental analysis of USD/CAD for May 24, 2017

USD/CAD is currently in a bearish bias after breaking below the event level of 1.3600. Today is a very important day for CAD as the Bank of Canada will announce its rate decision along with the BOC statement. The overnight rate is expected to be unchanged at 0.50%. On the USD side, today we have the existing home sales report which is expected to decrease to 5.65M versus the previous reading of 5.71M. Furthermore, the crude oil inventories report is also scheduled for release. It is expected to show a greater deficit at -2.4M which previously was at -1.8M. Today we will observe a good amount of volatility in the USD/CAD pair due to high impact economic events. USD is currently weaker against CAD and a spike is expected today on the USD side before further gain on the CAD side today.

Now let us look at the technical view. As the price broken below 1.3600 level last week, bulls are currently showing some pressure on this pair. It is expected that the price will move towards 1.3600. If the price rejects this level, then further bearish move is expected with a target towards 1.3260 support level. As today we have good number of high-impact news on the CAD side, a good amount of volatility is expected where a daily close or rejection off the 1.3600 will be considered a safe signal to trade in this pair.

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Fundamental analysis of EURJPY for May 24, 2017

EUR/JPY has been in a volatile bullish structure after breaking and retesting the level of 123.50. Today, GFK German consumer climate report was published with a positive figure at 10.4 which was expected to be at 10.2. Besides, ECB President Draghi is going to speak today about short-term interest rates and upcoming monetary policy. This event is likely to bring high volatility in this pair today. On the other hand, JPY is going through negative economic reports. Thus, yesterday the flash manufacturing PMI was published with a reduced value at 52.0 which was expected to be at 52.9. Moreover, the All Industry Activity index was negative at -0.6 versus the expected -0.4%. EUR is currently stronger than JPY fundamentally and technically and if EUR continues to gain all over the week against JPY, then further gains are expected in this pair on the EUR side.

Now let us look at the technical view. Yesterday's daily candle closed with an indecision bar and currently EUR is losing some ground against JPY on the intraday basis. We are expecting some bearish move in this pair today with a target towards 124.50 before the price bounces again off the 20 EMA to proceed much higher towards 127.50 resistance area. We are currently in bullish bias until the price breaks below 123.50 with a daily close.

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Technical analysis of EUR/USD for May 24, 2017

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When the European market opens, some Economic Data will be released,such as Belgian NBB Business Climate, German 10-y Bond Auction, and GfK German Consumer Climate. The US will release the Economic Data, too, such as FOMC Meeting Minutes, Crude Oil Inventories, Existing Home Sales, and HPI 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: 1.1231.

Strong Resistance:1.1225.

Original Resistance: 1.1214.

Inner Sell Area: 1.1203.

Target Inner Area: 1.1177.

Inner Buy Area: 1.1151.

Original Support: 1.1140.

Strong Support: 1.1129.

Breakout SELL Level: 1.1123.

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/CHF for May 24, 2017

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Overview:

  • The market is still set trader around the daily pivot point of 0.9739.
  • Yesterday, it continued to move downwards from the level of 0.9787 to the bottom around 0.9739.
  • Today, the first resistance level is seen at 0.9787 followed by 0.9847, while daily support 1 is seen at 0.9691. The USD/CHF pair broke support which turned to strong resistance at 0.9787.
  • The pair is trading below this level. It is likely to trade in a lower range as long as it remains below the resistance (0.9787) which is expected to act as major resistance today.
  • This would suggest a bearish market because the moving average (100) is still in a negative area and does not show any signs of a trend reversal at the moment.
  • Amid the previous events, the USD/CHF pair is still moving between the levels of 0.9787 and 0.9691, so we expect a range of 126 pips in coming hours.
  • Therefore, the major resistance can be found at 0.9787 providing a clear signal to sell with a target seen at 0.9691. If the trend breaks the minor support at 0.9691, the pair will move downwards continuing the bearish trend development to the level of 0.9645 and 0.9600 in order to test the daily support 3.
  • Overall, we still prefer the bearish scenario which suggests that the pair will stay below the area of 0.9787.
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Technical analysis of NZD/USD for May 24, 2017

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Overview:

  • On the one-hour chart, there is the USD/CHF pair bullish trend from the support levels of 0.6953 and 0.6985. Currently, the price is in a bullish channel. This is confirmed by the RSI indicator signaling that we are still in a bullish trending market. As the price is still above the moving average (100), immediate support is seen at 0.6985, which coincides with a golden ratio (61.8% of Fibonacci). Moreover, the second support is set at the level of 0.6953. So, the market is likely to show signs of a bullish trend around the spot of 0.6953/0.6985. In other words, buy orders are recommended above the golden ratio at 0.6985 with the first target at the level of 0.7057. Furthermore, if the trend is able to breakout through the first resistance level of 0.7057. We should see the pair climbing towards the double top (0.7089) to test it. It would also be wise to consider where to place a stop loss; this should be set below the support 3 of 0.6921.
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Daily analysis of USDX for May 24, 2017

The index is trying to recover from its recent losses and it's testing now the resistance zone of 97.41. A breakout over there can open the doors for another rally towards the 98.11 area, which is slightly above the 200 SMA. To the downside, the support level of 96.90 continues to be a solid demand area, which should give up for a decline to test the 96.25 level.

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H1 chart's resistance levels: 97.41 / 98.11

H1 chart's support levels: 96.90 / 96.25

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 96.90, take profit is at 96.25 and stop loss is at 97.56.

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Daily analysis of GBP/USD for May 24, 2017

The pair remains under a limited pressure amid latest headlines about the terrorist attack in Manchester last night, which left 19 died and several people injured. The support zone of 1.2960 is limiting the bearish's advance for the short-term and one could expect a rebound to test the 1.3038 level. By the other hand, with a breakout below 1.2960, GBP/USD could be on its way to reaching the 1.2928 level.

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H1 chart's resistance levels: 1.3038 / 1.3105

H1 chart's support levels: 1.2960 / 1.2928

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 1.3038, take profit is at 1.3105 and stop loss is at 1.2970.

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EUR/JPY approaching major resistance, prepare to sell

EUR/JPY is approaching the major resistance at 125.55 (Fibonacci extension, Elliott wave theory, swing high resistance, bearish divergence) and we expect the price to reverse from that level to at least 124.72 support (Fibonacci retracement, horizontal swing low support).

Stochastic (34,5,3) is seeing the major resistance below the 91% level from where we expect a drop. We are also seeing the bearish divergence vs price signalling that a reversal is impending.

Correlation analysis: we're expect JPY to be broadly stronger with AUD/JPY and USD/JPY facing a drop too.

Sell below 125.55. Set stop loss at 126.09 and take profit at 124.72.

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

USD/CAD remains bullish above strong support

The price has reached our buying level perfectly. We remain bullish, looking to buy above 1.3503 support (Fibonacci retracement, Fibonacci extension, horizontal overlap support, Elliott wave theory) for a push up to 1.3641 resistance (Fibonacci retracement, horizontal overlap resistance).

RSI (34) sees strong horizontal support above our 36% level.

Buy above 1.3503. Set stop loss at 1.3419 and take profit at 1.3641.

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