Analysis of Gold for June 20, 2017

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Recently, the Gold has been trading sideways at the price of $1,245.00. According to the 15M time frame, I found broken bearish flag and hidden bearish divergence on the moving average oscillator, which is a sign that buying looks risky. The short- term trend is bearish. My advice is to watch for potential selling opportunities today. Downward targets are set at the price of $1,243.00 and $1,236.00.

Resistance levels:

R1: $1,245.50

R2: $1,262.45

R3: $1,267.50

Support levels:

S1: $1,241.00

S2: $1,236.00

S3: $1,228.55

Trading recommendations for today: watch for potential selling opportunities.

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EUR/USD analysis for June 20, 2017

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Recently, the EUR/USD has been trading downwards. As I expected, the price tested the level of 1.1141. According to the 30M time frame, I found that price doesn't have enough power to reject from yesterday's low and that sellers are still present. My advice is to watch for selling opportunities today. The downward target is set at the price of 1.1100.

Resistance levels:

R1: 1.1195

R2: 1.1240

R3: 1.1270

Support levels:

S1: 1.1120

S2: 1.1095

S3: 1.1050

Trading recommendations for today: watch for potential selling opportunities.

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Trading Plan for Gold and US Dollar Index for June 20, 2017

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Technical outlook:

Gold has retraced lower towards fibonacci 0.618 support levels of the entire rally between $1,213 and $1,296 levels respectively. Furthermore, it is also a point of convergence of fibonacci 0.382 extensions of wave A, as depicted in Red around $1244.00 levels. Besides, please note that Wave A became equal to Wave C at $1,242/43 levels, which is an indication of wave C termination point. Speaking about the above convergences and also the wave counts, it looks like the yellow metal has completed wave 1 and 2 after printing lows at $1,241/42 levels yesterday. If this structure holds to be true, the next leg should be a rally from current levels toward at least $1,350.00. On the flip side, a drop below $1,241.00 might test $1,235.00 levels before turning higher again.

Trading plan:

Please remain long now, stop around $1,230.00 target $1,350.

US Dollar Index chart setups:

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Technical outlook:

The US Dollar Index is seen to be trading at 97.50 levels for now after breaking above the resistance line as seen here. Please note that the index might be unfolding into wave 4 corrective of a higher degree. It is expected to unfold into 3 waves A-B-C as depicted here. Ideally, prices should drop towards one more low and terminate into wave B, before turning higher towards wave C as depicted here. Looking into the wave structure, waves 3-3-5 could unfold before the medium-term drop could resume. Immediate resistance is seen at 97.80 levels while support is at 96.30 levels respectively. A safe strategy could be to remain flat for now and consider buy positions at a lower price near 97.00 levels. On the flip side, a continued push higher would indicate further higher targets around 99.00 levels.

Trading plan:

Please remain flat for now and consider buy positions around 97.00 levels, stop at 96.30, targeting 99.00 at least.

Fundamental outlook:

There is no major event lined up for the rest of the day.

Good luck!

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Technical analysis of NZD/USD for June 20, 2017

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Overview:

  • The NZD/USD pair is showing signs of force following a breakout of the highest level of 0.7205 (a mjor support). 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. So, the NZD/USD pair continues to move upwards from the level of 0.7205. As long as the trend is above the price of 0.7205, the market is still in an uptrend. In addition, the trend is still strong above the moving average (MA100). The NZD/USD pair didn't make any significant movements this week. The market is indicating a bullish opportunity above the mentioned support levels. The bullish outlook remains valid as long as the 100 EMA heads for the upside. Therefore, strong support will be found around the spot of 0.7159-0.7205 providing a clear signal to buy with a target seen at 0.7250. If the trend breaks the first resistance at 0.7250, the pair will move upwards continuing the bullish trend development to the level of 0.7305 in order to test the daily resistance 2. In addition, it should be noted that the major resistance is seen at 0.7344 today. Otherwise, it would also be wise to consider where to place a stop loss; this should be set below the second support of 0.7122.
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Technical analysis of USD/CHF for June 20, 2017

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Overview:

  • The USD/CHF pair traded downwards from the level of 0.9803 since last week. The market seems stable for that there are no changes in the direction. The bias remains bearish in the nearest term testing 0.9620 or lower. The bottom price is seen at 0.9620. The trend has rebounded from the bottom of 0.9620 towards 0.9730. So, the strong resistance has already been formed at 0.9803 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 0.9803, the market will indicate a bearish opportunity below the new strong resistance level of 0.9803 which coincides with a ratio of 38.2% Fibonacci. Overall, I still prefer a bearish scenario at this phase. Hence, the market is indicating a bearish opportunity below 0.9803 so it will be good to sell at 0.9803 with the first target at 0.9620. It will also call for a downtrend in order to continue towards 0.9560. The daily strong support is seen at 0.9560.
  • On the other hand, the stop loss should always be taken into account, for that it will be logical to set your stop loss at the level of 0.9860 which coincides with the ratio of 50% Fibonacci retracement level.
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Trading plan for EUR/USD and GBP/USD for June 20, 2017

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Technical outlook:

The EUR/USD pair bounced from Fibonacci 0.50 percent resistance around 1.1215 levels yesterday, dropping almost 90 pips before pulling back. If short positions were placed, it is a good strategy to book short-term profits at this moment when EUR/USD is trading at 1.1160 levels. Please note that the pair has either carved out a lower top at 1.1215 levels yesterday, or is expected to print yet another lower top at 1.1230/35 levels going further before reversing lower, as depicted here. A push below 1.1109 levels would confirm a move towards 1.1000 levels first before the pair could resume its rally again. On the flip side, a rally from current levels would indicate a complex corrective structure which could terminate at 1.1230/35 levels.

Trading plan:

Exit shorts and take profits now, and remain flat till further clarifications. Aggressive traders may want to go long with stop at 1.1100 levels, targeting 1.1230 levels.

GBPUSD chart setups:

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Technical outlook:

The GBP/USD pair has dropped lower, printing intraday lows at 1.2667 levels. A safe trading strategy would be to book short-term profits on the sell trades with were opened yesterday and look to remain aside for a while. The pair might be looking to unfold as a complex corrective wave structure as depicted above, where each of the waves A-B-C are unfolding as 3-3-3(combination) or 3-3-5 (flat) respectively. It is too early to confirm the above expected wave count but if this holds true, the price would remain above 1.2635 levels going forward and pushing higher towards 1.2840/50 levels before resuming lower again. The immediate support is seen at 1.2635 levels while resistance lies at 1.2970. On the flip side, if the price breaks below 1.2635 levels, it would confirm that further push towards 1.2300 levels is on cards.

Trading plan:

Book profits on shorts taken yesterday and remain flat for now. Aggressive traders may want to go long with stop at 1.2630 levels, targeting 1.2840.

Fundamental outlook:

There is no major event lined up for the rest of the day.

Good luck!

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Global macro overview for 20/06/2017

Global macro overview for 20/06/2017:

The minutes of the June policy meeting held by the Reserve Bank of Australia shed a little light on new details as the RBA remains upbeat on the global economy and states that forward-looking labour indicators are positive but low wage growth stil curbs consumer activity. "Weak growth in retail sales in the March quarter pointed to a slowdown in consumption growth following strong growth in the December quarter," we can read in the official transcript of the policy meeting. Regarding the housing market, RBA was cautious as well in any statements. Nevertheless, it acknowledged obvious risks due to rising housing credit. Although the government has taken steps to dull the housing boom, considerable risks remain, especially in capital cities (house prices rose 2.2% in the first quarter of 2017).

Last week, the RBA maintained the official cash rate at 1.5% for ten months in a row. A rate hike to maintain the current house prices growth is not currently considered as policymakers seek faster economic growth and inflation. On the other hand, the Gross Domestic Product rose 1.7% on a yearly basis, so this might be an excuse for a rate hike, but it still remains below the RBA target of 2.75%. In conclusion, the RBA is unlikely to raise the interest rate as along as significant house price inflation persists or GDP is below 2.75%.

Let's now take a look at the AUD/USD technical picture on the H4 time frame. The pair is still trading inside of a tight range between the levels of 0.7568 - 0.7635 in overbought market conditions and visible bearish divergence growing. In a case of a downside breakout, the next support is seen at the level of 0.7516.

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Global macro overview for 20/06/2017

Global macro overview for 20/06/2017:

Bank of England Governor Mark Carney has a different point of view regarding the interest rate hike. Today's comments from Carney stated that inflationary pressure is still weak and that the Bank of England should not consider a rate hike in the nearest future. As we remember, last week three out of eight BoE policymakers voted to raise the cost of money, which pushed the GBP / USD rate above 1.2800. Carney said: "From my perspective, given the mixed signals on consumer spending and business investment, and given the still subdued domestic inflationary pressures, in particular, anaemic wage growth, now is not yet the time to begin that adjustment. In the coming months, I would like to see the extent to which weaker consumption growth is offset by other components of demand, whether wages begin to firm, and more generally, how the economy reacts to the prospect of tighter financial conditions and the reality of Brexit negotiations."

Carney's words put an end to expectations for a quick raise soon. The BoE monetary policy would be set to return inflation sustainably to target over the medium term while supporting the necessary adjustments in the economy. The latest 5-3 vote split will probably change at the next BoE meeting as Forbes will leave the committee at the end of June to be replaced by Tenreyro. So far there is no clear evidence whether she will adopt a hawkish or dovish stance, although there are suspicions of a more dovish tone, especially given concerns surrounding Brexit.

Let's now take a look at the GBP/USD technical picture on the H4 time frame. The pair is being sold and it has broken below the technical support at the level of 1.2690 after Carney's speech. The stochastic and momentum indicator all point down, so the bias remains bearish. The most important support is at the level of 1.2633.

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Daily analysis of major pairs for June 20, 2017

EUR/USD: There is a bearish signal on EUR/USD with a Bearish Confirmation Pattern in the market. This is in accordance with the forecast for this week, for price could go downwards by over 200 pips within the next few days. Some weakness could also happen on certain EUR pairs.

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USD/CHF: There is a bullish signal on USD/CHF with a Bullish Confirmation Pattern in the market. This is in accordance with the forecast for the week, for price could go upwards by over 200 pips within the next few days. The EUR/USD pair would go down and help USD/CHF upwards. CHF is also expected to be weak versus USD.

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GBP/USD: The Cable is currently showing some weakness, and further bearish movement is possible as price goes into the accumulation territories at 1.2700, 1.2650, and 1.2600. Unless the distribution territory at 1.3000 is breached to the upside, any rallies in this market should be ignored.

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USD/JPY: There is a clean bullish signal on USD/JPY. Price went higher on Monday and it is now above the demand level at 111.50. More bullish movement is anticipated as price goes towards the supply level at 112.00. The supply level could even be exceeded before price later turns bearish before the end of this month.

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EUR/JPY: This cross has gone upwards by 55 pips this week, having gone upwards by 200 pips since June 15. There is a Bullish Confirmation Pattern on the 4-hour chart, and a further bullish movement is possible as price goes towards the supply zones at 125.00 and 125.50.

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Trading plan for 20/06/2017

Trading plan for 20/06/2017:

The last night on the financial markets was definitely peaceful. The main currencies record minor changes in value relative to the US dollar. EUR/USD is still trading in the range of yesterday's lows at 1.1160 and USD/JPY is trading around 111,60. The most important event of the Asian session is a rapid over 1% rally of the Nikkei 225, which surged to 22-month highs.

On Tuesday 20th of June, the event calendar is light in important economic releases, but global investors will pay attention to various speeches of the central bankers like Stanley Fischer and Rober Kaplan from the US FED, Mark Carney from the Bank of England, and Thomas Jordan from the Swiss National Bank. Durning the late US session, Canada will release Wholesales Sales data and the US will release Current Account data.

EUR/USD analysis for 20/06/2017:

This week will be full of speeches from US FED policymakers. For the beginning, vice chairman of the Federal Reserve Stanley Fischer and President of Federal Reserve Bank of Dallas Robert Kaplan will give speeches during the US trading session. Nevertheless, their comments might not be enough. Market valuation of the Fed's tightening pace is still insufficient despite the hawkishness of the last meeting. Market will close at the end of 2018 with two hikes fewer than suggested by the consensus and 2019 does not discount anything in principle. This makes the interest rate market a gigantic space to respond to stimulus from the monetary authorities, the economy, and possibly Trump's administration. The area for the decline in debt yields for each of these reasons is very limited. The speculative position on USD is also very low, which creates a significant field for a strong rebound.

This is why the views of FED vice president Fischer are always closely monitored and are indicative of the opinion of more hawkish FOMC members. Therefore, it is important to keep track of the timing of the start of the balance sheet restriction process.

Let's now take a look at the EUR/USD technical picture on the H4 time frame. The price has been rejected twice from the level of 1.1208, just where the golden trend line resistance is, so any rally upwards is being capped. If the FED policymakers comments are hawkish again, the price might test the technical support at the level of 1.1130 - 1.1108. In a case of a breakout, we expect a move even lower towards the level of 1.1075. The technical resistance at the swing high at the level of 1.1298 is the most important resistance for the bulls.

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Market Snapshot: Crude Oil trading just above the last month's lows

Slowly but surely, the price of the oil is trading below the navy trend line above the level of $43.74. The market conditions are clearly oversold and the growing bullish divergence between the price and the momentum indicator suggest a possible Double Bottom technical pattern in progress. Any Violation of the May's low will invalidate this scenario and accelerate the sell-off.

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Market Snapshot: German DAX index on all-time highs

The German DAX stock index has made new all-time highs yesterday at the level of 12953 points. Nevertheless, despite the fact that the market is trading above all the moving averages, the market conditions are overbought on the hourly time frame, and at the higher timeframes, there is a clear bearish divergence visible. Moreover, the gap between the levels of 12744 - 12831 still hasn't been filled yet. Any breakout below the technical support at the level of 12921 might start a corrective pull-back to fill the gap.

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Ichimoku indicator analysis of USDX for June 20, 2017

The Dollar index bounced off support yesterday as we expected and is trying to break above the 97.50 short-term resistance. This will mean that the move towards 98.50 we were expecting has started.

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Red line - resistance

Blue line - support

The Dollar index bounced off the short-term cloud support and is trying to break above resistance. Trend is neutral as the index has been trading in a range for several weeks. Short-term support is at 97. Resistance at 97.50-97.60.

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Blue lines - bearish channel

Red line - resistance trend line

The Dollar index is diverging in the daily chart and is bouncing off the lower channel boundary. I still expect price to move towards the daily Kumo at least near 98.30-98.50. It is also possible to reach the upper channel boundary. To sum up, I remain bullish about the US dollar at least for the short term.

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Daily analysis of GBP/USD for June 20, 2017

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Daily analysis of GBP/USD for June 20, 2017

Ichimoku indicator analysis of gold for June 20, 2017

Gold price has reached our $1,245 target yesterday. It is time for Gold bears to be cautious and use protective stops as any day now we could see a reversal in Gold back towards $1,260-70.

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Trend is bearish. Price is below both the tenkan- and kijun-sen indicators. Price is around the 61.8% Fibonacci retracement so a bounce is justified from current levels. However this does not mean that we can continue lower towards $1,230 and the 78.6% Fibonacci retracement before a bigger bounce.

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Black line -long-term resistance trend line

Red line - short-term support

Blue line - long-term support trend line

The double top in Gold and the new rejection at the black trend line does not make me change my longer-term bullish view, however opens up a short-term bearish scenario where we can test the blue trend line support specially if we break below the weekly Kumo. Therefore it is important for short-term bulls to hold above $1,200.

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Fundamental analysis of GBP/USD for June 20, 2017

Recently GBP/USD has been in a volatile corrective structure after breaking below the 1.2800 support level. The British currency is weighted by the uncertainty over formation of the new government and the Brexit situations. There are currently a lot of questions remain open which are expected to be solved slowly. Meanwhile, USD has gained ground after the rate hike and hint on inflation by the FOMC members. Today Bank of England Governor Mark Carney is going to comment about upcoming interest rates and monetary policy decisions which is expected to have high impact on the currency movement today. The United States will deliver the current account report which is expected to show a greater deficit at -124B from -112B previously. Besides, FOMC member Stanley Fischer will speak today. His comments can lead to a good amount of volatility to strike the market today. As of the current situation in this pair, USD is expected to gain further against GBP in the coming days.

Now let us look at the technical picture. The price has rejected the resistance area at 1.2800 several times. As long as the price remains below the level, there are higher chance that the pair will move down to 1.2515 support level in the coming days. The dynamic level 20 EMA is also holding the price currently as a resistance and the bearish bias is expected to continue further until the price breaks above 1.2800 with a daily close.

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Fundamental Analysis of USD/JPY for June 20, 2017

USD/JPY has shown a good amount of impulsive bullish move recently bouncing off from 109.00 support area. Yesterday, Japan's Trade Balance report was published with a downbeat deficit of 0.13 trln which was expected to be at a 0.35 trln surplus. As the export demand and currency demand are directly linked, a trade report has high impact on a currency's dynamic and it also influences industrial production and domestic producer prices. The dismal Trade Balance report yesterday led to more gains of USD against JPY yesterday. Besides, the US dollar is one of the most attractive assets right now due to rise in the Treasury Yields. Recently, FOMC member William Dudley dropped a hint about rising wages to revive domestic inflation in the short term. USD Current Account report is due later today which is expected to show wider deficit at -124B from -112B previously and FOMC member Stanley Fischer is going to speak after a while about the nation's key interest rate and future monetary policy decisions. Today, Japan did not present any economic reports but any negative economic report from the US today will lead to further gains on the JPY side.

Now let us look at the technical chart. The price is currently being rejected off the 111.70. Recently, the price has respected the level as resistance for several times. So at present, the following scenario is expected. If the price remains below that level with a daily close, then the price will go down towards 108.80 support level in the coming days. On the other hand, if the price breaks above 111.70 with a daily close above it, we will consider buy positions with a target towards 114.30 area.

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Technical analysis of USD/JPY for June 20, 2017

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Our upside target of USD/JPY has been hit. USD/JPY is expected to continue its upside movement. The pair recorded higher tops and higher bottoms since June 16 that confirmed a positive outlook. The upward momentum is further reinforced by the rising 20-period and 50-period moving averages. The relative strength index is bullish and calls for a further upside.

Hence, as long as 111.15 holds on the downside, look for a new rise to 112.10 and even to 112.50 in extension.

Alternatively, if the price moves in the opposite direction as predicted, short position is recommended below 111.15 with targets at 110.85 and 110.60.

Chart Explanation: The black line shows the pivot point. The present price above pivot point indicates the bullish position while the price below pivot points indicates the short position. The red lines show the support levels and the green line indicates the resistance levels. These levels can be used to enter and exit trades.

Strategy : BUY, Stop Loss: 111.15, Take Profit: 112.10

Resistance levels: 112.10, 112.50, and 112.85

Support levels: 110.85,110.60, and 110.35

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Technical analysis of USD/CHF for June 20, 2017

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The outlook of USD/CHF is still bullish and it is expected to move upward. The pair posted a rebound and broke above 20-period and 50-period moving averages. In addition, the bullish cross between 20-period and 50-period moving averages has been identified. The relative strength index broke above the declining trend line since June 14.

Yesterday, the U.S. dollar was buoyed by the hawkish tone of New York Fed President William Dudley, who also said, "inflation is a little lower than what we would like, but we think that if the labor market continues to tighten, wages will gradually pick up, and with that inflation will gradually get back to 2 percent."

Therefore, as long as 0.9725 is not broken, look for a further upside to 0.9770 and even to 0.9790 in extension.

Graph Explanation: The black line shows the pivot point, present price above pivot point indicates the bullish position and below pivot points indicates the short position. The red lines show the support levels and the green line indicates the resistance levels. These levels can be used to enter and exit trades.

Strategy: BUY at dips, Stop Loss: 0.9725, Take Profit: 0.9770

Resistance levels: 0.9770, 0.9790, and 0.9875

Support levels: 0.97000, 0.9680, and 0.9655

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Technical analysis of GBP/JPY for June 20, 2017

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Our take profit target for GBP/JPY has been hit as predicted. The technical picture of the pair is positive as the prices are supported by the bullish trend line since June 15. The upward momentum is further reinforced by the rising 20-period and 50-period moving averages. The relative strength index shows upside momentum.

Hence, as long as 141.60 is support, expect a new advance to 142.75 and even to 143.35 in extension.

Alternatively, if the price moves in the opposite direction as predicted, a short position is recommended below 141.60 with targets at 141.00 and 140.55.

Chart Explanation: the black line shows the pivot point. The price above pivot point indicates the bullish position and when it is below pivot points, it indicates the short position. The red lines show the support levels and the green line indicates the resistance levels. These levels can be used to enter and exit trades.

Strategy: BUY, Stop Loss: 141.60, Take Profit: 142.75

Resistance levels: 142.30, 142.75, and 143.35

Support levels: 141.00,140.55, and 140

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Technical analysis of NZD/USD for June 20, 2017

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NZD/USD hit our downside take profit target as predicted. The pair is expected to continue the downside movement today as well. The pair recorded lower tops and lower bottoms since June 19 that confirmed a negative outlook. The declining 20-period and 50-period moving averages are playing resistance roles. The relative strength index is below its oversold level of 30, but has not displayed any reversal signal yet.

Hence, as long as 0.7255 holds on the upside, we expect a further weakness to 0.7215 and even to 0.7200 in extension.

Strategy: SELL. Stop Loss: 0.7275. Take Profit: 0.7215

Chart Explanation: The black line shows the pivot point. Currently, the price is above the pivot point which indicates the bullish position. If it is below the pivot points, it indicates the short position. The red lines show the support levels and the green line indicates the resistance levels. These levels can be used to enter and exit trades.

Resistance levels: 0.7300, 0.7320, and 0.7355

Support levels: 0.7215, 0.7200, and 0.7160

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Technical analysis of USD/JPY for June 19, 2017

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USD/JPY is expected to move with bullish bias above 110.85. Although the pair posted a pullback, it is still trading above the key support at 110.85, which should limit the downside potential. Even though a continuation of the consolidation cannot be ruled out, its extent should be limited.

To conclude, as long as 110.85 is not broken, look for a further rise to 111.70. A break above this level would trigger a new upside to 112.05.

Alternatively, if the price moves in the opposite direction as predicted, short position is recommended below 110.85 with targets at 110.60 and 110.35.

Chart Explanation: The black line shows the pivot point. The present price above pivot point indicates the bullish position while the price below pivot points indicates the short position. The red lines show the support levels and the green line indicates the resistance levels. These levels can be used to enter and exit trades.

Strategy : BUY, Stop Loss: 110.85, Take Profit: 111.70

Resistance levels: 111.70, 112.05, and 112.45

Support levels: 110.60,110.35, and 110.00

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Technical analysis of USD/CHF for June 19, 2017

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USD/CHF is expected to trade with a bullish bias above 0.9700. Despite breaking below the 20-period and 50-period moving averages, the pair is still trading above the key support at 0.9700, which should allow for a temporary stabilization. Even though a continuation of the consolidation cannot be ruled out, its extent should be limited.

Therefore, as long as 0.9700 holds on the downside, look for a rebound to 0.9770 and even to 0.9805 in extension.

Graph Explanation: The black line shows the pivot point, present price above pivot point indicates the bullish position and below pivot points indicates the short position. The red lines show the support levels and the green line indicates the resistance levels. These levels can be used to enter and exit trades.

Strategy: BUY at dips, Stop Loss: 0.9700, Take Profit: 0.9770

Resistance levels: 0.9770, 0.9805, and 0.9875

Support levels: 0.9680, 0.9655, and 0.9610

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Technical analysis of NZD/USD for June 19, 2017

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As predicted, NZD/USD hit our take profit and touched 0.7280. Now it is expected to turn down. Although the pair posted a rebound and broke above the 20-period and 50-period moving averages, it is still trading below the key resistance at 0.7275 which should limit the upside potential. Even though a continuation of technical rebound cannot be ruled out, its extent should be limited.

Hence, as long as 0.7275 is not surpassed, expect a return to 0.7225 and even to 0.7200 in extension.

Strategy: SELL. Stop Loss: 0.7275. Take Profit: 0.7300

Chart Explanation: The black line shows the pivot point. Currently, the price is above the pivot point which indicates the bullish position. If it is below the pivot points, it indicates the short position. The red lines show the support levels and the green line indicates the resistance levels. These levels can be used to enter and exit trades.

Resistance levels: 0.7300, 0.7320, and 0.7355

Support levels: 0.7225, 0.7200, and 0.7160

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Technical analysis of GBP/JPY for June 19, 2017

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GBP/JPY is still expected to continue its upside movement. The pair posted a rebound from 139.15 and broke above the 20-period moving average. The rising 50-period is playing a support role and maintains the upside bias. The relative strength index is mixed with bullish bias.

Therefore, as long as 141.30 is not broken, look for a further rise to 142.30 and even to 142.75 in extension.

Alternatively, if the price moves in the opposite direction as predicted, a short position is recommended below 141.30 with targets at 141.00 and 140.55.

Chart Explanation: the black line shows the pivot point. The price above pivot point indicates the bullish position and when it is below pivot points, it indicates the short position. The red lines show the support levels and the green line indicates the resistance levels. These levels can be used to enter and exit trades.

Strategy: BUY, Stop Loss: 141.30, Take Profit: 142.30

Resistance levels: 142.30, 142.75, and 143.35

Support levels: 141.00,140.55, and 140

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