Technical analysis of USD/JPY for July 05, 2017

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Our upside target of USD/JPY has been hit. USD/JPT is expected to trade with a bullish bias above 113.10. Although the pair posted a pullback, a support base at 112.80 has formed and has allowed for a temporary stabilization. Even though a continuation of consolidation cannot be ruled out, its extent should be limited.

Therefore, as long as 113.10 is not broken, look for a rebound to 113.70. A break above this level would trigger another upside to 114.00 in extension.

Alternatively, if the price moves in the opposite direction as predicted, a short position is recommended below 113.10 with a target at 112.80.

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

Strategy : BUY, Stop Loss: 113.10, Take Profit: 113.70

Resistance levels: 113.70, 114.00, and 114.05

Support levels: 112.80,112.40, and 112

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Technical analysis of USD/CHF for July 5, 2017

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Our USD/CHF upside target has been hit as we predicted. USD/CHF is still expected to trade in a higher range. The technical picture of the pair is bullish as the prices have been supported by a bearish trend line since June 30. The rising 50-period moving average is playing a support role. The relative strength index is mixed with a bullish bias.

Hence, as long as 0.9615 is not broken, a further advance to 0.9710 and even to 0.9740 seems more likely to occur.

Chart Explanation: The black line shows the pivot point; the 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, Stop Loss: 0.9635, Take Profit: 0.9710

Resistance levels: 0.9710, 0.9740, and 0.9785

Support levels: 0.9615, 0.9595, and 0.9545

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Fundamental Analysis of AUD/USD for July 5, 2017

AUD/USD has been quite bearish due to downbeat economic reports from Australia and unchanged RBA Cash rate statement report published yesterday. Australia released a negative report of Building Approvals at -5.6% which previously was at 4.8% and was expected to be at -1.2%. Yesterday, Australia's Retail Sales report was better than expected, showing growth to 0.6% which was expected to be at 0.2% but the fresh figure was less than the previous value of 1.0%. Besides, in the RBA statement the Cash Rate was unchanged at 1.50% which was quite disappointing amid the recent global economic boom where most of the central banks are signaling a rate hike in the short term. Though today, Australia's AIG Service Index report was published with a better figure at 54.8 which previously was at 51.5, it didn't provide AUD with support against USD. On the USD side, today we have Factory Orders report which is expected to show more deficit at -0.5% which previously was at -0.2%. As it is one of the leading indicators of rising purchase orders in the industrial sector, this means a robust development in the manufacturing sector or the secondary sector of the economy. If the news comes positive today, we might see USD gaining much more against AUD in the coming days.

Now let us look at the technical chart. Today price has already rejected the bulls off the 0.7630 level retesting it as a resistance after breaking below it yesterday. Currently the price is being hold by the dynamic support of 20 EMA but it is expected to go more down towards 0.7500-50 support area in the coming days. If the price breaks below 0.7500 with a daily close, then a further bearish move is expected. On the other hand, if the price bounces off the support area 0.7500-50 and closes above 0.7550 with a daily close, then we will consider buy positions with a target towards 0.7750 resistance level. The bearish bias is expected to continue further until price breaks above 0.7630 with a daily close.

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Technical analysis of GBP/JPY for July 5, 2017

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GBP/JPY as predicted Yesterday is trading in a higher range. So, we will retain our Yesterday's target. The pair is currently trading above its rising trend line and is expected to post a technical rebound. The relative strength index is around its neutrality area at 50, lacking downward momentum. Even though a continuation of the consolidation in the current stage cannot be ruled out, its extent should be limited.

As long as 145.90 is not broken down, further advance is preferred with 146.90 and 147.50 as targets.

Alternatively, if the price moves in the opposite direction as predicted, a short position is recommended below 145.90 with the target at 145.05.

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 a 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: 145.90, Take Profit: 146.50.

Resistance levels: 146.90, 147.50, and 148.00

Support levels: 145.05, 144.15, and 143.15

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Technical analysis of NZD/USD for July 5, 2017

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NZD/USD is expected to trade with a bearish outlook. Although the pair posted a rebound and broke above the 50-period moving average, it is still trading below the key resistance at 0.7305, which should limit the upside potential. The relative strength index is mixed with a bearish bias.

Therefore, as long as 0.7295 is not surpassed, look for a further decline to 0.7240 and even to 0.7225 in extension.

Strategy: SELL Stop Loss: 0.7295. Take Profit: 0.7240

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: 0.7320, 0.7345, and 0.7370

Support levels: 0.7240, 0.7225, and 0.7200

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NZD/USD Intraday technical levels and trading recommendations for July 5, 2017

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Daily Outlook

The NZD/USD pair has been trending up within the depicted bullish channel since January 2016.

In November 2016, early signs of bullish weakness were expressed on the chart when the pair failed to record a new high above 0.7400.

A bearish break out of the lower limit of the channel took place in December 2016.

In February 2017, the depicted short-term downtrend was initiated in the depicted supply zone (0.7310-0.7380).

However, a recent bullish breakout above the downtrend line took place on May 22. Since then, the market has been bullish as depicted on the chart.

The price zone of 0.7150-0.7230 (SUPPLY ZONE in confluence with 61.8% Fibonacci level) stood as a temporary resistance zone until a bullish breakout was expressed above 0.7230.

This resulted in a quick bullish advance towards the next supply zone around 0.7310-0.7380 where evident bearish rejection was expressed on June 14.

Currently, the NZD/USD pair remains trapped between the price levels of 0.7230 - 0.7310 until a breakout occurs in either direction.

Trade recommendations:

Risky traders could have a valid SELL entry at retesting of the price level of 0.7310. S/L should be placed above 0.7400.

Conservative traders can wait for a bearish closure below 0.7230 then 0.7150 (61.8% Fibo level) for a valid SELL position.

S/L should be placed above 0.7250 while T/P levels should be placed at 0.7050, 0.6970, and 0.6850.

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Intraday technical levels and trading recommendations for EUR/USD for July 5, 2017

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Monthly Outlook

In January 2015, the EUR/USD pair moved below the major demand levels near 1.2100 (multiple previous bottoms set in July 2012 and June 2010). Hence, a long-term bearish target is projected toward 0.9450.

In March 2015, EUR/USD bears challenged the monthly demand level around 1.0500, which had been previously reached in August 1997.

In the longer term, the level of 0.9450 remains a projected target if any monthly candlestick achieves bearish closure below the depicted monthly demand level of 1.0500.

Currently, the EUR/USD pair remains trapped within the depicted consolidation range (1.0500-1.1300) until a breakout occurs in either direction.

Any bullish breakout above 1.1300 will probably liberate a quick bullish advance towards 1.1495 and 1.1600.

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Daily Outlook

In January 2017, the previous downtrend reversed when the Head and Shoulders pattern was established around 1.0500. Since then, evident bullish momentum has been expressed on the chart.

The next daily supply level for the EUR/USD pair is located between 1.1400-1.1520 where the price action should be watched for possible bearish rejection.

Recently, the price levels around 1.1280-1.1295 stood as an intraday resistance where recent bearish correction was initiated towards 1.1120.

The evident bullish rejection was expressed around 1.1120 where the current bullish movement towards 1.1400 was initiated.

As anticipated, the ongoing bullish momentum allowed the EUR/USD pair to pursue further advance towards 1.1415 (Daily Supply-Zone) where a valid SELL entry can be offered if enough bearish rejection is maintained.

Early signs of bearish rejection should be expressed by the bears around 1.1400. Otherwise, further bullish advance towards 1.1500 should be expected soon.

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EUR/USD analysis for July 05, 2017

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Recently, the EUR/USD pair has been trading downwards. The price tested the level of 1.1312. Anyway, according to the 30M time frame, I found that the price rejected from a lower diagonal of the downward channel, which is a sign that selling looks risky. So we might expect a potential three-drive pattern. My advice is to watch for potential buying opportunities. The upward targets are set at the price of 1.1370 and 1.1440.

Resistance levels:

R1: 1.1380

R2: 1.1400

R3: 1.1420

Support levels:

S1: 1.1340

S2: 1.1315

S3: 1.1295

Trading recommendations for today: watch for potential buying opportunities.

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Technical analysis of NZD/USD for July 05, 2017

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Overview:

  • Pivot: 0.7205.
  • The NZD/USD pair is still trading around the area of 0.7250 and 0.7343. Thus, it should be noted that the support is established at the level of 0.7205 which represents a pivot point. The NZD/USD pair is showing signs of force following a breakout of the highest price of 0.7205. The price has been in a bullish channel for two days. This is confirmed by the RSI indicator signaling that we are still in a bullish trending market. 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. The trend is still strong above the moving average. The NZD/USD pair didn't make any significant movements in the last two days. 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. It should be noted that the major resistance is seen at the levels of 0.7344 and 0.7400. However, the stop loss should be placed at the price of 0.7205.
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Technical analysis of USD/CHF for July 05, 2017

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Overview:

  • The USD/CHF pair has faced strong resistances at the levels of 0.9684. So, the first resistance has been already formed at the level of 0.9684 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 0.9684, the market will indicate a bearish opportunity below the new strong resistance level of 0.9684 (the level of 0.9684 coincides with a ratio of 61.8% Fibonacci). Moreover, the RSI starts signaling a downward trend, but the trend is still showing strength above the moving average (100) and (50). Thus, the market is indicating a bearish opportunity below 0.9684, so it will be good to sell at 0.9684 with the first target of 0.9633. It will also call for a downtrend in order to continue towards 0.9602. The daily strong support is seen at 0.9602. On the other hand, the stop loss should always be taken into account, for that it will be reasonable to set your stop loss at the level of 0.9719.
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GBP/USD analysis for July 05, 2017

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Recently, the GBP/USD pair has been trading downwards. The price tested the level of 1.2893. Anyway, according to the 30M time frame, I found a fake breakout of yesterday's low at the price of 1.2910, which is a sign that selling looks risky. There is a hidden bullish divergence in the background, which is another sign of strength. My advice is to watch for potential buying opportunities. The upward targets are set at the price of 1.2945 and 1.2955.

Resistance levels:

R1: 1.2960

R2: 1.2980

R3: 1.3000

Support levels:

S1: 1.2915

S2: 1.2890

S3: 1.2870

Trading recommendations for today: watch for potential buying opportunities.

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Global macro overview for 05/07/2017

Global macro overview for 05/07/2017:

The most important fundamental event today is the FOMC Meeting Minutes release at 06:00 pm GMT. This should not be a breakthrough publication for the US Dollar, as the FED at its last meeting made clear its current rhetoric. The bank hiked interest rates and FED Chairperson Jannet Yellen at a subsequent press conference ensured markets that weaker data from the US economy was triggered by transitional factors and that the process of monetary policy normalization would be implemented in the form set up in December last year. There are various viewpoints, saying the FED should start to roll over the balance sheet before making another interest rate hike, but the actual form of normalizing the monetary policy by FED is up to the policymakers.

The FED has acquired $4.5 trillion worth of assets that the bank hoovered up following the Global Financial Crisis. It is widely known that FED has a plan how to sell off some of these assets, but it did not communicate when the program will start despite a few remarks in the statement like 'relatively soon'; which isn't the clearest of indications.

The USD looks deeply oversold, looking through the prism of the bond market, so it may be sensitive to strengthening in the event of hawkish remarks in minutes. Market participants know already, that FED is planning to hike at least two times this year and the next hike might even occur in September 2017 if the data-dependent FED will agree.

Let's take a look at the US Dollar Index technical picture on the H4 time frame. After making another lower low, the price is trying to bounce above the important technical resistance zone between the levels of 96.32 - 96.51. Nevertheless, the market conditions on this time frame are starting to look overbought, so only hawkish statements in the FOMC Meeting Minutes might help the bulls to push the prices higher before the pullback.

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Global macro overview for 05/07/2017

Global macro overview for 05/07/2017:

The UK Construction PMI deteriorates below the consensus in June. Market participants expected the PMI Construction to decline from 56.0 points to 55.0 points, but it slid below market expectations to the level of 54.8. Moreover, the growth momentum softened across all sectors during the month and the worst performers were commercial and civil engineering sectors. Only the residential housing growth was the highest since December 2015.

Today's Services PMI was as well slightly worse than expected as it was released at the level of 53.4, while market participants expected it at the level of 53.6, which was already lower than last month figure of 53.8. The PMI is still above the fifty level, but this is the weakest growth for 4 months anyway. On the positive note, there was a slight pickup in the pace of job creation in June to its fastest for 14 months.

What is even more important, there were first reports of delays in new business on the back of fresh political and economic uncertainties, which in turn resulted in a decline in business confidence to the lowest levels in 2016 (business expectations were at 63.7 vs 68.1 previously). The beginning of the Brexit negotiations, which outcome is another uncertainty, added another factor that would test the resilience of the British economy. Despite the negative public mood just after the Brexit vote, the UK economy did not collapse and performed on a subdued, but steady pace of progress. Nevertheless, the dark cloud starts to gather over the UK and worse than expected negotiations outcome might decrease the negative economic outlook event further.

Let's now take a look at the GBP/USD technical picture on the H4 time frame after the data was released. The price of GBP/USD has broken below the intraday support at the level of 1.2912 and now is moving towards the next technical support at the level of 1.2861. There is still a possibility that the price will bounce from the golden trend line support around the level of 1.2880.

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Fundamental Analysis of EUR/JPY for July 4, 2017

Forex analysis review
Fundamental Analysis of EUR/JPY for July 4, 2017

EUR/USD - what goes up must come down | Daily Video Analysis | 5th July 2017

EUR/USD has been rising up and it's high time it starts coming down. Don't you think?!

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AUD/JPY approaching major support, prepare to buy

Price is approaching major support at 85.60 (Fibonacci retracement, horizontal swing low support, Fibonacci extension) and we look to buy on weakness at this level for a bounce to at least 86.97 resistance (Fibonacci extension, horizontal swing high resistance).

Stochastic (34,5,3) is seeing strong support above 7% which stochastic is fast approaching.

Buy above 85.60. Stop loss at 84.88. Take profit at 86.97.

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Trading plan for 05/07/2017

Trading plan for 05/07/2017:

The market is slowly going back to its normal routine after the US holiday. EUR/USD is trading at 1.1350, around the figure below the key resistance. USD/JPY is between 112.80 and Monday's high of 113.45. GBP/USD is at 1.2920. None of the three major currency pairs has changed their prices by more than 0.1%. The only pair that is marginally higher than yesterday is AUD/USD.

On Wednesday 5th of July, the event calendar is dominated again with Composite and Services PMI releases from all over the Eurozone and the UK. Later during the US session, market participants will be absorbing Factory Orders data and FOMC Meeting Minutes from the last month.

EUR/USD analysis for 05/07/2017:

The Services and Composite PMIs are scheduled for release during the early hours of the London session, from 07:15 am GMT to 08:00 am GMT. The PMIs will be released from the major Eurozone economies like Germany, France, Italy, Spain, and the Eurozone itself. Generally speaking, the PMIs from Germany and France are expected to increase and PMIs from Spain and Italy are expected to decrease in the reported month. Earlier this week, the financial markets were flooded with the PMI Manufacturing data from the Eurozone and this data was better than expected as the Eurozone economy, especially Germany and France are growing up at a steady pace. If today's data meets the expectations again, the Euro might receive a boost across the board again.

Let's now take a look at the EUR/USD technical picture on the H4 time frame. The pair is trading quietly in a tight range between the levels of 1.1295 - 1.1368 as market participants are waiting for the volatility to kick in. The market conditions are starting to be oversold and the momentum indicator is bouncing from the fifty level. This situation supports the view, that is a case of better than expected data EUR/USD might try to bounce higher towards the technical resistance at the level of 1.1444.

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Market Snapshot: EUR/JPY making Triple Top pattern?

The price of EUR/JPY is moving towards the level of 128.54 for the third time, which means the Triple Top pattern might be in progress. The visible bearish divergence between the price and momentum indicator supports this view. Moreover, the stochastic oscillator is getting away from the overbought zone as well. The next technical support is seen at the level of 128.03 and 127.42.

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Market Snapshot: Gold moves below the trend line

The price of Gold has broken below the important daily trend line with a daily candle close below it. Currently, the market conditions are oversold, so a bounce towards the technical resistance at the level of 1,238 is expected and then the sell-off should continue. The next important technical supports are at the levels of 1,214, 1,194, and 1,180.

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NZD/USD profit target almost reached, prepare to sell

Price is fast approaching our profit target from yesterday. We prepare to sell on strength below major resistance at 0.7306 (Fibonacci retracement, horizontal overlap resistance, Fibonacci extension) for a push back down to 0.7255 support (Fibonacci retracement, Fibonacci extension, horizontal swing low support).

Stochastic (34,5,3) is seeing strong resistance below 93% where we expect a drop from.

Correlation analysis: AUD/USD and NZD/USD are both strongly positively correlated. Both are expecting drops today. It is good to see them moving in tandem as it increases our conviction on this trade.

Sell below 0.7306. Stop loss at 0.7326. Take profit at 0.7255.

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EUR/USD prepare to sell on strength

We look to sell below major resistance at 1.1391 (Fibonacci retracement, horizontal pullback resistance) for a push down to at least 1.1296 support (Fibonacci retracement, horizontal overlap support, Fibonacci extension).

RSI (55) has seen its long term ascending support-turned-resistance line broken triggering a bearish exit and a change in momentum from bullish to bearish. In this configuration, we remain bearish looking for selling opportunities.

Sell below 1.1391. Stop loss 1.1431. Take profit at 1.1296.

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USD/CHF testing major resistance, prepare to sell

Price is now testing major resistance at 0.9645 (Fibonacci retracement, horizontal overlap resistance, bearish divergence) and we expect a strong reaction from this level for a drop towards 0.9552 support (Fibonacci extension, horizontal swing low support).

Stochastic (34,5,3) is testing major resistance at 97% where we expect a drop from. We can also see that bearish divergence has formed vs price signalling that a reversal is impending.

Sell below 0.9645. Stop loss at 0.9677. Take profit at 0.9552.

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AUD/USD change in momentum, time to start selling

Price has broken our long term ascending support-turned-resistance line signalling that a change in momentum is seen. We prepare to sell below resistance at 0.7638 (Fibonacci retracement, horizontal overlap resistance, pullback resistance) for a push down to at least 0.7577 support (Fibonacci retracement, swing low support).

RSI (55) also shows a change in momentum has occurred with a break of its long term ascending support-turned-resistance line. Now the key goal is to look out for selling opportunities when there is strength.

Correlation analysis: AUD/USD and NZD/USD are both strongly positively correlated. Both are expecting drops today. It is good to see them moving in tandem as it increases our conviction on this trade.

Sell below 0.7638. Stop loss at 0.7682. Take profit at 0.7577.

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Ichimoku indicator analysis of USDX for July 5, 2017

The Dollar index bounced as expected but found resistance at 96.50 and did not manage to break it. A rejection at current levels will imply a move lower below 95.

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Red line - resistance

Price is below the 4-hour Kumo and trying to hold above the tenkan- and kijun-sen indicators. Support is at 96 and resistance at 96.50. A break above 96.50 could push the index towards 98. A break below 96 will open the way for new lows towards 94.50.

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Daily resistance is found at 96.50-96.60. A break above it will open the way for a push towards the Daily Kumo at 97.80-98. The trend remains bearish as the price is still below both the tenkan- and kijun-sen. Overall I expect a bounce in the Dollar index towards 98.The material has been provided by InstaForex Company - www.instaforex.com

Ichimoku indicator analysis of gold for July 5, 2017

Gold price remains in a bearish short-term trend. There are some signs of a possible bounce in the short term but Gold price will need to break above $1,250 to change short-term trend to bullish.

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Blue lines - bearish channel

Gold price continues to trade below the 4-hour Kumo and the kijun-sen. Price is trying to break above the tenkan-sen. This is the first reversal signal. The RSI is turning upwards and this is another sign of reversal. Price being so close to the lower channel boundary implies it is supported. I expect at least a bounce towards the upper channel boundary where we also find a thin cloud. Thin cloud areas are usually tested and broken.

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Black line -long-term resistance

Blue line -long-term support

Weekly candle is testing the weekly Kumo support. The RSI indicators could move a bit lower which implies that we could even see a move towards $1,170-80 before the bigger upward move. Overall I remain longer-term bullish.

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Elliott wave analysis of EUR/NZD for July 5, 2017

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Wave summary:

Nothing new to add here. The correction in red wave ii continues to dominate. The lack of strength does allow for a final spike lower to 1.5450 before completing red wave ii and setting the stage for a strong impulsive rally in red wave iii towards at least 1.6232.

R3: 1.5931

R2: 1.5801

R1: 1.5712

Pivot: 1.5650

S1: 1.5566

S2: 1.5500

S3: 1.5450

Trading recommendation:

We are long EUR from 1.5645 with stop placed at 1.5210. If you are not long EUR yet, then buy a break above 1.5712. A break above here will also raise our stop to 1.5450.

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Elliott wave analysis of EUR/JPY for July 5, 2017

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Wave summary:

EUR/JPY is still correcting in wave iv and we still prefer more downside pressure towards 126.87 before the next impulsive rally in wave v towards at least 130.13 is expected. That said, wave iv could turn into a triangle consolidation and in this case, we will not see a break below minor support at 127.41, but a sideways consolidation before the next rally higher.

R3: 130.17

R2: 129.30

R1: 128.89

Pivot: 128.50

S1: 128.28

S2: 127.81

S3: 127.41

Trading recommendation:

We are looking to re-buy EUR at 127.00.

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Daily analysis of major pairs for July 5, 2017

EUR/USD: The EUR/USD has been corrected lower and lower so far this week, but the correction is not yet strong enough to invalidate the extant bullish bias on the market. There is a need for price to go below the support line at 1.1250 before there could be a bearish signal, and that would require a serious selling pressure.

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USD/CHF: On Monday and Tuesday, the price went upwards by 70 pips, testing the resistance level at 0.9650. The resistance level may be breached to the upside as price goes towards other resistance levels at 0.9700 and 0.9750. A movement above the resistance level at 0.9750 would result in a bullish bias.

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GBP/USD: The perpetual bearish correction that was seen in this market has posed a threat to the recent bullishness on it. The EMA 11 remains above the EMA 56, but the RSI period 14 has gone below the level 50. There are mixed signals in the market and one would need to wait for a directional movement. A movement to the upside would restore a Bullish Confirmation Pattern in the 4-hour chart.

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USD/JPY: The USD/JPY simply went flat yesterday, but a breakout may bring about further upwards movement, which may not hold out protractedly. There is a Bullish Confirmation Pattern in the 4-hour chart, and further bullish movement is a possibility (although the outlook on JPY pairs is bearish for this month).

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EUR/JPY: The EUR/JPY cross has moved sideways so far this week – in the context of an uptrend. There could be a breakout above the supply zone at 129.00, emphasizing the recent bullish signal, or there could be a breakout below the demand zone at 127.00, threatening the bullish signal.

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Trends are not Broken

Morning review.

As you know, today marks the celebration of US Independence Day. Therefore, trades have lesser volumes. The report on the US industrial production index released on Monday exceeds its forecasts with 57.8 - strong data. However, the markets ignored the strengthening of the dollar. So far, the new missile launch by North Korea goes against the US dollar.

Everyone awaits for the G20 in Hamburg this coming weekend. The summit should be worked out by Trump and Putin, but there are some serious concerns between the US and the Germany.

Important releases from Wednesday to Friday: Fed minutes on Wednesday, US employment reports - from ADP on Thursday and Nonfarm Payrolls Report on Friday.

The market trends for major pairs including the euro, pound, franc and Australian (except the Japanese yen) go against the dollar. The yen is a trend favors the growth of the dollar. The trend remained to strengthen even there are kickbacks.

We will buy the EUR/USD currency pair at 1.1380 as it breakout upwards (H4 chart) and to break 1.1445 (the scale of the day). Canceling the 1.1150 upward trend.

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Technical analysis of EUR/USD for July 05, 2017

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When the European market opens, some Economic Data will be released, such as Retail Sales m/m, Final Services PMI, German Final Services PMI, French Final Services PMI, Italian Services PMI, and Spanish Services PMI. The US will release the Economic Data, too, such as IBD/TIPP Economic Optimism and 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: 1.1414.

Strong Resistance:1.1407.

Original Resistance: 1.1396.

Inner Sell Area: 1.1385.

Target Inner Area: 1.1358.

Inner Buy Area: 1.1331.

Original Support: 1.1320.

Strong Support: 1.1309.

Breakout SELL Level: 1.1302.

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

Technical analysis of USD/JPY for July 05, 2017

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In Asia, Japan today will not release any Economic Data, but the US will release some Economic Data, such as IBD/TIPP Economic Optimism and Factory Orders m/m. So, there is a probability the USD/JPY will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Resistance. 3: 113.54.

Resistance. 2: 113.32.

Resistance. 1: 113.10.

Support. 1: 112.82.

Support. 2: 112.60.

Support. 3: 112.38.

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 GBP/USD for July 05, 2017

GBP/USD still has limited trading's action across the markets, as thin liquidy has been dominating the FX space due to holidays in the United States. The support zone of 1.2923 should be challenged in order to cap further weakness. However, if that area gives up, then we might expect a decline towards 1.2756 after it breaks the 200 SMA at H1 chart.

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H1 chart's resistance levels: 1.3011 / 1.3105

H1 chart's support levels: 1.2923 / 1.2756

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 1.3011, take profit is at 1.3105 and stop loss is at 1.2918.

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Daily analysis of USDX for July 05, 2017

USDX had a comatose tone during Tuesday amid thin liquidity in the markets as the U.S holidays are dominating the scenario. The 200 SMA is close to the current price area and if that moving average gives up, then we might expect a continuation towards 96.77. To the downside, the target is still placed at the 95.77 level.

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H1 chart's resistance levels: 96.77 / 97.20

H1 chart's support levels: 96.38 / 95.77

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 95.77, take profit is at 95.10 and stop loss is at 96.42.

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