Technical analysis of GBP/JPY for July 6, 2017

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As predicted, our take profit target of GBP/JPY has been hit. GBP/JPY is still trading above its trend line. The pair posted a rebound at 146.00 and broke above both 20-period and 50-period moving averages. In addition, the 20-period moving average is turning up and is playing a support role. The relative strength index is above its neutrality level at 50.

To conclude, as long as 146.00 is not broken, look for a further rebound with targets at 47.30 and 147.70 in extension.

Alternatively, if the price moves in the opposite direction as predicted, a short position is recommended below 146.00 with the target at 146.25.

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: 146.00, Take Profit: 147.30.

Resistance levels: 147.90, 147.50, and 148.00

Support levels: 146.25, 144.90, and 144.00

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Technical analysis of NZD/USD for July 6, 2017

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We retain our yesterday's outlook for NZD/USD. The pair is expected to trade in a lower range. Although the pair broke above both 20-period and 50-period moving averages, it is still trading below the key resistance at 0.7285, which should limit the upside potential. Even though a continuation of technical rebound cannot be ruled out, its extent should be limited.

Therefore, as long as 0.7285 holds on the upside, a return to 0.7240 and even to 0.7225 seems more likely to occur.

Strategy: SELL Stop Loss: 0.7285. 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: 0.7300, 0.7320, and 0.7345

Support levels: 0.7240, 0.7225, and 0.7200

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USD/JPY analysis for July 06, 2017

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Recently, the USD/JPY has been trading sideways at the price of 113.27. According to the 30M time frame, I found a trading range between the price of 113.50 (resistance) and the price of 112.80 (support). The price successfully tested resistance and my advice is to watch for potential selling opportunities. The downward target is set at the price of 112.80.

Resistance levels:

R1: 113.70

R2: 114.15

R3: 114.60

Support levels :

S1: 112.80

S2: 112.35

S3: 111.90

Trading recommendations for today: watch for potential selling opportunities.

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Daily analysis of major pairs for July 6, 2017

EUR/USD: This pair is trying to go upwards to confirm its recent bullish bias. A movement above the resistance lines at 1.1400 would help re-affirm the bullish bias, while a movement above the resistance level at 1.1450 would result in a Bullish Confirmation Pattern in the 4-hour chart. However, that would require strong buying pressures.

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USD/CHF:

The USD/CHF pair is around the resistance level at 0.9650, trying to breach it to the upside. Price may even target another resistance level at 0.9700 this week, forming a bullish bias. Any further weakness in EUR/USD would help USD/CHF go further upwards. Some fundamental reports from the US are expected today and they may have an impact on the markets.

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GBP/USD: There is now a short-term "buy" signal on the Cable. The EMA 11 remains above the EMA 56, and the RSI period 14 has gone above the level 50. Price is above the accumulation territory at 1.2900, and very close to the distribution territory at 1.2950. 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 pair simply went flat yesterday, but a breakout may bring about further upwards movement, which may not hold out protractedly. Right now, the supply level at 113.50 is under siege, and it may be breached to the upside. This is a possibility, before things turn bearish.

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EUR/JPY: This currency trading instrument is also making some near-term bullish effort; though price has simply gone sideways so fat this week. It is above the demand zone at 128.50, and close to the supply zone at 129.00. Further northward effort may be witnessed before there is a meaningful bearish movement.

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USD/JPY is forming a nice reversal pattern, remain bearish

The price has started to form a nice reversal pattern at our selling area. We remain bearish looking to sell at the major resistance of 113.06 (Fibonacci retracement, Fibonacci extension, horizontal pullback resistance, bearish divergence) and expect a drop towards at least 110.97 support (Fibonacci retracement, horizontal swing low support).

Stochastic (34,5,3) is seeing major resistance below 95% where we expect a drop from.

Sell below 113.06. Stop loss is at 113.96. Take profit is at 110.97.

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Is AUD/JPY going to take off? | Daily Forex Technical Analysis | 6th July 2017

Has AUD/JPY formed a nice bullish reversal pattern? I think it looks all set to take off from here!

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AUD/JPY is bouncing up nicely, remain bullish

The price is bouncing up nicely above 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 is at 84.88. Take profit is at 86.97.

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AUD/USD profit target is reached, prepare to buy for a short term correction

The price has dropped perfectly to our profit target and bounced off it. We prepare to buy above 0.7577 support (Fibonacci retracement, Fibonacci extension, horizontal swing low support) for a bounce up to at least 0.7642 resistance (Fibonacci retracement, horizontal overlap resistance).

Stochastic (34,5,3) is seeing a nice bounce above 4% with good upside potential.

Buy above 0.7577. Stop loss is at 0.7556. Take profit is at 0.7642.

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EUR/USD analysis for July 06, 2017

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Recently, the EUR/USD pair has been trading upwards. As I expected, the price tested the level of 1.1370. The downward channel is broken and that is a good sign of strength. My advice is to watch for potential buying opportunities. The price also re-tested previous day's high, which is another sign of strength. The upward target is set at the price of 1.1425.

Resistance levels:

R1: 1.1375

R2: 1.1400

R3: 1.1435

Support levels :

S1: 1.1320

S2: 1.1290

S3: 1.1260

Trading recommendations for today: watch for potential buying opportunities.

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Global macro overview for 06/07/2017

Global macro overview for 06/07/2017:

The latest American Petroleum Institute (API) inventory data for the week ending June 30th recorded a draw of 5,760k barrels after the unexpected 850k barrel build last week. The market participants expected a smaller draw of 2,500k barrels, so the data were a big disappointment and caused a sharp decline in crude oil prices. Moreover, after the recent comments from Russian Federation regarding the statement, that deeper production cuts were not required, the underlying supply conditions are starting to worry the global investors again.

Crude prices are down 16% or the year, amid signs that rising US output will undercut production cuts ordered by the Organization of Petroleum Exporting Countries and its allies. The most important reason behind the slide in prices is the surprisingly fast rate of US shale drilling expansion. The US producers have significantly increased production output and lowered their own costs faster than expected, so there is a possibility, that the significant oversupply in the energy market will continue to the end of this year and even possibly through 2018. That's why the crude oil priced might be slowly hovering around $50-60 levels and possibly falling lower in the mid-term.

Let's now take a look at the Crude Oil technical picture at the H4 timeframe. Just after the report was published the price slid towards the support at the level of $45.85 and hit the level of $44.52 before the bounce. Currently, the bulls are trying to break out above the resistance at the level of $45.85, but the momentum is still below the fifty level, so the bias remains bearish.

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Global macro overview for 06/07/2017

Global macro overview for 06/07/2017:

The FOMC Meeting Minutes delivered some interesting information regarding further monetary policy. The careful analysis of the minutes revealed that FOMC members continue to support rate hikes, but are split when it comes to deciding when they should start reducing the balance sheet. For some of the policymakers the best time would be "next few months" and for others "later term this year". Moreover, FED members noted that financial conditions were loosening despite the interest rate rises and the recent inflation rates are lower than expected. Nevertheless, several members have noted an increase in import prices, which is in line with the inflationary trend in the medium term. FED policymakers maintain a positive language when describing inflation, and the last weakness they throw at the one-off factor. And the last, but not least: most FOMC members supported a rate hike in June as well as another rate hike this year.

Generally it can be said that the minutes are slightly pro-dollar, but of course, there is a lack of consensus among the members regarding the balance sheet reduction process. Certainly, market participants need to look for better data from the US that could build such consensus. The first chance will be the Non-Farm Payrolls data this Friday and any figure better than expected will be another important argument for FED policymakers to justify the interest rate hike.

Let's now take a look at the USD/JPY technical picture on the H4 time frame. The market is trading near the swing high in overbought conditions. There is a visible bearish divergence between the price and the momentum oscillator, so the corrective cycle towards the technical support at the level of 112.92 can start any time now. Nevertheless, the better than expected data from ADP and NFP might move the pair even above the level of 114.34.

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Fundamental Analysis of USD/CAD for July 6, 2017

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Fundamental Analysis of USD/CAD for July 6, 2017

Trading plan for 06/07/2017

Trading plan for 06/07/2017:

Yesterday's FOMC Meeting Minutes did not have much impact on the US Dollar as the volatility did not exceed 0.15%. EUR/USD is at 1.1340, USD/JPY at 113.10, GBP/USD at 1.2940. Crude oil is trying to erase part of the 4.0% decrease and has already grown around 0.7 percent. On the market of precious metals, there is no clear trend, with Silver falling 0.25%. One ounce of Gold costs $1,226.

On Thursday 6th of July, the event calendar will get busy especially during the US trading session. The data released during this time will contain ADP Non-Farm Employment Change, Trade Balance, Unemployment and Continuing Claims, and ISM Non-Manufacturing PMI. Moreover, Canada will present its Trade Balance and Building Permits.

EUR/USD analysis for 06/07/2017:

The ADP Non-Farm Employment Change is scheduled for release at 12:15 pm GMT and market participants are expecting a decrease in a number of newly employed people in the USA from 253k to 184k. The job market in the US is in a healthy condition with the unemployment rate at the level of 4.3%. Today's ADP data might support this view again if the data beats expectations. It is highly possible as since the beginning of the year only the January data has been worse than expected, all other data has at least beaten expectations.

The other important data that might have a big impact on the EUR/USD pair is ISM Non-Manufacturing PMI release at 04:00 pm GMT. Market participants expect the index to edge down to 56.6 points from 56.9 points. Economic activity in the non-manufacturing sector grew in May for the 89th consecutive month, so the majority of respondents' comments continue to indicate optimism about business conditions and the overall economy. The sector continues to reflect strength, buoyed by the strong rate of growth in the Employment Index.

Both ADP employment estimate and ISM employment index are both interconnected and both performing strongly in the recent months. If both of them will beat the consensus today, then the NFP-Payrolls tomorrow might as well be better than expected and that will make the US Dollar to appreciate across the board.

Let's now take a look at the EUR/USD technical picture on the H1 time frame. The market is still moving inside of the channel.The price bounced on the 38%Fibo, but the demand side did not have the strength to create a bigger rally so far. This means that the downward correction is unlikely to end yet and it is expected to descend to 1.1280 where 50%Fibo retracement is, the overbalance zone is and highs from 2-7 and 14 June (will now act as supports). On the bigger time frame, the continuation of the upward trend continues. The key resistance is at the level of 1.1445, which is a swing high of June 30. Their breakthrough will open the way to the level of 1.1600, or swing highs from April last year.

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Market Snapshot: AUD/USD bounced from support

The price of AUD/USD declined from the top at the level of 0.7711 in five impulsive waves and bounced from technical support at the level of 0.7575. A further upward move might be expected as the market conditions are oversold and there is a visible bullish divergence between the price ant the momentum indicator. The projected target for the corrective cycle is the technical resistance at the level of 0.7635.

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Market Snapshot: USD/CAD broke below an important support

The price of USD/CAD is trading below an important technical support on the daily time frame. The market conditions are oversold, so the price tried to rally higher, but it was capped at the level of 1.3015 and then reversed. Nevertheless, further rally attempts are still on the table as long as the technical support at the level of 1.2911 is not violated.

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Central Banks Pushed Gold Into a Corner

Gold futures dropped amid the field of two-month highs and the strengthening of the "hawkish" rhetoric of central banks. Regulators from different countries are ready to follow the Fed's example and embark on a path of monetary tightening that promotes the growth of bond yields around the world and also led investors to withdraw money from ETF, focused on precious metals. Thus, the reserves of the largest specialized exchange-traded fund SPDR Gold Shares dropped to 846.29 tonnes, the lowest level in almost three months.

In terms of seasonality, July is not the best period for the "bulls" on the XAU/USD. Over the past 10 years, the average price grew by less than 1%, which is significantly worse than the statistics of January (+3.9%).

Seasonal dynamics of gold

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Source: Bloomberg.

The main driver of falling prices is currently the unfavorable external environment. In spite of a slowdown in inflation, central banks are going to tighten monetary policy as they look at the positive dynamics of the GDP. US stock indexes feel comfortable near record highs, the yield on US treasury bonds is rising, and the dollar is recovering lost ground. Thus, the global appetite for risk remains high while inflation is low. Both factors are "bearish" for a safe haven like gold.

UBS notes that precious metals are very sensitive to the dynamics of the real yield of US bonds. According to him, the latter will be traded in a medium term range, so the bank recommends buying XAU/USD at near $1,200 per ounce and sell it near $1,300. From a fundamental point of view, the drop in prices to the first level will boost the demand for gold in order to hedge the risks associated with potential correction of the S&P 500.

The dynamics of the real yield of US Treasury bonds and gold prices

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Source: Bloomberg.

In the short term, strong US labor market data in June will persuade the Federal Reserve to proceed with its plans and increase the nominal yield on bonds. On the other hand, weak non-farm payrolls and average wages will reduce the likelihood of three interest rate hikes in 2017 and will pull down the yield. This will allow the "bulls" on the XAU/USD to go into a counterattack.

Despite recent setbacks, the market still has a lot of supporters for the recovery of medium-term trend growth in precious metals.

Technically, prices going beyond the upward trading channel and the breakthrough of the neckline of the "Head and Shoulders" pattern indicates a breakdown in the medium-term "bullish" trend. The attack of the "bears" was stopped at the support level of $1,218 per ounce, however, success in its retest will raise the risks of sustaining the peak towards the direction of $1,208 and $1,190.

Gold Daily Chart

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Ichimoku indicator analysis of USDX for July 6, 2017

The Dollar index continued its bounce towards 96.5 resistance but got rejected. Bulls need to hold above 96 and make a higher low before the next leg up. Trend remains bearish and there is no trend reversal confirmation yet.

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Red line - resistance

The Dollar index bounced towards the 4-hour Kumo (cloud) and trend line resistance at 96.50 and got rejected. This increases the chances of making a new lower low. However if support at 96 holds, we could see a higher low being formed before the next leg up towards 98.50.

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In the daily chart, the trend remains clearly bearish as price remains below both the tenkan- and kijun-sen indicators. Resistance is at 96.50-96.80 and if broken we should expect price to move towards the daily Kumo at 97.50-98.The material has been provided by InstaForex Company - www.instaforex.com

Ichimoku indicator analysis of gold for July 6, 2017

The Gold price made a new lower low yesterday near $1,217 but sharply bounced back towards resistance of $1,230. There are divergence signs that imply Gold should make a strong bounce soon.

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Blue lines - bearish channel

Red rectangle - resistance

The Gold price remains inside the bearish channel and below the 4 hour Kumo. Short-term trend is clearly bearish. But the divergent RSI indicators and the 5 wave decline from $1,253 imply a bounce should be expected soon. The target for a minimum bounce is at $1,237.

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Black line - long-term resistance

Blue line - long-term support

The Gold weekly candle remains on top of the weekly Kumo (cloud) support. Resistance is at $1,280. Support is at $1,170. I cannot rule out a move towards $1,170 but I believe it is more probable to see a strong bounce at least towards $1,260 from current levels than fall straight down to $1,170.

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Fundamental Analysis of EUR/CAD for July 6, 2017

CAD has been quite dominating in almost every currency pairs recently. EURCAD has been residing inside a corrective structure range between 1.4730 to 1.4970 area which was recently broken downwards with a daily close. Recently Euro had mixed economic reports which did not help the currency to gain over its recent weakening whereas CAD has been quite strong after the announcement about recent upcoming rate hike. Today EUR German Factory Orders report was published which was worse than expected at 1.0% which was expected to be at 1.9% and Retail PMI report is going to be published which is expected to show some positive outcome which previously was at 52.0. Today ECB Monetary Policy Meeting accounts is also going to be held which is a detailed record of ECB's Governing board's most recent meeting which is expected to show some hawkish report for the currency today. On the CAD side, today we have Trade Balance report which is expected to show an increase in deficit at -0.5B from the previous value of -0.4B and Building Permits is expected to show a positive result at 2.5% which previously was negative at -0.2%. Both the currencies has a good number of high impact events yet to be published and considering the ECB rate hike sentiment along with CAD rate hike sentiment a good amount of volatility is expected to strike the market today but CAD is expected to dominate EUR further in the coming days.

Now let us look at the technical view, the price has broken below the 1.4730 support level recently with a daily close which does signal a further bearish move in this pair with a target towards 1.4300 support area. Currently, the price is quite bearish in nature and which is expected to continue further until price breaks above 20 EMA with a daily close. A good fall towards 1.4300 is expected to hit the market in the coming days.

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

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Wave summary:

EUR/NZD continues to trade within a narrow range between 1.5500 - 1.5655. As long as the minor resistance at 1.5655 is able to cap the upside as long must a possible spike lower to 1.5450 be expected. Only a break above the minor resistance at 1.5655 will indicate that the corrective consolidation in red wave ii is complete and the next impulsive rally higher to 1.6232 is developing.

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 near 1.5450 or upon a break above 1.5655 and start be using the same stop.

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

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Wave summary:

Nothing new to add here. The sideways correction in wave iv continues to unfold. Ideally, we will see a spike lower to 126.87 in an expanded flat correction, but this sideways consolidation could as easily turn into a triangle consolidation limiting the downside to 127.41.

Once this sideways consolidation is complete a new impulsive rally higher towards at least 130.13 is expected.

R3: 130.13

R2: 129.30

R1: 128.89

Pivot: 128.50

S1: 128.28

S2: 127.81

S3: 127.41

Trading recommendation:

We are looking for a new buying opportunity near 127.00

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Fundamental Analysis of USD/CAD for July 6, 2017

CAD has been quite strong recently due to the hint of a rate hike in the coming days. USDCAD has been impulsively bearish after breaking below 1.3550 area. Today CAD Trade Balance report is going to be published which is expected to have an increase in the deficit to -0.5B from the previous value of -0.4B and Building Permits is expected to show some positive result with an increase ещ 2.5% from the previous negative value of -0.2%. On the USD side, today we have ADP Non-Farm Employment Change report to be published which is expected to show a decrease to 184k from the previous value of 253k, as job creation is the most leading indicator of the consumer spending thus economic development so any positive or negative report in this economic event will have higher impact on the market today. Along with it, Unemployment Claims report is also going to be published today which is expected to decrease to 243k from the previous value of 244k, Trade Balance is expected to show less deficit at -46.3 from the previous value of -47.6B, ISM Non-Manufacturing PMI is expected to show slight decrease to 56.5 from previous value of 56.9 and Crude Oil Inventories are expected to show negative value of -2.4M which previously was positive at 0.1M. To sum up, a respectable number of economic events are going to be taken place today on the both currencies of this pair which may lead to greater volatility in the market ahead of NFP report tomorrow. Currently, as of the current market situation CAD has an upper hand over the USD and it is expected to dominate USD further in the coming days as well.

Now let us look at the technical view, the price is currently struggling below the 1.30 resistance level after breaking it as a support last week. Yesterday the price has already retested the level and we have seen a good amount of bullish rejection off the level which signals further bearish move in this pair in the coming days with a target towards 1.2830. As the price remains below 1.30 level with a daily close the bearish bias is expected to continue further without any strong intervention of the bulls.

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Technical analysis of EUR/USD for July 06, 2017

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When the European market opens, some Economic Data will be released, such as ECB Monetary Policy Meeting Accounts, French 10-y Bond Auction, Retail PMI, and German Factory Orders m/m. The US will release the Economic Data, too, such as Crude Oil Inventories, ISM Non-Manufacturing PMI, Final Services PMI, Trade Balance, Unemployment Claims, ADP Non-Farm Employment Change, and Challenger Job Cuts y/y, so, amid the reports, EUR/USD will move in a medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Breakout BUY Level: 1.1401.

Strong Resistance:1.1394.

Original Resistance: 1.1383.

Inner Sell Area: 1.1372.

Target Inner Area: 1.1345.

Inner Buy Area: 1.1318.

Original Support: 1.1307.

Strong Support: 1.1296.

Breakout SELL Level: 1.1289.

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

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Technical analysis of USD/JPY for July 06, 2017

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In Asia, Japan will release the 30-y Bond Auction data, and the US will release some Economic Data, such as Crude Oil Inventories, ISM Non-Manufacturing PMI, Final Services PMI, Trade Balance, Unemployment Claims, ADP Non-Farm Employment Change, and Challenger Job Cuts y/y. So, there is a probability the USD/JPY will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Resistance. 3: 113.63.

Resistance. 2: 113.41.

Resistance. 1: 113.19.

Support. 1: 112.91.

Support. 2: 112.69.

Support. 3: 112.47.

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 NZD/USD for July 06, 2017

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Overview:

  • 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.
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  • 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 06, 2017

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Overview:

  • The USD/CHF pair 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). 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. Alas, it should be noted that the double bottom is set at the point of 0.952 on the H1 chart. 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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NZD/USD Intraday technical levels and trading recommendations for July 6, 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 breakout 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.

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

Intraday technical levels and trading recommendations for EUR/USD for July 6, 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 the current bearish rejection is maintained.

On the other hand, the price level of 1.1260-1.1130 stands as a prominent DEMAND zone to be watched for bullish rejection.

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

Daily analysis of USDX for July 06, 2017

The index is finding dynamic resistance around the 200 SMA area at H1 chart and the bears could appear in order to push lower to the greenback. However, if the bullish bias comes back to action, the next target would be the resistance level of 96.77, while a pullback should push lower the US Dollar Index to test 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

Daily analysis of GBP/USD for July 06, 2017

The pair continues to hover around the 200 SMA at H1 chart and the resistance zone of 1.3017 is still the short-term target for bulls. If it gathers enough momentum in coming hours, we might expect a rally towards 1.3105, while a pullback should produce a break below the 200 SMA and it can target the 1.2756 level.

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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.

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