Intraday technical levels and trading recommendations for EUR/USD for July 7, 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 zone of 1.1260-1.1130 stands as a prominent DEMAND zone to be watched for bullish rejection.

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NZD/USD Intraday technical levels and trading recommendations for July 7, 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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Daily analysis of major pairs for July 7, 2017

EUR/USD: The EUR/USD has continued going upwards this week, following the shallow bearish correction it witnessed in the first few days of this week. Price has gained 300 pips since June 20, and it is now close to the resistance line at 1.1450, which may be breached to the upside as price goes further upwards.

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USD/CHF: It would be difficult for this pair to experience any protracted bullish movement as long as the EUR/USD goes upwards. The market made some bullish effort from Monday to Wednesday, but it has failed to generate a bullish signal, owing to its inability to reach the resistance line at 0.9700, not to mention breaching it to the upside. This is a bear market.

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GBP/USD: The situation on the GBP/USD is a kind of dicey at the moment. The EMA 11 remains above the EMA 56, but the RSI period 14 has gone below the level 50. It would be prudent to stay away from this market until there would be a directional bias, which would make a directional position logical.

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USD/JPY: The USD/JPY has gone flat this week, though the price is currently making some bullish effort, to save the ongoing bullish bias. The market is now above the demand level at 113.50, going towards the supply level at 114.00. The bullish outlook is far from being over.

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EUR/JPY: The EUR/JPY has continued going upwards this week, following the shallow bearish correction it witnessed in the first few days of this week. Price has gained 750 pips since June 15, and it is now close to the supply zone at 130.00, which may be breached to the upside as price goes further upwards.

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EUR/USD analysis for July 07, 2017

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Recently, the EUR/USD has been trading sideways at the price of 1.1410. Anyway, according to the 15M time frame, I found that buyers are in control and there is a strong upward channel. My advice is to watch for potential buying opportunities. The first upward target is set at the price of 1.1445. I also found a hidden bullish divergence on the moving average oscillator, which is another sign of strength.

Resistance levels:

R1: 1.1430

R2: 1.1440

R3: 1.1451

Support levels:

S1: 1.1410

S2: 1.1400

S3: 1.1390

Trading recommendations for today: watch for potential buying opportunities.

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USD/JPY analysis for July 07, 2017

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Recently, the USD/JPY has been trading upwards. The price tested the level of 113.84. Anyway, according to the 30M time frame, I found ascending broadening wedge pattern, which is a sign that buying looks risky. I also placed Fibonacci expansion to find potential resistance. I got Fibonacci expansion 100% at the price of 113.85 (currently on the test). My advice is to watch for potential selling opportunities. The downward targets are set at the price of 113.30 and 113.00.

Resistance levels:

R1: 113.85

R2: 114.00

R3: 114.15

Support levels:

S1: 113.60

S2: 113.45

S3: 113.30

Trading recommendations for today: watch for potential selling opportunities.

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Fundamental Analysis of NZD/USD for July 7, 2017

NZD/USD has been quite volatile recently, struggling to reach the resistance level of 0.7370. This week, New Zealand has provided mixed economic reports which are the main reason behind the struggle of the bullish move in this pair now. Recently, NZ NZIER Business Confidence report was published with a rise to 18 from the previous value of 17 and ANZ Commodity price showed a decrease to 2.1% from the previous value of 3.2%. Today is an important day for USD as a batch of high impact economic reports are due later. Today, US Average Hourly Earnings report is to be published which is expected to show a slight increase to 0.3% from the previous score of 0.2%, Non-Farm Unemployment Change is expected to show an increase to 175k from the previous value of 138k, and the Unemployment Rate is expected to be unchanged at 4.3%. Besides, FED Monetary Policy report is also going to be published today which is expected to be hawkish as well. Though the economic calendar is packed with high impact data from the US today, any negative outcome of any report may lead to further gains on NZD in the coming days.

Now let us look at the technical chart. The price has recently bounced off the dynamic level support of 20 EMA and rejected the bears of the level. Amid the current volatility in the market, if the price remains above the 20 EMA there are higher chances of moving towards the resistance of 0.7370 in the coming days. On the other hand, if the price breaks below 20 EMA with a daily close, the bullish bias will come to end. A daily close today will signal a further move in this pair.

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Fundamental Analysis of USD/CHF for July 7, 2017

USD/CHF is currently ranging between the prices of 0.9550 to 0.9700. After a great non-volatile bearish trend, the pair is currently showing some bullish intervention after bouncing off the 0.9550 level. Today is a very important day for all USD pairs as a large number of high impact economic events will hit the wire today. Today, US Average Earning Index report is going to be published which is expected to show a slight rise to 0.3% from the previous value of 0.2%, Non-Farm Employment Change is expected to increase to 175k from previous value of 138k and Unemployment Rate is expected to remain unchanged at 4.3%. Along with economic events, today FED Monetary Policy report is going to be published today as well which is expected to be hawkish today. On the CHF side, today we have Unemployment Rate report published without any change at 3.2% and Foreign Currency Reserve showed a decrease of 1B at 693B from the previous value of 694B. CHF could not show any gain today due to downbeat economic reports and upcoming high impact US economic reports. Though the market is currently showing some bullish pressure, a good amount of volatility is expected to hit the market as the US will present a series of high impact reports today.

Now let us look at the technical chart. The price has bounced off the important support level of 0.9550 recently which did provide some bullish intervention in the pair currently. As the price is still in a strong bearish trend, the bias is still bearish until price breaks above 0.9700 with a daily close. Currently a break below 0.9550 is expected. If the price breaks below 0.9550 with a daily close, then we will be looking forward to sell with a target towards 0.9260 support level in the future. If the price remains inside the range of 0.9550 to 0.9700 without any break then further consolidation can be observed in the future.

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Ichimoku indicator analysis of USDX for July 7, 2017

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Ichimoku indicator analysis of USDX for July 7, 2017

Global macro overview for 07/07/2017

Global macro overview for 07/07/2017:

The Canadian Trade Balance data did not disappoint global investors. The Canadian trade account recorded a deficit of $1.09bn for May following a revised $0.55bn shortfall for April which was originally reported as $0.37bn. Global investors expected a slightly weaker deficit data, around $0.50bn for the reported month. On the positive note, total exports from Canada are at new highs as they increased 1.3% for the reported month to a fresh record high of $48.7bn. The biggest exports were reported from metal and non-metallic products and motor vehicles. On the other hand, imports rose 2.4% on the month to a new record high and the biggest contribution to imports was noted in motor vehicles and spare parts and aircraft. It was the sixth month in a row of increasing imports.

The Bank of Canada was rather optimistic at its last meeting in June and even started to consider whether all of the substantial monetary stimuli in the economy is still justified. However, the policymakers express their concerns regarding the Canadian trade balance, especially exports. After the recent data, BoC should feel more confident surrounding trade developments as the rise in trading volumes should not discourage BoC policymakers from tightening monetary policy. The regulator has been holding rates at a record low of 0.50% since 2015 when it was forced to lower rates due to the sharp oil price fall. Currently, the Canadian economy is showing a steady economic growth which is why a rate hike by the end of this year remains on the table.

Let's now take a look at the USD/CAD technical picture on the H4 time frame. The market keeps trading in a tight horizontal zone between the levels of 1.2911 - 1.3015, but the bounce from the oversold market conditions is indicating a possible breakout higher towards the next important resistance at the level of 1.3165. Any better than expected data from the US will support this scenario.

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Ichimoku indicator analysis of USDX for July 7, 2017

The Dollar index is making a higher low so far as the decline from the rejection at 96.50 has stopped around the 61.8% Fibonacci retracement. Trend remains bearish but I prefer to be on the lookout for a reversal.

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Price is trading below both the tenkan- and kijun-sen indicators. Trend is bearish. But I believe we are in a process of making a higher low and then a new upward move should follow. Short-term resistance levels that need to be broken are at 96.30 and then at 96.55.

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Blue lines - bearish channel

Trading for so long on top of the lower channel boundary implies that an explosive upward move will come. Trend is bearish as price is below the tenkan- and kijun-sen indicators. Breaking above them (96.50-96.70) will be a very bullish sign and push price towards 98-98.50.

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Global macro overview for 07/07/2017

Global macro overview for 07/07/2017:

European stock markets are lower on Friday, following the release of the ECB Meeting Minutes. The conclusions from the meeting pointed out, that policymakers discussed removing its "easing bias" at the June meeting, nevertheless at the end decided not to make such a move mainly because stronger economic conditions had not resulted in higher inflation. The ECB chief economist Peter Praet reiterated this statement at a conference in Paris on Thursday. Moreover, Praet said that Eurozone economic growth is accelerating, but indicated that the ECB still needs to provide a "steady hand" in order to encourage stubbornly low inflation levels to rise up to the ECB yearly projections.

As it is widely known, the ECB at the June meeting has removed an easing bias regarding interest rates, effectively stopping the rumors regarding the possibility of further rate cuts. However, ECB policymakers may now be cautious about any more signals of further tightening policy, in order to avoid another run on the Euro, such as last week's "Draghi rally" during the ECB forum in Portugal. The next ECB meeting is scheduled on July 20, and the market participants could see a usual rate statement, with the standard explanation, that the economy is headed in the right direction, but QE will remain in place until inflation levels move higher. Nevertheless, Draghi had surprised the markets by many times before, so the meeting could turn out to be important and violate market-mover.

Let's now take a look at the EUR/JPY technical picture at the H4 timeframe. The bulls have managed to break out above the intraday resistance at the level of 129.08 (now support) and are heading higher in overbought market conditions. There is a clear bearish divergence between the price and the momentum indicator on this timeframe, so the upward rally might be short lived and the corrective cycle might start any time now.

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Ichimoku indicator analysis of gold for July 7, 2017

Gold price is consolidating above $1,210 and below $1,230. Price did not make a new overnight low as Silver did, while at the same time we observe bullish divergence signals by the oscillators.

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Blue lines - bearish channel

Red rectangle - resistance

Blue rectangle - support

Short-term support is at $1,217. Resistance at $1,230. I believe we have more chances of breaking resistance and moving back towards $1,250-60. There we will see if we get another downward leg below $1,200 or break $1,300.

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On a weekly basis price is testing the weekly Kumo (cloud). Breaking below the cloud will push price towards $1,180-60. Trend is neutral as price remains trapped between the black and blue trend lines. I remain longer-term bullish expecting Gold to eventually break $1,300 towards $1,400-$1,500. The $1,170-$1,200 price range is a gift for Gold bulls if we see it.The material has been provided by InstaForex Company - www.instaforex.com

Trading plan for 07/07/2017

Trading plan for 07/07/2017:

Overnight the Japanese Yen is clearly loosing, which is heavily tied to the Bank of Japan. USD/JPY established an overnight low below 113.85. EUR/USD is a dozen or more pips above 1.1400 and GBP/USD is moving towards 1.2950. Wall Street ended the session almost 1.0% under the line, the weak sentiment is also in Asia. Despite weakening of the Yen, Nikkei 225 has fallen 0.4%. More modest depreciation is viewed in the Chinese stock markets. WTI oil prices are down 1.3%, the barrel costs less than $45.

On Friday 7th of July will be a super busy day in financial markets because the event calendar is packed with news of crucial importance. Switzerland will release Unemployment Rate and Foreign Currency Reserves report. Germany will unveil the Industrial Production data, together with France, the latter also will release Trade Balance data. The UK will present Industrial Production, Manufacturing Production, and Trade Balance data. Canada will post Ivey Purchasing Managers Index data and Unemployment Rate and Employment Change data. And the last, but not least global investors are anticipating the data from the US job market, namely NFP Non-Farm Payrolls, Unemployment Rate, and Average Hourly Earnings.

EUR/USD analysis for 07/07/2017:

The US job market data are all scheduled for release at 12:30 pm GMT. The Non-Farm Payrolls Change is expected to increase from 138k to 175k. The Unemployment Rate is expected to stay unchanged at the level of 4.3% so any tick down here will be a positive surprise. However, the biggest attention will be focused on Average Hourly Earnings as they are expected to increase from 0.2% to 0.3% on a monthly basis and from 2.5% to 2.6% on a yearly basis. Nevertheless, after yesterday poor ADP Non-Farm data that missed the expectations (158k vs. 184k expected, 230k prior) the US job market data might disappoint again this month. Importantly, the current negative sentiment response towards the US Dollar that dominated the financial markets after the ADP Non-Farm data might be slightly diminished as last month ADP strongly missed the NFP, so some investors may not treat it as a reliable indicator. Moreover, most market participants will be focused on wages as any increase in wages will be considered as a good sign for the inflationary pressures, which in result will make a good justification for yet another interest rate hike by the FED later this year.

Let's now take a look at the EUR/USD technical picture on the H1 time frame. The pair has clearly broken out of the channel and currently is trading around the recent swing high at the level of 1.1444 in overbought market conditions as it awaits the data release. The next technical support is seen at the level of 1.1388 and 1.1355, but if the NFP data is better than expected, these two supports might be easily violated. The next much more important support is seen at the level of 1.1295.

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Market Snapshot: Fat finger caused a flash crash on Silver?

During the Asian trading session, the Silver market collapsed quickly from 16.16 to 14.41 in a matter of seconds. Nevertheless, the market quickly returned to the previous levels and currently is trading back around the level of 15.88. During today's session, a further appreciation of the silver price is expected and the level of 16.16 should be tested or even violated soon.

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Market Snapshot: USD/JPY is trading near the channel resistance

The price of USD/JPY has managed to move higher towards the upper channel line around the level of 113.68 despite the clear bearish divergence. However, the momentum is clearly softening, so this move up might be the last one before the important data release later during the US session. The importnat techcnial support is seen at the level of 112.92 - 112. 74 and the next importnat resistnace is seen at the level of 114.34.

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Breaking forecast: US employment report from APD Employment 15.15 Moscow Time

Breaking forecast: US employment report from APD Employment 15.15 Moscow Time

The number of new jobs in the US for June is 180,000(forecast).

Previous value of the indicator is 253,000.

The range of forecasts is 140,000 to 253,000.

Why is it important?

Employment is the most important indicator of the state of the economy. There can be no growth in an economy without an increase in employment.

We can see that the forecast shows a noticeable decrease in the labor market growth, this reflects a gradual decrease in the US economic growth. US economy has been growing for 8 years after its 2008-2009 crisis.

If the indicator comes out according to the forecast, this will be an argument for the Fed not to rush in raising interest rates and withdraw liquidity from the economy. This will lead to the continued growth of euro, pound, franc and Australian currency against the dollar.

If the indicator comes out stronger than the forecast, it is possible to strengthen the dollar, especially the growth of USD JPY. However, in this case, we expect the growth of currencies against the dollar for this week.

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Elliott wave analysis of EUR/NZD for July 7, 2017

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Wave summary:

EUR/NZD remain locked inside the 1.5500 - 1.5710 range and only a clear break out of this range will call for the next larger move. We continue to prefer a break towards the upside for a rally higher towards 1.6232 and above.

R3: 1.5931

R2: 1.5801

R1: 1.5710

Pivot: 1.5605

S1: 1.5500

S2: 1.5450

S3: 1.5400

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 1.5710 and place a stop at 1.5450.

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Elliott wave analysis of EUR/JPY for July 7, 2017

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Wave summary:

There was no time for a deeper correction in wave iv. With the clear break above minor resistance seen at 129.09 wave v higher towards at least 131.11 is well under way. Short-term support is now seen at the former resistance at 129.09 and should be able to protect the downside for the expected rally higher to 131.11.

R3: 131.98

R2: 131.11

R1: 131.00

Pivot: 129,46

S1: 129.09

S2: 128.75

S3: 128.42

Trading recommendation:

We missed the buying opportunity and will stay on the sideline until wave v has run its course

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Technical analysis of EUR/USD for July 07, 2017

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When the European market opens, some Economic Data will be released, such as Italian Retail Sales m/m, French Trade Balance, French Industrial Production m/m, French Gov Budget Balance, and German Industrial Production m/m. The US will release the Economic Data, too, such as Fed Monetary Policy Report, Natural Gas Storage, Unemployment Rate, Non-Farm Employment Change, and Average Hourly Earnings m/m, so, amid the reports, EUR/USD will move in a medium to high volatility during this day.

TODAY'S TECHNICAL LEVEL:

Breakout BUY Level: 1.1476.

Strong Resistance:1.1469.

Original Resistance: 1.1458.

Inner Sell Area: 1.1447.

Target Inner Area: 1.1420.

Inner Buy Area: 1.1393.

Original Support: 1.1382.

Strong Support: 1.1371.

Breakout SELL Level: 1.1364.

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 07, 2017

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In Asia, Japan will release the Leading Indicators and Average Cash Earnings y/y data, and the US will release some Economic Data, such as Fed Monetary Policy Report, Natural Gas Storage, Unemployment Rate, Non-Farm Employment Change, and Average Hourly Earnings m/m. So, there is a probability the USD/JPY will move with medium to high volatility during this day.

TODAY'S TECHNICAL LEVEL:

Resistance. 3: 114.05.

Resistance. 2: 113.83.

Resistance. 1: 113.61.

Support. 1: 113.33.

Support. 2: 113.11.

Support. 3: 112.89.

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 NZD/USD for July 07, 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 this week.
  • 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 07, 2017

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Overview:

  • As expected the USD/CHF pair continues to move downwards from the level of 0.9629. Yesterday, the pair dropped from the level of 0.9677 (this level of 0.9677 coincides with the double top) to the bottom around 0.9600. Today, the first resistance level is seen at 0.9630 followed by 0.9653, while daily support 1 is seen at 0.9600. According to the previous events, the USD/CHF pair is still moving between the levels of 0.9629 and 0.9577; for that, we expect a range of 76 pips (0.9553 - 0.9629). If the USD/CHF pair fails to break through the resistance level of 0.9653, the market will decline further to 0.9600. This would suggest a bearish market because the RSI indicator is still in a positive area and does not show any trend reversal signs. The pair is expected to drop lower towards at least 0.9553 with a view to testing the double bottom. On the contrary, if a breakout takes place at the resistance level of 0.9677 (the double top), then this scenario may become invalidated.
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Daily analysis of USDX for July 07, 2017

USDX was under pressure during Thursday's session after it found dynamic resistance around the 200 SMA at H1 chart. Now, the index could attempt a breakout below 95.77, which could also increase the downside acceleration towards 95.10 in a first degree. MACD indicator is still in the negative territory, supporting the current scenario.

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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.

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Daily analysis of GBP/USD for July 07, 2017

GBP/USD is still bullish across the board, with a consolidation ongoing above the 200 SMA at H1 chart and looks like it's targeting the resistance zone of 1.3011, where a breakout should open the doors to test the 1.3105 level. To the downside, the risk still is the 200 SMA zone, where a consolidation lower might increase the bearish acceleration towards 1.2756.

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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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Technical analysis of USD/JPY for July 06, 2017

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USD/JPY is expected to trade in a lower range. The pair retreated from 113.70 (the high of July 5) and broke below both 20-period and 50-period moving averages. In addition, the bearish cross between 20-period and 50-period moving averages has been identified. The relative strength index is below its neutrality level at 50.

To sum up, as long as 113.45 is not surpassed, look for a further drop to 112.80 and even to 112.40 in extension.

Alternatively, if the price moves in the opposite direction as predicted, a long position is recommended above 113.70 with a target at 114.00.

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 :SELL , Stop Loss: 113.45, Take Profit: 112.80

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 6, 2017

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The pair recorded lower tops and lower bottoms since July 5, which confirmed a negative outlook. The 20-period moving average crossed below the 50-period one. The relative strength index is bearish and is calling for a further downside. Besides, the Federal Reserve's latest meeting minutes showed that officials are planning to gradually shrink the central bank's balance sheet.

Therefore, below 0.9660, look for a new decline to 0.9615 and even to 0.9595 in extension.

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: SELL, Stop Loss: 0.9660, Take Profit: 0.9614

Resistance levels: 0.9685, 0.9710, and 0.9740

Support levels: 0.9615, 0.9595, and 0.9545

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

Fundamental Analysis of EUR/GBP for July 6, 2017

EUR/GBP has been struggling to break above the 0.8850 resistance level recently. The ECB and the Bank of England have already signaled a rate hike in the short term which triggered indecision among global investors. In light of the recent economic reports, GBP has been gaining ground against EUR which is already reflected on the chart of this pair. Today, Germany released a Factory Orders report with a worse than expected figure at 1.0% which was expected to be at 1.9%, Retail PMI showed a slight increase to 53.2 from 52.0, and ECB Monetary Policy Meeting Accounts were hawkish in nature which helped the currency to gain some weight today. On the GBP side, today Quarterly Housing Equity Withdrawal report was published at -10.4B which previously was at -10.6B and which was expected to show less deficit at -7.4B. Due to the negative report, GBP lost some grounds today against EUR and the breakout possibility is expected to rise well enough in the coming days. Though both currencies have Rate Hike tension in the market but EUR is currently having the upper hand over GBP which is expected to show some serious gains in the future for the EUR side.

Now let us look at the technical chart. The price is currently being hold by dynamic level support of 20 EMA. As the price remains above the 20 EMA there are higher chance of breaking above the resistance of 0.8850 level in the coming days. If the price breaks above the 0.8850 with a daily close, then we will be looking forward for a higher target towards 0.9050 resistance area. The bullish bias is expected to continue until price breaks below 20 EMA with a daily close.

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