Technical analysis of USD/JPY for July 25, 2017

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USD/JPY is expected to trade with bullish outlook. The pair posted a rebound from 110.60 (the low of July 24) and broke above its 20-period and 50-period moving averages. In addition, the bullish cross between 20-period and 50-period moving averages has been identified, which indicates a positive signal. The relative strength index is bullish and calls for a further upside.

To sum up, while the price is above 110.80, look for a rebound to 111.80 and even to 112.10 in extension.

Alternatively, if the price moves in the opposite direction, a short position is recommended below 110.80 with a target at 110.60.

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 signal 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: 110.80, Take Profit: 111.80

Resistance levels: 111.80, 112.10, and 112.45 Support Levels: 110.60, 110.35, 110.00

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Technical analysis of USD/CHF for July 25, 2017

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USD/CHF is expected to trade with a bullish outlook. The pair posted a rebound and broke above its 20-period and 50-period moving averages. The relative strength index is supported by a bullish trend line since 24 July and shows upside momentum.

To sum up, as long as 0.9440 holds on the downside, expect a continuation of rebound to 0.9520 and even to 0.9540 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: BUY, Stop Loss: 0.9440, Take Profit: 0.9520

Resistance levels: 0.9520, 0.9540, and 0.9565

Support levels: 0.940, 0.9375, and 0.9335

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Technical analysis of GBP/JPY for July 25, 2017

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GBP/JPY is expected to trade in a higher range. The pair is rebounding and is trading above the rising 20-period moving average, which is playing a support role. In addition, the 20-period moving average just crossed above the 50-period one, which is a positive signal. It is still supported by a rising 50-period moving average.

A support base at 144.45 has formed and has allowed for a temporary stabilization. To sum up, as long as this key level is not broken, look for a further upside to 146.30 and even to 146.90 in extension.

Alternatively, if the price moves in the opposite direction as predicted, a short position is recommended below 144.45 with the target at 141.00.

Strategy: BUY, Stop Loss: 144.45, Take Profit: 14.55.

Chart Explanation: the black line shows the pivot point. The price above pivot point indicates the bullish position and when it is below pivot points, it indicates 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.

Resistance levels: 146.30, 146.90, and 147.60

Support levels: 144.00, 143.55, and 143.00.

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Technical analysis of NZD/USD for July 25, 2017

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NZD/USD is expected to trade with a bearish outlook. The pair is capped by a bearish trend line since 21 July, which confirms a negative outlook. The relative strength index is also capped by a declining trend line since 20 July. The upside potential should be limited by the key resistance at 0.7460 (the high of July 21).

Therefore, as long as this key level is not surpassed, expect a return to 0.7390 and 0.7360 in extension.

Strategy: SELL Stop Loss: 0.7460 Take Profit: 0.7390

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: 0.750, 0.7530, and 0.7565

Support levels: 0.7390, 0.7360, and 0.7330

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

Fundamental Analysis of GBP/USD for July 25, 2017

GBP/USD has been bullish recently due to bad economic reports on the USD side despite the political unrest and Brexit effect on the currency. Today GBP CBI Industrial Order Expectations report was published with a decreased figure at 10 from the previous figure at 16 which was expected to be at 12 and 30-y Bond Auction report was published at 1.83|2.2 which previously was at 1.67|2.1. On the USD side, today CB Consumer Confidence report is going to be published which is expected to decrease to 116.5 from the previous value of 118.9, HPI report is expected to decrease to 0.5% from the previous value of 0.7%, S&P/CS Composite-20 HPI report is expected to have a slight increase to 5.8% from the previous value of 5.7% and Richmond Manufacturing Index is expected to be unchanged at 7. Despite the bad economic reports on the GBP today the currency is currently showing some good gains over USD and expected to gain further in the coming days.

Now let us look at the technical view, the price is currently residing above the resistance level of 1.3040 and if the price remains above the level with a daily close further bullish move towards 1.3370 is expected to reach in the coming days. As the price remains above the dynamic level of 20 EMA the bullish bias is expected to continue further in this pair.

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NZD/USD Intraday technical levels and trading recommendations for July 25, 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 in 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 which is being temporarily breached to the upside.

Now the price zone of 0.7310-0.7380 turns to be a newly-established demand-zone to be watched for possible bullish rejection if any bearish pullback occurs.

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Intraday technical levels and trading recommendations for EUR/USD for July 25, 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 (1.0500-1.1450) until a breakout occurs in either direction.

The recent bullish breakout above 1.1450 allows a quick bullish advance towards 1.1710, 1.1850 and 1.2000.

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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.

As anticipated, the ongoing bullish momentum allowed the EUR/USD pair to pursue further advance towards 1.1415-1.1520 (Daily Supply-Zone).

The daily supply zone failed to pause the ongoing bullish momentum. Instead, a temporary bullish breakout is being witnessed on the chart.

The nearest supply level to meet the pair is located around 1.1720 (August 2015 Highest level) where price action should be watched for a bearish pullback.

On the other hand, the price zone of 1.1260-1.1130 stands as a prominent DEMAND zone to be watched if bearish pullback persists below 1.1400.

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Global macro overview for 25/07/2017

Global macro overview for 25/07/2017:

Some important and positive conclusions from OPEC and non-OPEC members meeting are in focus of global investors. The Joint OPEC and non-OPEC Ministerial Monitoring Committee (JMMC) had met on Monday in Saint Petersburg to exchange analytical data and forecasts between the participants of the agreement. After the JMMC examined the results of the Joint Technical Committee's (JTC) research into the recovery of the crude oil market's balance, the key conclusions from the meeting were that the global crude oil demand will increase in the second half of 2017 by 2 million barrels per day, which will help drain commercial crude oil reserves. Moreover, JTC concluded, that as of June 2017, members of the OPEC/non-OPEC (unofficially labeled OPEC+) have complied with 98% of the total oil production cut requirement. Nevertheless, according to JTC, despite overall significant efforts to reduce output, results of certain countries could have been better, so a strategy has been developed that will assist producers in reaching 100% compliance. At the end, all OPEC+ members agreed on a possible prolongation of the agreement beyond March 2018 and a possible introduction of additional measures in order to stabilize the markets.

Two countries were driving a special piece of attention, Lybia, and Nigeria, as both of them does not have any limits in oil production and are actively increasing it. However, the JMMC policymakers agreed that the JMMC will supervise the progress of Lybia and Nigeria as one day they both are expected to become active members of OPEC+. The conditions are very simple, they both must stabilize their oil output to OPEC standards.

Let's now take a look at USD/CAD technical picture at the daily timeframe. This pair is very strongly correlated to Crude Oil prices (negative correlation). Currently, the price of USD/CAD is trying to test the muli-month low at the level of 1.2456 while trading in severely oversold market conditions. In a case of a bounce, the nearest technical resistance is seen at the level of 1.2653.

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Fundamental analysis of USDJPY for July 25, 2017

USD/JPY is currently showing some bullish pressure after rejecting the support level of 110.60 yesterday. Today the Bank of Japan revealed the Monetary Policy Meeting Minutes today which showed that the bank is holding the monetary policy upgradation and not disclosed any hint on quantitative easing. That is why the Japanese currency has got weaker in the process. Yesterday Japan's Flash Manufacturing report showed a slight decrease to 52.2 from the previous reading of 52.4 which was expected to be at 52.3. On the other hand, the United States posted some downbeat economic report recently so the yen managed to gain ground against the greenback. Today, the CB Consumer Confidence report is going to be published which is expected to decrease to 116.5 from previous value of 118.9. Besides, the HPI report is expected to show decrease to 0.5% from the previous value of 0.7%. S&P/CS Composite-20 HPI report is expected to show a slight increase to 5.8% from the previous value of 5.7% and Richmond Manufacturing Index is expected to be unchanged at 7. As the Fed interest rates decision is going to be published tomorrow along with the monetary policy statement, USD is expected to show some more gains over JPY in the coming days. FED is expected to be quite hawkish on the interest rate decisions and inflation outlook tomorrow.

Now let us look at the technical view. The price has shown a good amount of bearish rejection and bullish pressure yesterday which is continued even today. The price is expected to reach the recent resistance at 112.30 before proceeding further down towards 110.20 support level in the coming days. The pair is currently in a corrective volatile structure where it is expected to be bullish in the nearest future despite the long-term trend is bearish.

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Analysis of GBP/USD for July 25, 2017

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Recently, the GBP/USD has been trading downwards. The price tested the level of 1.3007. According to the 30M time frame, I found that the pair is trading in the upward channel and that there is a successful testing of lower diagonal. Besides, I found a hidden bullish divergence on the moving average oscilator, which is another sign of strength. My advice is to watch for potential buying opportuntiies. The upward targets are set at 1.3055 and 1.3100.

Resistance levels:

R1: 1.3060

R2: 1.3090

R3: 1.3125

Support levels:

S1: 1.3000

S2: 1.2960

S3: 1.2930

Trading recommendations for today: watch for potential buying opportunities.

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EUR/USD analysis for July 25, 2017

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Recently, the EUR/USD has been trading sideways at the price of 1.1653. According to the 30M time frame, I found that price respected the upward trend line few times, which is sign that selling looks risky. The EUR/USD is in short term upward trend and my advice is to watch for potential buying opportunities. I also found hidden bullish divergence on the RSI indicator, which is another sign of strength. The upward target is set at the price of 1.1682 and 1.1700.

Resistance levels:

R1: 1.1675

R2: 1.1710

R3: 1.1732

Support levels:

S1: 1.1615

S2: 1.1590

S3: 1.1560

Trading recommendations for today: watch for potential buying opportunities.

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Global macro overview for 25/07/2017

Global macro overview for 25/07/2017:

The better than expected data from US economy has surprised the market participants. The US PMI Composite Output Index strengthened to 6-month high at the level of 54.2 points from 53.9 points previously. The Flash Services sector PMI index was unchanged in the month and in line with consensus forecasts at 54.2 points and the Flash PMI Manufacturing reading for July increased to 53.2 points from the June reading of 52.0 points and was better than market participants expectations of 52.3 points. The other good news is that the new orders increased at the fastest pace in six months especially in the services sector of the economy, who recorded the biggest expansion in two years. On the other hand, the exports orders declined slightly due to the lack of the US Dollar strength in overseas countries. At last, the job market remains in a good shape with the strongest job pace creation in 2017, so the next NFP Payrolls number is again expected to be above 200k.

In conclusion, the released data suggests solid US GDP growth with some evidence of underlying acceleration of economic activity. Despite the weaker US Dollar, the current data shouldn't discourage the Federal Reserve policy members to continue to normalize the monetary policy, although subdued pricing data will dictate underlying caution.

Let's now take a look at the USD/JPY technical picture at the H4 timeframe. The market is bouncing from the technical support at the level of 110.61 and the next target for bulls is at the level of 111.71. The clear bullish divergence and oversold market conditions support the view.

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Trading plan for 25/07/2017

Trading plan for 25/07/2017:

The US Dollar continues the period of a weakness as EUR/USD rises to around 1.1670 level, GBP/USD is above 1.3020 and USD/JPY has clear problems with a permanent return over 111.00 level. AUD/USD is close to 0.7950 and NZD/USD has reached 0.7450. Optimistic mood prevails on Wall Street as the S&P500 and Dow Jones declined just slightly and the S&P500 futures are now again rising towards the 2,470 points. The main Asian indexes are symbolically under the line. Neither the Nikkei 225 nor the Shanghai Composite and the Hang Seng lose more than 0.1%.

On Tuesday 25th of July, the event calendar is bereft of important data releases, but market participants will pay attention to the German Import Price Index and Ifo Business Climate data. Moreover, during the US session the CB Consumer Confidence data from the US will be presented and later in the day MPC Member Andy Haldane will give a speech.

Analysis of EUR/USD for 25/07/2017:

The sentiment data in form of Ifo Business Confidence Index, Ifo Current Assesment Index, and Ifo Expectations Index have all beat market expectations. The Business Confidence Index was released at the level of 116.0 points, while the previous reading was 115.1 points and the expectations were at 114.9 points. The Ifo Current Assesment Index was released at the level of 125.4 points, while market participants expected 123.8 points and the previous data was at the level of 124.1 points. The Ifo Expectations Index was released at 107.3 points, and it beat market expectations of 106.5 points and the previous reading of 106.8 points.

Analysts were expecting a slight decrease in last month's peak, but growth in July was maintained (with favorable monthly revisions for the month).The data proved that the German economy is still developing at a steady and positive pace and the responders of the survey see the economic situation within the next 6 months as positive and favorable as well.

Let's now take a look at the ERU/USD technical picture on the H4 timeframe. The market trades in a narrow range between the level of 1.1685 - 1.1617 and this sideways congestion might last as long as one of the levels will be definitely violated. The next important technical support is seen at the level of 1.1583 and the next important technical resistance is found at 1.1715.

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Market Snapshot: Crude Oil bounces from oversold levels

Crude oil prices have bounced slightly after the OPEC meeting finished, but none of the important levels were violated. The main technical resistance at the level of $47.53 - $47.30 is still active and without a break higher bulls will not take back the control over this market. The next technical support is seen at $45.39, but the more important one is at the level of $45.00.

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Market Snapshot: GBP/USD in a consolidation mode

The price of GBP/USD is trading sideways after a bounce from 61%Fibo support at the level of 1.2931. The previous technical resistance zone between the levels of 1.3028 - 1.3047 seems to cap any attempt to rally higher and the long wicks indicate a possible bearish case building in this area.

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Trend against the dollar is not complete. We are waiting for the Fed.

Morning review.

Monday was expected to be a sluggish trading day. On the other hand, trends remain strong which shows growth of other currencies against the dollar, as well as to the growth of the US market. Moreover, a lot of things happened and it is possible for a strong correction. Furthermore, a number of important releases are scheduled on Wednesday and Friday which includes news from the Fed, US durable good orders and US GDP for the 2nd quarter.

Logically, if markets can secure the consolidation during the afternoon, then it is possible to continue moving on the trends. Either way, the unexpected strong data from the Fed or the US economy will cause a strong correction.

Today at 17.00 London time, the US consumer sentiment index is predicted to decline from 118.9 to 117.0 which is opposed to the dollar.

EURUSD

It is more relevant to bet on growth like on purchases for breakdown at 1.1685 above. Alternatively, it appeared to be riskier but it's possible to sell for a breakthrough at 1.1625 down.

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Technical analysis of USDX for July 25, 2017

The Dollar index remains in a bearish trend. No reversal signal yet, although we have some warning signs as oscillators get oversold. The key support area for the long-term is at 92-93.

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Blue lines - bearish channel

The Dollar index is clearly in a bearish trend making lower lows and lower highs. Price remains inside the bearish channel and below both the tenkan- and kijun-sen indicators on the 4-hour chart. Short-term support is at 93.50 and resistance is at 94.50.

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Green rectangle - long-term support area

The Dollar index has broken below the weekly Kumo (cloud) and is heading towards the green rectangle support area where it could also find support at the 200 MA currently at 92.35. Oscillators are oversold. It is just a warning to be cautious.

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Technical analysis of gold for July 25, 2017

The Gold price is consolidating near its highs. It is very possible that we might see a move above $1,260 soon for a final new high of this move that started at $1,205. Gold bulls must be very cautious as a pull back is justified from current levels.

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Blue lines - bullish channel

The Gold price is inside the bullish channel and above both the tenkan- and kijun-sen in the 4-hour chart as shown above. The trend is clearly bullish as the price is making higher highs and higher lows. There is no trend reversal signal, only warnings that this short-term trend might end soon. Support is at $1,247. Resistance is at $1,264.

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On a daily basis, the Gold price is approaching the 61.8% Fibonacci retracement and the daily Kumo (cloud) resistance. Daily support is at $1,236-30. Resistance zone is found at $1,257-63.The material has been provided by InstaForex Company - www.instaforex.com

The Aussie got off to the favorites

Since the beginning of the year, the Australian dollar has gained more than 10% relative to the U.S. dollar and is fighting for first place with the euro on the list of the G10 best performers. Firmly high appetite for risk, low volatility in financial markets, increased activity of carry traders, recovery of iron ore prices, improved data of the Green Continent and higher likelihood that the RBA tightens monetary policy are the main drivers for strengthening the "Aussie". The Reserve Bank does not like the strengthening of the Australian currency.

Over the past couple of weeks, the AUD/USD pair has increased by 4% amid the hawkish notes of the protocol of the last RBA meeting, China's GDP and the Australian labor market's strong data. A big role in the acceleration of the upward trend was played by political scandals surrounding Donald Trump and the Fed's willingness to change the previously planned path of hiking the rate for federal funds. At the same time, according to Credit Agricole, the global appetite for risk will remain stable as long as the Federal Reserve adheres to the practice of dependence of its decision on incoming data on the US economy. This would be possible only if US data continues to disappoint, then the chances for a monetary tightening will be moved to 2018 and the AUD/USD pair will continue the rally. Furthermore, the likelihood of a hike in the cash-rate from the current 1.5% is gradually increasing.

The dynamics of the probability of tightening monetary policy of the RBA

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Source: Bloomberg.

Improving the external background and health of the Australian economy indicates the need to complete the cycle of monetary easing, which started in 2011. At that time, the main interest rate was at the level of 3.25%. According to HSBC, strengthening the "Aussie" by 5% is equivalent to a cash-rate rise of 25 basis points. At the same time, since the beginning of May, the trade-weighted rate of the Australian dollar firmed by 6%.

Dynamics of cash-rate and the Australian dollar rate

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Source: Bloomberg.

Moreover, a number of banks warned that the "Aussie" was vulnerable to adjustment in the conditions of the RBA's growing discontent with the national currency and the inflated positioning in the futures market. The AUD/USD pair reacted sensitively to the verbal intervention of Guy Debelle, the deputy head of the Reserve Bank. He noted that the Aussie's high rate complicates the reorientation of the economy from mining to services. Talking about the equilibrium interest rate does not mean that the RBA is going to raise it. Simply, GDP is moving slightly lower than it was in the 1990s.

Important factors for the medium-term prospects of the AUD/USD are data releases on Australian inflation, US GDP for the second quarter and the results of the FOMC meeting. CPI will likely slow down, however, correction would most probably be used for buying the "Aussie".

Technically, the implementation of the inverted "Splash and Shelf" pattern with the exit of prices outside the long-term consolidation range of 0.716-0.776 raises the risks of the uptrend development in the direction of the target by 127.2% on the "Perfect Butterfly" pattern.

AUD/USD, daily chart

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Elliott Wave Ananlysis of EUR/NZD for July 25, 2017

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Wave summary:

The range-trading continues here. We continue to look for a break above minor resistance at 1.5780 and more importantly a break above resistance at 1.5899 that confirms continuation higher to 1.6236 and above.

Only an unexpected break below 1.5419 will delay the expected rally higher.

Trading recommendation:

We are long EUR from 1.5510 with stop placed at 1.5410. If you are not long EUR yet, then buy a break above 1.5780 and use the same stop.

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Elliott Wave Ananlysis of EUR/JPY for July 25, 2017

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Wave summary:

As long as minor resistance at 129.70 is able to cap the upside, we will continue to look for a deeper decline in wave c of iv closer to 127.22. Once this target has been tested or upon a direct break above minor resistance at 129.70 the final rally higher towards 133.46 should be seen to complete the rally from 115.09.

Trading recommendation:

We are short EUR from 129.88 and will move our stop + reverse lower to 129.75. Take-profit + reverse will be placed at 127.50.

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Daily analysis of major pairs for July 25, 2017

EUR/USD: This is a bull market, although the price merely went sideways on July 24. The price is currently between the support line at 1.1650 and the resistance line at 1.1700. The resistance line at 1.1700 is the next target for today and tomorrow. Once it is breached to the upside, there is another target at the resistance line at 1.1800.

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USD/CHF: The USD/CHF did nothing significant on Monday. The price moved sideways in the context of a downtrend, and the downtrend is supposed to continue as price goes towards the support lines at 0.9450, and 0.9400. On the other hand, there could be a reversal of the trend when USD gains stamina.

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GBP/USD: The Cable is neutral in the short-term, and bullish in the long-term. A movement above the distribution territory at 1.3150 would strengthen the recent bullish bias; a movement below the accumulation territory at 1.2800 would result in a bearish bias. The further sideways movement would bring more consolidation.

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USD/JPY: There has been a slight upwards movement on this pair, which is essentially in the context of a downtrend. This can end up being opportunities to sell short at a better price, for the Bearish Confirmation Pattern in the market is intact, and the outlook on JPY pairs is bearish for the rest of the month.

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EUR/JPY: This cross has held out its bullishness so far, in spite of the short-term consolidation being witnessed. One reason the cross is able to remain bullish till now is the strength in the EUR itself, and things would begin to drop once the EUR loses strength. There is a possibility of a bearish reversal before the end of the month.

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Technical analysis of EUR/USD for July 25, 2017

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When the European market opens, some Economic Data will be released, such as Belgian NBB Business Climate, German Ifo Business Climate, and German Import Prices m/m. The US will release the Economic Data, too, such as Richmond Manufacturing Index, CB Consumer Confidence, S&P/CS Composite-20 HPI y/y, and HPI m/m, so, amid the reports, EUR/USD will move in a low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Breakout BUY Level: 1.1694.

Strong Resistance:1.1687.

Original Resistance: 1.1676.

Inner Sell Area: 1.1665.

Target Inner Area: 1.1637.

Inner Buy Area: 1.1609.

Original Support: 1.1598.

Strong Support: 1.1587.

Breakout SELL Level: 1.1580.

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 25, 2017

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In Asia, Japan will release the Monetary Policy Meeting Minutes data, and the US will release some Economic Data, such as Richmond Manufacturing Index, CB Consumer Confidence, S&P/CS Composite-20 HPI y/y, and HPI 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: 111.83.

Resistance. 2: 111.61.

Resistance. 1: 111.40.

Support. 1: 111.11.

Support. 2: 110.90.

Support. 3: 110.68.

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

EUR/USD dropping nicely, remain bearish for a further drop

The price has started to drop really nicely from our selling area. We prepare to sell below 1.1658 resistance (Fibonacci retracement, horizontal overlap resistance) for a further push down to at least 1.1583 support (Fibonacci retracement, horizontal pullback support).

Stochastic (55,5,3) is dropping nicely from our 98% resistance and has good downside potential.

Sell below 1.1658. Stop loss is at 1.1690. Take profit is at 1.1583.

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USD/CHF bouncing up nicely, remain bullish for a further rise

The price has bounced up perfectly from our buying area and is fast approaching our profit target. We continue to buy above 0.9474 support (resistance-turned-support level) for a further push up to 0.9523 resistance (Fibonacci retracement, horizontal overlap resistance).

Stochastic (55,5,3) is bouncing nicely above our support at 3.6%.

Buy above 0.9474. Stop loss is at 0.9441. Take profit is at 0.9523.

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NZD/USD prepare to sell on break of major support

The price is hovering above the key support level at 0.7423 (Fibonacci retracement, horizontal overlap support) and we plan to sell on the break of such a key support for a push down to at least 0.7332 support (Fibonacci retracement, horizontal swing low support).

Stochastic (55,5,3) is seeing major resistance below 94% where we expect a further drop from soon. Confirmation of the break of our key support on price is needed to confirm our move down.

Sell below 0.7423. Stop loss is at 0.7461. Take profit is at 0.7332.

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AUD/USD prepare to sell on break of key support

The price is hovering above key support at 0.7871 (Fibonacci retracement, horizontal swing low support) and we prepare to sell once price breaks this key level. Our profit target is a push down to next key support level at 0.7741 (Fibonacci retracement, horizontal pullback support).

RSI (55) is seeing bearish momentum within its bearish descending channel.

Sell below 0.7871. Stop loss is at 0.7937. Take profit is at 0.7741.

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AUD/JPY right on resistance, remain bearish for a further drop

We remain bearish looking to sell below 88.15 resistance (Fibonacci retracement, horizontal overlap resistance) for a further drop towards 87.52 support (Fibonacci extension, Fibonacci retracement, horizontal swing low support).

RSI (34) sees long term descending resistance holding price momentum down which helps us keep our bearish bias.

Sell below 88.15. Stop loss is at 88.60. Take profit is at 87.52.

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USD/JPY bouncing nicely as expected, remain bullish for a further bounce

The price has dropped further to our buying area and has now started bouncing off our key support area. The plan is to remain bullish above the key support level at 110.88 (Fibonacci retracement, horizontal overlap support, Fibonacci extension) and we expect to see a bounce above this level for a short term correction to at least 112.42 resistance (Fibonacci retracement, horizontal overlap resistance).

Stochastic (34,5,3) is bouncing nicely off our 1.2% support as expected.

Buy above 110.88. Stop loss is at 109.97. Take profit is at 112.42.

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Technical analysis of NZD/USD for July 25, 2017

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Overview:

  • The USD/CHF pair bullish trend from the support levels of 0.7333 and 0.7282. Right now, the price is in a bullish channel.
  • This is confirmed by the RSI indicator signaling that we are still in a bullish trending market. As the price is still above the moving average (100), immediate support is seen at 0.7333, which coincides with the 50% of Fibonacci retracement levels.
  • Consequently, the first support is set at the level of 0.7333. So, the market is likely to show signs of a bullish trend around the spot of 0.7333. In other words, buy orders are recommended above the golden ratio (0.7333) with the first target at the level of 0.7414.
  • Furthermore, if the trend is able to break out through the first resistance level of 0.7414. We should see the pair climbing towards the double top (0.7414) to test it.
  • If the trend breaks the support at 0.7414 (first resistance) the pair will move upwards continuing the development of the bullish trend to the level 0.7466 in order to test the daily resistance 2. It would also be wise to consider where to place a stop loss; this should be set below the second support of 0.7282.
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Technical analysis of USD/CHF for July 25, 2017

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Overview:

  • The USD/CHF pair continues moving downwards from the level of 0.9525. Today, the first resistance level is currently seen at 0.9525, the price is moving in a bearish channel now. According to the previous events, we expect the USD/CHF pair to trade between 0.9525 and 0.9400. So, the support stands at 0.9400, while daily resistance is found at 0.9525. Therefore, the market is likely to show signs of a bearish trend around the spot of 0.9525. In other words, sell orders are recommended below the spot of 0.9525 with the first target at the level of 0.9400 and continue towards 0.9360 in order to test the weekly support 1 on the H4 chart. On the other hand, if the USD/CHF pair fails to break through the first resistance level of 0.9525 today, the market will move upwards continuing the development of the bullish trend to the level 0.9623 (double top).
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Daily analysis of USDX for July 25, 2017

USDX is currently forming a bottom around the psychological zone of 94.00 and we can expect some corrective moves to take place, towards the 200 SMA at H1 chart. If a dynamic resistance is found around that area, the index could resume the bearish path towards the 93.29 level. MACD indicator is supporting the recovery scenario.

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H1 chart's resistance levels: 94.85 / 95.57

H1 chart's support levels: 94.16 / 93.29

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 94.16, take profit is at 93.29 and stop loss is at 95.02.

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Daily analysis of GBP/USD for July 25, 2017

In the start of the week, GBP/USD started to retrace from the resistance zone of 1.3037, but it looks like the path for the week will be bullish as the pair is consolidated above the 200 SMA at H1 chart. That's why we expect a breakout above 1.3037 in order to test the 1.3106 level. MACD indicator remains in the neutral territory, calling for sideways.

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H1 chart's resistance levels: 1.3037 / 1.3106

H1 chart's support levels: 1.2968 / 1.2882

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 1.3037, take profit is at 1.3106 and stop loss is at 1.2968.

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