Analysis of Gold for September 06, 2017

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Recently, Gold has been trading upwards. The price tested the level of $1,344.48 in a high volume. According to the 15M time frame, I found that buyers are in control and that Fibonacci retracement 38.2% at the price of $1,337.00 held successfuly. My advice is to watch for potential buying opportuntiies. I have placed Fibonacci expansion to find a potential upward target. I got Fibonacci expansion 61.8% at the price of $1,344.00 and Fibonacci expansion 100% at the price of $1,354.00.

Resistance levels:

R1: $1,348.90

R2: $1,353.20

R3: $1,360.00

Support levels:

S1: $1,334.60

S2: $1.330.00

S3: $1,323.15

Trading recommendations for today: watch for potential buying opportunities.

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Trading Plan for EUR/USD and GBP/USD for September 06, 2017

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Technical outlook:

The EUR/USD 4H chart has been presented here with a simple wave structure and fibonacci ratios to highlight next probable move. The pair has produced a down leg as seen here between 1.2070 and 1.1820 levels last week, shown as blue arrow/s. Furthermore, the pair has retraced upto 61.8 percent of an earlier drop to 1.1980 levels and is most probably into its 3rd of 3rd wave now. Ideally, EUR/USD should remain below 1.2070 levels, to keep the above wave count/structure intact, and should resume lower towards 1.1750 and 1.1600 levels more quickly than expected. Interim support is seen at 1.1820 levels while strong resistance should be seen at 1.2070 levels as depicted above. There is no change in the trade direction suggested earlier, and it is a safe strategy to remain short on intraday rallies. The pair is seen to be trading around 1.1930/40 levels at this moment, an ideal place to add short positions. In the next 7 trading sessions, the pair is expected to drop through 1.1600 levels.

Trading plan:

Please continue holding short positions and also look to add now, stop above 1.2070 levels, target 1.1600.

GBPUSD chart setups:

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Technical outlook:

The GBP/USD story continues to carve out exactly as a book example of the wave principle and it can be easily rated as the chart of the month. Let us simply understand the wave structure presented on 4H chart view here. The entire drop between 1.3267 and 1.2770 levels is towards major trend which is down (produced as an impulse). Furthermore, the pair has produce a 3-wave counter trend rally where waves A and C are absolutely in sync and equal in pip counts (205 pips approx). Besides, note that it is trading very close to fibonacci 0.618 resistance as well which is expected to provide the required push lower. Finally, the pair looks to be ready for the much awaited wave 3 lower towards 1.2600 and 1.2300 levels at least. Major resistance is now seen through 1.3267 levels, while support is at 1.2900 levels. A safe strategy is to add short positions now and discussed earlier.

Trading plan:

Please remain short and look to add further around 1.3050 levels, stop at 1.3270 and target 1.2600 and lower. This is a slightly long-term trade plan which we have followed since beginning of August 2017.

Fundamental events:

Please watch out for USD ISM Manufacturing data to be out today at 10:00 AM EST.

Good luck!

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GBP/USD analysis for September 06, 2017

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Recently, the GBP/USD pair has been trading upwards. The price tested the level of 1.3055. According to the 15M time frame, I found broken trading range in the background, which is a sign that selling looks risky. I also found a successful test bar in a low volume, which is another sign of potential strength. My advice is to watch for potential buying opportunities. The upawrd target is set at the price of 1.3100.

Resistance levels:

R1: 1.3080

R2: 1.3130

R3: 1.3215

Support levels:

S1: 1.2945

S2: 1.2860

S3: 1.2810

Trading recommendations for today: consider potential buying opportunities.

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Bitcoin analysis for September 06, 2017

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The Bitcoin (BTC) is trading higher at the level of $4,588. Anyway, the news from Russia are not so promising for Bitcoin. The Bank of Russia has issued a statement warning about the risks of digital currencies including bitcoin as well as Initial Coin Offerings (ICOs). The central bank says it is premature to allow the circulation and use of cryptocurrencies within the financial infrastructure of Russia. "Operations with cryptocurrencies carry high risks both during exchange operations due to sharp exchange rate fluctuations, and in case of raising funds through the ICO (Initial Coin Offering – a form of attracting citizens' investments in the form of issuing and selling new cryptocurrency to investors / tokens)". The technical picture is confirming that there is space for lower price.

Trading recommendations:

According to the 1H time frame, I found a broken rising wedge in the background, which is a sign of weakness. Most recently, there is a smaller rising wedge in creation and my advice is to watch for potential selling opportunities if the price breaks the upward trendline. The downward targets will be set at the price of $4,000 and $3,607

Support/Resistance

$4.000 – Local support (projected target)

$3.606 – Major short-term support

$4.622 – Resistance (gap zone)

$4.570- Fibonacci resistance 61.8%

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NZD/USD Intraday technical levels and trading recommendations for September 6, 2017

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Daily Outlook

In February 2017, the depicted short-term downtrend was initiated around 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 (Key-Zone) 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 was temporarily breached to the upside.

Recent bearish pullback was executed towards the price zone of 0.7310-0.7380 (newly-established demand-zone) which failed to offer enough bullish support for the NZD/USD pair.

Re-consolidation below the price level of 0.7300 enhances the bearish side of the market. This brings the NZD/USD pair again towards 0.7230-0.7150 (Key-Zone) where recent weak bullish recovery was manifested on August 16.

On the other hand, an atypical Head and Shoulders pattern is being expressed on the depicted chart indicating high probability of bearish reversal.

Breakdown of the neckline 0.7150 confirms the reversal pattern. Expected bearish targets are located around 0.7050, 0.6925 and eventually 0.6800.

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Intraday technical levels and trading recommendations for EUR/USD for September 6, 2017

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Monthly Outlook

In January 2015, the EUR/USD pair moved below the major demand levels near 1.2050-1.2100 (multiple previous bottoms set in July 2012 and June 2010). Hence, a long-term bearish target was 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.

However, the EUR/USD pair has been trapped within the depicted consolidation range (1.0500-1.1450) until the current bullish breakout was executed above 1.1450.

The current bullish breakout above 1.1450 allows a quick bullish advance towards 1.2100 where price action should be watched for evident bearish rejection and a valid SELL Entry.

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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 bullish advance towards 1.1415-1.1520 (Previous Daily Supply-Zone).

The daily supply zone failed to pause the ongoing bullish momentum. Instead, evident bullish breakout is being witnessed on the chart.The nearest Supply level to meet the pair is located around 1.2080 (Level of previous multiple bottoms) where bearish rejection can be anticipated.

On the other hand, the price zone of 1.1415-1.1520 should be watched for a valid BUY entry if the current bearish pullback persists below 1.1800 and 1.1700.

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Technical analysis of NZD/USD for September 06, 2017

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Overview:

  • The trend of NZD/USD pair movement was controversial as it took place in a narrow sideways channel, the market showed signs of instability. Amid the previous events, the price is still moving between the levels of 0.7170 and 0.7298. Also, the daily resistance and support are seen at the levels of 0.7170 and 0.7131 respectively. Therefore, it is recommended to be cautious while placing orders in this area. So, we need to wait until the sideways channel has completed. Yesterday, the market moved from its bottom at 0.7170 and continued to rise towards the top of 0.7262. Today, in the one-hour chart, the current rise will remain within a framework of correction. However, if the pair fails to pass through the level of 0.7170, the market will indicate a bearish opportunity below the strong resistance level of 0.7262 (the level of 0.7262 coincides with the double top too). Since there is nothing new in this market, it is not bullish yet. Sell deals are recommended below the level of 0.7262 with the first target at 0.7170. If the trend breaks the support level of 0.7170, the pair is likely to move downwards continuing the development of a bearish trend to the level 0.7131 in order to test the daily support 2.
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Technical analysis of USD/CHF for September 06, 2017

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Overview:

  • The USD/CHF pair is trading with bullish bias from the support levels of 0.9558. Currently, the price is in a bullish channel and the price is seen at the spot of 0.9558- 0.9509.
  • The USD/CHF pair will probably continue to move upwards from the level of 0.9558. Yesterday, the pair rose from the level of 0.9558 to a top around 0.9670.
  • Today, the first resistance level is seen at 0.9693 followed by 0.9725, while daily support 1 is found at 0.9558 (38.2% Fibonacci retracement).
  • The USD/CHF pair is still moving between the levels of 0.9550 and 0.9636.
  • Furthermore, if the trend is able to break out through the first resistance level at 0.9693, buy above the level of 0.9558 with the first target at 0.9693 in order to test the daily resistance 1 and further to 0.9725. Also, it might be noted that the level of 0.9725 is a good place to take profit because it will form a major resistance today.
  • However, if a breakout takes place at the support level of 0.9500, then this scenario may become invalidated.
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EUR/USD remain bearish as we continue to test resistance

The price is now testing major resistance at 1.1918 (Fibonacci retracement, horizontal overlap resistance, bearish price action, Fibonacci extension) and we expect a strong reaction from this level to push the price down to 1.1825 support (Fibonacci retracement, horizontal overlap support, Fibonacci extension).

Stochastic (34,5,3) is seeing major resistance below 94% where we expect a drop from.

Sell below 1.1918. Stop loss is at 1.1955. Take profit is at 1.1825.

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Global macro overview for 06/09/2017

Global macro overview for 06/09/2017:

The Australian GDP failed to beat the estimates as official growth data came in broadly as expected. Market participants expected the second quarter GDP, which is a significant report serving as one of the primary indicators of a country's overall economic health, to increase from 0.3% to 0.8% q/q and indeed, Gross Domestic Product rose by 0.8% in the quarter, and 1.8% on the year. Nevertheless, global investors might feel a little disappointed, because the recent construction and services data for the same period were very strong. This is why there were some reasons to anticipate even better than expected figures.

The Reserve Bank of Australia left the interest rates on hold earlier this week amid the positive economic indicators. The rhetoric against AUD was not tightened - it was reiterated that the strong AUD was ahead of growth prospects and employment and could be declining price pressures. Any interest rate hike has been set aside at least until the second quarter of 2018 as event any loosening the monetary policy would jeopardize the stability of the housing market.

Let's now take a look at the AUD/USD technical picture on the H4 time frame. The GDP figures come at a crucial juncture for the year's Australian Dollar trade. The AU is D still trading close to the yearly highs, mostly due to the weak US Dollar, but so far bulls did not manage to break out above the swing high at the level of 0.8064. The momentum is still above the fifty level, but there are the clear signs of a growing bearish divergence that might push the price back to the level of 0.7865.

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Technical analysis of NZD/USD for September 06, 2017

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Technical analysis of NZD/USD for September 06, 2017

Fundamental Analysis of EUR/JPY for September 6, 2017

EUR/JPY is currently residing inside the corrective and volatile structure of 128.50 to 130.60 area after a long non-volatile bullish trend in place. EUR and JPY have been mixed with the economic reports published recently which lead to further correction in the market. Today, German Factory Orders report was published with a negative value at -0.7% from the previous positive value of 0.9% which was expected to be at 0.2%, Italian Retail Sales report was published as expected at -0.2% which previously was positive at 0.6%, and Retail PMI report showed a slight decrease to 50.8 from the previous figure of 51.0. On the JPY side, today Average Cash Earning report showed negative value of -0.3% from the previous positive value of 0.4% which was expected to increase to 0.5%. To sum up, both currencies in this pair has been quite worse with the economic reports published today that is expected to lead to further correction in the coming days unless any high impact report with positive result provides any direction on either side of this pair.

Now let us look at the technical chart. The price is currently residing inside the range of 128.50-130.60 area which is expected to be corrective in nature inside this range. As of the current situation, we will be looking forward to having a break on either side of the range with a daily close showing some impulsive bullish or bearish direction to predict the upcoming move. As of the non-volatile bullish trend was in place for this pair before it came into the correction, the breakout towards the upper side is quite expected to happen. If price breaks above the 130.60 level with a daily close, then we will be looking forward to targeting 132.20 resistance level.

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Global macro overview for 06/09/2017

Global macro overview for 06/09/2017:

The recent comments from the Federal Reserve Bank policy makers are making hard times for the US Dollar bulls even worse. According to the recent remarks from US Federal Reserve's Board of Governors member Lael Brainard, the monetary policy in the United States should continue to be very careful. Another Federal Reserve policy maker, Federal Reserve Bank of Dallas Chairperson Robert Kaplan supported her view and said, that investors are expected to keep rates low and should not abandon a prudent policy based on macro data. In his opinion, it is still possible or even acceptable for a third rate hike this year, but it would be better to wait for more economic publications first. In addition, Kaplan expects relatively low US GDP growth for this year: 2.25%.

Every topic that investors focus on this week is the US Dollar and its disadvantage. North Korean threats engage the US government to respond and it is even difficult to gauge the risk of the armed conflict, so the markets prefer flight to safe-haven assets. In addition, Hurricane Irma is approaching the coast of Florida, which has already been named the most powerful hurricane in the Atlantic. It is also feared that by the end of September the US threatens the so-called "government shutdown" and a debt ceiling, although today's vote on the Hurricane Harvey disaster package in Texas and Louisiana should divert the risk of freezing public administration work. In conclusion, it is very difficult time to be a US Dollar bull, but all down trends will end at some point in time. anyway.

Let's now take a look at the US Dollar technical picture on the H4 time frame. The technical situation does not look good as well. The golden trend line has not been violated, so the market reversed around the level of 93.35 and now is moving lower towards the recent swing low at the level of 91.93, which means another lower low in the down trend might be made soon.

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Fundamental Analysis of USD/CAD for September 6, 2017

USD/CAD bearish trend is still quite intact but recently broke below the key support level of 1.2450. CAD has been quite dominating over USD after the rate hike decision was made last month whereas USD is quite weaker due to worse economic reports published recently. Today, the Bank of Canada is going to post the Rate Statement and the Overnight Rate report which is expected to be unchanged at 0.75%, Trade Balance report is expected to show less deficit at -3.2B from the previous figure of -3.6B and Labor Productivity report is expected to show a decrease to 0.9% from the previous value of 1.4%. On the USD side, today Trade Balance report is going to be published which is expected to show greater deficit at -44.6B from the previous figure of -43.6B, Final Services PMI report is expected to decrease to 56.8 from the previous figure of 56.9, and ISM Non-Manufacturing PMI is expected to increase to 55.8 from the previous figure of 53.9. To sum up, CAD is expected to gain ground with the economic reports whereas USD reports are expected to be rather weak. As of the rate decision of CAD, there are higher chances of rates being unchanged today whereas other economic reports of CAD being published today will contribute further with the gains. CAD is currently expected to gain further over USD in the coming days.

Now let us look at the technical chart. The price has recently broken below the key support level of 1.2450 which does signal further bearish pressure is going on. The impulsiveness of the bears is quite impressive in this pair whereas the trend has been non-volatile as well. As the price remains below 1.2700-1.2830 resistance area, the bearish bias is expected to continue further in this pair.

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Trading plan for September 6, 2017

Trading plan for September 6, 2017

General picture: The FOREX market is waiting for the decision of the ECB.

On Tuesday, the US market showed a significant decline of -1% on the Dow. It was somewhat belated reaction to the crisis around North Korea. The crisis is still in the acute phase, and there can be any continuation, up to the strongest US military strike against North Korea, especially if a new long-range missile launch is really launched toward Japan or Guam (US base).

In the rest, the market is calm before the ECB meeting on monetary policy tomorrow.

Today, there are important news in the US: At 15.00 London time, the ISM service index (if there is a very strong data) will have a possible euro hike (upward).

At 19.00 London time, we are waiting for the Fed's report on the state of the US economy (Beige book) and also a possible start of the euro.

EUR/USD

There are levels for trading on the breakthrough:

Top 1.1940 and further 1.1980

Down 1.1865 and further 1.1820

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Bitcoin analysis for 06/09/2017

Bitcoin analysis for 06/09/2017:

Despite the fact that China's authorities banned the ICO, Hong Kong regulators have released a "cautionary statement" to prospective investors. The Hong Kong Securities and Futures Commission (SFC) reiterates the message that ICO tokens could constitute securities under the local law. Previously, the US Securities and Exchange Commission (SEC) had issued multiple warnings about tokens requiring testing for securities compliance if necessary, so it looks like Hong Kong is following the SEC footsteps. In the meantime, it is still unclear whether China will permit ICOs to trade in a more controlled environment at some point in the future.

What country remains still the best for all blockchain technology users and companies starting out with blockchain technology who would like to release their own ICO? Singapore has long been a mecca for start-up companies because of such factors as friendly tax rules, unconstrained legal policies, and state funding. In the past, the Lion City has already hosted many successful ICO projects as it tries to regulate and support the cryptocurrencies and blockchain technology.

Let's now take a look at the Bitcoin cryptocurrency technical picture on the H4 time frame. After the bounce from the golden trend line support at the level of $3,992, the bulls have managed to push the price higher towards the key resistance zone between the levels of $4,376 - $4, 4470. According to the EWP, this bounce is a part of a corrective sub-wave (b) and might get terminated soon in order to complete wave (c) to the downside. In this situation, only a clear breakout above the recent all-time highs at the level of $4,970 will invalidate the downward scenario.

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The Fed plays on the side of the bears

The comments of a Fed's leader contributed to the resumption of dollar sales after a brief period of stabilization.

The tone was set by a member of the Board of Governors, Lael Brainard, who outlined the main problems faced by the Fed early in the morning of Tuesday. In particular, she said that inflation remains low not only for the last year, but possibly for a much longer time. She continued that inflation may remain low for five years without rising above the target level. At the same time, there is a "sharp reduction in unused labor", in other words, a reduction in unemployment and employment growth.

The market reaction could seem excessive, if not for one circumstance. The leader of the Federal Reserve publicly expresses confidence in the rapid growth of inflation, guided by the well-known dependence between the growth of nominal wages and the level of unemployment from 1958. This dependence, discovered by the English economist A.W. Phillips and bearing his name is known as the Phillips curve. It serves as a basis for adjusting monetary policy since the growth of wages should automatically lead to an increase in inflation.

Thus, for the first time in a long time, Breynard outlined the main problem: the Phillips curve has stopped working. The reduction in unemployment did not lead to an increase in the average wage and did not contribute to the growth of inflation. Therefore, the Fed is dealing with some new challenge, the nature of which needs to be understood deeper before continuing to raise rates.

Futures on the rate, according to CME, indicate a 37% probability of rate hike in the current year, and the threshold of 50% will be overcome only by June 2018. This also means that the plans for next year is three upgrades which are currently under threat.

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Later in the day, the position of Brainard was supported by other members of the Cabinet. The head of the Federal Reserve Bank of Minneapolis, Neel Kashkari expressed more specifically, in his opinion, the further increases in rates that he says could harm the US economy. That's why further increase should be refrained according to him. The head of the Federal Reserve Bank of Dallas, Robert Kaplan, also supported the pause in raising rates, saying that "it is necessary to show patience."

Thus, investors saw confusion in the speeches of the FRS leader and a desire to take a break, in order to better understand the situation. One of the two drivers, which contributed to the growth of the dollar, was virtually eliminated. The second driver which was the expectations of the tax reform of Donald Trump and the introduction of a package of fiscal stimulation, has long been under threat and has stopped fueling bullish sentiments. Financial conditions for business no longer look so attractive and bond yields are declining.

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It should be noted that the pause in the normalization of rates will in no way will prevent the Fed from proceeding to the stage of reducing the balance. These are unrelated issues. This means that the Fed can already announce the launch date of the program at the next meeting. This step can lead to increased volatility and increased tension, but it is unlikely to increase bullish sentiment among players.

Negative sentiment is increasing as losses are calculated from Hurricane Harvey, which according to recent data, may reach $ 180 billion. Harvey is replaced by another hurricane, which has already been given the maximum degree of danger. This, of course, does not improve the mood of players.

Today, we should pay attention to the publication of the ISM business activity index in the service sector. For quite a long time, the growth of the sector was the main driver of the US economy growth, since it was in the service sector that the bulk of new jobs were created. In July, the index fell sharply from 57.4p to 53.9p. Another fall can contribute to the formation of a new wave of dollar sales.

On Thursday night, the head of the Federal Reserve Bank of New York, William Dudley, who is considered an influential member of the Cabinet will enter with his vision of the economic situation. Earlier, Dudley was of the opinion that employment growth would ultimately lead to an increase in inflation, so if the market sees that Dudley has changed his position, then dollar sales may take an avalanche-like character.

Currently, there is no need to wait for a turn in the mood for the dollar. The favorite is gold and the euro will take a break until Thursday.

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Trading plan for 06/09/2017

Trading plan for 06/09/2017:

The currencies stabilized after yesterday's selloff in USD and the Asian session went rather calm. The EUR/USD pair is trading just above 1.1900, waiting for the ECB meeting tomorrow. USD/JPY is at 108.70. It only slightly moved from the lows at the level of 108.50. In the Japanese stock market, the Nikkei fell only 0.14% today, but the Chinese Hang Seng is a bit worse: -0.7%.

On Wednesday 6th of August, the event calendar is quite busy, especially during the US session. But first, Germany will issue the Factory Orders data and Italy will present the Retail Sales data. Then, the Bank of Canada will announce the Overnight Rate and Rate Statement, together with the Trade Balance and Labour Productivity data. Later on, the US will post the ISM Non-Manufacturing Index data.

Analysis of EUR/USD for 06/09/2017:

The German Factory Orders report released at 06:00 am GMT was far below the expectations. Market participants expected a drop from 0.9% to 0.2%, but the delivered number was at the level of -0.7% on a monthly basis. Moreover, on a yearly basis, the factory orders dropped from 5.1% to 5.0% instead of a rise to 5.8% as per market expectations. The consumer goods orders fell -3.0%, investment goods orders shrank -0.7%, and capital goods orders decreased -0.7% ( domestic -5.1%, foreign +2.2%). Only exports orders were unchanged. The recent data from the German economy were good and this is the first time this year when a part of the data underperforms. Whether that will be the beginning of a more serious slowdown, we will find out soon.

The market reaction to the data was limited as global investors are waiting for the European Central Bank interest rate decision tomorrow. Let's take a look at the technical picture on the H1 time frame. The market has formed some kind of a triangle pattern between the levels of 1.1980 - 1.1820 as the volatility is limited. The main support area between the levels of 1.1817 - 1.1865 is still not violated and the momentum indicator is not showing any developments in either direction. The market is likely to trade sideways until the ECB meeting.

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Market Snapshot: Gold still trades on highs

Gold has filled the weekend gap and bounced from the technical support at the level of $1,325. The new local high was made at the level of $1,344, but the market is trading in overbought conditions and there is a visible bearish divergence between the price and momentum indicator. The technical support at the level of $1,325 is the key level to the downside for bears.

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Market Snapshot: SPY declines more towards the trend line

SPY (S&P500 ETF) declined yesterday after failing to make another higher high above the level of 248.88. The price has bounced from the golden trend line support around the level of 245.00, but the indicators are still pointing to the downside. Any escalation in geopolitical tensions will make the bears dominate this market again. The low at the level of 243.93 is the key level to the downside.

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Ichimoku indicator analysis of USDX for September 6, 2017

The Dollar index tried to break out of the 4-hour Kumo resistance yesterday and change short-term trend to bullish, but it got rejected and has now broken below Ichimoku cloud support once again.

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Price is trading below the 4-hour Kumo and both the tenkan- and kijun-sen indicators. Trend is bearish. Resistance is at 92.70 and support at 91.60. Intermediate support can be found at 92.10. As long as price is below 92.70 trend will remain bearish and price will head towards 90.

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Red lines - bearish channel

On a daily basis, trend is bearish. Price broke below the tenkan-sen yesterday. This is not a good sign for Dollar bulls. Daily resistance is between 92.55-92.90. As long as price is below this area on a daily basis, we will be waiting for new lows. Break this resistance and we move towards 94.

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Ichimoku indicator analysis of gold for September 6, 2017

Gold price is very close to our second target of $1,350. Trend is bullish but also fragile for a pullback towards $1,300. Longer-term view remains bullish targeting above $1,400.

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Gold price is trading above the 4-hour tenkan-sen (Red line indicator). Trend is bullish as price is making higher highs and higher lows. RSI (5) is diverging providing warning signals. Support is at $1,334 and resistance at $1,350.

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Magenta line- resistance

Blue line -long-term support

Gold price is above the weekly Kumo and with RSI (5) making new highs. Trend is clearly bullish on a weekly basis and we have a short-term target of $1,350 after our first at $1,320 was achieved. A pullback towards $1,300 is possible before the break out towards $1,400. Longer-term view remains bullish.

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Technical analysis of USD/JPY for September 06, 2017

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All our targets which we predicted in our previous analysis have been hit. The pair recorded lower tops and lower bottoms since September 5, which confirmed a positive outlook. The downward momentum is further reinforced by both declining 20-period and 50-period moving averages. The relative strength index lacks upward momentum.

Hence, below 109.10, look for a new test to 108.30 and even to 107.95 in extension.

Alternatively, if the price moves in the opposite direction, a long position is recommended above 109.10 with a target at 109.55.

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: SELL, Stop Loss: 110.25, Take Profit: 109.50

Resistance levels: 109.55, 109.95, and 110.35

Support Levels: 108.30, 107.95, 107.50

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Technical analysis of USD/CHF for September 06, 2017

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The target which we have given in our previous signal has been hit. USD/CHF is expected to trade with a bearish outlook. The pair is trading below its declining 20-period and 50-period moving averages, which play resistance roles and maintain the downside bias. The relative strength index is bearish below its neutrality level at 50.

The U.S. Commerce Department reported that factory orders decreased 3.3% on month in July (as expected, vs. +3.2% in June), while durable goods orders fell 6.8% on the month (vs. -2.9% expected, +6.4% in June).

Hence, as long as 0.9575 holds on the upside, a further decline to 0.9520 and even to 0.9490 seems more likely to occur.

Chart Explanation: The black line shows the pivot point. The present price above the pivot point indicates the bullish position, and the price below the 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: 0.9575, Take Profit: 0.9520

Resistance levels: 0.9640, 0.9670, and 0.9715

Support levels: 0.9545, 0.9500, and 0.9475

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

Technical analysis of EUR/USD for Sept 06, 2017

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When the European market opens, some Economic Data will be released, such as Retail PMI, Italian Retail Sales m/m, and German Factory Orders m/m. The US will release the Economic Data, too, such as Beige Book, ISM Non-Manufacturing PMI, Final Services PMIn, and Trade Balance, so, amid the reports, EUR/USD will move in a low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Breakout BUY Level: 1.1981.

Strong Resistance:1.1974.

Original Resistance: 1.1962.

Inner Sell Area: 1.1950.

Target Inner Area: 1.1922.

Inner Buy Area: 1.1894.

Original Support: 1.1882.

Strong Support: 1.1870.

Breakout SELL Level: 1.1863.

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 Sept 06, 2017

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In Asia, Japan will release the Average Cash Earnings y/y data, and the US will release some Economic Data, such as Beige Book, ISM Non-Manufacturing PMI, Final Services PMI, and Trade Balance. So, there is a probability the USD/JPY will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Resistance. 3: 109.26.

Resistance. 2: 109.05.

Resistance. 1: 108.83.

Support. 1: 108.57.

Support. 2: 108.36.

Support. 3: 108.14.

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/JPY profit target reached again, prepare to buy

The price is approaching major support at 129.13 (Fibonacci retracement, horizontal overlap support) and we expect to see a bounce above this level to push the price up to at least 130.04 resistance (Fibonacci retracement, horizontal overlap resistance).

Stochastic (34,5,3) is seeing strong support above 4.6% where we expect a corresponding bounce from.

Buy above 129.13. Stop loss is at 128.46. Take profit is at 130.04.

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

NZD/USD testing major resistance, prepare to sell

The price is testing major resistance at 0.7261 (Multiple Fibonacci retracements, horizontal swing high resistance) and we expect to see a strong reaction from this level to push the price down to at least 0.7208 support (Fibonacci retracement, horizontal pullback support).

Stochastic (34,5,3) is seeing major resistance below 92% and we expect a corresponding reaction off this level.

Sell below 0.7261. Stop loss is at 0.7301. Take profit is at 0.7208.

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

USD/JPY approaching major support, prepare to buy

The price is approaching major support at 108.27 (Fibonacci extension, horizontal swing low support, channel support) where we expect a bounce from to push price up to at least 109.46 resistance (Fibonacci retracement, horizontal overlap resistance).

Stochastic (34,5,3) is seeing strong support above 3.4% where we expect a corresponding bounce from.

Buy above 108.27. Stop loss is at 107.92. Take profit is at 109.46.

analytics59af51e2504c0.png

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

AUD/JPY remain bullish as we continue to test support

The price has continued to test our buying area yesterday. We prepare to buy above major support at 86.92 (Fibonacci retracement, horizontal overlap support) for a bounce up to at least 87.61 resistance (Fibonacci extension, horizontal swing high resistance).

Stochastic (34,5,3) is seeing strong support above 3.9% where we expect a bounce from.

Buy above 86.92. Stop loss is at 86.52. Take profit is at 87.61.

analytics59af51a9c1efa.png

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GBP/USD approaching major resistance, prepare to sell

The price is approaching major resistance at 1.3053 (Multiple Fibonacci extensions, horizontal overlap resistance) and we expect a strong reaction off this level to push the price down to at least 1.2913 support (Fibonacci retracement, horizontal swing low support).

Stochastic (34,5,3) is seeing major resistance at 93% where we expect a corresponding drop from.

Sell below 1.3053. Stop loss is at 1.3120. Take profit is at 1.2913.

analytics59af5176a4b79.png

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

Daily analysis of USDX for September 06, 2017

USDX remains alive in the negative bias below the 200 SMA at H1 chart. The support level of 92.34 is now being tested and a break below that area can open the doors to test August 29th lows, which should strengthen the bearish note in the index. At this stage, we cannot discard a rebound towards the resistance zone of 93.09.

USDXH1.png

H1 chart's resistance levels: 93.09 / 94.04

H1 chart's support levels: 92.34 / 91.67

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 92.34, take profit is at 91.67 and stop loss is at 93.00.

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

Daily analysis of GBP/USD for September 06, 2017

GBP/USD has rallied as we expected and it found dynamic support around the 200 SMA at H1 chart. Currently, it's challenging the resistance zone of 1.3013 and a break over there should expose the next key psychological level of 1.3100 in the short-term. To the downside, a new support has been formed around 1.2958. MACD indicator remains in the positive territory.

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H1 chart's resistance levels: 1.2958 / 1.3013

H1 chart's support levels: 1.2842 / 1.2761

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 1.2958, take profit is at 1.3013 and stop loss is at 1.2903.

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

BITCOIN Analysis for September 5, 2017

Bitcoin has been struggling today with volatility and corrective supply and demand inside the support area of $3,917.20 to $4,386.80. As the price was heading towards the all-time high of $5,000 per bitcoin it was interrupted by the Chinese regulators moving to outlaw initial coin offerings, which affected the growth of the cryptocurrency. Currently, it is expected that the price can bounce off again very soon as it has rejected off $4,000 today. If we see a daily close above the 4,386.80 resistance level in coming days, we can see an impulsive bullish move with the target towards $5,000. The price is currently residing above the dynamic level of 20 EMA, though inside a corrective volatile structure, and Tenkan Sen has already crossed over Kijun Sen and Chikou Span is already showing some evidence of breaking above the corrective structure candles, which indicates that a daily close above 4,386.80 will also break above the Kumo Cloud. As a result after the break, the bullish move will be very impulsive in moving towards the $5,000 resistance level. As the price remains above the lower support level of $3,917.20, the bullish bias is expected to continue in the coming days.

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