BITCOIN Analysis for December 7, 2017

Bitcoin has been breaking several records for the last few days and is currently residing above the record high price of $14,800. Bitcoin is expected to be quite corrective with the gains before the launch of Bitcoin futures on 10th and 18th December but before that price has acted quite impulsively with the gains which can result in a certain retracement in the coming days. The price has already moved over $1,700 so far by the last daily candle formation but it indicates further bearish pressure may emerge in the coming days as the price is progressing higher towards $15,000 price area. As of the current scenario, Bearish Continuing Divergence has formed showing a decrease in volumes as the price is moving higher. RSI, Stochastic, and MACD Histogram are indicating an upcoming bearish move which is expected to push the price lower towards $12,500 after a certain bullish pressure higher. The price level $15,000 is a psychological level and a rejection off the level is expected to validate the Bearish Divergence and have impulsive bearish pressure in the coming days.

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Analysis of GBP/USD for December 07, 2017

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Recently, GBP/USD has been trading downwards. The price tested the level of 1.3319. Anyway, according to the 1H timeframe, I found a strong rejection from the lower diagonal of the downward channel, which is a sign that selling looks risky. I also found a hidden bullish divergence on the moving average oscillator, which is another sign of strength. My advice is to watch for potential buying opportunities. The upward targets are set at the price of 1.3422 and 1.3540.

Resistance levels:

R1: 1.3436

R2: 1.3485

R3: 1.3525

Support levels:

S1: 1.3350

S2: 1.3312

S3: 1.3267

Trading recommendations for today: watch for potential buying opportunities.

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Fundamental Analysis of AUD/JPY for December 7, 2017

AUD/JPY has been impulsively bearish recently after bouncing off the 85.50 and dynamic level of 20 EMA as resistance. AUD/JPY is currently residing inside the support area of 84.40 to 85.40 which is expected to be broken lower in the coming days. JPY has been stronger than AUD recently as the Australian economy was recently struggling to provide upbeat economic reports to help its currency recover losses. Today, Australia's Trade Balance report was published which showed a significant decrease to 0.11B from the previous figure of 1.60B and AIG Construction Index was published with an increase to 57.2 from the previous figure of 53.2. The rise in imports in comparison to exports has been a great setback for Australia's economy that is expected to provide JPY with more momentum in the coming days. On the other hand, today Japan's Leading Indicators' report was published with a slight decrease to 106.1% from the previous value of 106.4% which was expected to be at 106.2%. Despite the worse report, JPY gain was quite stable and was able to keep the price low with a steady gain against AUD today. Moreover, tomorrow Japan's Final GDP report is going to be published which is expected to increase to 0.4% from the previous value of 0.3% and Bank Lending report is expected to be released with an unchanged value of 2.8%. To sum up, JPY is currently showing a lot of resilience to gain over AUD in the coming days that may be a warning sign for AUD as breaking below the nearest support is expected to lead to a further 150-200 pips drop in the future which might be costly enough for AUD.

Now let us look at the technical chart. The price was recently quite bearish after rejecting off the 85.40 and dynamic level of 20 EMA. The price is currently residing above the support level of 84.40 which is expected to be breached very soon and lead to further bearish pressure towards 82.00-83.00 support area in the coming days. As the price remains below the dynamic level of 20 EMA and 85.40 resistance area, the bearish bias is expected to continue further.

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USD/JPY analysis for December 07, 2017

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Recently, the USD/JPY pair has been trading upwards. The price tested the level of 112.80. According to the 30M time - frame, I found that price has broke an intraday upward channel, which is a sign that buying looks risky. I also found hidden bearish divergence on the stochastic oscillator, which is another sign of weakness. My advice is to watch for potential selling oppportunities. The downward targets are set at the price of 112.30 and at the price of 112.00.

Resistance levels:

R1: 112.61

R2: 112.95

R3: 113.25

Support levels:

S1: 112.00

S2: 111.66

S3: 111.33

Trading recommendations for today: watch for potential selling opportunities.

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Global macro overview for 07/12/2017

In Canda, the central bank kept the overnight interest rate unchanged in a widely expected move, but in the monetary statement on the subject of future changes in interest rates, it showed greater caution than the market expected. The biggest concern for the BoC is a lack of progress in the labor market, despite rising employment and participation rates. As a result, the chances for another hike in March next year fell from 75% up to 60 percent.

The central bank raised rates in July and September for the first time in seven years but has since worried about a number of uncertainties that could have an impact on the country's economy, including renegotiation of the North American Free Trade Agreement.

Let's now take a look at the USD/CAD technical picture at the H4 time frame. After the BoC decision, the USD/CAD is 1.0% higher, but with continuing pressure on crude oil prices, it is justified to assume further cutting of long positions in CAD. The market has bounced from the technical support at the level of 1.2623 and now it trying to test the technical resistance at the level of 1.2848. In a case of a further rally, the key technical resistance is seen at the level of 1.2942. Strong momentum supports the bullish bias.

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Global macro overview for 07/12/2017

In general terms, the currency market is calm in the last days and the main currency pairs respect the existing consolidation zones. One can see a lack of willingness to be more strongly involved in the direction, waiting for the situation to clear up on the subject of the US tax law, NFP, and Brexit negotiations.

In the last hours around USD there is more hope than worries, which helps in improving prices. This is not a fundamental change of attitude, as there is no consistent movement on the yields of government bonds (10-year olds are at 2.34% against 2.40% at the beginning of the week). However, the incoming information is supportive. Republicans from both chambers of Congress seem determined to quickly prepare a uniform text of the tax bill and even before the holidays, give it to the president to sign. Wednesday brought the start of talks between the delegates of both houses. Even if the direct benefits of the USD bill are debatable, at least for the time being this is the reason for the positive sentiment around the currency. In addition, everything points to the fact that Congress will be able to adopt another resolution for budget financing by the end of the week, ie to dismiss the so-called "government shutdown". Finally, the ADP report in point showed an increase in employment in November by 190k workers and well ahead of the government's NFP report tomorrow. So far, so good for US Dollar.

Let's now take a look at the US Dollar Index technical picture at the H4 time frame. The market has managed to break out above the green dashed trend line and above the technical resistance at the level of 93.51 ( now support). The momentum is positive and strong, so the next technical resistance to hit is seen at the level of 94.03 and 94.26.

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Trading Plan for EUR/USD and US Dollar Index for December 07, 2017

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Technical outlook:

The daily chart setup has been presented with the most probable wave count for a medium-term outlook in EUR/USD. A simple wave count describes that the pair might have already completed its 5 wave advance in 2017 from 1.0350 through 1.2092 levels respectively. The same has been labelled as wave (1) here. Furthermore, the drop through 1.1550 levels could be labelled as wave A and the rally thereafter as wave B, within the A-B-C corrective drop. Wave C could possibly drop all the way through 1.12 or 1.14 levels which are fibonacci 0.50 and 0.382 supports respectively. If this wave count holds to be true, then EURUSD should remain below 1.1960 and subsequently below 1.2092 levels as well. As an alternative, if the pair is seen to be bouncing off 1.1680/1.1700 levels, we shall take a review and decide further action.

Trading plan:

Remain short for now with risk above 1.1960 and minimum target 1.1680/1.1700.

US Dollar Index chart setups:

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Technical outlook:

The US Dollar Index daily chart setups has been presented here for a long-term view. The index seems to have dropped 5 waves lower from 103.80 levels through 91.00 levels since early 2017, labelled as wave (1) here. Furthermore the subsequent rally towards 95.10 levels can be defined as wave A, and the drop towards 92.50 can be defined as wave B respectively. Wave C is then expected to terminate around 97.50 levels as depicted here, or it could push towards 98.00 levels, labelled as wave (2) here. If this wave count holds true, then prices should remain above 92.50 levels going forward. As an alternate count, a bearish reversal from around 94.10/20 levels could change the short term outlook.

Trading plan:

Remain long with risk below 92.50 targeting 94.10/20 levels at least.

Fundamental outlook:

Please watch out for Mr Draghi's conference in about 3 hours from now

Good luck!

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Bitcoin analysis for December 07, 2017

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Bitcoin (BTC) has been trading upwards. As I expected, the price tested the level of $14,657. A recently-announced Russian presidential candidate, Boris Titov, is a bitcoin advocate. He promises to legalize bitcoin and other cryptocurrencies if elected. Titov is a friend with President Vladimir Putin and heads up his efforts to fight corruption. He has also repeatedly advocated for the legalization of bitcoin in Russia, suggesting the country should follow Japan's lead.

Trading recommendations:

According to the 1H time frame, I found a broken upward trendline, which is a sign that buying looks risky. I also found a bearish engulfing candle pattern, which is another sign of weakness. My advice is to watch for potential selling opportunities. Downward targets are set at the price of $13,145 and at the price of $12,203.

Support/Resistance

$14.666– Intraday resistance (price action)

$13.145 – First objective target

$12.203 – Second objective target

With InstaForex you can earn on cryptocurrency's movements right now. Just open a deal in your MetaTrader4.

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Technical analysis of NZD/USD for December 07, 2017

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Overview:

The level of 0.6944 represents the double top on the H4 char. The pair has already formed minor resistance at 0.6895 and the strong resistance is seen at the level of 0.6944 because it represents the weekly resistance 1. Hence, major resistance is seen at 0.6944, while immediate support is found at 0.6831. If the pair hits below the price of 0.6831, the NZD/USD pair may resume its movement to 0.6816 to test the daily support 2. Consequently, the NZD/USD pair is trying to test a major resistance level and it remains to be seen whether bulls have enough power to push for new highs in coming hours. The NZD/USD pair to move between the levels of 0.6940 and 0.6816. The RSI is still calling for a strong bearish market. The current price is also below the moving average 100. As a result, sell below the price of 0.6940 with targets at 0.6831 and 0.6816. However, stop loss should always be taken into account; accordingly, it will be useful to set the stop loss above the last bullish wave at the level of 0.6960.

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Technical analysis of USD/CHF for December 07, 2017

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Overview:

  • As expected the USD/CHF pair continues to move upwards from the level of 0.9806. Yesterday, the pair rose from the level of 0.9806 to the top around the area of 0.9921 (pivot). Today, the first resistance level is seen at 0.9972 followed by 1.0037, while daily support 1 is seen at 0.9886. According to the previous events, the USD/CHF pair is still moving between the levels of 0.9886 and 1.0037; for that, we expect a range of 151 pips (1.0037 - 0.9886) in coming hours. If the USD/CHF pair fails to break through the support level of 0.9886, the market will rise further to 0.9972. This would suggest a bullish market because the RSI indicator is still in a positive area and does not show any trend-reversal signs. The pair is expected to climb higher towards at least 1.0037 with a view to testing the double top. On the contrary, if a breakout takes place at the support level of 0.9886, then this scenario may become invalidated.
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Technical analysis of USD/JPY for December 07, 2017

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USD/JPY is expected to trade with a bullish outlook. The pair dipped below 112.00 yesterday (December 6) before posting a rebound. Currently, it has shot above the upper Bollinger band, calling for further acceleration to the upside. Meanwhile, the 20-period moving average has just crossed above the 50-period one, and the relative strength index has entered the 60s, confirming a reversal to intraday bullishness. The pair is therefore expected to proceed toward the overhead resistance at 113.10 before advancing further to 113.35. Key support is located at 112.25.

Alternatively, if the price moves in the opposite direction, a short position is recommended below 112.25 with a target of 112.00.

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 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: 112.25, Take Profit: 113.10

Resistance levels: 113.10, 113.35 and 113.85 Support Levels: 112.00, 111.80, 111.35

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Technical analysis of USD/CHF for December 07, 2017

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USD/CHF is expected to trade with bullish outlook. The pair is still in an uptrend, backed by an ascending trend line. A strong support base at 0.9855 has formed and should allow for a stabilization. Hence, even though a continuation of the consolidation cannot be ruled out, its extent should be limited.

As long as 0.9875 is not broken, look for a new bounce to 0.9940 and 0.9970 in extension.

Chart Explanation: The black line shows the pivot point. The present price above the pivot point indicates a bullish position, and the price below the pivot points indicates a short position. The red lines show the support levels and the green line indicates the resistance levels. These levels can be used to enter and exit trades.

Strategy: BUY, Stop Loss: 0.9875, Take Profit: 0.9940

Resistance levels: 0.9940, 0.9970, and 1.0015

Support levels: 0.9855, 0.9835, and 0.9800

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Technical analysis of GBP/JPY for December 07, 2017

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GBP/JPY is expected to trade with a bullish outlook as the key support holds at 150.10. The pair is standing firmly above its horizontal support at 150.10, which should limit any downward attempts. The relative strength index is mixed to bullish, calling for caution. Therefore, the pair is more likely to trade sideways within the range between 150.10 and 151.85.

A technical rebound is expected towards 151.85, as long as 150.10 is not broken.

Alternatively, if the price moves in the direction opposite to the forecast, a long position is recommended above 150.10 with the target at 149.70

Strategy: BUY, Stop Loss: 150.10, Take Profit: 151.85

Chart Explanation: the black line shows the pivot point. The price above the pivot point indicates long positions; and when it is below the pivot points, it indicates short positions. 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: 151.85, 152.40, and 153

Support levels: 149.70, 149.15, and 148.30

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Technical analysis of NZD/USD for December 07, 2017

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NZD/USD is under pressure and expected to trade in a lower range. The pair remains under pressure below its negative trend line, and is expected to post new weaknesses towards 0.6815. The key resistance at 0.6870 also maintains the selling pressure on the prices. Last but not least, the relative strength index is turning down, calling for further decline.

In conclusion, as long as 0.6870 holds on the upside, look for a new pullback to 0.6815 and 0.6790 in extension.

The black line shows the pivot point. Currently, the price is above the pivot point, which indicates long positions. If it remains below the pivot point, it will indicate short positions. The red lines are showing the support levels and the green line is indicating the resistance levels. These levels can be used to enter and exit trades.

Resistance levels: 0.6890, 0.6915, and 0.6950

Support levels: 0.6815, 0.6790, and 0.6770

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NZD/USD Intraday technical levels and trading recommendations for December 7, 2017

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Daily Outlook

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.

This resulted in a quick bullish advance towards next price zones around 0.7150-0.7230 (Key-Zone) and 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 enhanced the bearish side of the market. This brought the NZD/USD pair again towards 0.7230-0.7150 (Key-Zone) which failed to pause the ongoing bearish momentum.

An atypical Head and Shoulders pattern was expressed on the depicted chart which initiated bearish reversal.

As expected, the price level of 0.7050 failed to offer enough bullish support for the NZD/USD pair. That's why, further bearish decline was expected towards 0.6800 (Reversal pattern bearish target).

Evident signs of bullish recovery was expressed around the recent low (0.6780). That's why, a bullish pullback was expected towards 0.7050.

On the other hand, an inverted Head and Shoulders pattern is being established on the chart indicating bullish reversal.

That's why, the price zone of 0.6800-0.6830 can be considered for a short-term BUY entry. S/L should be placed below 0.6770. T/P level remains projected towards 0.7050.

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Intraday technical levels and trading recommendations for EUR/USD for December 7, 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 allowed a quick bullish advance towards 1.2100 where recent evidence of bearish rejection was expressed (Note the previous Monthly candlestick of September).

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Daily Outlook

In January 2017, the previous downtrend was reversed when the Inverted 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 was expressed towards the price level of 1.2100 where the depicted Head and Shoulders reversal pattern was expressed.

If the recent bearish breakout persists below 1.1700 (Neckline of the reversal pattern), a quick bearish decline should be expected towards the price zone of 1.1415-1.1520 (Initial targets for the depicted H&S pattern).

Bearish target for the depicted Head and Shoulders pattern extends towards 1.1350. However, to pursue towards the mentioned target level, significant bearish pressure is needed to be applied against the mentioned zone (1.1415-1.1520).

However, recent price action around the price zone of 1.1520-1.1415 indicated evident bullish recovery. This hindered further bearish decline as long as the recent low around 1.1550 remains unbroken.

Trade Recommendations

The price levels around 1.1900-1.1950 were suggested for a valid short-term SELL entry. It's already running in profits.

S/L should be placed above 1.1970. T/P levels to be located at 1.1850, 1.1700 and 1.1590.

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Bitcoin analysis for 07/12/2017

Indonesian Central Bank revealed that it is considering introducing new regulations that would prohibit Bitcoin transactions from 2018. Chief of Transformation Onny Vidjanarkko said yesterday that the bank wants to introduce a ban because of concerns about the potential use of Bitcoin in financing terrorism, money laundering and trade drugs.

The Central Bank, which has the power to decide on monetary policy, is currently conducting research to determine whether Bitcoin will be regulated in accordance with the applicable provisions on electronic money or in separate frameworks for cryptocurrencies. According to the Jakarta Post report, Vidjanarko stated: "Currently, there is no single regulation applicable to all those who carry out transactions using Bitcoin." The official also appealed to companies accepting Bitcoin payments to stop this practice. He justified this by saying that the Bank of Indonesia will not be liable for losses incurred as a result of such transactions.

If Indonesia actually banned Bitcoin as a payment method, it would join other countries that oppose cryptocurrencies, such as China. Russia's Minister of Finance also has a similar position to Indonesia, which in September declared that it expects a law on cryptocurrencies, in which a ban on payments with the use of Bitcoin will be introduced.

Let's now take a look at the Bitcoin technical picture. Weekly, daily and H4 charts have been changed due to update in a main Elliot Wave scenario. The current Elliott Wave development is very bullish as the market participants are in wave 3 progression towards the first target around the level of $25k. On the lower time frame charts, the local support is at the levels of $14,071 and $13,031.All of the weekly pivot resistances has been surpassed already and the price continues a parabolic move upwards.

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Trading plan for 07/12/2017

The US Dollar is well on Thursday with a fresh dose of hope for enacting a tax bill in the US. Australia's weak trade balance pushed AUD down, but NZD is losing the most. EUR / USD is sitting at 1.18, but USD / JPY approaches 112.60 with the help of the growing Tokyo stock exchange. The stock market bounced after Wednesday's declines. Crude oil on in reverse.

On Thursday 7th of December, the event calendar is light in important news release, but the global investors will keep an eye on German Industrial Production data, Halifax House Price Index data from the UK, Final GDP from the Eurozone, Ivey Purchasing Managers Index and Building Permits from Canada and Unemployment Claims data from the US. There is a scheduled speech from ECB President Mario Draghi later in the day as well.

EUR/USD analysis for 07/12/2017:

In the packet of data coming from the US economy, the fresh estimates of employment changes calculated by ADP were in the foreground. Value at the level of 190k positions was widely expected by the market participants, although the decomposition by sectors should be considered surprising - the more so as yesterday's fall in the non-productive ISM sub-index did not suggest the dominant impact of services (155k). Ahead of the tomorrow's NFP Payrolls figures, the data from the US were in line with expectations, so the market participants are not expecting any surprises.

Let's now take a look at the EUR/USD technical picture at the H4 time frame. The market broke below the technical support at the level of 1.1807 and then tested it and reversed. Currently, the price is trading close to the recent local lows around the level of 1.1791 in oversold market conditions. The next technical support is seen at the level of 1.1725.

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Market Snapshot: USD/JPY bounced from the trend line

The price of USD/JPY had bounced from the black trend line around the level of 112.00 and now is heading higher towards the recent technical resistance at the level of 112.85, which is just above the 50% Fibo level. The key resistance still remains at the level of 113.24 anyway.

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Market Snapshot: Gold brokes below technical support

The price of Gold has broken below the key technical support at the level of $1,260 and currently is trading just above the local support at the level of $1,253. The market conditions are oversold and there is a slight bullish divergence between the price and the momentum indicator, so there are some chances for a bounce.

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

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Wave summary:

Once again EUR/NZD failed to break below support seen at 1.7077 (the low was seen at 1.7100). The rally following the 1.7100 low does begin to look constructive, but only a clear break above resistance at 1.7342 will indicate a corrective low already could be in place.

We do think the correction from 1.7409 has been very short both in points and time and would expect a larger correction as wave (4), but it might be that the complexity just is rising.

R3: 1.7342

R2: 1.7319

R1: 1.7264

Pivot: 1.7195

S1: 1.7157

S3: 1.7100

Trading recommendation:

Our short position from 1.7450 has been stopped at 1.7250 for a 200 pip profit. We will stay neutral for now.

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

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Wave summary:

We continue to look for resistance near 133.22 for more downside pressure towards 132.31 and the important support at 131.14, which needs to be broken to confirm wave (D) peaked with the test of 134.50 and wave (E) lower to the ideal target at 123.43 is developing.

R3: 133.75

R2: 133.50

R1: 133.22

Pivot: 132.62

S1: 132.31

S2: 131.70

S3: 131.14

Trading recommendation:

We are short EUR from 133.75 with stop placed at break-even.

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Ichimoku indicator analysis of USDX for December 7, 2017

The US dollar index has broken out of the bearish Kumo cloud resistance. Trend is changing to bullish as long as price is above 93-92.50. The index has started making higher highs and higher lows on the 4 hour chart.

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Black lines - bullish channel

The Dollar index is trading above the Ichimoku cloud. Price is inside the bullish short-term channel. Support is found at 93.30 while the resistance lies at 93.80. Trend is bullish.

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On a weekly basis, the US dollar index has started the bounce exactly as expected. Price is now approaching the Tenkan-sen resistance at 93.80-93.90. A weekly close above this level will be a bullish sign. Next important resistance is at 94.40. Weekly support that must hold now is at 93. A break below 93 will be a very bearish sign for the index.The material has been provided by InstaForex Company - www.instaforex.com

Ichimoku indicator analysis of gold for December 7, 2017

Gold price has reached our target area of $1,255-50. Price is showing bullish divergence signs in the 4 hour chart. Trend remains bearish as price is still below the Ichimoku cloud and both the Tenkan- and Kijun-sen.

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Gold price is making lower lows and lower highs. Trend is bearish. I believe it is time for bears to take some profits or tighten their stops. I believe a strong bounce towards at least $1,270 is imminent. Support is at $1,255-50. Resistance lies at $1,262. Upon a break above the short-term resistance, we can reach $1,270.

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As said yesterday, gold price is expected to move towards the weekly Kumo (cloud) support. We are just 10$ away from that support. This is not the area where people should be selling gold. This is the time for bears to take their profits. A big upward reversal could be expected.The material has been provided by InstaForex Company - www.instaforex.com

Breaking forecast 12/07/2017

Breaking forecast 12/07/2017

EURUSD: Sell on rebound

A strong report on employment in the US for November moved the dollar upward.

On Wednesday, a report on employment in the US for November from a private company ADP - an employment increase of +190, 000 (official report will be released tomorrow 12/08/2017)

These are strong data, although below the upper bound of forecasts.

Euro broke through at least 1.1799 and is ready to move down.

Sell from 1.1799 with the target of 1.1610, the stop-loss is 1.1845.

Reserve option: purchase for a breakthrough of 1.1880 upward.

More information: https://www.instaforex.com/en/forex_analysis/195321

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Technical analysis of EUR/USD for Dec 07, 2017

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When the European market opens, some Economic Data will be released, such as French 10-y Bond Auction, Spanish 10-y Bond Auction, Italian Quarterly Unemployment Rate, French Trade Balance, and German Industrial Production m/m. The US will release the Economic Data, too, such as Consumer Credit m/m, Natural Gas Storage, Unemployment Claims, and Challenger Job Cuts y/y, so, amid the reports, EUR/USD will move in a low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Breakout BUY Level: 1.1851.

Strong Resistance:1.1844.

Original Resistance: 1.1833.

Inner Sell Area: 1.1822.

Target Inner Area: 1.1794.

Inner Buy Area: 1.1766.

Original Support: 1.1755.

Strong Support: 1.1744.

Breakout SELL Level: 1.1737.

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 Dec 07, 2017

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In Asia, Japan will release the Leading Indicators and 30-y Bond Auction data, and the US will release some Economic Data, such as Consumer Credit m/m, Natural Gas Storage, Unemployment Claims, and Challenger Job Cuts y/y. So, there is a probability the USD/JPY will move with a low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Resistance. 3: 113.02.

Resistance. 2: 113.80.

Resistance. 1: 112.58.

Support. 1: 112.30.

Support. 2: 112.08.

Support. 3: 111.86.

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

USD/CHF remain bearish

The price continues to test our major selling area resistance. We remain bearish looking to sell at 0.9903 resistance (Fibonacci retracement, horizontal overlap resistance, bearish divergence) for a corrective drop to at least 0.9784 support (Fibonacci retracement, price gap).

Stochastic (34,3,1) is seeing major resistance at 97% where we expect a corresponding drop from. We can also see bearish divergence vs price signaling that a reversal is impending.

Sell below 0.9903. Stop loss is at 0.9948. Take profit is at 0.9784.

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

EUR/USD remain bullish

The price is testing our buying support level. We remain bullish above 1.1805 support (Fibonacci retracement, Fibonacci extension, horizontal overlap support) for a push up to at least 1.1928 resistance (Fibonacci retracement, Fibonacci extension, horizontal swing high resistance).

Stochastic (34,3,1) is bouncing nicely off our 3.2% support and has good upside potential.

Buy above 1.1805. Stop loss is at 1.1749. Take profit is at 1.1928.

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

Daily analysis of major pairs for December 7, 2017

EUR/USD: A "sell" signal has been generated on the EUR/USD; owing to the perpetual bearish movement that has been witnessed since the beginning of this week. The EMA 11 has crossed the EMA 56 to the downside and the Williams' % Range period 20 is in the oversold region. Price is expected to journey further downwards towards the support lines at 1.1750 and 1.1700.

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USD/CHF: The USD/CHF has just generated a clear bullish signal, which has led to a Bullish Confirmation Pattern in the 4-hour chart. The supply level at 0.9900 has been tested and it would soon be breached to the upside, especially in the face of a continual weakness in the EUR/USD.

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GBP/USD: The GBP/USD has fluctuated southwards since the beginning of this week, and that has become a threat to the recent bullish effort in the market. A movement below the accumulation territory at 1.3300 would render the bullish effort invalid, while a movement to the upside would strengthen it.

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USD/JPY: Since the beginning of this week, after the supply level at 113.00 has been tested, the USD/JPY price has begun to consolidate. Since the bearish outlook on the market is still valid, it is expected that price would continue going downwards. Some fundamental figures are expected today and they may have an impact on the market.

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EUR/JPY: A clean bearish signal has been generated on the EUR/JPY. Price has dropped 150 pips this week, and it is now below the supply zone at 132.50. There are bearish targets in the demand zones of 132.00, 131.50 and 131.00, which ought to be tested before the end of the week.

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

Daily analysis of USDX for December 07, 2017

The index remains in a sideways range, hovering around the 200 SMA and waiting for a fresh catalyst that decides the next path. The resistance zone of 93.60 is expected to hold, as the price action continues to favor to the bears. However, if USDX breaks it, then we should see a rally towards the 93.98 level. To the downside, the next target is the 92.70 level.

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H1 chart's resistance levels: 93.60 / 93.98

H1 chart's support levels: 92.70 / 91.85

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 92.70, take profit is at 91.85 and stop loss is at 93.53.

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

Daily analysis of GBP/USD for December 07, 2017

The pair is consolidating its price action below the 200 SMA and looks forward to testing the support zone of 1.3303. The bulls are losing steam and that's why we would like to see more declines in the short-term. However, as long as the critical level of 1.3300 holds, GBP/USD is expected to re-test December 1st highs.

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H1 chart's resistance levels: 1.3541 / 1.3612

H1 chart's support levels: 1.3437 / 1.3303

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 1.3541, take profit is at 1.3612 and stop loss is at 1.3466.

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Bitcoin takes customers away from gold

In November, gold reported that it stayed in the narrowest trading range ($1,265-1300 per ounce) from 2005. In early December, it likely tested its lower bound against the background of the promotion of the bill on tax reform through the US Congress. For a long time, precious metals were supported by uncertainty surrounding this process and the potential risks of a sharp collapse of stock indices in the event that Republicans are unable to implement the promises of the U.S. president. While everything is going smoothly, and despite serious disagreements in the proposals of the Senate and the House of Representatives, hopes that the document will be signed by the owner of the White House during the holidays is growing by leaps and bounds.

The formation of the $35 range in the precious metals band is largely due to the pressure of two opposing groups of factors. On the one hand, the Fed's willingness to hike rates in the event of fiscal reform in the US leads to an increase in the yield of treasury bonds and the strengthening of the dollar, which gold is unable to compete with. On the other hand, in the context of uncertainty surrounding the overhaul of the tax system, the ceiling of the national debt, the relationship of the United States with North Korea, China and other countries that are ready to receive a mark of the currency manipulator from Washington, investors would naturally diversify their portfolios in favor of reliable assets.

Dynamics of gold and yield of US bonds

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Source: Bloomberg.

Quotes of the XAU/USD could grow more if fans of the physical asset did not switch to bitcoin and other cryptocurrencies in 2017. As a result, the sale of coins by the American court fell to its lowest level since 2007.

There is no consensus on medium and long-term prospects for gold from banks and investment companies. TD Securities believes that its average price in 2018 will be $1,313 per ounce, which is approximately 4% higher than the same indicator of the current year. Yes, the Fed will continue to hike the rate on federal funds, but this will unlikely strengthen the dollar, as other central banks will begin to normalize monetary policy. The tax reform will help accelerate inflation and reduce the real yield of US Treasury bonds, which is also a bullish factor for XAU/USD. Similar positions are held by HSBC Securities and CPM Group, expecting to see average prices at $1310 and $1322.

Current and average gold prices

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Source: Bloomberg.

On the contrary, Citigroup and ABN Amro forecast $1,270 and $1,250 per ounce in 2018 due to improved health conditions of the US and the global economy, more aggressive actions by the Fed than the market is currently waiting for, and sluggish demand for jewelry in Asia.

Therefore, both "bulls" and "bears" have quite serious arguments. On which of them will ultimately decide to use gold, and will determine its dynamics next year.

Technically, the output of futures quotes outside the consolidation range of $1262-1302 and the breakthrough of diagonal support in the form of the lower border of the upward trading channel increases the risks of implementing the target by 78.6% on the Gartley pattern.

Gold, daily chart

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Trading plan 12/06/2017

Trading plan 12/06/2017

General picture: Markets are waiting for reports on US employment.

The report on business activity in the US services sector for November (ISM index) came well below the forecast (reading is 57, forecast is 60).

Still, the US and EU economies are in strong shape. At the same time, inflation is low, which excludes (so far) the sharp movements of the main securities.

Markets are preparing to leave for the winter holidays - but before that they are ready to play out the decisions of the Fed and the ECB (next week).

And today and on Friday the main thing is the reports on employment in the USA (on Wednesday the report from ADP at 12:15 pm London Time).

Euro: An important level of 1.1807 has been break through - but did not go down.

Enter down from 1.1799

Or upward from 1.1880

GBPUSD:

Trend upward, buy from rebound.

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