Intraday technical levels and trading recommendations for EUR/USD for January 2, 2018

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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 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, In November, recent price action around the price zone of 1.1520-1.1415 indicated evident bullish recovery.

This hindered further bearish decline which allowed the current bullish pullback to occur towards the price level of 1.2000-1.2100 where price action should be watched for a possible SELL entry.

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NZD/USD Intraday technical levels and trading recommendations for January 2, 2018

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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 is expected towards 0.7050.

Moreover, further bullish advance should be expected towards 0.7150 if the current bullish momentum is maintained above the key-level of 0.7050.

Trade Recommendations:

An inverted Head and Shoulders pattern was established on the chart indicating high probability of bullish momentum.

That's why, the price zone of 0.6800-0.6830 was considered for a short-term BUY entry. Bullish persistence above 0.7050 is mandatory to pursue towards next bullish targets.

S/L should be moved to 0.7040 to secure some profits. T/P level remains projected towards 0.7150 and 0.7240.

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Bitcoin analysis for January 02, 2018

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Bitcoin (BTC) has been trading sideways at the price of $13.772. President Vladimir Putin has reportedly commissioned Russian officials to work on developing a national cryptocurrency dubbed the "cryptorouble". According to the Financial Times, Sergei Glazev, an economic adviser to the president, told a government meeting that the cryptocurrency would serve as a "useful tool" to evade western economic sanctions. The technical picture looks bearish.

Trading recommendations: According to the 1H time - frame, I found a broken pennant formation in the background, which is a sign that buying looks risky. I also found a series of lower lows and lower high, which is a sign that on the short–term prospect sellers are in control. My advice is to watch for potential selling opportunities. The downward targets are set at the price of $12.035 and at the price of $11.206.

Support/Resistance

$14.149 – Intraday resistance (price action)

$12.870– Intraday support

$12.035 – First objective target

$11.206 – Second objective target

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EUR/CHF analysis for January 02, 2018

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Recently, the EUR/CHF pair has been trading sideways at the price of 1.1712. According to the 4H time – frame, I found a fake breakout of horizontal resistance at the price of 1.1730 in the background, which is a sign that buying looks risky. I also found an overbought condition on the stochastic oscillator, which is another sign of weakness. My advice is to watch for potential selling opportunities. The downward target is set at the price of 1.1670.

Resistance levels:

R1: 1.1722

R2: 1.1731

R3: 1.1754

Support levels:

S1: 1.1698

S2: 1.1684

S3: 1.1660

Trading recommendations for today: watch for potential selling opportunities.

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GBP/USD analysis for January 02, 2018

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Recently, the GBP/USD pair has been trading upwards. The price tested the level of 1.3566 . According to the 30M time – frame, I found a breakout of the previous high at the price of 1.3543, which is a sign that selling looks risky. The trend is bullish and my advice is to watch for potential buying opportunities. I have placed Fibonacci expansion to find potential upward targets. I got FE 61.8% at the price of 1.3582 and FE 100% at price of 1.3610.

Resistance levels:

R1: 1.3516

R2: 1.3529

R3: 1.3550

Support levels:

S1: 1.3495

S2: 1.3490

S3: 1.3468

Trading recommendations for today: watch for potential buying opportunities.

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BITCOIN Analysis for January 2, 2018

Bitcoin has been residing inside the range of $11,130 to $15,500 for a while now whereas the price is currently struggling to gain bullish momentum. Currently alternative coins like Ethereum, Ripple and Litecoin is taking the limelight of the Bitcoin which left the price indecisive with indefinite trend in place. It is also rumored that Asian regulators are trying to pressure Bitcoins for which the price is being held in a range. The year 2017 was one of the best year for Bitcoin since its launch but due to alt coins the market cashflow has diversified from the centralized Bitcoin investment. As of the current scenario, the price is expected to push higher towards $15,500 price area in the coming days as the price remains above $11,130 support area. The dynamic levels are currently quite indecisive and a daily break above $15,500 will lead to impulsive bullish gains in the future or else the tight range will be holding the price for a longer period.

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Global macro overview for 02/01/2018

The European PMI Manufacturing data has surprised the market participants, because the data wasn't that good as expected. Spanish PMI was released at the level of 55.8 points, while the market participants expected 56.4 pints (56.1 prior). Italian PMI was weaker as well as it was released at the level of 57.4 points, while the market participants expected 58.6 points. Even French PMI disappointed, as it was posted at the level of 58.8, lower than last time level of 59.3 and below the expectations. Only German PMI was released in line with expectations. Nevertheless, the PMI Manufacturing for the whole Eurozone remained at the level of 60.6 points, as expected. Overall, the PMI in the Eurozone is still on very elevated levels, so the sentiment remains strong. The PMI in Germany is the highest result in more than 20 years of research history. Historical records have also been recorded in Austria and Ireland, as well as in the entire euro area.

The PMI indicator illustrates the economic situation in the manufacturing sector. It is developed on the basis of a survey conducted every month among managers responsible for logistics. It is calculated on the basis of five sub-indices: new orders, production, employment, delivery time and inventory of items purchased. Each value of the main indicator above 50.0 means a general improvement of the conditions in the sector (expansion) and each value of the main indicator below 50.0 means a general deterioration of the conditions in the sector (contraction).

Let's now take a look at the EUR/GBP technical picture at the H4 time frame after a disappointing data from the UK PMI Manufacturing (56.3 vs. 58.0 expected, 58.2 prior). The market rallied to the 78% Fibo at the level of 0.8919, but currently reversed and now is testing the technical support at the level of 0.8889.There is a clear bearish divergence between the price and the momentum indicator, so the downward move might occur anytime soon.

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Global macro overview for 02/01/2018

Trading between the holidays could be burdened with shifts at the end of the month, quarter and year, but some decisions will be difficult to completely reverse. Above all, the US Dollar remains weak. President Trump signed the tax law and together with the signature, the whole spell connected with fiscal expansion (at least for now) was affected. The market prefers to sell facts, being aware, that success in this field may be difficult with the strongly divided Congress. After all, in December Trump mentioned the planned infrastructure expenses, but without revealing details, there is no factor that could help the dollar. On the monetary policy side, the Fed itself remains in doubt as to whether inflation recovery will ever come again, which may even freeze the standardization process by June. Subsequent data may naturally revive the discussion, but an extraordinary pay jump (January 5) or CPI (January 12) is required. The problem is that the beginning of the year is usually brought by the deterioration of US macro data, mainly in economic activity, and expectations are excessive after a good fourth quarter.

Let's now take a look at the US Dollar Index technical picture at the H4 time frame. The market is still in a downtrend as it approaches the important technical support at the level of 91.57. The market conditions are oversold, but there is still no sign of a bullish divergence yet. The nearest technical resistance is seen at the level of 92.49.

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Fundamental Analysis of USD/JPY for January 2, 2018

USD/JPY has been impulsively bearish recently inside the corrective range of 111.70 to 114.50. The weakness of USD helped JPY to gain impulsive momentum which is expected to push the price towards the support area in the coming days. Today, Japan had no economic reports due to observance of the 4-day Bank Holiday. On Thursday, Japan's Final Manufacturing PMI report is going to be published which is expected to be unchanged at 54.2 and on Friday Monetary Base report is going to be published which is expected to decrease to 13.0% from the previous value of 13.2%. The market is still quite low in liquidity but the impulsive bearish pressure being observed currently is quite impressive. On the USD side, ahead of the NFP, Average Cash Earnings and Unemployment rate reports are due on Friday. Today, US Final Manufacturing PMI report is going to be published which is expected to be unchanged at 55.0. To sum up, JPY has been quite impulsive with its gains recently but any positive economic report from the US side this week is expected to encourage further bullish pressure in this pair and recover all losses of USD in one go.

Now let us look at the technical chart. The price is currently proceeding quite impulsively towards the support area of 110.80 to 111.70. Price has rejected off the dynamic level of 20 EMA today whereas the confluence helped to proceed impulsively. The price is expected to proceed towards the support area and reject off it with an impulsive bullish gain with a target towards 114.50. As the price remains above the support area, the bullish bias is expected to continue further.

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Fundamental Analysis of EUR/USD for January 2, 2018

EUR/USD has been impulsively bullish recently which has led the price to reside above 1.20 price area. Due to recent weakness of USD, EUR gained impulsive momentum despite downbeat economic reports published today. The market is still quite low on liquidity after the holidays, observed in most countries. Today, Spanish Manufacturing PMI report was published with decrease to 55.8 from the previous figure of 56.1 which was expected to be at 56.4, Italian Manufacturing PMI decreased to 57.4 from the previous figure of 58.3 which was expected to be at 58.6, French Final Manufacturing PMI decreased to 58.8 which was expected to be unchanged at 59.3, German Final Manufacturing PMI report was published unchanged as expected at 63.3, and Final Manufacturing PMI report has also published unchanged at 60.6 as expected. On the other hand, today US Final Manufacturing PMI report is going to be published which is expected to be unchanged at 55.0. As for the current scenario, USD has been weighed down by EUR whereas any positive economic report on the USD side will encourage impulsive counter move, leading to further bearish pressure in the future. The probability of EUR losing grounds in the coming days is quite high.

Now let us look at the technical chart. The price is currently holding above the 1.2050 and is expected to have an impulsive pullback towards the dynamic level soon. A daily close below 1.2050 today is expected to cause further bearish pressure in the pair with a target towards 1.1850 area in the coming days.

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Technical analysis of NZD/USD for January 02, 2018

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Overview:

  • The NZD/USD pair is trading upwards from the level of 0.7062. It should be noted that we use historic prices to determine future rates. So, the pair rose from the level of 0.7062 to a top around 0.7090. Today, the first resistance level is seen at 0.7160 followed by 0.7227, while daily support 1 is seen at 0.7062. According to the previous events, the NZD/USD pair is still moving between the levels of 0.7050 and 0.7160. Furthermore, if the trend is able to break out through the first resistance level at 0.7160, we should see the pair climbing towards the double top (0.7227) to test it. Therefore, buy above the level of 0.7100 with the first target at 0.7160 in order to test the daily resistance 1 and further to 0.7227. Also, it might be noted that the level of 0.7227 is a good place to take profit because it will form a new double top on the H4 chart. On the other hand, in case a reversal takes place and the NZD/USD pair breaks through the support level of 0.7062, a further decline to 0.6978 can occur which would indicate a bearish market. On the whole, we still look for a strong bullish market as lon as the trend is still set above the spot of 0.7060.
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Bitcoin analysis for 02/01/2018

The Central Bank of Great Britain has been studying cryptocurrencies since 2015. As it turns out, not without a reason, because within a year it can release its currency modeled on Bitcoin. The goal is to reduce the role of commercial banks, ie: high-risk banks. Customers could be served directly by the Bank of England, the central bank. The new currency would be linked to the pound sterling, so the goal is not to eliminate the current national currency. Interestingly, the Bank of England created a currency prototype called RSCoin that could be used by central banks already in that year. In one opinion, commercial banks may feel threatened and everything indicates that in the next few decades they may die like dinosaurs. Of course, there is also a shortage of the other side of the coin. The elimination of commercial banks and the takeover of transaction services by central banks may encourage greater surveillance of the public.

Let's now take a look at the Bitcoin technical picture at the H4 time frame. The corrective cycle continues to unfold as there is wave C to be completed yet. Nevertheless, there is still possible for wave $ to unfold as a triangle pattern. In this case, the level of $11,150 is the key level as any violation of this level would lead to the ABC corrective cycle to unfold much lower ( even to $7,800).

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Trading plan for 02/01/2018

The weak position of the US Dollar remains at the start of 2018 as the EUR/USD went just above 1.20, improving the 3.5-month peaks. Only Japanese Yen slightly loses to USD, although the exchange rate does not go beyond the Friday fluctuation range 112.50-112.75. AUD, NOK and NZD are higher as well, supported by rising raw material prices. Good data from China helps the local stock market. Gold and oil are high.

On Tuesday 2nd of January 2018, the main event of the day is the release of PMI Manufacturing data from across the Eurozone ( Germany, Spain, Italy, France), UK and the US as well.

EUR/USD analysis for 02/01/2018:

The market participants expect the PMI Manufacturing data to be released at least in line with the previs figures, or better. Any worse than expected data might start to weight on Euro. Just after the start of the European part of the session, there is an attempt to permanently eradicate the EUR / USD highs of September 20 (1.2033), which will undoubtedly increase the chance of attacking August's highs at 1.2070. The exemplary scenario is being currently supported by the momentum, although one should bear in mind the possibility of reversal due to the scale of the rally. In the case of breakthroughs of Friday lows (1.1937), an attack on the broken line connecting the peaks (1.1880) can be expected (Golden trend line). The nearest technical support is seen at the level of 1.2003 and 1.1961.

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Market Snapshot: Gold has broken above the technical resistance

The price of Gold has violated the important technical resistance zone between the levels of $1,298 - $1.305 and now is heading higher towards the level of $1,315. The market conditions are now extremely overbought at the H4 time frame, so the correction towards the technical support at the level of $1,298 is now expected.

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Market Snapshot: Crude Oil is still trading high.

The price of Crude Oil does not stop to rally higher and had gapped up after the weekend to the level of 60.90. The momentum remains strong, but the clear bearish divergence between the price and momentum indicator together with overbought market conditions at the H4 time frame might indicate a correction towards the technical support at the level of 60.00 soon.

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Technical analysis of USD/CHF for January 02, 2018

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Overview:

  • The USD/CHF pair has broken support at the level of 0.9773 which acts as a resistance now. According to the previous events, the USD/CHF pair is still moving between the levels of 0.9773 and 0.9724. The trend is still below the 100 EMA for that the bearish outlook remains the same as long as the 100 EMA is headed to the downside. Hence, the price spot of 0.9773 remains a significant resistance zone. Consequently, there is a possibility that the USD/CHF pair will move downside. The structure of a fall does not look corrective. In order to indicate a bearish opportunity below 0.9773, sell below 0.9773 with the first target at 0.9685. Besides, the weekly support 2 is seen at the level of 0.9685. However, traders should watch for any sign of a bullish rejection that occurs around 0.9773. The level of 0.9773 coincides with 23.6% of Fibonacci, which is expected to act as a major resistance today. Since the trend is below the 23.6% Fibonacci level, the market is still in a downtrend. Overall, we still prefer the bearish scenario.
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Ichimoku cloud indicator analysis of USDX for January 2, 2018

The Dollar index did not bounce as we expected off the 93 support area. Price broke below support and is making new lower lows. Trend is bearish in all time frames. Next important support is at the summer low of 91.

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Short-term trend is clearly bearish. Price is below both the tenkan- and kijun-sen (red and yellow line indicators). Support is at 91. Resistance is at 92.35 and 92.75. Cloud resistance is at 93.50. As long as price is below that level, trend will remain bearish targeting below 91. A break above 93.50 will open the way for a move to 97.

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Red line -long-term resistance trend line

On a daily basis trend is again bearish. Price is below the Daily Kumo (cloud) and is making lower lows and lower highs. Daily resistance is at 93.50. So far bears are under control of the trend.

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Ichimoku cloud indicator analysis of gold for January 2, 2018

Gold price is in a bullish trend. The upside run above $1,300 was something I did not expect when turning bullish at $1,240. I believed that the bounce would be short lived and price turn lower towards $1,200. I was mistaken. The trend has remained bullish with no reversal sign. Bulls however need to be very cautious.

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Gold is trading above both the tenkan- and kijun-sen (red and yellow line indicators). Trend is clearly bullish but also somewhat bullish parabolic. The oscillators are overbought and this is warning sign. Support is at $1,302 and next support at $1,291.

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On a weekly basis Gold price bounced as expected at the weekly Kumo. Trend remains bullish and it seems we are heading towards the long-term resistance and previous highs towards $1,350.At $1,277-70 is weekly support. Breaking below it will open the way for a push towards the weekly Kumo at $1,240. Noting however that so far we have no reversal signal. I believe we will see one this week.

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Technical analysis of GBP/JPY for January 02, 2018

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GBP/JPY is expected to trade with a bullish outlook. The intraday outlook remains bullish, as the pair bounced off its key horizontal support at 151.90, and is now heading upward towards 152.60. The intraday relative strength index is displaying strong bullish momentum. In addition, the 50-period moving average is heading upward, and calls for a new rise.

In these perspectives, as long as 151.90 is not broken, likely advance to 152.60 and 153.00 in extension.

Alternatively, if the price moves in the direction opposite to the forecast, a short position is recommended below 151.90 with the target at 151.20

Strategy: BUY, Stop Loss: 151.90, Take Profit: 152.60

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: 152.35, 152.60, and 153.00

Support levels: 151.45, 151.20, and 151.00

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Technical analysis of NZD/USD for January 02, 2018

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NZD/USD is expected to trade with a bullish outlook. The pair is consolidating above its key support at 0.7080, which should limit the downside potential. The relative strength index lacks downward momentum. Even though a continuation of the consolidation cannot be ruled out, its extent should be limited.

Hence, above 0.7080, look for a further rise with targets at 0.7150 and 0.7170 in extension.

The black line shows the pivot point. Currently, the price is above the pivot point, which is a signal for 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: 0.7150, 0.7170, and 0.7200

Support levels: 0.7050, 0.7025, and 0.700

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Technical analysis of EUR/USD for Jan 02, 2018

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When the European market opens, a series of economic data will be released such as Final Manufacturing PMI, German Final Manufacturing PMI, French Final Manufacturing PMI, Italian Manufacturing PMI, and Spanish Manufacturing PMI. The US will present Final Manufacturing PMI later today. So amid the reports, the EUR/USD pair will move low to medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Breakout BUY Level: 1.2070.

Strong Resistance:1.2063.

Original Resistance: 1.2051.

Inner Sell Area: 1.2039.

Target Inner Area: 1.2011.

Inner Buy Area: 1.1983.

Original Support: 1.1971.

Strong Support: 1.1959.

Breakout SELL Level: 1.1952.

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

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Elliott wave analysis of EUR/NZD for January 2, 2018

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Wave summary:

The break above minor resistance at 1.6925 is not yet convincing, but a more firm break is expected soon for more upside pressure towards 1.7064 on the way higher to 1.7777.

Support is now seen at 1.6837, which is expected to protect the downside for the firm break above 1.6925.

R3: 1.7064

R2: 1.6993

R1: 1.6925

Pivot: 1.6876

S1: 1.6837

S2: 1.6800

S3: 1.6793

Trading recommendation:

We are EUR 1.6873 with stop placed at 1.6795.

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Technical analysis of USD/JPY for Jan 02, 2018

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In Asia, Japan today will not release any economic data. The US will present some economic data such as Final Manufacturing PMI. So there is a probability the USD/JPY pair will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Resistance 3: 113.28.

Resistance 2: 113.06.

Resistance 1: 112.83.

Support 1: 112.56.

Support 2: 112.34.

Support 3: 112.12.

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

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Elliott wave analysis of EUR/JPY for January 2, 2018

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Wave summary:

EUR/JPY continues to work its way higher towards the ideal target for wave (D) seen at 137.37. Minor support at 134.84 should now be able to protect the downside for the expected rally higher.

A break below minor support at 134.84 will indicate exhaustion of wave (D), while a break below support at 133.89 will confirm wave (D) has completed and wave (E) towards 123.43 is developing.

R3: 136.55

R2: 136.05

R1: 135.75

Pivot: 134.84

S1: 134.58

S2: 133.89

S3: 133.58

Trading recommendation:

We are long EUR from 134.10. We will move our stop higher from 134.10 to 134.75

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AUD/JPY testing major resistance, time to go short

Price is testing major resistance at 88.09 (Fibonacci retracement, horizontal swing high resistance) and we expect a strong drop from this level towards 86.69 support (Fibonacci retracement, horizontal support).

Stochastic (55,3,1) is seeing major resistance at 99% and is starting to drop nicely signalling a further drop could be expected.

Sell below 88.09. Stop loss at 88.71. Take profit at 86.69.

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AUD/USD testing strong resistance, sell one last time

Price is now testing strong resistance at 0.7824 (Fibonacci retracement, horizontal overlap resistance, Fibonacci extension) and a strong drop could occur at this level to push price down to at least 0.7696 support (Fibonacci retracement, horizontal pullback support).

Stochastic (34,3,1) is seeing major resistance at 98% where a corresponding drop could occur from and also sees bearish divergence vs price signalling that a reversal is impending.

Sell below 0.7824. Stop loss at 0.7902. Take profit at 0.7696.

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Daily analysis of major pairs for January 2, 2018

EUR/USD: The EUR/USD pair rose upwards last week, almost barely closing above the support line at 1.2000. Price may be able to move further upwards this week, reaching resistance lines at 1.2050 and 1.2100. However, the outlook for EUR pairs is bearish for this week, and for this month. Thus, a bearish movement can begin anytime.

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USD/CHF: The USD/CHF pair dipped by 120 pips last week, closing below the resistance level at 0.9750. Other support levels at 0.9700 and 0.9650 could be tested this week, and they could possibly be exceeded this month because CHF itself would gain some stamina, which may allow other major pairs to go downwards versus it.

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GBP/USD: This is a short-term bullish market. This pair, which was mostly moving sideways in December, managed to start a bullish movement last week. A close above the accumulation territory at 1.3500 means the sideways phase is temporarily over. The bullish bias would hold out only as long as price is able to stay above the accumulation territory at 1.3450. There would be strong movements on this pair, as well as other GBP pairs, in January, and most of the movements would be bearish.

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USD/JPY: The USD/JPY pair went sideways last Monday and Tuesday, and then began to drop on Wednesday, until the market closed on Friday. There is a Bearish Confirmation Pattern on the 4-hour chart (though the outlook on the market is neutral), which would become strong as price moves further southwards this week.

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EUR/JPY: This cross managed to go upwards last week, testing the supply zone at 135.50 and closing below it on December 29, 2017. One factor responsible for this is the stamina in EUR itself and further gain of about 100 pips is probable this week. However, there is also risk of a large pullback because the outlook on most JPY pairs is bearish for the week.

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Daily analysis of USDX for January 02, 2018

USDX remains under pressure below the 200 SMA on H1 chart. The index still finds support around 92.18. The new year kicks with a greenback's weakness across the board. That tone should prevail for at least several weeks, as the index starts to do a decisive corrective move. If it manages to break above 92.57, then it can go towards the 93.16 level.

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H1 chart's resistance levels: 92.57 / 93.16

H1 chart's support levels: 92.18 / 91.68

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 92.18, take profit is at 91.68 and stop loss is at 92.68.

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

Daily analysis of GBP/USD for January 02, 2018

GBP/USD has been forming a higher high pattern above the middle band of the Bollinger bands on H1 chart and it's facing resistance in the 1.3516 level. If the pair manages to break above it, then the next hurdle to overcome should be the 1.3589 zone. However, corrective moves are expected to happen, with a first step to touch at 1.3451.

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H1 chart's resistance levels: 1.3516 / 1.3589

H1 chart's support levels: 1.3451 / 1.3388

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 1.3516, take profit is at 1.3589 and stop loss is at 1.3441.

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