Technical analysis of USD/JPY for March 07, 2018

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SD/JPY is expected to trade with a bearish outlook. The downward bias prevails. The pair has plunged to the levels below the lower Bollinger band, calling for acceleration to the downside. Strong downward momentum is also proved by the relative strength index, which has breached the oversold level of 30. Intraday bearishness persists and the pair is expected to return to 105.30 on the downside (around a price base seen in March 2-5) before sinking further toward 105.00. Only a break above the key resistance at 106.10 would bring about a bullish reversal.

Alternatively, if the price moves in the opposite direction, a long position is recommended to be above 106.10 with a target of 106.45.

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 at 106.10, take profit at 105.30.

Resistance levels: 106.45, 106.80, and 107.15

Support levels: 105.30, 105.00, and 104.60.

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Technical analysis of USD/CHF for March 07, 2018

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USD/CHF is under pressure. The pair retreated below the key resistance at 0.9445 and broke below its 20-period and 50-period moving averages. Additionally, the 50-period moving average is reversing down. The relative strength index lacks upward momentum.

The U.S. dollar resumed its downtrend as investors expected lower geopolitical tensions after South Korea announced plans to hold a summit with North Korea.

To conclude, as long as 0.9445 is not surpassed, look for a return with targets at 0.9360 and 0.9335 (the low of March 2) 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 point 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: SELL, stop loss at 0.9445, take profit at 0.9360.

Resistance levels: 0.9475, 0.9500, and 0.9540

Support levels: 0.9360, 0.9335, and 0.9300.

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Technical analysis of GBP/JPY for March 07, 2018

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Our downside targets which we predicted in the previous analysis have been it as we predicted. GBP/JPY is under pressure. The pair posted a pullback and broke below its 20-period and 50-period moving averages. The relative strength index bearish, calling for a further drop. The selling pressure should be maintained above the key resistance at 147.65.

Hence, as long as this key level is not surpassed, look for a further drop with targets at 145.95 and 145.40 in extension.

Alternatively, if the price moves in the direction opposite to the forecast, a long position is recommended to be above 146.50 with the target at 147.45.

Strategy: SELL, Stop loss at 147.65, Take profit at 145.95

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 point, 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: 148.00, 148.55, and 149

Support levels: 145.95, 145.40, and 144.60

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Technical analysis of NZD/USD for March 07, 2018

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NZD/USD is expected to trade higher. The bullish bias remains. Despite the recent pullback from 0.7310 (the high of March 6), the pair still stays above the rising 50-period moving average, which plays a support role. Even though a continuation of consolidation cannot be ruled out, its extent should be limited. To conclude, as long as 0.7265 is not broken, look for a further advance with targets at 0.7310 and 0.7325 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 show the support levels, while the green line indicates the resistance levels. These levels can be used to enter and exit trades.

Resistance levels: 0.7310, 0.7325, and 0.7365.

Support levels: 0.7245, 0.7215, and 0.7175.

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Global macro overview for 07/03/2018

Today, investors' attention will focus on US data. A job market report from ADP company on a change in employment in the private sector will be published in the early afternoon, where it is expected that 199k jobs will be created in February. In addition, data on unit labor costs and labor productivity will be reported in the fourth quarter of 2017. The market participants will also find out how the US trade balance looked like in January. In the evening, the Fed Beige Book, which is a report on the state of the American economy will be revealed. The final reading of orders for durable goods in the US, released yesterday, indicates a slowdown in investment at the beginning of the year. However, this should not be a barrier to the next interest rate hike in March, which would also be indicated by yesterday's Lael Brainard speech from the Fed, in which she opted for further normalization of monetary policy in the US.

However, during the Wednesday session, the main event will be the interest rate decision by the Bank of Canada. The market consensus does not assume changes in monetary policy parameters, so the main interest rate in Canada should be maintained at 1.25%. Please notice, that in January this year BoC decided on a third rate hike in the current cycle of monetary policy normalization and the incoming macroeconomic data from Canada, in particular, those from the labor market, will remain important for further decisions of the bank. Any hike by BoC would be a big surprise for the global investors.

Let's now take a look at the USD/CAD technical picture at the H4 time frame. The market has managed to retrace 61% of the previous swing down and now is hovering around the technical support at the level of 1.2919 as it awaits the BoC interest rate decision. Please notice, that momentum still looks strong, but the market conditions have clearly entered an overbought level, so a corrective pull-back will not be anything unexpected here.

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Global macro overview for 07/03/2018

With the resignation of Trump's chief economic advisor, Gary Cohn, who opposed customs policy, financial markets are re-introducing risk aversion. Signals from the Korean Peninsula, where the summit between the South and the North Korea ended in hope for the continuation of the nuclear program by Pyongsang only for a moment brought relief to the financial markets. After 24h the signs of weakening geopolitical tensions were overshadowed by reports from the White House. The departure of Gary Cohn, who has so far strongly opposed import duties, best illustrates how the attempts to persuade Trump to change his mind are over. The chances of an uncontrolled escalation of trade wars have now clearly increased, which the market will express by escaping into risky assets towards safe havens.

USD/JPY and other yen crosses should go lower, especially if the spiral of uncertainty hits the stock indices more strongly. EUR/USD also has an easier way up, because in this arrangement Trump is a disadvantage of the dollar. The situation may change if the customs policy boosts inflation in the US and prompts the Fed to more aggressive tightening, but it is not the time for that. But the USD is already winning against the risk currencies, which need a sustained global recovery for the rally, and trade wars do not bode for it. At the turn of the year, global investors saw a lot of buying of commodity currencies and emerging markets for a dollar and now these positions will be susceptible to the reverse. AUD, CAD and MXN are the first victims.

Let's now take a look at the USD/JPY technical picture at the H4 time frame. The market is weak as the price cannot break out above the nearest technical resistance at the level of 106.41 and reverses quickly towards the support at the level of 105.53. The weak momentum that stays below its fifty level supports the bearish outlook. The next technical support is seen at the level of 105.25 and in a case of the extension - 104.24.

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Euro is the answer to all fears

Eurozone

The confidence index of investors Sentix in the eurozone unexpectedly fell sharply to 24p in March against 31.9p a month earlier. In Germany, negative expectations have been formed for the first time since February 2016.

This obvious bearish signal could lead to sales of the euro. If not, there will be a similar decline in the USA, 5p in Japan and Switzerland.

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The sharp deterioration in the business climate is associated with Trump's intentions to launch a policy of strict protectionism. "Who will pay for Trump's trade war?" is the question that is on the agenda.

Internal factors remain positive for the euro. On Thursday, the ECB meeting will take place, which will take into account both the results of the elections to the Italian parliament and the end of the epic with the formation of the ruling coalition in Germany.

The markets are not waiting for changes in the monetary policy, whereas in many respects old to hawkish measures will contribute to the growth of the euro and the further decline of the markets, which the regulator would like to avoid. Nevertheless, Mario Draghi was able to add volatility when he held a press conference.

According to the results of the week, the euro looks stronger and it is likely that the maximum of 1.2555 will be updated from February 16.

United Kingdom

The lack of significant macroeconomic data and some lull around the Brexit negotiation process allowed players to take a breath. The pound continues to trade in a wedge and a breakout could generate a strong impulse in either direction. The bottom of the pound is limited by strong support level of 1.3710 and resistance level of 1.3950.

Exit from the wedge can be held already this week. Friday will be sustained with news from the Bank of England, and will report on industrial production and trade balance for the month of January. A little later NIESR will present a forecast for GDP growth. The preliminary forecast is negative, so the chances of a fall look a little higher.

Also on Friday, the report on the US labor market, which can send dollar quotations in any direction. A slight advantage of the bears is likely to remain until Friday.

Oil

The annual energy conference was held in Houston, USA, where PEC representatives are supposed to enter into a dialogue with the leaders of American oil companies involved in the development of shale deposits. The very fact of such meetings has a positive character for the oil market and shows that dialogue is not only possible but also useful for the parties. One possible reason is that the withdrawal capabilities of the United States are not as high as they are sometimes served in the media. The U.S. will not be able to compensate for the decline in OPEC + production, while shale projects are still less profitable. On March 28, the final data for 4 square meters will be published, as well as, the level of investment in the extractive industry. Despite the growth in the 2 previous quarters, there is no certainty of maintaining the trend.

As for the labor market, the extractive industry does not create new jobs, without which, a significant increase in production is impossible.

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Everything indicates that the OPEC + agreement continues to be the dominant factor determining the current quotes. The success of the agreement changes priorities in the oil market and Chad, Congo and Malaysia have applied for membership in the cartel.

Balance in the oil market is expected by the end of 2018, oil continues to hold above the comfortable level for participants with 64 dollars per barrel. There is likely to be an attempt to resume growth, for which it is necessary to go above $ 66 / bbl. for Brent.

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Technical analysis of USD/CHF for March 07, 2018

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Overview:

  • The daily pivot point is set at the point of 0.9438. Today, the USD/CHF pair will probably continue rising from the level of 0.9342 in the long term. It should be noted that the support is established at the level of 0.9438 which represents the daily pivot point on the H4 chart. The bias remains bullish in nearest term testing 0.9594 or higher. Accordingly, the USD/CHF pair is showing signs of strength following a breakout of the highest level of 0.9438. So, buy above the level of 0.9438 with the first target at 0.9516 in order to test the daily resistance 1. The level of 0.9594 is a good place to take profits. Moreover, the RSI is still signaling that the trend is upward as it remains strong above the moving average (100). This suggests that the pair will probably go up in coming hours. If the trend is able to break the level of 0.9516, then the market will call for a strong bullish market towards the objective of 0.9704. The price is likely to form a double botttop m in the same time frame On the other hand, in case a reversal takes place and the USD/CHF pair breaks through the support level of 0.9342, a further decline to 0.9187 can occur. It would indicate a bearish market.
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Technical analysis of NZD/USD for March 07, 2018

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Overview:

  • The NZD/USD pair continued moving upwards from the level of 0.7200. This week, the pair rose from the level of 0.7200 (weekly support) to the top around 0.7285. Today, the first support level is seen at 0.7200 followed by 0.7145, while daily resistance is seen at 0.7336. According to the previous events, the NZD/USD pair is still moving between the levels of 0.7200 and 0.7336; for that we expect a range of 136 pips in coming hours. This would suggest a bullish market because the RSI indicator is still in a positive area and does not show any trend-reversal signs. Furthermore, if the trend is able to break out through the first resistance level of 0.7336, we should see the pair climbing towards the new double top (0.7437) to test it. On the contrary, if a breakout takes place at the support level of 0.7200, then this scenario may become invalidated. Remember to place a stop loss; it should be set below the second support of 0.7140.
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EUR/USD analysis for March 07, 2018

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Recently, the EUR/USD pair has been trading upwards. The price tested the level of 1.2444. According to the 30M time – frame, I found series of higher highs and higher lows, which is a sign that buyers are in control. I also found a bullish cross on the stochastic oscillator, which is another sign of strength. Anyway, watch for a breakout of resistance at 1.2441 to confirm further upward continuation. The upward target is set at the price of 1.2477.

Resistance levels:

R1: 1.2441

R2: 1.2477

R3: 1.2533

Support levels:

S1: 1.2350

S2: 1.2292

S3: 1.2257

Trading recommendations for today: watch for potential buying opportunities.

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Analysis of gold for March 07, 2018

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Recently, gold has been trading upwards. The price tested the level of $1,340.42. According to the 30M time-frame, I found a successful rejection of the pivot level ($1,330.84), which is a sign that selling looks risky. I also found a hidden bullish divergence on the stochastic oscillator, which is another sign of strength. My advice is to watch for potential buying opportunities. The upward targets are set at $1,342.00 and at $1,349.75.

Resistance levels:

R1: $1,342.00

R2: $1.349.75

R3: $1,361.32

Support levels:

S1: $1,323.20

S2: $1,311.78

S3: $1,304.15

Trading recommendations for today: watch for potential buying opportunities.

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Bitcoin analysis for March 07, 2018

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Bitcoin (BTC) has been trading downwards. As I expected, the price tested the level of $10.369. The controversial owner of the web portal Bitcoin.org and Bitcointalk, an anon named 'Cobra Bitcoin', has been a popular subject within the cryptocurrency community lately. It's strange that a person who nobody really knows has so much control within the BTC community, and lately his messages have been very cryptic, even making some believe his accounts have been compromised. The techical picture on Bitcoin looks bearish.

Trading recommendations:

According to the 30M time - frame, I found that price did a successful breakout of the strong upward channel in the background, which caused the price to go lower. In my opinion sellers are in control. I also found a broken bearish pennant pattern which is another sign of weakness. My advice is to watch for potential selling opportunities. The downward targets are set at the price of $10.185 and at the price of $9.931.

Support/Resistance

$10.855 – Intraday resistance

$10.360– Intraday support

$10.185 – Objective target 1

$9.331 – Objective target 2

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

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NZD/USD Intraday technical levels and trading recommendations for for March 7, 2018

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Daily Outlook

In July 2017, an atypical Head and Shoulders pattern was expressed on the depicted chart which indicated upcoming 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 depicted low (0.6780). An inverted Head and Shoulders pattern was expressed around these price levels.

The price zone of 0.7140-0.7250 (prominent Supply-Zone) failed to pause the ongoing bullish momentum. Instead, a bullish breakout above 0.7250 was expressed on January 11.

That's why, a quick bullish movement was expected towards the depicted supply zone (0.7320-0.7390) where evident bearish rejection and a valid SELL entry were expected.

On February 2, a bearish engulfing daily candlestick was expressed off the price level of 0.7390. Moreover, a double-top reversal pattern was expressed around the price zone (0.7320-0.7390).

As expected, the price zone (0.7320-0.7390) stood as a significant supply zone for the NZD/USD pair. This allowed the current bearish decline to occur towards the price zone of 0.7230 - 0.7165 (neckline of the reversal pattern).

Bearish breakdown of 0.7300 (neckline) is needed to confirm the depicted reversal pattern. Bearish projection target would be located around 0.7050 and 0.7000.

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Intraday technical levels and trading recommendations for EUR/USD for March 7, 2018

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Monthly Outlook

In January 2015, the EUR/USD pair moved below the major demand levels near 1.2100-1.2200 (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 and recently above 1.2075.

Another bullish breakout above 1.2075 was expressed on the chart. This hinders the bearish momentum allowing bullish advancement to occur towards 1.2750 provided that the bullish breakout above the price level of 1.2075 remains defended by the bulls.

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Daily Outlook

In September, bearish target for the depicted Head and Shoulders pattern was projected towards 1.1350. However, the market failed to apply significant bearish pressure against the mentioned zone (1.1415-1.1520).

Instead, In November, evident bullish recovery was manifested around the price zone of 1.1520-1.1415.

This hindered further bearish decline which allowed the current bullish momentum to occur towards the price level of 1.2100 which failed to pause the ongoing bullish momentum as well.

Daily persistence above 1.2470-1.2500 is needed to confirm a recent bullish flag continuation pattern with projected targets around the price level of 1.2750.

On the other hand, the depicted double-top reversal pattern needs bearish breakdown of the level of 1.2200 (the depicted uptrend line) to be achieved on a daily basis. Projection target would be located around 1.2070-1.1990.

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The fundamental weakness of the dollar

The US dollar weakly reacts to macroeconomic data, which in other conditions could support it. Markit's PMI in the services sector for February was better than expected, remaining at 55.9p, also better than the composite index. According to the version, the service sector also maintains high rates of expansion, the index is 59.5p against 59.9p a month earlier, better than expected.

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The index of economic optimism IBD / TIPP, despite a slight decrease, continues to be in the area of multi-year highs, and, nevertheless, the dollar opened the week with a decline.

The fact is that the intention of Donald Trump to raise customs duties on certain groups of goods caused a negative impact. So serious that a number of high-ranking US officials are making serious efforts to change the course of events. The Republican leaders in charge of trade policy sent out a warning letter stating that the introduction of duties was an unfortunate idea, while Speaker of the House of Representatives Ryan spoke out against it.

Why such attention to the words of Trump? The point here is not only in duties. Six months ago, the Congressional Budget Committee conducted an assessment of the economic consequences of the launch of the tax reform, in particular how it would affect the federal budget. The conclusion was that by 2027 the budget deficit will grow to more than 1.35 trillion dollars, with a tendency to further increase, while Trump promised to get rid of the deficit within the same period. Moreover, as early as 2018, the first positive progress was made by reducing the deficit to 400 billion dollars.

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From what resources should such a plan be implemented? The United States does not have internal resources to reduce the budget deficit. The majority of negative trends are corporate incomes at the level of 3 years ago, that is, corporations will not be able to ensure a sharp increase in tax payments. Consumer confidence is at a high level, but there is almost no growth in spending either, at least the growth rates are clearly insufficient even to stop the growth of the deficit.

Thus, resources can only be external, that is, Trump implements the long-term harvesting of his economic team. The increase in duties is one of the steps that should increase budget revenues. To refuse from it, Trump can not, if he does not want to question the success of the reform as a whole.

If you do not raise duties, then where do you get money to close budget holes? Obviously, the only way is to expand the level of borrowing. The US financial position is deteriorating, the total basic balance of payments (BBoP), which is summarized from the current account, direct and portfolio investments, is projected to go down.

And as historical experience shows, the deterioration of BBoP always leads to a decrease in the dollar index. How else?

Thus, the dollar has rather weak prospects for resuming growth. Short-term support for the dollar can have a positive report on the labor market on Friday, as this result will be taken into account by the Fed at the meeting on March 21. Since the current unemployment rate is close to the natural limit, the market will pay attention to the number of new jobs in the second turn. Much more important is the growth rate of the average wage, at the moment it is one of the key criteria determining the probability of the fourth rate increase this year.

On Wednesday, you need to pay special attention to the introduction of the head of the Federal Reserve Bank of New York, William Dudley, perhaps he will comment on the likelihood of developing currency wars, as well as on the ADP report on employment in the private sector. A little later, a report on the growth rates of labor productivity in the 4th quarter and the Beige Book will be published, as well as the January dynamics of consumer lending volumes. In December, there was a decline in lending, if the data for January are also negative, the dollar may react with a fall due to the growing threat of low inflation.

The dollar will remain under pressure, attempts to grow should be used for sales across the entire spectrum of the market.

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Bitcoin analysis for 07/03/2018

Kakao, a service provider for the large South Korean mobile messaging application KakaoTalk, will set up a branch of Blockchain, a pre-named Kakao Blockchain, and is also considering starting the creation of ICO. Jae-sun Han, partner and Development Director in the incubator of Future Play technology startups, will be the representative of the new organization. The specific business plan for the Kakao Blockchain branch will be introduced on March 20th, according to the information provided by Huffington Post Korea. Since it is currently illegal to run an ICO based in South Korea, Huffington Post Korea writes that the ICO for Kakao will be located abroad, most likely in Singapore or Hong Kong. The hypothetical "Kakao Coin" can then be used as a currency in various applications provided by Kaako, such as KakaoTalk, Kakao Driver and Kakao Games.

Let's now take a look at the Bitcoin technical picture at the H4 time frame. The market did not break out above the technical resistance at the level of $11,714 - $11, 937 but dropped below the weekly pivot and made a local low at the level of $10,450, just above the weekly pivot support at the level of $10,275. From the Elliott Wave Theory point of view, this recent wave progression can still be labeled as impulsive, but it can stay like that as long as the level of $10.128 is not violated. in a case of a break below this level, the market will develop another impulsive decline towards the level of $9,170.

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Trading plan for 07/03/2018

The resignation of chief economic advisor to President Trump reactivates concerns about trade wars and restores the risk-off climate to the market. JPY and CHF are getting better, AUD and CAD are doing the worst. The stock market in Asia shines red: Japanese Nikkei225 lost 0.77% today, and Shanghai's main index falls by 0.6%.

On Wednesday 7th of March, the event calendar is busy with important data releases. During the London session, it will be worth to keep an eye on UK Halifax House Price Index data and Eurozone Final GDP data. During the US session, important data to focus on are ADP Non-Farm Employment Change, Trade Balance and Crude Oil Inventories from the US and from Canada: Overnight Rate decision and Bank of Canada Rate Statement. There are two speeches from Fed officials scheduled as well.

EUR/USD analysis for 07/03/2018:

At night, the New York Times reported that chief economic advisor to President Trump Gary Cohn resigned, probably due to the lack of communication with the president on trade issues. Cohn's resignation increases the risk that Trump will continue to push high import duties. Trump's meeting with entrepreneurs was also called off, to which Cohn insisted, which additionally puts out hopes for maintaining a free trade policy. Robert Kaplan from the Fed said that it was too early for the Fed to take into account the effects of any duties. He added, however, that anything that would harm the trade relations with Mexico and Canada would be against the US interest.

Let's now take a look at the EUR/USD technical picture at the H4 time frame. Information from the White House hit the market sentiment. The price has managed to retrace 61% of the last swing down, but the move upward is losing the steam as the market enters the overbought zone. If the level 1.2403 is violated, then the next technical support is seen at the level of 1.2366 (this one hasn't been tested yet).

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Ichimoku cloud indicator analysis of USDX for March 7, 2018

The Dollar index broke below support of 89.80 yesterday and is now testing the lower cloud boundary in the 4-hour chart. Trend has changed from bullish to neutral and is very close to turning bearish.

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After being rejected at the resistance of the 38% Fibonacci retracement, the Dollar index is making lower lows and lower highs in the 4 hour chart. Price has broken below all short-term support levels we mentioned and is now testing the cloud support. Resistance is at 89.75 and bulls will need to at least break above this level soon.

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On a daily basis the Dollar index is trading just above the daily kijun-sen support. Bulls want to see buyers step in now and push the index higher. They do not want to see a daily close below the kijun-sen. With price still below the daily cloud, trend remains bearish. Strong resistance is at 90.40 This is the first important obstacle bulls must overcome. Until then, bears are in control.

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Ichimoku cloud indicator analysis of gold for March 7, 2018

Gold price is now in a neutral short-term trend after entering inside the Ichimoku cloud of the 4-hour chart. Price reached the upper cloud boundary and got rejected. Gold continues to trade inside a range of $1,310-$1,350.

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Short-term resistance is at $1,337. The 4 hour candles did not manage to close above that level and price got rejected. Support is at $1,329. Break this level and we are going lower towards $1,321. Break this and we test $1,307-$1,310 which is the lower boundary of the trading range. Break above resistance at $1,337 and we will test the upper boundary of the trading range at $1,344-50.

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Magenta line - resistance

Red trend line -support

On a daily basis Gold price managed to break and close above the daily Kumo. This is a bullish sign. As long as price does not close back inside the Kumo. If this happens, we should expect a move back towards $1,300-$1,310. The most bullish sign would be to see a break above the long-term resistance trend line (magenta line).

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Fundamental Analysis of EUR/JPY for March 7, 2018

EUR/JPY has been quite indecisive and volatile recently after reaching 131.50 resistance area from where it is currently expected to push lower. Despite disappointing economic data from Japan today ahead of more macroeconomic reports later this week, JPY gained impulsive momentum over EUR which is indeed quite remarkable. EUR has been struggling amid mixed economic reports. Ahead of the BOJ Policy Rate decision sudden impulsive bearish pressure in the pair explains something interesting. Today, Japan's Leading Indicators report was published with a decrease to 104.8% from the previous value of 107.4% which was expected to be at 106.5%. Moreover, on Friday, BOJ Policy Rate report is going to be published. The key policy rate is widely expected to be unchanged at -0.10%. Besides, the Monetary Policy Statement and Press Conference are expected to be quite neutral with its impact. On the EUR side, today French Trade Balance report is going to be published which is expected to show a wider deficit of -4.4B from the previous deficit of -3.5B and Revised GDP is expected to be unchanged at 0.6%. As for the current scenario, there are no positive forecasts for the eurozone's economic conditions this week, whereas high impact economic reports from Japan may lead to volatility and the market bias on the JPY side, leading to further bearish pressure in the pair for a while. To sum up, JPY is expected to have an upper hand over EUR in the short term.

Now let us look at the technical view. The price is currently residing below 131.50 price area having a good amount of volatility in the market recently. The price has violated the 131.50 price area for a several times and currently expected to push lower towards 129.50 support area. As the price remains below 131.50, the bearish bias is expected to continue further.

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Daily analysis of USDX for March 07, 2018

The index stays under pressure below the 200 SMA on the H1 chart after having a sellers' wave during Tuesday's session. As the greenback is weakening, we can expect a test of the support zone at 89.36, at which a breakout should expose the 87.88 level. To the upside, gains will be limited by the 90.63 area.

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H1 chart's resistance levels: 90.63 / 91.75

H1 chart's support levels: 89.36 / 87.88

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 89.36, take profit is at 87.88 and stop loss is at 90.81.

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Daily analysis of GBP/USD for March 07, 2018

GBP/USD is having a bullish momentum across the board as it managed to break above the 200 SMA. Such a move could open the doors to test the resistance zone of 1.4078. However, as long as the bearish structure remains below the 1.4078 level, the pair could scope to test fresh lows below the support area of 1.3753. The MACD indicator stays in the positive territory, favoring the bulls.

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H1 chart's resistance levels: 1.3881 / 1.4078

H1 chart's support levels: 1.3753 / 1.3608

Trading recommendations for today: Based on the H1 chart, sell (short) orders only if the GBP/USD pair breaks a bearish candlestick; the resistance level is at 1.3753, take profit is at 1.3608 and stop loss is at 1.3901.

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Daily analysis of Gold for March 06, 2018

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Overview

The gold price begins today's trading above 1,316.48 after yesterday's decline. Stochastic provides a clear positive signal for more positive trading in the upcoming sessions. Therefore, we still expect the bullish trend on the intraday and short-term basis conditioned by the stability above 1,316.48. Our main targets begin at 1,335.40 and extend to 1,365.97 after breaching the previous level. The expected trading range for today is between the 1,310.00 support and the 1,340.00 resistance.

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Daily analysis of Silver for March 06, 2018

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Overview

The silver price continues to fluctuate at the bullish trend line shown on the chart as it gets positive signals from stochastic, which keeps the expected bullish trend valid and without any changes. We are waiting for the price to breach 16.65 levels to head towards our next target at 17.43. We should note that a break of 16.35 will stop the expected rise and push the price to visit 15.49 levels before any new attempt to rise. The expected trading range for today is between the 16.30 support and the 16.75 resistance.

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