Daily analysis of EUR/JPY for January 06, 2016 Market Analysis Review

Overview

EUR/JPY continues falling today and reaches as low as 127.31 so far. Intraday bias remains on the downside to test the 126.09 key support level. We stay cautious about strong support from 126.09. But a break of the 129.66 support, turning it into resistance, is needed to indicate short-term bottoming. Otherwise, the outlook will stay bearish. A decisive break of 126.09 will extend the larger decline from 149.76. A strong rebound after failing to sustain below 38.2% retracement of 94.11 to 149.76 at 128.50 points to the development of a sideways pattern. We expect more range trading between 126.09 and 149.76 in the medium term. An upside breakout should come next at a later stage. Nevertheless, a decisive break of 126.09 would extend the correction towards 61.8% retracement at 115.36.

Daily Pivots: (S1) 127.16; (P) 128.31; (R1) 129.12

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Daily analysis of Silver for January 06, 2016 Market Analysis Review

Overview

The silver price shows more fluctuations around 13.96 and the EMA 50. Therefore, there is no change in our main bearish overview that depends on the stability of the daily close below 14.25, waiting to head towards 13.50 followed by 13.00 initially. Stochastic starts to offer negative overlapping signal that might motivate the price to resume the bearish bias in the upcoming sessions. The silver price have not shown any strong moves since morning, moving near the 13.96 level. This keeps the bearish trend scenario valid (no changes seen today), targeting 13.50 then 13.00 levels mainly. Its continuation is conditioned by holding below the 14.25 level.

Expected trading range for today is between the 13.50 support and 14.25 resistance.

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Daily analysis of GBP/JPY for January 06, 2016 Market Analysis Review

Overview

A decline in the GBP/JPY pair is still in progress and intraday bias remains on the downside for 100% projection of 195.86 to 180.36 from 188.79 at 173.9. A decisive break there will target the next long-term Fibonacci level at 165.67. On the upside, movements above 176.15 minor resistance will turn bias neutral and bring consolidations. But the near-term outlook will stay bearish as long as 180.36 resistance turned into support holds. A fall from 196.85 is currently viewed as a correction and would first target 38.2% retracement of 116.83 to 195.86 at 165.67. We asses the depth of the correction based on reactions to 165.67 and the structure of the decline. A break of 180.36 will bring a rebound, but we expect the strong resistance to limit the upside and bring another fall to extend the corrective pattern.

Daily Pivots: (S1) 173.81; (P) 174.98; (R1) 175.88

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EUR/NZD analysis for January 06, 2016 Market Analysis Review

Overview:

Recently, EUR/NZD has been moving upwards. The price tested the level of 1.6229 in an average volume. In the daily time frame, I found testing of 200 SMA and 50 SMA. In the H4 time frame, I found a massive volume spike and wide-range bar (buying climax). Buying EUR/NZD at this stage looks risky. I placed Fibonacci retracement to find a potential end of the upward correction and got Fibonacci retracement 38.2% at the price of 1.6180 (successfully held) and Fibonacci retracement 61.8% at the price of 1.6395.

Fibonacci Pivot Points:

Resistance levels:

R1: 1.6090

R2: 1.6120

R3: 1.6170

Support levels:

S1: 1.5990

S2: 1.5955

S3: 1.5910

Trading recommendations: Buying EUR/NZD looks very risky at this stage since the price respected our daily 200 SMA in the H4 and daily time frames. Watch for potential selling opportunities.

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Gold analysis for January 06, 2016 Market Analysis Review

Overview:

Since our last analysis, gold has been trading upwards. The price tested the level of $1,092.72 in a high volume. In the daily time frame, the price has broken our 50 SMA. Selling at this stage looks risky. The intraday trend is upward, but the mid-term trend is still downward. I placed Fibonacci retracement to find resistance levels and got Fibonacci retracement 38.2% at the price of $1,102.00 and Fibonacci retracement 61.8% at the price of $1,136.00. Intrday buying positions are preferable.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,080.70

R2: 1,084.20

R3: 1,086.90

Support levels:

S1: 1,074.50

S2: 1,071.80

S3: 1,068.30

Trading recommendations: Watch for potential buying opportunities, selling looks risky.

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NZD/USD intraday technical levels and trading recommendations for January 6, 2016 Market Analysis Review

The daily chart shows a bullish Flag pattern that was initiated around the level of 0.6230 on September 23.

On November 30, a bullish engulfing candlestick was expressed around 0.6520 where the depicted uptrend came to meet the NZD/USD pair.

Shortly after, a bullish breakout above 0.6600 (the upper limit of the flag pattern) took place. This enhanced the bullish side of the market towards 0.6800.

As anticipated, temporary bearish rejection existed around the price level of 0.6840 (daily resistance level) similar to what happened previously on December 16.

On the other hand, an estimated projection target for this flag pattern remains at 0.6950 when the NZD/USD pair manages to keep trading above 0.6840.

On the other hand, a daily closure below 0.6750 invalidates the depicted uptrend, allowing a quick bearish decline initially towards the price level of 0.6600 where significant bullish rejection maybe applied.

Few weeks ago, an obvious bullish breakout above 0.6600 was executed via a full-body bullish candlestick on the H4 chart.

Shortly after, the NZD/CAD pair faced resistance between 0.6700 and 0.6750 providing temporary bearish rejection.

For the NZD/USD conservative traders, a valid buy entry was previously suggested around 0.6600 (corresponding to the depicted uptrend and the upper limit of the broken consolidation range).

Last week, lack of enough bullish pressure above 0.6800 was manifested. That is why, the current bearish decline is pushing even below the depicted support level at 0.6700.

A valid buy entry was suggested around the price zone of 0.6750-0.6700 where the depicted uptrend came to meet the NZD/USD pair.

However, it should be closed as an evident bearish breakdown of the depicted uptrend line has already been executed.

Hence, a quick bearish decline towards the prominent support level of 0.6600 where a new bullish swing, so a valid buy entry should be expected.

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USD/CAD intraday technical levels and trading recommendations for January 6, 2016 Market Analysis Review

Overview:

A bullish breakout above the previous consolidation zone between 1.2400 and 1.2800 was performed on July 15 (shown on the weekly chart). A long-term bullish target was projected towards the level of 1.3270.

A significant bearish rejection was observed around 1.3450. Since then, another consolidation range was established between 1.2800 and 1.3400.

Few weeks ago, a bearish breakout below the support level of 1.3075 was needed to enable a further bearish decline towards 1.2900. However, an evident bullish rejection was expressed around this level.

A bullish breakout above 1.3400 (the upper limit of the recent consolidation range) was performed on December 7.

Daily fixation above 1.3400 enhanced the bullish side of the market.

A bullish visit towards the next resistance level of 1.4100 (Fibonacci Expansion 100%) should be expected. Hence, a valid sell entry should be expected around this level.

On the other hand, the price zone of 1.3370-1.3400 remains a significant support zone to be watched for a valid buy entries if a bullish pullback occurs.

Trading recommendations:

Risky traders can have a counter-trend sell position around 1.4100 (Fibonacci Expansion 100%) if enough bearish rejection is expressed when retesting takes place.

On the other hand, conservative traders should wait for the USD/CAD pair to retrace towards the zone of 1.3380-1.3400 looking for a low-risk buy entry. S/L should be placed below 1.3300.

The initial T/P levels should be placed at 1.3500 and 1.3600. The long-term bullish target is projected towards 1.4100.

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Technical analysis of USD/JPY for January 06, 2016 Market Analysis Review

USD/JPY is under pressure. Overnight, US stocks managed to end with small gains, helped by shares in telecoms, utilities and consumer staples sectors. The Dow Jones Industrial Average added 0.1% to 17,158, the S&P 500 rose 0.2% to 2,016, while the Nasdaq Composite was down 0.2% to 4,891.

Nymex crude oil fell 2.2% further to $35.97 a barrel, gold gained 0.3% to $1,077 an ounce, and the benchmark 10-year Treasury yield was broadly flat at 2.248%.

Meanwhile, the US dollar continued to strengthen against other major currencies with the Wall Street Journal Dollar Index once reaching 90.89, the highest level since November 2002. EUR/USD dropped another 0.8% to 1.0746, GBP/USD fell 0.3% to 1.4671, USD/CHF rose 0.7% to 1.0081, and USD/CAD was up 0.3% to 1.3995. However, USD/JPY declined a further 0.3% to 119.05.The pair remains capped by both the 20-period (30-minute chart) moving average and the key resistance at 119.30. It is currently trading around the 20-period moving average, while the intraday relative strength index is hovering around the neutrality level of 50 lacking upward momentum. If the pair keeps on failing to break above 119.30, it stands a higher chance of returning to the first downside target at 118 (around yesterday's low). The second downside target is set at 117.60 (last seen on October 15).

Trading recommendations:

The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 118. A break of that target will move the pair further downwards to 117.60. The pivot point stands at 119.30. In case the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, long positions are recommended with the first target at 119.70 and the second target at 120.10.

Resistance levels: 119.70, 120.10, 120.75

Support levels: 118, 117.60, 117.35

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Technical analysis of USD/CHF for January 06, 2016 Market Analysis Review

USD/CHF is expected to trade in a higher range as bias remains bullish. Currently trading at 1.0080, the pair seems more likely to be forming a "bullish flag" pattern after the recent advance. Even though a continuation of the consolidation cannot be ruled out at the current stage, its extent should be limited by its key support at 1.0060. Furthermore, the 50-period moving average is on the upside, and should limit any downward attempts. To sum up, as long as 1.0060 is not broken, expect a new rise to 1.0115 and 1.0140 in extension.

Trading recommendations:

The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. As long as the price holds above its pivot point, it is recommended to open long positions with the first target at 1.0115 and the second target at 1.0140. In the alternative scenario, it is recommended to open short positions with the first target at 1.0030, if the price moves below its pivot points. A break of this target is likely to push the pair further downwards, and one may expect the second target at 1.00. The pivot point is at 1.0060.

Resistance levels: 1.0030, 1.0, 0.9965

Support levels: 1.0115, 1.0140, 1.0175

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Technical analysis of NZD/USD for January 06, 2016 Market Analysis Review

NZD/USD is under pressure. The pair remains on the downside, capped by its descending 50-period moving average. The formation of lower highs and lows is still intact and it should confirm a negative outlook. Besides, the relative strength index lacks upward momentum. Even though a technical rebound cannot be ruled out, its extent should be limited before further decline to 0.660 and 0.6560 in extension.

Trading recommendations:

The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 0.6600. A break of that target will move the pair further downwards to 0.6560. The pivot point stands at 0.6715. In case the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, long positions are recommended with the first target at 0.6760 and the second target at 0.6790.

Resistance levels: 0.6760, 0.6790, 0.6830

Support levels: 0.660, 0.6560, 0.6525

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Intraday technical levels and trading recommendations for GBP/USD for January 6, 2016 Market Analysis Review

Few months ago, the market was pushed above the weekly key zone around 1.5550 in an attempt to reach the area of 1.5900, which provided significant bearish resistance.

Recent weekly candlesticks came as bearish engulfing candles, closing below the level of 1.5220 (the neckline of the Head and Shoulders pattern). This supported the bearish side of the market in the long term.

A quick bearish decline towards the weekly demand level of 1.4950 was expected as a result of the bearish breakdown below 1.5200.

Weekly persistence below 1.4950 exposed the way towards 1.4800 while the price levels of 1.4650 and 1.4600 (the depicted demand levels) wait for a bearish visit as long as the market keeps trading below 1.4800 (the lower limit of the depicted bearish channel).

Given the previous bullish rejection expressed around 1.4600 on April 2015, a new bullish swing off current price levels should not be excluded.

On the other hand, bullish re-closure above 1.4950 allows another bullish pullback to occur towards 1.5350.

During 2015, significant bearish rejection was expressed around 1.5770 and 1.5230 where a bearish Head and Shoulders reversal pattern was established. Since then, the market has been trending down within the depicted bearish channel.

The price level of 1.4950 was broken to the downside few weeks ago, constituting a significant supply level. As anticipated, it offered a valid sell entry on December 24.

Daily persistence below 1.4800 (the lower limit of the current bearish channel) allowed further bearish decline towards 1.4680 and 1.4610 where previous prominent bottoms are located on the GBP/USD daily chart.

This week, the GBP/USD pair looks oversold as it is being pushed further below the lower limit of the depicted bearish channel.

That's why, early signs of a bullish reversal around the price zone of 1.4660-1.4610 should be considered as a valid buy signal.

Trading Recommendation:

Risky traders can have a valid BUY entry anywhere around the price zone of 1.4650-1.4610 if enough bullish rejection is expressed on short-term charts (H4 and H1 charts).

S/L should be located below 1.4550 to limit our risk. Initial T/P levels should be located at 1.4800 and 1.4950.

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Technical analysis of GBP/JPY for January 06, 2016 Market Analysis Review

GBP/JPY is under pressure on an intraday basis. The pair has accelerated to the downside after breaking down its previous support at 175.10, which should now play a key resistance role. The first target to the downside is set at the horizontal support and overlap at 173. A break below this level would open the way to further weakness toward 172.40.

The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 173. A break of that target will move the pair further downwards to 172.45. The pivot point stands at 175.10. In case the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, long positions are recommended with the first target at 176.15 and the second target at 176.90.

Resistance levels: 176.15, 176.90, 177.50

Support levels: 173, 172.40, 172

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Intraday technical levels and trading recommendations for EUR/USD for January 6, 2016 Market Analysis Review

Previously, the EUR/USD pair moved lower after breaking below the major demand levels around 1.2100 and 1.2000 where historical bottoms were previously established back in July 2012 and June 2010.

EUR/USD bears pushed the price slightly below the monthly demand level of 1.0550 (established in January 1997). Bullish recovery was observed shortly after.

April's candlestick came as bullish engulfing one. However, next monthly candlesticks (August, September, October, and November) reflected strong bearish pressure, which existed around the level of 1.1450.

Hence, a long-term projected target is still seen at 0.9450 if a bearish breakout below the monthly demand level of 1.0570 occurs before the end of this month (January).

On August 24, the EUR/USD pair looked overbought as the market spiked above the level of 1.1500 (daily supply level).

Shortly after, the intraday supply zone of 1.1360-1.1400 provided significant bearish pressure. An intraday sell entry was suggested. All T/P levels are located at 1.1150 and 1.1050 were already reached.

A bearish breakout of the depicted uptrend was performed on October 23. This enhanced a long-term bearish scenario with targets at 1.0800 and 1.0600.

One month ago, daily persistence below the level of 1.0800 and 1.0700 (key levels) ensured enough bearish momentum towards 1.0550 (prominent monthly level) where the recent bullish pullback was initiated.

Last week, the level of 1.1000 was considered a significant supply level to offer a valid sell entry, and it already did.

A Head and Shoulders reversal pattern was established around the mentioned supply level.

A bearish closure below 1.0800 (neckline) confirmed the depicted reversal pattern. Hence, the S/L for our sell entry should be lowered to 1.0850 to secure some profits.

Bearish persistence below 1.0800 (neckline of the depicted reversal pattern) allows a further bearish decline towards 1.0730 and 1.0550 again.

On the other hand, the price level of 1.0800 (reversal pattern's neckline) will probably offer another valid SELL entry if bullish pullback occurs today.

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USDX technical analysis for January 6, 2016 Market Analysis Review

The US dollar index made a new short-term high, but I believe we should prepare for some dollar weakness over the coming days. Resistance is at the 99.80-100 area and I expect to see a rejection in this area.

The US dollar index is above the Ichimoku cloud implying that bulls control the short-term trend at least. Support is at 99, while resistance is at 99.80-100. The upward bounce of the 97.20 area is corrective to me so I would expect another round of selling pressure to push the index to new short-term lows below 97. Support by the Ichimoku cloud is at 98.

The weekly chart remains fully bullish as the price is above the weekly cloud and above both the tenkan- and kijun-sen indicators. However, my view is that this week, the most probable outcome will be to see a downward bearish reversal in the dollar as a part of a bigger correction that will bring the index towards 96.50. The market is still inside a bigger sideways movement and I prefer to be neutral for the dollar.The material has been provided by InstaForex Company - www.instaforex.com

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Gold technical analysis for January 6, 2016 Market Analysis Review

The gold price has made an upward breakout. The short-term target is at $1,095. If it is surpassed, then we should expect a move towards $1,101 where the 38% Fibonacci retracement of the decline from $1,190 is found.

The gold price has turned the short-term trend into bullish as we have a clear break above the Ichimoku cloud. As long as the price is above the cloud we could see a even bounce towards the 61.8% Fibonacci retracement. The minimum upside target is at $1,095. Support is at $1,070.

Black lines - downward sloping wedge

The price is below the Ichimoku cloud on the weekly chart. The long-term trend remains bearish. But the fact that the stochastic is oversold and we are at the lower boundary of the wedge justifies a strong bounce towards the Ichimoku cloud if not the kijun-sen (yellow indicator). As I have been saying for the last month, as long the gold price trades around $1,070, this is not the market to go short.

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Technical analysis of USD/CAD for January 06, 2016 Market Analysis Review

Overview:

• The USD/CAD pair is going to find strong resistance at the level of 1.4209 and the minor resistance has been set at 1.4133. Supports are set at the levels of 1.4012 and 1.3927, respectively. Besides, the weekly pivot point has already been set at the price of 1.4025. Equally important, the price is still moving around the key level of 1.4090 today. Moreover, the USD/CAD pair hass still been above the double top since yesterday. As a result, the price has already formed the strong support at this spot of 1.4012 and it is now approaching it in order to test it. The RSI calls for an uptrend. Therefore, the USD/CAD pair will get rather convincing upside momentum and the structure of the rise does not look corrective. Given a bullish opportunity above the 1.4012 level, it will be a good sign to buy above 1.4012 with the first target of 1.4133 (this level coincides with weekly resistance 1) and it will call for an uptrend to continue with bullish movements towards 1.4209. The level of 1.4209 will form a new double top on the H4 chart.

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Technical analysis of AUD/USD for January 06, 2016 Market Analysis Review

Overview:

• The AUD/USD pair called for the bearish market from the price of 0.7157 (38.2% of Fibonacci retracement levels) towards the level of 0.7059, but it recovered again to start going upwards close to 0.7071 today. Besides, the range of the last week was very downside. Today, the support will be set at the level of 0.7059, but the double bottom is going to stand at 0.7015.
• On the other hand, the minor resistance has been set at 0.7102 and the price of 0.7157 is representing strong resistance. So, the bulls were forced to pull back below the level of 0.7157. Thus, this level will be a strong resistance for indicating the bearish opportunity below the resistance. As a result, it will be a good sign to sell below 0.7157/0.7102 with a target at 0.7050. It also might resume to 0.7015. Otherwise, the stop loss should be set at 0.7180.

Intraday technical levels:

Date: 6/01/2016

Pair: AUD/USD

• R3: 0.7269
• R2: 0.7235
• R1: 0.7199
• PP: 0.7165
• S1: 0.7129
• S2: 0.7095
• S3: 0.7059

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Technical analysis of NZD/CHF for January 06, 2016 Market Analysis Review

The NZD/CHF pair is clearly trending upwards since August 25, 2015 and the price is moving within the ascending channel.

Currently, the price is retesting the lower trend line of the channel and S1 support at the same time. The S1 support is 38.2% Fibonacci retracement level applied to the low of December 9 and the high of December 31. The price could still go slightly lower to test either 50% or 61.8% Fibonacci, but only a breakout of S3 could change the trend.

While S3 is holding, consider buying NZDCHF near the lower trend line of the channel, targeting either 0.6900 or 0.7000 psychological resistance levels. Stop loss should be placed below S3 (61.8% Fibs).

Support: 0.6710, 0.6660, 0.6615

Resistance: 0.9600, 0.7000

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Technical analysis of AUD/CHF for January 06, 2016 Market Analysis Review

After a heavy downtrend, AUD/CHF found the bottom at the 0.7045 level and slowly started to move higher. The first resistance at 23.6% Fibonacci was rejected several times, but eventually the price broke above and found the resistance at 50% Fibs.

The most recent wave down stopped right at the previous level of resistance (S1) where it found a support that has been rejected on January 4. Currently, the price is retesting this level of support and the lower trend line of the ascending channel. If the price holds the current support, it could be the starting point of another wave up to retest R2.

Consider buying AUD/CHF if the daily close is above the ascending channel targeting the R2 (0.73) area. Stop loss could be placed just below the strong psychological support at 0.7000.

Support: 0.7160

Resistance: 0.7240, 0.7300, 0.7350

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Global macro overview for 06/01/2016 Market Analysis Review

Global macro overview for 06/01/2016:

A bunch of PMI Services data from the main eurozone countries has been released this morning and in general the data beat the market expectations. The overall EU PMI composite index was better than expected (54.0 points vs. 54.0 points forecasted) and still shows a positive tendency to rise above the 50-point level. There are still no signs of fast acceleration on the horizon, but for the moment there are convincing clues that a moderate expansion is still a viable forecast. The eurozone is gradually repairing the damage that lingers from the financial crisis.

The EUR/USD pair is trading right on the 61%Fibo support at the level of 1.0722. The next support is seen at the level of 1.0691 and the next resistance is seen at the level of 1.0795.

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Global macro overview for 06/01/2016 Market Analysis Review

Global macro overview for 06/01/2016:

The FOMC meeting minutes will be released today at 07:00 GMT and they might unveil policy makers' insight into historic decision regarding interest rate hike. Almost a month ago, the US Federal Reserve ended a seven-year stretch of near zero rates with the first interest rate hike since 2008. The hike was 25bp and it was considered small. The current question market participants are asking is whether the next hikes will be gradual (like the first one) or more aggressive. This is a rather important matter because Fed Chair Yellen only clarified during her press conference in December that gradual does not mean mechanical and the Fed policy decisions are still data-dependent. In that case, any hawkish statements from the committee will likely boost the USD, and more dovish comments could deflate the USD and dampen more rate hike expectations in 2016.

The US Dollar index has broken above the technical resistance at the level of 99.30 (now support) and it is trying to test another technical resistance at the level of 99.98.

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Elliott wave analysis of EUR/NZD for January 6, 2016 Market Analysis Review

Wave summary:

We have seen a failed test to break above 1.6220, but we think the next test to break above this minor resistance will be successful. A clear break above 1.6220 will open up the upside for a continuation higher towards 1.6446 and 1.6749 as the next upside targets.

In the short term, we expect minor support at 1.6059 to be able to protect the downside for the anticipated break above 1.6220 for a continuation higher to 1.6446.

Trading recommendation:

We are long EUR from 1.5810 and will keep our stop at 1.5925 for now. If you are not long EUR yet, then buy a break above 1.6220 with your stop placed at 1.6050.

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Elliott wave analysis of EUR/JPY for January 6, 2016 Market Analysis Review

Wave summary:

We have seen the expected downside acceleration as wave (iii) lowered towards the expected target near 116.13. We were looking for a minor sideways consolidation near minor support at 128.03, but there was no support to be found here and it is typical behavior of wave (iii). Corrections during a third wave tend to be small or even sub-normal. When this occurs, I stay focused on longer-term targets and try not to get caught in possible minor targets.

In the short term, we have seen the 200% target of red wave (i) tested at 127.18, which could cause a bounce back to 128.04, but the downtrend looks strong and could easily take out this support too for a decline closer to 125.45 as the next minor downside target.

Trading recommendation:

We are short EUR from 130.95 and will move our stop lower to 129.50. If you are not short EUR yet, then sell near 128.00 and use the same stop at 129.50.

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Technical analysis of EUR/JPY for January 6, 2016 Market Analysis Review

General overview for 06/01/2016:

An impulsive wave progression in the last wave c might be about to terminate as the cycle is looking mature and the bullish divergence supports the view. Nevertheless, the price must break out higher above the level of 128.67 to confirm this point of view.

Support/ Resistance :

127.32 - Intraday Support

127.98 - WR3

128.67 - Intraday Resistance

129.31- WS2

Trading recommendations:

Daytraders should watch this pair closely and consider buying on the dips in this market with tight SL as the downside trend might reverse any time soon.

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Daily analysis of major pairs for January 6, 2016 Market Analysis Review

EUR/USD: There is a vivid bearish signal for this currency trading instrument as bears push the price lower and lower. The EMA 11 is below the EMA 56 and the Williams' % Range period 20 is not far from the oversold region. Potential targets for this week remain at 1.0700 and 1.0650.

USD/CHF: The USD/CHF pair is in an uptrend; and according to the current price action, it would be profitable to buy pullbacks in the market. The upward journey would go on, but there would be occasional muscles flexing from bears, which would cause occasional bearish corrections. The time during these corrections would be ideal for long trades if a bullish candle forms next.

GBP/USD: This pair consolidated on Tuesday within a downtrend. There is a Bearish Confirmation Pattern in the market, and it is much more likely that the bearish movement would continue. The accumulation territory at 1.4650 has been tested and it could be tested again. Another target for bears is the accumulation territory at 1.4600.

USD/JPY: This pair continues experiencing some weakness, just like most pairs containing the yen experienced weakness at the same time. The bias on the pair is bearish, and thus, further weakness is expected in the market, which might make the price test the demand level at 118.50.

EUR/JPY: The EUR/JPY pair went down smoothly on Tuesday, almost testing the demand zone at 127.50. The price has moved downwards by 300 pips this week before the current upwards bounce, which is shallow. It is expected that the downward movement would resume into the favor of the bears.

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Technical analysis of USD/CAD for January 6, 2016 Market Analysis Review

General overview for 06/01/2016:

As anticipated yesterday, an impulsive wave progression to the upside has been broken above the 1.4000 level. Moreover, the overall cycle has not been completed yet as there are missing internal waves to the upside. The first projected target is at the level of 1.4058.

Support/Resistance :

1.4058 - WR3

1.4018 - Intraday Support

1.4000 - Round Number Support

1.3932 - WR2

1.3872 - Weekly Pivot

Trading recommendations:

Buy orders opened on Monday should be ready for closure as the projected TP has been set at the level of 1.0458.

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For detail explanation and best discovery on daily market trends and news you may visit via Technical analysis of USD/CAD for January 6, 2016 . Thanks for your support.