Daily Market Analysis by ForexMart

AUD/USD Technical Analysis: June 1, 2017

The Australian dollar paired against the U.S. dollar attempted to move higher but the 0.7475 region was strongly resistive during the Wednesday session. Instead, the trend reversed followed by a rollover towards the 0.7425 handle. This has been a significant support level in the past few sessions that makes a bounce from here expected to happen.

Traders should monitor the general risk appetite of the market since this could influence the pair. If the price breaks higher than the highs during the Wednesday session, the next target would be at 0.7510 region. A break in the upper region signals buying of the pair which is a significant break out. Overall, there is a lot of noise in the market.

Gold is essential in the movement of this pair but traders should also monitor the risk appetite. Others are cautious with the positioning scared of the status of gold market but this would be more damaging to the market.

However, this should not prevent the market from moving but most of the time have higher correlation in the market. There are days where the trend is headed in a different direction because of economic or geopolitical events. Over

Overall, traders anticipate choppiness in trading the Australian currency as they will be a lot of noise present due to geopolitical concerns. Short-term opportunities will come from time to time that traders could take advantage of.
 
GBP/JPY Technical Analysis: June 5, 2017

The British pound against the Japanese yen declined during the Friday session following a surge in the start changing the “risk on” attitude in a rapid pace. Moreover, the U.S. jobs data worsen the situation which is less than expected. There is also a lot of risk appetite from the market which is contradictorily beneficial for the pair.

From the current psychological levels, it seems that the market will rally from here on directed towards the 143 handle. The 142 level below gives significant support and if the market is able to sustain this, there is a higher chance for a rebound.

However, if the price breaks lower than the 142 level instead, the next move will most likely go down towards the 141 handle. Nevertheless, there is a high chance for volatility and choppiness which is already expected for this pair especially since it is risk sensitive.

Buying in the lows is advantageous for the market that makes it easier to trade this pair. However, it seems that this is fitting for buyers to get involved. Consequently, the market will go down towards the 143 handle and down to 144 handle.

For long-term, this pair will tend to move higher but the current risk appetite is uncertain but the stock market is reliable that could reverse trades lower in the day on Friday. This makes selling less appealing in the current condition.
 
NZD/USD Technical Analysis: June 5, 2017

The New Zealand against the U.S. dollar soared during the Friday session influenced by the weak reports of jobs data. There is no upward hint that makes it not surprising when it move higher.

From the start, the pair broke higher than the 0.71 region on Friday and it lingered within the upper channel. When buyers bought the pair in the lower channel, it could next towards the 0.72 level and above.

Overall, the market remains strong but being a pair with high liquidity, the succeeding moves will be big moving towards the upper channel. Nevertheless, buyers who missed the opportunity in the former move will most likely grab the next chance they have.

Buying lows is the ideal move to move forward with this pair. It seems that the 0.71 level is quite supportive but shorting to pair is not advisable in the current value of the pair.

Nevertheless, there will still be high volatility in the market but there are still opportunities available for this pair. If the trader is being patient with a certain amount of money, a trader can still find positions in the market. Buying is more profitable for this pair unless the pair breaks lower than the 0.7050 region which indicates a complete reversal.
 
USD/CAD Technical Analysis: June 5, 2017

The U.S. dollar attempted to surge in the beginning of Friday session. Soon after, this was reversed due to soft results of jobs data. The pair broke lower than the 1.35 handle signaling the downtrend of the pair. On the other hand, the long-term trend moves in an upward direction.

There is massive support found in the 1.3250 region. More buyers will come in the market if given enough time but for now, sellers are dominating the market for short-term.

The oil market also has a high impact in the market but as it is directed downward, this could push the price to move up. Also, higher volatility on Friday brought in gains for traders that could result to oversupply later on when the traders realized the current situation of the market.

Choppiness is anticipated in the market with some problems from time to time. Other than the oil market that had a high impact to this pair, the current job condition is the primary focus of the market more than other issues. Although this is just for short-term, traders could opt to go long on this pair.

A significant support is found close to the 1.3450 region while it is found at 1.3250 on the long-term charts. A bounce back from here or a move higher than the 1.35 handle hints a move to the upside. Some traders would sell this market but they should still remain vigilant in doing so.
 
AUD/USD Technical Analysis: June 5, 2017

The AUDUSD had a sharp increased on Friday followed by the disappointing reactions by investors against the measure of U.S. Non-Farm Payrolls. According to the data, the headline number presented a least than expected results coupled with the weak average hourly earnings. As the headline number was left behind, the Fed rate has 90 percent of chance to increase in June. But traders raise concerns regarding the bank’s potential to imply a lift on rates twice in the later part of the year. It became the main reason for the rally of Aussie and drop of the greens. The dollar gained less attraction due to sinking rates.

The major trend went down as reflected in the daily swing chart. On Friday, the momentum turned to the upside with the dramatic pattern of a closing price reversal bottom.

A trade within .7446 confirms the chart formation. A move over .7475 shifts the action as shown in the daily chart.

The main range highlighted the regions .7329 to .7517 while the retracement level touched .7423 to .7401 area which is the new support. The short-term range entered the .7517 to .7372 marks along its retracement zone which lies at .7445 to .7462, which are the upside focus. A break out through the area suggests a stronger buying.

As shown in the trajectory at .7440 around Friday’s closing, the possibility that the rally will resume during the earlier session is expected.

The price movement is influenced by the .7445 region close to short-term 50% level. A sustained trend above .7445 signaled strength for buyers. This will push the AUDUSD through the near-term Fibonacci level set at .7462, subsequent to .7472 which is a downtrend angle along with the major top that came in at .7475.

A cut through within this region will alter the major move upwards and generates an upside momentum to challenge the succeeding downtrend line at .7495. This is regarded to be the final support angle prior the main top shown at .7517.

Failure to get past through .7445 give the favor to the sellers. The next focus are the figures 7427, .7424 and .7423 which could be a critical area for support. Inability to hold the region will lead the Australian dollar lower, en route .7401.

Be cautious about the price action and analyze the order flow seen at .7445 in the entire session.
 
GBP/USD Technical Analysis: June 5, 2017

The GBPUSD declined on Friday and face through some volatility as the U.S. employment figures released with a lower than anticipated results.

The market now appeared to hover below the 1.29 handle considered as a major level. The ability to break on top of the said region would lead the market towards 1.3050 area which provided a significant resistance.

Buying on the dips remain to be the most suitable way in playing the market beneath 1.2850 that has been offering an amount of support. Meanwhile, a break over 1.29 range would trigger a continuous higher movement. In the long term, buyers will still get involved and show further strength sooner or later.

Headline risk could still remain since concerns regarding British exit keep forging ahead. This might influence the sterling in any moment. Ultimately, the pair can find a bottom upon staying beyond the level 1.2750.

Moreover, the built-in bid resumes in regards to the GBP. An attempt to move ahead the 1.3450 handle should be done. However, lots of issues and concerns surrounds the British economy, therefore it may take some time to reach the target. Selling is ruled out except when we cut through down the 1.2750 area.
 
EUR/USD Technical Analysis: June 5, 2017

The EURUSD moved through an upward direction on Friday after the release of weak data on employment report. The U.S yields further weakened as prices ascended at a faster pace compared with the European bonds. This made the euro lure attraction of investors prior the ECB meeting scheduled next week.

The European producer price manifested stronger figures, beating expectation which paved the way for a higher rate on the pair. The pair had broken out on the back of a bull flag formation which serves as a pause to refresh higher.

The prices increased by 1.1282 region just shy of 1.1299 close to November 8 highs. The next resistance target is found at the mark 1.1365 near the highs of August 2016. The support reached 1.1206 area around the 10-day moving average.

The momentum came in neutral while the MACD histogram printed nearby the zero-index level whereas the index appeared to be in a flat trajectory suggesting for a consolidation.
 
GBP/USD Fundamental Analysis: June 5, 2017

The GBP/USD pair exhibited a very weak trading action earlier this morning although this was kind of expected due to yesterday’s terror attacks in London. This recent slew of attacks within the region has increased the risks surrounding Britain and now that the snap elections are set to begin within a matter of days, the cable pair is expected to continue receiving pressure throughout the duration of today’s session as well as in the coming days leading up to the day of the UK snap elections.

The GBP/USD pair has been very weak during the past weeks as Theresa May had a hard time making sure that the results of the snap elections would come out in favor of her political inclinations. May had initially sparked the election in the hopes of getting a much better majority, and this initially seemed like a good move considering that the opposition bloc back then was very spotty and in shambles. But within the course of two months, May’s lead has been steadily decreasing during the past weeks and the market is now speculating that the Parliament might be hung in no time at all. However, there is still a possibility that May might be able to win the elections after all and could even win a small majority, although this is not enough for May to be able to establish her position in the international scene, especially when the time comes for her to start with the Brexit negotiations. This could ultimately be very bad for both May and the UK economy and this is why the GBP/USD pair has been very weak as of late, with pair being unable to go beyond 1.2900 points in spite of a relatively weak US employment report.

For today’s session, the UK economy will be releasing its services PMI data, but regardless of how this data comes out, the political events from the UK is expected to remain in the headlines, with the GBP/USD pair continuing to look very weak in the short-term period.
 
USD/CAD Fundamental Analysis: June 5, 2017

The USD/CAD pair went through a very restricted week of ranging and consolidation activity as the pair’s overall accumulated range amounted to a just a little more than 120 pips. This range is currently the tightest for the USD/CAD pair and this illustrates the intensity of the ongoing struggle between the pair’s bulls and bears. Now that the currency pair has already moved past 1.3500 points, this marks a shift in the trend of the currency pair especially since the USD/CAD pair has been recently unable to surpass 1.3500 points during the past two weeks, indicating that the pair’s bulls are struggling with regards to dominating the movement of the currency pair.

Thanks to the pair’s bulls, the USD/CAD pair has managed to prevent itself from falling any further as the bulls remain struggling against the bears in order to make sure that the currency pair does not fall hard and fast. The bulls have been helped in part by the recent drop in oil prices whose downfall was mostly due to a surge in production and inventory and has made sure that the Canadian dollar remains weak across the charts. However, the irony here is that one of the primary reasons behind the currency pair getting bogged down through 1.3500 points was the recent surge in oil prices, but now that oil prices have already dropped in value, the USD/CAD pair has reached a point of no return where there is no expected assistance coming from external factors. But since the Canadian economy has been showing signs of steady improvement during the past months, this steady uptrend in the country’s economy is expected to remain in effect at least during the short-term period.

For this week, the Canadian economy will be releasing its unemployment rates and employment change data, both of which are expected to give a clear depiction of the current status of the Canadian economy. If the employment report comes out as positive, then the USD/CAD pair could possibly make a move towards 1.3400 and could even move lower through the bottom rungs of its range.
 
EUR/USD Fundamental Analysis: June 5, 2017

The EUR/USD pair underwent a very volatile trading action last week after it was able to stick to certain resistance and support levels, thereby making last week a relatively painless week as far as the currency pair’s traders and investors are concerned. The buyers only had to choose the correct buys in order to gain profits as the EUR/USD pair’s uptrend was pretty much evident since it was able to maintain its hold on to certain selling and buying points.

The first half of last week’s trading session was a rather lackluster time for the EUR/USD pair, with the dominant market trend being the performance of the dollar as the market anticipation for the month-end flows increased by the day, wherein the market was generally expecting an influx of US data such as the NFP report. This then caused the EUR/USD pair to drop in terms of its value but since the 1.1100 points contained a lot of buys, the pair has managed to revert strongly against any quick drops in its value. As the second half of last week’s session commenced, this was marked by a transition into a new month and was characterized by several economic reports such as the ADP employment report, which impressed the market by coming in at a strong reading of 153,000, thereby increasing the chances of a positive NFP report, which would ultimately increase the possibility of a Fed rate hike this month. But the NFP fell short of its market expectations as well as the wages report, and this was more than enough for the EUR/USD pair to surge by over 70 pips and closed down last week’s session at its range highs located at 1.1280 points. ]

For this week’s session, there are no major news coming from the EU except the ECB press conference scheduled on Thursday. The market is instead expected to shift its focus towards the UK elections as this will have a significant impact on the standing of the euro. If Theresa May manages to win over a strong majority vote, then the euro could possibly drop a few points, although the bullish undertone for the EUR/USD pair is expected to remain intact at least for a few more days.
 
USD/CAD Fundamental Analysis: June 6, 2017

The USD/CAD pair continues to exhibited a very tight price action as the pair’s bulls and bears continue to fight out for the control of the currency pair and is expected to remain as the pair’s dominant trend in the short-term period. The pair has been trapped in a very limited range ever since the currency pair managed to push forward past 1.3500 points with buyers dominating the 1.3400 trading range.

During the past few days, oil prices have remained stable, thereby decreasing the amount of leverage it gave to the Canadian dollar and was one of the reasons why the loonie was unable to take full advantage of the dollar weakness which was due to a series of dismal US employment reports last week. Oil prices has also continued to be very disappointing due to rising tensions in the oil-rich Middle Eastern countries and has subsequently diminished its support for the loonie. In spite of the pair making a headway towards 1.3460 for a short while, it was almost immediately met with several buys, causing the USD/CAD pair to retreat towards 1.3500 points, where it is expected to stay put at least in the coming days. The market is now preparing itself for the trading sessions on Thursday and Friday as the currency pair would most likely undergo a volatile trading session due to Comey’s testimony as well as the release of the Canadian employment report on Friday. This is why traders are advised to remain in the sidelines until such time that a break shows up on the pair’s range before inducing any kind of progress in their trades.

For today’s session, there are now major releases from both the US and the Canadian economy and the USD/CAD pair is expected to continue consolidating throughout the duration of today’s session.
 
GBP/JPY Technical Analysis: June 6, 2017


The British pound against the Japanese yen broke on the lower side during the Monday session which was upturned indicating bullishness in the trend. It is directed towards the 143 level and higher up that fills the gap. There is a robust resistance seen in the previous trades that makes the reversal unexpected. However, if the price is set higher, this would persist to an elevated level pointed to the 144 region.

It is anticipated to have volatility for this pair regardless of the next move since the market is in a “risk on” or “risk off” sentiment. Moreover, the British elections worsen the situation as it affected the British currency that brings unpredictability in the market until the election on Thursday. Other global economic concerns will also affect the trend.

Volatility is the current focal point of the market and if it gaps more than the 143 region, more buying opportunities will come out for the market. However, if the election polls showed conservatives leading in Britain, this push this pair aimed higher with chances to break higher than the 144 region then shift towards the 145 handle.

Traders should not expect that trading this pair would be easy that makes trades on small positions to be ideal for this pair or one could opt to wait in the sidelines as GBP/JPY is one of the pairs risky to position in the market.
 
EUR/USD Fundamental Analysis: June 7, 2017

EUR/USD traders entered into monitoring mode during the previous trading session as a slew of economic news releases are expected to become the dominant market trend this coming Thursday and Friday. A very choppy price action was also seen in the EUR/USD pair as the majority of traders and investors are waiting in the sidelines as part of their preparations for a heavy trading environment during the last two days of the week.

The EUR/USD pair in particular is having a very hard time with regards to advancing past 1.1300 points, with the currency pair stopping abruptly at 1.1283 points and was unable to make any more headway in spite of the dollar weakness. The drop in the USD’s value is being seen as more of a risk than an advantage since the dollar is apparently preparing itself for the onslaught of economic data this coming Thursday and Friday. For Thursday, the market will be reacting to the Comey statement, the UK snap elections, and the ECB press conference and this is why the market will be in for some major volatility surge. This is why what the market is undergoing right now is merely a prep for Thursday and it is recommended for currency traders to step away from the limelight and start making moves once the dust settles on Thursday.

For today’s session, there are no major releases from the US or the EU economy save for the US crude oil inventory data, and traders can expect a somewhat safe ranging and consolidation price action for the pair, with 1.1300 points as the designated price ceiling for the pair as of the moment.
 
GBP/USD Fundamental Analysis: June 7, 2017

The GBP/USD pair experienced a major correction during yesterday’s session as its previous gains were due to a reaction on the most recent opinion polls, which outlined a clear victory for UK PM Theresa May. However, these opinion polls were quickly forgotten by the market as the market shifted its focus on more immediate geopolitical events which could have an influence on the cable pair.

The opinion polls, although somewhat positive at first, had no lasting effect on the price action of the sterling pound and as such, the GBP/USD pair corrected its gains and is now back at 1.2900 points in spite of the dollar weakness as the pound had to deal with some problems of its own. The GBP is now under heavy downward pressure as the snap elections are set to commence this coming Thursday and since the majority of opinion polls are still giving off an ambiguous stance, the market is in turn unsure of what steps it should take next and this has put additional pressure on the sterling pound. In addition, the dollar is also relatively weak as of late since it will be reacting to Comey’s testimony set tomorrow, which falls on the same day as the snap elections. This is one of the reasons why traders refuse to make any clear moves on the GBP/USD pair and instead shift to a wait and watch mode until such time that all activity subsides and be safe enough for them to resume trading.

For today’s session, the US economy will be releasing its oil inventory data while there are no major releases coming from the UK economy. The GBP/USD pair is then expected to range and consolidate throughout today’s session as it preps for tomorrow’s polls.


GBP/USD Fundamental Analysis: June 7, 2017

The GBP/USD pair experienced a major correction during yesterday’s session as its previous gains were due to a reaction on the most recent opinion polls, which outlined a clear victory for UK PM Theresa May. However, these opinion polls were quickly forgotten by the market as the market shifted its focus on more immediate geopolitical events which could have an influence on the cable pair.

The opinion polls, although somewhat positive at first, had no lasting effect on the price action of the sterling pound and as such, the GBP/USD pair corrected its gains and is now back at 1.2900 points in spite of the dollar weakness as the pound had to deal with some problems of its own. The GBP is now under heavy downward pressure as the snap elections are set to commence this coming Thursday and since the majority of opinion polls are still giving off an ambiguous stance, the market is in turn unsure of what steps it should take next and this has put additional pressure on the sterling pound. In addition, the dollar is also relatively weak as of late since it will be reacting to Comey’s testimony set tomorrow, which falls on the same day as the snap elections. This is one of the reasons why traders refuse to make any clear moves on the GBP/USD pair and instead shift to a wait and watch mode until such time that all activity subsides and be safe enough for them to resume trading.

For today’s session, the US economy will be releasing its oil inventory data while there are no major releases coming from the UK economy. The GBP/USD pair is then expected to range and consolidate throughout today’s session as it preps for tomorrow’s polls.
 
USD/CAD Fundamental Analysis: June 7, 2017

The USD/CAD pair exhibited a ranging and consolidating price action throughout the duration of yesterday’s session as the market shifted into a monitoring mode as preparation for Super Thursday. The majority of market players are refusing to take any unprecedented positions in the market and this is why a choppy price action is being seen for the USD/CAD pair as well as for other major currency pairs.

The only positive note for the currency pair yesterday was the steady strengthening of the value of the CAD, which had bearish undertones as a result of a surge in oil prices and was even able to keep itself at its higher ranges. This rise in oil prices was mostly due to the recent standoff in the oil-rich Middle East which might potentially endanger oil production and has subsequently affected oil prices. This then contributed to an increase in the value of the CAD and has caused the USD/CAD pair to trade lower within the 1.3450 range. The currency pair is expected to continue trading within a very limited range, with sells situated at 1.3500 points and buys located at 1.3400 points. If the currency pair manages to make a break and veer away from its current price action, then this might induce some major movements in the pair and the market will be waiting to see what happens in the next few days.

For today’s session, the US will be releasing its oil inventory data while there are no major releases from the Canadian economy. The USD/CAD pair is most likely to undergo a limited consolidation for today’s session.
 
NZD/USD Technical Analysis: June 7, 2017

The NZDUSD rallied amid trades on Tuesday and broke the level on top of 0.7150 smoothly. The Kiwi dollar continued to search for buyers on dips and tend to handle some pullback as an opportunity to increase rate.

The market tried to touch the region above 0.72, en route 0.75 afterwards. As shown in the chart, the area around 0.71 handle provides a lot of support and regarded to be the floor of the market in the near-term uptrend. The commodity space continues to weigh on the market and the NZD seems to be the “barometer” towards the overall sentiment of futures trading. Watch closely for the commodity because it could possibly show the way.

It could be a good move to buy dips moving forward because it suits the current status of the New Zealand currency. Selling remains impossible as far as we breach under the 0.71 mark. A successful break down prompts the market to reach the range below 0.7050 which is very supportive previously, along with the 0.70 region. In any case, the market remains to be volatile, however, the moving averages came in reliable, particularly the 48-hour MA shown in green color, hence it should offer further buying opportunities.

The volatility driven market persists, but the late impulsivity indicates that buyers begin to develop more confident as it moves ahead. Moreover, the dips will provide value which is an advantage to market participants.
 
GBP/USD Technical Analysis: June 7, 2017

The GBPUSD had attempted to rally yesterday, however, retreated to the level 1.2950 to return underneath the 1.29 handle. In the past few sessions, the market appeared to have a little bit of overall bullish pressure, waiting for the results of UK elections expected tomorrow. In this case, the market will probably experience choppiness and unprepared to conduct a significant move yet. Short-term volatility is predicted along with some choppy spots but a general ascending momentum should also be anticipated. It does not mean that a pull cannot be accomplished, it only implies that longer-term charts and the range below 1.2750 should offer massive support that will surely lure the attention of the majority of market participants.

After the session on Friday, the long-term outlook for the pair shall be available as it could be very difficult from this moment and the next.

Buying the dips remains to be the best option for the Cable but the dips showed to be somewhat steep. You should have got small positions as of now and after the election results in order to acquire lesser damage that might suddenly arise.

Markets have lots of speculation regarding the election decision, therefore a cool level head should be maintained as this is crucial for the following sessions.

In the longer-term, the pair might break the 1.3050 mark as it allows the market move higher freely, or maybe reach its long-term target found at the region 1.3450.
 
EUR/USD Technical Analysis: June 7, 2017

The EURUSD aimed to make a rally during Tuesday session but look for a strong resistance around 1.1280 region to make a reversal. Then, rebounded through the 1.1240 mark.

Meanwhile, the market remains to be bullish and attempted to front run the monetary policy statement of the European Central Bank.

The ability to break out in the upside enable the market to move towards the area on top of 1.13. The 1.15 range is the top of the latest consolidation seen in the EUR/USD for the past years.

Moreover, the market might experience difficulty in breaking above the mentioned range, however, series of attempt were made to get through the area and identify its capacity to hold on.

Buying in the dips resumes progressing forward despite anticipated noise.

As the Britain will leave the European Union, there is a chance that some statements will weigh against Euro’s value. Either way, the interest rate hikes from the United States may catch more attention.

A breakout to the upside is possible while the 1.12 market must be the “floor” in this market.
 
USD/CAD Technical Analysis: June 7, 2017

The U.S. dollar against the Canadian dollar declined in the early Tuesday session. Although, there is a sufficient support found at 1.3450 level to recover. Later on, the resistance level was found at 1.3490 and move to and fro within the trading range. This is already expected as the market waits for the release of Crude oil inventories later this day. This has a direct influence on USD/CAD pair.

The oil market has a big influence with this pair which will mirror the movement of oil price fluctuations. It seems that the crude oil market will persist with a bearish tone for long-term. Later on, it is anticipated for this pair to surge higher but will most likely result to extreme choppiness in the market. Overall, the trend is predicted to be bullish for long-term positions.

The 1.35 level is becoming a significant level and a break over this would move the psychological level towards the 1.36 mark which is also much more relevant for long-term traders. It may be best to put on hold shorting this pair until the price breaks at 1.3400 region below. This would indicate a bearish tone for the market.

There is a lot of noise found in the pair because of the OPEC production cut and concern regarding the Gulf states particularly between Qatar and Saudi Arabia divisive issues. These contribute to the bearish tone on crude oil that opens a chance for a rally intermittently.
 
USD/JPY Technical Analysis: June 7, 2017

The U.S. dollar was behind of the Japanese yen during the Tuesday session. The USD/JPY pair broke lower than the 110 region which makes weaker to further decline. On the other hand, the 110 mark is being resistive. A move lower towards the 108/ region is the next target because of 61.8% Fibonacci retracement level and a whole number that offers significant level.

In the current condition of the market, it is better to sell this pair, especially if the 110 level and below is sustained. Also, market should be careful of volatility with the presence of bearish pressure as the U.S. dollar depreciates

More traders could play on the safe side with the ongoing tension between Saudi Arabia and Qatar. There is a somehow a pressure underneath and entails a “risk off” in trading. A move higher than the 110.50 level would counter the negativity in the market that would push the trend to go higher.

Overall, traders should expect high volatility. It may be difficult to bring the price higher with the strong resistance level while the 108 region is a significant level that traders cannot ignore following a rollover during the Tuesday session. If the price breaks lower than 108 region, then this would propel the price downhill in the next trading sessions.
 
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