• Add

Technical Update: EURUSD, USDJPY and NZDUSD



Inability to clear the 1.1460-70 horizontal area, comprised of highs marked in May and September 2015 and 61.8% FE of March up-move, dragged the EURUSD towards breaking the short-term ascending trend-channel; however, 38.2% Fibonacci Retracement of the pair's March – August 2015 upside, triggered its bounce. From the present levels, 1.1350-55 offers immediate resistance to the pair, clearing which 1.1410 might act as obstacle during its successive move to 1.1460-70 region. If the pair manages to clear the 1.1470 on a closing basis, the 1.1500 and the 1.1560 are likely intermediate resistances that it needs to go through prior to aiming the break above 1.1700 round figure mark. Alternatively, pair's reversal from the present levels can witness 1.1280 and the 38.2% Fibo, at 1.1230, as nearby supports, which if broken may drag the prices further down to 50-day SMA level of 1.1185. Should the pair maintains the south-run below 1.1185, it can dip to 1.1140 and the 1.1060-50 support-zone.


Following its bounce from 107.80, the USDJPY managed to clear immediate downward slanting trend-line resistance, indicating further up-move towards 109.80 and the 110.00 adjacent resistances. Given the pair's successful break above 110.00, it can quickly rise to 61.8% Fibonacci Retracement of its current month downside, near 110.75, which if broken can further extend its upward trajectory towards 111.50, 111.80 and the 112.10 levels. Meanwhile, pair's U-turn might test 109.00 quick support, breaking which 23.6% Fibo, near 108.75, and the 108.30, could provide follow-on rests to it. Further, break of 108.30 can again fetch the prices to 107.80 and then to the month's low of 107.60 while extended decline below 107.60 makes it vulnerable enough to test 61.8% FE of the mentioned downside, at 106.60 while 107.00 round figure mark being a buffer level to clear.


Even if the NZDUSD's recovery from 0.6575 propelled it towards ten month highs, resistance-line of an ascending trend-channel, presently at 0.7050, might hold its further advance captive and can trigger a pullback to 0.6930 support. If the pair drops below 0.6930 nearby level, an upward slanting trend-line support, around 0.6855-60, becomes important for the pair traders to watch, clearing which 0.6780 and the 0.6730 can become intermediate support for it to clear prior to dragging the prices down to 0.6700 – 0.6695 area, including support-line of channel and 100-day SMA. Given the pair's sustained closing below 0.6695, it becomes vulnerable enough to plunge towards 0.6580-75 support-zone, comprising the 23.6% Fibo level. On the upside, a closing break above 0.7050 might have to clear the 0.7080 mark prior to aiming the 0.7200 area. Moreover, pair's capacity to surpass 0.7200 enables it to aim for 0.7325-30 and the 0.7400 resistances during its further up-move.

Follow me on twitter to discuss latest markets events @Fx_Anil

Source: https://www.mtrading.com/analytics/technical-analysis/technical-update-eurusd-usdjpy-and-nzdusd
!"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|} !"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}