EURUSD - Back to 1.0800


Last week the EURUSD had another push to 1.1054, as expected, before dropping below the lower line of the Rising Wedge. The drop stopped at 1.0930 and jumped once more above 1.1000 before breaking below 1.0900 and plunging to 1.0800. The interest rate hike brought in USD buyers, but the move was not as impressive as it was two weeks ago.

For the moment, 1.0800 is a very good support, which managed to hold the price above in the last couple of trading days. The current price actions shows a local support at 1.0846. A drop below this level would signal a continuation of the down move, probably below the key level support. On the other had, a break above 1.0882 could signal a continuation of the short term rally, towards 1.0927.


ForexRally EURUSD.png


USDJPY - Wider Sideways Move


After breaking out of the Falling Wedge, the price of USDJPY has rallied towards the key resistance level, from 123.63. But the rally did not last for long, because on Friday the Japanese Yen won back everything it lost after the rate hike. The drop stopped at an older support from 120.94.

Momentarily the price is trading sideways right above the support. If the bears will start putting pressure again on the price we might see a drop to 120.00. A second scenario, which I find more appropriate, would be a break above the local resistance from 122.24 and a rally towards 123.63.


ForexRally USDJPY.png


USDCHF - Short Term Rally


Another very good example of perfect signal given by a Wedge pattern. After the price of USDCHF broke the upper line of the Falling Wedge, it rallied towards 1.000, but stopped several pips below it, at 0.9993. Here it found a resistance which might be strong enough to hold on against bulls pressure.

A break above this resistance could trigger another rally for the US dollar, which might get the price of this pair back to 1.0136. Though, a drop below the local support from 0.9905 would signal a drop back towards the latest lows from 0.9786.


ForexRally USDCHF. png

NZDUSD - Higher Highs



The kiwi dollar continued to reach new higher highs inside of the ascending channel. Both trend line and rejection line were respected by the latest price action. The price rallied and reached a new higher high close to the key resistance level of 0.6863, but fell fast after that, to the trend line and the local support from 0.6685.

I would say that for the moment the NZDUSD is trading sideways in a 180 pips range. If the price will break above the last high, and especially above the key resistance, we might witness a rally towards the 0.7000. On the other hand a break below the trend line and the local support, confirmed by a close on the 4 hour chart, I will expect the price to continue the down move towards 0.6605.


ForexRally NZDUSD.png

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