Razvan Mihai, CFTe
Forex Rally
EURUSD - Wandering around 1.0800
Bears proved to be once again stronger than bulls. The price of EURUSD bounced third time from the trend lined (marked with 2 on my chart), but it did not manage to break above 1.1000. The resistance proved to be stronger than buyers expected.The price dropped below 1.0900 and only found support at 1.0800.
Currently EURUSD is wandering around this support level. 1.0800 was tested before, but it still is strong enough. A break and close below this support, on a 4 hour chart would signal adrop move towards 1.0700. On the other hand a break and close above 1.0860 would be a strong bullish signal. An up move could send the price back towards 1.1000.
USDJPY – Bullish move confirmed
For the past 2 weeks I was highlighting the positive divergence drawn on the 14 periods RSI. The signal became a very strong last week, when the price hit the key level support and the divergence got even more significant. USDJPY jumped more than 200 pips in the second part of last week, hitting the resistance from 118.60.
I am expecting the resistance to be strong enough to reject the price. If the price will break below 118.00 I am expecting it to continue the down move towards 117.00 or even back to the key level support from 116.16.
NZDUSD – Rising Wedge
I was expecting NZDUSD to continue the fall after a close below 0.63833, but it did not happen. After the close of a four hour candle below this support level the NZD started a strong comeback and managed to rally all the way above 0.6500.
The up move has drawn a Rising Wedge. This price pattern usually shows a continuation of the downtrend. If the lower line of the Wedge will be broken, I am expecting for the price to aim for the support level mentioned earlier. On the other hand, if the NZD will continue to gain against the greenback, I will be expecting for the up move to find a resistance at 0.6600
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