Razvan Mihai, CFTe
Forex Rally
EURUSD - Correcting
Last week I was expecting for the price of EURUSD to continue the up move towards 1.13. The price hit 1.1300 and continued to rise until it hit the channel rejection line.This area proved to be a strong resistance zone. The EURUSD bounced back down towards 1.1200.
I am expecting this corrective move to continue. The confirmation of the drop would come to a close, with a four hour time frame,below 1.1160. In this situation, EURUSD might retest the support area from 1.1050. On the other hand another break above 1.1300 might trigger a rally towards 1.1400.
USDJPY - The greenback is recovering
USDJPY fell from 121.73 all the way to 111.01. After reaching this low the dollar started gaining and now is heading towards the resistance area of 115.00. The broken trend line is a strong bullish signal.
I am expecting for the up move to continue and enter the area between 115 and 116. Considering this to be a strong resistance, the price might bounce back down towards 113 or even lower towards 111.00. A break above 116.00 would be a strong bullish signal.
NZDUSD - Sideways Move
The price of NZDUSD has started an uptrend in the second part of January. Even though the trend seems to be up,the resistance from 0.6746 managed to keep the price below.
The latest price action shows a sideways move, looking like a triangle. A break above the current resistance level would confirm the uptrend and would signal a continuation of the move towards 0.6900.On the other hand a break below the support of 0.6558, would signal that bears are taking control and price might continue to fall towards 0.6383.
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