Razvan Mihai, CFTe
Forex Rally
EURUSD – Trying to comeback
The EURUSD managed to break the support area from 1.1000 and dropped below the main trend line of the uptrend. The fall has stopped at 1.0830, where it found a local support. The bounce brought the price back above 1.1000, but it was not enough to continue the rally. Currently bulls are trying to push against the resistance area.
A break above 1.1055 would be a strong buying signal because this would signal a comeback of the price in the main uptrend channel. A fail to break above the latest high and 1.1055, could signal another drop back to the previous lows from 1.0830.
USDJPY – In a sideways move
Two weeks ago I was expecting the price of USDJPY to move sideways without proper fundamental incentives. Which actually happened. After another bounce from 111.00, the price moved towards 115.00 which did not reach until today.
A break below the local support from 113.18 would signal a drop back towards the main support from 111.00. On the other hand, a break above 115.00 resistance, would signal a possible rally towards 116.00, or even higher towards 117.00.
NZDUSD – On its way to 0.6900.
The price of kiwi dollar has broken twice the resistance from 0.6746. First time was a false break, which was followed by a plunge back to the key level support from 0.6558, while the second one was a strong break which triggered a rally stopped only at 0.6820.
Currently the price retested 0.6746 as support. I am expected a bounce to start and trigger another rally which, this time, would get the price above 0.6850, targeting 0.6900. A strong break below 0.6700 would infirm my current theory.
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