Weekly Overview on Majors' Price Action

EURUSD – Continued towards 1.14000

Last Monday the price of EURUSD drew a corrective move which lasted for couple of days and stopped at the key level support from 1.1050. From Wednesday the price rallied 280 pips to reach 1.1340 and the upper line of an up channel.

                Currently the price is drawing another corrective move. This drop seems to be drawing a Flag pattern. This pattern usually signals a continuation of the previous move.In this case a break above the upper line of the Flag would signal another rally. If this bullish breakout will appear I will be expecting the price to rally towards 1.1400. I would also keep my eyes on the area between 1.1217/1.1200. A break below this support area could signal a steeper drop.

USDJPY – And the story continues

                For the past one and a half months the story of USDJPY remained the same. The price moved sideways between the resistance from 114.88 and the support from 111.00.

                Last Friday the dollar dropped against the yen and reached the support one more time. Today bulls are trying to push the price back above the local resistance(112.30).If on a 4 hour chart a candle will close above this level, I will be expecting another rally for the dollar, targeting 114.00 or even higher to wards the key resistance.

NZDUSD – The Comeback was not enough

                Last week I was expecting the kiwi to continue its drop against the US dollar and target the 0.6558 support. And this is exactly what happened in the first part of the week. In the second half, after the FOMC press conference and monetary policy meeting, the dollar lost across the board, so NZDUSD got back above 0.6750 and rallied all the way to the next key resistance from 0.6885.

                The price fell back to the local support from 0.6750. A four hour close below this support could trigger another drop for the kiwi, targeting 0.6625. On the other  hand, a rally above the local resistance from 0.6821 would signal the beginning of another bullish move with a target for the rally at 0.6900.