Weekly Overview on Majors' Price Action

EURUSD - Breaking the Lows

I was expecting last week for the EURUSD to be a bit lazier in the first part of the week. But it surprised me with a strong down move which started on the 4th. After breaking 1.0800 support, the drop continued towards the next round number level, 1.0700, where it found a good support. The price rallied back towards 1.0900 in the second part of the week.

Today EURUSD is trading in a range of up to 100 pips around 1.0900. A good resistance level remains at 1.0993. A break above this one would signal a continuation of the up move towards the key resistance from 1.1055. A break below 1.0800 would again signal a fall to 1.0700 and maybe towards new lows.

USDJPY - Bullish Signal on the down trend

The US dollar continued to lose against the Japanese yen last week. The price did not reach 120.00 to retest. It broke below 118.63 and headed towards the next key support from 116.16, but did not touch it. 

The main trend of this currency pair is still downward. But on the 14 periods RSI a positive divergence can be observed. The price action has drawn lower lows while the RSI has drawn higher lows. This in most of the cases is a strong bullish signal. In my opinion a break and close on a 4 hour chart above the descending trend line would confirm the bullish signal. Until then I am expecting the price to continue its down move towards the key support.

NZDUSD - Broke the Trend

NZDUSD broke the trend line early last week and from that point continued to drop all the way to 0.6509. The down move has respected a pretty tight down the channel. 

The bias remains negative for this pair. A drop below the current local support from the round level 0.6500 could signal that the bears are still in power. In this situation, I am expecting for the price to continue down all the way to 0.6430 or even 0.6500. On the other hand a break above the trend line could signal an up move back to 0.6600 or even higher towards 0.6650.