Razvan Mihai, CFTe
Forex Rally
EURUSD - Continuing the sideways
From the beginning of this year the price of EURUSD has been trading between two strong boundaries. The resistance is found at 1.0993, while the support is found at 1.0796. Nothing up until today manage to get the price out of this range.
Giving the current price action, a strong signal for future movement I would consider to be a break out of this sideways move. A break below the support would signal a drop back towards 1.0700, while a break above 1.0993 could signal a rally to wards 1.1055.
USDJPY - Pennant
Bouncing off the key support level was signaled by the positive divergence drawn on the 14 periods RSI. The price of USDJPY continues to rally based on the fundamentals. The up move stopped at 121.66 for the moment and the corrective moment seems to be a Pennant.
The Pennant is a continuation price pattern. Usually these kind of patterns, signals the continuation of the previous move. In this case a break above 121.66 would be considered a strong positive signal. While a drop below 120.56 would signal a drop back towards 119.50.
NZDUSD - Playing Boring
The price of NZDUSD has broken the inferior line of the Rising Wedge. But the drop did not even manage to hit the support from 0.6383. The price action of this pair has drawn a range between the mentioned support and the resistance from 0.6545.
In the current conditions, a break below the local support from 0.6424 would signal a drop back towards 0.6383, while a break above the resistance would signal a rally towards the key resistance level of 0.6600
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