Razvan Mihai, CFTe
Forex Rally
EURUSD - Back to support
Last Monday I have seen that the price of EURUSD bounced back down before hitting the 1.1400 resistance, so I was expected for the price to continue the down move towards the key support area situated between 1.1000 and 1.1050. As forecasted, the price fell, but did not reach yet this area.
Considering the fact that the main trend for this year is still up, the down fall might just stop around the 50% retracement (found in the same support area) and bounce back up, aiming for a new higher high. The direction of this trend will be endangered if the price will fall below 1.1000. Otherwise I would consider the down move to be a corrective movement for the uptrend.
USDJPY - Heading towards 111.00
As expected 115.00 acted as a resistance. The price of USDJPY got very close to this level and dropped before hitting the round number level. The current fall brought the price back below 113.00.
Considering the fact the the main trend is down, the expectations are for the down move to continue below the current key level support from 111.00. But without proper incentives the price might just continue to trade sideways between 115.00 and 111.00.
NZDUSD - Continuing the Sideways Move
This is one of the instruments that did not change its price action much during the last 7 days. Last week we were talking about a sideways move between 0.6558 and 0.6746. this week the same levels apply since the price did not move outside this range.
The only new element which I could add to this sideways move would be a local resistance situated at 0.6678.
Last Monday I have seen that the price of EURUSD bounced back down before hitting the 1.1400 resistance, so I was expected for the price to continue the down move towards the key support area situated between 1.1000 and 1.1050. As forecasted, the price fell, but did not reach yet this area.
Considering the fact that the main trend for this year is still up, the down fall might just stop around the 50% retracement (found in the same support area) and bounce back up, aiming for a new higher high. The direction of this trend will be endangered if the price will fall below 1.1000. Otherwise I would consider the down move to be a corrective movement for the uptrend.
USDJPY - Heading towards 111.00
As expected 115.00 acted as a resistance. The price of USDJPY got very close to this level and dropped before hitting the round number level. The current fall brought the price back below 113.00.
Considering the fact the the main trend is down, the expectations are for the down move to continue below the current key level support from 111.00. But without proper incentives the price might just continue to trade sideways between 115.00 and 111.00.
NZDUSD - Continuing the Sideways Move
This is one of the instruments that did not change its price action much during the last 7 days. Last week we were talking about a sideways move between 0.6558 and 0.6746. this week the same levels apply since the price did not move outside this range.
The only new element which I could add to this sideways move would be a local resistance situated at 0.6678.
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