Possible bearish bounce on the EUR/GBP

The Euro has been strengthening today versus the Pound, but once it got to its 200 period exponential moving average on the 4 hour chart, it stopped there. There are two factors that could make the price bounce to the downside from this zone. First we have the 200 EMA and we also have the 0.7200 round number level in the same zone. However, if there is a breakout to the upside of the area, then the bullish momentum may increase.

The 0.7100 level could be the next support on the Kiwi

The New Zealand Dollar versus the US Dollar, also known as the Kiwi, continues dropping and it looks like the price is trying to reach its next round number support level at the 0.7100. On the daily chart of the NZD/USD we can see that the pair has had a good sustainable downtrend, mostly due to strength in the US Dollar. But the 0.7100 level could act as a good support and price may stall there or try to bounce to the upside. Therefore, we must be attentive to a possible visit to the 0.7100 level on the Kiwi.

Good bullish trend on the GBP/JPY

The Pound versus the Yen has kept a very organized up trend as we can see on the daily chart. The 189.74 has been a good resistance level in the past, and that is why the price is having difficulties breaking above that level. A breakout to the downside of the bullish trend line could give us an opportunity to go long or buy at the 185.00 level if the price drops to that zone, which in the past was a good resistance and it may become a good support. Below the 185.00 level, the 181.00 could be its next important support.

GBP/USD: Bearish breakout of the 200 day EMA

On various occasions we have seen how the 200 period exponential moving average can act as a very good support or resistance zone, especially on the daily chart. On the GBP/USD daily chart we can see that the price has made some very interesting movements around its 200 period EMA. On several occasions the 200 EMA has acted as support or resistance. Today we see that the price has broken below that moving average and if the next daily candle is also bearish, then all we have to do is wait for the pullback to the same 1.5459 zone for a possible short entry.

Few movements for today

Today was a holiday in the United States and a great part of Europe that is why the markets did not move a lot today; however, during this week we have some important fundamental news that could increase the volatility in the markets.

Tomorrow we have durable goods orders out of the US and consumer confidence. For Thursday we have unemployment claims and for Friday US GDP. These numbers are important, because they could give us a clues as to how strong is the US economy and if the Dollar is really going to go back to its bullish longer-term trend.

The Kiwi keeps struggling with the 0.7300 level

The New Zealand Dollar versus the US Dollar has come back to the downside after the inflation data out of the US propelled the greenback versus its major counterparts. On the daily chart of the NZD/USD we can see that during the last three days the pair has found a good support around the 0.7300 level. Due to the various occasions in which the price has visited that 0.7300 level, the probabilities of seeing a breakdown have risen. If a breakdown of the 0.7300 is confirmed, then the bearish momentum may accelerate the price to the 0.7200 level.

EUR/CAD: 400 pip range on the daily chart

The Euro versus the Canadian Dollar has been oscillating between the 1.3400 level and the 1.3800 level, but we can also see on the daily chart that the price has been doing higher lows and higher highs, showing us a small bullish trend. The 1.3800 level has been a good resistance for the pair and a little bit above that level we have the 200 day exponential moving average, which could also act as resistance. To the downside we don’t have clear entries until we get a breakdown of the 1.3400 level.

AUD/USD: Another visit to the 55 day EMA

After the Australian Dollar versus the US Dollar bounced to the downside from the 200 day exponential moving average, it has fallen more than 200 pips and reaches the 55 day exponential moving average. As we can see on the daily chart of the AUD/USD, the price has already visited recently that moving average and it has bounced to the upside; therefore, it is possible to see another bullish bounce from this area. But if the EMA is broken to the downside, then the bearish momentum may accelerate even more.

GBP/USD: Good entry opportunities on the daily chart

The Pound versus the Dollar has been behaving very technical around its 200 day exponential moving average, around the 1.5459 zone. The 200 EMA first acts as resistance and as we can see on the chart, the price bounces to the downside and makes a low around the 1.5085 level. From that point the price goes back and visits the 200 EMA one more time, but this time the odds of seeing a breakout where higher and that’s what happened. Price breaks above the 200 EMA and makes a high around the 1.5816 level to come back down to its 200 EMA. Since support becomes resistance and resistance becomes support, now the 200 EMA could act as support and a bounce to the upside from the current levels is possible.

The USD/SGD is very close to give a breakout signal

The US Dollar versus the Singaporean Dollar has kept a well-sustained bearish trend with some bullish pullbacks that have been broken to the downside systematically, as shown on the daily chart. At the moment the pair is right in the middle of one of those pullbacks and it could give us a sell signal if the lower trendline is broken or a buy signal if the upper trendline is broken. The triangle’s shadow shows an area where if hit by the price, all signals will be ignore, because there was no real breakout, just a consolidation without a real entry signal.

Good bounce from the 1.5800 level on the GBP/USD

The Pound versus the Dollar moved a little bit more than 100 pips during today’s session from the 1.5700 area to the 1.5800 level. The consumer sentiment out of the US came out worse than expected and that is why the US Dollar lost ground versus its main counterparts. The GBP/USD gains a bullish momentum and reaches the 1.5800 level, which it tried to break, but then it came back down. Those round number levels could act very well as support or resistance zones and that is why we should watch out for the visits at those levels.

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The USD/CAD is very close to breaking to the downside

The US Dollar versus the Canadian Dollar has kept a good support around the 200 day exponential moving average and the 1.1940 low level. On the daily chart we can see that the last candles have had lower lows and lower highs. This is an indication that the sellers are taking control of the pair. If a bearish breakout is confirmed, then all we have to do is to wait for the pullback to the 1.1940 level for a possible short entry.

Possible bearish breakout on the USD/CAD

The US Dollar dropped today versus the Canadian Dollar and visits again its 200 day exponential moving average. A little bit below that moving average we can see the most recent low that the pair made around the 1.1940 level. The zone has proven to be a very good support area, but the price has already visited the zone three times. If there is a breakout of the 1.1940 level to the downside and a pullback is completed, then we may be shown with the opportunity to open a short position.

The Kiwi continues falling

Last week we saw how the NZD/USD pulled back to the 0.7500 level, but it couldn’t break that level to the upside. Besides, the 55 EMA (purple line) on the 4 hour chart has crossed below the 200 EMA (blue line), giving us an indication that the bearish trend may continue. The drop has taken the price below the 0.7400 level and it could get to the 0.7300 level. Attention to a possible visit of the 0.7300 level, because the area could become a good support for the pair.

Strong resistance on the Kiwi around the 0.7500 level

The New Zealand Dollar tried to strengthen today versus the US Dollar, but once it got to the 0.7500 level, it stopped there and tried to bounce to the downside. On the 4 hour chart we can see that the pair has been in a well-defined bearish channel and it has not been able to break away from this channel. We can also see that the 55 period EMA (purple line) has crossed below the 200 period EMA (blue line), indicating a possible continuation of the bearish trend. Therefore, we must be attentive during next week and see if there is another visit to the 0.7400 level.

The Pound rallies in the middle of parliamentary elections

Today we had the parliamentary elections in the UK, but the outcome was very hard to predict. By 6 pm NY time, the polls were putting the conservative party ahead in the race. The Pound rallied in the middle of the elections due to the fact that if the conservative party keeps control of the parliament, then monetary policy can be implemented more easily. The GBP/USD visits again its 200 day EMA, around the 1.5443 level. The price tries to stall at that level, but if the bullish momentum persists, then a visit to the 1.5551 level is possible.

Well-sustained bullish trend on the EUR/USD

The bullish correction on the EUR/USD is still in place and we can see on the daily chart that its next important resistance could be the 1.1600 and 1.1700 zone. On the daily chart we can also see that the 200 day exponential moving average is around the 1.1700 level, which makes that zone an even more important resistance area for the pair. On the lower part of the chart we can see the MACD indicator, which is a trend indicator. As long as the MACD line, blue line, is above its signal line, red dotted-line, then the trend is bullish. The bars on the histogram indicate the strength of the trend and we can see that the trend is getting stronger.

New Zealand fundamentals disappoint

The labor market in New Zealand is weakening with less jobs created and a rising unemployment rate. The data sent the NZD/USD dropping like a rock from the 200 period exponential moving average on the 4 hour chart to the 0.7500 level. At the moment the price is trying to break below the 0.7500 level and if the breakout is confirmed, the bearish momentum may speed up and a visit to the 0.7400 is possible.

EUR/JPY: 61.8% or 76.4% Fibo levels, possible resistances

On the 15 minute chart of the Euro versus the Yen, we can see that the pair has been retracing towards the 61.8% Fibonacci level, which could become a good resistance for the price. If the 61.8% level is broken to the upside, then a visit to the 76.4% Fibo is possible, around the 134.48 level. The 76.4% level could become an even more important resistance.

Trend change on the GBP/USD?

The Pound versus the Dollar was in a well-organized uptrend as shown on the daily chart, but since the markets never go up or down in a straight line, a pullback was expected on this pair. It was obvious that the recent retracement on Cable during the last couple of days was caused by weakness on the UK fundamentals. That is why we can see that the price has broken the bullish trend line and has gone below the 1.5200 level to get very close to the 1.5100 level. If the US fundamentals for next week start coming out better than expected, then we could see the pair reaching 1.5000 zone.