The Kiwi remains range-bound

The New Zealand Dollar versus the US Dollar has stayed in a range between the 0.6500 as support and the 55 day exponential moving average (purple line), around the 0.6577 as resistance. Today was an up day for the pair but it still couldn’t break above the 55 day EMA, as shown on the daily chart. A breakout above the 55 day EMA could make the price gain some bullish momentum and its next resistance could be the 200 day EMA (blue line), around the 0.6800 level. To the downside, its first support below the 0.6500 level could be the 0.6428 level. Below the low at the 0.6428, its next support could be the 0.6236 level.

Gasoline: Consolidation on the weekly chart

The January gasoline contract on the weekly chart has been going sideways, coinciding with the current consolidation on crude oil. If during the next month the price breaks to the upside above the resistance around the 1.5040 level, then gasoline may try to go and visit its 55 week exponential moving average (purple line), around the 1.7461 level, which could act as its next resistance. Regardless of the current consolidation, the price keeps a slight bearish slope, therefore it could also try to break below the 1.2021 level. If it does break below the 1.2021 level, then the 1.1000 level may act as its next support.

Pivot Points, The turning levels of Price

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The GBP/JPY breaks below its bullish channel

The Pound versus the Yen was inside a well-formed bullish channel on the daily chart, but during the past two days it has broken below it and below the 200 day exponential moving average (blue line), around the 185.94 level. Even though the price corrects to the upside during today´s session, that could just be a retracement to continue falling. If the price continues falling, then the 184.00 could act as its next support. In case the price breaks above the 200 day exponential moving average, then its next resistance could be the 187.00.

Bullish pullback on corn

The corn contract for December has made a low around the 355.24 level from where it has been pulling back to the upside as seen on the daily chart. The current pullback could provide us with an opportunity to enter short, but the question now is up to what point the price may retrace. The stochastics are close to reaching the over-bought area. If the stochastics reach the over-bought zone at the same time that the price reaches the 200 day exponential moving average around the 379.89 level, we could wait for a bounce from there for a potential short entry. For now, we just have to wait for the price to continue retracing and break above the current 364.00 level.

The Kiwi finds a good resistance on the 55 day EMA

Since Thursday of last week, the NZD/USD reached the 55 day exponential moving average (purple line), around the 0.6582 where it has stalled and bounces back to the downside during today´s session. On the same daily chart we can see that the pair has actually stayed in a bearish channel and it is possible to see the price falling back down. To the downside, the 0.6428 could act as support, but if the price breaks above the upper trendline of the channel, then the 200 day exponential moving average, around the 0.6822 level could act as resistance.

Gold: It consolidates, but keeps its bearish trend

After making a low around the 1063 level, gold stalls its fall during the last two days and it is going sideways as we can see on the daily chart. The 55 day exponential moving average (purple line), around the 1122 level could act as a resistance in case the price retraces to the upside. However, fundamentally there are no reasons yet for gold to rally, unless the Dollar weakens or the risk aversion increases in the markets for any reason. The 1063 level could continue acting as support, but the probability of seeing a breakdown is high.

NZD/USD: Resistance at the 55 day EMA

The 55 day exponential moving average or EMA could act as a good support or resistance zone on some occasions. On the daily chart of the New Zealand Dollar versus the US Dollar we can see that the pair has kept a good bearish trend and it has stayed within a channel. But after the price broke below the 55 day EMA (purple line) and made a low at the 0.6428 level, the pair rallies again to the 55 day EMA where it stalls at the moment. That level of the 0.6582, where the 55 day EMA is located could have the price bounce to the downside. However, the pair may also break above the 55 day EMA and if that happens, then the 200 day EMA (blue line) at the 0.6830 level could act as its next resistance.

Copper at six year lows

Copper continues with its bearish trend, but at the moment it seems like it is finding some support at the 206.62 level. Due to the fact that the bearish trend is still strong, the price of copper could fall towards the 202.00 level, which could act as a temporary support. Likewise, due to the big drop, we could see a bullish pullback and the commodity could try to go and visit the 220.17 zone, which has acted as a support in the past and now it could act as a resistance.

Gasoline continues falling

The gasoline contract for December continues falling and it is currently consolidating just below the 55 period exponential moving average on the one hour chart (purple line), after it made a low for today around the 1.2021. Besides the 55 hour exponential moving average, the 1.2545 level has been acting as a good resistance, but a breakout of that level could cause the price of gasoline to retrace to the upside towards the 200 hour exponential moving average (blue line), around the 1.3018 level. To the downside, the 1.2021 level may continue acting as a support.

The EUR/USD breaks below the 1.0700 level

The Euro versus the Dollar started the session weak after the Paris attacks on Friday and drops below the 1.0700 level as seen on the daily chart. But the attacks on Paris are not the strongest reason of why the Euro has been dropping. In reality, the Euro remains weak, because of the divergence in monetary policies between the European Central Bank and the Federal Reserve. This week’s fundamentals could be key to the future direction of the pair. Tomorrow we have the ZEW economic sentiment out of Germany and the inflation numbers out of the US. If the inflation in the US has risen, then the FED could have another reason to raise interest rates and the EUR/USD could continue falling towards the 1.0600 level.

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Gold seems to be heading lower

Gold has been consolidating during the last few day, as we can see on the daily chart, but today the precious metal has made a lower low, indicating that it remains weak and it could continue falling. Due to the fact that the Dollar and gold have a negative correlation, if the Dollar continues strengthening during this week, gold may reach the support level at the 1070 zone. To the upside, the 1098 level could act as resistance, but if it breaks that level, it may retrace to the 1115 zone.

The Dow Jones keeps its bullish trend

The Dow Jones index seems to be resting for today and the daily candle is forming what it appears to be a “doji” formation. That doji could indicate some exhaustion of the recent rally, but the uptrend is still in place. In case the index breaks to the downside the bullish trendline that we see on the daily chart, it could try to go and visit the 200 day exponential moving average, around the 17280 level, which could act as support. To the upside, the 17909 level could act as resistance, but above that level, the 18078 could also act as resistance.

The Pound keeps its bearish trend

The Pound versus the Dollar retraces above the 1.5100 level, but its bearish trend is still in place. The pair may try to fall to the 1.5000 level, which could act as its next support. To the upside, the 1.5200 level could act as resistance, but we don’t have real strong fundamentals to merit a rally above current levels. The pair has been respecting the round number levels, therefore it pays to be attentive of those zones for possible entry opportunities.

Big rally on the Dollar after the NFP numbers

Today we had the highly anticipated Non-Farm Payrolls number out of the US. The reading of new jobs created for the month on October came out much better than expected, causing the Dollar to rally versus its major peers. It was forecasted a reading of 180K new jobs, but the reading actually came out at 271K new jobs. The unemployment rate fell from 5.1% to 5% and the average hourly wages rose 0.4% when the forecasted was a rise of 0.2%. The numbers clearly came out way better than expected, and actually this has been the best reading since 2009. The Dollar index broke above the 98.39, but if it retraces, that level could act as support. Its next resistance could be the 100.28.

The Russian Ruble stays in a bearish channel

The Dollar versus the Russian Ruble on the daily chart has been consolidating around the 55 period exponential moving average, around the 63.57, but in the longer term we can see that the pair has formed a bearish channel. The price stays within that channel and it could try to head lower. If the price drops from the current levels, then the 200 day exponential moving average, around the 59.07 level could act as support. If the price breaks the upper trendline of the channel, then the pair may change direction, but in order for that to happen the Dollar would have to strengthen with the upcoming US fundamentals.

EUR/JPY: Bearish breakdown of symmetrical triangle

On Monday we identified a symmetrical triangle on the Euro versus the Yen, daily chart. Today we can see that the price has broken below the triangle and the formation has acted as a continuation pattern. At the moment the price has reached the 132.00 level, which could act as a support, but if it breaks that level to the downside, then the bearish momentum may accelerate and it may try to go and reach the 131.00 level. To the upside, the 133.00 could act as resistance, but above that level, the 135.00 could be an even stronger resistance.

Bullish flag on the Kiwi

The “Bullish Flag” is a continuation pattern that forms at the end of an uptrend. The pattern forms when the price consolidates after a bullish run and starts going sideways, but with a slight slope to the downside. On the daily chart of the New Zealand Dollar versus the US Dollar we can see that once the price touched the 200 day exponential moving average (blue line), it started correcting to the downside and creating what we call a bullish flag. Today the price breaks below the 0.6700 level and it is close to touching the 55 day exponential moving average (purple line), which is just above the 0.6600 level. The 55 day EMA may act as a support and the price may try to bounce to the upside from there, but if it breaks that zone to the downside, then the bullish flag would be invalidated and the price may try to go and reach the 0.6500 level. To the upside, the 0.6800 may act as a resistance, but the 200 day EMA may act as a stronger resistance on the Kiwi.

Symmetrical triangle on the EUR/JPY

The Euro versus the Yen on the daily chart has been oscillating between the 133.00 and the 132.00. During that consolidation, the price has formed what it appears to be a “symmetrical triangle”. The Triangle formations usually act as continuation patterns, meaning that the price continues in the direction where it was coming from coming into the formation, but in reality the price may break out in any direction. If the price breaks to the downside, then the 131.00 level could act as support. If the price breaks to the upside, then the 135.00 level could act as resistance.