EUR/USD – Possible bullish bounce at the 1.0700 level

The Euro keeps weakening versus the Dollar and has reached levels that it has not visited since 12 years ago. Investors are now expectant of the moment in which the pair reaches parity, which is when it reaches the 1.0000 level. However, we know that the markets never go up or down in a straight line and they show some pullbacks on the way. That is why it is possible to see a bounce to the upside from the 1.0700 level on the EUR/USD. Such a bounce could take the price back up to the 1.0800 level, but since the bearish trend is still in place, that zone of the 1.0800 could become a good resistance on the pair and the price may try to go back down from that area.

Possible visit to the 0.7300 on the Kiwi

The New Zealand Dollar versus the US Dollar is very close to touching the psychological round number of 0.7300 to the downside. Let us pay close attention to this visit, because we could get an opportunity to enter the market here. On the first touch it is possible to see an initial bounce to the upside, but if we see a breakdown of the 0.7300 level, then we could wait for confirmation of such breakdown and then the pullback to the same level for a possible short entry. In case of the price bouncing to the upside, let’s pay attention to a visit to the 0.7400 level, which could act as resistance and the price may stall there.

NFP data

The Non-Farm Payrolls data out of the US came out better than expected, causing the Dollar to strengthen versus its major counterparts. The market was expecting a reading of 240,000 new jobs for the month of February, but the number came out at 295,000 new jobs, causing the greenback to rise and supporting the FED on its plans to raise its interest rates by the middle of this year. The Euro versus the Dollar has weaken to levels not seen since September 2003. It is possible to see further losses on the Euro, especially now that the European Central Bank is expected to kick start its bill printing press to create more Euros in circulation in the Eurozone.

Bearish channel on the EUR/AUD with EMA’s cross under

The EUR/AUD has continued making lower lows as we can see on the 4 hour chart and it has kept doing the breakout and pullback pattern on its way down. What we can see is that every time the price makes a lower low, price tends to pull back to the previous low, which usually becomes resistance. Therefore, it is possible to see a continuation to the down side, especially now that the 55 period exponential moving average (purple line) has crossed below the 200 period exponential moving average, indicating a possible continuation of the downtrend.

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The USD/CAD has stayed within a descending triangle pattern

The USD/CAD has found a good resistance at the 1.2700 level, but it has not been able to break below the 1.2400 level either. On the daily chart we can see that the price has created some type of descending triangle, even though the trend coming into the formation should be bearish. However, we can see a very well formed pattern with a good support at the 1.2400 level. If a downwards breakout happens, then we may get a very good opportunity to go short, especially if we do get a pullback to the 1.2400 level after the breakdown.

Possible bullish bounce on the Kiwi

The New Zealand Dollar versus the US Dollar has dropped from the 0.7600 level to the 0.7500 level and it looks like it wants to stall at that zone. It is possible to see a bounce to the upside, but a breakout to the downside is also probable. However, at the moment the price seems to be losing its bearish momentum around the 0.7500 level. If we do see a breakdown of the 0.7500 level, then we could wait for the pullback for a possible short entry.