AUD/USD: Rising wedge on the 4 hour chart

The rising wedge is a chart pattern with bearish implications, although its name could confuse some people and make them believe that the pattern is a bullish pattern. Actually, the pattern is a bearish reversal pattern and its confirmation comes when the lower line of the pattern is broken to the downside. On the 4 hour chart of the AUD/USD we can see that if the price breaks down of the pattern, it may drop all the way to the 0.7578 zone; therefore, we must be attentive to that possible breakdown, because we may be presented with an opportunity to go short.

EUR/AUD: Support at the 1.4000 and 61.8% Fibo

The Euro versus the Australian Dollar had a very good bounce from the 200 day exponential moving average (blue line) all the way down to the 1.4000 level and the 61.8% Fibonacci retracement. The confluence of the 1.4000 round number level and the 61.8% Fibo could make this zone an important support area for the pair. Attentive to a possible bounce to the upside from this zone, which could take the price back up to the 1.4200 area where the 55 day EMA (purple line) is situated.

EUR/JPY: Second visit to the 200 EMA, 1 hour chart

The 200 period exponential moving average could act as a good support or resistance zone, especially on the higher time frames. On the one hour chart of the EUR/JPY we can see that on the first visit that the price made to the 200 EMA (blue line), it bounced from that level to the upside, but it couldn’t make a higher high and it has now come back to that same level, around the 130.10. The bounces from the 200 EMA are more reliable on the first visit, on the subsequent visits the chances of seeing a breakout are higher than seeing a bounce. That is why we should be attentive to a possible breakout of that moving average to the downside, but the best thing to do is to patiently wait for confirmation of the breakout in the form of two or three bearish candles, and then the pullback to the same EMA for a possible short entry.

Bearish bounce on the NZD/USD from the 0.7600 level

The US Dollar has recovered some of its losses towards the middle of today’s session and that is why we see that the NZD/USD has come back to the downside and it couldn’t stay above the 0.7600 level. However, when the pair reached the 55 exponential moving average (purple line) on the 4 hour chart, it stalled at the level and it is currently leaving a relatively lower shadow. None the less, a little bit lower we can also see a good support level at the 0.7500 level where the 200 period exponential moving average (blue line) is also crossing. If there is a visit to the 0.7500 level, we could see a bounce to the upside from there.

The EUR/USD finds a good resistance at the 1.1000 level

The Euro versus the Dollar rallies for today after the disappointing Non-Farm Payrolls reading out of the US. The reading was expected at 245 thousand new jobs created for the month of March, but it really came out at 126 thousand new jobs. That is why we saw that the EUR/USD rallied for today, but once it got to the 1.1000 level, it stopped there. On the Daily chart we can see that the 1.1000 zone has been a good resistance area in the past and it looks like it is going to take more than a weak payrolls reading to have the pair break above that zone. Let’s see if there is continuation to the upside during next week or if the price comes back down. 

The EUR/USD stalls at the 1.0900

The Euro versus the Dollar had a good rally today and it accelerated its bullish momentum after breaking above the 1.0800 level. After the pair visited the 1.0900 level, it stalled its rally and it is currently trying to bounce to the down side. None the less, we can see that the bullish momentum is still in place and another visit to the 1.0900 level raises the probabilities of the pair breaking that level to the upside. If the price does break that level of the 1.0900 to the upside, then a visit to the 200 exponential moving average on the 4 hour chart (blue line) is possible, around the 1.0960 level where it could find some resistance before getting to the 1.1000 level. But the Euro will need to get a boost from a weaker than expected Nonfarm Payrolls for tomorrow, because if the reading comes out better than expected, then the Euro will have a difficult time heading higher.

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