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.