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.