Trend reversal on the Euro?

The Euro versus the Dollar has been falling steadily during the last few trading sessions since it started falling from the 1.0900 zone. At the 1.0900 level we can see the formation of a candlestick shooting star pattern, which is confirmed as shown on the daily chart by the two bearish candles following the formation. Therefore, it is possible for the pair to continue falling, maybe towards the 1.0700 level, which could act as support. Once the pair breaks below the 1.0800 level and below the 200 day EMA (blue line), the bearish momentum accelerates and we could see a trend reversal if the MACD line (green line) crosses below its signal line (red line). On the MACD indicator we can also see that the histogram’s bars are getting smaller, which is an indication that the bullish trend is losing its strength. To the upside, if the EUR/USD goes back above the 1.0800 level, then its next resistance level could be the high that it made on the 1.0900 zone. 

Possible double top on gold

On the weekly chart of gold we can see that the price of the precious metal has come back to its 200 week EMA (blue line), around the 1258.23 level. If the price bounces from the level to the downside, then a double top pattern may form, which is a bearish reversal pattern. In order for the double top formation to confirm itself, the price must break below the 1200.00 level, but we can see that the level has acted as a very good support in the past and it may stall the price there once again in case it falls to that zone. Below the 1200.00 level, the next support level could be the 1180.11, followed by the low that it did at the 1122.02 level. To the upside, in case the price breaks above the 1263.51 level, the next resistance could be the 1300.00 level, followed by the 1336.95 level and finally by the high at the 1375.14 level.

The GBP/USD reaches the 1.2600 level

The Pound versus the Dollar has shown a trend reversal to the upside which has been sustained since it started rallying from the 1.2100 zone to the 1.2600 zone. The pair made a consolidation around the 1.2400 zone and then at the 1.2500 zone. From the 1.2500 level, the GBP/USD gains enough bullish momentum to reach the 1.2600 level. In case the pair breaks above the 1.2600 level, it may reach the 1.2700 zone where we can also find the 200 day EMA, blue line. The 1.2700 zone could act as a very good resistance as it did at the beginning of February. In case the pair retraces to the downside, then the first support could be found at the 1.2500 level, followed by the 1.2400 level. For now the fundamental data and the geopolitical events may continue hurting the dollar; therefore, there is a good chance that the pair may continue heading higher.

Technical levels on the NZD/USD

Technical analysis can be applied to any financial instrument that has an opening level, a high, a low, and a close. However, some instrument are more technical than others and react in a predictable way around the technical levels. In the case of the NZD/USD, we can see that it has recently made some reversals around key technical zones. On the daily chart of the Kiwi we can see that the pair started rising from the psychological and round number level of the 0.6900 at the end of last year to reach a high at the 0.7373 to then go back down 100% to the 0.6900 level at the beginning of March. Just when it got to the 0.6900 level, it made a double bottom formation there to change direction to the upside. The bullish momentum accelerates and the NZD/USD reaches the 200 day EMA zona, which is around the 0.7091 level from where it bounces to the downside to reach another round number level at the 0.7000. Once it reached the 0.7000 level during today’s session, it forms a hammer pattern on the daily candles, which is a bullish reversal formation and it is possible for the price to reach the 200 day EMA again for next week. But if the pair breaks below the 0.7000 level, then it may very easily go and visit the 0.6900 level again.

Will the EUR/USD break above its 200 day EMA?

The Euro versus the Dollar has been in a very good bullish trend, which has taken it to the 1.0800 zone where it coincides with the 200 day EMA (blue line), but it is currently trying to stall its trend at that level. On the daily chart we can see that the pair has been having difficulties in trying to break above the 1.0800 level, but at the same time it has neither been able to break above the 200 day EMA. The last time that the EUR/USD broke above the 200 day EMA was on November 9^th of last year and even then the breakout was temporary, because once the pair got to the 1.1300 level, it bounced from that level to the downside. On the current visit that the pair is making to the 200 day EMA, it may try to bounce to the downside and maybe reach the low at the 1.0493 level. To the upside, in case of a bullish breakout, any of the round number levels from the 1.0900 to the 1.1300 may act as resistance.

The USD/JPY breaks below the 200 day EMA

The yen has been rallying versus its main counterparts like the Dollar, the Euro, and the Pound after the risk aversion came back strong into the markets following the huge drops seen on the main stock indices around the world. The pessimism among investors and traders has started to rise over the doubts of Donald Trump’s ability to implement the stimulus package that he has promised. Due to the fact that the Yen is a safe haven instrument, the Japanese currency rallies and on the daily chart of the USD/JPY we can see that the pair has broken below its 200 day EMA (blue line), which is currently around the 111.30 level. If the pair continues falling, its next support could be the 109.00 level. To the upside, the 55 day EMA (purple line) along with the 114.00 level could act as resistance.

Gold takes off again

Gold had been stuck around the 200 day EMA (blue line), which is currently at the 1230 level. But the drop on the Dollar has helped the precious metal gain some strength and takes off to make a high around the 1243 level. We must keep in mind that the Dollar and gold have an inverse correlation and that is why when the Dollar drops, gold rallies. After the double bottom formation that the price of gold made around the 1200 level, the commodity has gone back to its midterm bullish trend, but in order for that trend to stay in place, the price must break above the high that it made at the 1264 level. In case of a pullback, the same 200 day EMA may act as a support.