The GBP/JPY bounces from the 143.00 level

On the daily chart of the GBP/JPY we can see that the pair has been retracing downwards in an orderly fashion since it started dropping from the 148.09 zone. Every time the pair makes a new low, it consolidates for a while to then accelerate its bearish momentum and make a lower low. When the pair broke below the 143.00 level and below the 55 day EMA (purple line), it consolidated during a day to pull back to the 143.00 level and its 55 day EMA to bounce to the downside from there. If the price continues dropping, then it may reach the 200 day EMA (blue line) at the 141.74 level where it may stall. But if the GBP/JPY manages to break below the 200 day EMA, then its closest support is at the 140.00 level followed by the 139.00 level. Below the 139.00 level, the pair practically has the road clear to visit the low at the 135.58 zone from where it started rising. Above the 143.00 level, its most important resistance is at the 145.00 level followed by the 146.00 level and the 147.00 level, but its most relevant resistance is at the high at the 148.09 zone from where it started falling.

The GBP/USD retraces to the 55 day EMA

The GBP/USD plummets during today’s session, pressured to the downside by strength in the US Dollar and the possibility that the upcoming UK general elections could turn very tight for the Conservative Party of the Prime Minister, Theresa May. The GP/USD drops to the 1.2800 zone where we can find the 55 day exponential moving average (purple line) or the 55 day EMA. The confluence of the 1.2800 round number level and the moving average could make this zone a very good support for the GBP/USD. Therefore, it is possible to see a bullish bounce from this area. If the pair bounces to the upside, then it may try to go and visit the 1.2900 level, which could become a resistance. To the downside we can find some levels that could also act as supports in case the pair continues dropping. For instance, the 200 day EMA (blue line), around the 1.2738 level could be its closest support, followed by the 1.2700 level. But a level that could act as a better support is the 1.2600 level, due to the fact that the zone acted as a resistance in the past and now could change its function to a support.

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The NZD/USD is struggling with the 200 day EMA

The New Zealand Dollar versus the US Dollar has had a good bullish trend that has taken it to the 200 day exponential moving average or 200 day EMA, around the 0.7034 level as shown on the daily chart. Usually, the 200 period EMA acts as a good support or resistance zone, especially on the higher timeframes and that is why we can see that the NZD/USD is having difficulty in breaking above that level with sufficient force. The stochastics indicator is showing us that the pair is over-extended to the upside and there is a good probability of seeing a bearish bounce. Therefore, the NZD/USD could bounce to the downside from the 200 day EMA zone. In case of a bearish bounce, its next support level could be the 0.6900 area, followed by the low that it made around the 0.6817 zone. On the other hand, the more time the pair spends around the 200 day EMA, the higher the probabilities of seeing a bullish breakout. If the price breaks to the upside, then the next resistance level could be at the 0.7100 zone.

Possible symmetrical triangle on gold

Gold had a good rally last week while the Dollar was weakening, but once it got to the 200 week exponential moving average zone, it stalls there and the bullish momentum dries down while the price consolidates around the 1256 level. The 200 week EMA zone at the 1256 level coincides with the 50% Fibonacci retracement of the fall that it suffered from the 1295 level to the 1214 level. On the daily chart we can see that the current consolidation has formed what it appears to be a symmetrical triangle. Due to the fact that the trend coming into the formation is bullish, there is a higher probability of seeing a bullish breakout, but the price of gold may actually breakout in any direction. In case of a bullish breakout, the next resistance level on gold is at the 76.4% Fibo around the 1276 level. Above the 1276 level, the next resistance is at the high that it made at the 1295 level from where it started falling. To the downside, in case of a bearish breakdown, the next support level is at the 200 day exponential moving average around the 1238 level. Below the 200 day EMA, its next support is at the low of the 1214 level from where it started retracing to the upside.

Will the USD/CAD continue falling?

The US Dollar has been very weak versus its main counterparts due to all the political risk that has been going on in the United States, but versus the Canadian Dollar it has fallen even more after the recent rally in oil. Oil and the Canadian Dollar have a positive correlation and that is why when crude rallies, the “Looney” (Canadian Dollar) also rallies. On the daily chart of the USD/CAD we can see that the pair has fallen below its 55 day EMA (purple line) and below the 1.3500 level. If the price continues dropping, then it may try to reach the 1.3400 level, but a more important support level is at the 200 day EMA (blue line) at the 1.3348 level. In case the pair goes back up and breaks above the 55 day EMA, then its next resistance zone is at the 1.3600 level, followed by the 1.3700 and finally by the 1.3800 level.

Will the Dollar continue falling?

The Dollar Index is still very weak, the US currency continues under pressure due to the political risk that is being felt in the United States and it may continue falling during next week. On the daily chart of the Dollar Index we can see that after breaking below the 98.00 level, the bearish momentum accelerated and index came to the 97.00 zone where it is trying to stall a little bit its drop. However, it is possible that the Index may break below the 97.00 level to go and visit the 96.00 level, due to the fact that the 55 day moving average (purple line) has a good angle of inclination to the downside and it may cross below the 200 day exponential moving average (blue line) at the 99.14 level. If the 55 day EMA crosses below the 200 day EMA then if will be confirming a “death cross” pattern, which has bearish implications in the midterm. If the price does not break below the 97.00 zone, then it may stay consolidated between the 97.00 and the 98.00 levels, but to see a trend change on the index, the price must break above the 98.00 level.