Resistance on the Kiwi

The NZD/USD had been falling from the 0.7400 zone to the 0.6900 area from where it retraces to the upside, as shown on the daily chart. The correction takes the price of the NZD/USD to the 55 day EMA (purple line) at the 0.7045 level where it finds a resistance. The pair consolidates below the 55 day EMA and the 0.7000 level. It seems like the bullish pressure is accumulating at the 55 day EMA and a breakout of that level could take the NZD/USD to the 200 day EMA (blue line) at the 0.7125 level. Above the 200 day EMA the pair has no more resistances until the 0.7300 level. In case of a bearish breakdown, below the 0.7000 level the pair could drop to the 0.6900 level or even the 0.6800 level.

Webinars: Let's Talk Candlesticks

One of the most commonly used chart in technical analysis is the candlestick chart. The candlesticks provide us with more complete information about the market´s behavior. For instance, a long shadow with a small real body may indicate high volatility of the underlying asset with indecision. To better understand and make use of the candlesticks pattern successfully, we invite you to the next Webinar by ActivTrades on June 12^th. The event will be conducted by professional trading expert, Martin Walker. You may attend the event online for free from 7pm to 8pm, London time. For more information and to register for the Webinar, please visit the following link:

https://www.activtrades.com/en/webinars

Gold continues consolidating

The price of gold is still consolidating as shown on the daily chart between the 1281 as support and the 1304 as resistance. At the 1304 level we can find the 200 day EMA, which has been acting as a good resistance. Even though the price has been consolidating, gold has been dropping from the 1365 level and the bearish trend may continue according to the 55 day EMA which is pointing to the downside. In case the 55 day EMA crosses below the 200 day EMA, we could have a death cross pattern which has bearish implications in the mid-term. To the downside, the 1281 level may act as support, but the 1273 level could act as a better support due to the fact that at that zone we can find the 200 week EMA. Above the 1304, in case of a bullish breakout, the next resistance could be the 1326 level.

Interesting pullback on the GBP/JPY

On the daily chart of the GBP/JPY we can see that the pair found a good support zone around the 147.00 level since March to the middle of May when the price broke below that level and falls to the 145.00 zone to drop to the 143.00 area. From the 143.00 zone, the price of the GBP/JPY starts pulling back up and reaches the 147.00 level, which could act as resistance. Since the 147.00 zone acted as support in the past, now it may act as resistance. In case of a bearish bounce from the 147.00 level, the GBP/JPY may find some support at the 145.00 level or the 143.00 level. Above the 147.00 level, its next resistance zone could be around the 148.80 level where we can find the 200 day exponential moving average.

The GBP/USD is boxed

The GBP/USD is boxed between the 1.3300 level and the 1.3400 level as shown on the daily chart. The bearish trend on the GBP/USD has been kept from the high at the 1.4300 zone, but since it got to the 1.3200 level, the pair has been correcting to the upside. From the current congestion area the GBP/USD may head in any direction, but the death cross at the 1.3600 level is indicating a possible continuation of the bearish trend. The death cross is formed when the 55 day EMA (purple line) crosses below the 200 day EMA (blue line). The pattern is showing us that the pair may continue lower in the mid-term. In case of a bearish bounce, the 1.3200 level may act as support. To the upside, the 1.3500 level and the 1.3600 level may act as resistance.

The EUR/JPY in a possible bearish bounce

The EUR/JPY falls to the 125.00 zone from where it bounces to the upside and reaches a resistance zone around the 127.87 level where we can find the 200 week EMA. Above the 200 Week EMA, its next resistance could be the 130.19 zone where we can find the 55 Week EMA. However, the 55 day EMA keeps retreating from the 200 day EMA as shown on the daily chart and that is a sign that the bearish trend is still strong, regardless of the current bullish pullback. On the weekly chart the pair has formed a hammer pattern, which is a bullish Japanese candlestick pattern. Therefore, the price may continue higher. A most important resistance for the EUR/JPY on the daily chart is the highs around the 133.00 zone. To the downside, in case of a continuation of its bearish trend, the low at the 125.00 level may act as support.

Will the USD/JPY keep falling?

The USD/JPY rallied since the middle of March from the 104.63 level to the 111.39 level. From the 111.39 level, the price of the USD/JPY starts retracing to the downside and breaks below the 200 day EMA at the 109.41 level and below the 55 day EMA to reach a low at the 108.11 level. The bullish trend is still in place on the daily chart, but if the pair keeps falling, it may drop to the 106.62 or to the 104.63 level. On the other hand, since the bullish trend is still in place, the USD/JPY may go back up to the 200 day EMA, which may act as resistance. However, the most important resistance on the USD/JPY is at the peak of the 111.39 level, which it should break to the upside in order to go back to its bullish trend.