It has been a while since we haven’t post something on the major currency pairs, so for today we have prepared a technical analysis on the most frequent traded FX instruments.
Let us start with NZD/USD, which has moved sideways from 24th of June. Now the price has reached the lower boundary but it started drawing a positive divergence. The price action made lower lows, while the 14 RSI has drawn higher lows, signaling this way a possible reversal. Now it would be better to wait for a confirmation. If the price will fall under the local support, 0.7790, the divergence could have given us a false signal and the down move could continue to 0.7677. On the other hand, a breakout above 0.7872 could trigger a rally that might get the price back to 0.8000.
Chart: NZDUSD, H4
The Canadian dollar continued to lose ground after Canada reported a drop of 0.5% in the GDP. USD/CAD has come back around 1.0600 price level, a high touched in July. The price of this pair seems to be in a grey area between 1.04300 and the current highs. If the resistance will be broken then we expect a rally to 1.0700, while a drop under the support might bring the price back to 1.0300.
Chart: USDCAD, Daily
USD/JPY broke up from the Double Bottom pattern and continued to retest 97.00 for several times. In the bigger time frame we can see that the price is consolidating around 98.00 level. On a 4 hours chart we spot a short break of the today’s rally. It is important to wait for a breakout. If the price will break above 99.40, the next good resistance sits at 100.00; on the other hand a drop under 99.15 could be stopped at 98.50.
Chart: USDJPY, H4
During the past two weeks AUD/USD had a down slope, but the pattern that has emerged is actually a reversal pattern. The Falling Wedge was confirmed by a breakout on the 240 minutes chart (4 hours), but the price of this pattern has not yet reached the pattern’s target. It has found a good support at 0.9000 but a close above this level would leave the road open for a rally to 0.91 where the Wedge’s target is set. If the price will fall under 0.8900 then the higher probability is to continue its fall all the way to 0.8800.
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