“To hold or not to hold?” Looking at the four-hour chart, it seems that the pair managed to touch the 38.2% Fibonacci retracement level before dropping slightly and consolidating at the 1.0800 price region. If buyers manage to win out, I am looking at the 50% Fibonacci retracement level, around 1.0900, as the pair’s next stop. On the flip side, stochastic indicates that overbought conditions so this could mean that buyers are running out of steam. If this is the case and the pair heads south, support could be found at the previous swing low at 1.0700.
Finally! The EURJPY broke the down trend line resistance. The pair however, seems to be consolidating now as it traded within a relatively tight range, considering that the pair is normally pretty volatile. Could we be in for another breakout? With stochastic showing overbought conditions, buyers could be taking a break and we may see sellers try to make a move. If they do, they may run into support at 133.00, which has been a support level in the past and also lines up with the recent uptrend line. If sellers do however, find strength to break past support, they may further support just above 131.00, the previous low. On the other hand, if we see a breakout to the topside, I think buyers may find resistance at former highs around 135.00 and 136.00
Oh no! The NZD/USD broke its uptrend line yesterday. The only thing now that is keeping it afloat is the 0.6950 support. The pair may trade between this mark and 0.7000 in the meantime. However, the pair could find itself down to 0.6900 if it closes below 0.6950. On the other hand, it can reach the psychologically significant 0.7000 if it does not.