A daily chart of NZD/USD pair is shown above. The pair’s price action is similar to the one of GBP/USD’s. Despite the upside bias of coming from an uptrend, the pair broke down from a symmetrical triangle formation. It then found support at the psychological 0.6200 mark a couple of days later. It bounced right up right after it hit the mentioned support. Currently, it looks like the price is encountering some resistance at the 0.6400 level. If the pair manages to close above this area then it might go all the way up to 0.6500. On the other hand, if the pair fails to break this mark then it can head down back to 0.6300.
What a break! The USD/JPY pair pierced above the top of the descending trendline drawn connecting the highs on the 1-hour chart. From then on, it went all the way up to 93.77 before forming that long red candle. Is the rally losing steam or is it merely refueling? The pair could retrace until the 50% or 38.2% Fibonacci levels, which seem to coincide with an area of consolidation. Also, the 38.2% retracement level lines up with the psychologically significant 93.00 mark. If the pair comes crashing down below these levels, then it could resume its downtrend all the way until previous support at 91.75.
The four-hour chart of EURUSD is showing some mixed signals. The pair has largely been respecting the descending channel. We saw this yesterday when buyers tested the downtrend line somewhere around the psychological resistance at 1.4000. The advance wasn’t strong enough to pierce through though as sellers took the pair all the way back to 1.3900. It seems that EURUSD is in a very delicate state now as price consolidates at the tip of a symmetrical triangle. Will we see price break topside resistance and rally all the way to 1.4100 or will we see a break in the ascending trend line support and retest solid support at 1.3800?