OctaFX | OctaFX Forex Broker
Open trading account

Forex: NZD/USD, watch for a downside breakout - 2ndSkies

FXstreet.com (Barcelona) - NZD/USD appears to be setting the stage for an attempt to break into lower quotes, as recent price activity suggests. The pair has been moving in a non-volatile downward bias, with a price squeeze which retesting for fourth time 0.8375, an area which continues to see steady bids off 0.8360/75 demand as per the drop-base-rally from last April 4.

According to Chris Capre, founder at 2ndSkies: "For about a week now, the Kiwi has been forming a price action squeeze pattern, continually being hemmed in by the 20ema carry, thus limiting the upside. Notice in the 4hr chart how each upside move gets continually sold off printing LH’s (lower highs). The downside line in the sand comes in about .8375, so watch for a breakout setup, or breakout pullback should the level collapse which I suspect it will any day now."

"Only a sustained close above the 20ema will give bulls some chance at taking control of the short term price action" Chris adds.

Forex: EUR/JPY consolidates around 129.00 support, Eur PMI on tap

The EUR/JPY is trading down 44 pips at 129.10. Earlier in the session the pair traded just below the 129.00 level, but again found firm support and is attempting to recover some losses. It appears the HSBC China PMI (50.5 actual vs. 51.4 estimate) data released earlier in the session has caused some un-winding of Yen carry trades as they are all lower across the board. The economic calendar out of Europe will also be in focus with both German PMI (7:28 GMT) and European PMI (7:58 GMT) releases due out.
Read more Previous

Forex Flash: USD remains our currency of choice - JPMorgan

USD remains JPMorgan's currency of choice if it comes to safe havens, comments John Normand, Global FX Strategy at the bank.
Read more Next
Start livechat