Hot Topics:
- Majors against US Dollar shows exhaustion signals.
- European indices close the mixed trading session.
- GBPNZD arrives at our PRZ aided by the two children policy announced in China.
- EURAUD reaches the second bearish long-term target.
Majors against US Dollar shows exhaustion signals.
Italy is adding volatility to the Eurozone due to the agreement between Movement Five Stars, and Lega Party for the new Prime Minister. EURUSD bounced from 1.1717 where the price created a bullish divergence. In today’s session, RSI broke its bearish trendline upward, but to complete the start of a new cycle, it is necessary that the price action confirms the new sequence. Invalidation level for this latest move is 1.17.
The GBPUSD fell to the Potential Reversal Zone as we expected last week. Currently, the price is moving narrowly, but we anticipate that the price would make a new lower low as a false breakdown. We still maintain the bearish bias while the RSI does not break above the invalidation level at 1.36.
The USDCHF pair leads the move against the US Dollar, the price made a throwback to parity and had been rejected downward. Our projection for the Swiss currency is that the price could reach 0.99203 as first support, second support is 0.98097. Invalidation level is at 1.00561.
European indices close the mixed trading session.
The FTSE 100 soars to the highest level reaching 7,868.1 in the last trading hour. The market could be placing its eyes on the 8,000 points as the psychological resistance to be struck during the next days. The new invalidation level is placed at 7,753.3 pts.
On the opposite side, the DAX 30 closed the trading session bearish, consolidating the ascending wedge pattern above the last price congestion zone. The increasing risk of Italy’s exit from the Eurozone is knocking the European markets. On the other hand, the BUBA’s chief Jens Weidman has announced that he is open to succeed Mario Draghi as president of the European Central Bank. The new invalidation level is moved up at 12,918.3 pts.
GBPNZD arrives at our PRZ aided by the two children policy announced in China.
GBPNZD continues moving downward as forecast in the past week, aided by the “two children” policy announced in China. The announcement is raising the confidence of the New Zealand dairy producers. After this bearish accelerated move, we expect a pause in the downtrend. Invalidation level is at 1.96636.
EURAUD reaches the second bearish long-term target.
EURAUD continues moving downward in the second long-term target at 1.5548. RSI shows signals of the climatic move; this means that the price acceleration in this bearish move is close to initiating a consolidation process. Invalidation level is at 1.5727.
