GBP/NZD At Decision Point

A few days ago this pair was analysed and we mentioned we were waiting for price to show a break out of the range and the 1.74400 support area for a shorting opportunity. Well we are currently still waiting, this is simply being patient for a potential opportunity. We are looking for a break retest of the 1.74400 support area for a shorting opportunity down to the 1.67430 support area.

If this pans out then we could short this market with a tight stop above support turned resistance and go for the 1.67430 area. The Pound is not looking very healthy recently and this could be a reason for market participants to stay away from the currency until more clear perspective is seen.

On the other hand, a rebound from current support would invalidate the shorting opportunity and lay the way for a bull target at 1.8279.

Chart: GBP/NZD D1

EUR/NZD Going South

So over the last week we have seen price in the EUR/NZD show a break of the small ascending trendline. Price on friday printed a shooting star rejection from the trendline, resistance and EMA's. We are now looking for price to break friday's daily low and continue bearish with the first target being the 1.54200 support. A break of the 1.54200 support and we will target the next support.

Major bear target is seen at 1.51400 and if that level is broken, then there would be an open path to the base of the Fibonacci retracement at 1.4580.

On the other hand, bulls might take advantage of the lower prices and buy in the Euro in a week full of economic data. The pair is worth monitoring this week as we have the NFP and Jobs report and that could have a big impact in every market.

EUR/GBP Renewed Momentum

EUR/GBP has been trading to the upside lately. Price today is currently printing a bullish hammer. It might be early to go long the pair yet, it is preferable to monitor the pair to determine how this candle closes for a potential long market entry order up to the 0.91000 resistance area.

Price has recently shown a break out of the long term resistance of 0.888000, this is not quite a retest, however, this price action is currently signaling potential continuation to the upside. If the Euro maintains the momentum we might see the continuation sooner than later.

On the other side, having in mind how much of a rally the Euro posted, it might be considerable to expect a correction to the downside.

Chart: EUR/GBP D1

USD/CAD Consolidates

USD/CAD has been trading to the downside since the beginning of May when price was about 1.38. Ever since, the price has been depreciating as the US dollar went on a losing streak against all its peers marking more than a year lows against the most prominent as the Euro and the Canadian dollar.

As to the USD/CAD pair, the price reached a low of 1.2485 a few days ago and is now trading at 1.25. Main trend continues to be bearish as market participants are shorting the Greenback with no signs of stopping.

What could either speed up or put a hold on the momentum is today's Fed interest rate decision. The Fed is expected to hold the current rate at 1.25% so according to some specialists, this would be a non-event for the long term development of the USD index.

Still, have in mind that high volatility may cause panic in the market that could probably fade away shortly after the event is over.

Chart: USD/CAD H4

XAU/USD At Resistance

Gold has been trading to the upside for the past couple of weeks as price advanced from $1,205 to a high of $1,258. Recently the precious metal reached the resistance level right at its highest high and depreciated slightly since then.

Currently, Gold is trading at $1,252 and by the way is looks it will consolidate at current level until new developments stir the market.

Gold bugs are ready to take it higher should we see bad US reports this week that could hurt the growth of the US dollar. Above $1,260 which is seen as immediate resistance. Next bull goal is the $1,296.50 level which forms triple top. Above that eyes are on $1,340.

Chart: XAU/USD H4

NZD/CAD Breaks Support

NZD/CAD has recently broken the long term ascending trendline to the downside. We have seen price show a retest of this trendline and close rejection off the 20EMA with price now heading back south.

Our first target is the 0.91900 support, and if we see a break of this support then we expect to see price down at the 0.90000 round support level. 0.90000 is the long term bearish goal and it could be achieved if the strength in the Canadian dollar continues.

CAD has seen major improvement among the other currencies and market participants are favoring the advanced movement accordingly.

Should the CAD rally continue, then we might expect further depreciation not only in the NZD/CAD pair but also in USD/CAD and EUR/CAD.

Chart: NZD/CAD D1

GBP/NZD Down

GBP/NZD has been depreciating for the past few days as price has now retreated from its high levels and reached range bound trading. GBP/NZD price has recently been ranging in a box range. Price has shown a break out of the box range to the downside.

It might be too early to take a short position just yet, as it would be best to see a break-retest of the 1.74400 support for a short position. This would confirm a further breakout.

On the other hand, a bullish move to the upside would invalidate the possible downtrend scenario as price would have been brought back into the range 1.76.

No major news are scheduled for today for either sides so technical trading might keep the momentum going in the current direction.

Chart: GBP/NZD D1