Euro Breaks Higher Against Aussie, Kiwi Shows Signs Of Reversal
- Euro opened this week on the positive note, and it is very likely to continue correcting higher against the US dollar and the Australian dollar.
- New Zealand dollar opened the week with a minor gap up against the US dollar, but remains under pressure.
- EURUSD trading higher and looks set to challenge the 1.2880 resistance level in the short term.
- GBPUSD managed to gain bids around the 1.6280 support level, which might act as a pivot zone moving ahead.
There was a bearish trend line on the hourly chart of the EURAUD pair, which was breached recently. This particular break was significant, as the pair also cleared the 61.8% fib level of the last drop from the 1.4434 high to 1.4295 low. Currently, it is testing the 76.4% fib level, which if breached would open the doors for a move towards the full 100% extension. The hourly RSI is well above the 50 level, which supports for more gains in the short term. However, if the pair dives from the current levels, then the broken trend line confluence area might act as a support. The hourly MACD is changing the slope which is one more positive sign.
Intraday Support Level – 1.4365
Intraday Resistance Level – 1.4434
- Overall, the bias remains bullish, but there is a chance of a retest of the broken trend line.
- Buying dips might be considered as long as the Euro maintains the momentum.
There were several support levels on the way down for the pair, starting with the broken trend line and followed by the 100 hourly moving average which is currently around the 1.4338 level. Any further losses could lead the pair towards the 200 hourly moving average, which must hold if the pair has to continue trading higher.
The New Zealand dollar somehow managed to find buyers around the 0.8080 support area during this past week against the US dollar. The mentioned area holds a lot of importance, as it represents a major swing support area. The NZDUSD pair bounced on a number of times from the 0.8100-0.8080 support area. This week the pair opened with a minor gap up, which is a positive sign, and suggests that the bulls are here to stay. There is a bullish trend line formed on the hourly chart of the NZDUSD pair, which is likely to act as support moving ahead. There is a chance that the pair might move a bit lower from the current levels to close the gap and retest the highlighted bullish trend line.
Intraday Support Level – 0.8100
Intraday Resistance Level – 0.8170
- One can attempt a small risk buy trade, but with a caution as the trend has not changed as of yet.
- 100 hourly moving average is acting as a hurdle for the pair, which should be broken for more gains.
We might witness mostly range trading moves in the coming session, as there is hardly any major economic release.
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New Zealand dollar traded lower this past week after solid gains against the US dollar, but found support around and important area which means there is a chance of recovery in the near term.
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