US dollar rocketed higher against all major currencies, as pairs such as EURUSD and GBPUSD collapsed.
In the New Zealand, the RBNZ Interest Rate Decision was announced by the Reserve Bank of New Zealand, which caused a lot of action in the New Zealand dollar pairs such as NZDUSD and AUDNZD.
New Zealand Food Price Index representing price changes of food bought by household released by the Statistics New Zealand registered a reading of -0.7% in February 2015, compared to the last gain of 1.3%.
Japanese Business Survey Index (BSI) Large Manufacturing released by the Ministry of Finance registered a reading of 2.4 in the first quarter of 2015, compared to the market expectation of 5.7.
Japanese Securities investment, released by Ministry of Finance representing bonds issued in a domestic market by a foreign entity in the domestic market’s currency registered a reading of ¥270.4B.
Japanese Foreign investment in Japan stocks came in at ¥290.1B, compared to the last reading of ¥350.5B.
Australian Employment Change released by the Australian Bureau of Statistics registered a reading of 15.6K, compared to the expectation of 15.0K in February 2015 seasonally adjusted.
Australian Unemployment Rate registered a reading of 6.3% in February 2015.
The Euro collapsed recently after the ECB President ignited selling pressure. It was seen trading lower not only against the US dollar, but also against the British Pound. The EURGBP pair fell below the 0.7050 level and almost tested the 0.70 handle. There was a support trend line formed on the 4-hour chart, which was broken by sellers and caused heavy downside. If the pair attempts to correct higher from the current levels, then the same broken trend line might act as a resistance, which also coincides with 23.6% fib retracement level of the last drop.
Intraday Support Level – 0.7020
Intraday Resistance Level – 0.7120
Overall, as long as the pair is below the broke trend line it might continue trading lower.
A break below the 0.7120 level could ignite more gains moving ahead.
If the EURGBP pair continues to move lower from the current levels, then a test of 0.7000-10 support area is possible in the near term where buyers could be tested again.
GOLD followed the major pairs and declined. It fell below the $1150 level, which holds a lot of important in the near term. There was a bullish trend line formed on the 4-hour chart, which was broken by sellers ignited a downside thrust. There are more losses feasible in the near term if the US dollar strength continues moving ahead. A test of the $1120 level is possible, as the US dollar is simply unstoppable at the moment. Let us see how it trades if it declines further from here.
Intraday Support Level – $1140
Intraday Resistance Level – $1165
Selling rallies around the $1165 level look like a good option.
A break above the same might call for more gains moving ahead.
On the upside, the most important resistance is around $1165.
"Patience is the key for success"
Oliver Miller is one of the best financial analyst with 18 years of online trading experience
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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