By Forex Signs, Inc.
From the yesterday’s session, the NZDUSD continued its bearish momentum, as price breached the previous day’s support line of 0.7557. For today’s session, the pair established a new resistance level of 0.7619 and new support level 0.7542. Price is now testing its support level, and any breach below this would likely continue throughout the session. MA (14) on one hour chart shows a strong downtrend momentum. While Bollinger bands on the same time frame, shows the bearish candlesticks breaching the bottom line and continues its downward trend, indicating a bearish momentum. RSI (14) for one hour chart shows the price is nearly overbought but is likely to maintain its position. In sum, expect this pair to be volatile as the holiday season approaches.
USDJPY Continues to Surge
During the previous session, the USD/JPY pair strengthened from the 83.45 level to 83.66 level before closing at 83.53, a gain of around 21 pips. As of the moment, at the M30 time frame the pair seems to move along the short term consolidation pattern with the SMA (65), and is looking to retest the immediate support level at 83.68. Apart from that, the MACD (10, 26, 9) at H1 time frame is about rise above the signal line, whereas the RSI (14) at the same time frame had already reached the oversold position, thus stimulating a continuous buying momentum for the upcoming trading, but anticipation for a continuous short term consolidation is still highly feasible. For the moment, a hold/buy position is still relevant for the current movement of the USDJPY, however overall bias may likewise turn into a buy proposal.
Australian and its Decline in the Investments
With the central bank Governor Glenn Steven announcement during the previous session that the nation’s interest rate setting is appropriate enough for the period ahead, Australian dollar in response had seen to move in volatility.
In Australia, as the RBA becoming pretty much comfortable with the current level of policy, any adjustments in this within this year may tend to be vague, thus intensifying the probability that Aussie may stay along the bearish trend.
So far, with the government reporting about the decline in the investments in new plant and equipments, which corresponds to the nation’s gross domestic product, the so- called Aussie may likely weaken further against 15 of its 16 major counterparts as stocks continuously drop, sapping demand for higher-yielding assets.
About the Author
Forex Signs, Inc., Founded in 2006 in Wall Street, New York City, FSI relentlessly strives to be the premier Forex brokerage company in the industry by providing exclusive and unmatched trading and investment related services while constantly developing innovative solutions that cater to the vast requirements of both individual and institutional market participants.
