EUR/USD
Today saw the long-awaited close above 1.38 for this pair. The resistance has given way, and now should serve as support. (The 1.38-1.3750 area) As this has given way, it clearly opens the door to 1.40 and possibly beyond.
The bullish action today leaves little hope for the bears, however – if we can see a close below 1.3750 – we could call this breakout a “false breakout”. If we see supportive action on a pullback, this pair should be of interest for buyers.
USD/CAD
The CAD has been appreciating against the USD for some time. We are still in the 0.97 to 0.98 range and haven’t completely broken though. The 4 hour chart shows a shooting star that looks to trigger a move below 0.97 which should lead to 0.90 and possibly beyond. If we find ourselves above 0.9825 – then you would have to consider the recent action a false signal. However, the smart money is certainly shorting this pair.
NZD/JPY
The NZD/JPY has been looking weak for about 2 years, with the highs getting lower each time, and a bit of a triangle formation on the very long-term charts. The action on Wednesday was very bearish, and impulsive, showing that the trading world has all but abandoned the Kiwi Dollar against the Yen.
The pair is approaching the 60 handle which is supportive and has been for some time. However, this pair keeps failing to make higher highs – a clear bearish signal if there ever was one. A break below 60 moves the pair down to 53 and below. If we break above Wednesday’s high, we could be trying to consolidate again.
