Weekly technical levels of NZD/USD for January 27-31, 2014 2014-01-26 Idea about resistance and support: R3 and S3 are considered to be clear indicators of the maximum range of extreme volatility, though it is possible to pass them through. Pivot lines work well on the sideways markets as prices are most likely to be located between the R1 and S1 lines. Within a strong trend, the price is expected to be lower than the pivot point line and continue moving. If the breaking news released may affect the market, the price is likely to go straight through R1 or S1 and even reach R2 and R3 or S2 and S3. Observations: If the trend is upward, then the strength of the currency pair will be defined as following: NZD is in uptrend and USD is in downtrend. Fibonacci retracement is used to determine accurate psychological levels of support and resistance. The period of time should be taken into account. Fibonacci is in a trading range; it looks like the trend is trapped and going up and down. If you sell or buy in the long term in this period, you will surely lose your profit. Stop loss should never exceed your maximum exposure amounts. As a rule, the market is highly volatile if the last day had a huge volatility. Daily analysis of major pairs for January 27, 2014 2014-01-26 EUR/USD: This pair was able to shrug off further bearish threats on it, as it went into a positive correlation with the Cable. There is now a Bullish Confirmation Pattern in the chart, and the price would break the resistance line at 1.3700 this week, while going further towards the resistance line at 1.3750. USD/CHF: This pair was able to shrug off further bullish attempts on it, as it went into a negative correlation with the EUR/USD. There is now a Bearish Confirmation Pattern in the chart, and the price would break the resistance line at 0.8900 this week, while going further towards the resistance line at 0.8850. GBP/USD: The Cable topped 1.6650 and later plummeted by about 160 pips. The RSI has crossed the level 50 to the downside, but the EMAs are yet to validate that. Only a movement below the accumulation territory of 1.6400 would render the current bullish bias invalid. Without that, it is believed that the price could rise from here. USD/JPY: Caution had always been expressed about the limitation of the recent bullish signal in this market. Things have now suddenly gone bearish, and the indicators in the chart have confirmed this. From the supply level at 104.50, the price dropped by more than 200 pips; and it may continue going down this week. EUR/JPY: Last week was very interesting in the markets because there were significant reversals. For example, the EUR/JPY, which has long been in an equilibrium zone, was able to break out in the direction of the bears. The new biases would continue to be valid for this week.
Posted on: Mon, 27 Jan 2014 07:37:53 +0000