NZD/USD Is Testing the Support at 0.6817

NZD/USD has been very bearish for three months now, ever since the pair initially bounced off from the resistance at 0.7557. Before the pair bounced off from that resistance however, it also tested the support at 0.6817 once already, back in May this year. Now NZD/USD has reached that same level once again and it has formed a clear double bottom at that support. The question is whether it will bounce off from 0.6817 or break out below that level. If there is a breakout there will likely be a further move to the downside towards the previous low at 0.6670. On the other hand if the pair bounces off from 0.6817 there will likely be a rally back towards 0.7130, which is the (MA)89 indicator on the weekly time-frame.

AUD/USD Found Some Support

AUD/USD has been bearish for a little over a month now, since the pair bounced off from its high at 0.8125 but it may have finally found some support at 0.7675, which is the (MA)89 indicator on the weekly time-frame. Although the pair briefly broke out below that level and reached a new low at 0.7625 it quickly retraced back above it and in the process it formed a clear hammer candlestick on the daily time-frame. Said candlestick in combination with the strong support level is a good indication that the pair may halt, at least temporarily, its movement to the downside. If that happens there will probably be a rally towards 1.7700 – 1.7720.

EUR/JPY Is Bearish

EUR/JPY has been incredibly bearish, practically free falling, ever since the fundamentals yesterday. The pair broke out below the support at 132.70 and continues moving to the downside, towards the next possible support at 131.65, which is the last low. That said, apart from the fundamentals yesterday, there were some obvious signals that the pair would start falling – on the four-hour time-frame there was an obvious double, even triple top at the resistance at 134.50 and there was also a shooting star candlesticks at the same level. What is more, on the daily time-frame there was also a double top that has been developing for the past month. 

Considering all these signals, it is quite likely that EUR/JPY will break out below the support at 131.65 and continue moving to the downside, towards the next support at 130.35, which is the (MA)89 indicator on the daily time-frame.