NZD/USD Is Likely about to Start Climbing

NZD/USD reached the resistance at 0.7480 on the weekly time-frame, formed a spectacular shooting star candlestick on the same time-frame and started moving to the downside, but it appears that move to the downside will stall at least for now, if not reverse altogether, because the pair formed an inverted hammer candlestick at the support at 0.7100, which also coincides with (MA)89 on the weekly time-frame again. If this signal is valid, and it most likely is, we will probably see a new move to the upside towards 0.7300 – 0.7350, and a breakout above that level will likely lead to a further move to the upside towards the previous high at 0.7480. Of course, we should also keep in mind that signals on such large time-frames take time to give the expected result.

CAD/JPY Is Moving to the Upside

CAD/JPY reached the support at 77.75 and tested that level for two days while forming multiple spinning top candlesticks, as well as a doji candlestick and an inverted hammer candlestick above it on the four-hour time-frame. Under those circumstances it was no surprise that the pair bounced off the support and started moving to the upside, eventually breaking above the resistance at 78.40, which coincides with the (MA)89 indicator on the same time-frame, despite forming a hanging man candlestick below it. The pair is currently still very bullish and the move to the upside will likely continue at least until CAD/JPY reaches the next resistance at 78.90 – 79.00.

The EUR/GBP Bullish Trend Is Stalling

EUR/GBP has been moving sharply to the upside in the past months, but it appears that the strong bullish trend might pause for a while because the pair reached the resistance at 0.9300 and bounced off that level and more importantly, it also formed a very well-defined doji candlestick on the weekly time-frame below that resistance. If this signal is valid then the move to the downside will probably continue, especially if the pair breaks below the support at 0.8900. Should that happen we can expect a further move to the downside towards the next support level at 0.8530, which coincides with (MA)89 on the daily time-frame.