NZD/USD Is Consolidating

Like all USD-related pairs NZD/USD was seriously affected by the fundamentals last Friday, and the pair fell with over 150 pips, reaching a support at 0.7210 and bouncing off of it after forming a doji candlestick above that level on the four-hour time-frame. The pair has been consolidating ever since, despite a second attempt to break below 0.7210 and it appears that there will soon be another move to the downside, if we take the new doji candlestick formed on the four-hour time-frame below the resistance at 0.7260 into consideration. Whether or not the pair will break below the support at 0.7210 remains to be seen, but if it does there will likely be a further move to the downside towards 0.7130 – 0.7120.

Will Gold Start Moving to the Upside?

One has to wonder whether this is the end of the current move to the downside for Gold when they examine the daily time-frame. After the fundamentals on Friday Gold formed a whipsaw, which translated into a spectacular doji candlestick on the same time-frame. Yesterday Gold formed a hammer candlestick on the daily time-frame again and both are above the support at $1,317. Both of these candlesticks individually are a signal that we might have to prepare for a reversal, together they are an even more telling signal.

If said signal proves valid Gold will likely start moving to the upside towards $1,330 - $1,340 again.

The target to the downside, however, remains unchanged at $1,300, which coincides with (MA)89 on the daily time-frame.

GBP/USD Is Bearish

After Janet Yellen's speech in Jackson Hole last Friday GBP/USD plunged to the downside, disappointing the hopes that the pair might continue rising. What is more, it also broke below the support at 1.3130, which coincided with (MA)89 on the four-hour time-frame, as well as the one at 1.3100 and is currently still dropping. Even more importantly, GBP/USD also formed a shooting star candlestick on the weekly time-frame. All factors point to a new move to the downside. I think that the pair will continue falling at least until it reaches the support at 1.3020, and a breakout below that level could lead to a further drop towards the previous low at 1.2865.