EUR/USD Bounced off from 1.2070

EUR/USD has been steadily moving to the upside for quite a while now – since March this year, but it appears that there will likely be at least a temporary retracement before the pair continues rallying. The pair has formed a very clear shooting star candlestick on the daily time-frame at 1.2070 and has already begun moving to the downside. The closest target is likely around 1.1830, which is the (MA)89 indicator on the four-hour time-frame. Should the pair break out below that support level as well, it will likely continue falling towards 1.1660 or even 1.1600. On the other hand, if or when the pair does break out above 1.2070 the rally will likely continue towards 1.2100 – 1.2200.

EUR/GBP Formed a Double Top

The situation with EUR/GBP is quite similar to EUR/USD – the pair has been moving steadily to the upside for a while and it has currently formed a shooting star candlestick on the daily time-frame at 0.9305. What is more, however, is the fact that the pair reached the previous high at 0.9304 before forming that candlestick and clearly bounced off from it. So in addition to the shooting star candlestick there is a rather impressive double top at the aforementioned resistance at 0.9305 which is clearly visible on the weekly time-frame. The pair will likely continue falling, and its closest target to the downside is probably around 0.9130.

NZD/USD Bounced off from 0.7300

NZD/USD bounced off from 0.7190 and started moving to the upside last week, rallying sharply for the past few hours and briefly broke out above the resistance at 0.7280, which coincides with the (MA)89 indicator on the four-hour time-frame, until it finally found some resistance at 0.7300 and started retracing to the downside. The retracement was unsurprising, considering the obvious shooting star candlestick on the one-hour time-frame at 0.7300. The next target to the downside will likely be around 0.7245, which coincides with the same (MA)89 indicator, but on the one-hour time-frame. A breakout below that level could lead to a further drop towards the last low at 0.7217.