Near-term Setups in USDJPY, EURUSD & NZDUSD- SPX Levels In Focus
I highlighted this setup earlier in the week and the pair has now taken out all of our topside targets into the key 104.47/86 resistance range. Divergence into the highs suggests that the advance is vulnerable here. The pullback found support today at the 100-day moving average with a break below 102.83 shifting the focus back towards a key support confluence at 103.83 (bullish invalidation). A breach above key resistance targets 105.55 & 105.80.
NZDUSD- Kiwi turned at the 7050 support target on building divergence with today’s outside candle risking further strength near-term. That said, I still think this can make a run at the January trendline support just lower before mounting a more significant recovery. Look for initial resistance at 7118 with a breach above 7154 needed to invalidate the short-bias as the pair continued to trade within the confines of the descending median-line formationhighlighted last week.
SPX- The index responded to slope support with a sharp reversal now targeting initial resistance at the August lows. I’ll be looking for a reaction up there- featured this setup in today’s Scalp report.
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---Written by Michael Boutros, Currency Strategist with DailyFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.