Talking Points
- USD/JPY overcomes key Gann level
- EUR/USD holding below 20-day moving average
- NZD/USD testing important retracement
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Foreign Exchange Price & Time at a Glance:
Price & Time Analysis: EUR/USD
Charts Created using Marketscope – Prepared by Kristian Kerr
- EUR/USD is in consolidation mode below the 20-day moving average now around 1.1400
- Our near-term trend bias is positive while above 1.1210
- A move over 1.1400 is needed to reinstill upside momentum in the rate and trigger a more meaningful push higher
- A minor turn window eyed tomorrow
- A close 1.1210 would turn us negative on the euro
EUR/USD Strategy: Like holding reduced long positions above 1.1210. May look to add around the turn window tomorrow.
| Instrument | Support 2 | Support 1 | Spot | Resistance 1 | Resistance 2 |
|---|---|---|---|---|---|
| EUR/USD | *1.1210 | 1.1260 | 1.1295 | 1.1350 | *1.1400 |
Price & Time Analysis: NZD/USD
Charts Created using Marketscope – Prepared by Kristian Kerr
- NZD/USD remains in consolidation mode below the 38% retracement of the Jan/Feb decline
- Our near-term trend bias is negative while below .7430
- A move under the 2nd square root relationship of the year’s low at .7345 is needed to resintill downside momentum in the rate
- A minor turn window is eyed tomorrow
- A close above .7430 would turn us positive on the Kiwi
NZD/USD Strategy: Like the short side while below .7430.
| Instrument | Support 2 | Support 1 | Spot | Resistance 1 | Resistance 2 |
|---|---|---|---|---|---|
| NZD/USD | *.7345 | .7370 | .7375 | *.7430 | .7490 |
Focus Chart of the Day: USD/JPY
USD/JPY broke above the 2nd square root relationship of the 2014 high this morning to trade at its highest level in over a month. The technical break comes on the heels of some other key breaks over the past few days including a trendline connecting the December and January highs and the 61.8% retracement of the December range. The breakout from the multi-month consolidation looks valid and a daily close above 119.65 will further solidify this view. The late December high around 120.80 is the next upside attraction of significance with a break above required to invalidate some medium-term negative cyclical concerns. This week’s low near 118.40 is key support and only weakness below this level would turn the technical picture negative.
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This publication attempts to further explore the concept that mass movements of human psychology, as represented by the financial markets, are subject to the mathematical laws of nature and through the use of various geometric, arithmetic, statistical and cyclical techniques a better understanding of markets and their corresponding movements can be achieved.
--- Written by Kristian Kerr, Senior Currency Strategist for DailyFX.com
To contact Kristian, e-mail instructor@dailyfx.com. Follow me on Twitter @KKerrFX
