Talking Points
- EUR/USD nears important test
- NZD/USD falls to new multi-year low
- GBP/USD closing in on key support zone
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Foreign Exchange Price & Time at a Glance:
Price & Time Analysis: EUR/USD
ChartPrepared by Kristian Kerr
- EUR/USD filled the weekend gap down yesterday before turning lower again
- Our near-term trend bias is lower in the euro while below 1.1180
- Last week’s low near 1.0950 is a near-term pivot ahead of the critical June low at 1.0820
- A very minor turn window is eyed tomorrow
- A close back over 1.1180 would turn us positive on EUR/USD
EUR/USD Strategy: Like the short side while below 1.1180.
| Instrument | Support 2 | Support 1 | Spot | Resistance 1 | Resistance 2 |
|---|---|---|---|---|---|
| EUR/USD | *1.0820 | 1.0950 | 1.0965 | 1.1070 | *1.1180 |
Price & Time Analysis: NZD/USD
ChartPrepared by Kristian Kerr
- NZD/USD continued its decline on Tuesday to trade at its lowest level in almost 5-years
- Our near-term trend bias is lower in the kiwi while below .6800
- The 2010 low around .6560 in the next major downside attraction for the rate
- A turn window of some importance is eyed early next week
- A daily close back over .6800 would turn us positive again on NZD/USD
NZD/USD Strategy: Like the short side whie below .6800.
| Instrument | Support 2 | Support 1 | Spot | Resistance 1 | Resistance 2 |
|---|---|---|---|---|---|
| NZDUSD | *.6560 | .6600 | .6640 | .6735 | *.6800 |
Focus Chart of the Day: GBP/USD
GBP/USD has come under modest but steady pressure since failing last month at the 50% retracement of the 2014 – 2015 decline just below 1.5900. It is still up in the air whether a more serious top is in place or not, but the steady erosion of Gann supports over the past few days is negative. The 200-day moving average and the 38% retracement of the April – June advance coincide around 1.5440-15 and this area looks to be the next important test for the exchange rate. Traction below exposes critical support at 1.5170 (June low), while a successful hold raises the possibility of another leg higher. The first part of next week looks quite important for the pound from a medium-term cyclical perspective.
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--- Written by Kristian Kerr, Senior Currency Strategist for DailyFX.com
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.
To contact Kristian, e-mail instructor@dailyfx.com. Follow me on Twitter @KKerrFX
