EURUSD continues to look strong and very bullish. We tracked a rising wedge for two weeks on this market, that wedge turned out to be false at least for the lower trend line. The top trend line however is very much intact so I still have it on the chart.
EURUSD is currently in a bull flag and at a pivot that will determine the direction of the pair is to go in weeks to come. 1.2150 is a confluence of resistance between the top of the flag and the horizontal level. A daily close above 1.2150 will most likely send the pair higher if it holds as support upon retest. Higher levels include 1.2350 and a trend line resistance dating from March 2020 around 1.2480.
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Alternatively, if we get a close back below 1.2150 after a daily above it, that will negate the bull flag. A sell signal forming at 1.2150 will expose the bottom of the channel with supports at 1.200, 1.870
EURUSD daily time frame
GBPNZD
GBPNZD looks ready to head lower now more than ever before; on the weekly time frame buyers retested the bottom of the channel we have been tracking for a long time now. That retest happened to be a rounded retest and sellers defended the area despite the general strength of the pound lately.
Last week formed a sell signal in the form of a pin bar. I always prefer entering at 50% retracement of Fibonacci. The channel bottom remains resistance while 1.850 remains support that sellers need to break to send GBPNZD lower. Keep in mind the trend line from December 2019 because if the pair does sell-off and breaks below 1.850 the trend line is another support level that will attract buyers.
GBPNZD weekly time frame
AUDJPY
I wrote about AUDJPY a couple of times, discussing the conflicting patterns on the weekly time frame, the rising wedge and inverse head and shoulders. Last week close above 81.744 negated the wedge hence it won’t concern us any longer.
The inverse head shoulders have a measured objective of 1,761 pips which comes in around 96.44 I believe AUDJPY still has much higher ground to cover if all goes accordingly. A retest of 80.741 will provide a good opportunity to get long allowing the 10 and 20 EMAs to catch up with the price. Resistance includes 84.540 and 89.414.
Alternatively a weekly close to the neckline will negate this bullish pattern.
AUDJPY weekly timeframe
By: Chijioke Maduakor
