EURUSD started the week below 1.2150 and closed above it on Thursday, as 1.2150 started acting as support once again.
It has been bullish since June 2020, but the rising wedge pattern we discussed in last week’s forecast hints at a possible pullback. A retest of the wedge bottom and a formation of a bullish buy signal will provide an opportunity to get long targeting the top of the wedge.
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This rising wedge pattern is terminal which means it will eventually break down. A close below the wedge pattern will expose 1.160 and 1.150; alternatively, a daily close above the wedge will negate the wedge pattern.
EURUSD daily time frame
EURJPY broke out of an upward sloping flag in the previous week and retested the bottom of the channel on Friday. For sellers to get any momentum and push the price lower, a daily close below 125.85 supports is vital. Support level on the way down includes 124.85 and 124.05. Alternatively, a daily close above the channel will negate the pattern.
EURJPY daily time frame
The Aussie has rallied impressively since November 2019, the last bullish move was an impressive 551 pips move that started with a range breakout in October of 2020.
AUDUSD is consolidating once again in a range between 0.780 and 0.766 and breakout from this range may be the start of a new run for the pair. A buy signal from 0.766 will provide a good buying opportunity with the range top 0.780 being the target. A daily close above 0.780 will open the door to higher levels like 0.796 and 0.811; while a daily close below 0.766 will expose 0.748 and0.720
AUDUSD Daily time frame
EURNZD is another Euro pair indicating a possible Euro weakness. Sellers confirmed a head and shoulder pattern with a close below the neckline two weeks ago, on a weekly time frame. Buyers retested the neckline last week that session formed a bearish pin bar.
Should this pattern play out, we are looking at a possible 3331 pips sell-off in the coming weeks/months.
However, sellers need to close below 1.679/1.6780 on a weekly closing basis before we can see further weakness from the pair. Support levels on the way down include 1.628,1.572, and 1.508.
EURNZD weekly time frame.
By: Chijioke Maduakor