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NZD/USD will continue to trade around current levels

al_dcdemo Posted 30 Apr. as Analysis on NZD/USD, Target: 0.7725, Date: 1st of June, 12:00 GMT  in #Technical analysis #Breakout #Bullish #Consolidation #NZD/USD #Kiwi #Rising Wedge #Rbnz #Range Bound #Conditionally Dovish Stance
Monthly chart:
In January, the pair has busted 100 month SMA, 38.2% retracement of 2009 to 2011 uptrend and the low of the 2011 - 2014 trading range around 0.7350. February, March and April were more or less range-bound. Support is now firmly established at 0.7175 with more at 0.70 level and 50.0% retracement (of 2009 to 2011 uptrend) at 0.6868. April candle still signals indecision but is slightly more bullish than previous one in that it closed above pivotal 0.76 level.
Weekly chart:
The pair…
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al_dcdemo 3 May

UPDATE 2: Although there are few data points out from China and Australia that may affect the pair, data from New Zealand (Employment Change q/q and Unemployment Rate, GDT Price Index) and US (ISM Non-Manufacturing PMI, ADP Non-Farm Employment Change and Non-Farm Employment Change) will be the most market moving. 50 day SMA is the first line of defence of the downside, while 0.76 level shall offer initial resistance on upticks.

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al_dcdemo 10 May

UPDATE 3: Since RBNZ changed its stance to conditionally dovish last week, the pair was mostly offered. It was no different this week, although the decline was slower. Weaker than expected employment report added to worries and many are now expecting at least one rate cut by the end of the year. Weekly candle was slightly bearish but the pair still remains in upward sloping three month consolidation.

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al_dcdemo 11 May

UPDATE 4: From New Zealand in the week ahead, we will get RBNZ Financial Stability Report on Tuesday and shortly after that a speech from RBNZ Governor Wheeler. On Thursday, Q1 Retail Sales will give the latest update on the economy. (Core) Retail Sales, PPI, Unemployment Claims and Prelim UoM Consumer Sentiment from US will be watched closely to provide further clues about potential Q2 recovery. There's risk that the pair breaks lower and strong support may not come in until closer to 0.72.

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al_dcdemo 17 May

UPDATE 5: It looked like the week would be a losing one as the pair fell nearly 150 pips from last Friday's closing levels on Monday. However, strong support at 38.2% retracement of the 2009 to 2011 uptrend stalled the decline and the pair bounced from there on Wednesday after the release of RBNZ Financial Stability Report. Pre-weekend pullback was deep but the pair still ended marginally ahead of the Dollar, posting Doji-like candle on the weekly chart.

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al_dcdemo 18 May

UPDATE 6: Next week will see the release of RBNZ Inflation Expectations q/q and GDT Price Index from New Zealand. But FOMC Meeting Minutes and inflation report from the US will be the events that the market will be focused on. We have proven support in 0.7300 - 0.7350 band, while resistance will be provided by 20, 50 and 100 DMA. The pair is still in range-bound mode even though the risk appears to be more to the downside.

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EUR/USD to remain bullish

al_dcdemo Posted 30 Apr. as Analysis on EUR/USD, Target: 1.1486, Date: 1st of June, 12:00 GMT  in #Technical analysis #Euro #Bullish #EUR/USD #Bounce #South #Channel Line #Supply Zone #Strong Momentum #Data Dependence
Monthly chart:
After it closed the year of 2014 below 200 month SMA, the pair continued its journey to the South with increased momentum. Big support levels (1.20 level, then 2012, 2010 and 2005 lows) fell like dominoes. 61.8% retracement of the 2000 to 2008 uptrend held for some time in January and February, but it too gave way. After busting September 2003 low at 1.0761, the decline stopped near declining channel-line (drawn off 2008 and 2010 lows), but not before run on stops below 1.05 level…
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al_dcdemo 3 May

UPDATE 2: There are a couple of important economic releases next week. ISM Non-Manufacturing PMI on Tuesday will provide latest insight into US business climate. ADP Non-Farm Employment Change on Wednesday will be watched closely for general indications regarding employment. And Non-Farm Employment Change on Friday, which has the potential to reaffirm or reverse current USD weakening trend. Previous resistance 1.1000 - 1.1050 should now offer decent initial support.

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al_dcdemo 10 May

UPDATE 3: The pair started the week a bit on a back foot but on Tuesday it reversed sharply, after dipping into strong support (previous range resistance) in 1.1035 - 1.1100 band. It proceeded higher from there to just below 1.14 on Thursday when profit taking in expectation of two big risk events (UK election, NFP) sent it back down to 1.1250. On Friday it fell further and closed the week few ticks above 1.12. Doji-like weekly candle signals indecision, but we will have to wait till next week for clues about further direction.

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al_dcdemo 11 May

UPDATE 4: There are not a lot of market moving events from Europe: Eurogroup Meetings on Monday, German Prelim GDP q/q on Wednesday. (Core) Retail Sales, PPI, Unemployment Claims and Prelim UoM Consumer Sentiment will provide latest read on US economy. Initial support is seen in 1.1035 - 1.1100 band before 20 and 50 DMA. Resistance: 1.14 then 1.145 before 1.1490 - 1.1530.

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al_dcdemo 17 May

UPDATE 5: Euro was the best performer among major pairs in the past week (percentage-wise). It gained just shy of 250 pips, while weekly range was almost 350 pips. It started the week on the back foot, but that changed on Tuesday when strong reversal from the lows near 1.11 signaled that the uptrend is about to resume. That was confirmed on Wednesday after another 150 pip surge on weak US retail sales report. The pair followed through with higher highs on both Thursday and Friday, closing near the high.

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al_dcdemo 18 May

UPDATE 6: The week ahead could prove to be volatile due to both fundamental and technical factors. We have German ZEW Economic Sentiment, European PMIs, German Ifo Business Climate and three speeches from ECB President Draghi from Europe, plus FOMC Meeting Minutes, inflation report and few other market moving events from the US. Technically, the pair appears poised to break above 1.15 in the days/weeks ahead with the potential up to 38.2% retracement (of the May 2014 to March 2015 decline) at 1.1810 and 2010 low at 1.1875.

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Upside in USD/CAD appears more likely

al_dcdemo Posted 31 Mar. as Analysis on USD/CAD, Target: 1.2720, Date: 1st of May, 12:00 GMT  in #Technical analysis #USD/CAD #Boc #Bullish #Uptrend #Loonie #Overbought #Descending Triangle #Strong Rally #Strong Selling
Monthly chart:
The pair is in uptrend since 2011. It broke 200 month SMA in January and traded above 50.0% retracement of the January 2002 to November 2007 decline. I'd say the retracement has been properly broken as the pair posted second monthly close above that level in March. February 2009 high (1.3064) now comes into focus, before 61.8% retracement at 1.3462. The broken 200 month SMA is acting as support.
Weekly chart:
After strong rally since June 2014 and 1000 pips of gains till the end …
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al_dcdemo 6 Apr.

UPDATE 2: Friday's NFP move appears to be a bit overdone and a pullback to 1.2500 - 1.2550 appears likely, before potential follow through move lower. The direction will also strongly depend on Canadian Ivey PMI and US ISM Non-Manufacturing PMI, which will be released on Monday at 14:00 GMT. Range support at 1.2350 is the first strong level to watch.

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al_dcdemo 11 Apr.

UPDATE 3: Canadian Dollar defied US Dollar strength in the first part of the week, but after huge build-up was shown in Crude Oil Inventories report on Wednesday, the pair reversed sharply. FOMC Minutes, released few hours later, didn't help it. It added another cent on Thursday and early Friday, but another reversal came after much better than expected Canadian Employment Change (though the details were not as strong).

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al_dcdemo 12 Apr.

UPDATE 4: Focus in the week ahead will be on the BOC meeting on Wednesday. Even though no change is expected in Overnight Rate, the market may be expecting dovish Rate Statement or at least some downside revisions in the Monetary Policy Report. If that doesn't happen and oil continues to consolidate, there's risk that the pair breaks three-month range bottom at 1.2350. Most likely scenario is, however, that the pair remains range-bound.

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al_dcdemo 18 Apr.

UPDATE 5: The pair was the star performer among majors this week (pip and percentage-wise) and also had the greatest weekly trading range. The break of the 3-month range came on Wednesday after the combination of almost hawkish BOC and recovering price of oil sent the pair down to 1.2280. The downtrend continued on Thursday and into Friday, but the pair then recovered by almost 200 pips in a broader USD pullback.

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al_dcdemo 19 Apr.

UPDATE 6: Along with two speeches from Poloz and a couple of US data releases, there's not much on the calendar that may move the pair in the week ahead. Focus will likely be on technicals and flows as longer-term bulls will begin to scale into their long positions and shorter-term bears will be adding to their shorts. Most probable scenario is a retest of the broken range bottom (1.2350) from below and then continuation lower.

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USD/CHF up towards parity

al_dcdemo Posted 31 Mar. as Analysis on USD/CHF, Target: 0.9968, Date: 1st of May, 12:00 GMT  in #Technical analysis #Fundamentals #Bullish #USD/CHF #Uptrend #Pullback #Parity #Swissie #Snb Shocker #Turnaround
Monthly chart:
The pair has broken parity on the first trading day of the year. It was trading around 1.02 when SNB shocker sent it all the way to 2011 lows. The actual low was 0.7263 or roughly just 70% of its value before the announcement. The turnaround was equally impressive and after (barely) two months the pair found itself testing middle of pre-SNB range between parity and 1.03. That was near-term top and it declined from there but it still managed to recoup more than three quarters of it…
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al_dcdemo 6 Apr.

UPDATE 2: Both technicals and shorter-term fundamentals point to further losses in the week ahead, although some sort of pullback and/or re-test of pre-NFP levels is not unlikely in the very short term. First stronger support on the downside comes in at October 15th 2014 low and February 2nd high near 0.9350.

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al_dcdemo 11 Apr.

UPDATE 3: Even though SNB removed 1.20 cap, USD/CHF returned to the old habit of mirroring EUR/USD movement, while EUR/CHF is trading around 1.05 with declining volatility. The pair opened the week near 0.95 and, after it failed to follow through on post-NFP gains, reversed higher and climbed all the way to (and through) 0.98 level to close the week just below that. Weekly candle looks bullish - long real body with the close above March 31 high and near the high.

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al_dcdemo 12 Apr.

UPDATE 4: If the pair won't continue to rally on Monday then there will likely be some consolidation, probably at least until US Retail Sales report on Tuesday or perhaps even until ECB meeting on Wednesday. Initial support comes in at March 31 high near 0.9750 and then some more closer to 0.9650. If 0.98 goes, there may not be much resistance before 0.9980 and parity.

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al_dcdemo 18 Apr.

UPDATE 5: Percentage-wise the pair was the second best performer on the week. Again, price action closely resembled that of EUR/USD, but due to slow slide in EUR/CHF, the downtrend in the pair was more pronounced. Even though it didn't manage to break below April 3 low (0.9480) it closed below 20, 50, 100 and 200 DMA. Long weekly candle that almost engulfs previous week's one and closes near the low also looks bearish.

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al_dcdemo 19 Apr.

UPDATE 6: There's few CHF related events in the week ahead (Trade Balance, ZEW Economic Expectations) but they are not expected to impact prices much. Given continuing slide in EUR/CHF and imminent break lower in USD/CHF, there's risk that the SNB might start to intervene (verbally or otherwise) in the markets. If the pair convincingly breaks 0.95, stronger demand may come in at weekly support near 0.9360.

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