Buy Dips In $NZDUSD

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The New Zealand dollar performed well against the US dollar recently and broke an important resistance area to trade higher. There was a lot of buying interest seen in the NZDUSD pair, which helped the pair in the near term. There was an important event lined up in Australia as the Employment Change, which is a measure of the change in the number of employed people in Australia was released by the Australian Bureau of Statistics. The outcome was above the expectation, as the employment change came in at 37.7K, more than the market forecasted for March 2015. This helped the Aussie and New Zealand dollar both.

There was a critical bearish trend line formed on the hourly chart of the NZDUSD pair, which was broken earlier during the Asian session to open the doors for more gains in the near term. The upside was stalled around the 0.7626 level, which opens the chance of a minor correction in the short term. The broken trend line might act as a support for the pair, which is now coinciding with the 38.2% fib retracement level of the last leg from the 0.7488 low to 0.7626 high. So, in short the 0.7570 level is a major support area for the NZDUSD pair and might be considered as a buy zone moving ahead. The hourly RSI is around overbought levels pointing a correction in the short term.

NZDUSD 04.16.2015

If the NZDUSD pair moves higher, then a break above 0.7625 might take it towards 0.7650.

Overall, one might consider buying dips in the NZDUSD pair as long as it is above the broken trend line.

GOLD Facing a Barrier Ahead

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GOLD recently traded higher, but failed to clear a major barrier around the $1200 level. It is currently correcting lower and looks set for more losses in the near term. There was a major release during the Asian session, as the Chinese GDP was published. The outcome was as expected with a rise of 7% in the first quarter of 2015. This helped GOLD buyers to gain some ground, but it is still facing several resistances on the way up. Today, in the US, the Industrial Production measuring the volume of production of US industries such as factories and manufacturing will be released by the Board of Governors of the Federal Reserve. Let us see how it can impact GOLD price.

There is a confluence of two bearish trend line formed on the hourly chart of GOLD, which stalled the upside earlier and currently acting as a hurdle. It would be very important to see if buyers can manage to clear the highlighted trend lines or not. One more critical thing to note is that the 100 hourly simple moving average is above the same trend lines, which means there is a solid resistance forming around the $1195-$1200 levels. A break above the same might set GOLD for a move towards the 200 hour SMA. Alternatively, a failure to break higher could ignite a down-move in the short term.

GOLD 04.15.2015

If GOLD moves lower from the current levels, then initial support is around the $1188 level, followed by $1184.

Overall, one might consider selling rallies in GOLD as long as it is below both the bearish trend lines on 4H chart.

 

EURAUD Might Present a Buying Opportunity

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The Euro surged higher against the Aussie dollar as the latter one got weakened recently. The EURAUD pair climbed higher, but found resistance around an important area. It is currently correcting lower and might present a buying opportunity in the near term. There was a release lined up in Australian during the Asian session, as the Westpac Consumer Confidence pointing the level of sentiment that individuals have in economic activity reflecting respondents’ evaluations of their family finances over the past and coming year was released by the Faculty of Economics and Commerce Melbourne Institute. It registered a decline from the last reading of 99.5 to 96.2.

There is a major resistance trend line formed on the hourly chart of the EURAUD pair, which acted as a hurdle recently and caused a downside reaction. The pair is currently moving lower, but could find support around the 50% fib retracement level of the last leg from the 1.3837 low to 1.4018 high. However, there is no doubt that the highlighted trend line is a major barrier for the pair and might continue to stall the upside in the EURAUD pair. If it manages to settle above the same, then it might head towards the 1.4050 level. Any further gains might be limited as there is hardly any reason for the Euro to gain a lot in the near term.

EURAUD 04.15.2015

If the EURAUD pair moves lower from the current levels, then 100 simple moving average might also come into play and help buyers.

Overall, one might consider selling rallies in the EURAUD pair as long as it is below the highlighted trend line.

More Losses Possible In USDCHF

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The US dollar was seen weakening against the Swiss franc during the past session, as the USDCHF pair traded lower and tested the 0.9750 support area. The pair managed to hold the mentioned level and it looks like correcting higher in the near term. There is a major release lined up today, as the US retail sales data suggesting the total receipts of retail stores will be released by the US Census Bureau. The market is expecting the US retail sales to rise by 1.1% in March 2015. Let us see if the expectation is fulfilled or not in the near term. A miss might ignite losses in USDCHF.

There were a couple of trend lines formed on the hourly chart of the USDCHF pair. First one was a bullish trend line, which was breached recently to open the doors for more downsides in the near term. Second, there is a support trend line, which prevented a slide in USDCHF around 0.9750. Currently, the pair is correcting higher and trading around the 23.6% fib retracement level of the last drop from the 0.9861 high to 0.9754 low. There is a major resistance forming around the 50% fib retracement level, which is also coinciding with the broken bullish trend line. So, the USDCHF pair might struggle around the 0.9800-10 levels in the near term where the US dollar sellers could defend upsides.

USDCHF 04.14.2015

If the USDCHF pair moves lower from the current levels, then initial support is around the second support trend line.

Overall, one might consider selling rallies in the USDCHF pair as long as it is below the broken trend line.

AUDUSD Heading Towards Pivot Area

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The Australian dollar fell sharply recently against the US dollar, and one of the main reasons for the same was the sifter than expected Chinese trade balance report. However, the AUDUSD pair managed to find buyers around the 0.7550 levels, and currently making an attempt to correct higher. We need to see how long the pair can stay on the top and hold the downside. There was a release lined up in Australia, as the NAB´s Business Conditions pointing at trading, profitability and employment conditions in Australia was released by the National Australia Bank. It registered an increase from the last reading of 2 to 6 in March 2015.

There is a monster bearish trend line formed on the hourly chart of the AUDUSD pair, which might act as a pivot area for the pair. If the pair heads higher, then it might test the highlighted trend line. There is a critical point to note i.e. the 50% fib retracement level of the last leg from the 0.7694 high to 0.7550 low is also around the same trend line. So, one could say that the 0.7625 level is a major barrier for the AUDUSD pair. Moreover, the 200 hourly simple moving average is also above the trend line waiting to act as a hurdle for the pair. So, the chances of AUDUSD moving lower are more compared to a break higher.

AUDUSD 04.14.2015

If the AUDUSD pair moves lower from the current levels, then initial support is around 0.7580, followed by the last low of 0.7550.

Overall, one might consider selling rallies in the AUDUSD pair as long as it is below the highlighted trend line.

Euro Could Trade Higher versus Japanese Yen

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The Euro fell sharply recently against the Japanese yen, and tested the 127.20 support area. It looks like consolidating as of writing and setting up for the next move. Earlier during the Asian session, the Japanese new orders report representing the total value of machinery orders placed at major manufacturers in Japan was released by the Cabinet Office. The outcome was just above the forecast as it registered a decline of 0.4% in March 2015, compared to the preceding month whereas the market was expecting -2.8%. There was not much reaction from the Japanese yen pairs, instead the USDJPY pair was seen trading higher. In the Euro zone today there are a few releases, which might ignite moves in EURJPY.

There is a critical bearish trend line formed on the hourly chart of the EURJPY pair, which is acting as a pivot area for the pair. It prevented upside on many occasions, and the pair is again heading towards it. However, looking at the current consolidation pattern and price action, there is a chance that the pair might break the trend line. The 23.6% fib retracement level of the last leg from the 129.26 high to 127.18 low is also sitting around the same trend line. So, a double break above the 23.6% fib level might ignite more gains in the near term, which could take EURJPY towards 128.20.

EURJPY 04.13.2015

If the EURJPY pair fails to break higher and moves lower, then a break below the recent low might take it towards 127.00.

Overall, one might consider buying with a break above the trend line in the EURJPY pair as long as it is above the last low of 127.18.

Can GBPUSD Break Higher?

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The British pound traded lower this past week against the US dollar, but it was later seen finding bids around the 1.4600 area. It looks like stabilizing around the mentioned area and might gain bids in the short term. There is hardly any major release lined up in the UK and the US today, which means there could be ranging moves during the next couple sessions. Shortly, the Chinese Trade Balance, which is a balance between exports and imports of total goods and services will be released by the General Administration of Customs of the People’s Republic of China. It might cause some moves in the FX market in the near term.

There was a major bullish trend line formed on the hourly chart of the GBPUSD pair, which was taken out by buyers during the Asian session. Currently, the pair is testing the 23.6% fib retracement level of the last drop from the 1.4844 high to 1.4588 low. A break above the same might open the doors for more upsides in the short term. Initial resistance cane be seen around the 38.2% fib level, followed by the 50% fib level. There are a few bearish signs to note from the charts, including the fact that the GBPUSD pair is below the 100 and 200 hourly simple moving averages. And, the hourly RSI is also below the 50 level.

GBPUSD 04.13.2015

If the GBPUSD pair moves lower from the current levels, then a retest of the 1.4600 support area is possible moving ahead.

Overall, one might consider buying dips in the GBPUSD pair as long as it is above the 1.4600 support area.

GBPJPY Crushed As Yen Gains

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The British pound was seen trading lower against the Japanese yen, as the latter one was bid across the board. Plus, the British also weakened in the short term igniting downside reaction in GBPUSD, GBPJPY. There are a few major releases lined up in the UK, including the industrial production data and the manufacturing report. The UK Industrial Production measuring outputs of the UK factories and mine will be released by the National Statistics. The forecast is lined up for an increase of 0.3% in February 2015, compared to the previous decline of 0.1%. Let us see how the outcome shapes and affects the British Pound moving ahead.

There was a minor bullish trend line formed on the hourly chart of the GBPJPY pair, which was broken recently by sellers. There was a sharp downside reaction after the break and the pair was seen testing the 177.00 area. The British pound buyers managed to protect losses around the mentioned area and it is currently correcting higher. However, it faces the same trend line as resistance, which is also coinciding with the 23.6% fib retracement level of the last drop from the 178.05 high to 177.00 low. The hourly RSI is well below the 50 level signalling more losses in the near term. Moreover, the 100 and 200 simple moving averages on the way up are also barriers for the pair.

GBPJPY 04.10.2015

If the GBPJPY continues to move lower from the current levels, then a break below the recent low could take it towards 176.50.

Overall, one might consider selling rallies in the GBPJPY pair as long as it is below the broken trend line.

No Hope for EURUSD As Sellers Remain In Control

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The Euro failed once again to trade higher against the US dollar and after a minor correction moved back lower. There was a sharp reaction noted recently around the 1.0880 levels where sellers stepped in to ignite a downside reaction in the EURUSD pair. The economic releases also played a part, and today in the Euro zone there is no major release. One low risk event lined up is the French Industrial Output representing the volume of production of French industries such as factories and manufacturing will be released by INSEE. The market is expecting a decline this time compared to the increase of last time.

There is a major bearish trend line formed on the hourly chart of the EURUSD pair, which is likely to act as a hurdle for the pair if it moves higher in the near term. Currently, the pair is finding buyers around the 1.0640 levels, and correcting higher. Initial resistance is around the 23.6% fib retracement level of the last drop from the 1.0880 high to 1.0640 low. The most important one is around the highlighted trend line. One key point to note from the charts is that the pair is trading well below the 100 and 200 simple moving averages, which is a bearish sign. Moreover, the hourly RSI is also below the 50 level.

EURUSD 04.10.2015

If the EURUSD continues to move lower from the current levels, then a break below the recent low could take it towards the 1.0600 levels.

Overall, one might consider selling rallies in the EURUSD pair as long as it is below the highlighted trend line.

USDJPY Looks Set To Break Higher

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The US dollar traded higher recently against most major currencies, including the Japanese yen as the FOMC meeting minutes were on the positive side and lifted the dollar buyer’s sentiment. The USDJPY pair traded higher and surged above the 120.00 level and looks set for more gains in the near term. Today, the US Initial Jobless Claims, which helps in measuring the number of people filing first-time claims for state unemployment insurance will be released by the US Department of Labor. The market is expecting it to increase from the last reading of 268K to 285K. Let us see how the US dollar reacts if this expectation is met moving ahead.

There was a critical bearish trend line formed on the hourly chart of the USDJPY pair, which was breached during the Asian session. There was a release in Japan as well, which ignited a minor downside reaction in the Japanese yen. However, the pair stalled around the last high of 120.40 and is currently correcting lower. The broken trend line is acting as a support to the pair and we need to see how long it can protect the downside. Moreover, the 23.6% fib retracement level of the last leg from the 119.63 low to 120.37 high. So, in short there is a major support around the 120.20-10 levels, which might cause an upside reaction in the pair moving ahead.

USDJPY 04.09.2015

If the USDJPY pair breaks higher and moves above the last high of 120.40, then it could test the 120.80-90 levels in the near term.

Overall, one might consider buying dips in the USDJPY pair as long as it is above the 120.10-00 levels.