Against the other major currency pair and crosses the Japanese Yen are nearing a bearish breakout from triangular wedges on the the weekly charts. I am expecting new major bearish trends to start for the JPY against these counterparts.
The support line at .6830 held. The price currently in the middle of a break-out pattern. Buy at current price or wait for break-out confirmation. The USD have started an overall decline with future rate cuts and economical challenges awaiting.
Trend: The pair has been in a primary downtrend for the last 3,5 year.
Technicals: The yelllow circled area is the area of interest, a 500 pips range from where I expect the pair to start declining from the lower parts of the circle. The current price movement low in the channel are done with less upward momentum than earlier expericenced in the two channels....
I am expecting markets to enter into risk-on mode after FED`s tomorrow. The price of gold, as a safe haven and risk-off asset will suffer from this.
The 1300 - 1320 area is sell area for gold. Expecting gold to test the 1240 level again. The short trade is valid untill we reach December and the next FED meeting.
This is probably the sell NZD case with the highest potential. A buy from the 1.68 level could be rewarded with around 1000 pips if the case is correct.
Still the main risk is coming from news releases from UK and EU regarding the Brexit process. Also the future of Carney with BoE if negative, could have negative impact on the suggestioned case.
In general I have a very bearish outlook for NZD. Key numbers due to be released the coming week, the week after involves the rate decison and general outlook from the CB. Expectation of a rate cut.
Technical analysis is the primary signaller of the bearish direction ahead.
Already a trading idea/case for shorting NZDCAD has been published. This post shows the...
0.7650 - 0.7730 is possible selling area.
In general bearish outlook on AUD. CPI and PPI numbers due this week.
Lots of important news from Australia and China to come next week. They can act as triggers for price movement against the AUD.