Scope to retrace further to the 61.8% fib reaction and 161.8fe f the C corrective wave. 1.2840 and 1.2690.
Ethusd dn 7% overnight and tested the parallel support zone 358$-354$$. On the H4 chart, A-B-C corrective structure pointing to 360$, whereas on the daily chart the same corrective structure pointing to 200.0$. The daily studies are remaining mixed. A move below 360$ could open gates to sub-300$, 270 and even 200$.
With the currency crisis in Turkey, we expect the JPY remain elevated in the coming days, especially against the EM currencies ZAR and MXN. This morning ZARJPY breaking down the key support levels and fell rapidly. Weekly ceiling placed between 7.777-7.783. Sell at every spike with a target at 78.%-8.0% fib reaction
With the quiet wage growth and low inflation, the RBA likely to paint a neutral color in August meeting. With the low inflation, we expect the RBNZ is expected to keep the OCR at 1.75%. The bulls should hold the 1.0850 to continue the uptrend to 1.1020 and 1.1070-1.1100 with potential resistance exists at the 61.8% and 80.0% fib reactions.
EURNZD: ECB June meeting=RBNZ August meeting At June’s ECB meeting the rate hike timing factor triggered the tremors, sent EURSUD to 1.1560 down nearly 2.0%. Fast forwarding to today’s RBNZ meeting, NZD tumbles after RBNZ delay rate hike for another year. At the time of writing NZD down more than a percent across the board. The cross just has been run through the...
EURGBP was quiet last week within the recent ranges with no significant technical developments. The euro cross manages to keep last week’s gains and is now trading at the key resistance zone 0.8935-0.8960. Looking ahead the euro calendar is quiet besides the UK Q2 GDP is the catalyst for the cross this week. A daily close above 0.8970 could rally further to 0.9030...
We see levels below 6800$ (earlier breakout level) as likely to accelerate further weakness, and we target a move towards 6000$ and sub-6000$. If the earlier shoulders lost, a move towards the lower end of the falling wedge is beckon.
The EURUSD finally re-tested the parallel support finds at 1.1575. A break of this would be needed to initiate a more downward pressure to 1.1550 and 1.1530, finally 1.1500. A daily close below 1.1500 would expose to the immediate support finds at 1.1450. Resistance seems at 1.1620 and 1.1650. Ahead of today’s key risk event we are more focusing on 1.1530-1.1500...
The cross has been consolidating between 1.9190-1.9365 levels. The level to watch in the cross is 1.9380 its 200EA (monthly), advance above that has potential to elevate as far as 1.9430-1.9460, 1.9500 and 1.9580.
We continue to foresee broad GBPUSD range-trading, with some upside risk if price through the descending wedge pattern. Ahead of the BOE event, we likely to trade between 1.3145-1.3050 with a neutral RSI study. The next physiological support finds at 1.3000; breaking below there, exposes the downside risk to mid-July low 1.2950. It’s worth considering the...