EURUSD has been trading down for the last couple of weeks. The pair pierced through all supports and only now is finding some bids. After good data I expect this market to correct to the upside in the short term The current reversal pattern is consistent and the risk is small.
USDJPY moved substantially from the bottom at around 100 and pushed closed to the resistance at 104. The pair consolidated here for a few days and moved as low as 103.40 yesterday. Since then, the price climbed higher to re-test the resistance/former support at 103.70. I entered a short position at the resistance at 103.70 with the open target. I want to see what the stock will do in the next few days and the reaction to risk events this week.
Kiwi has been declining since the beginning of September. The pair took a tumble on lower than expected growth projections, poor data on dairy prices and slowdown in China. This week we had RBNZ warning to lower interest rates once again. All this saw a huge carry unwind (KIWI is still the currency with highest interest rates among the peers). Today, for a change, we saw better numbers from China; CPI @1.9 VS 1.6 EXPECTED, PPI @0.3 VS 0.1 expected. This might mean that not all things are bad in China yet.
After the longest period of range trading, EURUSD finally broke out of the tight channel ( 1.1251.1130). In today’s session the pair declined to 1.1150, lowest level in weeks. I expect the lower low to be formed around this level and the price to retrace back up to re-test the resistance/former support at 1.1130.
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