The US stock markets opened the trading week with risings of 0.7% on the background of the agreements in Greece, which sent the European stock markets 1% up as well. However, those who expected a sharp reaction by the Euro got disappointed since the European currency weakened against the USD.
Today's important news: GBP- CPI; EUR-German ZEW Economic Sentiment; USD-Core Retail Sales m/m.
NZD/USD
The strong rally of the NZD against the USD, which started on December, has slowed down in the last two weeks. The pair broke through the resistance at 0.825 but could not continue rising and got another resistance at 0.84. The break-up level has become support and the NZD slid to this support on Friday and retested it. The buyers should up at this level and raised the kiwi above 0.83 yesterday and it might try to break-through 0.84 on its way to 0.86. However, a break-down of the support might cause a sharper correction downwards to 40%-50% Fibonacci levels, around 0.815.
EUR/NZD
The weakness of the EUR against the USD helped the NZD to resume strengthening against it. The general trend that appeared in the daily/chart is unquestionably bearish, and it was just a matter of time before the NZD would make the reversal, that came after the pair hit the resistance of the 20 EMA. Yesterday's low was set at the level of 1.578 and a break-down of this level might pull the price down to 1.56 and below. Another signal regarding the bearish reversal of the pair is the fact that stochastic levels are getting higher, which means that the up-correction is over or close to be over.
NZD/CHF
The pair made about 400 pips since it broke up the resistance at 0.73, which we analyzed on the beginning of the year. The pair is currently dealing with the resistance at 0.77 and a strong break-up there might lift the NZD to the level of 0.80 versus the CHF. However, the NZD is in overbought situation against most of the major currencies, including the CHF, and therefore the pair might correct down to the area of 0.74-0.75.
Today's important news: GBP- CPI; EUR-German ZEW Economic Sentiment; USD-Core Retail Sales m/m.
NZD/USD
The strong rally of the NZD against the USD, which started on December, has slowed down in the last two weeks. The pair broke through the resistance at 0.825 but could not continue rising and got another resistance at 0.84. The break-up level has become support and the NZD slid to this support on Friday and retested it. The buyers should up at this level and raised the kiwi above 0.83 yesterday and it might try to break-through 0.84 on its way to 0.86. However, a break-down of the support might cause a sharper correction downwards to 40%-50% Fibonacci levels, around 0.815.
The weakness of the EUR against the USD helped the NZD to resume strengthening against it. The general trend that appeared in the daily/chart is unquestionably bearish, and it was just a matter of time before the NZD would make the reversal, that came after the pair hit the resistance of the 20 EMA. Yesterday's low was set at the level of 1.578 and a break-down of this level might pull the price down to 1.56 and below. Another signal regarding the bearish reversal of the pair is the fact that stochastic levels are getting higher, which means that the up-correction is over or close to be over.
The pair made about 400 pips since it broke up the resistance at 0.73, which we analyzed on the beginning of the year. The pair is currently dealing with the resistance at 0.77 and a strong break-up there might lift the NZD to the level of 0.80 versus the CHF. However, the NZD is in overbought situation against most of the major currencies, including the CHF, and therefore the pair might correct down to the area of 0.74-0.75.
Risk Disclosure
Trading and the execution of transactions in currencies, commodities,CFD indexes and other financial products with or without using high financial leverage, is speculative trading of high risk and may cause substantial gain or loss proportional to the size of the collateral, up to the total loss of the collateral sum in a very short period. The fluctuation of the prices and rates in the currency markets, commodities, CFD ,indexes and other financial derivatives are often volatile and there is no accurate forecasting as per the size of the change, its direction and the time frame in which it occurs.You must consider carefully and seriously if this type of financial activity fits your needs, your financial resources and personal circumstances. Since the risk of losing some of the invested funds or all the funds in a relative short period is high; it is recommended that you use for that purpose funds which you designated for speculative financial transactions of high risk.
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