Technical analysis on NZDUSD, AUDUSD, and USDJPY: 28th November -2nd December
10 months ago forexsimulation 0
NZDUSD technical analysis: 28th November – 2nd December
Figure: NZDUSD daily chart
The strong rally of the NZDUSD pair has been stalled after it hit the critical resistance level at 0.74834.From that level, the pair sharply breached two critical support level in the market with strong bearish momentum. Last week the pair formed a nice bullish morning star pattern on the daily chart after it the 61.8% Fibonacci support level. Technically the pair is now in bullish mode but the current ongoing strength of the US dollar has created massive fear into the mind of the investor to open fresh long in this pair. If the pair finds enough buying pressure at the current level then the first bullish target for the pair would the next critical resistance at 0.70810.A clear break of that critical resistance level will lead the pair towards the next resistance level at 0.71781.If the pair manages to breach that level then we will see a strong bullish momentum in the NZDUSD pair which will ultimately target the key resistance level at 0.74834.
Though the pair is technically in bullish mode but the recent strength of the dollar might change the market sentiment into the bearish mode. If the critical support level at 0.69856 fails then we will see a sharp fall in the NZDUSD pair. The first bearish target for the NZDUSD pair would the critical resistance level at 0.66729.This level is going to play a significant role in the next move of the NZDUSD pair. From that level, the pair might start its bullish move in the market. However, a daily closing below that level will bring strong bearish momentum in the market in favor of the long-term bearish trend.
AUDUSD technical analysis: 28th November – 2nd December
Figure: AUDUSD daily chart
The has been a sharp fall in the AUDUSD pair after the pair the breakout of the triangle support level at 0.75505.This level was very significant since the 100 days and 200 days SMA was proving strong support to the Aussie dollar at that level. However, the pair eventually managed to breach that level and currently trading below the 100 and 200 days SMA. In the last week, the pair managed to gain some bullish momentum in the market after hitting the minor support level at 0.73070 in the daily time frame. Professional traders are expecting some bullish retracement in the AUDUSD pair towards the dynamic resistance level. If the pair manages to hit the 200-day dynamic resistance level at 0.75205 then the expert will be cautiously waiting for bearish price action signal to enter short into this pair. If the dynamic resistance level manages to restrict the bullish move of the AUDUSD pair then we might see strong bearish momentum in the market in favor of the long-term bearish trend.
The upcoming week has very little to offer to Aussie dollar, on the contrary, the ADP non-firm payroll data is going to be released Friday. If the data comes better than expected then the bullish momentum in the pair will fade away. On the contrary, a negative data might send the price above the dynamic resistance level on the daily chart. But to be precise the AUDUSD pair has very little chance to continue its bullish momentum in the market since the FED is going to hike their interest rate in the month of December. Moreover the last two-month performance of the U.S economy was significantly good which also favors the rate hike decision by the FED. According to FED rate hike monitor tools, there is 91.3 % chance that the FED will hike their interest rate in the month of December. Considering the fundamental and technical parameter the overall bias is strongly bearish for the AUDUSD pair.
USDJPY technical analysis: 28th November -2nd December
Figure: USDJPY weekly chart
There has been a strong rally in the USDJPY pairs in the last week. In the weekly chart, the pair has breached the 50% retracement level where the critical resistance level 112.381 lies. However, on the daily chart the pair has formed a Doji which strongly suggest that a minor bearish correction is imminent in the USDJPY pairs. If the current resistance level at 114.00 level manages to restrict the bullish move of the USDJPY pairs then the pair will lead towards the minor support level at 112.381.A daily closing below that minor support level will create decent selling pressure in the market which will eventually lead this pair towards the next critical support level at 110.839.The pair is most likely to find strong support from that level from which we can see another sharp rise in the price of this pair.
The recent week is very important for the USDJPY pairs since the US ADP Non-firm payroll data will be released on Friday. On the event of the presidential election, the dollar has gained immense strength against its all major rivals and if the news release comes better than the forecasted data the will see a surge in the USDJPY pair towards the key resistance level at 115.40.This level is going to provide a significant amount of selling pressure to the USDJPY pairs since the long term 61.8% Fibonacci retracement level also lies at that point. However, if the pair manages to breach that level then we will see a strong bullish rally in the USDJPY pairs towards the next key resistance level at 118.585.