Market analysis on AUDUSD, NZDUSD, and EURJPY: 17th October -21st October
5 years ago forexsimulation 0
AUDUSD: 17th October -21st October
Figure: AUDUSD daily chart
The AUDUSD pair has shown significant bullish momentum in the market in the last couple of months. The recent crisis in the U.S economy has also intensified the bullish move of the AUDUSD pair. Currently, the price has formed nice ascending channel like structure in the daily chart. The first critical resistance level for the AUDUSD pair lies at 0.76954 level. A valid break of that level is required to confirm the bullish move of the AUDUSD pair. In the last week, price tested the triangle support zone at 0.75057 and formed a nice bullish pin bar in the chart. Followed by the bullish pin bar the pair has formed a white bullish candle before the closing of the week which clearly indicates a strong possible bullish move in the upcoming week. In the eyes of professional traders buying this pair against the long-term prevailing bearish trend is still worthy since the potential reward is extremely high compared to the risk amount. The first bullish target for the pair would be triangle top resistance level. A valid of the triangle top resistance level will confirm the end of the long-term bearish trend in the market. A daily closing above the critical resistance level at 0.76954 level will lead this pair towards the next critical resistance level at 0.7830 level. On the contrary, if the pair breaks the triangle support zone at 0.75050 level then we can expect a sharp fall in the price towards the 0.7160 level. Traders are expecting a short-term bounce in that level but ultimately the price will fall towards the 0.6820 level. A valid break of that level will confirm the bearish continuation in this pair. Considering all the parameters, short-term buying opportunity will be present in the upcoming week. Those who are bullish on this pair can buy the AUDUSD pair near the triangle support zone.
NZDUSD Forecast: 17th October – 21st October
Figure: NZDUSD daily chart
The NZDUSD pair is now in correction after the recent bullish move on the daily chart. The pair falls sharply in the last week but eventually found some support near the support level at 0.70545.Investors are expecting bullish tone from the NZDUSD pair in the upcoming week since the interest rate hike decision by the FED is postponed. To be precise the U.S economy is still struggling hard to counter its major rivals in the market. The first bullish target for the pair would be the critical resistance level at 0.72266.A valid break of that level will bring further bullish momentum in the market towards the next critical resistance level at 0.73745 level. The trader is expecting minor bearish pressure from that level since the next resistance level is the key resistance level for this pair. If the pair manages to break the high of 9th July 2016 then we can expect that the medium-term uptrend in the NZDUSD forex pair is strongly established. A daily closing above the 0.74783 level will bring fresh buying pressure in the market which will ultimately challenge the next critical resistance level at 0.7600 level. On the contrary, in order to establish bearish momentum in the market, the pair needs to overcome lots of major support level on the daily chart. If the pair manages to breach the current support level at 0.70545 level then the pair will ultimately challenge the 50% Fibonacci retracement level in the daily chart. A daily closing below that level will bring sharp fall in the pair towards the next critical support level at 0.67848.This level is going to provide a significant amount of support the NZDUSD pair since this critical support level also coincides with the 61.8% Fibonacci retracement level. Considering all the parameters, the overall condition for the NZDUSD pair remains bullish in the upcoming week. Traders are advised to use bullish price action confirmation signal before they go long in this pair.
EURJPY Forecast: 17th October -21st October
Figure: EURJPY daily chart
The last week movement in the EURJPY pair was very much limited within 115.80 level to 113.80.Professional traders are overly cautious about trading this pair since the triangle pattern might be breached in the upcoming week. The market closed with the bullish sentiment in the last week and most likely to test the resistance level at 116.20 level. If the pair manages to breach that level then we will see a nice bullish move towards the long term bearish trend line resistance. The pair is most likely to find strong selling pressure near the116.20 level. A daily closing above that level will bring this pair towards the 118.42 level. This area is going to play a significant role in the next possible move, of the EURJPY pairs. A valid break of that level will confirm the end of the long term daily bearish trend in the market. With a valid break of the resistance level at 118.482, the pair will is most likely to head towards the 122.00 level. On the contrary, the first bearish target for the pair would the critical support level at 112.40.A valid break of that will confirm the continuation of the bearish trend in the market. If the triangle support level fails then the pair is most likely to test the critical support level 109.60.Considering all the parameters, the EURJPY pair has more downside potential in the upcoming week. So selling this pair at a higher price or at critical resistance level with bearish price action confirmation signal is our priority for the upcoming week.