General analysis about forex market: 26th December – 30th December

NZDUSD Technical analysis

The NZDUSD has remained bearish in last trading week. Since The FOMC rate decision day, the pair was going down in the last eight trading day. The pair made new low in last week. The NZDUSD created the new lower low breaking the support of last June. The pair has been fueled up by massive selling pressure throughout the week. The price falls down nearly 375 pips in the last few days after breaking the 100 weekly moving average. The pair didn’t manage to find any key support level in near distance that’s why the market participated in a free fall. The pair closed at 0.6880 level which is the key support area for this pair. We might see some rebound from this level. There is a lot of higher high and lower low on this level and this made this level a sweet buying spot for the price action traders. We might have to wait for another bearish movement since the pair will take some time to break this level. Meanwhile, we are expecting a sideway trade in this area. And if the seller wants to take control over buyer they need to do some work.

This strong resistance area at 0.6850 – 0.6880 area are expected to give strong support and create a bullish pressure in the market. But we should keep in mind that until now the seller is controlling the market. So don’t hurry and enter into the market without seeing any definite bullish reversal signal in the market. Buying in the dip may not be a good idea at this time since the dollar is holding its ground firmly in the global market. So we will be waiting on the sideline for the bullish reversal confirmation. There is a trend line bellow this .6840 level and traders will be looking for bullish price action signal to buy the market on the dip. The risk is very limited for this trade since the potential reward is extremely high compared to the assigned stop loss level. Trend line will act as a very strong support and there are too much lower low and higher high in that area which means the scalpers will enter in that level with short term buy a setup to make some green pips. Trend line and key support zone will make sure that market will stay at that point and both this support will try to push the pair higher in the near term future. However, the long-term trend is bearish for this pair but we still can expect some decent bullish move in the NZDUSD pair.

USDCAD Technical analysis

USDCAD is the top gainer in the last trading week followed by the drop in oil price. After The FOMC rate decision and OPEC meeting, the USDCAD pair remained in its uptrend throughout the last week. The pair broke every single key resistance ahead of it and rally hard. The pair breached those 100 days SMA and 200-day SMA after the FOMC rate decision. The bullish rally started after the pair hit the critical support level at 1.3400 level. .This is also the 61.8 Fibonacci retracement level (drawn from the swing high of 14th November to swing low 14th December 2016) the pair also breaks that level with ease. However, the price fell sharply after touching that 61.8 Fibonacci retracement level but eventually it broke this key resistance level in the next trading day. Due to the sudden drop in oil price, the buyers took control of the USDCAD market in the last week. After breaking this key resistance level the pair rallied hard for the next couple of days. The USDCAD managed to make a new high at 1.3557 level due to intensive buying pressure. The whole week was bullish for the USDCAD pair and it ended up with a strong bullish sentiment before the market close.

Next week we might see some fresh buying pressure in this pair. The next key resistance for this pair at 1.3580 level and we might see some strong resistance at this level. However, traders are expecting some bearish move from that level since the buyers will be take profiting out after it hits that critical resistance level. This 1.35800 level is the key high marked from last December rally. Some seller might enter in that level but keep in mind that buyer is controlling this market now. So it’s better to stay on the sideline before we execute any short orders in the market. If the pair manages to break this key resistance zone we might see more buying in this pair and traders will be looking for the breakout of the key resistance level also. A strong breakout of that resistance level will lead this pair higher towards the next critical resistance level. On the contrary, the key support level at 1.3400 level is still intact. If the pair manages to break that support level in next week then this might lead the pair towards the next support level at 1.3340 level. The overall bias for this pair remains bullish in the next week but we might see a sideway market due to low volatility.

EURUSD Technical analysis

The EURUSD end up with a positive gain in last trading day. The pair moved lower during the opening of the last week but the buyers eventually came back in the market after a couple of trading days. The pair is now trading in between 100 hourly moving average and 200 hourly moving average. The next resistance area for this currency pair is at 1.0480 level. If the pair manages to break this key resistance area we will see some decent buying pressure in the market. The pair might go up until it will find its next key resistance area. The next key resistance level for this pair is at 1.0550. If the pair manages to break this resistance level then it will target to the next key resistance zone which is on 1.0610 level.

The overall trend for this pair is bearish. The next key support zone for this pair is at 1.0420 level. If the seller wants to remain in control they need to push this pair lower from that level. If the pair manages to break that support level it will move towards the next support level which is at 1.0350. This is also the lowest level for this trading year. If this level fails to hold this pair we might see further fall downside in the near term future. But we might not see any massive movement in the next trading week because the volatility will be low in the next trading week for the Christmas and New Year eve. The overall bias for this pair is bearish so be careful about buying this currency pair.


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