Good day traders,
How was your weekend?, I trust you had a great time. Are we all ready for what’s about to go down this week?
Oh yeah…, I am ready, let’s go straight into the market and see what’s going down this week.
1. NZD/JPY
Same time last week we analysed NZD/JPY. You can check it out right here
As soon as the first support level (74.768) was broken on Wednesday, the bears took charge, and in less than 48 hours over +80 pips were spewed tho those traders who paid close attention to this pair and a second support level (73.729) got broken .
This week, we are starting off with a breakout from Friday’s bearish activity. If you ask me about what are the probable moves of NZD/JPY this week, I will simply tell you that:
I expect a retracement on Monday and we may see the bears gradually moving into the market from Tuesday or Wednesday this week.
2. GBP/CHF
After a brief consolidation at the beginning of the week, GBP/CHF continued it’s bullish move which dramatically took price above a former resistance level (1.29659).
At the close of the market on Friday, the bulls still closed strong. Depending on the activity of pounds over the weekend, market may resume with a bullish gap as the market resumes.
On the other hand, we may also see a slight retracement before the bulls drive price above level 1.30776.
3. EUR/AUD
Looking at the weekly chart, there has been a major uptrend since February 2017. This uptrend crossed a MAJOR RESISTANCE LEVEL (1.61484) on the weekly chart, after which, a consolidation was formed.
Narrowing the EUR/AUD pair to the daily chart, that consolidation formed on the weekly chart is actually a minor descending channel on the daily chart.
Friday’s bullish candlestick broke out of the descending channel’s resistance level (1.62651). Currently, another resistance level (1.63553) is being tested.
There is every likelihood that we may either see a pull-back of this pair back to level 1.62558 (Where the former descending channel’s resistance level becomes a key support level) or we may see a breakout of the current resistance level. This breakout should send bulls into another upward frenzy, which is above 1.64890 price level.
That said, I wish you a pip-full week as we progress into the second week of the month of October.
Kindly comment or share if our analysis has been helpful to you and let us know if you have contrary views.
