Daily Market Report – NZD/USD Falling Wedge Invalidated October 20, 2017

NZD/USD Erases Everything

The NZD/USD plunged aggressively in the yesterday’s trading session and erased the last week’s gains. Price ignored several downside obstacles and closed much below the 0.7055 previous low. However, remains to see if this is a valid breakdown, or the rate will come back higher. Technically, it could come to retest the broken levels before will resume the downside movement.

Is on a declining path and could reach fresh new lows in the upcoming weeks, this scenario will take shape only if the USDX will have enough energy to climb higher again.

The NZD/USD dropped somehow surprisingly as the USDX has dropped significantly on Thursday. The dollar index moves in range on the short term and still maintains a bullish bias despite the last day’s drop. I’ve said in the previous days that the USDX could decrease a little again because I don’t believe that will have enough directional energy to take out the 93.81 static resistance.

20nzdusd

Price dropped like a rock and now stands below the 0.7055 previous low and below the median line (ml) of the minor descending pitchfork. A valid breakdown below the median line (ml) signals a further drop in the upcoming period, but a fakeout will drive the rate towards the 0.7055 level again. I’ve said in the last days that technically it should come down to retest the median line (ml) after the retest of the wl5 and after the failure near this level and above the 50% Fibonacci level.

USD/CHF Valid Or False Breakout?

20usdchf

The rate plunged and dropped much below the sliding parallel line (SL) of the descending pitchfork, but failed to stay there and has squeezed a little. Price continues to pressure the sliding line (SL), maybe will be better to stay away from this pair right now because we don’t have any trading opportunity. A buying opportunity could appear if the rate will retest the confluence area formed between the WL2 with the SL.

USD/JPY Upside Paused

20USDJPY

USD/JPY increased little in the first hour and is fighting hard to stay higher and to recover after the yesterday’s drop. Price decreased and failed to reach and retest the median line (ml) of the blue ascending pitchfork, signaling an exhaustion. The Yen increased as the Nikkei stock index dropped after the impressive rally. USD/JPY is trading right above the 112.50 level and could move in range on the short term before will recapture more directional energy to be able to climb much higher.

By Olimpiu Tuns – Market Analyst

Profil1

I graduated a Master in Business Administration, I am a Market Analyst / Trader on Financial Markets (forex, commodities, futures, options) for more than 6 years, I use technical and fundamental analysis for my daily activity. Founder and Market Analyst at ovtbusiness.com (Financial Markets Blog) and contributor on investing.com, actionforex.com,  countingpips.com, forexalchemy.com, etc.

Risk Disclaimer:

Trading, in general, is very risky and is not suited for everyone. There is always a chance of losing some or all of your initial investment/deposit, so do not invest money you can’t afford to lose. You are strongly advised to carry out your independent research before making any trading decisions.  All the analysis, market reports posted on this site are only educational and do not constitute an investment advice or recommendation to open or close positions on international financial markets. The author is not responsible for any loss of profit or damage which may arise from transactions made based on any information on this website.

The post Daily Market Report – NZD/USD Falling Wedge Invalidated October 20, 2017 appeared first on mexgroupblog.

About mexgroup

MultiBank Exchange Group (MEX Group) is a multinational financial derivatives dealer. Established in California in 2005, MEX has offices in several countries around the world, including the US, the UK, Australia and China. Mex Group is regulated by the Australian Securities and Investment Commission (ASIC) in Australia, the Ras al Khaimah Free Trade Zone (RAK) in the United Arab Emirates and the Financial Services Commission (FSC) in the British Virgin Islands. mexgroup.com

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Daily Market Report – NZD/USD Falling Wedge Invalidated October 20, 2017

NZD/USD Erases Everything

The NZD/USD plunged aggressively in the yesterday’s trading session and erased the last week’s gains. Price ignored several downside obstacles and closed much below the 0.7055 previous low. However, remains to see if this is a valid breakdown, or the rate will come back higher. Technically, it could come to retest the broken levels before will resume the downside movement.

Is on a declining path and could reach fresh new lows in the upcoming weeks, this scenario will take shape only if the USDX will have enough energy to climb higher again.

The NZD/USD dropped somehow surprisingly as the USDX has dropped significantly on Thursday. The dollar index moves in range on the short term and still maintains a bullish bias despite the last day’s drop. I’ve said in the previous days that the USDX could decrease a little again because I don’t believe that will have enough directional energy to take out the 93.81 static resistance.

20nzdusd

Price dropped like a rock and now stands below the 0.7055 previous low and below the median line (ml) of the minor descending pitchfork. A valid breakdown below the median line (ml) signals a further drop in the upcoming period, but a fakeout will drive the rate towards the 0.7055 level again. I’ve said in the last days that technically it should come down to retest the median line (ml) after the retest of the wl5 and after the failure near this level and above the 50% Fibonacci level.

USD/CHF Valid Or False Breakout?

20usdchf

The rate plunged and dropped much below the sliding parallel line (SL) of the descending pitchfork, but failed to stay there and has squeezed a little. Price continues to pressure the sliding line (SL), maybe will be better to stay away from this pair right now because we don’t have any trading opportunity. A buying opportunity could appear if the rate will retest the confluence area formed between the WL2 with the SL.

USD/JPY Upside Paused

20USDJPY

USD/JPY increased little in the first hour and is fighting hard to stay higher and to recover after the yesterday’s drop. Price decreased and failed to reach and retest the median line (ml) of the blue ascending pitchfork, signaling an exhaustion. The Yen increased as the Nikkei stock index dropped after the impressive rally. USD/JPY is trading right above the 112.50 level and could move in range on the short term before will recapture more directional energy to be able to climb much higher.

By Olimpiu Tuns – Market Analyst

Profil1

I graduated a Master in Business Administration, I am a Market Analyst / Trader on Financial Markets (forex, commodities, futures, options) for more than 6 years, I use technical and fundamental analysis for my daily activity. Founder and Market Analyst at ovtbusiness.com (Financial Markets Blog) and contributor on investing.com, actionforex.com,  countingpips.com, forexalchemy.com, etc.

Risk Disclaimer:

Trading, in general, is very risky and is not suited for everyone. There is always a chance of losing some or all of your initial investment/deposit, so do not invest money you can’t afford to lose. You are strongly advised to carry out your independent research before making any trading decisions.  All the analysis, market reports posted on this site are only educational and do not constitute an investment advice or recommendation to open or close positions on international financial markets. The author is not responsible for any loss of profit or damage which may arise from transactions made based on any information on this website.

The post Daily Market Report – NZD/USD Falling Wedge Invalidated October 20, 2017 appeared first on mexgroupblog.

About mexgroup

MultiBank Exchange Group (MEX Group) is a multinational financial derivatives dealer. Established in California in 2005, MEX has offices in several countries around the world, including the US, the UK, Australia and China. Mex Group is regulated by the Australian Securities and Investment Commission (ASIC) in Australia, the Ras al Khaimah Free Trade Zone (RAK) in the United Arab Emirates and the Financial Services Commission (FSC) in the British Virgin Islands. mexgroup.com

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