EUR/USD is piercing below lower bound of broad consolidation in force since 2015 (1.0465). A weekly close below 1.0465 remains needed to deepen the correction.
In such a case, the pair will head to next significant support at 1.0180/1.00, 76.4% retracement of 2000-2008 up trend. 1.03/1.0260 is interim support
USD/JPY tested pivotal graphical level of 100 and also probed the multiyear trend support in June this year. Since then it has been undergoing a steady up move and it has also met the projected target for a double bottom formation confirmed The pair is now closing in on a multi month descending trend near 119.50, also the 76.4% retracement of the whole down move from June 2015 highs. Daily RSI is hovering close to a ceiling which denotes possibility of a consolidation once aforementioned levels are achieved.
116.70/50 will be an immediate support while the 20 day MA at 114.70 will be important. In the event of persistent bullish momentum, next key hurdle will be at the multi decade descending trend near 123/125.
NZD/USD tentatively pierced our advocated resistance of 0.7190/0.7250 which happens to be a multi month ascending trend but it has quickly reversed and is now heading towards October 2015 highs, also the 50% retracement of up move from September last year. It is noteworthy that the pair has confirmed a H&S pattern which denotes a bearish reversal.
With daily MACD in negative territory, the support at 0.69/0.6860 may prove to be temporary. A break below will mean a deeper correction initially towards May lows of 0.6670 and even towards potential of the pattern at 0.6540.
Copyright © 2016 Societe Generale, eFXnews™Original Article
