EUR/JPY rebounded from the 123.00 level on the H4. The pair formed a “piercing line” pattern.
NZD/USD will soon reach its limit
Information is not investment advice
The USD is getting weaker in many currency pairs as the Federal Reserve officials hinted at the possibility of further rate cuts this year. However, these pairs are also testing major resistance levels and may turn around soon if/when the US data improves. Notice that the expectations of lower rates in the United States are largely priced in.
As a result, we want to bet that NZD/USD won’t be able to rise above 0.6710 (50% Fibo of the March-May decline, 200-day MA, 50-week MA) and turn down. The target will lie at 0.6655/40 (38.2% Fibo, 50-day MA) and maybe even 0.6590 (23.6% Fibo).
The short-term picture looks bullish, and NZD/USD will be able to reach 0.67 as long as it’s trading above 0.66.
NZD/CAD has reached a 200-week MA (0.8950) and formed a “shooting star” candlestick on the D1. On the H4, we see a lower high.
XAU/USD has moved this week in line with its short-term uptrend and the overall long-term uptrend reaching $1 865.
U.S. stocks are set to open lower Friday, continuing the recent selloff with investors' confidence hit by a combination of pandemic, economic and political worries
European stock markets largely weakened Friday, with investors concerned that the second wave of Covid-19 cases will halt the region’s nascent recovery.
XAU/USD formed a “hammer” candlestick on the D1 ahead of the 100-day MA. The price made a higher low on the H4 and now only the resistance at $1 877 separates the precious metal from further gains.