« DailyFX Forex Radio - US Dollar Plummets Despite Strong Durable Goods, New Home Sales - What Happened? | Home | DailyFX Forex Radio - US Dollar Gets A Reprieve Amidst Thin Trading - Major Event Risk Ahead »
CAD/JPY Confirming Move Lower, NZD/USD Turn Opportunity
By DailyFX Updates | August 27, 2007
On Friday, we had said that CAD/JPY was running into a brick wall of resistance. Today, we are beginning to see that weakness unfold as we continue to hover below the resistance point. We remain bearish this currency pair for a move down to 108.50 unless we have a break above 111.75.
Although both CAD/JPY and NZD/USD are trading in a similar pattern given the high yield nature of both currency pairs, we are seeing an equally compelling turn opportunity. The following NZD/USD chart shows the currency pair failing right below the 200-day SMA which coincidently (or not so coincidently) is also the 38.2% fibonacci of the most recent bear wave. If the pair closes negative today, we will also have a shooting star, which is a strong reversal formation. I think we top out here for a move down to 70 cents.
Tags: forex news, forex trading, new zealand dollar
Topics: DailyFX.com Updates |
August 28th, 2007 at 9:52 am
[…] CAD/JPY Confirming Move Lower, NZD/USD Turn Opportunity […]
August 28th, 2007 at 1:17 pm
[…] On Friday, we had said that CAD/JPY was running into a brick wall of resistance. Today, we are beginning to see that weakness unfold as we continue to hover below the resistance point. We remain bearish this currency pair for a move … …more […]