FX & Currencies
Prodigy tradersdna: #EURUSD expected towards 1.0700
14 Jan 2016
#NZDUSD, this has been a good moneymaker for our live trade room members this week. Selling opportunities have abounded as it has rallied into the resistance zone, closer towards the 0.6565-level and the green-shaded area that you see at the very bottom of the chart. You could see multiple attempts into this area and fall off of the resistance zone. We could see this level here coming off about 30 to 35 pips. The next time it challenged here into the 0.6560-level coming off about 45 pips.
And currently even coming off right now about 15 to 20 pips, but of course we still expect the market to continue to pressure back down here for the NZDUSD. It has provided multiple opportunities to sell the 0.6565-level so far this week.
#AUDUSD, of course have been trading the downtrend pressure that this currency pair have seen since last week. We see the market challenging and rising into the resistance zone, the pink-shaded area here on the chart. We’ve had multiple opportunities here to take into a sell on the AUDUSD.
As long as it stays within the pink zone – that’s been 0.7010 and 0.7030 -, We should expect we’re looking for the fall off and the turn back down in the direction of the previous trend. We see it rising within this black trend channel right now.
A breakdown of that, of course we look to target all the way back once again down towards the yellow-shaded area. Our risk of course in this scenario is that it eventually breaks back above 0.7030 and we challenge the next resistance, which is back here to the green zone. So, use appropriate risk strategies and stop management if you’re going to be trading the #AUDUSD today.
Finally, #EURUSD, a couple of different things to point out here on the daily timeframe. A previous downtrend where you can see the blue trend line. We could see it falling off; quite a significant downtrend. A little bit of a rally. Several weeks ago, we saw a little bit of a rally after some ECB news, pushing back into the 100-period exponential moving average. That’s the green line here on the daily EURUSD chart. That’s the green line. You could see multiple challenges into that moving average. The top red trend line here of the channel holding as our resistance level here within the falling channel here.
If it continues to fall back down and challenge the bottom of the channel, we’re looking for it back down towards 1.0700, the blue zone, or maybe even into the 1.0600s, the orange zone at the very bottom of the chart, and of course that would be a return of the downtrend pressure here for the EURUSD.
Let’s take it down to the four-hour timeframe, and this is what we’re going to be looking for today. A breakdown of our green-shaded area, then it is a breakdown of the 1.0800 to 1.0810-level. We need an open and close underneath here. A single candle body open and close on the four-hour timeframe to give us higher confidence that it’s going to continue to pressure back down here towards the blue-shaded area. It hasn’t done it yet, so we still have to be patient and wait for the right opportunity to get into this currency pair.
The risk in this scenario, if we decide to get into it, is that it turns back higher, gets back above 1.0850 and starts working its way back up towards the orange-shaded area at the top of the chart. So, that’s what we’re looking for. The breakout under the green zone – confirm breakout – and targets for the blue zone today for the #EURUSD.
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