Bottoms 0.8556 and 0.8555. Why here. Because next range bottoms below 0.8553 and 0.8513. If 0.8513 breaks below then like NZD/USD, both pairs head far far lower. Price then literally goes into almsot free fall to offer what 0.8513 means. Overall for both pairs, ranges are very wide. But they are holding prices in small containment ranges.
Again prices trade at 5 year yields for all NZD pairs. Two small ranges exist. The first is a 45 pip range between 0.8599 -0.8553 then 0.8513 if 0.8553 breaks lower. Next range 0.8599 – 0.8644, 45 pip range. Note 45 pip ranges for both. But overbought sell point found at 0.8641.
Points to go higher must break at 0.8598, 0.8599, 0.8610, 0.8618, 0.8621, 0.8623, 0.8628 then 0.8634, 0.8641 sell point. Both points at 0.8598 and 0.8599 decides higher or lower, short or long. But obviously the curve is downsloping so shorts is the way. Should a market fluke occur at sell point at 0.8641 then 0.8652 and 0.8663 next. Its not expected as the range break is found at 0.8644. Note how fast prices move to the respective points and note also how the points are respected. Most important is currency prices at every pip is known, expected and perfectly calculated. Its a market that is absolutely perfect. not one pip can be manipulated. Its absolutely, positively impossible.
JPY cross pairs this week should see volatility, maybe those pairs will be our focus.
Brian Twomey, Inside the Currency Market, btwomey.com