NZD/USD: Levels, Ranges, Targets

Only 2 currency pairs among the majors have equal correlational association to their cross pairs, NZD and GBP.

Currently, NZD/USD correlates +90% to NZD/CAD, NZD/CHF, NZD/EUR and NZD/AUD.

For NZD/JPY, the correlation remains negative at minus 0.05. The commonality in JPY pairs is only GBP/JPY correlates to GBP/USD while EUR/JPY correlates minus 52% to EUR/USD and AUD/JPY correlates minus 67% to AUD/USD.

NZD/USD at 0.7300 encounters solid resistance at 0.7445 and is the 10 year average. Next above 0.7445 comes 0.7567. On the bottom exists many solid supports at 0.7190, 0.7167 and 0.7140. Overall, the range from 0.7190 to 0.7445 is 255 pips. In the larger picture, 0.7100’s was built upon 0.6600 and 0.6800’s. From 0.6600, NZD/USD is dead center middle range. In the interim, 0.7100’s was built upon the current base at 0.7056.

Longs must hold above 0.7291 and 0.7262 then  overbought begins at about 0.7380; to 0.7409. A break of 0.7291 and 0.7262 then watch for the next level at 0.7190. Long any drops has been the long standing strategy.

Brian Twomey, Inside the Currency Market, btwomey.com

 

GBP/JPY: Levels, Ranges, Targets

 

The first point of note in GBP/JPY is the bottom at 132.02 is holding. This is the long point. Below 132.02 then next comes 131.50, 131.36 and 131.22. Above targets are located at next 132.76, 132.82 and 132.96.

Above 132.96 then comes 133.09 and 133.54. The point 133.54 is top channel for today and a big level because a break opens the flood gates to the overall vital break at 134.66.

Overall, GBP/JPY base is found at 129.91 and supports at 130.39 and 130.38.

 

Brian Twomey, Inside the Currency Market, btwomey.com

GBP/NZD: Levels, Ranges, Targets

GBP/NZD  hit lows at 1.7643 and those lows are located from today’s 1.7616 to 1.7653. Longs should be taken in this current area. Next above comes 1.7661 and a vital break to see next 1.7722. The 1.7700’s are wide open and this derives both from my daily and full Stat model. Above 1.7722, then next above is 1.7790. So a wide 68 pip range from 1.7722 to 1.7790.

Below, the base is now 1.7440 and next supports 1.7504 and 1.7598. Then begins 1.7616, 1.7653 and 1.7661. My current longs must break 1.7661 then its home free to 1.7722.

Overall, the big line break rose to 1.8115 and only a break of 1.8077 would see a run to 1.8115. Above 1.7790 then targets become 1.7820, 1.7823, 1.7830 and 1.7850. What is 1.7850 is a huge break to open 1.7927’s. Don’t look for 1.7850 to break today unless extraordinary circumstances hits the markets. We can view today;s overall range from 1.7616 to 1.7850. Its overall 234 pips but the average range is exactly 130 pips. GBP/NZD is a monster currency pair and not for new traders to consider.

 

Brian Twomey, Inside the Currency Market, btwomey.com