NZD is most affected by USD changes to interest rates because its next in line after NY markets close, its the nation to open Asia trade and NZD Dairy is priced to USD. Most importantly, NZD sits behind the smartest and most forward RBNZ. As usual, Its the only central bank ahead of the curve. NZD/USD has been volatile and will continue its volatility to beat its counterparts AUD/USD, USD/CHF and USD/JPY.
The must break line for NZD below is 0.7231 then further supports at 0.7110 and 0.7016. Above 0.7453 and a stasis line exits as next break point. Current NZD is overbought and we’re looking lower.
Further why NZD trades is the common theme this week for a vast majority of pairs is a tight tight market and containment within 40 pip ranges. 40 is the number this week as overbought oversold hits current prices.
AUD/USD’s range problems as mentioned must result in a higher AUD to relieve the pressure. What happened was AUD went higher. Supports exists at 0.7531 and 0.7520. We’re looking lower for AUD and selling rallies.
Remember January’s CAD/MXN at overbought 15.00’s. CAD/MXN jumped to 16.70 then went on a long dive to current 13.44. Its price is low low especially in relation to CAD/JPY, EUR/USD, CAD/USD and EUR/USD. Yet CAD/MXN’s price on its own volition is low low. Above breaks are located at 13.99 and 14.03 vs below at 12.96 and 12.47.
CAD/JPY is overbought and big break below is located at 83.01.
CAD/ZAR Resistance points 9.7629, 9.7649 and 9.8845 Vs below at 8.6247. Higher in CAD/ZAR sends EUR/USD much lower. CAD/ZAR at current 9.66 and break at 9.76 then look out below EUR/USD.
EUR/JPY. Supports 122.59 and 121.52. Not a favored long pair as massive resistance has been built into current prices for the past week, today is no different as 124.90’s should contain EUR/JPY.
AUD/CAD. Support 0.9916 Vs Resistance at 1.0076 and 1.0135. Explains EUR/JPY lack of upside.
EUR/USD. Stuck today from 1.1144 to 1.1249. We selling above and buying below.