Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

NZD/USD: A Break Below 6190 Is A Sell Signal

Published 06/23/2022, 05:09 AM
Updated 07/09/2023, 06:31 AM

AUD/USD has minor resistance at 6950/70 again today (a high for the day exactly here yesterday). A break above 6980 meets strong resistance at 7020/30. Shorts need stops above 7055. I cannot see a support level where I would attempt along anywhere above the May/June low of 6850/27. A break below 6810 however signals further losses to 6760/50.

NZD/USD has key support at 6230/10 (a low for the day just 11 pips above here yesterday). Longs need stops below 6190. A break lower is a sell signal targeting 6100/6080. We should have strong resistance at 6390/6410. Shorts need stops above 6430.

USD/JPY with a break higher which holds above 135.55 triggers a buy signal targeting 136.40/60 and 136.90/99, perhaps as far as 137.40/50 this week. We have important support at 135.55/35 (with a low for the day 12 pips above yesterday). Longs need stops below 135.15. A break lower means this may be a false break higher and we will wait for Friday's weekly close to gauge direction in to next week.

EUR/JPY tests the June high at 144.15/25. Holding this area (a high for the day here yesterday) forms a double top sell signal. However, bear in mind that USD/JPY beat the previous high yesterday, so there does appear to be continued weakness in the yen. A sustained break above 144.30 should be a buy signal. With no sell signal yet, the downside should be limited with minor support at 143.40/20 and strong support at 142.5/65. Longs need stops below 142.45.

EUR/USD is seeing a low for the day at support at 1.0460/50 with a recovery through minor resistance at 1.0545/55 to hold at last week's high at 1.0600/01. The market is drifting without direction for 4 days. A break higher, however, could make it as far as resistance at 1.0660/62. Minor support at 1.0460/50 could hold the downside again today. Below 1.0430 however risks a retest of the double bottom low at 1.0360/50. Longs need stops below 1.0325.

USD/CAD shot higher to the target of 1.2995/99. Gains are likely to be limited but above 1.3010 can target 1.3030. Failure to beat 1.3000 increases the chance of the head & shoulders forming, with neck line at 1.2930/20. A break below 1.2910 is a sell signal initially targeting 1.2870/60. We could pause here but longs look risky. A break below 1.2850 risks a slide to 1.2800.

Currency Pair Levels

Latest comments

Can you provide analysis on Indian Index Nifty50
Can you also provide reports for Indian index Nifty50 ?
Thank you for sharing the article 💯
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.