USDJPY technical analysis: 26th December -30th December
Last week USDJPY failed to hold its bullish run and the yen started its bearish recovery after hitting the key resistance level at 118.724.After the FED rate decision, the pair fell down for the 1st time in last trading week. After breaking the 100 weekly moving average it started its bullish run until it hit the key resistance. The pair sharply falls after hitting that resistance level. The drop was towards the 116.32 level which is the critical support level for this pair. The pair might maintain its bearish run in the next trading week. The volatility in the market will remain low for holiday season. So we might see sideways movement in this pair. The market might drop further more until it will hit its next critical support zone. The next critical support level for this currency pair is at 115.55 level. We might see some strong support at this level because this is also the 61.8 Fibonacci level. This level was very significant in the daily chart since the pair broke this level last week.
If the buyer wants to control the market they need to take this pair higher from this level towards 115.50 regions. If the pair manages to break this critical support zone we might see some more bearish movement in the market. Because the pair is in bullish mood many professional traders will look forward to buying this pair in near future. This critical point can be attractive for them to buy the dip. If the pair cannot break this level it will go up again. The overall bias in this currency pair is bullish but in the next trading week we might see some sideway trade in the market.
NZDUSD technical analysis: 26th December – 30th December
The NZDUSD is in bearish mode throughout the last trading week. Since The FED rate decision the pair sharply dropped and made a new lower low on the last trading day. This is the new lower low has breached the lowest level of the price since June 2016. NZDUSD pair is currently under the selling pressure since the pair did not get any support zone on its bearish way. The price falls down nearly 375 pips in the last few days. After breaking the 100 weekly moving average the pair falls down and closed at 0.6880 level which is the key support area for this pair. This is the critical support level for this pair and we might see some rebound from this level. Because of the low volatility in the market for the holiday season, we might see some sideway trade in this area. On the upside are there is key resistance level at 0.6965 level. This is the 38.00 percent Fibonacci level for the pair. If the buyer wants to take control they need to break that key resistance level.
On the other hand, there is a critical support level at 0.6800 level. The pair might touch that level in next week. We might see the pair trading in between 0.6955 level to 0.6800 level. Though there will be low volume trade in the market due to the Christmas holiday season, it is very unlikely that we will see any break out in next trading week. A disciplined trader can money from this area. We might see some rectangular trade in next week which mean upside barrier is at 0.6950 level and downside barrier is at 0.6800 level. There is also a trend line on it bearish run which will also give critical support for this pair. Trend line and key support zone will make sure that market will stay above that point and this support zone might create a strong rally in the NZDUSD pair. The overall trend is bearish for this pair but we can expect some bullish move in next trading week. Watch out those level watch and wait for the break out in downside or upside.
USDCAD technical analysis: 26th December -30th December
After the interest rate hike, a strong bullish rally holds the USDCAD pair. The USDCAD pair was trending upward throughout the week and it’s the top gainer in last week. USD might remain strong in this week also against most of its rival currency in the financial market. The pair makes strong bullish rally after breaking the critical resistance at 1.3400 level. The next critical resistance for this pair is at 1.3578 level. There is a lot of higher high at this level. The 50% Fibonacci level is also held in there which make it more strong resistance level. The pair touched the lower channel line and the pair failed to break that level. Since the pair couldn’t break that level it made the bullish rally in last week. If the pair can break the critical resistance level at 1.3578 then the pair will get ready for another bullish run in the market. This level is going to provide a significant amount of selling pressure to the USDCAD pair and the pair is most likely to fall from that level. If the pair breaks this level then the pair will target the next channel line.
Chanel resistance is going to exhibit significant resistance and the pair might fall down. On the other hand, 1.3400 is next to the critical support area for this pair in the downside area. The price might get rebounded from this support level. But if the pair fails to break this level we might see more bearish pressure in this currency pair. If this pair breaks down this level it will go to the next critical support level at 1.3310. This is the 38.00 Fibonacci percentage level. This support level will give the pair some fresh buying pressure. Though the overall bias for this pair is bullish but we might see some bearish movement in the next week.