Our views

AUD/NZD remains on the back foot around 1.0610 amid the early Wednesday morning in Asia. The pair snapped a two-day winning streak the previous day while taking a U-turn from a short-term falling trend line resistance.

Considering the bearish MACD, as well as sustained trading below an immediate resistance line, the quote is likely to extend its weakness.

In doing so, a horizontal area comprising lows marked since the early May month, around 1.0570/80, appears on the bears’ minds. However, a joint of 100/200-day SMAs near 1.0535/40 will be a strong support to challenge the sellers afterward.

In a case the pessimism prevails past-1.0535, odds of the AUD/NZD price-drop to 1.0500 threshold, before visiting April 21 low around 1.0470, can’t be ruled out.

Contact our advisors through website chat

GBP/CAD has dropped below 1.69, the lowest since May. Concerns about coronavirus in the US and the UK – amid a potential lockdown of Leicester – and Brexit are weighing on the pound.

Contact our advisors through website chat

GBP/JPY seesaws around 135.00 amid the pre-Tokyo open trading on Wednesday. The pair stepped back from a multi-day high after piercing the neckline of a short-term Head-and-Shoulders bullish technical formation on the four-hour chart the previous day.Following that, the mid-June top surrounding 136.40 might offer an intermediate halt during the pair’s rise towards the June month’s top near 139.75, closely followed by 140.00 psychological magnet.

Contact our advisors through website chat

The Swiss Franc has surged by 4.29% against the Japanese Yen since May 6. The currency pair tested the upper boundary of an ascending channel pattern at 113.31 on June 3.

Given that the CHF/JPY exchange rate is currently trading near the upper line of the ascending channel pattern, a breakout could occur during the following trading sessions.

However, if the ascending channel holds, bears are likely to pressure the currency exchange rate lower towards the weekly pivot point at 111.63 during next week's trading sessions.

Contact our advisors through website chat

The chart below shows that there were clearly visible bullish patterns calling for a breakout higher. EURNZD formed a bullish flag breakout pattern (purple) and broke above the top of flag signalling traders that a move higher was in the works. More upside confirmations were the bullish divergence patterns (green, light blue, orange) that formed which allowed to squeeze the BUY trigger.

Contact our advisors through website chat