Kiwi bears received encouragement during Wednesday evening following the Reserve Bank of New Zealand’s Governor Wheeler hinting of possible easing in the near future. The pair was already bearish on the daily timeframe and yesterday’s statement dragged prices closer to the 0.6400 support. Although the technicals are skewed to the downside, prices have been in a wide 150 pip range since the decisive breakdown below the 0.6550 support on the 8th of January 2015. Another sharp breakdown below 0.6400 should encourage a further decline towards the next relevant level based at 0.6250. If bulls manage to take control and breach back above the 38.2% Fibonacci 0.6550 resistance, then this daily bearish outlook becomes invalidated.
The EURCHF is technically bullish on the daily timeframe as since the start of 2016 on the daily timeframe there have been consistently higher highs and higher lows. Prices are trading above the daily 20 SMA while the MACD has also crossed to the upside. A solid daily close above 1.1050 should encourage a further incline towards 1.1200.
The bearish sentiment towards the Sterling is extremely strong and this has been a major driving force sending the GBPAUD on a downwards trajectory. Prices are trading below both the 20 and 50 SMA while the MACD has also crossed to the downside. The current bearish channel has been respected since August 2015 and a breakdown below 2.02 suggests a further decline to 2.000.
This pair is may be in the process of turning bearish on the daily timeframe as prices have cut through the daily 20 SMA. A solid daily close below 2.980 may encourage sellers to send prices towards the 50 SMA region which is currently based around 2.940. The MACD still trades to the upside and as such suggests the potential for a bounce in prices if the 2.940 acts as a solid support.
The USDCNH is an interesting pair which has exhibited volatile tendencies and abrupt movements on various occasions. This pair is technically bullish and a strong breakout above 6.6300 should encourage a further appreciation towards 6.7500 in the longer term. Prices are currently trading above both the daily 20 and 50 SMA while the MACD has also crossed to the upside.
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