Euro Pound – EUR/GBP fell lower after price rejected its 0.7925 resistance level as we expected in our 4th May 2016 Market Outlook. Traders who went short at the 0.7925 resistance level may consider continue holding onto the short position as price is likely going to continue to decline lower in the coming days. Traders may also trail the stops to lock in the profits in case price reverse back up. The next support level is not found until 0.7695 which offer traders massive profit margin to trade the short side.
Pound Dollar – Rejections is taking place in GBP/USD at the 1.4457 support level. Given that the momentum is still bullish at the moment, traders may consider buying into this market to ride on the bullish momentum. Traders may also wait for confirmation such as price breakout above previous day high before buying into this market to avoid fake setup and increase the odds of the trade.
Kiwi Yen – NZD/JPY continue to consolidates above its key support level at 73.00. The consolidation is getting tighter and we could potentially see a breakout to the down side in the near future. If price breakout below the 73.00 key support level, we are then likely going to see a massive selloff in this market as there’s no immediate support level below and the trend is currently in favor with the bears. Traders may consider selling short when price breakout below the 73.00 key support level to jump on the potential strong selloff.
Posted on 2016-05-06 06:30:39