Daily Market Report – NZD/USD Falling Wedge Invalidated October 20, 2017


NZD/USD Erases Everything

The NZD/USD plunged aggressively in the yesterday’s trading session and erased the last week’s gains. Price ignored several downside obstacles and closed much below the 0.7055 previous low. However, remains to see if this is a valid breakdown, or the rate will come back higher. Technically, it could come to retest the broken levels before will resume the downside movement.

Is on a declining path and could reach fresh new lows in the upcoming weeks, this scenario will take shape only if the USDX will have enough energy to climb higher again.

The NZD/USD dropped somehow surprisingly as the USDX has dropped significantly on Thursday. The dollar index moves in range on the short term and still maintains a bullish bias despite the last day’s drop. I’ve said in the previous days that the USDX could decrease a little again because I don’t believe that will have enough directional energy to take out the 93.81 static resistance.

Price dropped like a rock and now stands below the 0.7055 previous low and below the median line (ml) of the minor descending pitchfork. A valid breakdown below the median line (ml) signals a further drop in the upcoming period, but a fakeout will drive the rate towards the 0.7055 level again. I’ve said in the last days that technically it should come down to retest the median line (ml) after the retest of the wl5 and after the failure near this level and above the 50% Fibonacci level.

USD/CHF Valid Or False Breakout?

The rate plunged and dropped much below the sliding parallel line (SL) of the descending pitchfork, but failed to stay there and has squeezed a little. Price continues to pressure the sliding line (SL), maybe will be better to stay away from this pair right now because we don’t have any trading opportunity. A buying opportunity could appear if the rate will retest the confluence area formed between the WL2 with the SL.

USD/JPY Upside Paused


USD/JPY increased little in the first hour and is fighting hard to stay higher and to recover after the yesterday’s drop. Price decreased and failed to reach and retest the median line (ml) of the blue ascending pitchfork, signaling an exhaustion. The Yen increased as the Nikkei stock index dropped after the impressive rally. USD/JPY is trading right above the 112.50 level and could move in range on the short term before will recapture more directional energy to be able to climb much higher.

By Olimpiu Tuns – Market Analyst


I graduated a Master in Business Administration, I am a Market Analyst / Trader on Financial Markets (forex, commodities, futures, options) for more than 6 years, I use technical and fundamental analysis for my daily activity. Founder and Market Analyst at ovtbusiness.com (Financial Markets Blog) and contributor on investing.com, actionforex.com, countingpips.com, forexalchemy.com, etc.

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