1Finance

Technical Developments to Watch:

• EUR/USD still below key trend line resistance at 1.1380
• GBP/USD testing key support at 1.5190
• USD/JPY at a 13-year high, bias bullish above 124.15
• NZD/USD in play, potential for another leg lower if RBNZ cuts rates

• EURUSD exploded higher early last week before but gave back most of its gains on Thur. & Fri.
• MACD and Slow Stochastics show balanced, two-way trade
• Key support sits in the mid-1.0800s

EURUSD had a rollercoaster ride of a week, spiking nearly 500 pips trough-to-peak before giving back over 300 pips in the wake of Friday's strong NFP report. Meanwhile, both the MACD and Slow Stochastics are now in neutral territory, signaling balanced, two-way trade. Traders are clearly trying to sort out last week's volatile price action, but from a longer-term perspective, the one-year bearish trend line perfectly capped last week's rally, so we're inclined to give the bears the benefit of the doubt as long as EURUSD holds below 1.1380.




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