Forecasting

newdigital, could you please explain in short what these indicators mean? I did'n get it...

The pair seemed to start an overall up-trend at the beginning of the week, but I don't really think it can break the resistance level of 1.0848 in the near future.
https://charts.mql5.com/7/612/eurusd...apital-ltd.png

You mean - forecasting indicators from this thread?
They based on the theories, for example (this article and this one):

Quote:

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The k-Nearest Neighbor algorithm (k-NN) searches for k past patterns (neighbors) that are most similar to the current pattern and computes the future prices based on weighted voting of those neighbors.

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Yeah, exactly!
I meant the first page reply right after black screens with Alpari.
Thank you so much for the links, I'll learn the theory.

Attachment 13057

The following are 11 signs that we are entering the next phase of the global economic crisis:

• #1 It is being projected that half of all fracking companies in the United States will be “dead or sold” by the end of this year.
• #2 The rig count just continues to fall as the U.S. oil industry implodes. Incredibly, the number of rigs in operation in the United States has fallen for 19 weeks in a row.
• #3 McDonald’s has announced that it will be closing 700 “poor performing” restaurants in 2015. Why would McDonald’s be doing this if the economy was actually getting better?
• #4 We could be right on the verge of a Greek debt default. In fact, we learned on Thursday that the Greek government has been “running on empty” for months.
• #5 Coal accounts for approximately 40 percent of all electrical generation on the entire planet. When the price of coal starts to drop, that is a sign that economic activity is slowing down. Just prior to the last financial crisis in 2008, the price of coal shot up dramatically and then crashed really hard. Well, guess what? The price of coal has been crashing again, and it is already lower than it was at any point during the last recession.
• #6 The price of iron ore has been crashing as well. It is down 35 percent in the last nine months, and David Stockman believes that this is because of a major deflationary crisis that is brewing in China.
• #7 At this point, China accounts for more total global trade than anyone else in the world. That is why it is so alarming that Chinese imports and exports are both absolutely collapsing.
• #8 The number of publicly traded companies in the United States that filed for bankruptcy during the first quarter of 2015 was more than double the number that filed for bankruptcy during the first quarter of 2014.
• #9 New home sales in the United States just declined at their fastest pace in almost two years.
• #10 U.S. manufacturing data has been shockingly weak lately.
• #11 When priced according to “the average blue-collar hourly wage“, U.S. stocks are the most expensive that they have ever been in history right now. To say that this financial bubble is overdue to burst is a massive understatement.

For a long time, I have been pointing to 2015 as a major “turning point” for the global financial system, and I still feel that way.



the source

Attachment 15192

Bank of Tokyo-Mitsubishi (BTMU) made their fundamental forecasts for EURUSD based on some fundamental factors:

• "The euro weakened in July with the focus in the foreign exchange market shifting away from the uncertainty related to ‘Grexit’ and back to the monetary policy divergence between the euro-zone and the US. That should mean that the euro reverts to being the funding currency of choice."
• "We suspect there’s a lot more potential selling to come."
• "However, falling oil prices, if extended, will complicate the ECB’s achievement of its inflation target that could mean the ECB needs to extend QE while China weakness that keeps capital flowing out of China means reduced FX reserves that removes reverse recycling support for the euro as well."
• "Despite the resolution to the crisis in Greece, at least for now, we maintain that the fundamentals point to renewed EUR weakness and a decline in EUR/USD toward parity."

Attachment 15193

Bank of Tokyo-Mitsubishi (BTMU) forecasts for EURUSD to be at parity by year-end and at 0.96 by Q1'16-end.

the source

Deutsche Bank long-term forecasts:

Attachment 16888

i-DRProjections - indicator for MetaTrader 4

This is the other version of forecasting indicator (i-DRProjections). The indicator is forecasting the daily high/low for the current day. It means: if we attach this indicator when the market will be opened so we can get predicted high/low for this day for example:

Attachment 20491

Quote:

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Prediction of the daily price ranges. This indicator shows the current day support and resistance levels forecast on the bases of the previous day price levels. The formula for calculating the levels are described in Thomas Demark's The New Science of Technical Analysis.

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Attachment 20492

Attachment 20495

The indicator can be used with doji detect indicator 9attached) or with any support/resistance indicators for example.

W1 price is located above Ichimoku cloud in the bullish area of the chart. The price is on ranging within the following key support/resistance levels:

• 1375.11 resistance level located far above Ichimoku cloud in the bullish area of the chart, and
• 1302.36 support level located above Ichimoku cloud in the beginning of the secondary correction to be started on weekly chart.

Descending triangle pattern was formed by the price to be crossed to below for the correction to be started, but Absolute Strength indicator and Chinkou Span line of Ichimoku indicator are evaluating the future trend as the ranging bullish condition, and Tenkan-sen line located to be above Kijun-sen line are indicating for the primary bullish trend to be continuing.

By the way, the bearish reversal level is 1171.88, and if the price breaks this level to below so the global bearish reversal will be started for this and next year for example.

Attachment 23469

• If the price breaks 1375.11 resistance level on close weekly bar to above so the primary bullish trend will be resumed.
• If weekly price breaks 1302.36 support level on close bar to below so the local downtrend as the secondary correction within the primary bullish trend will be started.
• If weekly price breaks 1171.88 support level on close bar to below so we may see the reversal of the weekly price movement from the ranging bullish to the primary bearish market condition.
• If not so the price will be on bullish ranging within the levels.

Resistance	Support
1352.53	1302.36
1367.22	1210.69
1375.11	1171.88

Trend:
W1 - bullish ranging within the levels

Everything Goldman Sachs predicts for 2017 - in one chart

Attachment 24771

the source

US Dollar Q1 2017 Forecast - Dollar Draws on Many Sources to Extend 14-Year High

Attachment 24984

Fundamental Analysis

• "While the US economy is not on a runaway pace, it has nevertheless proven robust over the years while other major economies have wavered. In this environment where appetite for return is so prominent, a competitive economic pace can draw capital as readily as a central bank rate hike – and critically, more consistently. The promise of fiscal stimulus targeting infrastructure could significantly augment the pace of expansion and further draw contrast to those countries that have stagnated. The approval and details of the program remain to be seen, but a degree of speculative anticipation is already priced in."
• "While the promise of a more robust economy is a draw for investment and thereby lever for the currency, it is speculation of interest rate hikes that provides the practical expectation for return. The Federal Open Market Committee (FOMC) hikes rates for the second time in its very nascent hawkish regime on December 14th. That represented a 12-month gap between moves, but the second increase was full expected. Heading into the two-day meeting, the market had fully priced in the hike. The hawkish winds were further lifted by the forecasts for interest rates over the coming three years. In particular, the group increased its expectation for hikes in 2017 from two to three 25 basis point moves. That was the first time in 18 months that the central bank had increased its forecasts."
• "Though it hasn’t evoked this role in some time, it is important to remember that the Dollar is an ultimate safe haven asset. Yet, to truly take advantage of that position, the collapse in sentiment would need to be market-wide and intense. As it happens, a moderate degree of speculative flight would likely hurt the Greenback as it would curb rate expectations. In fact, through the past two years, the correlation between the DXY Dollar Index and VIX has flipped its traditional correlation to an unusual inverse relationship. A steady course for the global financial system and economy would bode well for the Dollar through rate speculation while intense risk aversion could recharge a long-dormant and significantly undervalued theme. In between these extremes though, the currency could very well struggle."

Technical Analysis

• "The DXY rally has now pushed above the 61.8% retracement of the 2001-2008 decline (101.80). From my perspective, the time element of the cycle is most interesting. The rally from March 2008 is now in its 105th month (as of December 2016). There have been 2 longer USD cycles; the 1992-2001 rally lasted 106 months and the end of Bretton Woods to 1978 decline lasted 109 months."
• "Finally, the shape of the rallies from 1992 and 2008 are similar and the wave counts might end up as identical. Proposed wave C now subdivides into 5 waves which indicates high risk of a top. It’s noted too that wave 5 already equals wave 1 (in points…not %) at 103.32. The angle of the rallies on the monthly log chart are defined by the B-2 line. The median lines for both sequences were support for waves 4 of C. After the 2001 top, the median line was support on the first leg down and the break of the ML signaled the onset of the bear."

read more here

Euro Q1 2017 Forecast - EUR/USD Enters 2017 Positioned for More Downside

Attachment 24986

Fundamental Analysis

• "On the US Dollar’s side, the decision in December 2016 to signal three rates in 2017 – as opposed to the market-priced two ahead of the policy statement – has sent US Treasury yields higher. As a gauge of long-term growth and inflation expectations, the US Treasury yield curve steepening is a reflection of the market's belief that tighter monetary policy is coming in the near-term."
• "On the Euro side, the European Central Bank’s decision in December 2016 to alter its QE program proved significant. In our Q4’16 forecast, we said “The ECB will very likely be forced to remove the -0.40% barrier (allowing more German bunds to be purchased), or to remove the capital key restriction (allowing more peripheral sovereign debt to be purchased).” By going the former route as opposed to the latter, the ECB has primed the Euro to be in a disadvantageous position if interest rates elsewhere continue to rise."
• "By the end of Q1’17, traders should start to pay more attention to European politics. On March 15, 2017, the Dutch elections will be held, the first of four significant elections in 2017. After the dramatic ‘No’ result on the December 4 constitutional referendum, Italy will likely head to the polls again by mid-2017. Luckily, for the Euro, the lack of reform that cost Matteo Renzi his job as prime minister may keep the Italian political system broken enough to prevent the Five Star Movement from ever achieving enough power to pull Italy out of the European Union. In April and May 2017, French presidential elections will be held, and the country will face its own populist threat in Marine Le Pen. Later in 2017 (date TBD), German elections will be held amid an environment in which Angela Merkel’s popularity Is quickly sliding (at five-year lows in December 2016) thanks to her immigration policy and an expanded terrorism threat in Europe. Needless to say, for those who thought 2016 was a year of surprises and shocks, 2017 is sure not to disappoint."

Attachment 24988

Technical Analysis

• "We were looking for signs of a turn higher in Q4’16, but that didn’t happen. Instead, EUR/USD broke lower in a significant way. In our Q4’16 EUR/USD forecast, we wrote about the extremely coiled environment persisting in the pair, noting, “according to the measure, EUR/USD is the most coiled in history. It’s been 81 weeks since the last 52-week high or low. The previous record was 77-weeks, which ended with the breakout in May 2002.” Furthermore, “if the March 2015 lows break, then the call for a bottom is wrong and focus would shift to 0.9450-0.9550 (historical inflection point and measured objective).” This zone is in play in Q1’17 and is reinforced by the 61.8% retracement of the 1985-2008 rally at 0.9608."
• "Strength through the median line from the bearish channel, which was resistance throughout 2016, would trigger a major bearish trap and shift focus to the downtrend line in the mid-1.2000s later in the year (fitting with the idea of the US Dollar rising then falling over the course of 20170."

the source

British Pound Q1 2017 Forecast - Pound to Chart Disparate Path vs. Major Currencies in Early 2017

Attachment 24989

Fundamental Analysis

• "Much of what happens to the British Pound in 2017 will depend on implementation of the outcome of the Brexit referendum. Markets will have ample fodder for speculation, from the formal initiation of the process pulling the UK out of the European Union and the subsequent negotiation to the indirect influence of uncertainty on the economy."
• "The markets will probably spend the first three months of the year trying to divine what all of this will look like. Against this backdrop, the UK economy will likely start to show the impact of post-referendum uncertainty. This will overlay the political aspects of the situation with speculation about the direction of Bank of England policy."
• "At this stage, investors seem to be trying to game how much inflation has to overshoot the BOE’s target for the central bank to dial down stimulus. If recent UK data proves to have foreshadowed a slump, speculation will instead be focused on how likely it is that Mark Carney and company will have to ease conditions further."

Attachment 24990

Technical Analysis

• "Heading into the fourth quarter, I had highlighted the GBP/USD range between 1.2800 and 1.3600. The prevailing trend was certainly bearish, but further extending the already-extreme move would require increasingly exceptional conviction. An unexpected Pound flash crash in early October and a renewed Dollar rally after US Presidential election however, struck the correct cord. The question heading into 2017 is whether we can keep stretching the Cable further and further. Looking at the quarterly chart of the pair, we can see how statistically difficult that would be."
• "We need to look at a chart with this scale of historical context to appreciate the fact that we are at a three-decade low. Beyond that, we find that GBP/USD has dropped for six consecutive quarters – only the third time this has occurred and each previous instance marked a significant turning point. Furthermore, this drive represents a decline that is more than two-standard deviations below the 20-quarter (5-year) average."

the source

Japanese Yen Q1 2017 Forecast - Japanese Yen Poised to Gain Further For Three Key Reasons

Attachment 24994

Fundamental Analysis

• "The Bank of Japan started the year in fairly dramatic fashion as it cut its benchmark interest rate into negative territory, but the BoJ went on to disappoint those looking for further monetary policy easing through the rest of the year. This fact is especially surprising given that National Japanese Consumer Price Index inflation figures showed the country re-entered deflation through the first quarter. It was almost humorous to note the Bank of Japan forecasted inflation would hit 1.7 percent in 2017 while the median private forecast pointed to 0.9 percent growth. Officials finally posted a dramatic cut in inflation and growth forecasts at their July meeting, and further policy easing seemed inevitable."
• "Japan stands to gain if the United States’ Congress and President approve the much-heralded Trans-Pacific Partnership (TPP) trade agreement. Anti-trade sentiment has nonetheless come to the fore ahead of the US Presidential Elections in November, and ratification of the TPP is far from certain. Aggressive currency manipulation from the Japanese Government could further raise the ire of the US politicians and effectively kill the TPP in its tracks. The Japanese MoF has certainly warned it could intervene if the Yen continues to strengthen, but these political calculations make those threats considerably less credible. Failure to act would clear the USD/JPY to break and stay below ¥100."
• "The final wildcard for the Yen is not limited to Japan but especially relevant for its currency: will global financial markets remain stable? The near-term correlation between the USD/JPY exchange rate and the USS&P 500 Volatility Index (VIX)—also known as the “fear index”—recently hit its strongest in two years. The correlation has admittedly been volatile, and the USD/JPY shows little link to the VIX when the VIX is low. The fact the JPY surges (USD/JPY declines) when the VIX spikes higher helps to highlight the fact the Yen tends to strengthen in times of financial market turmoil. The recent jump in S&P volatility coincided with Yen strength, and any similar episodes of sharp S&P declines would also likely coincide with JPY gains."

Attachment 24995

Technical Analysis

• "USDJPY responded to a critical support confluence in the second half of the year around the 101-handle (100.71-101.26) – this region is defined by the 50% retracement of the 2011 rally, the 1999/2000 lows, former trendline resistance extending off the 1998 & 2007 highs and a median-line extending off the 2009 lows. The exchange rate could not register a weekly close below this mark and as of 12/20 the subsequent rally has marked the largest quarterly advance since Q3 1995 and the largest quarterly range (ATR) since Q4 of 2008. If this was just a zoom & retest of the 2014 breakout, the broader outlook would remain constructive while above this key threshold heading into 2017. Note that a parallel extending off the 2013 highs converges on the June high and highlights possible near-term support at 111.45."
• "The focus heading into Q1 is on a key resistance confluence at 120.18-121.12 where the 2016 open converges on the yearly high-week close, the 78.6% retracement of the 2015 decline, the upper median-line parallel of the embedded ascending structure and basic trendline resistance off the 2015 high. The current rally is at risk heading into this region and we’ll be looking for a pullback to offer favorable long-entries while above confluence support at 111.45."

the source

Gold Q1 2017 Forecast - Gold Weakness to Subside With Fed on Hold in First-Half of 2017

Attachment 24998

Fundamental Analysis

• "After raising the benchmark interest rate in December, the upcoming rotation within the Federal Open Market Committee (FOMC) may push the central bank to retain the current policy at the next meeting in February as Chicago Fed President Charles Evans, Philadelphia Fed President Patrick Harker, Dallas Fed President Robert Kaplan and Minneapolis Fed President Neel Kashkari are slate to vote in 2017."
• "Looking at Fed Funds Futures, market participants largely anticipate the Fed to retain the status quo throughout the first-half of the year as the central bank warns ‘market-based measures of inflation compensation have moved up considerably but still are low; most survey-based measures of longer-term inflation expectations are little changed, on balance, in recent months.’ With that said, the FOMC meetings scheduled for the first-half of 2017 may tame the resilience in the greenback and help cushion the rapid decline in gold price, but the outlook for monetary policy continues to cast a long-term bearish forecast for bullion especially as Fed officials see three rate-hikes in the year ahead."
• "With the longer-run interest rate dot-plot still projecting a terminal rate around 2.75% to 3.00%, Fed Funds Futures are currently pricing an 80% probability for a move in June 2017, with additional rate-hikes anticipated to come in the second-half of 2017. Expectations for higher U.S. interest rates should continue to weigh on gold prices, but the weakness may subside over the coming months as the FOMC is anticipated to keep the benchmark interest rate on hold throughout the first-half of the year."

Attachment 24999

Technical Analysis

• "Gold prices approached a critical support confluence in late-December at 1220/30- a level defined by the 161.8% extension of the decline off the yearly highs, the 76.4% retracement of the advance off the 2015 low, the 2014 low and the lower parallel of the embedded descending parallel formation. Note that the lower-median-line parallel extending off the 2015 low comes in just below and the immediate downside bias is at risk into this key region."
• "Bottom line: heading into next quarter we’ll be looking for a relief rally to offer more favorable short-entries with a break lower risks substantial losses for gold. Such a scenario eyes subsequent support targets at the low-week close / 88.6% retracement at 1083/85 backed by the 2016 open at 1062 & the 2016 low at 1046."

the source

Oil Q1 2017 Forecast - The Real Power of OPEC Will Be Revealed in Q1 2017

Attachment 25002

Fundamental Analysis

• "For traders who like to simplify the markets to a game of supply vs. demand, the Oil market in Q1 2017 should be their World Cup. Heading into the New Year, the OPEC and non-OPEC members will cut supply to the agreed upon amounts. Given this intent, the International Energy Agency (IEA) says recent OPEC action would place the Oil market into a supply deficit. The deficit would be engineered on a mixture of consistent demand combined with OPEC and other producers following through on their pledge to cut supply starting January 1. The view of consistent demand has been supported by consistent inventory draws reported by the Department of Energy as forecasted inventory builds were repeatedly confronted with actual inventory draws in late 2016."
• "In Vienna, OPEC announced they anticipate ~600,000 fewerbarrels per day of production in H1, 2017. Along with this, the IEA also increased its forecast for global oil demand in 2017 by 100k bpd, stating consumption is likely to rise by 1.4% to 97.6 million barrels a day. In mid-December when non-OPEC producers like Russia, Mexico, and others aligned with OPEC to help balance the over-supply imbalance, Saudi Oil Minister Khalid Al-Falih said at the post-meeting press conference in Vienna that he is willing to cut the Saudi’s production even deeper than already promised. OPEC has agreed to reduce output by 1.2mn bpd from next year with Saudi cutting as much as 486k bpd."
• "Lastly, while many are looking for prices to move aggressively higher, it is worth noting OPEC is not specifically targeting higher price levels, but rather market balance. Therefore, we could see an increase in production if demand is anticipated to pick up or U.S. E&P’s are seen taking too much market share, which would limit the potential upside."

Attachment 25003

Technical Analysis

• "Crude oil price has been reacting positively to the 200 day simple moving average bouncing off the line twice during the previous quarter. This makes seven successful turns in the past 19 months with one failed pivot. Now that the moving average is trending higher, it will become more difficult for prices to hold above it. Do not be surprised to see a false break below this line in Q1."
• "The key level to watch for Bulls is around $40. Below there and the market is at risk of a greater sell-off. As long as prices are above $40, the door is open for sideways and possibly higher trade."

the source

The EUR/USD doesn't change its down trend and I think the best strategy to get real money here is to open a long-term sell.

https://charts.mql5.com/13/715/eurus...ital-ltd-2.png

The GBP/USD is going down little by little. Not such a big opprtunity on this market at the moment, but still we can sell here too.

https://charts.mql5.com/13/715/gbpus...apital-ltd.png

The USD/JPY after being a bullish market for a long time seems to have managed to form quite a stron resistance, so there is a chance that the chart will go down next week.

https://charts.mql5.com/13/715/usdjp...ital-ltd-2.png

The USD/JPY seems to be forming a new trend, cause we can see a fall here from the level of 114.10. I'm going short.

https://charts.mql5.com/13/934/usdjp...ital-ltd-4.png

The GBP/USD has just turned down and I think it won't last long so we'd better use scalping strategy here this week.

https://charts.mql5.com/13/934/gbpus...ital-ltd-2.png

The EUR/USD is on the way up and again it's very uncommon for this market. Personally, I'll go short after the pivot. I think it's useless to open a buy here right now.

https://charts.mql5.com/13/934/eurus...ital-ltd-3.png

The EUR/USD is surprisingly suitable for scalpers this week, but bulls also can earn here something if they will be patient.


https://charts.mql5.com/14/386/eurus...apital-ltd.png

The GBP/USD went down all the way long and now it's time to make the pivot, so I'm definitely among the bulls this week.

https://charts.mql5.com/14/386/gbpus...apital-ltd.png

The USD/JPY oes up at the moment and it has reached the level of 117.30 by now. I guess it will go further down, so I'm going long.

https://charts.mql5.com/14/386/usdjp...ital-ltd-2.png

The pair is in a clear long-term bullish trend, but is looking increasingly likely that it will need to dip below 1.2772 before regaining enough steam to make a successful attempt at breaking above the key resistance at 1.2850.
https://charts.mql5.com/14/873/gbpus...ital-ltd-2.png

During yesterday’s transactions, the USD/JPY rose to 111.77 before pulling back to the support at 110.88, and then settled around 111.45 at the time of writing, after the Trump administration’s announcement of the long awaited tax plan which presented no support to the USD against other majors.
https://charts.mql5.com/14/873/usdjp...apital-ltd.png

Technically: the USD/JPY movement is still in an upward channel and will be stronger if the price established above 112.00 level, which will give the pair a new power to make gains. The USD is still the lower gainer against the JPY, unlike other currencies like the EUR, GBP, yet, the USD received lots of negativity because of Trump’s policy and the recent negative US economic data.
https://charts.mql5.com/14/873/usdjp...apital-ltd.png

Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 111.59, 111.74 or 111.95.
https://charts.mql5.com/15/71/usdjpy...apital-ltd.png

Long entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 110.00.
https://charts.mql5.com/15/71/usdjpy...apital-ltd.png

This week, we are attempting to highlight a potential move in Bitcoin that could disrupt the global economy and more traditional investment vehicles. For the past few years, Bitcoin has been on a terror to the upside. Recently, a 30% downside price rotation caused a bit of panic in the Crypto world. This -30% decline was fast and left some people wondering what could happen if something deeper were to happen – where would Crypto’s find a bottom. From that -30% low, Bitcoin has recovered to previous highs (near $8000) and have stalled – interesting.

Attachment 29827

While discussing Bitcoin with some associates a while back, I heard rumor that a move to Bitcoin CASH was underway and that Bitcoin would collapse as some point in the near future. The people I was meeting with were very well connected in this field and were warning me to alert me in case I had any Bitcoin holdings (which I do). I found it interesting that these people were moving into the Bitcoin CASH market as fast as they could. What did they know that I didn’t know and how could any potential Bitcoin blowout drive the global markets?

more...

nice threat, i am watching :) , keep kick forward

In my opinion EUR/USD is quite bullish and we will be seeing it continue moving to the upside next week, with next target around 1.1500 at least.

USD/JPY is consolidating sideways below the resistance at 113.00 and the pair has even formed a shooting star candlestick at that level on the four-hour time frame. Considering said candlestick we may soon see a new move to the downside.

EUR/GBP dropped sharply after forming a spinning top candlestick and a shooting star candlestick at 0.8920 on the four-hour time-frame. If it breaks out below the support at 0.8850 it may continue depreciating to 0.8800.

NZD/USD fell further today and it is currently testing the support at 0.6775. If it breaks out below that level we may see another depreciation towards 0.6700 or even below that level.

EUR/USD closed at 1.1330 this week and the pair remains quite bearish, next week we will likely see it depreciate below the support at 1.1300 too.

Despite all odds USD/JPY broke out above the resistance at 113.35 and it continues moving to the upside. I think we will likely see it continue move north towards 114.00 this week.

USD/CAD continues moving to the upside and it has even broken out above the resistance at 1.3270. The pair will likely continue rising towards the last local high at 1.3317.

USD/JPY has finally reached the resistance at 114.00 and it remains very bullish, so we will either see a direct breakout above that level or a retracement and then another attempt to break out above it, but either way, the move to the upside is likely not over yet.

NZD/USD has formed a double top at 0.6890 on the daily time frame and that is a very good signal for an impending move to the downside. Next target will likely be the last low at 0.6750.