Weekly Technical Perspective on NZD/USD, GBP/USD and EUR/NZD

In this array we scale-back and take a demeanour during a broader technical design to benefit a bit some-more viewpoint on where we are in trend. Here are a pivotal levels that matter on a weekly charts for a NZD/USD, GBP/USD and EUR/NZD. Review this week’s Strategy Webinar for an in-depth relapse of these setups and more.

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NZD/USD Weekly Price Chart

NZD/USD Price Chart - Weekly Timeframe

Notes: Last month we remarkable that a New Zealand Dollar had,continued to connect next a Jan highs during 7436 with a 200-week relocating normal throwing a closes on a downside over a past few months. I’m looking for a fortitude to this pivotal cost operation over a entrance weeks with pivotal support (bullish invalidation) eyed at 7094-7140.”

Price purebred a low 7153 before branch aloft with a allege now eyeing operation insurgency during 7390 (yearly high-close) and 7437 (yearly high)- note that a top median-line together of a forward pitchfork (blue) AND a design yearly opening-range high intersect on this section and weekly breach/ tighten would be indispensable to countenance a incomparable dermatitis in Kiwi.

Bottom Line: Price is coming connection down-trend insurgency and a yearly operation highs- Look for a greeting during this turn with a evident long-bias during risk while below. Key support stays during a 2015 slope support that converges on a 52 200-week relocating averages during 7170/90.

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GBP/USD Weekly Price Chart

GBP/USD Price Chart - Weekly Timeframe

Notes: Simplicity is key! We’ve been tracking this ascending pitchfork formationextending off a 2016 / 2017 lows for over a year now in a British Pound. Our Bottom Line final month remarkable that, “a crack / tighten above a 2018 high-day tighten during 1.4134 would keep a long-bias in play targeting a 200-week relocating normal during ~1.4280s and a yearly high during 1.4346.” Price is within distinguished stretch of a 1.4346 aim after violation above a median-line final week- demeanour for a greeting there.

Bottom line: The evident concentration is on yearly highs here with a crack targeting a shifting together (red) around ~1.4450s and a top median-line together (blue) during ~1.4730s. Interim support rests with a high-day tighten during 1.4157 broader bullish invalidation, unfortunately still down during 1.3675. Looking for re-entries on a incomparable pullback.

GBP/USD IG Client Positioning

GBP/USD Client Sentiment

  • A outline of IG Client Sentimentshows traders are net-short GBPUSD- a ratio stands during -2.01 (33.3% of traders are long) – bearishreading
  • Retail has remained net-short given Mar 21st; cost has changed 2.7% aloft given then
  • Long positions are 8.7% reduce than yesterday and 28.8% reduce from final week
  • Short positions are 5.0% reduce than yesterday but 15.6% aloft from final week
  • We typically take a contrarian perspective to throng sentiment, and a fact traders are net-short suggests GBPUSD prices might continue to rise. Traders are serve net-short than yesterday and final week, and a multiple of stream positioning and new changes gives us a stronger GBPUSD-bullish contrarian trade bias from a view standpoint.

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EUR/NZD Weekly Price Chart

EUR/NZD Price Chart - Weekly Timeframe

Notes: EUR/NZD is trade only above slope support fluctuating off a 2017 lows and is corroborated closely 1.6521/70- a segment tangible by a yearly operation lows and a 61.8% prolongation of a decrease off a 2017 highs. I’m looking for a greeting here (looking for a near-term low during one of these levels) – a mangle next this design section would advise a some-more poignant high is in place with successive support targets eyed during 1.6204/36.

Interim insurgency stands during a yearly open during 1.6908 with bearish cancellation eyed during 1.7097 where a 2013 high-week tighten converges on simple slope resistance. A crack there would put a broader long-bias behind in concentration targeting 1.7258 and 1.7423.

Bottom line: There’s no play here only yet, though it’s make-or-break for EUR/NZD with a evident concentration on simple slope support. Note that weekly movement has mostly hold above 50 given a early 2017 lows – a mangle next alongside mangle of a yearly opening-range in cost would be a constrained vigilance for serve weakness. That said, from a trade standpoint, I’ll be looking to blur debility while above this threshold for now.

Previous Weekly Technical Perspectives

— Written by Michael Boutros, Technical Currency Strategist with DailyFX

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