GBPUSD – Daily Chart
Price is nearing a clear horizontal resistance area at 1.3350-1.3425. If price is rejected around this area, the GBPUSD could move back down to the horizontal and diagonal support areas identified on the above chart. Price action has also formed a tightening consolidation pattern. If price moves above the resistance areas, the GBPUSD may start a rally and attempt to reverse more of the move caused by the EU referendum result.
The Bank of England have cut rates as expected and have also increased their QE program. This initially caused weakness for the GBP but very strong UK CPI data has cleared some doubt about the future of the British economy. Very strong manufacturing data has also been released. This is mainly due to the cheaper sterling boosting exports. Most experts still believe that the GBP will continue to weaken long-term though. US Fed Chair Yellen recently suggested that there could be a US rate hike before the end of this year. This has given great strength to the US Dollar.
NZDUSD – Daily Chart
The NZDUSD has been moving between a tightening support and resistance area, forming a tightening bullish triangular price pattern. A break-out trading opportunity could exist as price moves above the horizontal resistance area or below the diagonal support area. The moving averages continue to be bullish, suggesting that a break to the upside is more likely. A break to the downside may stall or reverse around the horizontal support at 0.6980.
The economy of New Zealand continues to seem steady. As expected, the Reserve Bank of New Zealand lowered the official rate to 2.00%. The NZD gained strength and continues to seem steady even with this potential weakening rate news. The New Zealand Dollar continues to be attractive to currency investors due to the yield on carry trades. US Fed Chair Yellen recently suggested that there could be a US rate hike before the end of this year. This has given great strength to the US Dollar.
USDCHF – Daily Chart
Price was rejected around the consolidation resistance during yesterday’s trading sessions and the daily candle closed very bearish. Trading opportunities could exist if price continues to be rejected and makes a move to the consolidation support area. If price closes above the consolidation resistance area, price could move much higher.
US Fed Chair Yellen recently suggested that there could be a US rate hike before the end of this year. This has given great strength to the US Dollar.