U.S. equities ignored geopolitical turmoil and lower volumes to push higher today. The NASDAQ climbed to new highs and the S&P rallied to retest the annual highs. The dollar continues to strengthen with equities which still has us looking at the move as a fear driven move with money coming to the U.S. from overseas.
The EUR/USD broke near term support and we now expect the pari to drop to 1.31 and potentially down to 1.28 in the next month, the question is whether we can get any type of a reasonable pull back for a better price in the short opportunity.
(see EUR/USD below)
The NZD/USD has fallen back to key support on multiple currency pairs. We like the idea of a quick buy opportunity at this support. We don’t expect to see a big bullish trend but a bounce to near term resistance. We have set a buy limit at this support level with a tight stop.
(see NZD/USD below)
The GBP/USD experience a huge sell off, similar to what we saw last week. We expect price to fall down to horizontal support but we also feel that price is overextended to the downside. If price breaks the trend line, we could see price hit 1.68 quickly but we are currently watching for a test of 1.65
(see GBP/USD below)