From the city that loves to trade, My name is Kiana Danial, a Persian member of the tribe, an Electrical Engineering graduate from Japan, and the founder of Invest Diva right here in New York, and this, is your forex trading analysis for the week, using our unique metaphor of dancing currency pairs on the forex dance floor.
It’s a bank holiday here in the USA so Ms. USA is taking a rest on the forex dance floor while her counterparts take the lead. That’s why today I want to start with a major cross currency pair and continue on to two non- American currencies who seem to have intelligent-sounding English accents according to Ms. USA.
EUR/JPY is dancing above the ichimoku cloud but failed to break above a key resistance level at 143.42 last week and is approaching a bearish target at 142. A break below this level could open doors for more drops towards 140.35 while a break above 143.42 would change our outlook to bullish with 145 as first alternative target.
Next in line is our favorite Mr. Aussie who finally reached our bearish target at 0.8600 and is now moving back up against Ms. USA. A Fibonacci observer would say that the pair would rebound towards key fibonacci levels, namely 23% and 38% at 0.8728 and 0.8850 respectively. However failure to break above the 23% Fibo level would change our outlook back to bearish with 0.8600 and 0.8500 as targets.
Since we covered Mr. Aussie, lets also take a look at the other currency with smart-sounding accent and that is Mr. British Pound as he dances against Ms. USA and who has broken below the 50% Fibonacci level and very close to reaching our bearish target at 1.5754. Our next bearish target is set at the 76% Fibonacci level at 1.5410. Now a break above the 38% Fibo level at 1.63 would change our outlook to bullish with 1.6636 as first alternative target.
Taking a look at the major events in the forex world in the coming days, Tuesday’s biggest market moving events will come out of New Zealand with RBNZ financial Stability Report at 9 PM GMT followed by the RBNZ governor Wheeler speech that could move Kiwi. Wednesday morning is important for the British Pound with the UK jobs report release at 10:30 am followed by BOE Inflation Report at 11:30 am.
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