Price range on Friday was minor as markets were quite at the end of the trading week, the EURUSD is trading near the monthly highs after bursting higher on Wendsday post the FOMC statement breaking the AUG highs as well. Bias remains to the upside as long as price action insicates otherwise. Resistnce line set from June 19th now acts as support.
Price action was minor on Friday as well. USDJPY closed the trading week eventually moderately higher after coming off aggressively on Wednesday post the FOMC statement, breaking below Monday 16th lows at 98.40 which served as important support. The Pair found support at resistance trend line, now turned support set from May 22nd highs and quickly bounced on Thursday, retracing all of the losses made on Wednesday and posting a new weekly high as well. Bias remains to the upside as long as we are above 98.40 and Thursday’s lows at 97.85.
The Kiwi dollar broke higher post the FOMC statement on Wednesday, closing a 3rd consecutive week higher, the pair has retraced 76.4 of the decline set from APR 11th high to June 24th lows. Price action has formed a Doji candle on Thursday and the pair has found a temporary resistance at 0.8438, the 76.4 fib. Current levels could offer some selling opportunities in light of the reasons we mentioned above. Long term bias still remains to the downside; a break above last week’s high would negate the outlook and requires reassessment of latest price action. Nearest support is the Thursday lows, a break below could initiate retracement to the Hugh rally the pair has made from Sep 1st.