The US dollar initially pulled back during the trading session on Tuesday but found significant support at the ¥111 level. We ended up turning around to form a hammer, which is a very positive sign. I think that the ¥112 level above is the initial target, but if we can break above there we should then go looking towards the ¥113 level. Alternately, if we break down below the ¥111 level, that should open the door to the ¥110.50 level where I see even more support. We are in and uptrend, but obviously we have a lot of noise above. This market is very highly sensitive to the trade war situation coming out of both the United States and China, so keep that in mind. Overall, I think that the market does have a proclivity to trying to reach towards the ¥115 level.
The New Zealand dollar initially tried to rally but then gave back the gains during the trading session on Tuesday, ending up printing a shooting star looking candle. The 0.67 level underneath is supportive based upon longer-term charts, and with the Royal Bank of New Zealand coming out with a GDP number today, we could have a move in the Kiwi dollar. With that being the case, I’m looking for a move above the 0.6775 to start buying and aiming towards the 0.6850 level, which should be resistive. If we can clear that level, then it’s time to start buying the Kiwi dollar for a longer-term move. Alternately, if we break down below the 0.67 handle and stay below there for an hour or two, then I think the market probably drops down to the 0.65 level.
This article provided by NewsEdge.