The EURNZD pair has been moving higher since setting its low at 1.6575 in mid June. On the way higher it formed a continuation pattern and broke out higher, then dropped back to complete a retest of the breakout at 1.7220. That was three weeks ago and price is now 500 pips higher and trading around 1.7720. The creation of higher highs and lows on the way higher has allowed traders to find points of support. The initial downside support is located close to 1.7605, with a loss of this area opening the way for lower levels. Below this point 1.7492 comes into play just under 1.7500, this level having formed a higher high on the way up. Support can also be seen at 1.7358 with a loss of this level potentially setting up a retest of the breakout.
Resistance for the pair comes in at the recent highs at 1.7736 ahead of 1.7550. A break out above these levels opens the way for tests on 1.7800 and 1.7850 respectively. Should price manage to continue its trend higher, then 1.7900 may be an area of interest to traders as price approaches the 1.8000 round number, where traders will look to engage with the market.
The GBPJPY daily chart is showing that price is trading in the middle of a descending wedge pattern. The price is currently trading at 143.844 with initial upside resistance at 144.466. A break higher would move up to test the most recent high at 145.730. This is a key level going forward with a move above this level and the 146.000 round number setting up a retest of the trend line around the next lower high at 147.163. If the market has the strength to successfully break above the trend line then the July high at 149.326 comes into focus ahead of the 150.000 round number.
Support for the current structure can be seen at 142.640. A loss of this level keeps the sellers in control and would potentially see a retest of 142.000 develop. Under this point a drop to 141.376 can result in an extended drop to the lows around 140.00 should the support fail. The low comes in at 139.915 followed by the supportive trend line at 139.000.
EURNZD & GBPJPY Key Trading Levels Video: