The New Zealand Dollar (NZD) is continuing its slow and steady uptrend against the Japanese Yen (JPY), with the price approaching the 82.00 resistance area. The technical bias however remains negative due to a Lower Low in the recent wave on daily chart.
Technical Analysis
As of this writing, the pair is being traded around 81.57. A support may be seen near 80.97, the low of the bullish pin bar which emerged last week on daily chart ahead of 80.45 which is the swing low of the last major dip as demonstrated in the following daily chart. A break and daily closing below the 80.45 support area could incite renewed selling pressure, validating a move towards the 75.00 support area in the long run.
On the upside, the pair is likely to face a hurdle around 82.67, the 23.6% fib level ahead of 84.05, the 38.2% fib level and then 89.87, the swing high of the last major upside rally. The technical bias will remain bearish as long as the 83.26 resistance area is intact.
Nomura/JMMA Manufacturing PMI
The Nomura/JMMA Manufacturing PMI was released today during the early Asian session. According to the report, the manufacturing activity in Japan remained 51.9 points in August as compared to 51.2 points in the month before, down beating the average forecast of 52.1 points. Generally speaking, a reading above 50 shows expansion in the manufacturing activity and vice versa. The downbeat PMI reading may help NZDJPY continue the ongoing bullish momentum.
Trade Idea
Considering the overall technical and fundamental outlook, buying the pair around current levels appears to be a good strategy in short to medium term if we get a valid bullish pin bar or bullish engulfing candle.
NZD is weak on global cues and the pairs with NZD are reflecting the same trading sentiments 
Market visibility clouded by China and the Fed
Market visibility clouded by China and the Fed Zak Mir, technical analyst for ShareProphets.com, opened the Tip TV Finance show today alongside Mike Ingram, strategist at BGC Partners, to discuss the ongoing situations concerning the Fed rate hike and the China meltdown.
Transparency required in the global market
Ingram began by noting the rounding up of journalists in China, and he added the fog surrounding China must clear in order for the world to understand the problems facing it and to react accordingly. In terms of the Fed, Ingram commented that the time of the rate hike remains in the balance, despite it being said over the weekend that the Fed will look through China to raise rates, as we await the non-farm payroll numbers on Friday.
Full house buy alert for stocks
Ingram questioned their decision as he believes it isn’t as easy to call the bottom, and that we are not going to see any resolution to the current crash. He outlined how Morgan Stanley were overweight on European equities like everyone else, and went on to highlight that Europe is improving economically - but sustainability is the key. Whilst discussing recovery, Ingram noted that the US has experienced one of the worst recoveries in history, only growing at rates of less than 3%.
See more at: Market visibility clouded by China and the Fed | TipTV.co.uk
Key Points
• The New Zealand dollar was seen struggling against the US dollar recently, and may continue to weaken.
• There are a couple of bearish trend lines formed on the hourly chart of the NZDUSD pair, which are acting as a resistance.
• The New Zealand Consumer Price Index was released by the Statistics New Zealand earlier today.
• The result was disappointing, as the increase in the CPI was less than the market forecast.
Technical Analysis
The New Zealand dollar was under a lot of bearish pressure against the US Dollar recently, as it traded below the 0.7120 support area. There are a couple of bearish trend lines formed on the hourly chart of the NZDUSD pair, which are acting as a hurdle for more gains.
As long as the pair is below the highlighted trend line and resistance area, it may continue to decline in the near term.
Key Points
• The British Pound suffered a setback against the Swiss Franc recently, as it traded down.
• There is a bearish trend line formed on the hourly chart of the GBPCHF pair, which is acting as a resistance.
• Today in the UK, the Consumer Price Index was released by the National Statistics for the month of June 2016.
• The result was above the forecast, as there was a rise of 0.2% in the CPI compared with the previous month.
Technical Analysis
The British Pound after a test of the 1.3200 level against the Swiss Franc found sellers and started to move down. There is currently a bearish trend line formed on the hourly chart of the GBPCHF pair, which is acting as a resistance and pushing the pair down.
On the downside, there is a major support area at 1.2920, providing support to the bulls.
Overall, the pair is in a downtrend and may trade further lower in the short term.
UK CPI
Today in the UK, the Consumer Price Index was released by the National Statistics. The market was expecting the price changes by the comparison between the retail prices of a representative shopping basket of goods and services to increase by 0.1% in June 2016.
However, the result was positive, as there was a rise of 0.2% in June 2016, compared with the previous month.
Key Points
• The US Dollar after trading as low as 1.2860 against the Canadian dollar found buyers and recovered.
• There is a contracting triangle pattern formed on the hourly chart of the USDCAD pair, which is acting as a catalyst for the upside move.
• Today in the US, the MBA Mortgage Applications was released by the Mortgage Bankers Association.
• The result was disappointing, as there was a decrease of 1.3% in the MBA Mortgage Applications.
Technical Analysis
The US Dollar after declining against the Canadian dollar towards the 1.2860 level found support and traded higher. There is a contracting triangle pattern formed on the hourly chart of the USDCAD pair, which is acting as a support and pushing the pair higher.
It looks like the pair may break the triangle resistance area and could trade near the 1.236 extension of the last drop from the 1.3076 high to 1.2862 low.
On the downside, the 1.3040 is a support level.
Key Points
• The British Pound is forming a constructive pattern against the Japanese yen and looks set for more gains.
• There is a major contracting triangle pattern formed on the hourly chart of the GBPJPY pair, which acting as a consolidating pattern currently.
• The UK PMI service was released by both the Chartered Institute of Purchasing & Supply and the Markit Economics today.
• The result was disappointing, as the UK PMI service registered a contraction reading of 47.4 in July 2016.
Technical Analysis
The British Pound after trading as high as 143.23 against the Japanese yen found sellers and moved down. Later, it started recovering, and currently forming a major contracting triangle pattern formed on the hourly chart of the GBPJPY pair.
The pair is currently trading near the 21 hourly simple moving average, which may act as a resistance and push the pair down.
On the downside, the triangle support trend line holds a key. As long as it is intact there is a chance of more gains.
- Guest Post Submitted By the FXTimes Team
Key Points
• The Euro after trading below 1.1000 found support and moved higher against the US Dollar.
• There was a bearish trend line formed on the hourly chart of the EURUSD pair, which was broken during the upside move.
• Today, the Spanish Producer Price Index was released by the INE during the European session.
• There was a decline of 4.7% in the Producer Price Index in June 2016.
Technical Analysis
The Euro after tumbling against the US Dollar found support near 1.0950 and started to move higher. During the upside move, the EURUSD pair managed to clear a bearish trend line formed on the hourly chart. The same broken trend line was later seen acting as a support area for the Euro buyers.
The pair has now settled above the 21 hourly simple moving average, which is positive sign and may push the pair further higher in the near term.
The pair is also above the 50% Fib retracement level of the last drop from the 1.1058 high to 1.0952 low, which is a sign of a short-term bullish break.
Key Points
• The Euro is attempting to clear a major resistance area against the Japanese yen.
• There is a major breakout pattern forming on the hourly chart of the EURJPY pair, which may provide us the next break.
• Today, the German Unemployment Change report was published by the German Statistics Office.
• The outcome was positive, as the German Unemployment Change came in at -7K in July 2016, compared with the forecast of -3K.
Technical Analysis
The Euro traded higher recently against the Japanese yen and settled above the 21 hourly simple moving average. The pair is currently forming a breakout pattern forming on the hourly chart in the form of a triangle.
The triangle resistance trend line is acting as a major for an upside break in the EURJPY pair.
However, if the pair stays above the 21 hourly SMA, then there is a real chance of it gaining pace and trading further higher.
- Guest Post Submitted By the FXTimes Team
Key Points
• The British Pound after trading as high as 1.3080 against the Swiss Franc found sellers and declined.
• There is a bearish trend line formed on the hourly chart of the GBPCHF pair, acting as a downside catalyst.
• Earlier today, the UK Mortgage Approvals released by the Bank of England came in at 64.766K.
• Moreover, the UK Consumer Credit came in at £1.837B in June 2016, more than the forecast.
Technical Analysis
The British Pound tumbled today against the Swiss franc, as there was a failure to break the 1.3080 resistance area earlier. There is a bearish trend line formed on the hourly chart of the GBPCHF pair, which is acting as a hurdle for buyers and pushing the pair down.
The pair may correct a few pips in the near term, but it could face sellers around the trend line resistance area.
On the downside, a break below 1.2820 could open the doors for a test of the 1.2800 handle.
- Guest Post Submitted By the FXTimes Team
Key Points
• The Euro today faced a lot of sellers against the Japanese yen and traded down.
• There is a bearish trend line formed on the hourly chart of the EURJPY pair, which is acting as a resistance for the pair.
• Today, the Euro Zone Manufacturing Purchasing Managers Index (PMI) was released by the Markit Economics.
• The outcome was positive, as there was a rise from 51.9 to 52.0 in July 2016.
Technical Analysis
The Euro collapsed and traded down to test the 113.90 support area against the Japanese yen where it found buyers. The EURJPY pair is currently attempting a recovery, but facing sellers near a bearish trend line formed on the hourly chart.
A break above the trend line could take the pair towards the 21 hourly simple moving average, which is also coinciding with the 38.2% Fib retracement level of the last drop from the 116.90 high to 113.90 low.
On the downside, the 113.90 support area holds the key for more losses.
- Guest Post Submitted By the FXTimes Team
Key Points
• The British Pound after testing the 134.00 level against the Japanese yen found sellers and moved down.
• There is a descending channel pattern formed on the hourly chart of the GBPJPY pair, which is currently pushing the pair down.
• Earlier today, the UK Manufacturing Production was released by the National Statistics.
• The outcome was on the negative side, as there was a decline of 0.3% in June 2016, more than the forecast of -0.2%.
Technical Analysis
The British Pound struggled a lot recently against the Japanese yen, especially after trading towards 134.00. The GBPJPY pair started to move down, and currently following a descending channel pattern formed on the hourly chart.
The pair also moved below the 21 hourly simple moving average, which may now act as a resistance area in the near term.
A break below the channel support area may call for a move towards the 132.20 support area where the buyers might appear.
- Guest Post Submitted By Aayush Jindal from the FXTimes Team
Key Points
• The New Zealand dollar moved higher against the US Dollar after the RBNZ rate cut.
• There was a major bearish trend line formed on the 4-hours chart of NZDUSD, which was broken during the recent upside move.
• Earlier today, the RBNZ Interest Rate Decision was announced by the Reserve Bank of New Zealand.
• The central bank decided to reduce the interest rates from 2.25% to 2% as forecasted.
Technical Analysis
The New Zealand dollar spiked higher earlier during the Asian session against the US dollar to trade above 0.7200. During the upside move, the NZDUSD pair broke a major bearish trend line formed on the 4-hours chart.
Moreover, the pair closed above the 21 hourly simple moving average, which is a positive sign for the bulls moving ahead.
The pair is currently correcting lower, but it may face buyers near the broken trend line and the 21 hourly SMA.
- Guest Post Submitted By Aayush Jindal from the FXTimes Team
Key Points
• The US Dollar bounced recently against the Japanese yen and may trade further higher.
• There was a bearish trend line formed on the hourly chart of the USDJPY pair, which was broken during the recent upside move.
• Earlier today, the Japanese Securities investment data was released by Ministry of Finance.
• The outcome was positive, as there was a reading of ¥891.8B, more than the last reading of ¥312.1B.
Technical Analysis
The US Dollar after trading as low as 101.00 against the Japanese yen found bids and moved sharply higher. During the upside move, the USDJPY pair broke a bearish trend line formed on the hourly chart to clear the way for more gains.
The pair is already above the 61.8% Fib retracement level of the last drop from the 102.69 high to 101.00.
Overall, the pair may continue to move higher, and may even challenge the last swing high of 102.69.
- Guest Post Submitted By Aayush Jindal from the FXTimes Team
Key Points
• The Euro after trading as high as 114.00 against the Japanese yen found sellers and traded down.
• There is a support trend line formed on the hourly chart of the EURJPY pair, which prevented heavy losses and acted as a barrier for sellers.
• Earlier today, the Japanese Industrial Production was released by the Ministry of Economy, Trade and Industry.
• The outcome was positive, as there was a rise of 2.3% in production in June 2016, more than the last increase of 1.9%.
Technical Analysis
The Euro is under a minor bearish pressure against the Japanese yen, and may head lower in the short term. However, there is a support trend line formed on the hourly chart of the EURJPY pair waiting on the downside to stop losses.
The pair may move down and test the highlighted trend line and support area. It is currently below the 21 hourly simple moving average, which can be seen as a resistance on the upside.
Buying around the highlighted trend line and support may be considered as long as the pair is above it.
- Guest Post Submitted By Aayush Jindal from the FXTimes Team
Key Points
• The Aussie dollar after finding buyers around 1.0520 on many occasions traded higher versus the New Zealand dollar.
• The AUDNZD pair is currently recovering, but heading towards a bearish trend line formed on the hourly chart.
• Today, the Australian Employment Change released by the Australian Bureau of Statistics posted a change of 26.2K, more than expected in July 2016.
• The Unemployment Rate decreased from 5.8% to 5.7%.
AUDNZD Technical Analysis
The Aussie dollar climbed higher after failing on multiple times around the 1.0520 versus the New Zealand dollar. The AUDNZD pair is currently moving higher, but it may face sellers near a bearish trend line formed on the hourly chart.
The 61.8% Fib retracement level of the last drop from the 1.0640 high to 1.0519 low is also around the same trend line.
So, we can keep a close watch on the highlighted trend line and resistance area. There can be a reaction around it, since it won’t be easy for the bulls to break it.
- Guest Post Submitted By Aayush Jindal from the FXTimes Team
Key Points
• The Aussie dollar declined heavily recently against the US Dollar and looks set for more losses.
• There was a major support area and a bullish trend line on the hourly chart of the AUDUSD pair, which was broken during the recent downsides.
• Today in Australia, the HIA New Home Sales report was released by the Housing Industry Association.
• The outcome was disappointing, as there was a decline of 9.7%, compared with the last increase of 8.2%.
AUDUSD Technical Analysis
The Aussie dollar struggled a lot during the recent times against the US Dollar and traded down towards 0.7520. As mentioned the AUDUSD pair broke a major support area and a bullish trend line on the hourly chart.
The recent break looks very powerful, and suggests that the pair may continue to move down. If the pair corrects from the current levels, then 38.2% Fib retracement level of the last drop from the 0.7688 high to 0.7520 low may act as a support.
One may consider selling AUDUSD on rallies around the 0.7580-0.7600 levels.
- Guest Post Submitted By Aayush Jindal from the FXTimes Team
Key Points
• The New Zealand dollar traded higher versus the US Dollar and looks set for more gains.
• There is a crucial bullish trend line formed on the hourly chart of the NZDUSD pair, which can be seen as a buy area.
• In New Zealand, the Terms of Trade Index was released by the Statistics New Zealand earlier today.
• The outcome was negative, as there was a decline of 2.1%, more than the market expected in Q2 2016.
NZDUSD Technical Analysis
The New Zealand Dollar after trading as low as 0.7200 against the US Dollar found support and traded higher. There is a major bullish trend line formed on the hourly chart of the NZDUSD pair, which is acting as a support and taking the pair higher.
If the pair corrects lower from the current levels, then the trend line support may act as a barrier for sellers.
One may even consider buying NZDUSD as long as it is above the trend line and look for a move towards the 0.7280 level.
- Guest Post Submitted By Aayush Jindal from the FXTimes Team
Key Points
• The Euro traded lower against the Aussie dollar recently, and looks set for more declines.
• There was a contracting breakout pattern formed on the hourly chart of the EURAUD pair, which was broken to open the doors for more losses.
• Today, the Australia trade balance report was released by the Australian Bureau of Statistics.
• The forecast was lined up for a trade deficit of -2,750M in July 2016, but it posted -2,410M.
EURAUD Technical Analysis
The Euro recently declined heavily against the Aussie dollar and also settled below the 21 hourly simple moving average. Moreover, the EURAUD pair also broke a contracting breakout pattern formed on the hourly chart.
Currently, the pair is attempting to correct higher, but may face sellers near the 21 hourly SMA.
On the downside, the next target for sellers could be around the 1.236 extension of the last wave from the 1.4589 low to 1.4704 high.
- Guest Post Submitted By Aayush Jindal from the FXTimes Team
Key Points
• The British Pound traded higher recently versus the Japanese yen, but found sellers on the upside.
• There is a critical bearish trend line formed on the hourly chart of the GBPJPY pair, which acted as a barrier for the buyers.
• Today, the Japanese Prelim Machine Tool Orders was released by the Japan Machine Tool Builders’’ Association.
• The result was disappointing, as there was a decline of 8.4% in August 2016.
GBPJPY Technical Analysis
The British Pound traded down recently against the Japanese yen after finding sellers near 137.00. There is a major critical bearish trend line formed on the hourly chart of the GBPJPY pair, which stopped the upside move in the pair and pushed it down.
The pair is also currently attempting a close below the 21 hourly simple moving average, which could ignite further downsides in the near term.
If the GBPJPY pair corrects higher from the current levels, then the same trend line may act as a sell zone. On the downside, the 76.4% Fib retracement level of the last wave from the 134.87 low to 137.00 can act as a support.
