A lot is happening in the markets. In the evening, the interest rates in New Zealand were rised – in line with earlier expectations – but even more importantly the information from a press conference came. Further rate hikes till the end of the year are largely possible and RBNZ neutral level is 4.5% (currently 2.75%).
Also the Eurodollar is noteworthy, which now approached the highest levels since 2011. I invite you to take a look at today’s PA setups:
AUD/JPY:
Strongly unclear situation on this pair. On the one hand, local support brake and a strong downward impulse, and from the other a clear pin bar at yesterday’s session. Today, the price is testing the resistance and so far it was a failed challenge. It seems that, the current direction is upward-like and potential long position may be opened at a 50% of yesterday’s candle abolition. Otherwise, the potential risk reward would be too small.
EUR/USD:
Clear Eurodollar increase and as I mentioned before the highest level since 2011. It is worth to wait for the 1.3900 area challenge and in case of buy signal occurrence open long positions.
GBP/USD:
Yesterday there was a buy signal, unfortunately, the price managed to escape during the night. If there is a correction it will be worth to look for longs in the vicinity of yesterday’s candle maximum or 50% of its abolition.
NZD/USD:
Decisions in interest rates and the subsequent announcements ended with big market increases. Price broke the maximum from October 2014 and now this level should act like a support. If fall would be deeper then search next buy signals in vicinity of 0.84300 and 0.8410 levels.
USD/JPY:
Another strange situation on a currency pair with yen. Yesterday, the price successfully defended the support giving a buy signal in the night (pin-bar). Later however, this level has been broken and tested twice from the bottom. During the U.S. session the challenge was ended with a downward pin bar candle which gave a clear sell signal. It seems that it is now a prevailing direction, and everything can be resolved soon, because the price is testing yesterday’s minimum. Breaking it should lead to more robust falls, which aim will be March 3 lows.
