The sharp pullback from fresh 2014 highs last week combined with correcting O/B daily studies is a concern for bulls with a close above Friday’s high needed to take the pressure off further tests of the rising daily channel base. Bears are looking for a break of the $0.8499 Mar 20 low to confirm a break of the rising channel and see immediate focus turn to the $0.8141-45 region and then the $0.8244-0.8345 region below.
The recovery from the NZ$1.0535 level continued to start the new week with AUD/NZD closing back above the 21-DMA (NZ$1.0661) and the falling daily channel top (NZ$1.0628). Further layers of resistance remain in the NZ$1.0706-59 region with bulls needing a close above NZ$1.0759 to see overall focus shift higher to the NZ$1.0876-1.0945 region. Bears need a close below NZ$1.0623 to see bearish pressure re-emerge.
The break and close above the Y92.82 level on Friday saw a continuation higher to start the new week before the pair stalled ahead of the Y93.59 level. Bulls need to see a close above to target the key Y94.46-59 region where 2014 highs are noted. While Y93.59 caps, bears will continue to look for a move lower that initially targets the 200-DMA and then the Y91.18 low from Mar 17.
The move lower continued to start the new week with EUR/AUD testing the A$1.5090 Feb 18 low before bouncing a little to close marginally above the 100-DMA (A$1.5150). Bulls need to see a close above the A$1.5254 Mar 21 high to relieve the current bearish pressure that has bears looking for a continuation lower that initially targets the 2014 low. A break to fresh 2014 lows then sees the 200-DMA targeted with a close below last seen in Apr 2013.
The move higher continued Thursday with USD/KRW remaining capped at the 200-DMA. While the 200-DMA caps, potential exists for a correction lower with bears taking comfort in Monday’s low below the Krw1078.1 support. As a result immediate focus has shifted to retests of the Krw1063.6-1070.0 support region. Bulls continue to look for a close above the 200-DMA to target the 2014 high and then the Krw1108.4 low from early Aug 2013.
The sharp pullback from ahead of Thursday’s fresh 2 month high and the relatively bearish close Friday were followed up with a continuation lower to start the new week. Bears need to see a close below Sgd1.2700 needed to see focus shift lower to layers of support in the Sgd1.2625-31 region including the 200-DMA and 100-DMA . Bulls now need to see a close above Monday’s high to see immediate focus shift back to last week’s high at Sgd1.2792