Pound Yen – GBP/JPY fell lower after price rejected the 184.22 resistance level as we expected in our 24th September 2015 Market Outlook. Given that the trend is still bearish, traders who went short as we recommended may consider continue holding onto the short position while trailing the stop behind to lock in the profit. Price is likely going to continue to move lower and may retest its 180.90 support level in the near term. The 180.90 support level may serve as the first target for short sellers to lock in profits.
Gold – Gold pullback to the 1140.00 support level and rejected the support level on last Friday which shows that the bulls are still in this market. Although the long term trend is still bearish, the short term momentum is clearly bullish at the moment thus traders who went long at the 1140.00 support level as we recommended in our 25th September 2015 Market Outlook may consider holding onto the long position. The next resistance level is not found until 1169.00 which offer traders huge profit margin to trade the long side.
Kiwi Dollar – NZD/USD is trading in a trading range on the short term time frame. Price bounce off the 0.6244 support level shows that the short term bulls are buying into this market. Aggressive traders may consider buying into this market at support level for a short term trade while conservative traders may wait for price to pullback to 0.6454 resistance level before shorting to ride on the overall bearish trend.