Euro Kiwi – EUR/NZD continue to decline lower after price performed a false breakout at its 1.5120 resistance level as we expected in our 29th December 2016 Market Outlook. Traders who went short as we recommended may consider consider holding onto the short position as price breakout the 1.4720 support level yesterday which opened up the door for potential further decline. Traders who missed the earlier shorting opportunity may hunt for potential short selling setups if price pullback into its 1.4720 resistance level (Previous support level) to jump on this bearish trend.
Pound Dollar – We are seeing lower highs and lower lows in GBP/USD shorter time frame charts which shows that the bears are taking control of the short term trend. We have a short term resistance level above at 1.2530 which traders may hunt for potential short setups if price pullback into the 1.2530 resistance level. Ideally we would prefer to see price rejections at the 1.2530 resistance level before shorting this market to avoid false signals.
China Offshore Yuan – USD/CNH is currently trading at its 6.8540 support level and it seems that the bulls are losing its strength to push price higher over the shorter time period. If price breakout below the 6.8540 support level, we are then likely going to see price decline lower into its next support level at 6.8360. Short term traders may consider shorting this market at the breakout of 6.8540 support level for a quick short term trade.