Loonie Dollar – USD/CAD continue to decline lower and breakout below its 1.2660 support level after price rejected its 1.2910 resistance level as we expected in our 21st December 2017 Market Outlook. Traders who went short as we recommended may consider continue holding onto the short position with a trailing stop behind while traders who missed the shorting opportunity may consider short this market again if price pullback into its 1.2660 resistance level (Previous support level).
Euro Yen – EUR/JPY continue to consolidates at its 134.30 resistance level. If price is able to breakout above its consolidation and 134.30 resistance level, we are then likely going to see price rally higher in the coming weeks. Since the overall trend is still bullish, traders may consider buying into this market at the breakout of the consolidation to jump on the bullish trend.
NZD/CAD – NZD/CAD is making its way back into its 0.8870 support level, If price indeed pullback into its 0.8870 support level, traders may then hunt for potential buying opportunity to ride on the short term bullish momentum. Ideally we would prefer to see some price rejections or any other form of confirmations before buying into this market to avoid false signals.