Charts Of The Day: Nikkei is recovering

Market Analysis / 4 Min Read
26 Apr 2021

NZD/USD

With the FX market back in risk-on mode, the New Zealand Dollar continues to march higher, although at a rather slow pace. NZD/USD has been stuck in a 0.7120-0.7230 range for a while now, but the odds for a breakout to the upside have improved. Should the Kiwi Dollar clear this obstacle, a continuation of the rally towards 0.7315 appears likely in the near-term.

EUR/GBP

The Euro is advancing despite a dovish ECB, and the British Pound is losing momentum against the U.S. Dollar. Traders are therefore finding interest in EUR/GBP again, with the currency pair on the verge of another major breakout. A daily close above the 0.8720 resistance level would pave the way for a continuation of the rally towards the 200 DMA, which currently lies around 0.8905. The Daily RSI is suggesting that EUR/GBP is not in overbought territory yet, and might have further room to the upside.

USD/ZAR

USD/ZAR remains in a strong downtrend, and there are no signs that there could be a reversal in the near-term. The currency pair has been consolidating in recent days. A break above the falling trendline from the March high could trigger a small short squeeze and push USD/ZAR towards 14.60/68 resistance. However, sellers would likely return quickly and cap the topside there.

Nikkei

The Nikkei 225 is recovering following a recent slump, but is struggling to overcome a strong resistance zone between 29.140 and 29.250 points. Another major hurdle is seen at 29.500 points, which has acted as key level of support and resistance many times before. The JPN225 index is therefore likely to remain under pressure in the near-term, with 28.400 points being the next significant line of support.

The information is not to be construed as a recommendation; or an offer to buy or sell; or the solicitation of an offer to buy or sell any security, financial product, or instrument; or to participate in any trading strategy. Readers should seek their own advice. Reproduction or redistribution of this information is not permitted.

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