There was some action across FX markets on Wednesday with major currencies swinging between losses and gains.
King dollar weakened across the board thanks to falling treasury yields while the Japanese Yen appreciated against its major counterparts amid the cautious mood. Interestingly, commodity currencies like the Australian dollar and Canadian dollar were able to maintain their gains. But the pound and euro traded lower against most other G10 currencies with the EURUSD wobbling above 1.16 as of writing.
A lot is going on in the FX space thanks to the fundamental drivers with some potential big moves on the horizon. Today, our focus will be on G10 currencies and as you can guess – our tool of choice is technical analysis.
EURUSD bears rev engines
Watch this space, as things could get spicy for the EURUSD over the next few days to weeks.
Prices are under pressure on the daily charts and currently respecting a bearish channel. The MACD trades below zero while the candlesticks are trading below the 200, 100, 50, and 20-day Simple Moving Averages. Sustained weakness below 1.1600 may encourage a decline towards 1.1523 and 1.1500, respectively. Should 1.1600 prove to be reliable support, a move back towards 1.1660 and 1.1700 could be on the cards.
GBPUSD approaches sticky territory
As the subtitle says, the GBPUSD is approaching a sticky range with support at 1.3750 and resistance at 1.3900. Should the 50 SMA prove to be reliable minor support, a breakout through 1.3750 could happen this week. But this is where things get interesting. Above 1.3750 resides the 100-day and 200-day Simple Moving Average, followed by the 1.3900 resistance. Bulls certainly have a tough road ahead with multiple walls of resistance to conquer.
Should prices fail to push back above 1.3750, prices may decline towards 1.3670 and 1.3570.
EURJPY pullback or breakdown?
We already covered the fundamentals behind the EURJPY in our trade of the week. However, the technicals are raising some questions, especially after today’s choppy price action. We saw the EURJPY sink as low as 131.57 this afternoon before clawing back some small losses. Bulls and bears continue to fight for dominance and this continues to be reflected in price action. A range is forming with support around 131.90 and resistance at 132.60.
A solid daily close below 131.90 may trigger a breakdown with prices sinking towards 131.00 and 130.70. Alternatively, a strong back above 132.60 could open the doors towards 133.47 and 134.00.
NZDUSD eyes 0.7200
There is a classic breakout setup on the NZDUSD with the 0.7200 level acting as a key point of interest.
A solid breakout above 0.7200 may encourage a move towards 0.7240 and 0.7300. If 0.7200 proves to be a tough resistance to crack, prices may decline back towards 0.7130 and 0.7080.
USDCAD knocks on 1.2300’s door…
It looks like USDCAD bears are hungry for the 1.2300 level. There have been consistently lower lows and lower highs while the MACD trades below zero. A strong daily close below 1.2300 may open the doors towards 1.2250 and 1.2150, respectively.
Disclaimer: The content in this article comprises personal opinions and should not be construed as containing personal and/or other investment advice and/or an offer of and/or solicitation for any transactions in financial instruments and/or a guarantee and/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.
Article by ForexTime
ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC 185/12 www.forextime.com
