US Dollar, EUR / USD, USD / CAD, AUD / USD, GBP / USD – Weekly Technical Outlook
EUR / USD – neutral
The Euro will remain at the lowest levels set for the US dollar in August if the EUR / USDUSD broke over bullish Falling wedge chart pattern. Continuing after the holidays suggested that the couple could reverse the downward trend from May to mid-August. Since then, the couple has had difficulty finding lasting momentum after hitting key resistance points.
The front and center are the resistance zone between 1.1887 and 1.1909, where prices have fallen Falling star candlestick. During the last couple of trading sessions, the couple saw some negative progress. Keep a close eye on the 50-day Simple Moving Average (SMA), which can reverse the focus. Further gains may focus on the 100-day SEA. Otherwise, the EUR / USD could look back at its August low of 1.1664.
USD / CAD – neutral
Although the US dollar is still higher Canadian dollar compared to the lowest in May, the USD / CAD has spent most of its consolidation time since mid-July. At the beginning of August, a golden cross emerged between the 50- and 100-day SEAs, offering a broader upward technical bias. Nevertheless, the pair has consistently fought around the July high of 1.2808, making a significant point of resistance.
Continuing the upward trend in May would be accompanied by a push into the long upper will created on 20 Augustth. At that time, prices stopped on December 21st tip 1.2957. As such, it could be argued that the zone between 1.2808 and 1.2957 provides critical and broad resilience. On the downside, a 100-day SMA can be a central support and help restore upward focus. Exceeding it could open the door to see the lowest level in 2021.
AUD / USD – war
The US dollar can see strength Australian dollar in front. AUD / USD lagged behind a Karu Harami last week, opening the door to turn lower. What’s more, there is a 50- to 100-day SMA in the game about the bear’s death. The main support can be the 0.7329-0.7290 turning zone. In addition, sitting on August 27th low 0.7222 before opening the door to the August low of 0.7106.
Instead of turning higher, a 100-day SMA can be a key obstacle, turning Aussie lower. Moreover, the possible downward trend from February may keep the dominant downward trend intact. In other words, there may still be room for potential upside potential, but medium-term biases appear to be downward.
GBP / USD – neutral
The US dollar remains in a consolidating state British pound. In the medium term, GBP / USD appears to be fluctuating within a rising rectangle. The bottom of the chart pattern appears to be between 1.3572 and 1.3671. A final test in this zone may suggest that the pair may be climbing toward the ceiling, which appears to be in the range of 1.4182 to 1.4251.
Crushing the ceiling may open the door to continue the upward trend observed from September 2020 to February 2021. Nevertheless, the harsh death crossing of 50- and 100-day SMAs underlines the technical bias. If the rectangle breaks, the pair may be at an increasing risk of the material becoming lower.
– Written by Daniel Dubrovsky, Strategist For DailyFX.com
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