US Dollar at Critical Juncture Versus Euro, British Pound, Australian Dollar
Written by David Rodriguez, Quantitative Analyst
Dailyfx.com provides free news, trading resources, and market analysis to the trading community.
The Euro/US Dollar’s recovery has taken the pair to the top of its month-long trading channel, and current levels represent a potentially significant turning point for the pair. The next 24 hours will likely prove important to gauge short-term direction for the EUR/USD and other US Dollar pairs.
The Euro/US Dollar’s recovery has taken the pair to the top of its month-long trading channel, and current levels represent a potentially significant turning point for the pair. If it makes a sustained break above its recent double-peak at the 1.3000 mark, we may expect a further rally to its previous consolidation zone above 1.3300. If, on the other hand, the Euro fails to decisively clear near-term support, we would look for a shorting opportunity below previous resistance and current support of 1.2850. The next 24 hours will likely prove important to gauge short-term direction for the EUR/USD.
The US Dollar/Japanese Yen pair is similarly at a crossroads. Having failed to close above important resistance at the 98.40 mark, the pair could potentially resume its declines through the next 24 hours of trading. The US Dow Jones’ failure to hold gains likewise leaves risks for short-term USD/JPY weakness, and it will be important to watch equity market sentiment through the upcoming Asian market session. Previous resistance and current support at 96.00 represents the next potential price floor. Of course, a clear break above aforementioned resistance at 98.50 would negate our shorter-term bearish bias. Discuss the USD/JPY in our forex forum.
The British Pound/US Dollar pair is at an important juncture through recent trading. In rallying over 1000 pips from its recent lows, the GBP/USD has positioned itself directly below previous spike-highs and potentially significant Fibonacci resistance near the 1.6400 mark. A decisive break higher would signal that a test of further resistance at 1.6650 is likely, but a near-term failure would confirm that the pair remains confined within its overall downtrend. Much as we claim for the EUR/USD and USD/JPY, the GBP/USD stands at a key technical level as far as short-term direction is concerned.
This morning we wrote, “A shorter-term USD/CHF chart shows that the pair recently broke its upward-sloping trendline, and our bias now remains firmly to the downside”. The USD/CHF has gone on to fall aggressively and broken through immediate support—confirming our bearish bias. Its noteworthy bounce at previous spike-lows and Fibonacci support at 1.1250 suggests that a very short-term bounce is likely, but overall momentum remains weighted firmly to the downside. Continued failure at previous support near 1.1500 would keep our bearish bias intact.
This Article continues HERE, and looks at the following pairs also: USD/CAD, AUD/USD, NZD/USD.
Dailyfx.com provides free news, trading resources, and market analysis to the trading community.
Written by David Rodriguez, Quantitative Analyst
Dailyfx.com provides free news, trading resources, and market analysis to the trading community.
The Euro/US Dollar’s recovery has taken the pair to the top of its month-long trading channel, and current levels represent a potentially significant turning point for the pair. The next 24 hours will likely prove important to gauge short-term direction for the EUR/USD and other US Dollar pairs.
The Euro/US Dollar’s recovery has taken the pair to the top of its month-long trading channel, and current levels represent a potentially significant turning point for the pair. If it makes a sustained break above its recent double-peak at the 1.3000 mark, we may expect a further rally to its previous consolidation zone above 1.3300. If, on the other hand, the Euro fails to decisively clear near-term support, we would look for a shorting opportunity below previous resistance and current support of 1.2850. The next 24 hours will likely prove important to gauge short-term direction for the EUR/USD.
The US Dollar/Japanese Yen pair is similarly at a crossroads. Having failed to close above important resistance at the 98.40 mark, the pair could potentially resume its declines through the next 24 hours of trading. The US Dow Jones’ failure to hold gains likewise leaves risks for short-term USD/JPY weakness, and it will be important to watch equity market sentiment through the upcoming Asian market session. Previous resistance and current support at 96.00 represents the next potential price floor. Of course, a clear break above aforementioned resistance at 98.50 would negate our shorter-term bearish bias. Discuss the USD/JPY in our forex forum.
The British Pound/US Dollar pair is at an important juncture through recent trading. In rallying over 1000 pips from its recent lows, the GBP/USD has positioned itself directly below previous spike-highs and potentially significant Fibonacci resistance near the 1.6400 mark. A decisive break higher would signal that a test of further resistance at 1.6650 is likely, but a near-term failure would confirm that the pair remains confined within its overall downtrend. Much as we claim for the EUR/USD and USD/JPY, the GBP/USD stands at a key technical level as far as short-term direction is concerned.
This morning we wrote, “A shorter-term USD/CHF chart shows that the pair recently broke its upward-sloping trendline, and our bias now remains firmly to the downside”. The USD/CHF has gone on to fall aggressively and broken through immediate support—confirming our bearish bias. Its noteworthy bounce at previous spike-lows and Fibonacci support at 1.1250 suggests that a very short-term bounce is likely, but overall momentum remains weighted firmly to the downside. Continued failure at previous support near 1.1500 would keep our bearish bias intact.
This Article continues HERE, and looks at the following pairs also: USD/CAD, AUD/USD, NZD/USD.
Dailyfx.com provides free news, trading resources, and market analysis to the trading community.
