We forecast that the US Dollar will see a short-term decline against the Euro, but our longer-term predictions continue to favor US dollar strength. The Dollar could nonetheless strengthen against the resurgent Japanese Yen and downtrodden British Pound.
The Euro has seemingly set a short-term bottom through recent trade, with a further rally likely before a resumption of its medium term decline. The EURUSD next eyes significant resistance at previous congestion levels at the 1.3910 mark, while subsequent Fibonacci resistance near the 1.4000 mark could likewise cap rallies. Discuss the EURUSD with a community of traders in the DailyFX Forex Forum.
The US Dollar’s sharp declines against the Japanese Yen met with noteworthy Fibonacci support at the 61.8 percent retracement of the 95.71-110.60 advance, and it seems that a further short-term bounce is likely. Subsequent USDJPY resistance is seen at previous congestion levels and Fibonacci retracements at 103.15, while a continued move to the topside would meet further noteworthy price ceilings at the pair’s 200-day Simple Moving Average at 105.84. Our long-term USDJPY Forecast signals a move towards 95 is likely.
Outlook for the British Pound/US Dollar pair will almost completely depend on whether it is able to rally past near-term resistance at the 1.7640 mark. A failure at said level would open up the GBPUSD to further weakness, while a break above would likely see a move towards next noteworthy price ceilings at the 1.7840 mark. Longer term, we forecast that the British Pound will decline to at least 1.70 against the US dollar.
The US Dollar/Swiss Franc has lost ground but remains in its short-term upward-sloping channel. A continued hold of 1.1352 would signal further gains are likely, with further noteworthy resistance seen at recent highs of 1.1490. A break below 1.1352 would eye subsequent support near the psychologically significant 1.1300 mark and weekly lows of 1.1215. See our longer-term perspective on the USDCHF.
The US Dollar/Canadian Dollar pair broke through aforementioned resistance above the 1.0800 mark, negating bearish potential and signaling that its medium term trend remains to the topside. Short-term direction likewise remains bullish on a hold of its upward-sloping price channel at 1.1000. Resistance to the topside rests at recent yearly highs of 1.1094. Discuss the Canadian dollar with other traders in the USD/CAD Forum Thread.
The Australian Dollar/US Dollar pair’s recent decline leaves us to look for support on a long-term chart, and it seems that the AUDUSD is likely to extend its losses towards a key 61.8 Fibonacci retracement of its 7-year advance at 0.6743. Shorter-term, it seems that the AUDUSD is stuck between an intraday range between 0.7000 and 0.7337. A break to the topside sees next noteworthy resistance at spike-highs of 0.7822. Get short-term trading ideas for the AUDUSD and AUDJPY through our DailyFX+ Forex Trading Signals.
A New Zealand Dollar/US Dollar break below key support leaves it very much at risk for a medium-term move below 0.6000. Shorter-term, the NZDUSD remains within a choppy range between 0.6162 and 0.6430. Given an overall NZDUSD-bearish forecast, we would concentrate on selling rallies through upcoming trade.