The Euro/US Dollar has rallied off of important support near the 1.2465 mark, and a study of the EUR/USD’s short-term technical picture suggests it may have room left to rally. EUR/USD recently broke the 61.8 percent Fibonacci retracement of the 1.3010-1.2330 decline at 1.2750, and previous resistance now serves as support for any further EUR/USD strength. Such an outlook is consistent with Euro/US Dollar forecasts from our forex trading signals.
The Euro/US Dollar has rallied off of important support near the 1.2465 mark, and a study of the EUR/USD’s short-term technical picture suggests it may have room left to rally. EUR/USD recently broke the 61.8 percent Fibonacci retracement of the 1.3010-1.2330 decline at 1.2750, and previous resistance now serves as support for any further EUR/USD strength. Next resistance comes in at intraday double-tops of 1.2845, while a full short-term retracement to 1.3000 seems the more likely outcome for the Euro/US Dollar pair. Such an outlook is consistent with Euro/US Dollar forecasts from our forex trading signals.
The US Dollar/Japanese Yen currency pair’s sharp rally off of its long-term falling trend channel suggests that it may have room for further short-term strength. Yet the USD/JPY has thus far been unable to decisively clear important resistance at the 38.2 percent Fibonacci retracement of the 110.70-90.90 move at 98.50—raising doubts about its near-term prospects. Intraday USD/JPY support comes in at spike-lows of 96.08, while noteworthy resistance may present a stumbling block at the peak of 99.73. The broader theme of Japanese Yen retracements nonetheless leaves our short-term bias to the topside. Discuss the USD/JPY with other traders in our forex forum.
The British Pound made a noteworthy bounce against the US Dollar on important long-term support at the 1.5300 mark, and short-term momentum favors further GBP/USD gains. A look at the 60-minute chart shows that the GBP/USD has recently stalled at the 78.6 percent Fibonacci retracement of the 1.6330-1.5270 move at 1.6100, but a break higher would likely take the GBP to the full retracement of said move at 1.6330. Increasingly one-sided FX trader sentiment has led our Speculative Sentiment Index-based trading signals to buy the GBP/USD through yesterday’s trade, and we expect that it may continue to rally through to 1.6330 before potential for a noteworthy turn.
A long-term study of the US Dollar/Swiss Franc shows that the USD/CHF has recently turned down at or near the top of its 5-year trend channel—suggesting that recently-impressive USD/CHF strength may soon come to an end. 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. Next noteworthy support comes in at the 1.1315 mark, while intraday spike-highs at 1.1517 represent nearest resistance.
The US Dollar/Canadian dollar pair has finally made a major turn through recent trade, and the USD/CAD currently challenges important support at the bottom of its upward-sloping price channel. A break below the 1.2560 opens up a further downward move to the full retracement of its recent bull wave at 1.2430. Such a move would be consistent with the broader theme of US Dollar retracement, and we envision that the USD/CAD could indeed retrace more of its recently dramatic strength. Former support of 1.2655 serves as immediate resistance. Discuss the Canadian Dollar with other traders in our forex forum’s USD/CAD thread.
The Australian Dollar has seen a noteworthy retracement against the US Dollar, and the pair currently trades above previous resistance at the 0.6460 mark. A further pullback in the US Dollar and recovery in the AUD is likely to take the pair to further resistance at 0.6580 and the full retracement of its recent 800-point drop at 0.6750. The overall direction for the AUD/USD remains lower, but further short-term strength seems likely given the severity of the previous move.
The New Zealand Dollar/US Dollar pair recently rebounded off of key support of the 61.8 percent Fibonacci retracement of its 8-year advance—a potential turning point for the NZD/USD. A break of the 61.8 percent Fibonacci retracement is largely considered the point at which the previous wave is officially over, and a break lower would point to further NZD/USD weakness. Given the impressive retracement, we expect further short-term NZD/USD strength through the near term. A decisive break above current resistance at 0.5750 opens up a move towards the top of its downward-sloping channel at 0.5900.