US Dollar, Australian Dollar, Euro, Japanese Yen, British Pound – Price Action Setups:
- US Dollar remains in a broadly bullish position against major peers
- AUD/USD Head & Shoulders, EUR/USD Death Cross are in focus
- USD/JPY Bullish Golden Cross eyed, GBP/USD remains neutral
AUD/USD Daily Chart – Head & Shoulders Breakout in Play
The US Dollar may be setting the stage to extend gains against the Australian Dollar. AUD/USD has confirmed a breakout under a bearish Head & Shoulders chart formation after taking out the neckline around 0.6893. Immediate support is the 38.2% Fibonacci retracement level at 0.6781. Breaking under this price could open the door to extending losses toward the 61.8% level at 0.6547. Meanwhile, a bearish Death Cross between the 20- and 50-day Simple Moving Averages (SMAs) is likely on the horizon.
EUR/USD Daily Chart – Death Cross on the Horizon
The US Dollar may also be reading to continue its rise against the Euro. Looking at EUR/USD, a bearish Death Cross has formed between the 20- and 50-day SMAs. This followed a breakout under a bearish Rising Wedge chart formation that occurred back in January. Key support below appears to be the 38.2% Fibonacci retracement level at 1.0461. Beyond that is the midpoint at 1.0284. In the event of a turn higher, the SMAs could hold as resistance, maintaining the downside focus.
USD/JPY Daily Chart – Golden Cross in Play
The US Dollar has been pushing higher against the Japanese Yen in recent weeks. Eyeing USD/JPY, a bullish Golden Cross is in play between the 20- and 50-day SMAs. This follows a breakout above a key falling trendline from October, opening the door to a bullish reversal. Key resistance is the 38.2% Fibonacci retracement level at 136.66, followed by the midpoint at 139.58. Meanwhile, immediate support is at the 23.6% level at 133.05 as the 20-day SMA creeps higher. The latter could maintain a near-term upside focus.
GBP/USD Daily Chart – Eyes on 100-day SMA
The US Dollar remains in a neutral setting against the British Pound. GBP/USD has been consolidating since the end of November as a key zone of resistance was established between 1.2293 and 1.2444. Meanwhile, prices have been consistently bouncing off support around 1.1951, which is the 23.6% Fibonacci retracement level. The 100-day SMA is fast approaching, which could reinstate an upside focus. Otherwise, extending lower would offer a bearish outlook for the pair, placing the focus on the 1.1639 – 1.1738 inflection zone.
--- Written by Daniel Dubrovsky, Strategist for DailyFX.com
To contact Daniel, use the comments section below or@ddubrovskyFXon Twitter
