US Dollar, Euro, Australian Dollar, Japanese Yen, British Pound – Price Action Setups:
- US Dollar broad technical outlook remains relatively bullish
- EUR/USD wedge breakout, AUD/USD Head & Shoulders eyed
- USD/JPY and GBP/USD facing 50-day SMAs for next moves
EUR/USD Daily Chart – Rising Wedge Breakout Still in Focus
The Euro may remain vulnerable to the US Dollar from a technical standpoint. That is because last week, EUR/USD continued to make downside progress after clearing under a Bearish Rising Wedge chart formation. Immediate support is the 23.6% Fibonacci retracement level at 1.068, which was reinforced over the past 24 hours as prices were unable to clear this floor. Further upside progress, especially through the 1.0713 – 1.0787 inflection zone, would place the focus on the floor of the wedge. Otherwise, extending losses exposes the 38.2% level at 1.0461.
AUD/USD Daily Chart – Head & Shoulders Brewing
The US Dollar could be readying to extend gains against the Australian Dollar. In addition to a Rising Wedge, a bearish Head & Shoulders chart formation is brewing on the daily chart below. The neckline seems to have been reinforced around 0.6893. A confirmatory breakout under this price could open the door to extending losses toward the 100-day Simple Moving Average (SMA). Otherwise, pushing above 0.7009 – the right shoulder – opens the door to revisiting the January high where key resistance stands around 0.7137.
USD/JPY Daily Chart – Trendline Breakout Remains in Focus
The US Dollar remains higher against the Japanese Yen since USD/JPY broke above the falling trendline from the end of last year. Still, the 50-day SMA is holding as critical resistance, maintaining the broader downside focus. A confirmatory push above the 23.6% Fibonacci retracement level at 133.05 would likely offer an increasingly bullish outlook, placing the focus on the 38.2% Fibonacci retracement level at 136.66. Otherwise, a turn lower places the focus on the January low at 127.22.
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GBP/USD Daily Chart – Prices Bounce off Double Top Neckline
The US Dollar continues consolidating against the British Pound. GBP/USD recently bounced off the neckline of a Double Top chart formation around 1.1951. This followed an emergence of a Doji candlestick pattern, which showed indecision as prices hit support on the way down. That has opened the door for prices to revisit the critical 1.2293 – 1.2444 resistance zone. Key resistance is the 50-day SMA. Clearing the latter opens the door to face last month’s high. Otherwise, breaking under the neckline exposes the 100-day SMA.
--- Written by Daniel Dubrovsky, Strategist for DailyFX.com
To contact Daniel, use the comments section below or@ddubrovskyFXon Twitter
