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Recently, the dollar spectrum has been a mixed bag with some holding more directional conviction than others; USD/CHF pullback into support attractive from the long-side. A few key cross-rates have levels of interest. European equities looking vulnerable, specifically the DAX & FTSE.

Technical Highlights:

  • USD/CHF in focus on pullback form long-side, USD/JPY from short-side
  • In the cross-rate world, looking at GBP/NZD, AUD/JPY, and others
  • DAX, FTSE looking vulnerable as they continue to under perform

For longer-term technical and fundamental analysis, and to view DailyFX analysts’ top trading ideas for 2018, check out the DailyFX Trading Guides page.

USD/CHF in focus on pullback form long-side, USD/JPY from short-side

Last week, USD/CHF broke above resistance surrounding the mid-9400s and since then pulled back into the area. Not only is prior price resistance now viewed as support, but there is also a trend-line rising up from last month’s low in confluence. Should a rise today hold, then a higher-low could be cemented for another leg higher.

The move higher, though, may still be corrective in nature as an ascending wedge within a downtrend could form. But for now, running with current support at hand as a possible spot for longs to join in an ongoing move higher.

USD/CHF Daily Chart (At confluence of support)

usdchf daily price chart at support

USD/JPY on the other hand isn’t looking too healthy in the dollar-spectrum with yesterday’s rejection at resistance in an ongoing downtrend. Risk trends here could become a factor even though the dollar may generally firm up, leaving the dollar to decline versus an even stronger yen.

USD/JPY Daily Chart (Rejected at resistance in downtrend)

usdjpy daily chart turn down from resistance

Also checked in on GBP/USD, EUR/USD, NZD/USD, and USD/CAD…

In the cross-rate world, looking at GBP/NZD, AUD/JPY, and others

GBP/NZD is of interest due to its numerous bottoms down near 18900 and lower highs since January. Price action is taking the form of a descending wedge just beneath a trend-line running higher since August. A close below all recent lows will have focus shifted towards 18615/560

See how current positioning in various pairs could impact their next moves on the IG Client Sentiment page.

GBP/NZD Daily Chart (Descending wedge forming)

gbpnzd daily price chart with wedge

AUD/JPY found good support around 8150 earlier in the month, but yesterday turned sharply lower from resistance in the mid-8400s. Yesterday’s key-reversal bar could cement a high for now and is viewed as a point of reference for shorts.

AUD/JPY Daily Chart (Key-reversal at resistance)

audjpy daily price chart at resistance

Other crosses we looked at included GBP/JPY, CHF/JPY, AUD/NZD, EUR/AUD, and a few others…

DAX, FTSE looking vulnerable as they continue to underperform

European equities continue to underperform the U.S., and by a fairly wide margin. Yesterday’s turn lower may have cemented lower-highs in both the DAX and FTSE. Check out this morning’s commentary for more details on the FTSE.

DAX Daily Chart (Lower-high in the works)

dax daily chart with possible lower-high

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Whether you are a new or experienced trader, we have several resources available to help you; indicator for tracking trader sentiment, quarterly trading forecasts, analytical and educational webinars held daily, trading guides to help you improve trading performance, and one specifically for those who are new to forex.

---Written by Paul Robinson, Market Analyst

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