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Dollar Charts: USDJPY, EURUSD, USDCAD Technical Analysis & More

Dollar Charts: USDJPY, EURUSD, USDCAD Technical Analysis & More

Paul Robinson, Strategist

The U.S. Dollar has generally been weakening against currencies outside of the Japanese Yen, a trend to continue or not? USDJPY is up against resistance and has a negative trend structure. EURUSD is off recent lows but below resistance levels, may soon turn back lower. USDCAD is amidst a sizable short-term decline, but the big-picture prospects for a much larger decline are growing.

Technical Highlights:

  • USDJPY near resistance, weak overall trend
  • EURUSD has an attractive spot to watch for new shorts
  • USDCAD long-term technical outlook may soon matter

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USDJPY near resistance, weak overall trend

USDJPY has been in bounce mode the past couple of weeks, but strength could soon be tested as an upper parallel to a descending channel is very near. Given resistance and that the general trend is pointed lower, it sets USDJPY up for a potential drop soon. The 4-hr chart has a rising wedge in place that could help guide entries on shorts.

USDJPY Daily Chart (upper parallel, weak trend)

Dollar Charts: USDJPY, EURUSD, USDCAD Technical Analysis & More

USDJPY 4-hr Chart (wedge)

Dollar Charts: USDJPY, EURUSD, USDCAD Technical Analysis & More

USDJJPY Chart by Tradingview

EURUSD has an attractive spot to watch for new shorts

The Euro continues to maintain the same character it’s had for months and months with the latest drop to new lows only lasting briefly before a rebound began. The bounce so far hasn’t been that strong but there is room for it to go before reaching a more significant level of resistance via the upper parallel of the channel in place since June.

A drop from here doesn’t leave much room for shorts given the November 2017 trend-line runs just beneath. A rise to the upper parallel does, however, leave a better set of risk parameters to work with. Keep in mind that on Thursday there is an ECB meeting.

EURUSD Daily Chart (watch upper parallel)

Dollar Charts: USDJPY, EURUSD, USDCAD Technical Analysis & More

EURUSD Chart by Tradingview

USDCAD long-term technical outlook may soon matter

USDCAD’s recent weakness is bringing into view a longer-term outlook that I’ve had for a while, but has yet to gain traction. Turning to the weekly chart, the channel structure from 2017 to this year was broken back in June. This could have helped further push USDCAD over the edge and may soon lead a similar result as the one seen in 2017 when the pair feel sharply.

There is the 2012 trend-line to fall below, first, but if it does then soon we could see solid momentum kick in as the weak overlapping price action from 2017-2019 is quickly undercut. It is only a scenario at this moment with support still holding, but one that could get underway at any time.

USDCAD Weekly Chart (Another drop coming soon?)

Dollar Charts: USDJPY, EURUSD, USDCAD Technical Analysis & More

USDCAD Chart by Tradingview

Resources for Forex & CFD Traders

Whether you are a new or an experienced trader, DailyFX has 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

You can follow Paul on Twitter at @PaulRobinsonFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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