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US Dollar, EUR/USD, USD/JPY Charts and Outlook for Next Week

US Dollar, EUR/USD, USD/JPY Charts and Outlook for Next Week

Paul Robinson, Strategist

The U.S. Dollar Index (DXY) may be undergoing more than a simple correction here, with an upward channel on the verge of breaking. The Euro will lead the charge here if this is the case as it is the largest currency versus the Dollar. USDJPY is up against trend resistance and may be set up to retreat for a bit.

Technical Highlights:

  • US Dollar Index (DXY) on verge of larger down-move
  • EUR/USD positioned to trade higher if resistance breaks
  • USD/JPY at trend resistance, waiting for negative price action

See where our team of analysts see your favorite markets and currencies headed in the in the DailyFX Trading Forecasts.

US Dollar Index (DXY) on verge of larger down-move

The US Dollar Index (DXY) looks headed for lower prices here as a lower-high could soon lead to a lower-low and a break of the upward grind its been in. The weak grinding price action wouldn’t take much to lead to a downside momentum-move. A move below 97.86 is seen as quickly having the trend-line from the 2018 low and 200-day in focus, with a break below that confluence leading to a pair of underside trend-lines dating back a year-ago.

US Dollar Index (DXY) Daily Chart (larger down-move looks in store)

US Dollar, EUR/USD, USD/JPY Charts and Outlook for Next Week

EUR/USD positioned to trade higher if resistance breaks

The Euro is the antithesis of the DXY, as it makes up roughly 57% of the index. With that in mind, the trend-line from Feb of last year could come into play along with the 200-day at 1.1259. Beyond there are a couple of trend-lines running over from early this year and last September. If the channel resistance holds here, we should know very soon whether this is the case, then the downward trend since June will remain intact.

EURUSD Daily Chart (watch upper parallel)

US Dollar, EUR/USD, USD/JPY Charts and Outlook for Next Week

EURUSD Chart by Tradingview

USD/JPY at trend resistance, waiting for negative price action

USD/JPY has extended nicely in recent sessions, bringing into play a channel line from late-April. Price action isn’t yet bearish, but should momentum start to turn down here then a pullback at the least could get under way. If resistance doesn’t keep a lid on price, the next area of resistance clocks in around 108.80 up to the 200-day at 109.44 and declining.

USD/JPY Daily Chart (at upper parallel)

US Dollar, EUR/USD, USD/JPY Charts and Outlook for Next Week

USDJPY Chart by Tradingview

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---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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