USD Charts - GBP/USD, AUD/USD, USD/JPY & More
The US Dollar is trying to maintain support against several currencies. In today’s session we took a look at GBP/USD as it tries to maintain a bid up against strong confluent resistance. AUD/USD appears set up to turn down and test significant support again here soon. USD/JPY has bottoming pattern potential and will look to take another step this week in confirming a bullish scenario, but there are still some obstacles not too far higher to watch.
- GBP/USD up against confluent resistance
- AUD/USD turning down from resistance
- USD/JPY trying to confirm H&S formation
For forecasts and educational guides, check them out on the DailyFX Trading Guides page.
GBP/USD up against confluent resistance
GBP/USD is trading up against a strong area made up of three differing angles of resistance. The trend-line from the April 2018 high is in confluence with the 200-day MA and to a lesser degree of resistance there is an upper parallel tied to the September low.
This makes for a ripe spot to look for Cable to turn down, even if only temporarily to work off the two-day shot higher last week. On weakness, watch how price reacts to the October 2016 trend-line that acted as a ceiling in September. We could see a battle between levels before either a resolution in-line with the longer-term down-trend, or see buyers push GBPUSD above resistance and extend the multi-week climb.
GBP/USD Daily Chart (Confluent resistance)
AUD/USD turning down from resistance
AUD/USD is set up to trade lower in-line with the longer-term trend. It’s currently turning down from the July trend-line, working its way towards the lower parallel of a developing channel off the monthly low (best seen on the 4-hr). A break of the lower parallel should have significant support under the 6700-level back under siege. The more times it is tested (already 4 times since early August) the more likely it is it will eventually break.
AUD/USD Daily Chart (turning down from trend-line)
AUD/USD 4-hr Chart (watch developing channel)
USD/JPY trying to confirm H&S formation
USD/JPY’s rise last week put price just above the neckline of the head-and-shoulders pattern building since June. However, it is struggling to hold above last month’s high, so a little more strength would be ideal before getting too bulled up. The 200-day lies ahead at 10905, it’s also in approximate confluence with swing-highs created during the summer – this could make things difficult.
USD/JPY Daily Chart (H&S to confirm?)
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.