Euro Looks to Test All-Time Highs

[DailyFx]

-?? ?Euro Looks to Test All-Time Highs
-?? ?Japanese Yen Failure at 119.80 to Force Pullback
-?? ?British Pound Eyes a Break of 2.0000
-?? ?Swiss Franc Trades within Descending Triangle
-?? ?Canadian Dollar Bearish Trend Intact
-?? ?Australian Dollar Retesting Previous Spike-lows
-?? ?New Zealand Dollar Triangle Broken, Uptrend Supports




EURUSD - The euro continues to find support at the 1.3580-3600 level as tries to make a possible second assault on all time highs at 1.3666. Secondary support comes in at 1.3540. Should that level be broken it suggests a much steeper retrace to possibly the 1.3350-1.3450 consolidation zone from the start of the month.



USDJPY - After reaching the near term target of 119.38 as we suggested in yesterday commentary, USDJPY continues to encounter stiff resistance at 119.80 level. If that level is not breached with authority the rejection is likely to send the pair back to the 118.50 support zone. On the other hand, a move past 120.00 opens the way to 121.50 before chart action shows any significant resistance.



GBPUSD - After hitting resistance at the 2.0060 level as we pointed out yesterday, cable saw a flurry of profit taking that took the pair below 1.9900. However, hourly charts indicate stabilization at 1.9900 level that may generate enough momentum to challenge the 2.0050 target once again. A failure through 1.9850 however opens the way for a much larger corrective move all the way 1.9550. For now however the short term bias is up.



USDCHF - After rallying as suggested in our report yesterday, the USDCHF was summarily rejected at the 1.2100 level and has now turned lower. Note that over the past two weeks the pair has made a series of lower swing highs in keeping with a downward bias. However momentum appears to be waning and we may be entering a period of consolidation marked by the 1.2100-1.2000 zone. A break of either handle suggests further continuation in that direction so traders should watch these levels carefully.



USDCAD - Yesterday we said “Oscillators remain in extremely oversold territory, leaving short-term price objectives to the topside. The channel top comes in at yesterday’s high of 1.1230, with a failure at this level to look for further medium term declines.” The USDCAD has thus far failed exactly at 1.1231, confirming our bearish bias. The pair stands to decline to subsequent support at the 4/25 low of 1.1135, with a move below setting channel-lows as price targets. Only a sustained close above 4/19 highs at 1.1309 negates the bearish case.



AUDUSD - Yesterday we cited a MACD crossover and a reversal at channel resistance leaving risks to the downside for short-term trade. Price has since stalled at intraday support of 0.8240, with bullish divergence and crossover on the hourly MACD pointing short-term risks once again to the upside. Resistance lies at the confluence of congestion levels and the 38.2 retracement of the day’s decline at 0.8280. A break eyes the 61.8 Fibonacci of the same move at 0.8315, with continuation leaving channel highs at 0.8350 as measured objectives. Coming below 0.8240 negates the short-term bullish case, with extension to challenge channel-lows of 0.8200.



NZDUSD - The NZDUSD has broken through triangle support at 0.7400, but a month-long upward sloping trendline has stalled declines at intraday lows of 0.7350. The previous upward sloping triangle line has served as immediate resistance, as a swift reversal at 0.7419 shows that bears may still control price action through the short term. A death cross on the daily MACD bolsters the bearish case, with a break of trendline support at 0.7350 leaving 4/12 low of 0.7249 as a measured objective. The short-term bearish case is negated on a move above 0.7420, with extension eyeing intraday resistance at triangle-highs of 0.7480.



Intraday Pivot Levels