Weekly FX Technical Analysis round-up – Tuesday 18th July 2017
SUMMARY OF KEY FX RATES
AUDUSD Monthly Chart (10-years)
AUDUSD is completing a base and .8516 is targeted next with .7717 (the resistance line that was broken should now support)
AUDJPY Weekly Chart (3-years)
AUDJPY has completed a head and shoulders base pattern with neckline at 87.35 broken. MACD is also showing signs of gaining momentum and we now target 92.67 initially, possibly 97.26. Below 87.00 to avert upside
NZDUSD Daily Chart (3-years)
NZDUSD is now crossing down from the overbought area but the latest bounce has put the bearish outlook in question. A broadening wedge formation top may complete but above .7403 will avert any downside towards .7052-.7089 area, and instead will open .7484-.7525.
EURAUD Daily Chart (6-month)
AUDCHF has completed a top with a break of 1.4629 and we now target 1.4447 intially possibly 1.4169-1.4291 area. Above 1.4813 needed to change outlook.
Major Currency Pairs
EURUSD Daily Chart (6-month)
EURUSD has now entered out initial 1.1530-1.1611 (2015/2016 highs) target, with 1.1701 (August 2017 high) possible. Above there next area of any note is 1.1870-81. MACD is showing some signs of exhausation but there is no tell tell signs of the upside stalling. Below 1.1375 to question upside
GBPUSD Daily Chart (6-month)
GBPUSD MACD is moving higher into the positive territory but there is some signs of stalling around the overbought area. 1.3119 resistance has also held firm. Hence we may see a dip to 1.2915, possibly 1.2813. However, while above 1.2813 and MACD above the zero line we still see upside to 1.3186, possibly 1.3276. Below 1.2813 averts upside.
USDJPY Daily Chart (6-month)
USDJPY is rejected by resistance near 114.36 and we expect a test of former resistance-turned support area around 111.61-112.11 given MACD has started to reverse from the overbought area. While 111.61 holds chances are of an upside to 115.60. Below 111.61 to open 110.13-110.79
AUDUSD Daily Chart (6-month)
AUDUSD met our .7831 target but the price action still looks constructive and MACD is still not in the overbought category. Hence we expect a further upside to .8072, possibly .8160-.8293 area. Below .7711 is needed to question upside.
EURGBP Daily Chart (6-month)
EURGBP latest bounce has established a bull channel and we project .8948 on a bounce with .9025 likely over the coming weeks. MACD will need to move below zero and .8720 needs to give way to avert upside.
USDCAD Daily chart (6-month)
USDCAD 1.2463, 2016 low, is where we may see some support emerge but failure to hold will trigger 1.2276 test (uptrend from 2012). We expect bounce to be capped by 1.2837 but above 1.2942 will be needed to question downside.