In this article, we would like to present the weekly technical forecast targeting the prospects of major financial assets during the period from Apr 29 to May 05.
This week was an extremely pessimistic week for the Euro – Greenback exchange with the 21544 - 1.22052 support territory penetrated beautifully. Nevertheless, Friday’s action showed signs of profit taking as well as some bulls entering the game, suggesting that we may witness a short-term recovery next week. The abovementioned zone is likely to be tested back, with a strong break above that exposing the EMA 20 - SMA 50 resistance area. Alternatively, a breach below 1.20879 (Jan 4 high) will bring the Jan 9 nadir at 1.19129 into focus.
The British Pound – Greenback continued to see bearish momentum dominating in this week’s sessions. The 1.37129 – 1.37902 support territory has been reached on Friday. From here, we expect a bounce followed by a short-term consolidation before prices continue to descend. A penetration below the abovementioned area paves the way for a further decrease towards the next base around 1.36116 (Jan 3 peak). Alternatively, a strong rally will demand a reassessment as to whether a new driver has come into the fray.
The Greenback – Japanese Yen was a robust performer this week. Strong bullish sentiment quickly pushed prices above the 108.255 resistance threshold (Jan 26 low). With bulls remaining energetic, the next resistance barrier determined in the vicinity of 110.456 – 110.832 is likely to be challenged for the foreseeable future. Otherwise, the resistance-turned-support 108.255 could be retested should a retracement come into play.
The Greenback – Loonie posted a positive start to the week but has spent the remainder of the week oscillating around the SMA 50 line. We remain bullish on the currency pair; the 1.27981 threshold – now recast as support – will play an important role given a correction. From here, a strong rally will open the door for a further advance towards the 13-month high at 1.31197. Alternatively, a fall back below the EMA 20 with a strong bearish bias will put the support hurdle at 1.26143 back onto the radar.
The Australian Dollar – US Dollar continued active in its long-term downward tendency. The support obstacle at 0.76486 couldn’t do much; it was pierced nicely from the beginning of the week. Friday’s action denoted signs of some bears taking profit, but we remain bearish on AUD/USD. The next substantial support balk is ascertained at 0.75000, which is likely to halt bearish momentum. Alternatively, the support-turned-resistance 0.76486 may come in play should a correction appear sooner than expected.
This Wednesday marked the seventh day in a row that the New Zealand Dollar – Greenback exchange plummeted. As bears almost completely overpowered the round, the 0.71379 – 0.71737 support zone witnessed itself penetrated from the start of the week. Prices found support around 0.70728 in the final two days of the week; however, with bearish momentum remaining very strong, there are minimal expectations for a hold from this level. The next support balk is defined around 0.70248 (Dec 15 high). Alternatively, a rally from 0.70728 will likely re-target the support-turned-resistance area around 0.71379 – 0.71737.