In this article, we would like to present the weekly technical forecast targeting the prospects of major financial assets during the period from Apr 02 to Apr 06.
Another week passed and the Euro – Greenback’s sideways trend continued to extend. The EMA 20 – SMA 50 zone remained narrow, offering little guidance about the next development of the currency pair. Next week, EUR/USD is likely to remain in its current state, with a daily hold below the abovementioned zone bringing the 1.21544 - 1.22052 support territory into focus (Mar 01 base, Feb 09 nadir). Alternatively, a turn higher will open the door for an advance towards the vicinity of 1.25350 (Jan 25 cusp).
The British Pound – US Dollar has spent most of this week plummeting into the EMA 20 – SMA 50 support area. Bearish momentum remained relatively vigorous, however, Friday’s action denoted that GBP/USD may find fresh buyers with the current price in the near future. Given a rebound above this area accompanied by a rise, the Jan 25 resistance barrier of 1.43415 could possibly be challenged soon. Otherwise, a penetration below the zone on a daily closing basis will have the 1.37129 – 1.37902 support territory in play.
The US Dollar – Japanese Yen exchange witnessed a fairly positive affair this week. The 105.538 threshold support-turned-resistance now was anew changed back into a support barrier. With such a strong bullish bias followed by a weak pullback, USD/JPY is likely to breach above the EMA 20 – SMA 50 zone for the foreseeable future. The next resistance balk is determined around 107.304 (Mar 13 high). Alternatively, the beforementioned zone could be broken to the downside with the 105.538 level back onto the radar should bears gain back their domination.
The Greenback – Loonie remained in its congestion this week. Price is consolidating in a small range, saving momentum for the coming weeks. A close above the EMA 20 with volume increasing on a daily closing basis paves the way for an ascent towards the Mar 19 peak at 1.31198. On the contrary, USD/CAD may find support around the 1.27981 significant level. Given a breach below it, new lows in the mid-term will likely appear.
The Australian Dollar – US Dollar continued active in its currently bearish tendency. Price is showing signs of an acceleration to the downside, signaling that we may witness fresh multi-week lows in the near future. A turn below the 0.76486 support obstacle will open the path up towards the important base at 0.7500 (Dec 08 nadir). Alternatively, a retest of the 0.77572 resistance barrier where the currency pair rebounded this week may occur should a recovery come into the fray.
The New Zealand Dollar – US Dollar’s bearish sentiment continued to prevail this week. From a broader perspective, the EMA 20 - SMA 50 range indicating downward momentum is expanding. Coupled with recently tentative recoveries, the currency pair is highly likely to witness a strong descent for the foreseeable future. The 0.71379 - 0.71737 support territory could be confronted, with a break beneath that opening the door for multi-week bases in the near-term. Alternatively, the Jan 24 high at 0.74327 will be in focus given a break back above the beforementioned range.