In this article, we would like to present the weekly technical forecast targeting the prospects of major financial assets during the period from Apr 09 to Apr 13.
This week recorded no impressive moves of the Euro – Greenback exchange. Price has tried to approach the 1.21544 - 1.22052 support territory on Thursday but was rejected due to traders finding good bullish opportunities, suggesting that we may see a retest of the EMA 20 – SMA 50 narrow range for the foreseeable future. A breach and hold above that will open the path up towards the vicinity of 1.25350 (Jan 25 cusp). Otherwise, given bears coming into the fray, EUR/USD may re-challenge the 1.21544 - 1.22052 area.
The Pound Sterling – Greenback also witnessed a mixed trading week. Price has traded into the 20-day EMA – 50-day SMA support zone on Thursday but promptly rebounded off it on Friday, indicating a bullish development in the near future. A hold above the beforementioned zone on a daily closing basis will pave the way for an advance towards the 1.42683 - 1.43415 resistance territory. Alternatively, a penetration beneath both the EMA 20 and SMA 50 will bring the 1.37129 – 1.37902 support territory into focus.
As we had forecasted, the US Dollar – Japanese Yen has found an optimistic affair this week with an energetic rally above the EMA 20 – SMA 50 resistance zone. However, bullish momentum seemed to peter out by the end of the week, reminding that price may print a pullback in the near-term, or even worse, a continuation of the downward tendency. A failure to remain above the EMA 20 – SMA 50 area will target the 105.538 level, followed by the Mar 25 nadir of 104.616. Alternatively, a turn above 107.304 (Mar 13 high) will expose the vicinity of 108.255 (Jan 26 low).
The Greenback – Canadian Dollar has seen a pretty negative week with the 1.27981 significant level (Mar 09 nadir) nicely broken to the downside. Thursday’s and Friday’s development denoted that price has been trying to turn back above but looked so impotent, suggesting for a downward continuation in the near future. A weak recovery confirmed on a daily closing basis will soon open the door for a descent towards the next support barrier around 1.26143 (Feb 23 base). On the contrary, a strong rally above 1.27981 may send USD/CAD back to its sideways trend developed from Mar 01.
The Australian Dollar – US Dollar continued to hover just above the 0.76486 support obstacle this week. Downward tendency remained dominant, recommending that we may witness price either continue to weakly consolidate or turn lower for the foreseeable future. A daily breach beneath 0.76486 will likely record further decreases towards the 0.7500 important support hurdle (Dec 08 nadir). Alternatively, should the currency pair rally strongly above 0.77572, the 0.79140 barrier will appear on the radar.
The Kiwi – US Dollar this week saw a positive affair with the EMA 20 – SMA 50 resistance zone pierced to the topside. From a broader outlook, the sideways trend stemming from Jan 10 remained on the way, signaling that an increase towards the Jan 24 high at 0.74327 is totally possible in the short-term. A daily hold above the EMA 20 – SMA 50 territory is likely to bring the 0.74327 threshold into focus, whereas a failure to do so may retarget the 0.71379 - 0.71737 support territory.