In this article, we would like to present the weekly technical forecast targeting the prospects of major financial assets during the period from Apr 22 to Apr 28.
EUR/USD this week continued trading in its mid-term consolidation exactly as we had forecasted. The EMA 20 and SMA 50 lines remained close, suggesting that traders should wait for more obvious indication before coming into the market. An approach of the 1.21544 - 1.22052 support area with a deceleration may bring lots of buying opportunities. Alternatively, a strong breach above 1.24143 on a daily closing basis will have the Jan 25 peak at 1.25350 in play.
The Pound Sterling – Greenback exchange witnessed a very pessimistic affair this week with both the EMA 20 and SMA 50 lines having been penetrated promptly after prices fell for four consecutive days from the cusp of 1.43415. Bearish momentum remained highly vigorous, reminding that we may see a further decrease in the near future. A weak recovery back to the EMA 20 – SMA 50 area paves the way for an approach of the 1.37129 – 1.37902 support territory. Alternatively, a strong rally through the beforementioned area may bring the 1.42683 - 1.43415 resistance zone onto the radar anew.
The US Dollar – Japanese Yen traded higher during the five sessions but looked so verecund. The 107.304 threshold (Mar 13 high) has been accepted as a new support, indicating that the Jan 26 low at 108.255 will likely to be challenged for the foreseeable future. A penetration above that opens the door for a further advance towards the next resistance obstacle in the vicinity of 110.456. Otherwise, a daily close back below 107.304 could possibly resume the major bearish trend.
The US Dollar – Canadian Dollar this week posted a strong rally, officially confirming a bearish breakout failure of the Feb 23 base of 1.26143. Bullish sentiment remained quite robust, suggesting that the nearest resistance barrier at 1.27981 will likely be confronted next week. A break above that on a daily closing basis may open the path up towards the 13-month high at 1.31197. Alternatively, the 1.26143 level could be retested given prices trading below the EMA 20.
The final two days of the week saw the Australian Dollar – Greenback head sharply lower, switching the 0.77572 barrier back into a potential resistance balk. Bearish momentum remained very strong, signaling for a break below the support hurdle at 0.76486 in the near future. The next significant barrier is determined at 0.7500 should prices overwhelm the 0.76486 threshold. Alternatively, a strong recovery from here will anew bring the barrier at 0.77572 into focus.
NZD/USD this week also printed a vigorous plunge, piercing nicely both the EMA 20 and SMA 50 lines to the downside. With such a strong bearish sentiment, the 0.71379 – 0.71737 support territory is highly likely to be challenged for the foreseeable future. A penetration below that area on a daily closing basis paves the way for a further decline towards the next support hurdle at 0.70728. On the contrary, the EMA 20 - SMA 50 support-turned-resistance zone will likely be tested back given a strong rally from here.