Weekly Technical Forecast (Aug 28 - Sep 1)

EUR/USD : Neutral

EUR/USD had been consolidating during the week until this currency pair found fuel to climb on Friday, successfully turning above the solid resistance level identified at 1.19092 (the 31-month high which was reached on August 2). Prices now are highly likely to kept moving up to challenge the next hurdle spotted at 1.21517 (the 61.8% Fibonacci expansion). Otherwise, EUR/USD may retreat to test back the EMA (20) support line.


GBP/USD : Neutral

GBP/USD bounced off from the substantial support level at 1.27712 on Thursday and traded higher on Friday, suggesting a probable retest to the EMA (20) – SMA (50) resistance area (1.29171 – 1.29872) next week. A close above this zone on a daily closing basis may trigger another rise to approach the next resistance level at 1.31124. On the contrary, the support level at 1.27712 is again the sustainable basis if prices decline.


USD/JPY : Neutral

The currency pair has spent a week struggling inside the 108.814 – 109.794 range (the support level found at 2-month low, the EMA (20) line), indicating that the short-term consolidation is likely to continue next week. However, a break above the top level of the range at 109.794 may register for a bullish move to the nearest obstacle found at 110.938. Alternatively, a turn below the significant support of 108.814 (the bottom of the range) could lead to another fall to the 4-month low at 108.137.


USD/CAD : Bearish

This week saw the USD/CAD currency pair continually dip lower, suggesting a highly possible approach to the 2-year low at 1.24131 in the near future. A turn below this support level could pave the way for a plunge to confront the 61.8% Fibonacci expansion level of 1.20753. Otherwise, prices may rally to test back the resistance zone composed of the EMA (20) and SMA (50) lines (1.26004 – 1.26752).


AUD/USD : Neutral

AUD/USD made no impression this week while consolidating inside the 0.78704 – 0.79476 range. On Friday, prices rebounded from the EMA (20) support line to turn higher but still couldn’t close above the top of the consolidation, hinting that this currency pair will continue to struggle. Howbeit, a break below the 0.78704 - 0.78950 support zone (bottom of the current consolidation, EMA (20) line) may signal for a further fall to the 1-month low at 0.78073. On the other hand, a turn above the top of the range at 0.79476 could lead to another rise to the nearest resistance level spotted at 0.80647 (the 2-year high).


NZD/USD : Bullish

Prices traded lower over the course of the week to reach the 0.71850 - 0.72017 stable support zone but finally bounced off on Friday, suggesting that we may see a short-term rally next week. The nearest resistance area is found at 0.72734 – 0.73005 (EMA (20), 38.2% Fibonacci retracement). On the contrary, a break below the 0.71850 - 0.72017 zone at may open the door for a further bearish move to the next support level found at 0.70995 (the 61.8% Fib).

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