EUR/USD has spent a week retracing back to the EMA (20) – SMA (50) support zone, suggesting that prices could possibly trade into the range and steadily consolidate next week. A break below the zone on a daily closing basis may pave the way for a further decline to the next support level found at 1.16656. Otherwise, the currency pair could retest the resistance level at 1.20882 (the 32-month peak).
This week saw the British Pound – Greenback remarkably strike through both the 11-month hurdle at 1.32645 and the weekly resistance level of 1.34428, opening the door for a further advance to the support-turned-resistance level at 1.38457. However, GBP/USD’s RSI line which turned far above the overbought territory warned that the bullish momentum might be weaker. Given prices retreating, the before-mentioned weekly level of 1.34428 – now recasts as support – is likely to be approached.
The EMA (20) – SMA (50) resistance area has been robustly broken through on this Tuesday, signaling that prices could ascend to challenge the next resistance level at 112.131 given a daily turn above the currently substantial obstacle at 110.917. On the other hand, USD/JPY could retest the 109.60 – 109.90 zone (EMA (20), SMA (50)) which changed into a support area.
USD/CAD exposed a rally this week as we had forecasted before. Prices have been developing a short-term consolidation, hinting that a lower decline of the Greenback – Loonie could happen in mid-term. A break below the nearest support level defined at 1.20572 (31-month low, 61.8% Fibonacci expansion) could trigger another sink to the next foundation of 1.16297 (the 100.0% Fib). Alternatively, the EMA (20) line could be hit, followed by the solid swing bottom at 1.24117 now acting like a resistance.
The Aussie – Greenback rebounded from the EMA (20) – SMA (50) support area on Thursday this week. However, prices are highly likely to move back into the zone, suggesting a short-term consolidation possibly forming in the near future. The stable support level is identified at 0.78733 given AUD/USD closing below the 0.79442 – 0.79817 zone. On the contrary, the 32-month barrier around 0.81571 could be reached once the two-year peak of 0.80647 is broken through.
NZD/USD had a week struggling inside the range between the SMA (50) line and the 50.0% Fibonacci retracement level (0.71862 - 0.73246). During the period from Sept 18 to Sept 22, we may continue to see the currency pair consolidate until it finds new fuels to make impressive moves. Prices could possibly trade higher to reach the next resistance level at 0.73816 (the 23.6% Fib) in case the top of the range at 0.73246 is successfully broken through. Alternatively, a daily close below the 0.71862 – 0.72017 support area is likely to register for a lower dip to the 61.8% Fibonacci retracement of 0.70995.