EUR/USD has spent a week struggling around the resistance area composed of the EMA (20) and the SMA (50) lines. After making plenty of attempts to break the SMA (50) but remaining unsuccessful, prices formed a bearish candlestick on Friday, suggesting that bullish momentum has been weaker. Hence, a drop to the solid support level at 1.16613 (Aug 17 low) is entirely possible next week. Alternatively, a turn above the SMA (50) will likely pave the way for an advance to challenge the 32-month peak at 1.20937.
GBP/USD this week again showed weak signs by pulling back below both the Aug 3 high at 1.32670 and the EMA (20) – SMA (50) support zone. However, Friday witnessed the currency pair make a bullish candlestick, indicating that this retracement will not remain long. Given prices piercing above the 1.32670 level next week, the Sept 29 resistance obstacle at 1.36516 could be on the radar. Otherwise, the nearest support level is found around 1.30286 (June 30 top, Oct 6 low).
The Japanese Yen – US Dollar rose energetically this week. On Friday, prices successfully penetrated above the Oct 6 barrier of 113.415, signaling that the 7-month high at 114.487 will likely be challenged in the near future, followed by the next hurdle identified around the 61.8% Fibonacci extension of 115.424. Alternatively, in case USD/JPY trades lower, the EMA (20) – SMA (50) support zone could possibly be approached.
Unexpectedly surging on Friday, the Greenback – Loonie has made a thick-body candlestick showing a strong bullish momentum, suggesting that the stable resistance level around 1.26623 (Aug 31 high) is highly likely to be confronted in near-term, with a daily break above it opening the door for a further rise to the Aug 15 peak at 1.27768. On the contrary, the EMA (20) – SMA (50) area will remain a substantial support zone given prices trading lower.
AUD/USD this week only consolidated around the range composed of the EMA (20) and SMA (50). However, Friday presented a “red” candlestick with full body, pointing that the currency pair’s bearish momentum is getting stronger. In all likelihood, the 0.77126 – 0.77321 support zone (June 30 swing top, 3-month nadir) could possibly be reached in the near future. Otherwise, a daily push above the EMA (20) – SMA (50) resistance area will open a path up towards the July 27 peak of 0.80641, followed by the 2- year high at 0.81221.
The Kiwi – Greenback has spent a week deeply plunging, turning both the Aug 31 low of 0.71306 and the Oct 8 base at 0.70534 into new resistance levels. Currently, NZD/USD’s RSI has entered into the oversold territory, suggesting that the bearish momentum will soon weaken. The nearest support hurdle is
defined at the 16-month nadir of 0.68182. Alternatively, the support-turned- resistance level at 0.70534 could possibly be tested back if prices rally.