EUR/USD continued to struggle around the Aug 17 nadir of 1.16613 this week. During the week, prices reversed to trade higher and erased its loss suffered, suggesting that bullish momentum is entering the spotlight and we may see the currency pair rise further in the near future. The 1.16613 level still remained a substantial resistance, with a daily break above that exposing the trend-line resistance along with the SMA (50). Alternatively, the June 29 top of 1.14470 could be approached if prices turn below the Nov 7 low at 1.15544.
GBP/USD had another boring week consolidating around the EMA (20) – SMA (50) area. No obvious signal given indicates that prices will continue to trade in range until new stimuli appear. The nearest resistance zone is found around 1.32691 – 1.33188 (SMA (50), Nov 1 high). Otherwise, a breach back below the EMA (20) line on a daily closing basis will open the door for a further bearish move to challenge the Oct 6 low of 1.30286.
After reaching the 8-month peak at 114.487 during the week, prices showed up weakening strength with a retracement back into the EMA (20) – SMA (50) support zone. A double-top formation is going to develop, signaling that the currency pair may trade lower next week. A daily penetration below the SMA (50) could trigger a lower drop to the Oct 16 low at 111.638. Alternatively, in case USD/JPY successfully pierces the 114.487 level again, a climb to confront the 61.8% Fibonacci Expansion of 115.424 is entirely possible.
The Greenback – Loonie’s retracement extended this week, making the couple trade into the EMA (20) – SMA (50) support zone. Selling momentum looks strengthening, implying that the Aug 31 top at 1.26623 is highly likely to be broken in the near future. Once that happens, the SMA (50) line will become the next sustainable support level. Otherwise, in case USD/CAD rebounds from the 1.26623 level and turns back above the Aug 15 hurdle at 1.27768, the Oct 27 high of 1.29151 will be on the radar.
Another struggling week of the Aussie – Greenback was recorded, with prices only consolidating hard inside the 0.76238 – 0.77287 area (Oct 27 base, Nov 2 climax). The current mid-term downtrend remained strong, suggesting that AUD/USD will likely head lower given the 0.76238 horizontal line capitulating. The next stable support obstacle is found at 0.75624 (61.8% Fib expansion). On the contrary, the SMA (50) resistance line could be tested back given a daily close above the 0.77287 level.
NZD/USD’s rally continued to extend this week with the EMA (20) retested. Next week, prices may continue to advance and trade into the EMA (20) – SMA (50) resistance area. A penetration above the EMA (20) line on a daily closing basis will likely pave the way for a higher climb to approach the next resistance zone composed of the Oct 9 low at 0.70530 and the SMA (50). Alternatively, a confrontation of the Oct 27 nadir at 0.68176 is entirely possible given the Kiwi – Dollar continuing its grand downtrend.