In this article, we would like to present the weekly technical forecast targeting the prospects of major financial assets during the period from Jan 08 to Jan 12.
Despite making an upward gap on Monday, EUR/USD seemed so stymied when testing the Sept 8 peak at 1.20901. The RSI line just crossed back below 70, suggesting for a potential retracement in the near future. A daily break below the 1.19594 – 1.19682 supporting area (Nov 27 high, 61.8% Fib) will likely target the EMA (20) – SMA (50) zone. Otherwise, a turn above 1.20901 may pave the way for a rise to challenge the 100.0% Fib expansion of 1.21240.
GBP/USD has spent most of the week trading around the Nov 30 obstacle (1.35497). On Friday, prices successfully turned the 1.35497 resistance threshold into a new support, signaling that we may see a confrontation of the Sept 20 peak at 1.36516 next week. Should that level be disrupted, a further climb towards the Feb 28 hurdle at 1.38460 is entirely possible. Alternatively, the EMA (20) – SMA (50) territory may remain on the radar given a push back below 1.35497.
USD/JPY’s snarl-up continued this week as the currency pair had found no way to escape the 112.047 – 113.743 range (Dec 15 nadir, Dec 12 top). The EMA (20) – SMA (50) zone remained thin, indicating that the current consolidation could further extend. A breach below 112.047 on a daily closing basis will open the door for a lower dip to challenge the Nov 27 base at 110.833. On the contrary, given fuels driving prices above 113.743, the Nov 6 peak at 114.707 will be on the radar.
A very negative for the US Dollar – Loonie has been recorded, with the currency pair turning both the Dec 5 obstacle (1.26211) and the stubborn support around 1.24390 into new resistance levels. USD/CAD’s RSI now entered the oversold area, suggesting that prices may rally and make a short-term consolidation for the foreseeable future. A return above 1.24390 will expose the 50.0% Fib of 1.24876, followed by the 38.2% Fib at 1.25870, while a penetration below the 61.8% Fib may target the Sept 8 nadir at 1.20607.
AUD/USD saw another upbeat affair, with the 50.0% Fib at 0.78115 pierced from earlier this week. Prices now are highly likely to approach the 0.78852 – 0.78948 resistance zone (61.8% Fib, Oct 13 high). A daily close above that zone may register for a further advance towards the Sept 8 top at 0.81230. Alternatively, the nearest support territory is found around 0.77329 – 0.77378 (Oct 6 low, 38.2% Fib) given prices trading back below 0.78115.
Alongside AUD/USD, the Kiwi – USD also headed higher this week, piercing the Aug 31 barrier at 0.71300 to the upside. The 0.71813 – 0.71976 resistance area is now being challenged, with a breach above that on a daily closing basis triggering for an increase towards the Sept 20 top at 0.74304. Otherwise, the Oct 9 base at 0.70530 will again become a steadfast support once NZD/USD pulls back below 0.71300.
Monday witnessed the 1305.875 obstacle disrupted, however, Gold prices have spent most of the week struggling. The RSI line is about to turn back below 70, suggesting that a retracement could possibly happen next week. A close below the 1305.875 – 1310.995 area (Oct 16 peak, 61.8% Fib) will expose the 50.0% Fib of 1296.705. Alternatively, XAU/USD may continue to trade towards the Sept 8 high at 1357.379.