In this article, we would like to present the weekly technical forecast targeting the prospects of major financial assets during the period from Mar 12 to Mar 16.
The Euro – Dollar exchange got a mixed trading week. Future movements are lacking clarity since the range composed of the 20-day EMA and 50-day SMA is pretty narrow. A break below the solid support hurdle around 1.22052 (Feb 09 low) on a daily closing basis will likely trigger a further descent to challenge the Jan 04 high of 1.20859. Alternatively, the currency pair could test back the Jan 25 peak at 1.25350 given trading higher.
The British Pound – Greenback witnessed a recovery this week, successfully turning above the important threshold of 1.37902. Nevertheless, bullish momentum looked very languorous, suggesting that we may see this level broken to the downside in the near future. The 1.35386 – 1.36087 support territory will remain on the radar once the barrier at 1.37902 is overpowered. On the contrary, a penetration above the EMA 20 – SMA 50 zone along with the trend line started since Jan 25 opens a path up towards the 34-month high at 1.43415.
The US Dollar – Japanese Yen recorded a rally with prices retesting the 20-day EMA. The bearish trend ascertained on the daily chart has been cracked, indicating that the currency pair could make further climbs for the foreseeable future. A daily close above the 107.304 weekly obstacle support-turned-resistance registers for a stronger advance to approach the next 108.289. Alternatively, given that USD/JPY’s bullish momentum is unsteady, the support balk at 105.538 may be tested back.
USD/CAD pierced above the significant resistance obstacle at 1.29143 during the week but then plummeted back below it. Bearish momentum remained vigorous alongside the RSI crossing beneath 70, signaling that an approach of the 20-day EMA may appear next week, with a break below that opening the door for a further decrease towards the important barrier of 1.26695. Alternatively, the 1.29143 peak could be re-challenged given a recovery.
Rebounding from the Feb 09 hurdle at 0.77572, the Australian Dollar – Greenback marked a positive trading week with prices entering the EMA 20 – SMA 50 resistance zone. However, next week may see wobbles inside this area since prices’ development is lacking clarity. A break below the 50-day SMA will register for an ascent towards the Feb 16 high of 0.79866. On the contrary, given the 0.77572 threshold overpowered, the 0.76486 obstacle will remain on the radar.
The New Zealand Dollar – US Dollar recorded few remarkable movements this week. Prices spent most of the week consolidating around the 20-day EMA – 50-day SMA territory with low trading liquidity, giving no indication for near-term movements. Hence, we should wait for more drivers to come into the fray. Turning above the beforementioned zone will pave the way for an advance towards the Jan 24 peak at 0.74327. Otherwise, the nearest support hurdle remained at 0.71737 (Feb 08 nadir).