In this article, we would like to present the weekly technical forecast targeting the prospects of major financial assets during the period from Jul 08 to Jul 14.
The Euro – Greenback posted a relatively negative start to the week but has spent the Friday shooting up above both the EMA 20 and SMA 50 line. We again remain bullish on this currency pair given the strong support from the value decreased of the Greenback due to the Trade War with China. From here, another strong rally will make the Jun 14 peak at 1.18501 closer than ever. Alternatively, a less-likely-to-happened fall back below the SMA 50 with a strong bearish bias will put the support hurdle at 1.15045 back onto the radar.
The Pound – US Dollar continued the long-term downward tendency with a strong rise this week. Four continuous days increasing brought the exchange rate above the EMA 20 and very close to SMA 50. Should the bearish tendency continued, the GBP/USD will soon break through the SMA 50 and head towards the new resistance level. The next resistance balk is ascertained at 1.34500, which is also likely to be penetrated in case the bearish momentum remains. Alternatively, the support 1.30267 may come back into consideration whether a drop appears sooner than expected.
The Greenback – Japanese Yen was a hesitant performer this week with the mixing of increase and decrease trading days. The currency pair witnessed three modest rises and two decreases, including a significant drop on Tuesday, before landed at 110.440. Given the support from the fall of USD value and long-term bearish tendency, the next resistance barrier determined in the vicinity of 111.378 – 113.772 is likely to be challenged for the foreseeable future. Otherwise, the support 107.238 - 108.044 could be retested should a retracement come into play.
The Greenback – Loonie penetrated the 1.31194 support zone this week after days fluctuating at this level. Given the negative indicators from the USD, we expect no sudden rise to happen soon and the prices much likely continue to descend. A penetration below the current level paves the way for a further decrease towards the next base around 1.29168 - 1.27256. Alternatively, a strong rally will demand a reassessment as to whether a new driver has come into the fray.
The 1.73187 support area proved its strength this week when making the Australian Dollar – Greenback exchange rate head back to the 0.74453 resistance area. The significant decrease from Monday cannot help ease the impact from the plunge in USD value. The 0.74453 resistance zone is likely to be tested next week, with a strong climb in the EMA 20 - SMA 50 area. Alternatively, a breach below 0.73084 will bring the exchange rate further downwards.
This Friday marked the fourth day in a row that the Kiwi Dollar – Greenback exchange increased. As bears almost completely overpowered the round, the 0.67286 support zone witnessed itself penetrated from Monday. Prices broke into the EMA 20 – SMA 50 in the final day of the week. Given bearish momentum remaining very strong, there is a high potential for the continuous rises next week. A really strong rally may bring the rate towards the level at 0.70585, while more decreases will bring the rate further downwards.