The last few days have been difficult for the dollar.
It weakened against all G10 currencies this week as investors reduced bets on the aggressiveness of the Federal Reserve during July’s interest rate hike. The upbeat mood in the market has also blunted appetite for the safe-haven currency as market participants eye stock markets and riskier currencies.
We saw the Dollar Index (DXY) dip below the 106.50 level, essentially signaling the end of the uptrend on the daily charts. If the bearish momentum holds, prices could test 105.50 and lower, bringing the Dollar back into range with the next key support at 103.30.
A similar scene can be seen on the equally weighted dollar index with prices approaching the 50-day simple moving average. The trend turns bearish with the next key support found at 1.1700. A solid break below this level could trigger a decline towards 1.1630.
Can the EURUSD stay above 1.0200?
After plunging below parity last week, the Euro bulls fought back to push prices out of the danger zone.
The currency pair has jumped over 150 pips since Monday with prices trading around 1.0230 at the time of writing. Given how a daily close above 1.0200 was secured, the next key level of interest lies at 1.0350 and 1.0480. If 1.0200 proves to be an unreliable support, a decline towards 1.0130 and 1.0000 could be considered.
Is it time for the GBPUSD to resume its downtrend?
The bears could re-enter the scene if 1.2060 proves to be a reliable resistance level. There have always been lower lows and lower highs while the MACD is trading below zero. A drop towards 1.1900 could open the doors towards 1.1760 and 1.1650, respectively. If prices can break above 1.2060, the next key level of interest is at 1.2350.
AUDUSD ready to push higher?
The strong break and daily close above 0.6850 puts Aussie bulls in a strong position. Although the MACD is trading below zero, prices have broken above the lower high, signaling the end of the downtrend on the daily time frame. Previous resistance at 0.6850 may turn into support, encouraging a tilt towards the 50-day simple moving average at 0.6970 and 0.7050, respectively.
USDJPY hovers around multi-decade highs
Prices remain firmly bullish on the daily charts. A technical retrace towards 136.000 could trigger a slope towards 139.380. Alternatively, a strong daily close above 139.380 can open the doors towards 140.00 and higher. If 136.000 breaks USDJPY could test 134.00.
Is the NZDUSD Preparing for a Rebound?
Things look interesting for the NZDUSD. After breaking above 0.6220 this morning, the next key level of interest lies at the 50-day simple moving average. Beyond this level, there will be key resistance at 0.6375. If 0.6220 proves to be a reliable resistance, a decline towards 0.6100 could be considered.
Is the USDCAD preparing for a major breakdown?
A picture is worth 1000 words. There is so much going on with the USDCAD, but one thing is striking. Prices are hovering above the support level of 1.2860 which is above the 50, 100 and 200 day simple moving averages. A solid break below this point could encourage a sell-off towards 1.2650. If 1.2860 proves to be a reliable support, prices could rebound towards 1.3050.
USDCHF swings above 0.9650
A weaker dollar dragged USDCHF below the 50-day simple moving average. Prices remain choppy but the bears could gain ground if a daily close below 0.9650 is reached. Below this level, the next key level of interest is at 0.9500. If 0.9650 proves to be reliable support, USDCHF could see a rebound towards 0.9850.