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What I Am Watching Today – Currencies

By: 
Christopher Lewis

EUR/USD faces resistance at 1.1350, while GBP/USD, USD/CAD and USD/JPY show potential upside setups as inflation and interest-rate differences shape the forex outlook.

EUR/USD

EUR/USD daily candlestick chart showing a downward trend, with the pair trading near 1.1232 below its moving averages.
EUR/USD daily chart showing the euro consolidating near 1.1232 after falling below the 1.1350 support level.

The euro is where I start today. Recently, we’ve seen a pretty significant sell-off in the euro, followed by some consolidation. I suspect downward pressure is still going to be a fundamental part of this market, and I believe that the 1.1350 level above remains a bit of a barrier. Any signs of exhaustion after a short-term rally is what I’m looking for.