Technical Outlook of EUR/USD, GBP/USD, AUD/USD & USD/CHF: 20.03.2018

EUR/USD

While 1.2350-55 confined the EURUSD’s latest recovery, the 1.2290 seems coming back on the chart but an upward slanting trend-line, at 1.2265 now, may restrict the pair’s following downside. Should the quote drops beneath the 1.2265, the 1.2230 and the 1.2210-05 horizontal-line can become sellers’ favorite ahead of reigniting the importance of 1.2155 support-mark. In case if the Fed disappoints USD Bulls, the 1.2355 may offer immediate resistance to the pair before propelling it to the 1.2380 trend-line barrier, which if broken could further escalate the up-moves to 1.2410 and then to the 1.2440-45. Assuming the pair’s additional rise beyond 1.2445, the 1.2495 and the 1.2520 could entertain the Bulls prior to challenging them with 1.2555.

GBP/USD

GBPUSD seems another major which is depicting the USD strength after UK CPI failed to propel BoE’s rate-hike concerns. The pair recently took a U-turn from resistance-line of short-term ascending trend-channel and is likely declining towards 1.3990 support-mark, breaking which 1.3920 and the channel’s support, at 1.3890, may gain market attention. Given the pair’s inability to respect 1.3890, chances of its plunge to 1.3855 & 1.3800 can’t be denied. On the contrary, sustained trading above 1.4065 channel-resistance could help the pair meet 1.4100 and the 1.4145-50 numbers to north. Moreover, pair’s break of 1.4150 can grant it enough strength to conquer 1.4210 and aim for 1.4280.

AUD/USD

Even if the AUDUSD chose not to decline below 0.7685, it needs to justify the strength by surpassing 0.7725-35 region on a daily closing basis in order to revisit the 100-day SMA level of 0.7775. If the pair manages to clear 0.7775, the 0.7805 & 0.7845 can appear in the buyers’ wish-list. Alternatively, pair’s dip below 0.7685 can avail 0.7640-35 as consequent rest, which if broken could drag it to 0.7580 & 0.7545 while it’s drop below 0.7545 might not take too long to flash 0.7500 on the chart.

USD/CHF

USDCHF’s latest recovery not only needs to close beyond 0.9550 trend-line but should also conquer the 0.9565-70 horizontal-area if it is to claim the 0.9600 and the 0.9640. However, the 0.9665-70 zone, comprising 200-day SMA, could become a strong resistance for the pair to surpass after 0.9640, which if happens might help optimists to dream for the 0.9700 & the 0.9730 numbers. Meanwhile, 0.9490, the 0.9465 and the 50-day SMA level of 0.9440 can provide immediate supports to the pair, breaking which 0.9420 & 0.9400 may gain Bears’ attention. Additionally, pair’s extended downturn below 0.9400 can reprint 0.9355 & 0.9330 as levels.

Cheers and Safe Trading,
Anil Panchal