Technical Outlook of EUR/USD, GBP/USD, USD/JPY & AUD/USD: 03.01.2018

EUR/USD

Given the EURUSD’s inability to extend latest rally beyond 1.2090–1.2100 horizontal-region, coupled with overbought RSI, the pair presently witnesses pullback moves towards re-testing the 1.2000 round-figure and the 1.1960 immediate support-marks. However, its following downside has to conquer the 1.1880 and the 100-day SMA level of 1.1815 in order to decline further in direction to the 1.1770 and then to the 1.1720-10 support-zone. If at all the quote manages to surpass the 1.2100 on a daily closing basis, multiple resistances around 1.2250, registered during late-2014, and the 61.8% FE level of 1.2320 can please the Bulls. Moreover, pair’s successful trading above 1.2320 enables it to aim for 1.2500 mark.

GBP/USD

Alike EURUSD, the GBPUSD also failed to stretch its recent advances beyond an important resistance-region, i.e. 1.3615-20 in this case, which in-turn indicates brighter chances of the pair’s profit-booking moves to 1.3550 and then to the 1.3465-60 supports. During the pair’s additional downside beneath 1.3460, the 1.3420, the 1.3350 and the 50-day SMA level of 1.3300 can entertain sellers. Alternatively, closing break of 1.3620 can quickly propel prices to surpass September high around 1.3660 and run towards 61.8% FE level of 1.3825; though, 1.3730 might offer intermediate halt to the pair’s rally.

USD/JPY

Having reversed from nearly two-month old descending trend-line resistance, at 113.30 now, the USDJPY’s immediate downturn seems confined by the 112.00–111.95 ­­area that comprises the 100-day SMA. Should the pair close below 111.95 on D1 basis, it can revisit the 200-day SMA level of 111.65 and then the 111.35 support-mark prior to resting around 110.85-80 zone. Meanwhile, 112.50 and the 50-day SMA level of 112.95 are likely nearby resistances for the pair to clear before challenging the 113.30 TL resistance for one more time. In case of the quote’s sustained break of 113.30, the 113.60, the 114.00 and the 114.40 are expected consecutive resistances to appear on the chart.

AUD/USD

Contrast to all the aforementioned pairs, which are near to important resistance & support levels, the AUDUSD’s successful trading above 100-day SMA level indicates its readiness to confront the 0.7890–0.7900 region. However, the 0.7840 & 0.7860 can act as adjacent resistances for the pair. If the pair continue rising above 0.7900, the 0.7940 and the 0.7970 are likely following barriers that it needs to conquer prior to looking at the 0.8000 round-figure. On the downside, the 0.7800 seems nearby support for the pair, breaking which an upward slanting TL and 100-day SMA, near to 0.7775, might restrict its declines. Given the pair refrains to respect the 0.7775 support-mark, the 0.7730-35 area and the 200-day SMA level of 0.7695 should be observed carefully.

Cheers and Safe Trading,
Anil Panchal