Technical Outlook of EUR/USD, GBP/USD, USD/JPY & AUD/USD: 16.01.2018

EUR/USD

In addition to signaling overbought RSI and chances of a pullback on the D1 chart, weekly scenario of the EURUSD is pointing towards the same situation with an added favor from upward slanting TL resistance, at 1.2240 now. As a result, pair’s failure to successfully conquer the 1.2240 on a weekly basis could trigger its profit-booking session and reignite the importance of 1.2090-80 horizontal-region. Should the pair declines beneath the 1.2080, the 1.2000 round-figure and an ascending trend-line support of 1.1860 become crucial to watch. On the contrary, pair’s sustained trading beyond 1.2240 enables it to claim the 1.2360 and the 1.2400 resistances before targeting 1.2490–1.2500 area. If at all prices continue rising after 1.2500, it seems wise to aim for 1.2745-50 north-side numbers.

GBP/USD

Not only EURUSD, but the GBPUSD is also near to important resistance on Weekly chart with mildly upbeat RSI. In this case, the 1.3835-50 is a crucial barrier that the pair needs to surpass if it is to meet the 1.4000 mark; though, its following upside might be capped by the resistance-line of ascending trend-channel, around 1.4140-50. If Bulls continue dominating the prices after 1.4150, 200-week SMA level of 1.4410 might appear in their radar. Meanwhile, the 1.3660, the 1.3540 and the 1.3430 can entertain short-term sellers if the quote reverses from present levels. However, support-line of previously mentioned channel, at 1.3315, may limit the pair’s further downside, which if broken could recall 1.3260 and 1.3150 rest-points.

USD/JPY

Unlike both the previous pairs, USDJPY is likely failing to sustain its latest break of 111.00–110.90 support-zone as oversold RSI is pulling it upwards but the moves must be backed by a daily close above 111.00 to defy the breakdown. Provided the pair’s D1 close beyond 111.00, the 111.35 and the 200-day SMA level of 111.70 may try curbing its following upside, failing to which could help the buyers to aim for 112.00 and the 112.50 resistance-levels. Given the pair’s inability to offer a daily close above 111.00, the 110.30, the 110.00 and the 109.80 might add smile on sellers’ face. Moreover, pair’s sustained south-run beneath 109.80 could drag it down to 109.00 and the 108.60 supports.

AUD/USD

Even if break of 0.7880-85 enabled the AUDUSD to test the 0.7980 resistance-mark, it couldn’t extend the upside beyond that point and is presently witnessing pullback towards revisiting the 0.7920 and the 0.7885-80 supports. Should the pair declines below 0.7880, the 0.7820 and the 100-day SMA level of 0.7775 are likely rests that it could avail prior to targeting the 0.7710 mark, comprising 200-day SMA level. Alternatively, the 0.7980, the 0.8000 and the 0.8035 are expected nearby resistances that the pair can confront during its further advances ahead of conquering the 0.8070 horizontal-line. Moreover, pair’s successful trading above 0.8070 may only have to surpass the September high of 0.8125 before escalating the northward trajectory in direction to 61.8% FE level of 0.8300.

Cheers and Safe Trading,
Anil Panchal