Technical Outlook For EUR/USD, GBP/USD, AUD/USD & NZD/USD: 05.09.2017

EUR/USD

While a seven-week old ascending trend-line triggered the EURUSD’s U-turn during Thursday, the pair couldn’t surpass the 1.1920-25 horizontal-line then after. As a result, the 1.1855 to 1.1925 area seems restricting the quote’s immediate moves. However, ECB is just few days away and if the President, Mario Draghi, manages to give another smile on the face of EUR Bulls with hints of monetary tightening, the pair can break 1.1925 and rise to 1.1985 resistance-mark. During the pair’s extended advances beyond 1.1985, the 1.2030 and the 1.2070 may offer intermediate halts to buyers ahead of pushing them to target 61.8% FE level of 1.2185. Meanwhile, break of TL support, at 1.1855, can fetch the quote to 1.1820 and then to 1.1750-45 rests, breaking which 1.1680 and the 1.1615 becomes crucial for traders to watch. If at all sellers drag the prices below 1.1615, chances of witnessing 1.1560 and the 1.1490 on the chart can’t be denied.

GBP/USD

GBPUSD is presently struggling between the short-term symmetrical triangle formation with 1.2890 being a support and the 1.2960 acting as adjacent resistance. Should the pair clears the 1.2960, the 1.3000 and the 1.3030 are likely following north-side figures to be observed, surpassing which could entertain Pound optimists with 1.3060 and the 1.3110 resistance-levels. In case if the pair successfully trades above 1.3110, the 1.3160, the 1.3195 and the 1.3240 upside numbers may gain importance. On the downside, break of 1.2890 can activate the pair’s pullback towards 1.2835 ahead of highlighting the 1.2770 support-mark. Given the sustained weakness below 1.2770, the pair might even plunge to 61.8% FE level of 1.2690.

AUD/USD

As an upward slanting trend-channel indicates the AUDUSD’s strength, the pair presently head to confront the 0.7990-95 horizontal-line, breaking which it can rise in direction to the channel-resistance of 0.8025. Should the upside momentum refrains to respect the channel-formation, the 0.8045 and the 0.8065 may act as barriers during the pair’s northward trajectory to 61.8% FE level of 0.8110. Alternatively, the 0.7935, the 0.7920 and the channel-support of 0.7900 may restrict the pair’s near-term downside, breaking which 0.7865 and the 0.7830 could mark their presence. Moreover, pair’s declines following 0.7830 may please Bears with 0.7800, the 0.7785 and the 0.7750 supports.

NZD/USD

Considering the NZDUSD’s latest pullback from 0.7145, it seems safe to expect the pair’s extended recovery towards 0.7210 resistance-mark; however, more than a month old descending trend-channel resistance, at 0.7245 now, may confine its additional upside. Given the pair’s daily closing beyond 0.7245, the 0.7280 and the 50-day SMA level of 0.7320 could be targeted while being long. If at all the pair receives pullback moves, the 0.7145 and the 200-day SMA level of 0.7130 might give rise to its U-turn, failing to which can further drag the quote to 0.7100 and then to the channel’s lower line of 0.7060. Should there be continuous downside post-0.7060 break, the 0.7050 and the 0.7000 can be flashed in sellers’ radar.

Cheers and Safe Trading,
Anil Panchal