Technical Outlook EUR/USD, GBP/USD, USD/JPY & NZD/USD: 18.07.2017

EUR/USD

Considering the EURUSD’s successful break of nearly two-year old descending trend-line resistance, at 1.1465 now, the pair seems all set to challenge the 2016 high, around 1.1620, before aiming the peak of August 2015, near 1.1720, and the 1.1755-60 resistance-zone. However, the 1.1800–1.1810 region, comprising 200-week SMA, might restrict the pair’s following upside, failing to which can flash 1.1870 and the 1.1980 north-side numbers on the chart. Meanwhile, a weekly close below 1.1465 can trigger the quote’s pullback towards 1.1370 and the 1.1300 round-figure. Should prices decline below 1.1300, the 1.1230 and the 1.1110 become crucial for traders to watch.

GBP/USD

With the soft UK CPI dragging GBPUSD back from seven-month long ascending TL, the pair is likely declining in direction to 1.2980 and the 1.2900 supports; though, a short-term upward slanting trend-line, coupled with 50-day SMA, around 1.2875, could confine it’s further downside. Given the continuous price-drop after 1.2875, the 1.2810 and the 1.2760 should be given proper attention. In case if Buyers refrain to respect the 1.3130 trend-line resistance during U-turn, the 1.3175 and the 1.3230 could come in their radar ahead of targeting 1.3280 and the 1.3350 resistances. Moreover, a sustained trading above 1.3350 could please Bulls with 1.3360 and the 1.3440 resistance-levels.

USD/JPY

USDJPY’s pullback from 112.80 during Monday confirms the “Head And Shoulder” bearish formation break, which in-turn signals its theoretical downturn to 111.20. However, the 111.80-75 horizontal-line and the 111.40 might offer intermediate halts to the quote. Should prices keep declining after 111.20, the 111.00 round-figure and the 110.80 can entertain follow-on sellers. Alternatively, the neckline of a pattern, at 112.80, seems near-term important resistance for the pair, breaking which the 113.20, the 113.60 and the 114.00 are likely consecutive upside figures to come-back. If at all the pair clears 114.00, the 114.50 and the 61.8% FE level of 115.00 should be targeted while being long.

NZD/USD

While NZDUSD’s reversal from 0.7260 indicates the pair’s strength, the 0.7365-75 horizontal-line is still intact and could keep limiting the upside attempts. Should buyers manage to surpass 0.7375 on a daily closing basis, they can quickly witness 0.7400 and the 0.7420 resistances prior to challenging the 2016 high around 0.7485, which is near to the 0.7500 round-figure. On the contrary, 0.7310 is presently acting as nearby support for the pair, breaking which 0.7260 and the two-month old ascending trend-line, at 0.7245, could come into play. Given the pair’s break of 0.7245 TL support, it becomes vulnerable to visit the 0.7200 and the 50-day SMA level of 0.7160.

Cheers and Safe Trading,
Anil Panchal