Technical Overview of EUR/USD, GBP/USD, USD/JPY & NZD/USD: 24.07.2018
It’s been more than a month since the EURUSD follows a symmetrical triangle formation. However, the quote is gearing towards the pattern’s close-ends between the 1.1755 resistance and the 1.1585 support that signal brighter chances of the major currency-pair’s magnified move in case of either side breaks. Looking at the downside, which is more likely considering USD’s comparative strength, the 1.1625-20 may offer immediate rest to the pair before highlighting the 1.1585 support-line while break of 1.1585 can quickly fetch prices to the 1.1540 and then to the 1.1500 mark. If Bears continue ruling trade-sentiments past-1.1500, the 61.8% FE level of 1.1390 may appear in their radar. Alternatively, successful encounter of 1.1755 could trigger the pair’s rise in direction to the 1.1830-40 horizontal-region, which if broken might escalate the north-run to 1.1890 and to the 1.1940 resistances. Though, the 200-day SMA level of 1.1980, adjacent to the 1.2000 round-figure may limit the pair’s upside afterwards.
GBPUSD’s recent bounce off the two-month old descending trend-channel support seems helping the pair to aim for the 1.3185 but its further advances can be quetioned by the 1.3265-70 resistance-confluence, comprising 50-day SMA & upper-line of the channel. Should the pair closes beyond 1.3270 on a D1 basis, the 1.3300 and the 1.3355 are likely barriers to play their role. Given the pair’s failure to sustain its latest recovery, the 1.3030, the 1.3000 round-figure and the channel-support figure of 1.2920 can challenge the short-term sellers. Assuming that the pair’s drops beneath the 1.2920, the 1.2830-10 zone becomes important to watch as it holds the gate for its plunge to the 1.2680 and the 1.2590 supports.
Successful dip below the 111.40-35 horizontal-support indicates the USDJPY’s decline to 110.55-50 rest-area, including 50-day SMA & four-month long ascending TL, which give rise to expectations of the pair’s U-turn, if not then 110.25 and the 110.00 can prove their presence on the chart. In case prices keep trading southwards past-110.00, the 109.35 and the 100-day SMA level of 109.00 may please the pessimists. Meanwhile, an upside break of 111.40 can print the 112.00 and the 112.30 numbers as quotes, breaking which 112.65 and the 113.15 may entertain the buyers. Let’s say the pair rallies above 113.15, then the 113.65-70 and the 114.00 may lure the Bulls.
Alike EURUSD, the NZDUSD also observes the immediate symmetrical triangle pattern but the pair presently rises to the formation resistance, i.e. 0.6820, breaking which the 0.6860, the 0.6880 and the 0.6900 may offer consecutive stops to its rise. Given the pair’s refrain to respect the 0.6900 as a hurdle, the 0.6920, the 0.6960 and the 0.7000 can grab market attention. On the downside, the 0.6765, the 0.6730 and the lower-line of technical-arrangement around 0.6715 seem important supports to watch as break below them can drag the pair to the recent low of 0.6685 and then to the 61.8% FE level of 0.6625 figures to south.