Technical Update For EUR/USD, GBP/USD, AUD/USD & NZD/USD: 27.03.2018

EUR/USD

With its inability to surpass the 1.2445-50 horizontal-area, the EURUSD seems coming back to 1.2380 and the 1.2355 support-levels; however, its following downside can be restricted by nearly three-month old ascending trend-line, at 1.2255 now. Should the pair closes below 1.2255 on a daily closing basis, chances of its plunge to 1.2180 and then to the 100-day SMA level of 1.2100 can’t be denied. On the upside, a clear break of 1.2450 can escalate the pair’s recent recovery towards 1.2510 and to the January highs of 1.2555. Additionally, pair’s sustained trading beyond 1.2555 could help it target 1.2600 and the 61.8% FE level of 1.2670.

GBP/USD

GBPUSD’s U-turn from 1.4240 is likely dragging the pair to 1.4070 and then to the 1.4000 round-figure ahead of challenging the 50-day SMA level of 1.3980. If prices continue declining after 1.3980, the 1.3910 and the 1.3845, comprising upward slanting TL, could entertain the sellers. Alternatively, the 1.4275-85 horizontal-line may confine the pair’s near-term upside, breaking which 1.4340 and the 1.4400 can mark their presence. Given the quote’s successful break of 1.4400, the 1.4460 can act as intermediate halt during its north-run to 61.8% FE level of 1.4525.

AUD/USD

Considering the AUDUSD’s failure to extend last-week’s bounce, the 0.7680-75 support-zone regains the traders’ attention, which if broken could fetch the pair to 0.7630 and to the 0.7600 numbers. Though, an ascending trend-line stretched since mid-2017, at 0.7580 now, could limit the pair’s further downside. Meanwhile, 100-day SMA level of 0.7775 becomes immediate challenge for the buyers to conquer before confronting the 0.7810, the descending TL resistance of 0.7845 and the 0.7870 figure that comprises 50-day SMA. Given the pair’s break above 0.7870 on a D1 close, the 0.7915 and the 0.79555 may appear in Bulls’ radars.

NZD/USD

Having defeated by a six-week long downward slanting TL, the NZDUSD is testing an adjacent trend-line support of 0.7270 break of which could trigger its fresh south-run to the 0.7245, the 0.7225 and the 0.7200 consecutive rest-points. Should Bears dominate the momentum after 0.7200, the 0.7190-85 is a crucial region to watch as it could open the gate for the pair’s drop to 0.7150 and the 61.8% FE level of 0.7125. If at all the quote reverses from present levels, it needs to surpass the 0.7300 TL resistance to aim for 0.7320 and the 0.7355 figures. Assuming the pair’s strength beyond 0.7355, the 0.7375, the 0.7410 and the 0.7440 could be highlighted while being long.

Cheers and Safe Trading,
Anil Panchal