Technical Update For EUR/USD, GBP/USD, AUD/USD & NZD/USD: 29.08.2017

EUR/USD

With the successful trading beyond 200-week SMA, coupled with hawkish EU fundamentals, the EURUSD managed to surpass the 1.2040 mark of broad resistance-region; however, upper-line of a five-month old ascending trend-channel, at 1.2160, might give rise to the pair’s pullback. If it does not, then prices may further rally towards the 1.2230, the 1.2285 and the 1.2350 consecutive north-side figures. On the contrary, pair’s dip below 1.2000 psychological magnet may avail the 1.1975 and the 1.1910 as small rests prior to testing the 1.1840 support. During the pair’s additional declines after 1.1840, the 200-week SMA number of 1.1750 and the channel-support of 1.1680 become crucial to watch.

GBP/USD

Having bounced from a twenty-week long upward slanting trend-channel, the GBPUSD now confronts the 50-day SMA level of 1.2955, which if broken could escalate the pair’s recovery in direction to 1.3000 and the 1.3050-60 resistance-zone. Given the pair’s sustained up-moves post 1.3060 break, the 1.3110, the 1.3190 and the 1.3250 could entertain buyers. If at all the quote fails to clear 1.2955 on a daily closing basis, it may re-test 1.2920 and the 1.2830 supports ahead of revisiting the aforementioned channel’s lower-line around 1.2780-75. Should the pair’s pullback stretches below 1.2775, the 1.2720, the 1.2680 and the 200-day SMA level of 1.2655 can come-back on the chart.

AUD/USD

AUDUSD is another major which shows upside momentum. The pair presently head to 0.8000–0.8010 horizontal-line that holds the door for its extended recovery towards 0.8040 and the July high of 0.8065. In case if Bulls refrain to relinquish control after 0.8065 break, chances of them aiming the 61.8% FE level of 0.8115 can’t be denied. Meanwhile, 0.7910 and the ascending trend-line figure of 0.7885 could keep trying to limit the pair’s near-term downside, which if broken might further drag it to 0.7840 and the 50-day SMA level of 0.7815. Moreover, increased selling pressure below 0.7815 could make the Bears please by offering 0.7770 and the 0.7710 supports.

NZD/USD

While Friday’s Jackson Hole disappointment for USD triggered the NZDUSD’s U-turn from 0.7200–0.7195 horizontal-line, the pair surpassed an immediate descending trend-line resistance on Tuesday, which indicates its further recovery targeting 50-day SMA level of 0.7330. During the pair’s successful trading beyond 0.7330, the 0.7350, the 0.7390 and the 0.7455 resistance-numbers gain importance. Alternatively, 0.7250 and the 0.7220 can act as nearby rests for the pair before it can re-test 0.7200–0.7195 area, break of which can fetch the quote to 100-day SMA level of 0.7175. In case if sellers continue dominating the trade sentiments after 0.7175, the 0.7120, the 0.7100 and the 0.7050 might mark their presence.

Cheers and Safe Trading,
Anil Panchal