USD Update and 2 Best Trending Currency Pairs

Dear Traders,

Yesterday’s Forex analysis indicated a potential US Dollar reversal but Monday’s price action has been mild and corrective till now.

In this article and video, Chris is updating his technical analysis on the EUR/USD, GBP/USD, and USD/JPY where he indicates that the USD strength is still on course. Check out below to see why…

USD Strength and Reversal

The EUR/USD is showing a potential bearish breakout if price manages to push through the support trend line (see image above). A break above the resistance at the previous bottom at 1.0825, however, would invalidate the bearish perspective and indicate a potential bullish trend continuation towards 1.20. The bullish outlook is further confirmed if price breaks above the previous top at 1.19.

The main targets of the EUR/USD bearish retracement is at 1.16, although price could bounce at  1.17 first. Why 1.16? The latter 1.16 target is equal to the long-term moving average (144 ema close) of the 4 hour chart which is the main target once divergence appears. The EUR/USD could even extend towards 1.14-.1.15 support zone before the uptrend is expected to continue towards 1.20 and perhaps higher…. In my view, this potential bearish price action is most likely only a retracement within the larger uptrend, and not a larger reversal.

GBP/USD and USD/JPY

The GBP/USD is showing even stronger bearish momentum when compared it to the EUR/USD. Despite the bearish Cable breakout below the most recent low, I would rather wait for a larger sized pullback before trading a short setup. The Fibonacci levels of my interest are at the 38.2-50% Fibonacci resistance zone. The 38.2% Fib is equal to the round level of 1.31 and the 50% Fib is in the middle of a the previous correction. Both zones seem to offer an area of resistance confluence, which could act as a turning spot. The USD/JPY could also complete a last bullish push up towards 111.30-111.60 as long as price stays above the 110.25-110.50 support zone.

Two Trending Currency Pairs

The EUR/NZD and AUD/NZD are, according to the to ecs.SWAT, also interesting trending currency pairs in the Forex market. In the short 5 minute video below, I not only discuss the above mentioned US Dollar pairs but also the two New Zealand pairs in more detail. Of course, be aware that the NZD will have an interest rate decision on Wednesday so the trade needs to happen quickly.

Many green pips,

Chris

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