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Technical Outlook of EUR/USD, USD/JPY, AUD/USD & USD/CHF: 15.05.2018

Anil Panchal


Even if recently published EU details stopped the EURUSD’s drop, for the time being, the pair can’t be termed strong even for the short-term unless it breaks the 1.2030 horizontal-line; however, the 1.2000 psychological magnets can act as immediate resistance. Assuming the quote’s ability to surpass 1.2000 marks, also clearing the 1.2030 barriers, the 1.2070 and the 1.2100 are likely following hurdles that it needs to conquer in order to aim for the 1.2140-45 resistance-area. In case the pair maintains its south-run, the 1.1885 and the 1.1840 may offer nearby rests ahead of highlighting the 1.1820 support. Should Bears rule momentum after 1.1820, the 61.8% FE level of 1.1750 can become their favorite?


While 110.00-110.05 continue restricting the USDJPY’s upside since nearly a fortnight, the overbought RSI may play its role in dragging the pair down to 109.55 but its further declines can be confined by an upward slanting trend-line figure of 109.35. Given the pair dips beneath the 109.35, the 109.00 and the 108.50 might entertain the sellers earlier to pleasing them with 108.30 & 107.70 levels. On the upside, a successful break above 110.05 could quickly fuel the pair towards 110.60, comprising 61.8% FE level, whereas its additional rise might be questioned by the 111.000 round-figure. During the pair’s sustained trading beyond 111.00, the 111.50 and the 112.10 may grab investors’ attention.


AUDUSD is another major which signals weakness and 0.7490 may become an adjacent level to be concerned about before looking at the 0.7470 support-line. If the prices decline below 0.7470, the 0.7450 and the 0.7410 can be targeted while being short. Alternatively, the 0.7530, the 0.7545 and the 0.7560-65 can limit the pair’s nearby advances, breaking which 0.7590 & 0.7620 might lure the buyers. Above the 0.7620 resistance, the 0.7650 horizontal-hurdle seem important to watch as it could open the door for the pair’s rally to 0.7690 & 0.7720.


In order to confirm the recent pullback as Breakout-Pullback-Continuation (BPC), the USDCHF must register a D1 close beyond 1.0055, which if happens could help the pair to visit the 1.0100 and the 1.0125 prior to aiming the March 2017 high around 1.0170. Meanwhile, pair’s daily close below the resistance-turned-support, at 0.9955, can fetch it to 0.9910 & 0.9870 rest-points with 0.9830 being the only following number that Bears might enjoy ahead of challenging the three-month-old ascending TL, at 0.9755.

Cheers and Safe Trading,
Anil Panchal

This article was originally posted on FX Empire