EUR/USD daily price chart with trend-lines
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Short-term Trading Outlook for USD, Euro, Yen & Various Cross-rates

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The bounce in USD is at an important near-term cross-road, with EUR/USD testing trend-line support as well as other USD-pairs at key inflection points. USD/JPY bounce may be over, CHF/JPY heading for a breakdown. EUR/CAD and others examined…

Technical Highlights:

  • US Dollar Index (DXY) at trend resistance, EUR/USD at support
  • Yen decline might be nearing an end; USD/JPY, CHF/JPY in focus
  • EUR/CAD at confluence of resistance, waiting on bullish channel break

For longer-term technical and fundamental analysis, and to view DailyFX analysts' top trading ideas for 2018, check out the DailyFX Trading Guides page .

US Dollar Index (DXY) at trend resistance, EUR/USD at support

Since putting in a low on Friday, the US Dollar Index (DXY) has undergone what appears to only be a corrective bounce. The rally has brought it to trend-line resistance, with its largest constituent, EUR/USD, declining into trend-line support.

Initially looking for the euro to hold trend support and push higher. If it does, there is significant resistance, though, via the 2008 trend-line which has put a lid on an advance three times in less than a month. A scenario we discussed, was for EUR/USD to wedge up between the 2008 trend-line and December trend-line before making a strong one-way move.

EUR/USD Daily Chart

Yen decline might be nearing an end; USD/JPY, CHF/JPY in focus

USD/JPY has put in a nice-sized bounce since Friday morning, but is up against a strong amount of resistance from 10740 to 10810 (short-term trend-line, underside of 2012 trend-line, horizontal price level). The rally in JPY looks like it is ready to stall, bringing a couple of cross-rates into focus.

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USD/JPY Daily Chart

CHF/JPY is trading right around a trend-line from September 2016 and just above one dating back to November. A break of the 2016 trend-line is likely to lead to a break of the shorter-term line. Adding to this notion is the development of a descending wedge on the 4-hr chart. A decline will bring pressure on lows created from November to January from 11373 down to 11295.

CHF/JPY 4-hr Chart

EUR/CAD at confluence of resistance, waiting on bullish channel break

EUR/CAD is trading a trio of resistance lines; 2008 trend-line (drawn at 2 angles), top-side from September 2016, and a top-side from August 2017. The confluence is formidable, but for confirmation that the path of least resistance has turned lower looking for the bullish channel structure on the 4-hr to break, first. A rejection of resistance, break of bullish trend structure should have the cross moving in reverse.

EUR/CAD Daily Chart

EUR/CAD 4-hr Chart

Other pairs we looked at included: GBP/USD, AUD/USD, NZD/USD, USDCAD, USD/CHF, AUD/NZD, EUR/GBP, GBP/JPY, AUD/JPY, NZD/JPY, USD/ZAR, and a few others. For technical and trading considerations, please see the video above…

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---Written by Paul Robinson, Market Analyst

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original source

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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