The fading hopes over a US rate hike in March has left the Dollar vulnerable and this offered an opportunity for EURUSD bulls to break above 1.050 during trading on Wednesday. Prices have become heavily bullish on the daily timeframe and a weak NFP report on Friday may offer the momentum needed for the EURUSD to hit the 1.1250 resistance. From a technical standpoint, the candlesticks are trading above the daily 20 SMA while the MACD has also crossed to the upside. Dollar weakness is overwhelming and this should encourage buyers to send the EURUSD to 1.1250 and potentially higher. A weekly close back below 1.1050 invalidates this daily bullish outlook.
Sterling bears received inspiration during trading on Thursday following the unanimous vote to keep UK rates unchanged and a downwards revision of UK GDP growth. Sentiment towards the Sterling was already bearish but this reinforcement should offer the opportunity for bearish investors to send the GBPUSD back down towards 1.4500. From a technical standpoint, this pair illustrates mixed signals as prices are above the daily 20 SMA but the MACD still trades to the downside. Although this is a tug of war between Sterling and USD weakness, a weekly close back below 1.4500 may encourage a further decline towards 1.4400 and potentially lower.
The EURJPY is currently bullish on the daily timeframe with a strong level of support based at 130.00. Prices are trading above the daily 20 SMA while the MACD has also crossed to the upside. A solid daily close outside the current bearish channel above 131.30 should encourage a further incline towards 133.00. If bears take control and send prices back below 130.00 then this daily bullish outlook becomes invalidated.
This pair is heavily bearish on the daily timeframe and this downside momentum may send price towards 2.8500. Prices are trading below the daily 20 SMA while the MACD has just recently crossed to the downside. The current support at 2.900 may become a dynamic resistance which may invite a further decline towards 2.8500.
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