The mounting expectations over the possibility of US interest rates being increased in April has empowered the Dollar bulls, resulting in the EURUSD being left under some pressure. Nevertheless, this pair remains technically bullish on the daily timeframe as there have been consistently higher highs and higher lows while the MACD trades to the upside. A breakout above 1.120 may create a new low high at 1.150 potentially opening a path back towards the 1.134 highs. Bulls remain in firm control as long as the 1.150 support is defended.
This pair has been conquered by the bears and may receive further punishment as ongoing concerns over the immeasurable impacts of a Brexit on the UK economy haunt investor attraction towards the currency. Prices have found some short term comfort above the 1.41 support, but may be poised to decline later in the week as more data from the UK reinforces the bearish sentiment towards the pound. From a technical standpoint, prices are trading below the daily 20 SMA while the MACD has crossed to the downside. A breakdown below 1.41 should open a path towards 1.40 and potentially lower.
AUD bulls have received ample encouragement from the appreciation in Gold prices while previous Dollar weakness acted as a catalyst for bullish investors to attack prices to fresh yearly highs. This pair is bullish and prices may trade back towards 0.7600 as long as the 0.7400 support defends. From a technical standpoint, the candlesticks are trading above the daily 20 SMA while the MACD has crossed to the upside. An intraday breakout above 0.7550 could be the first steps for an incline towards 0.7600 and potentially higher.
This pair is heavily bearish despite the oil market fundamentals which kept prices buoyed last week and a breakdown back below 1.32 should open a path towards 1.30. Prices are trading below the daily 20 SMA while the MACD has also crossed to the downside. If the pair manages to attain a daily close below 1.30, then previous support could become a dynamic resistance for a sharp decline towards 1.30 and potentially lower. A bullish move back above 1.34 suggests bearish weakness and invalidates this daily bearish outlook.
The Dollar Index is heavily bearish on the daily timeframe as there have been consistently lower lows and lower highs. Prices are trading below both the 20 and 50 SMA while the MACD has also crossed to the downside. This relief rally may encourage bearish investors to send the Dollar Index towards 94.00 and potentially lower. From a technical standpoint, previous support around 96.50 should become a dynamic resistance which may encourage a steep decline towards 94.00.
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