Original Article by Greg Michalowski, ForexLive
Adapted and expanded for clarity and detail.
Title: Comprehensive Technical Analysis of EUR/USD, USD/JPY, and AUD/USD – End-of-Day Review
As the trading day concluded, forex markets remained active with notable technical patterns emerging in the EUR/USD, USD/JPY, and AUD/USD currency pairs. Traders continue to draw insights from key support and resistance levels, trendlines, moving averages, and price action to make informed decisions about future trades. The data examined here provides a technical snapshot of where these key currencies stand and what potential moves to anticipate.
Below is a detailed breakdown and expanded analysis of the three major currency pairs: EUR/USD, USD/JPY, and AUD/USD.
EUR/USD: Testing the Range and Assessing Momentum
The EUR/USD pair faced a tight trading range during the U.S. trading session, remaining confined to boundaries established earlier in the week.
Key Technical Details:
– The pair found resistance near the 50% retracement level of the December high to the recent low, which lies around 1.0880.
– Support for the pair continues to hold near the 100-hour moving average (MA), currently positioned around the 1.0836 level.
– The 200-hour MA has also come into focus as a key technical floor, positioned around 1.0815.
– Trendline resistance from the April high continues to limit rallies.
Analysis:
– Monday’s price action presented a range between 1.0823 and 1.0880, offering only minor fluctuations and few trading opportunities outside short-term scalps.
– The pair continues to oscillate between the 100-hour and 200-hour moving averages, signaling indecision and lack of a clear directional bias.
– A breakout above 1.0880 could pave the way for a test of resistance near 1.0920 while a breakdown below 1.0815 would increase bearish momentum toward the 1.0750 area.
Outlook:
– Bulls will want to see sustained movement above the 1.0880 resistance level and a close above the 50% retracement to open the path toward the late May highs.
– Bears remain in control if the pair stays below the 100-hour and 50% resistance, especially if price closes under the 200-hour MA support.
Trading Considerations:
– Watch for economic data from the Eurozone to influence price action. A weaker euro data print could help dollar bulls push the pair lower.
– Technically, traders should prepare for a breakout trade strategy given the coiling pattern forming around key technical confluence zones.
USD/JPY: Strong Upward Momentum Yet Approaching Resistance
The USD/JPY pair finished the session at elevated levels, driven by rising U.S. yields and continued divergence in global central bank monetary policy outlooks, particularly the Bank of Japan’s reluctance to tighten policy aggressively.
Key Technical Details:
– The pair has now moved above Friday’s high at 157.71 and stretched toward the upper range resistance near 157.98.
– The 100-hour MA has been a consistent dynamic support line, underpinning bullish momentum.
– A trendline from recent lows continues to guide upwards momentum, reinforcing the near-term bullish structure.
– Key resistance ahead rests around 158.00 and 158.35, while support levels sit at 157.25 and 156.85.
Analysis:
– The break above Friday’s high reaffirmed the bullish bias within the short-to-medium term channel.
– Momentum indicators such as RSI and MACD are tilted positively, though they are nearing overbought territory.
– Despite persistent buying pressure, traders remain cautious of potential verbal intervention from Japanese officials if the yen continues weakening excessively.
Outlook:
– Bulls aim for a clear break and hold above the 158.00 resistance level. A move toward 158.35 and eventually 160.00 may be on the cards if dollar strength and
Explore this further here: USD/JPY trading.