US Dollar Uptrend Back to Focus, While EUR/USD to Support Zone

This week, the US Dollar made a return, further extending gains versus the Euro. After ignoring the 1.1909 – 1.1887 resistance zone, the EUR/USD formed a Shooting Star by August. The pair is preparing to revisit the crucial 1.1704 – 1.1664 support zone after wiping out the 23.6 percent Fibonacci retracement at 1.1806.

Meanwhile, a Death Cross between the 20-day and 50-day Simple Moving Averages confirms a negative technical tendency. If the Euro falls to its August low, one needs to keep a careful eye on the RSI. A positive divergence indicating waning downward momentum might appear, signaling an upward move.

USD/JPY- Neutral

The US Dollar is still consolidating versus the Japanese Yen, as the USD/JPY pair is stuck between critical support and resistance levels. At 109.07, the former looks to be the 61.8 percent Fibonacci retracement, while the latter stays at a 23.6 percent level of 110.67. After last week’s support test, the next leg might be at the top of the range. The 200-day SMA is gradually rising. This rise might re-establish the strong upward bias seen at the start of the year. Forex brokers will be able to receive great returns with this re-establishment.

NZD/USD- Bearish

This week, the US Dollar gained ground versus the New Zealand Dollar. Post the ceiling test of a Falling Wedge, the NZD/USD went low, allowing it to move closer to the bottom. While the prognosis remains gloomy inside the chart formation’s limits, the entire picture is connected to an optimistic perspective.

A break above the wedge might signal a resumption of the uptrend that began at the close of last year. Presently, prices face the important SMAs of 20- and 50-day, and a bullish Golden Cross is still under the play. The 0.6943 and 0.6881 points of inflection points will get the rest of the 50-day line is cleared.

USD/CHF Bullish                                                                     

Last week, the US Dollar rose to its highest level versus the Swiss Franc in almost five months, presumably ending a period of stabilization that began in mid-June.  The USD/CHF broke through the primary resistance zone of 0.9275 – 0.9239, revealing the 0.9376 inflection point from March. A declining trend line that dates back to April 2019 appears to be standing in its way.

According to forex brokers, pulling out the crucial 0.9435 – 0.9473 resistance zone would extend the uptrend at the start of the year. It can reorient the pair to the downside, especially as negative RSI divergence indicates bullish momentum is falling. On the other hand, a move back down may lead to strong support at 0.9100.

Roxanne Williams

Roxanne Williams has recently joined as a market reporter for CryptoNewsZ - the 24/7 crypto news site, where she produces recent stories, technical analysis and price updates on world's leading cryptocurrencies.

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