US Dollar, USD/CAD, EUR/USD, AUD/USD, GBP/USD – Weekly Technical Outlook
- US Dollar’s advance seemed to have ended on an uncertain footing
- USD/CAD eyes a Shooting Star as EUR/USD faces a Falling Wedge
- AUD/USD left behind a Hammer, GBP/USD eyes triangle support
USD/CAD – Slightly Bullish
The US Dollar’s aggressive push last week ended on an uncertain footing against the Canadian Dollar last week. While USD/CAD touched new 2021 highs at one point, prices came quickly back down on Friday. That left behind a bearish ‘Shooting Star’ candlestick pattern. While this is not necessarily a guarantee that a turn lower could be on the horizon, it does offer an ominous warning sign working in conjunction with negative RSI divergence. Confirmation is key, and a subsequent downside close risks opening the door to losses.
Chart Created in TradingView
EUR/USD – Slightly Bearish
The Euro remains tilted to the downside against the US Dollar, with EUR/USD consolidating lower within the boundaries of a bullish Falling Wedge chart pattern. While the latter can have upside implications, that may not become realized until a breakout above the formation is achieved. Until then, the US Dollar may continue outperforming. Prices are quickly approaching the critical 1.1603 – 1.1630 support zone. Breaking under this zone could open the door to extending the downtrend towards highs from March 2020.
AUD/USD – Slightly Bearish
The US Dollar touched its most expensive point against the Australian Dollar this year so far. But, similar to USD/CAD, AUD/USD trimmed some of its progress on Friday. That left behind a bullish Hammer candlestick pattern. Upside closes in the following trading sessions could hint at a material turning point for the Aussie. Despite this, the dominant downtrend still remains in play, guided lower by the 20- and 50-day Simple Moving Averages (SMAs). In the event of more declines, keep a close eye on the 0.6991 – 0.7016 support zone.
GBP/USD – Neutral
The British Pound also weakened against the US Dollar this past week, with GBP/USD consolidating lower within the boundaries of a Descending Triangle chart pattern. The pair is closely eyeing the 1.3572 – 1.3671 support zone. This well-established range has the potential to send prices back higher towards the ceiling of the triangle. Positive RSI divergence does show that downside momentum is fading. At the same time, prices confirmed a break under the 200-day SMA, opening the door to a material turn lower.
— Written by Daniel Dubrovsky, Strategist for DailyFX.com
To contact Daniel, use the comments section below or @ddubrovskyFX on Twitter