The swing high at 1.20622 forming on Aug 29 was targeted on Thursday, however, prices failed to close above that resistance when trying to make a break on Friday. EUR/USD’s RSI now approaches nearly the overbought territory, suggesting that we may see a short-term retracement next week. The nearest support level is spotted at 1.18860 (the 31-month peak resistance-turned-support). Alternatively, a turn above the mentioned swing high of 1.20622 could pave the way for a further climb to the 61.8% Fibonacci expansion of 1.21520.
The obstacle at 1.31210 was successfully struck through on Friday this week, opening the door for a probable rise to the 11-month high at 1.32645 next week. A break above that resistance level on a daily closing basis may register for another advance to the weekly hurdle identified at 1.34428. On a contrary, GBP/USD could pull back to the before-adverted level at 1.31210 which turned into new support.
This Friday confirmed that prices finally turned below the crucial support level of 108.137, indicating that the next foundation at 106.827 (the 61.8% Fibonacci expansion) is now on the radar. Given a strike through that support level, USD/JPY may continue to head lower to the 100.0% Fib of 104.458. On the other hand, prices could retest the support-turned-resistance zone at 108.137 – 108.252.
This currency pair has spent a week plunging exactly as we had forecasted. Prices reached the 61.8% Fibonacci expansion of 1.20775 on Friday but then rebounded. Combining with the fact that USD/CAD’s RSI line tends to cross back above 30 which suggests the weakening of bearish momentum, a short-term rally of the Greenback-Loonie is entirely possible next week. The nearest support level is found at 1.24131 (the 2-year low support-turned-resistance). Alternatively, a break below the 61.8% Fib of 1.20775 could trigger a further decline to the 31-month bottom at 1.19292.
As we had predicted, AUD/USD did make a bullish move to hit the two-year high at 0.80647. However, a shooting-star candle has developed on this Friday, signaling that we may see prices retreat to the support zone at 0.79245 – 0.78585 (EMA (20), SMA (50)) in near-term. On the contrary, the Aussie-Greenback pair could trade higher to challenge the 32-month barrier at 0.81511 given a close above the before-mentioned high at 0.80647.
The Kiwi-Greenback moved higher this week but couldn’t break to the upside of the EMA (20) – SMA (50) range, implying that a near-term consolidation is likely to form during the period from Sept 11 to Sept 15. The nearest support level is defined at 0.71301. On the other hand, a turn above the predicted top of the struggle at 0.73376 could clear a path towards the solid resistance level of 0.75568 (the 2-year top).