USD Weakness in Focus.

Welcome to this week’s Market Blast Technicals where we will look at EURUSD, GBPUSD, USDJPY, NZDUSD, and USDCAD.

Yesterday we looked at USD weakness based on the current fundamentals and that trend is continuing today.

On USDCAD we see that price action has broken this key level of support from this descending triangle with the next level at $1.269.

We looked last week at the strength of the New Zealand Dollar and price is now attempting to break this level of resistance in this ascending triangle.

And, just like last week, we need to look at the weekly chart to find the next key level at $0.735.

Yesterday, USDJPY broke the neckline of this head and shoulders pattern and is heading lower to this key level of support at 104.65.

If we zoom out to the daily chart we see that price action might be attempting to resume this bearish trend which has lasted almost one year.

We’ve discussed the strong fundamentals on the Pound and USD weakness is also sending GBPUSD higher and has pushed price to the upper trend line.

Here, as well, we need to zoom out to the weekly chart to see that price is currently at the support neckline of this massive double top from 3 years ago with the next key level at $1.386.

On EURUSD, we will be watching to see if price breaks this upper trend line as the fundamentals on both USD and EUR are weak.

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That’s all for now.  Happy trading with Valutrades and we will see you later in the week with our trading tips video.

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