FX Weekly – 2018 Week 03


  • EURUSD ▲ upward bias in channel, but choppy action expected
  • GBPUSD ▲ continue upward bias in broad channel, choppy action expected
  • USDJPY  ▼ maintain downside bias, can go lower
  • USDCHF ▲ downward correction may continue till support at 0.96 but long term bias is to the upside
  • AUDUSD ▲ at resistance area 0.79, could see a correction; LT direction bullish bias
  • USDCAD ▲ bounced off support 1.2430 but threatening it again
  • NZDUSD ► next resistance at 0.7350 could prompt a correction down; LT direction uncertain or flat


EURUSD made new highs, overshooting channel and thus could possibly see a downward correction in this or next week. Overall LT bias still bullish but cautious.

GBPUSD cleared highs too, now aiming for 1.3850 and 1.40 - pre Brexit support levels which can now become resistance. Overall LT bias still bullish but cautious.

USDJPY confirms downside bias, but now at support level 110.80 - could see a pullback before resumption of downtrend. Longer term charts show multiple clues of a toppish formation of multi-H&S and prices have been reacting negatively, failing to claim higher highs since mid-Dec 2017. Maintain bearish bias towards 109+ area.

USDCHF no change from last week, correction continues but LT bullish bias remains until lows of 0.9440 is cleared.

AUDUSD no change in view - longer term bullish - looking for opportunities to buy.

USDCAD bounced off support 1.2430 but is now back at it again, could breach the lows and make the case for a continuation of the bearish trend since 2H 2017.

NZDUSD breaks 0.72 area and next resistance is at 0.7350 for a potential correction or at least some flat action. LT bias is neutral so no LT trades here.