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U.S. Dollar Looks Bearish Ahead Of A Busy Week

Published 10/31/2016, 05:31 AM
Updated 08/29/2019, 07:20 AM
EUR/USD
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USD/JPY
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EUR/AUD
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DX
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The US dollar index was seen attempting to pare losses from Friday's news reports on the FBI - Clinton email scandal which sent the dollar broadly lower. However, despite the current uptick, the gains in the US dollar could be limited with the weekly session closing in a dark cloud cover candlestick pattern indicating a near term decline to the downside. Technical support is seen near 96.18 - 95.85 which could infer that the dollar could be seen weakening over a busy week which includes the FOMC statement, ISM manufacturing and Friday's payrolls report.

EUR/USD Daily Analysis

EUR/USD 4 Hour Chart

EUR/USD (1.0968):With the EUR/USD closing above 1.0900 last week, price action is now a few pips away from challenging 1.1000 resistance. A premature pullback before testing this resistance could see the euro's declines limited towards 1.0920 - 1.0950. The price action on the 4-hout chart time frame also shows a potential cup and handle pattern that could be formed with the resistance seen at 1.0975 with the Fibonacci retracement zone of 1.0931 - 1.0903 marking the 38.2 - 61.8 retracement level. A reversal off this retracement zone followed by a breakout above 1.0975 - 1.1000 could signal further upside in the euro towards 1.1050 followed by 1.1095. A break down below 1.0900 could, however, invalidate this bullish bias, keeping EUR/USD under pressure to the downside.

EUR/AUD Daily Analysis

EUR/AUD 4 Hour Chart

EUR/AUD (1.4406):EUR/AUD has been bullish for the past two days following the pin bar reversal near the support at 1.4200. The current pullback could be seen limited to 1.4309 - 1.4344 support level. As noted last week, EUR/AUD is looking to target 1.4560 to challenge the broken support level for resistance. A higher low near the support level of 1.4309 - 1.4344 could signal further upside in EUR/AUD. The weekly time frame in EUR/AUD closed with an outside bar indicating that a breakout above the high of 1.4484 could signal further upside in prices.

USD/JPY Daily Analysis

USD/JPY 4 Hour Chart

USD/JPY (104.74): USD/JPY has been bullish over the past weeks, but the consolidation into the triangle pattern is indicative of a near-term pullback in prices. Resistance is seen at 105.00 - 105.16 price level, and if USD/JPY fails to breakout above this resistance, a near-term decline could see prices fall towards 104.00 which is the initial support followed by 103.00 - 103.25. Alternately, a bullish continuation to the upside above 105.16 could signal further gains in USD/JPY which could then challenge the next main resistance at 106.00 which was tested briefly in July this year.

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