Jump to content

Market update: US dollar forecast – technical analysis on EUR/USD, USD/JPY, USD/CAD


Recommended Posts

Posted

EUR/USD above 200-day SMA, key levels at 1.0840 and 1.0770. USD/JPY eyes 149.00 breakout, potential retracement at 147.40. USD/CAD rebounds, eyes 1.3500 resistance, and 1.3415 support.

 

original-size.webpSource: Bloomberg

 
 
 Written by: Diego Colman | Market Analyst, New York | Publication date: 

EUR/USD technical analysis

EUR/USD has been moving lower this week, but has so far managed to hold above its 200-day simple moving average near 1.0840. For sentiment around the euro to improve, the bulls have to protect this floor at all costs; failure to do so could result in a pullback towards 1.0770. On further weakness, all eyes will be on trendline support at 1.0710.

In the event of a bullish reversal ahead of the European Central Bank decision, technical resistance extends from 1.0920 to 1.0935. If history is any guide, buyers will face difficulties in clearing this barrier; however, a successful breakout has the potential to usher in rally towards 1.1020. On continued upward momentum, attention will turn to 1.1080.

EUR/USD daily chart

 

original-size.webpSource: TradingView

USD/JPY technical analysis

While the Bank of Japan’s monetary policy announcement sparked some yen’s volatility, it was ultimately a nothingburger, with the institution maintaining its ultra-loose policy settings - a decision that could pave the way for further weakness in the Japanese currency.

Looking at USD/JPY, prices seem to be ready to start the next leg higher after a short period of market consolidation, as shown on the daily chart below, where the pair can be seen approaching a key ceiling near 149.00. If buyers manage to push the exchange rate above this ceiling, a retest of the 150.00 level could be just around the corner.

On the flip side, if USD/JPY reverses off technical resistance, initial support is located near 147.40, near the 100-day simple moving average. Prices are likely to stabilize in this area before resuming their bullish path; however, a decisive breakdown could pave the way for a retracement toward the 146.00 handle.

USD/JPY daily chart

 

original-size.webpSource: TradingView

USD/CAD daily chart

After a sharp pullback late last week, USD/CAD has regained ground over the past two days, overcoming significant hurdles in the process, including the 200-day and 50-day simple moving averages. Should gains accelerate in the coming days, trendline resistance appears at 1.3500. Looking higher, the crosshairs will be on 1.3540, the 50% retracement of the November/December downturn.

In contrast, should USD/CAD's upward momentum falter and prices turn lower, primary support below the key moving averages highlighted before looms at 1.3415, followed by 1.3380. Although the pair may bottom out in this region during a pullback, a decisive breakdown could create the right conditions for a drop toward the 1.3300 handle.

USD/CAD daily chart

 

original-size.webpSource: TradingView

 

 
 

 

This information has been prepared by IG, a trading name of IG Australia Pty Ltd. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • image.png

  • Posts

    • Decentralization is getting more popular and that is the real reason why the crypto and Blockchain ecosystem was developed in the first place, and we keep seeing new Dex trading project coming up with advanced features.  Decentralized trading has started gaining attention recently,and with a good reason. Decentralized exchanges are rapidly providing advantages against centralized exchanges, such as more leverage, onchain order books, tighter spreads, and a more engaging trading experience. One platform that stands out in this arena is Hyperliquid, which has caught my interest because of its unique approach to decentralized perpetual trading.   One of the most notable aspects of Hyperliquid is its focus on providing a seamless decentralized perpetual exchange service. The platform facilitates perpetual futures trading directly on its native L1 blockchain, which sets it apart from other DEXs. What makes Hyperliquid even more attractive is its elimination of gas fees for transactions. This feature drastically reduces the cost barrier for traders, making it a more accessible platform. Moreover, this gas-free model contributes to enhanced transaction speed and efficiency, delivering a smoother and faster trading experience.   Given these advantages, I’ve decided to keep a close eye on Hyperliquid’s native token, HYPE, especially as it’s now available for farming on the BingX Xpool. Participating in token farming not only supports the ecosystem but can also be a rewarding way to earn while engaging with this cutting edge DEX platform.   This is also another way of putting idle assets to work like BTC and USDT, as holders are holding BTC and waiting for it to rise to make more profits or holding USDT in preparation to buy newly found tokens, you can stake these assets on BingX XPool and share 150,000 HYPE tokens effortlessly. This is a good way to earn HYPE tokens before it hits the exchange spot market. Sign up on BingX to join the XPool Here    
    • When I first heard about $MOVE, I didn’t think much of it. Let’s face it—there’s always another “hyped” coin making the rounds. But something interesting around this token made me curious enough to take a second look. People were raving about its Ethereum Layer 2 scalability and lightning-fast 30k TPS. The technology seemed solid.   After reading more about $MOVE and its potential, I looked into Bitget pre-market. At a price of just $0.538, it seemed like a calculated risk worth taking. When the token was officially listed, the price shot up, and those early gains got a good return. That said, crypto is a risky game, and I always remind myself not to get swept up in the hype.   For every win, there’s a chance of loss, and that’s why staying informed and investing only what you can afford to lose is crucial. Still, experiences like this keep me excited about exploring new opportunities. Whether it’s $MOVE or the next big thing, doing your research, staying engaged, and being cautious can make all the difference!
    • The Usual Protocol is rewriting the rules with USD0, a stable coin powered by $USUAL a governance token that puts ownership in the hands of its community.  Revenue-tied value.  Decentralized governance.  Sustainable growth. Could this be the future of stablecoins? #CryptoCommunity #Stablecoin #DecentralizedFinance
×
×
  • Create New...
us