Has U.S. Dollar's Bull Trend Resumed?
Jason Sen | Feb 07, 2023 05:11AM ET
AUD/USD rejected the 100-week & the 500-day moving averages at 7160/80 & collapsed through support at 7060/50 on Friday for a sell signal targeting 6990/80 & 6930/20.
After the bearish engulfing candle on the weekly chart, the outlook remains negative. We broke 6300 for a sell signal targeting 6830/20 but only reach 6853 so far.
Gains are likely to be limited with resistance at 6920/40. Shorts need stops above 6960. On the downside, we are targeting 6830/20, perhaps as far as 6790/80.
NZD/USD huge bearish engulfing candle on the weekly chart suggests the longer-term bull trend for the US dollar has resumed.
However, we made a low for the day just below key support at 6300/6280 - we can still have a bounce after a bearish engulfing candle. If you try longs, stop below 6255 - targets are 6360/70, perhaps as far as resistance at 6400/20. Shorts need stops above 6435.
A break below 6255 is a sell signal targeting 6200/6190, perhaps as far as 6160/50.
AUD/JPY resistance at 9125/35. Above 9150 meets strong resistance at 9180/9200. Shorts need stops above 9220.
A break below 9065 re-targets 9040 & 9010/00, perhaps as far as 8970.
USD/JPY shot higher through strong resistance at 130.65/85 for a buy signal. The bullish engulfing candle on the weekly chart suggests the longer-term bull trend for the US dollar has resumed. Holding above strong support at 130.80/60 targets 131.50/60, 131.90 & 132.40/50.
All targets hit as we reach strong resistance at 132.90/133.10. Shorts can target 131.80/70, perhaps as far as strong support at 131.10/130.90 for a quick scalping opportunity. Longs need stops below 130.70.
Shorts at 132.90/131.10 stop above 133.25. A break higher sees 131.10/130.90 act as support to buy into longs, targeting 133.90/134.00 & 134.70.
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EUR/JPY is very choppy - up one day, down the next day in the 6-week sideways trend but should have support at 141.80/141.60 this morning. Longs need stops below 141.40. Longs can target 142.20 & 142.65.
NZD/JPY has strong support at the lower end of the range at 8120/8100. Longs need stops below 8070. A break lower is a sell signal initially targeting 7960/40, perhaps as far as 7880/60.
It is difficult to find tradeable levels in the wide sideways trend. We have strong resistance again at 8460/80. Stop above 8520. Above here is a buy signal & can target 8590 than 8630.
EUR/USD's huge bearish engulfing candle on the weekly chart suggests the longer-term bull trend for the US dollar has resumed.
We wrote: Holding below 1.0820/30 today can target 1.0760/50, perhaps as far as today's support at 1.0690/70. (We made a low for the day at 1.0708). Longs here today need stops below 1.0650.
A break lower is a sell signal, initially targeting 1.0600 & eventually strong support at 1.0470/50. Longs need stops below 1.0430.
Gains will likely be limited after the important sell signal on the weekly chart. The first resistance was at 1.0780/90. Strong resistance at 1.0820/40 on any bounce today - shorts need stops above 1.0875.
USD/CAD shot higher to leave a bullish engulfing candle on the weekly chart. We beat the first resistance at 1.3430/50 to reach 1.3475 & look for the next target of 1.3495/1.3305, then 1.3530/40.
Support at 1.3430/20. Longs need stops below 1.3400. Next target & buy opportunity at 1.3360/40. Longs need stops below 1.3320.
EUR/CAD broke support at the end of the 2-week range at 1.4455/35 for a sell signal targeting 1.4390/80, perhaps as far as 1.4320/10.
Resistance at 1.4480/1.4500 today. Shorts need stops above 1.4525.
EUR/NZD has reversed so there is no clear breakout & I will wait for another opportunity. CAD/JPY has broken higher, so holding support at 9835/15 can target 9920.
GBP/USD broke the lower end of the recent range at 1.2280/60 for a sell signal targeting 1.2145/25 & the break below 1.2115 was the next sell signal on Friday - we hit 1.2002 yesterday.
The outlook remains negative as we look for a test of support at 1.1960/40. A low for the day is possible, but longs need stops below 1.1920.
The first resistance was at 1.2100/20. Strong resistance at 1.2160/80. Shorts need stops above 1.2200.
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