US DOLLAR ANALYSIS, EUR/USD, AUD/USD, NZD/USD — TALKING POINTS
EUR/USD branching out a new uptrend but will be coming across the critical cross-section
AUD/USD rejected at 21-month swing-high. Drop accelerated after local GDP released
NZD/USD cleared 13-month resistance but price action is indicating slowing momentum
EUR/USD ANALYSIS
EUR/USD appears to be climbing along with a newly-sprouted, modest uptrend since late July after jumping above the older slope of appreciation dating back to mid-May.
The intersection of the two — labeled as “Key Juncture 2” may be critical. Breaking below that could result in a short-term pullback, followed by a brief congestive period before the broader uptrend resumes.
EUR/USD — Daily Chart
EUR/USD — Daily Chart
AUD/USD OUTLOOK
AUD/USD was firmly rejected at the December 2018 swing-high at 0.7393 and was met with aggressive follow-through. Worse-than-expected Australia GDP data compounded AUD losses.
Looking ahead, the pair will likely retest short-lived, former resistance-turned-support at 0.7295. Cracking that floor could open the door to flirting with a stubborn inflection range between 0.7206 and 0.7181.
AUD/USD — Daily Chart
AUD/USD — Daily Chart
NZD/USD FORECAST
After breaking below the early-June uptrend, NZD/USD underwent a brief selling bout before stabilizing in mid-August and resuming its broader uptrend.
As per PipsWin, The pair just recently cleared a technical landmark at 0.6726 with follow-through, which could precede another rise if momentum is sustained.
Having said that, recent price action does paint a worrisome picture.
NZD/USD — Daily Chart
NZD/USD — Daily Chart
Leading up to resistance, the candles had large bodies and small wicks, indicating what appeared to be robust underlying confidence in the pair’s upside trajectory.
However, since the ceiling has been cleared, price action has become timider as the pair trades at a 13-month high. The wobbly movement could make traders nervous and potentially catalyze a short-term pullback.