![EUR/USD to move higher into New Year’s Eve? [Video]](https://i0.wp.com/citykingsholdings.com/wp-content/uploads/2021/12/world-currencies-53475296_Large.jpg?resize=120%2C86&ssl=1)
US Greenback, EUR/USD, AUD/USD, USD/JPY, GBP/USD – Weekly Technical Outlook
EUR/USD – Bearish
The US Greenback prolonged positive aspects towards the Euro this previous week, reversing losses seen all through March. EUR/USD additionally broke beneath a bearish Rising Wedge chart formation, opening the door to resuming the broader downtrend within the week forward. Nonetheless, this requires taking out the March low at 1.0806, exposing the 1.0772 – 1.0793 help zone.
The latter consists of lows from April 2020. Shortly past that’s the 2020 low at 1.0636. Within the occasion of a flip greater, fast resistance seems to be the 38.2% Fibonacci extension at 1.0922, with the 23.6% degree past that at 1.1022. Down the street, the 50-day Easy Shifting Common (SMA) could keep the broader draw back focus.
AUD/USD – Bearish
The US Greenback additionally pushed greater towards the Australian Dollar this previous week. That is as AUD/USD left behind a Bearish Engulfing candlestick formation. Since then, there was draw back follow-through, opening the door to extending losses. Nonetheless, costs lately pierced the 61.8% Fibonacci extension at 0.7458, in addition to closing beneath the 20-day SMA, opening the door to additional losses.
That is now putting the concentrate on a rising trendline from the start of February. The latter may then reinstate the upside focus for the reason that finish of January. If not, that might expose the March 15th low at 0.7165. Within the occasion the pair makes an attempt to renew the uptrend since January, pushing above the 0.7532 – 0.7556 inflection zone exposes the 100% extension at 0.7639.
USD/JPY – Bullish
The US Greenback prolonged positive aspects towards the Japanese Yen this previous week, with USD/JPY closing at its highest since August 2015. On Monday, the pair set a brand new 2022 excessive, stopping just below 2015 peak at 125.856. Closing above the latter brings ranges from 2002 into focus. That’s when the midpoint and 61.80% Fibonacci extension ranges at 126.634 and 127.896 close to, respectively.
Within the occasion of a flip decrease, preserve a detailed eye on the 20-day SMA, which may reinstate an upside focus. That will turn out to be a chance if costs take out the previous resistance zone (123.862 – 125.108). Past the latter is the late March low at 121.49. Confirming a breakout beneath the latter could shift the outlook more and more bearish, putting the concentrate on the midpoint of the Fibonacci retracement at 119.758.
GBP/USD – Bearish
The US Greenback prolonged positive aspects towards the British Pound this previous week, sending GBP/USD decrease because it continued to fall in keeping with the broader downtrend since 2021. Nonetheless, costs had been unable to clear the March low at 1.3001 on Monday, with costs forsaking an indecisive Doji candlestick sample. Optimistic RSI divergence does present that draw back momentum is fading, which might precede a flip greater.
Such an consequence may place the concentrate on the falling trendline from the top of February, which may reinstate the draw back focus. Past that’s the 1.3161 – 1.3195 inflection zone earlier than the 50-day SMA kicks in. Resuming the downtrend exposes the 61.8% Fibonacci extension degree at 1.2902 earlier than the 78.6% degree at 1.2794 kicks in.
— Written by Daniel Dubrovsky, Strategist for DailyFX.com
To contact Daniel, use the feedback part under or @ddubrovskyFX on Twitter
![EUR/USD to move higher into New Year’s Eve? [Video]](https://i0.wp.com/citykingsholdings.com/wp-content/uploads/2021/12/world-currencies-53475296_Large.jpg?resize=350%2C250&ssl=1)
