In this article, we’ll focus on EUR/USD, USD/MXN and USD/CAD from a technical perspective, taking into account price action dynamics and market sentiment.
EUR/USD has retreated over the last couple of days after failing to take out Fibonacci resistance at 1.0765 earlier in the week. However, the pair has managed to establish a base around the 1.0700 handle and has started to perk up, signaling that the selling pressure is abating. If the rebound extends in the coming sessions, the initial ceiling to watch lies at 1.0765. On further strength, attention shifts to 1.0840.
The recent manifestation of risk-on sentiment has worked to the advantage of the Mexican peso, allowing USD/MXN to retreat from its October highs, as seen in the daily chart below. If the pair continues on its bearish course, support is positioned around the 17.40 mark. Sellers may find it challenging to breach this technical floor, but in the case of a breakdown, a potential move to 17.05 is conceivable.
In the event that the market turns, and sentiment shifts in favor of sellers, technical support levels are identifiable at 1.3785 and 1.3700. With continued weakness, the possibility of a retest of the 50-day SMA comes into view. Should the price fall below this moving average, trendline support at 1.3575 warrants a watchful eye.Leveraged trading in foreign currency or off-exchange products on margin carries significant risk and may not be suitable for all investors.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
US Dollar Setups: EUR/USD, GBP/USD and AUD/USD Muted as Bullish Momentum WanesThis piece employs a technical approach to analyze EUR/USD, GBP/USD, and AUD/USD, with an emphasis on significant price levels that may act as support or resistance in the upcoming trading sessions.
Read more »
USD/CAD Price Analysis: Rallies to near 1.3750 amid recovery in US DollarThe USD/CAD pair recovered vertically to near 1.3750 as investors cleansed positions from risk-perceived assets and rushed back to the risk-aversion theme.
Read more »
US Dollar Setups: EUR/USD Defies Support After Pullback, USD/JPY Stands TallThis article analyzes EUR/USD and USD/JPY from a technical perspective, examining recent price action dynamics and important price levels that deserve attention in the short term.
Read more »
EUR/USD Forecast: US Dollar firms up ahead of PowellThe EUR/USD pair remains on the back foot, down on the day after an early test of the 1.0700 price zone.
Read more »
EUR/USD remains on the defensive below 1.0700, Fed Chair Powell's speech in focusThe EUR/USD pair lacks any firm intraday direction on Wednesday and oscillates in a narrow trading band, around the 1.0700 round-figure mark during the Asian session.
Read more »
USD/MXN hovers around 17.5000, focus on Banxico policy decisionUSD/MXN treads water near 17.5000 during the European session on Wednesday.
Read more »