Mid-week Technical Outlook: FX Majors & Minors In Focus

Caution was the name of the game on Wednesday as inflation fears and concerns over slowing growth left investors on edge.

European shares fell while Wall Street futures flashed red due to the lack of appetite for risk ahead of the ECB meeting on Thursday and the US inflation report on Friday. In the commodities arena, oil prices drifted higher thanks to supply concerns and prospects of higher demand. Gold struggled for direction, waiting for a fresh directional catalyst to trigger some action.

There was some action in the FX space with the yen weakening against every single G10 currency. King dollar stabilized across the board while the euro appreciated ahead of the ECB meeting on Thursday. With the trading month of June in full swing, we have a couple of currency trends under our radar. If you have an appetite for technical analysis and want insight into potential trading opportunties, then check out the charts below!

EURUSD waits on ECB

The EURUSD remains in a range with support at 1.0630 and resistance at 1.0780.

Prices are trading above the 50, 100, and 200-day Simple Moving Average while the MACD trades above zero. A strong breakout above 1.0780 may trigger an incline towards 1.0920 and 1.1000. Alternatively, a breakdown under 1.0630 could open the doors back towards 1.0480 and 1.0350, respectively.

GBPUSD breakout on the horizon?

Strong support can be found at 1.2450 while resistance may be found at 1.2650.

Given how prices are trading below the 50, 100 and 200-day Simple Moving Average – bears certainly have some control. On top of this, the currency pair is respecting a downwards channel. A breakdown below 1.2450 could encourage a selloff towards 1.2300 and 1.2150. Alternatively, a move back to 1.2650 may open the doors towards 1.2840.

Time for the AUDUSD to fall?

After punching above the 0.7270 level, the AUDUSD looks tired and ready to decline. There is strong resistance around the 50, 100, and 200-day Simple Moving Average with prices eyeing the 0.7150 support. A strong break below this level could open a path towards 0.7050 and potentially lower. Should 0.7270 prove to be unreliable resistance, the AUDUSD could venture back towards 0.7350.

USDJPY hits fresh 20 year high

The subtitle says it all.

USDJPY bulls are on a tear, hitting a fresh 20-year high of 134.00 this morning. This currency pair remains heavily bullish on the daily charts with the next key level of interest found at 136.00. If bulls decide to take a break, a technical throwback towards the 131.00/132.00 regions could be on the cards before the upside resumes. A decline back under 131.00 could bring bears back into the picture.

GBPJPY primed to shoot higher?

A depreciating yen has sent the GBPJPY skyrocketing higher over the past few days. The currency is approaching its 2022 high at 168.43! A breakout above this level may send the currency pair to levels not seen since January 2016. A strong breakout above 168.50 could open the doors towards 170.00. If prices sink back below 166.50, we could see a decline towards 164.00.

NZDUSD wobbles above 0.6450

Looks like the party could be over for NZD bulls after prices struggled to breakout of the current range. The 0.6450 support looks shaky and ready to give way to bears this week. A strong break below this level could encourage a decline towards 0.6300 and 0.62200, respectively. If prices end up rebounding from 0.6450, the next level of interest can be found at 0.6570.

EURAUD struggles for direction

Over the last few days, the EURAUD has struggled for direction. Prices have remained within a tight range with 1.4900 acting as a sticky level of interest. A strong break above this point could signal a move towards 1.5150 and 1.5300. Alternatively, a decline back towards 1.4770 may open a path back to 1.4600 and lower.

EURGBP choppy as ever…

If you like turbulence and volatility, check out the EURGBP. This currency pair remains choppy as ever as bulls and bears battle it out. Some support can be found at 0.8500 and resistance around 0.8580. If bulls can conquer this resistance, the next key point can is seen around 0.8630. Below 0.8500, there is support at 0.8450 and 0.8420.

EURUSD GBPUSD AUDUSD USDJPY GBPJPY NZDUSD