In today’s Forex Forecast, we note the technical outlook for EUR/USD, USD/JPY and the DXY with, Nicole Elliott, Technical Analyst and Private Investor.
USD/JPY: Death cross
Elliott takes a look at the weekly charts for USD/JPY, noting that the cross remains below the long-trendline, calling the previous break just an extension. She adds that there is support from a big cloud , but with a death cross on the charts, the outlook remains negative.
She says how the pair looks tired, and breaking below 118 and 115 might open up lower levels towards 105.
EUR/USD: Nowhere near parity
Elliott explains how EUR/USD trades nowhere near parity, but near this year’s highs. She adds how the pair is now trapped in a right angled triangle formation.
On the recent spoke, Elliott quotes that this is more of a dollar story than the EUR one, with the Fed rate hike uncertainty pushing the pair higher.
DXY: Longer-term charts post a dim picture
Looking at the longer-term charts for the USD Index, Elliott notes how the dollar rallied in 2014, but remains in a triangle formation in this year. She adds how she expected the index to top, and how this has been a really slow process than anticipated. On the slow topping, she believes that this is more of a QE story which has impacted how people invest in the markets.
