Weekly Forex Technical Outlook – 22nd March

EURUSD (1.125): EURUSD has paused in its rally but the bias remains to the upside for now if prices manage to clear the upper resistance at 1.130 and remains above the previous high at 1.118 – 1.115. To the upside, the next level of interest comes in at the resistance high of 1.148, which was last tested in October 2015. In the event that prices fail to break above 1.130 resistance, the declines could come in the shape of a possible cup and handle pattern as long as EURUSD doesn’t fall below 1.110, in which case above 1.130, prices could rally to as much as 1.160.

• Bias (D1): Upside
• Support: 1.110
• Resistance: 1.130
• Technical Forecast: EURUSD remains biased to the upside as long as it stays above 1.11 support and could potentially target 1.148 followed by 1.16

USDJPY (112.08): USDJPY is attempting to break above following the two-day bullish continuation. Price action, however, remains weak unless 112.5 resistance gives way, which also forms the breakout level from the minor trend line. Above 112.5, resistance at 114.0 will be key, but if the resistance gives way, USDJPY could be looking at a potential upside towards 117 resistance. To the downside, below 111.0, the next support at 110 will be essential, failing which prices could decline to 109.50. The Stochastics is currently showing a bullish divergence which confirms the view to the upside, subject to 112.5 resistance.

• Bias (D1): Downside
• Support: 111.0
• Resistance: 112.5
• Technical Forecast: A break above 112.5 will see further upside to 114 while to the downside, 109.5 is the next likely support to be tested.

GBPUSD (1.437): GBPUSD has managed to breakout from the falling trend line but the rally was capped by the doji candlestick pattern that was formed. Yesterday’s close below the doji’s low is likely to see a decline back to 1.42 which will retest the support level. The Stochastics also confirms the view staying in the overbought level currently. A decline to 1.42 will establish support which could see further upside towards 1.4631.

• Bias (D1): Upside
• Support: 1.42
• Resistance: 1.4631
• Technical Forecast: GBPUSD remains biased to the upside above 1.42 support and could test 1.4631. Below 1.42, GBPUSD could slip towards 1.40

USDCAD (1.306): USDCAD has reversed off the lows near 1.294 but has failed to test the support at 1.2865. To the upside, resistance at 1.3136 will be key for further upside. The next resistance level at 1.346 – 1.3387 will most likely hold the gains and could be tested if USDCAD closes above 1.3136. To the downside, the declines could be limited to 1.2865. The Stochastics remain in the oversold level and could see a potential move towards 1.3387 resistance.

• Bias (D1): Downside
• Support: 1.2865
• Resistance: 1.3136
• Technical Forecast: A break above resistance will see a test to 1.346 – 1.3387 while to the downside, USDCAD could be supported near 1.2865

USDCHF (0.9692): USDCHF has established support identified near 0.9665 following the break from the rather steep bearish flag pattern. An upside bounce could see prices retest 0.9848 while a break below the support could see a test to the next main level at 0.954. USDCHF remains biased to the downside but a pullback could be on the cards given the Stochastics remaining in the oversold levels currently.

• Bias (D1): Downside
• Support: 0.9664
• Resistance: 0.9848
• Technical Forecast: USDCHF is likely to test the downside to 0.954 but a pullback to the recent declines is possible. Prices remain pressured below 0.9848