(MENAFN- DailyFX) In this webinar, we used to look at macro markets after the bullish breakouts that showed in the early portion of this week in GBP/USD and the S & P 500 . While each of these moves have different drivers and characteristics, USD-weakness played a role in each. This has went hand-in-hand with a short-term bearish move in the US Dollar and this opens up the possibility of more downside in the Greenback as we move deeper into this week.
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S & P Bullish Breakout into Resistance
We started off by looking at . Prices had spent much of the past three weeks building into an ascending wedge pattern, and resistance began to give way yesterday and that strength has lasted into today. , or the 50% retracement of the February sell-off, and that's already taken place. The big question now is one of continuation potential, and we looked at a few bullish trend-lines to illustrate how this recent topside breakout has displayed an increasing and likely unsustainable pace of gains. We looked at a few resistance levels to begin plotting short-side setups in the S & P 500, with possible areas of interest at 2724 and 2744.
S & P 500 Hourly Chart: An Unsustainable Increase in the Pace of Gains Runs into Resistance Chart prepared by
USD Intermediate-Term Range with Bearish Short-Term Trend Potential
We looked at the Dollar from a couple of different perspectives: On the four-hour and above . But on a shorter-term basis, , as we've , and that move has continued with lower-lows and lower-highs, all the way into this morning's trade. This keeps the door open for short-term bearish continuation, targeting the March lows at 89.00 in DXY .
US Dollar via ‘DXY' Hourly Chart: Lower-Lows, Lower-Highs Chart prepared by
EUR/USD Remains in Range
Going along with that range-bound behavior in USD , we have . On a shorter-term basis, longs could be justified if prices pull back a bit closer to 1.2300, which had helped to set last week's swing lows. Outside of that, be careful of resistance at 1.2400-and-above.
GBP/USD Bullish Breakout Pulls Back
It's been , as the no more than two weeks ago and we've already moved up to a fresh post-Brexit high earlier this morning. After that high came in, however, a reversal started to show, as indicated by . Prices have already pulled back to the ‘s1' level that we looked at earlier this morning at 1.4285. This is the 76.4% retracement of the ‘Brexit move' in the pair, and this could be used by those looking to take an aggressive stance on continuation. More proactive for longer-term stances could be deeper support at 1.4245 or, perhaps even 1.4200.
GBP/USD Hourly Chart: Pullback After Bullish Breakout Sets Fresh Post-Brexit Highs Chart prepared by
AUD/USD Holds Resistance
Over the past couple of weeks , and the zone of interest has been between .7750-.7780. Prices actually broke out of this zone last week, albeit temporarily, as bears pushed right back, and we've seen had a build of lower-high resistance on recurrent tests around .7780. We looked at how a bearish test below .7750 re-opens the door to short-side continuation in the pair.
AUD/USD Hourly Chart: Build of Lower-Highs Keeps Door Open for Shorts Chart prepared by
NZD/USD Moving Below Resistance Opens Door for Shorts
We've been following the longer-term range in NZD/USD for the past couple of months, waiting for prices to show a bearish short-term move, indicating that the longer-term range may be nearing its next leg-lower. Earlier today saw prices pose a bearish move through .7335, and this keeps the door open for short-side setups. We looked at a series of resistance levels that could be usable for short-side NZD/USD setups.
NZD/USD Hourly Chart: Lower-Lows, Highs as Prices Trade Through ST Support, LT Resistance Chart prepared by
USD/JPY: Decision Time for Bulls
We looked at the construction of shorter-term USD/JPY themes, and the door remains open for bullish continuation, as we've seen a build of higher-lows above points of resistance from last month. The issue at the moment appears to be bulls unwillingness to drive beyond resistance, as we haven't yet been able to test the swing-high at 107.90. The long side of the pair brings the unattractive option of long-USD exposure in order to take on short-Yen. We looked at a couple of other setups that may be a bit more attractive for that same theme.
USD/JPY Four-Hour Chart: Bulls Attempting to Make a Stand at Higher-Low Chart prepared by
GBP/JPY
This pair has put in , and that's largely continued into this morning. The pair has recently started to shy away from the Friday high around the 153.87 Fibonacci level, and this may be preluding a deeper retracement. We looked at possible higher-low support around 152.17 and 151.39.
GBP/JPY Four-Hour Chart: Unable to Take out 76.4% Fibonacci Resistance Chart prepared by
EUR/JPY: Support at Prior Resistance Which Was Previous Support
This is one of our , and the door remains open to bullish continuation. We've seen a continuation of support around the Fibonacci level at 132.05, and this area had spent most of March as resistance after helping the pair to find support for the final four months of last year.
EUR/JPY Daily Chart: Re-Claims Support Zone, But Can Bulls Hold the Line? Chart prepared by
To read more:
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--- Written by James Stanley, Strategist for DailyFX.com
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