Weekly Overview on Majors' Price Action

EURUSD - Continued the downtrend

Last week my expectations were for the EURUSD was to break under 1.0600 and move down to 1.05. The price broke below the support level, but bears did not have the power to push the price to the next round number. The drop stopped pretty fast and the price bounced back to 1.0700. After retesting the resistance it dropped again to retest the lows.

EURUSD is now trading around 1.0560 and it seems that bears are ready to push this pair lower. I am still expecting the price to drop to 1.0500, maybe in the beginning of this week. In the bigger picture, the RSI is still showing a divergence. This combined with the Falling Wedge might end up being a strong bullish signal. A break and close above the upper line of the wedge would be a strong buy signal for bulls, and the price might rally back towards 1.07.

USDJPY - Sideways move

The USD lost against the Japanese Yen last week.The price dropped under the local support from 122.70 and retested twice the key level from 122.24 without breaking below it. After the second retest the price bounced back above 123.00.

From the 6th of November to now, USDJPY has been trading in a sideways move limited by 123.60, the upper limit, and 122.24, the lower limit. This means that the greenback just took a short break from appreciating against the Yen. A break above the resistance could trigger another strong jump for the US Dollar. An alternative scenario may come into place if the bulls will rather wait for the Fed to make a move in December. A break below the support could trigger a bigger corrective move for the existing trend.

NZDUSD - Symmetrical Triangle

Last Monday, the price of NZDUSD retested 1.6500, which happened to be also 61.8 Fibonacci retrace of the latest swing high. From the level the price was pushed towards the latest high, but it did not reach it. Throughout the week the price moved sideways, hitting lower highs and higher lows, drawing a Symmetrical Triangle.

The Symmetrical triangle is considered to be a continuation pattern. But this situation is a bit different. The US dollar is gaining across the board, which means that it might win also against currencies like NZD and AUD. A break below the lower line of the triangle would signal adrop back towards the current lows of the downtrend, while a break above the upper line of the pattern would signal a continuation of the rally that the New Zealand dollar started.

USDCAD - Continuing the Uptrend

Most investors prefer to buy the US Dollar, for the reasons we all know. Better economic outlook and the Fed promise to hike the interest rate made everyone go for the greenback. USDCAD has been trading in an uptrend for some time now. Price action is still bullish, showing eagerness to reach an older high at 1.3455

Even though the price continued to hit new higher highs and new higher lows, the RSI is drawing a stronger divergence. With each new swing high on the price movement, the RSI is drawing a new swing low. This might just prove to be a strong bearish signal for the USD. For this signal to be confirmed, the price will have to break below the trend line.