The 4/8 session saw an exodus from the USD, as the greenback fell against most majors.
We saw the EUR/USD, GBP/USD, USD/JPY and Gold show USD-weakness. Let’s also take a look at USD/CHF, USD/CAD and AUD/USD.
The CHF is essentially tracking the EUR, so as EUR/USD rallied, USD/CHF fell. The USD/CHF 4H chart shows a pair that broke below a rising channel support that came up from the March and 2014 low near 0.87. The rally from 0.87 signaled a possible bullish reversal after breaking above a falling trendline. However, the current downswing is putting that bullish outlook on hold, especially if price falls 0.88, which would clear last week’s low.
(usdchf 4H chart, 4/8)
The USD/CAD fell below 1.10 to start the week, then below the 1.0955 support pivot after a brief pause there, and is now testing the 1.0910 pivot. The current downswing is from the new 2014 high at 1.2778 made in March, and suggests exhaustion.
(usdcad 4H chart, 4/8)
The Aussie continued to rally against the greenback. AUD/USD extended above 0.93, and has been bullish since January’s and 2014′s low of 0.8656. The next resistance area will be at 0.9420 up the 0.9450 mark. If the AUD/USD holds above 0.9250 the bullish outlook remains.
At this point, a break below 0.92 will be needed to set up for a consolidation/correction outlook.
(audusd 4h chart, 4/8)
Fan Yang, CMT is a forex trader, analyst, educator and Chief Technical Strategist for FXTimes.