EUR/USD, GBP/USD, USD/CAD, AUD/USD Forecasts: Weakening Dollar Opens Trading Windows

Key Insights

• EUR/USD: Showcasing signs of a potential bullish breakout, especially if the currency remains steady above $1.0600.
• GBP/USD: Current indicators hint at strong bullish momentum above 1.2270, supported by both EMA and chart patterns.
• USD/CAD: A bearish mood is palpable as the currency dances below 1.3531, with chart patterns suggesting more twists ahead.

U.S. Dollar

The U.S. Dollar Index displayed a bearish trend on October 11, trading at 105.67, marking a decline of roughly 0.09% for the day. On a 4-hour chart timeframe, the pivotal price point is set at $105.97. The currency showcases resistances at $106.25, $106.50, and $106.81, while supports are identified at $105.32, $104.79, and $104.44.

Delving into technical indicators, the Relative Strength Index (RSI) stands at 32, indicating a bearish sentiment as it’s below 50 and nearing the oversold threshold. The price currently trades below the 50-day Exponential Moving Average (EMA) of $106.20, reinforcing the short-term bearish trend.

The 4-hour chart revealed a bearish engulfing pattern, while the 50 EMA suggests potential selling if the currency remains under $106.20. Additionally, an upward channel breakout is in favour of selling. In summary, the U.S. Dollar’s trend appears bearish if it continues to trade below $106.20.

EUR/USD

On October 11, the EUR/USD showed a noteworthy technical outlook on a 4-hour chart timeframe. The currency pair’s pivot point is set at $1.0649. Looking at resistance levels, the immediate one stands at $1.0811, followed by $1.1042 and $1.1203.

On the other hand, the primary support is at $1.0415, with subsequent supports at $1.0254 and $1.0020.

From a technical indicator perspective, the Relative Strength Index (RSI) is recorded at 46.43, hinting at a bearish sentiment as it’s below 50. The Moving Average Convergence Divergence (MACD) presents a value of 0.00154 with its signal line at -0.00673, suggesting potential upward momentum.

Moreover, the price is currently below the 50-day Exponential Moving Average (EMA) of 1.07111, indicating a short-term bearish trend. An observed symmetrical triangle breakout at 1.0600 gives the asset a bullish implication. Conclusively, the trend is bullish if it remains above $1.0600 and vice versa.

GBP/USD

On October 11, the GBP/USD pair is witnessing a positive move, trading at 1.2320, marking an increase of 0.28%. Analyzing the 4-hour chart, the pivotal point for the pair is set at $1.2341. Immediate resistances are placed at $1.2575, $1.2949, and $1.3179, while the supports lie at $1.1975, $1.1741, and $1.1371.

The Relative Strength Index (RSI) stands at 46, suggesting a bearish sentiment as it’s below the 50 mark. However, the MACD value of 0.0027, which is above its signal value of -0.00754, indicates potential bullish momentum. Additionally, the price is just below the 50-day Exponential Moving Average (EMA) of 1.24229.

The H4 chart reveals an upward channel, hinting at a buying trend. The 50 EMA and a bullish break above the double-top pattern at the 1.2275 resistance further corroborate this trend. In conclusion, the GBP/USD showcases a bullish trend above $1.2275.

USD/CAD

For October 11, the USD/CAD is trading with a slight uptick, registering a price of 1.3584, which denotes an increment of 0.01% within a 24-hour frame. As we analyze the 4-hour chart, the pivot point is identified at 1.3555. The currency pair finds its immediate, subsequent resistances at 1.3724, 1.3867, and 1.4039, while supports are marked at 1.3411, 1.3237, and 1.3094, respectively.

Delving into the technical indicators, the RSI is positioned at 53, which leans towards a bullish sentiment. Meanwhile, the MACD stands at 0.00008, marginally above its signal line at 0.00317. Notably, the price remains above the 50 EMA, at 1.3531, suggesting a short-term bullish trend. However, chart patterns illustrate the completion of the 50% Fibonacci retracement followed by a decline.

Traders are now focusing on the 61.8% Fibo levels. The presence of a series of doji and spinning top candles beneath the 50 EMA emphasizes reduced volatility. In conclusion, the USD/CAD exhibits a bearish trend when trading below 1.3531.

AUD/USD

On October 11, the AUD/USD is trading at 0.6418, marking a decrease of 0.20% within the last 24 hours. Analyzing the 4-hour chart, the pivot point stands at 0.6371. Resistances are observed at 0.6457, 0.6532, and 0.6617, while immediate support lies at 0.6338, followed by 0.6299 and 0.6212.

Delving into technical indicators, the RSI is positioned at 56, indicating a bullish sentiment. The current value of the 50 EMA is 0.6389, suggesting a short-term bullish trend as the price is above this mark. From the chart patterns, a double top formation is evident, highlighting resistance around 0.6440.

In conclusion, the AUD/USD’s direction hinges on the 0.6440 level: potential for selling exists below this point, but a break above could propel the pair towards 0.6500 in the short term.

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