Forex Trading Weekly charts Aug 3.
USDJPY WEEKLY CHART – WEEKLY OUTLOOK
It took 18 weeks to go from 145.89 => 161.93 and 4 weeks to almost fully retrace the move.
Potential targets are at 145.89 (and 145.00) as long as it trades below 148.50. Beyond that is a void to the 140s.
Only back above 148.50 would slow the risk.
EURUSD DAILY CHART – WEEKLY OUTLOOK
EURUSD break oif 1.0850-70 was a game changer as it endrf the current downtrend and shifts the risk.
Targets are at 1.0950 and 1.0981 ahead of the pivotal 1.10 level AS LONG AS IT TRADES ABOVE 1.0850-70. BACK BELOW THIS AREA WOULD NEUTRALIZE THE RISK.
In any case, look for support as long as it holds above 1.0850-70.
GBPUSD DAILY CHART – WEEKLY OULOOK
GBPUSD was given a reprieve by the weaker USD but was a follower rather than leading the general trend (note firmer EURGBP and weaker GBPJPY).
To confirm a break in the downtrend, 1.2887 would need to be taken out.
In any case, 1.28 will set the tone but there are no stops left to go after on the downside unless the 1.2707 low is breached.
USDX (US DOLLAR INDEX) – WEEKLY OUTLOOK
I generally use the USDX as a EURUSD proxy as it represents 57.6% of the index but the sharp fall in USDJPY (13.6% of the index) has contributed to its fall below 103.94.
Using it just as a EURUSD proxy, EURUSD downside is more exposed as long as it trades below 103.94.
This is why the focus will be on US stocks in the week ahead after last week when
Rotation from US stocks into US Treasuries on recession fears
Stocks fall => bond yields fall => US weakens
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