The Tiger Forex Report – Week of 7/18 – 7/22/2022

DXY Bulls are ready for a pause for the cause. Friday’s close touched off a short-term sell signal that may foreshadow a short-term correction. The overall outlook remains bullish for the Dollar Index. Be cautious fading the greenback.

DXY Bulls are flirting with a correction…

Crude Oil Bear trap may be brewing…

30 T-Bond Bullish correction may be running out of gas…

EURUSD Weekly Outlook :

EURUSD Bulls may be getting a shot at a correction this week. DXY capped out Friday with a Sell signal, and the EURUSD triggered a Buy Signal. Key off of Friday’s Close at the 1.0086 level. Trading above here sets the market up for a short-term correction that targets the 1.0284 – 1.0361 upside corrective target zone. Fundamentals are overall Bearish for this FX pair. This is a countertrend setup.

0.9948 is the risk level holding the market up. A drop below negates the buy signal, and targets 0.9842 in the short-term. 0.9500 is the longer-term selloff objective.

GBPUSD Weekly Outlook :

Bearish momentum kept rearing its head last week in the GBPUSD. A short term Sell signal in the DXY may give this currency cross a reprieve from the current slide. Key off of the 1.1757 critical support level. Trading above here keeps the Pound setup for a rally that targets the 1.1970 bullish breakout level. The 1.2079 – 1.2153 upside target zone is likely to cap any extended show of strength in this market.

A failure at 1.1757 and the trend remains intact. 1.1590 is the downside target objective if the Bears keep control of the GBPUSD. Trying to fade another test of support is ill advised. Do not try and pick a bottom.

USDCHF Weekly Outlook :

 

USDCHF Bulls ran into a brick wall last week. Friday’s close touched off a short-term sell signal. Key off of 0.9759. Trading under here targets the 0.9647 level. The DXY is ripe for a correction, and that would aid in a reversal for the USDCHF. Watch the U.S. interest rates. If there is a big sell off in the credit markets then it is unlikely that this FX pair will maintain any test of support.

If the 30yr T-Bond heads South this week, then the Bearish sentiment will likely wane fast. If this occurs it may spart fresh buying in the USD. Do not fight this kind of situation. The Bulls could be pressing 0.9890 in a heartbeat. This area is key resistance holding the USDCHF down. Trading above here is a positive indication that the Bull trend is back.

USDJPY Weekly Outlook…

What a raging Bull. This market remains in a buy break mode. The DXY looks like a turn is on the table, but momentum in the USDJPY does not agree. It will be tug-o-war between the bulls and the bears this week. Trading under 139.43 keeps the market in a holding pattern down to 134.78. Only a failure from here confirms weakness. 131.85 is the extended downside target.

Use caution selling at these levels. This FX pair is on a mission to cut through resistance. 140.00 is the first stop on rally that could still reach 146.50 before there is any significant pull back.

AUDUSD Weekly Outlook…

AUDUSD Bulls are trying to spark a rally. It will be a tough ride, but if the DXY keeps selling off then it may help lift this market. Trading above 0.6682 keeps this market in limbo up to the 0.6880 bullish breakout level. The 0.6978 – 0.7051 upside target zone is very reachable if the DXY continues to sell off.

Be careful if the AUDUSD slips under 0.6682. The market is still in a Bear trend, and it is wise to be mindful of this. Under 0.6682 this Forex pair targets the 0.6527 level.

NZDUSD Weekly Outlook:

NZDUSD traders have a tough trade ahead this week. Fundamentals are very Bearish, and the only lift may come from a relative correction in the USD. Wait for a signal or a break out. Above 0.6207 it will be a corrective forecast for a rally up into the 0.6316 – 0.6373 upside target zone.

Look out below the 0.6059 level. The trend is an aggressive Bear, and there is no confirmation of a turn in the market yet. Under 0.6059 the NZDUSD will be on a mission lower down towards 0.5975.

USDCAD Weekly Outlook :

USDCAD Bulls may be starting to lose momentum. USD weakness is likely this week, and a pullback towards the 1.2874 – 1.2784 downside target zone is not out of the question. It may fall in the middle of this area. 1.2822 is the base holding the current trend in place.

Only a rally above 1.3224 confirms strength for a surge to higher levels. 1.3440 is the longer-term upside target.

 

 

 

 

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