Technical Strategy

DXY is completing a multi-month head and shoulders distribution pattern. A sustained break below the 100 neckline targets 97.50 initially, with measured move objectives at 95.00 and 93.00. The 200-week moving average at 97.50 is first major support. Momentum divergence on weekly charts confirms bearish bias.

EUR/USD has broken above the 2024 range highs at 1.1276 and is building a base for the next leg higher. Weekly momentum has turned bullish with MACD crossover in positive territory. Ascending channel from September 2024 low targets 1.21 by Q2 and 1.25 by Q4. Key support at 1.1392-1.14 zone must hold.

GBP/USD is consolidating in an ascending triangle pattern with rising lows and flat resistance near 1.345. A break above 1.345 would confirm bullish continuation toward 1.36-1.38. However, upside is more limited than EUR/USD. Support at the 200-day MA near 1.2945 is critical.

USD/JPY has formed a potential double top near the 157-158 zone with bearish momentum divergence on daily and weekly timeframes. A break below the 155 neckline support targets 152 initially, then 150 and 148. The 200-day MA near 152 is a key level. Weekly RSI turning down from overbought confirms distribution.

AUD/USD presents one of the best technical setups for 2026. A bullish triangle consolidation above 0.64 support is building energy for a breakout above the 0.66 trend line resistance. Measured move targets 0.70-0.72 zone. Weekly momentum is turning bullish. Volume patterns support accumulation thesis.