Dollar fails to seal the deal against the commodity currencies this week

<p>I already outlined the technical predicament for AUD/USD earlier <a href="https://www.forexlive.com/news/audusd-looks-to-capitalise-on-yesterdays-technical-bounce-20240119/" target="_blank" rel="follow">here</a>. And the charts for USD/CAD and NZD/USD are also pointing to a lack of technical follow through by dollar bulls on the week.</p><p>In the case of USD/CAD, the pair did manage a push above its 200-day moving average (blue line) but is ultimately seeing that falter today. That is similar to AUD/USD as highlighted in the linked post above. For USD/CAD, the ceiling appears to be at the 50.0 Fib retracement level at 1.3538 on the week.</p><p>In any case, the fall back below the 200-day moving average of 1.3480 is the more significant development in trading today. And just like AUD/USD, the near-term bias is also shifting as price falls below the 100-hour moving average of 1.3483 currently.</p><p>Looking to NZD/USD:</p><p>There was a push below 0.6100 during the week but it fell short in breaching the 200-day moving average (blue line). That coincides with the December low, which was also defended by the key level.</p><p>As such, buyers are very much still in the game. And even though the near-term chart is favouring sellers for now, the turn in broader market sentiment and resilience among other commodity currencies could help to translate to better fortunes for the kiwi.</p><p>Either way, the fact is that buyers have a clear line in the sand to make their stand now. And that is the 200-day moving average at 0.6089.</p><p>To sum up, the dollar did make a strong case for a run higher against the commodity currencies this week. But it looks like it is falling short in sealing the deal as we wrap things up before the weekend. Or <a href="https://www.forexlive.com/news/will-higher-yields-come-back-to-bite-broader-markets-before-the-weekend-20240119/" target="_blank" rel="follow">is there time for yet another twist</a> in the story?</p>

This article was written by Justin Low at www.forexlive.com.